Document:

exv10w1

 

Exhibit 10.1

Execution Version

SENIOR SECURED SUPERPRIORITY DEBTOR IN POSSESSION

CREDIT AGREEMENT

dated as of

May 5, 2008,

among

TROPICANA ENTERTAINMENT, LLC,

TROPICANA ENTERTAINMENT INTERMEDIATE HOLDINGS, LLC,

CP LAUGHLIN REALTY, LLC,

JMBS CASINO LLC,

each, a Debtor and Debtor in Possession,

THE LENDERS PARTY HERETO

and

SILVER POINT FINANCE, LLC,

as Administrative Agent and Collateral Agent

SILVER POINT FINANCE, LLC,

as Sole Bookrunner and Sole Lead Arranger

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I Definitions
	 	 	2	 
	 
	 	 	 	 
	1.01. Defined Terms
	 	 	2	 
	1.02. Terms Generally
	 	 	28	 
	1.03. Classification of Loans and Borrowings
	 	 	29	 
	 
	 	 	 	 
	ARTICLE II The Credits
	 	 	29	 
	 
	 	 	 	 
	2.01. Commitments
	 	 	29	 
	2.02. Loans
	 	 	29	 
	2.03. Borrowing Procedure
	 	 	30	 
	2.04. Use of Proceeds
	 	 	31	 
	2.05. Evidence of Debt; Repayment of Loans
	 	 	31	 
	2.06. Fees
	 	 	32	 
	2.07. Interest on Loans
	 	 	32	 
	2.08. Default Interest
	 	 	33	 
	2.09. Alternate Rate of Interest
	 	 	33	 
	2.10. Termination and Reduction of Commitments
	 	 	33	 
	2.11. Conversion and Continuation of Borrowings
	 	 	33	 
	2.12. Repayment of Term Borrowings
	 	 	35	 
	2.13. Optional Prepayment
	 	 	35	 
	2.14. Mandatory Prepayments
	 	 	35	 
	2.15. Reserve Requirements; Change in Circumstances
	 	 	37	 
	2.16. Change in Legality
	 	 	38	 
	2.17. Indemnity
	 	 	39	 
	2.18. Pro Rata Treatment
	 	 	39	 
	2.19. Sharing of Setoffs
	 	 	39	 
	2.20. Payments
	 	 	40	 
	2.21. Taxes
	 	 	40	 
	2.22. Assignment of Commitments Under Certain Circumstances; Duty to
Mitigate
	 	 	41	 
	2.23. L/C Funding Support; Letters of Credit
	 	 	43	 
	2.24. Superpriority Nature of Obligations and Loans
	 	 	45	 
	2.25. No Discharge; Survival of Claims
	 	 	45	 
	2.26. Waiver of any Priming Rights
	 	 	46	 
	 
	 	 	 	 
	ARTICLE III Representations and Warranties
	 	 	46	 
	 
	 	 	 	 
	3.01. Organization; Powers
	 	 	46	 
	3.02. Authorization; No Conflict
	 	 	46	 

i

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	3.03. Enforceability
	 	 	46	 
	3.04. Governmental Approvals
	 	 	47	 
	3.05. Financial Statements
	 	 	47	 
	3.06. Cash Flow Forecast
	 	 	48	 
	3.07. No Material Adverse Change
	 	 	48	 
	3.08. Title to Properties; Possession Under Leases
	 	 	48	 
	3.09. Subsidiaries
	 	 	49	 
	3.10. Litigation; Compliance with Laws
	 	 	49	 
	3.11. Agreements
	 	 	49	 
	3.12. Federal Reserve Regulations
	 	 	49	 
	3.13. Investment Company Act
	 	 	50	 
	3.14. Tax Returns
	 	 	50	 
	3.15. No Material Misstatements
	 	 	50	 
	3.16. Employee Benefit Plans
	 	 	50	 
	3.17. Environmental Matters
	 	 	50	 
	3.18. Insurance
	 	 	51	 
	3.19. Security Documents
	 	 	52	 
	3.20. Location of Real Property and Leased Premises
	 	 	52	 
	3.21. Labor Matters
	 	 	52	 
	3.22. Sanctioned Persons. Patriot Act
	 	 	52	 
	3.23. Casino Leases
	 	 	53	 
	3.24. Reorganization Matters
	 	 	53	 
	 
	 	 	 	 
	ARTICLE IV Conditions of Lending
	 	 	54	 
	 
	 	 	 	 
	4.01. All Credit Events
	 	 	54	 
	4.02. First Credit Event
	 	 	55	 
	 
	 	 	 	 
	ARTICLE V Affirmative Covenants
	 	 	57	 
	 
	 	 	 	 
	5.01. Existence; Compliance with Laws; Businesses and Properties
	 	 	57	 
	5.02. Insurance
	 	 	58	 
	5.03. Payment of Post-petition obligations and Taxes
	 	 	59	 
	5.04.
Financial Statements, Reports, etc.
	 	 	59	 
	5.05. Litigation and Other Notices
	 	 	62	 
	5.06. Information Regarding Collateral
	 	 	62	 
	5.07. Reorganization Matters
	 	 	63	 
	5.08. Maintaining Records; Access to Properties and
Inspections; Maintenance of Ratings
	 	 	63	 
	5.09. Use of Proceeds
	 	 	63	 

ii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	5.10. Employee Benefits
	 	 	63	 
	5.11. Compliance with Environmental Laws
	 	 	63	 
	5.12. Environmental Reporting
	 	 	64	 
	5.13. Preparation of Environmental Reports
	 	 	64	 
	5.14. Further Assurances
	 	 	64	 
	5.15. Tropicana Las Vegas Dividends
	 	 	67	 
	5.16. Approvals to Security Documents
	 	 	67	 
	5.17. Horizon and MontBleu Estoppels
	 	 	67	 
	5.18. Affiliated Guarantor Distributions
	 	 	68	 
	5.19. Financial Advisor
	 	 	68	 
	5.20. Atlantic City Facility Sale, Evansville Sale, Vicksburg Sale
	 	 	68	 
	5.21. Minimum Drawing Requirement
	 	 	68	 
	 
	 	 	 	 
	ARTICLE VI Negative Covenants
	 	 	69	 
	 
	 	 	 	 
	6.01. Indebtedness
	 	 	69	 
	6.02. Liens
	 	 	69	 
	6.03. Investments, Loans and Advances
	 	 	71	 
	6.04. Mergers, Consolidations, Sales of Assets and Acquisitions
	 	 	72	 
	6.05. Restricted Payments; Restrictive Agreements
	 	 	73	 
	6.06. Transactions with Affiliates
	 	 	74	 
	6.07. Business of Holdings, Borrower, the Affiliated Guarantors and
Subsidiaries
	 	 	74	 
	6.08. Other Indebtedness and Agreements
	 	 	74	 
	6.09. Capital Expenditures
	 	 	75	 
	6.10. Consolidated EBITDA
	 	 	75	 
	6.11. Minimum Liquidity
	 	 	76	 
	6.12. Fiscal Year
	 	 	76	 
	6.13. Cash Flow Forecast
	 	 	76	 
	6.14. Chapter 11 Claims
	 	 	76	 
	6.15. The Orders
	 	 	77	 
	6.16. Tax Status
	 	 	77	 
	6.17. Tropicana Las Vegas
	 	 	77	 
	 
	 	 	 	 
	ARTICLE VII Events of Default
	 	 	77	 
	 
	 	 	 	 
	ARTICLE VIII The Administrative Agent and the Collateral Agent
	 	 	81	 
	 
	 	 	 	 
	8.01. Appointment of Agents
	 	 	81	 
	8.02. Powers and Duties
	 	 	82	 

iii

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page
	8.03. General Immunity
	 	 	82	 
	8.04. Agents Entitled to Act as Lender
	 	 	83	 
	8.05. Lenders’ Representations, Warranties and Acknowledgment
	 	 	83	 
	8.06. Right to Indemnity
	 	 	84	 
	8.07. Successor Administrative Agent
	 	 	84	 
	8.08. Security Documents
	 	 	86	 
	8.09. Posting of Approved Electronic Communications
	 	 	86	 
	8.10. Agents and Arrangers
	 	 	87	 
	 
	 	 	 	 
	ARTICLE IX Miscellaneous
	 	 	88	 
	 
	 	 	 	 
	9.01. Notices
	 	 	88	 
	9.02. Survival of Agreement
	 	 	88	 
	9.03. Binding Effect
	 	 	89	 
	9.04. Successors and Assigns
	 	 	89	 
	9.05. Expenses; Indemnity
	 	 	92	 
	9.06. Right of Setoff
	 	 	94	 
	9.07. Applicable Law
	 	 	94	 
	9.08. Waivers; Amendment
	 	 	95	 
	9.09. Application of Gaming Laws
	 	 	96	 
	9.10. Interest Rate Limitation
	 	 	97	 
	9.11. Entire Agreement
	 	 	97	 
	9.12. WAIVER OF JURY TRIAL
	 	 	97	 
	9.13. Marshalling; Payments Set Aside
	 	 	98	 
	9.14. Severability
	 	 	98	 
	9.15. Independence of Covenants
	 	 	98	 
	9.16. Counterparts
	 	 	98	 
	9.17. Headings
	 	 	98	 
	9.18. Jurisdiction; Consent to Service of Process
	 	 	99	 
	9.19. Confidentiality
	 	 	99	 
	9.20. USA PATRIOT Act Notice
	 	 	100	 
	9.21. Disclosure
	 	 	100	 

iv

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	SCHEDULES
	 	 	 	 
	Schedule 1.01(a)  —  Subsidiary Guarantors
	 	 	 	 
	Schedule 1.01(b)  —  Mortgaged Property
	 	 	 	 
	Schedule 2.01
 —  Lenders and Commitments
	 	 	 	 
	Schedule 3.02
 —  Conflicts
	 	 	 	 
	Schedule 3.04
 —  Government Approvals
	 	 	 	 
	Schedule 3.08 — Title to Properties
	 	 	 	 
	Schedule 3.09 — Subsidiaries
	 	 	 	 
	Schedule 3.10 — Litigation
	 	 	 	 
	Schedule 3.16 — Environmental Matters
	 	 	 	 
	Schedule 3.18 — Insurance
	 	 	 	 
	Schedule 3.20(a)  —  Owned Real Property
	 	 	 	 
	Schedule 3.20(b)  —  Leased Real Property
	 	 	 	 
	Schedule 3.20(c)  —  Owned and Leased Ships/Vessels
	 	 	 	 
	Schedule 3.23 — Casino Leases
	 	 	 	 
	Schedule 4.02(a)  —  Local Counsel
	 	 	 	 
	Schedule 4.02(f)  —  Certain Security Documents
	 	 	 	 
	Schedule 6.01 — Prepetition Indebtedness
	 	 	 	 
	Schedule 6.02 — Prepetition Liens
	 	 	 	 
	Schedule 6.05 — Restrictive Agreements
	 	 	 	 
	Schedule 6.08(a)  —  Material Contracts
	 	 	 	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A  —  Form of Administrative Questionnaire
	 	 	 	 
	Exhibit B  —  Form of Assignment and Acceptance
	 	 	 	 
	Exhibit C  —  Form of Borrowing Request
	 	 	 	 
	Exhibit D  —  Form of Guarantee and Collateral Agreement
	 	 	 	 
	Exhibit E  —  Form of Issuance Notice
	 	 	 	 
	Exhibit F  —  Form of Cash Flow Forecast
	 	 	 	 
	Exhibit G  —  Form of Interim Order
	 	 	 	 

v

 

SENIOR SECURED SUPERPRIORITY DEBTOR IN POSSESSION

CREDIT AGREEMENT

SENIOR SECURED SUPERPRIORITY DEBTOR IN POSSESSION CREDIT AGREEMENT (as it may be amended,
supplemented or otherwise modified from time to time, this “Agreement”) dated as of May 5, 2008,
among TROPICANA ENTERTAINMENT, LLC, formerly known as Wimar OpCo, LLC, a Delaware limited
liability company, as a debtor and a debtor in possession under Chapter 11 of the Bankruptcy Code
(as defined below), (the “Borrower”), TROPICANA ENTERTAINMENT INTERMEDIATE HOLDINGS, LLC, formerly
known as Wimar OpCo Intermediate Holdings, LLC, a Delaware limited liability company, as a debtor
and a debtor in possession under Chapter 11 of the Bankruptcy Code, (“Holdings”), CP LAUGHLIN
REALTY, LLC, a Delaware limited liability company, as a debtor and a debtor in possession under
Chapter 11 of the Bankruptcy Code, (“CP Laughlin”), JMBS CASINO LLC, a Mississippi limited
liability company, as a debtor and a debtor in possession under Chapter 11 of the Bankruptcy Code,
(“Jubilee”), the Lenders (as defined in Article I), and SILVER POINT FINANCE, LLC, as
administrative agent (in such capacity, the “Administrative Agent”) and as collateral agent (in
such capacity, the “Collateral Agent”) for the Lenders.

PRELIMINARY STATEMENT

          WHEREAS, capitalized terms used in these Recitals shall have the respective
meanings set forth for such terms in Section 1.01 hereof;

          WHEREAS, on May 5, 2008 (the “Petition Date”), Borrower, the Guarantors and certain
Affiliates each filed a voluntary petition for relief (collectively, the “Chapter 11 Cases”) under
Chapter 11 of the Bankruptcy Code with the United States Bankruptcy Court for the District of
Delaware (the “Bankruptcy Court”);

          WHEREAS, Borrower and Guarantors are continuing to operate their respective businesses and
manage their respective properties as debtors in possession under Sections 1107 and 1108 of the
Bankruptcy Code;

          WHEREAS, the Borrower has requested that the Lenders provide a secured superpriority term
loan facility of an aggregate maximum principal amount of $67,000,000, to fund the continued
operation of the Borrower’s and the Guarantors’ businesses as debtors and debtors in possession
under the Bankruptcy Code;

          WHEREAS, the Lenders are willing to make available to the Borrower such post-petition loans
and other extensions of credit upon the terms and subject to the conditions set forth herein and
in the Orders; and

          WHEREAS, each of the Guarantors has agreed to guaranty the obligations of the Borrower
hereunder and each of the Borrower and each of the Guarantors has agreed to secure its obligations
to the Lenders hereunder with, inter alia, security interests in, and liens on, substantially all
of its property and assets, whether real or personal, tangible or intangible, now existing or
hereafter acquired or arising, all as more fully provided herein, in the Orders and in the Security
Documents.

          

1

 

          NOW, THEREFORE, in consideration of the premises and the agreements, provisions and
covenants herein contained, the parties hereto agree as follows:

ARTICLE I

Definitions

          1.01. Defined Terms. As used in this Agreement, the following terms shall have the meanings
specified below:

          “ABR”, when used in reference to any Loan or Borrowing, refers to whether such Loan, or the
Loans comprising such Borrowing, are bearing interest at a rate determined by reference to the
Alternate Base Rate.

          “Adamar” shall mean Adamar of New Jersey, Inc. a New Jersey corporation.

          “Additional Guarantor” shall have the meaning set forth in Section 5.14(b).

          “Adjusted LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest
Period, an interest rate per annum which is the greater of (a) 3.5% per annum and (b) the rate per
annum equal to the product of (i) the LIBO Rate in effect for such Interest Period and (ii)
Statutory Reserves.

          “Administrative Agent Fees” shall have the meaning assigned to such term in Section
2.06(b).

          “Administrative Questionnaire” shall mean an Administrative Questionnaire in the form of
Exhibit A, or such other form as may be supplied from time to time by the Administrative Agent.

     
     “Affiliate” shall mean, when used with respect
to a specified Person, another Person that
directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the Person specified; provided, however, that, for purposes of Section
6.06, the term “Affiliate” shall also include (i) any Person that directly
 or indirectly owns 10%
or more of any class of Equity Interests of the Person specified or that is an officer or
director of the Person specified and (ii) for purposes of Section 6.06, any member of the Yung
Group or any Person that is Controlled by or is under common Control with a member of the Yung
Group.

          “Affiliated Guarantors” shall mean CP Laughlin, Vicksburg (to the extent it ceases to be
an Excluded Subsidiary) and Jubilee and each of their direct and indirect subsidiaries.

          “Agents” shall mean the Administrative Agent and the Collateral Agent.

          “Alternate Base Rate” shall mean, for any day, a rate per annum equal to the greater of (a)
the Prime Rate in effect on such day, (b) the Federal Funds Effective Rate in effect on such day
plus 1/2 of 1% and (c) 5.5% per annum. If the Administrative Agent shall have

          
2

 

determined (which determination shall be conclusive absent manifest error) that it is unable to
ascertain the Federal Funds Effective Rate for any reason, including the inability or failure of
the Administrative Agent to obtain sufficient quotations in accordance with the terms of the
definition thereof, the Alternate Base Rate shall be determined without regard to clause (b) of
the preceding sentence until the circumstances giving rise to such inability no longer exist. Any
change in the Alternate Base Rate due to a change in the Prime Rate or the Federal Funds Effective
Rate shall be effective on the effective date of such change in the Prime Rate or the Federal
Funds Effective Rate, as the case may be.

          “Applicable Percentage” shall mean, for any day (a) with respect to any
Eurodollar Loan, 6.75% per annum and, (b) with respect to any ABR Loan, 5.75% per annum.

          “Approved Cash Flow Forecast” shall have the meaning set forth in Section
5.04(d)(i).

          “Argosy III” shall mean the Argosy III Riverboat, Official Number 1023758, and all related
fittings, furnishings, fixtures, equipment and appurtenances.

          “Asset Sale” shall mean the sale, transfer or other disposition (by way of merger, casualty,
condemnation or otherwise) by Holdings, the Borrower, any Subsidiary or any Affiliated Guarantor
to any Person other than the Borrower or any Subsidiary Guarantor of (a) any Equity Interests of
the Borrower or any of the Subsidiaries (other than directors’ qualifying shares) or (b) any other
assets of Holdings, the Borrower or any of the Subsidiaries (other than (i) inventory and
Permitted Investments, in each case disposed of in the ordinary course of business, (ii) surplus,
damaged, obsolete, idle or worn out assets, scrap, in each case disposed of in the ordinary course
of business and to the extent not exceeding in the aggregate $1,000,000 per fiscal year, (iii) the
cross-licensing or nonexclusive licensing of Intellectual Property in the ordinary course of
business, (iv) the sale or issuance of any Subsidiary’s equity to any Loan Party, (v) the sale or
discount of overdue accounts receivables arising in the ordinary course of business (consistent
with customary industry practice and not as part of any bulk sale or financing of receivables) and
(vi) any sale, transfer or other disposition or series of related sales, transfers or other
dispositions having a value not in excess of $1,000,000 in the aggregate).

          “Assignment and Acceptance” shall mean an assignment and acceptance entered into by a Lender
and an assignee, and accepted by the Administrative Agent, in the form of Exhibit B or such other
form as shall be approved by the Administrative Agent.

          “Atlantic City” shall mean Ramada New Jersey Holdings Corporation, a Delaware
corporation.

          “Atlantic City Conservator” shall mean the Honorable Gary S. Stein acting as trustee under
the Atlantic City Trust Agreement and appointed as conservator by the NJ Commission or any
successor appointed with respect of Adamar and its assets.

          “Atlantic City Facility” shall mean the facility that is subject to the Atlantic City
Conservatorship Arrangements, including the casino, the resort, the associated facilities,
equipment and amenities located in Atlantic City, New Jersey, and including the related assets
owned by Affiliates of the Borrower and the Guarantors that are also debtors subject to the
Chapter 11 Cases.

          
3

 

          “Atlantic City Facility Sale” shall mean an Asset Sale with respect to the Atlantic City
Facility, which is required under the Atlantic City Conservatorship Arrangements (including any
sale or licensing of Intellectual Property in connection therewith).

          “Atlantic City Trust Agreement” shall mean the trust agreement dated October 16, 2006 between
Tropicana Casinos, Holdings, certain of their subsidiaries and the Atlantic City Conservator as
trustee.

          “Atlantic City Conservatorship Arrangements” shall mean (a) the Atlantic City Trust Agreement,
(b) the order n° 07-12-12-27-A of the NJ Commission dated December 12, 2007 which refused to renew
the gaming license with respect to Adamar and its assets and which ordered the Atlantic City Trust
Agreement to become “operative” (within the meaning of the Atlantic City Trust Agreement), (c) the
order n°07-12-19 of the NJ Commission dated December 19, 2007 which ordered the appointment of the
Atlantic City Conservator as conservator with respect to Adamar and its assets under the
supervision of the NJ Commission and (d) all other documents, orders, interim arrangements or
agreements whereby Holdings, the Affiliated Guarantors, their respective subsidiaries and
Affiliates (A) are deprived of their right to control and manage Adamar and its assets or (B) are
compelled to sell their interest in Adamar and its assets.

          “Aztar” shall mean Aztar Corporation, a Delaware corporation.

          “B-527” shall mean the support barge to Bayou Caddy’s Jubilee Casino with the name “B-527”,
Official Number 514272, and all related fittings, furnishings, fixtures, equipment and
appurtenances.

          “Bankruptcy Code” shall mean Title 11 of the United States Code entitled “Bankruptcy,” as
now and hereafter in effect, or any successor statute; provided, however, that, with respect to
the Chapter 11 Cases, “Bankruptcy Code” means Title 11 of the United States Code, as in effect on
the Petition Date and as thereafter amended, if such amendments are made applicable to the
Chapter 11 Cases.

          “Bankruptcy Court” shall have the meaning set forth in the recitals hereto or shall mean any
other court having competent jurisdiction over the Chapter 11 Cases.

          “Bayou Caddy’s Jubilee Casino” shall mean the vessel with the name “Bayou Caddy’s Jubilee
Casino”, Official Number 519419, and all related fittings, furnishings, fixtures, equipment and
appurtenances.

          “Board” shall mean the Board of Governors of the Federal Reserve System of the United States
of America (or any successors).

          “Borrowing” shall mean Loans of the same Type made, converted or continued on the same date
and, in the case of Eurodollar Loans, as to which a single Interest Period is in effect.

          “Borrowing Request” shall mean a request by the Borrower in accordance with the terms of
Section 2.03 and substantially in the form of Exhibit C, or such other form as shall be approved
by the Administrative Agent.

          
4

 

          “Business Day” shall mean any day other than a Saturday, Sunday or other day on which banks
in New York City are authorized or required by law to close; provided, however, that when used in
connection with a Eurodollar Loan, the term “Business Day” shall also exclude any day on which
banks are not open for dealings in dollar deposits in the London interbank market.

          “Capital Expenditures” shall mean, for any period, the aggregate of all expenditures for (a)
the additions to property, plant and equipment and other capital expenditures of the Borrower, its
consolidated Subsidiaries and the Affiliated Guarantors and their subsidiaries that are (or should
be) set forth in a consolidated statement of cash flows of the Borrower (including the Affiliated
Guarantors and their subsidiaries) for such period prepared in accordance with GAAP and (b)
Capital Lease Obligations or Synthetic Lease Obligations incurred by the Borrower and its
consolidated Subsidiaries and the Affiliated Guarantors and their subsidiaries during such period,
but excluding in each case (i) any cash proceeds of Asset Sales to the extent reinvested in
productive assets of the type specified in clause (a) above pursuant to the proviso in the
definition of “Net Cash Proceeds” and (ii) any such expenditure made to restore, replace or
rebuild property to the condition of such property immediately prior to any damage, loss,
destruction or condemnation of such property, to the extent such expenditure is made with
insurance proceeds, condemnation awards or damage recovery proceeds relating to any such damage,
loss, destruction or condemnation.

          “Capital Lease Obligations” of any Person shall mean the obligations of such Person to pay
rent or other amounts under any lease of (or other arrangement conveying the right to use) real or
personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP, and the amount of
such obligations shall be the capitalized amount thereof determined in accordance with GAAP.

          “Carve-Out” shall have the meaning ascribed to such term in the Interim Order or, after the
effective date thereof, the Final Order.

          “Cash Collateralize” shall mean the delivery of cash to the Collateral Agent, as security for
the payment of Obligations, in an amount equal to (a) with respect to L/C Usage, 105% of the
aggregate L/C Usage, and (b) with respect to any inchoate or contingent Obligations, Administrative
Agent’s good faith estimate of the amount due or to become due, including all fees and other
amounts relating to such Obligations. “Cash Collateralization” and “Cash
Collateralizing” have a correlative meaning.

          “Cash Flow Forecast” shall mean a forecast substantially in the form of Exhibit F and
otherwise in form reasonably satisfactory to the Administrative Agent in its reasonable discretion,
which forecast shall, among other things, (a) detail projected cash receipts and cash disbursements
(including but not limited to Disbursements) on a weekly basis for the then current week and the
next 12 weeks and (b) the Borrower’s anticipated income statement, balance sheet and cash flow
statement, each for the period from the Closing Date through the Maturity Date, on a consolidating
(subject to the provisions of Section 5.04(d)) and consolidated basis for the
Borrower and its Subsidiaries (other than the LandCo Subsidiaries), together with a written
set of assumptions supporting such statements and setting forth the anticipated uses of the
Commitments on a monthly basis.

          
5

 

          “Casino Leases” shall mean any lease in respect of (i) the Horizon Casino and (ii) the
MontBleu Hotel and Casino.

          “Casino Services Agreements” shall mean (i) the casino services agreement dated January 3,
2007 between Tropicana Casinos and the Borrower (as amended and restated on April 28, 2008), (ii)
the casino services agreement dated April 28, 2008 between the Borrower and Jubilee, (iii) the
casino services agreement dated April 28, 2008 between the Borrower and Vicksburg and (iv) the
casino services agreement January 3, 2007 among Tropicana Casinos, Aztar and Tropicana Las Vegas.

          “Change in Control” shall mean the occurrence of any of the following:

          (a) the direct or indirect sale, lease, transfer conveyance or other disposition, in one or a
series of related transactions, of all or substantially all of the assets of the Borrower and the
Subsidiaries, taken as a whole, to any Person other than members of the Yung Group; or

          (b) the Yung Group ceases to collectively own, beneficially or of record, all of the Equity
Interests of Holdings, the Borrower and each Subsidiary Guarantor or Holdings ceases to be the
record owner of the Borrower.

          “Change in Law” shall mean (a) the adoption of any law, rule or regulation after the date of
this Agreement, (b) any change in any law, rule or regulation or in the interpretation or
application thereof by any Governmental Authority after the date of this Agreement or (c)
compliance by any Lender or the Issuing Bank (or, for purposes of Section 2.15, by any lending
office of such Lender or by such Lender’s or Issuing Bank’s holding company, if any) with any
request, guideline or directive of any Governmental Authority made or issued after the date of
this Agreement.

          “Chapter 11 Cases” shall have the meaning set forth in the recitals hereto.

          “City of Evansville” shall mean the vessel with the name “City of Evansville”, Official
Number 1035577, and all related fittings, furnishings, fixtures, equipment and appurtenances.

          “Closing Date” shall mean the date which is the date on which all the conditions precedent
set forth in Section 4.02 are either met or waived by the Administrative Agent.

          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to
time.

          “Collateral” shall mean all the “Collateral” as defined in any Security Document and shall
also include the Mortgaged Properties.

          “Columbia Sussex” shall mean Columbia Sussex Corporation, a Kentucky corporation.

          “Committee” shall mean the official statutory committee of unsecured creditors appointed in
the Chapter 11 Cases pursuant to section 1102 of the Bankruptcy Code.

          
6

 

          “Commitment” shall mean, with respect to each Lender, the commitment of such Lender to make
Term Loans hereunder as set forth on Schedule 2.01, or in the Assignment and Acceptance pursuant
to which such Lender assumed its Commitment, as applicable, as the same may be (a) reduced from
time to time pursuant to Section 2.10 and (b) reduced or increased from time to time pursuant to
assignments by or to such Lender pursuant to Section 9.04. The initial aggregate amount of the
Lenders’ Commitments is $67,000,000.

          “Commitment Fee” shall have the meaning assigned to such term in Section
2.06(a).

          “Consolidated EBITDA” shall mean, for any period, Consolidated Net Income for such period
plus (a) without duplication and to the extent deducted in determining such Consolidated Net
Income, the sum of (i) Consolidated Net Interest Expense for such period, (ii) consolidated income
tax expense for such period (not including any gaming taxes), (iii) all amounts attributable to
depreciation and amortization for such period, (iv) costs and expenses resulting from
administrative expenses paid with respect to the Chapter 11 Cases for professional fees and
expenses, (v) any non-cash charges (other than write down of current assets), losses or expenses
for such period and (vi) non-cash stock-option based and other equity based compensation expenses
and minus (b) without duplication (i) all cash payments made during such period on account of
reserves, restructuring charges and other non-cash charges added to Consolidated Net Income
pursuant to clause (a)(iv) above in a previous period, (ii) any non-cash gains for such period and
(iii) to the extent included in determining such Consolidated Net Income, any amounts received in
respect of the Tropicana Garage Insured Claims for such period, all determined on a consolidated
basis in accordance with GAAP.

          “Consolidated Net Income” shall mean, for any period, the net income or loss of the Borrower,
the Subsidiaries and the Affiliated Guarantors for such period determined on a consolidated basis
in accordance with GAAP (adjusted to reflect any charge, tax or expense incurred or accrued by
Holdings during such period as though such charge, tax or expense had been incurred by the
Borrower, to the extent that the Borrower has made or would be entitled under the Loan Documents to
make any payment to or for the account of Holdings in respect thereof); provided, that there shall
be excluded (a) the income of any Subsidiary to the extent that
the declaration or payment of dividends or similar distributions by the Subsidiary of that
income is not at the time permitted by operation of the terms of its charter or any agreement,
instrument, judgment, decree, statute, rule or governmental regulation applicable to such
Subsidiary, (b) the income or loss of any Person accrued prior to the date it becomes a subsidiary
or is merged into or consolidated with the Borrower, any Subsidiary or any Affiliated Guarantor or
prior to the date that such Person’s assets are acquired by the Borrower, any Subsidiary or any
Affiliated Guarantor, (c) the income of any Person in which any other Person (other than the
Borrower or a wholly owned Subsidiary or any director holding qualifying shares in accordance with
applicable law) has a joint interest to the extent such net income is subject to restrictions,
directly or indirectly, on the payment of dividends or the making of distributions by such Person,
directly or indirectly, to the Borrower or any Subsidiary (or to an Affiliated Guarantor if
applicable) and (d) any gains or losses attributable to sales of assets out of the ordinary course
of business or any other extraordinary gains or losses.

          “Consolidated Net Interest Expense” shall mean, for any period, (a) the sum of (i) the
interest expense (including imputed interest expense in respect of Capital Lease Obligations and
Synthetic Lease Obligations or any dividends or other payments made in respect

          
7

 

of any Equity Interest) of the Borrower, the Subsidiaries and the Affiliated Guarantors for such
period, determined on a consolidated basis in accordance with GAAP, plus (ii) any interest accrued
during such period in respect of Indebtedness of the Borrower, any Subsidiary or any Affiliated
Guarantor that is required to be capitalized rather than included in consolidated interest expense
for such period in accordance with GAAP minus (b) the sum of (i) total interest income of the
Borrower, the Subsidiaries and the Affiliated Guarantors for such period, in each case determined
in accordance with GAAP plus (ii) non-cash charges related to the amortization or write-off of debt
discount or debt issuance costs and commissions to the extent included in the interest expense for
such period. For purposes of the foregoing, interest expense shall be determined after giving
effect to any net payments made or received by the Borrower, any Subsidiary or any Affiliated
Guarantor with respect to interest rate Hedging Agreements.

          “Control” shall mean the possession, directly or indirectly, of the power to direct or cause
the direction of the management or policies of a Person, whether through the ownership of voting
securities, by contract or otherwise, and the terms “Controlling” and “Controlled” shall have
meanings correlative thereto.

          “CP Laughlin” shall have the meaning assigned to such term in the preamble.

          “Credit Event” shall have the meaning assigned to such term in Section 4.01.

          “Credit Facilities” shall mean the letter of credit and term loan facilities provided for by
this Agreement.

          “Default” shall mean any event or condition which upon notice, lapse of time or
both would constitute an Event of Default.

          “Defaulting Lender” shall mean any Lender that has (a) defaulted in its obligation to make a
Loan or to fund its participation in a Letter of Credit required to be made or funded by it
hereunder, (b) notified the Administrative Agent or a Loan Party in writing that it does not
intend to satisfy any such obligation or (c) become insolvent or the assets or management of which
has been taken over by any Governmental Authority.

          “Delayed Term Loans” shall mean the term loans made by the Lenders to the Borrower
pursuant to Section 2.01.

          “Disbursements” shall mean all amounts spent in support of the operations of the Loan Parties
(excluding bankruptcy fees, litigation related costs and fees and expenses of professionals to the
extent required to be paid by the Loan Parties).

          “Disqualification” shall mean, with respect to any Lender:

          (a) the failure of such Person to file timely (or obtain a waiver) pursuant to applicable
Gaming Laws (i) any application requested of that Person by any Gaming Authority in connection
with any licensing required of that Person as a Lender or (ii) any required application or other
papers in connection with any determination of the suitability of that Person as a Lender;

          (b) the withdrawal by such Person (except where requested or permitted by the Gaming
Authority) of any such application or other required papers; or

          

8

 

          (c) any final determination by a Gaming Authority pursuant to applicable Gaming Laws (i)
that such Person is “unsuitable” as a Lender, (ii) that such Person shall be “disqualified” as a
Lender or (iii) denying the issuance of any license required under applicable Gaming Laws to be
held by such Lender.

          “Disqualified Lender” shall mean any Lender subject to Disqualification.

          “dollars” or “$” shall mean lawful money of the United States of America.

          “Domestic Subsidiaries” shall mean all subsidiaries of the Borrower or the Subsidiary
Guarantors that are incorporated or organized under the laws of the United States of America,
any State thereof or the District of Columbia.

          “Doris” shall mean the floating casino barge associated with Bayou Caddy’s Jubilee Casino
with the name “Doris”, Official Number 566240, and all related fittings, furnishings,
fixtures, equipment and appurtenances.

          “Effective Date” shall mean the date upon which a plan of reorganization in any
of the Chapter 11 Cases becomes effective.

          “Eligible Assignee” shall mean (a) a Lender, (b) an Affiliate of a Lender, (c) a Related
Fund, and (d) any other Person (other than a natural person) approved by the Administrative Agent;
provided  that notwithstanding the foregoing, “Eligible Assignee” shall not include the Borrower or
any of its Affiliates;provided further, that notwithstanding clause (d) above, and subject to
there being no Default or Event of Default continuing, “Eligible Assignee” shall not include any
Person named in a list provided by the Borrower on or prior to the Closing Date to the
Administrative Agent and satisfactory to it in its sole discretion.

          “Environmental Laws” shall mean all applicable current and future Federal, state and local
laws (including common law), regulations, rules, ordinances, codes, and any legally binding
decrees, judgments, directives and orders (including consent orders), in each case, relating to
protection of the environment or natural resources, human health and safety as it relates to
environmental protection, the presence, Release of, or exposure to, Hazardous Materials, or the
generation, manufacture, processing, distribution, use, treatment, storage, transport, recycling
or handling of, or the arrangement for such activities with respect to, Hazardous Materials.

          “Environmental Liability” shall mean all liabilities, obligations, damages, losses, claims,
actions, suits, judgments, orders, fines, penalties, fees, expenses and costs (including
administrative oversight costs, natural resource damages and remediation costs), whether
contingent or otherwise, arising out of or relating to (a) non-compliance with any Environmental
Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any
Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the Release of any Hazardous
Materials or (e) any contract, agreement or other written consensual arrangement pursuant to which
liability is assumed or imposed with respect to any of the foregoing.

          “Equity Interests” shall mean shares of capital stock, partnership interests, membership
interests in a limited liability company, beneficial interests in a trust or other equity
interests in any Person, and any option, warrant or other right entitling the holder thereof to
purchase or otherwise acquire any such equity interest.

          
9

 

          “Equity Issuance” shall mean any issuance or sale by Holdings, the Borrower, any Subsidiary
or any Affiliated Guarantor and their respective subsidiaries of any Equity Interests of Holdings,
the Borrower, an Affiliated Guarantor or any such subsidiary, as applicable, except in each case
for (a) any issuance or sale to Holdings, the Borrower, any Subsidiary or any Affiliated
Guarantor, (b) any issuance of directors’ qualifying shares and (c) sales or issuances of common
stock of Holdings to directors, management, consultants or any other employee of Holdings, the
Borrower, any Subsidiary or any Affiliated Guarantor under any employee stock option or stock
purchase plan or employee benefit plan or similar plan in existence from time to time.

          “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as the same may be
amended from time to time.

          “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that,
together with the Borrower, is treated as a single employer under Section 414(b) or (c) of the
Code, or solely for purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a
single employer under Section 414 of the Code.

          “ERISA Event” shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA or
the regulations issued thereunder, with respect to a Plan (other than an event for which the 30-day
notice period is waived), (b) the existence with respect to any Plan of an “accumulated funding
deficiency” (as defined in Section 412 of the Code or Section 302 of ERISA) and, on and after the
effectiveness of the Pension Act, any failure by any Plan to satisfy the minimum funding standards
(within the meaning of Section 412 of the Code or Section 302 of ERISA) applicable to such Plan,
whether or not waived, (c) the filing pursuant to Section 412 of the Code or Section 303 of ERISA
of an application for a waiver of the minimum funding standard with respect to any Plan, (d) the
incurrence by the Borrower or any of its ERISA Affiliates of any liability under Title IV of ERISA
with respect to the termination of any Plan or the withdrawal or partial withdrawal of the Borrower
or any of its ERISA Affiliates from any Plan or Multiemployer Plan, (e) on and after the
effectiveness of the Pension Act, a determination that any Plan is, or is expected to be, in
“at-risk” status (within the meaning of Section 303(i)(4)(A) of ERISA or Section 430(i)(4)(A) of
the Code), the receipt by the Borrower or any of its ERISA Affiliates from the PBGC or a plan
administrator of any notice relating to the intention to terminate any Plan or Plans or to appoint
a trustee to administer any Plan, (g) the adoption of any amendment to a Plan that would require
the provision of security pursuant to Section 401(a)(29) of the Code or Section 307 of ERISA, (h)
the receipt by the Borrower or any of its ERISA Affiliates of any notice, or the receipt by any
Multiemployer Plan from the Borrower or any of its ERISA Affiliates of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected
to be, insolvent or in reorganization, within the meaning of Title IV of ERISA or (i) the
occurrence of a “prohibited transaction” with respect to which the Borrower or any of the
Subsidiaries is a “disqualified person” (within the meaning of Section 4975 of the Code) or with
respect to which the Borrower, any such Subsidiary or any Affiliated Guarantor could otherwise be
liable.

          “Eurodollar”, when used in reference to any Loan or Borrowing, refers to whether such
Loan, or the Loans comprising such Borrowing, are bearing interest at a rate determined by
reference to the Adjusted LIBO Rate.

          
10

 

          “Evansville” shall mean the business, assets and Equity Interests relating to Aztar Indiana
Gaming Company, LLC, an Indiana limited liability company.

          “Evansville Sale” shall mean the sale of the Equity Interest in Evansville under the
Evansville Sale Purchase Agreement.

          “Evansville Sale Purchase Agreement” shall mean (a) that certain securities purchase
agreement dated March 31, 2008 between amongst others Aztar Riverboat Holding Company LLC as
seller, Resorts Indiana, LLC as buyer and Eldorado Resorts, LLC a parent guarantor or (b) any
other purchase agreement entered into as a result of a sale conducted pursuant to Section
363(b) of the Bankruptcy Code with respect to Evansville.

          “Event of Default” shall have the meaning assigned to such term in ARTICLE
VII.

          “Excluded Asset Sales” shall mean (a) the Evansville Sale, (b) the Vicksburg Sale and (c)
the Atlantic City Facility Sale.

          “Excluded Collateral” shall mean those assets that are part of the Atlantic City Facility
that may not be pledged by the Loan Parties under the terms of the Atlantic City Conservatorship
Arrangements.

      
    “Excluded Subsidiaries” shall mean (a) Evansville;
provided that Evansville shall cease to be
an Excluded Subsidiary on the date which is the earlier of (i) the “Outside Date” as such term is
defined in the Evansville Sale Purchase Agreement as in effect on the Closing Date, and in any
event no later than December 10, 2008 and (ii) the date on which the Evansville Sale Purchase
Agreement ceases to be in full force and effect, (b) Vicksburg; provided that Vicksburg shall cease
to be an Excluded Subsidiary on the date which is the earlier of (i) August 31, 2008 (such date to
be extended in accordance with the Vicksburg Sale Purchase Agreement as in effect on the Closing
Date, but in any event no later than November 30, 2008) and (ii) the date on which the Vicksburg
Sale Purchase Agreement ceases to be in full force and effect, (c) Adamar and Manchester Mall;
provided that Adamar and Manchester Mall shall cease to be Excluded Subsidiaries if after three
months following the Closing Date, Adamar is Controlled directly or indirectly by Holdings or
otherwise if it ceases to be subject to the Atlantic City Conservatorship Arrangements and (d) the
Louisiana Subsidiaries; provided that each of the Louisiana Subsidiaries shall cease to be an
Excluded Subsidiary immediately and automatically upon receipt of the approval of the relevant
Gaming Authority to each such Louisiana Subsidiary becoming a party to the relevant Loan Documents.

          “Excluded Taxes” shall mean, with respect to the Administrative Agent, any Lender, the Issuing
Bank or any other recipient of any payment to be made by or on account of any obligation of the
Borrower hereunder, (a) income or franchise taxes imposed on (or measured by) its net income or net
profits by the United States of America, or by the jurisdiction under the laws of which such
recipient is organized or in which its principal office is located or, in the case of any Lender,
in which its applicable lending office is located, or in any other jurisdiction in which the
Administrative Agent or such Lender is engaged in business (other than any business arising solely
from the Administrative Agent or Lender having executed, delivered or performed its obligations, or
its rights hereunder), (b) any branch profits taxes imposed by the United States of America or any
similar tax imposed by any other jurisdiction described in clause (a) above and (c) in the case of
a Foreign Lender (other than an assignee pursuant to a request by the Borrower

          
11

 

under Section 2.22(a)), any withholding tax that is imposed on amounts payable to such Foreign
Lender at the time such Foreign Lender becomes a party to this Agreement (or designates a new
lending office) or is attributable to such Foreign Lender’s failure to comply with Section
2.21(e), except to the extent that such Foreign Lender (or its assignor, if any) was entitled, at
the time of designation of a new lending office (or assignment), to receive additional amounts
from the Borrower with respect to such withholding tax pursuant to Section 2.21(a).

          “Existing Loan Agreements” shall mean each of the Existing Senior Credit Agreement and
the Existing Las Vegas Credit Agreement.

          “Existing Las Vegas Credit Agreement” shall mean that certain term and revolving credit
agreement, dated as of January 3, 2007, among Tropicana Las Vegas, Tropicana Las Vegas Holdings,
LLC (formerly known as Wimar Landco Intermediate Holdings, LLC) and the guarantors party thereto,
Credit Suisse, as administrative agent and collateral agent thereunder, and the other financial
institutions party thereto as lenders (as it may be amended, supplemented or otherwise modified
from time to time).

          “Existing Las Vegas Facility” shall mean the secured term loan facility in an aggregate
principal amount up to $440,000,000 provided to Tropicana Las Vegas pursuant to the Existing Las
Vegas Credit Agreement.

          “Existing Las Vegas Liens” shall mean the Liens created under the Existing Las Vegas
Security Documents.

          “Existing Las Vegas Obligations” shall mean the “Obligations” as defined in the Existing Las
Vegas Credit Agreement.

          “Existing Las Vegas Secured Parties” shall mean the “Secured Parties” as defined in
the Existing Las Vegas Security Documents.

          “Existing Las Vegas Security Documents” shall mean the “Security Documents” as defined in the
Existing Las Vegas Security Documents.

          “Existing Security Documents” shall mean the Existing Senior Security Documents and
the Existing Las Vegas Credit Agreement.

          “Existing Senior Credit Agreement” shall mean that certain term and revolving credit
agreement, dated as of January 3, 2007, among Holdings and the Borrower and the guarantors party
thereto, Credit Suisse, as administrative agent and collateral agent thereunder, and the other
financial institutions party thereto as lenders (as it may be amended, supplemented or otherwise
modified from time to time, including the forbearance agreement dated December 12, 2007 relating
thereto).

          “Existing Senior Security Documents” shall mean the “Security Documents” as defined in the
Existing Senior Credit Agreement.

          “Extraordinary Receipts” shall mean the receipt by a Loan Party of (i) any payments
(excluding payments in respect of public liability, third party, product liability or business
interruption) from Stewart Title and Guaranty Company pursuant to the policy of title insurance
relating to the MontBleu Assets, (ii) any proceeds from indemnifications provided by

          
12

 

Columbia Sussex with respect to the termination of the lease of the Horizon Casino by reason of
the Park Cattle Disputes, in each case where the aggregate amount received under such policy,
indemnification, claim or refund exceeds $1,000,000, for an amount which is equal to 100% of such
payments less any expenses incurred by that Loan Party in relation to enforcing that policy,
claim, indemnification or refund or (iii) any tax refund (other than with respect to gaming taxes
and any other refund of federal income tax in respect of fiscal years 2005, 2006 and 2007 up to
$24,000,000) or any indemnity, purchase price adjustment or other payment received outside of the
ordinary course of business.

          “Federal Funds Effective Rate” shall mean, for any day, the weighted average of the rates on
overnight Federal funds transactions with members of the Federal Reserve System arranged by
Federal funds brokers, as published on the next succeeding Business Day by the Federal Reserve
Bank of New York, or, if such rate is not so published for any day that is a Business Day, the
average of the quotations for the day for such transactions received by the Administrative Agent
from three Federal funds brokers of recognized standing selected by it.

          “Fee Letter” shall mean the fee letter dated May 5, 2008, between the Borrower and the
Administrative Agent.

          “Fees” shall mean the Commitment Fees and the Administrative Agent Fees.

          “Final Order” shall mean an order of the Bankruptcy Court entered in the Chapter 11 Cases
after a final hearing under Bankruptcy Rule 4001 approving this Agreement and the other Loan
Documents and authorizing the incurrence by the Loan Parties of permanent post-petition secured
and superpriority Indebtedness in accordance with this Agreement, and as to which no stay has been
entered and which has not been reversed, modified, vacated or overturned, and which is in form and
substance satisfactory to Administrative Agent in its sole discretion.

          “Financial Officer” of any Person shall mean the chief financial officer, principal accounting
officer, vice president of finance, treasurer or controller of such Person.

          “First Day Orders” shall mean all orders entered by the Bankruptcy Court on the Petition Date
or within five Business Days of the Petition Date or based on motions filed on the Petition Date.

          “Foreign Lender” shall mean any Lender that is organized under the laws of a jurisdiction
other than that in which the Borrower is located. For purposes of this definition, the

          United States of America, each State thereof and the District of Columbia shall be deemed to
constitute a single jurisdiction.

          “Full Payment” shall mean, with respect to any Obligations, (i) the full and indefeasible
cash payment thereof, including any interest, fees and other charges accruing during the Chapter
11 Cases; and (ii) a release of any Indemnitee’ claims of the Loan Parties against the Agents, the
Lenders and the Issuing Bank arising on or before the payment date.

          “GAAP” shall mean, subject to the limitations of application set out in Section 1.02,
United States generally accepted accounting principles applied on a consistent basis.

          
13

 

          “Gaming Authority” shall mean, collectively, (a) the Nevada Gaming
Commission, (b) the Nevada State Gaming Control Board, (c) the Clark County (Nevada) Liquor and
Gaming License Board, (d) the Mississippi Gaming Commission, (e) the Louisiana Gaming Control
Board, (f) the New Jersey Division of Gaming Enforcement, (g) the NJ Commission, (h) the Indiana
Gaming Commission and (i) any other applicable Governmental Authority that holds regulatory,
licensing or permit authority over gaming or gaming activities that now or hereinafter has
jurisdiction over all or any portion of the gaming activities of Holdings, the Borrower, the
Subsidiaries or the Affiliated Guarantors.

          “Gaming Laws” shall mean all applicable provisions of all constitutions, treaties, statutes
and laws pursuant to which any Gaming Authority possesses regulatory, licensing or permit
authority over gambling, gaming or casino activities conducted by Holdings, the Borrower, the
Subsidiaries or the Affiliated Guarantors within their respective jurisdictions and all rules,
regulations, ordinances, approvals, orders, decisions, judgments, awards and decrees of any Gaming
Authority.

          “Governmental Authority” shall mean any Federal, state, local or foreign court or
governmental agency, authority, instrumentality, regulatory body, board or commission.

          “Granting Lender” shall have the meaning assigned to such term in Section
9.04(i).

          “Greenville” shall mean Greenville Riverboat, LLC, a Mississippi limited liability
company.

          “Guarantee” of or by any Person shall mean any obligation, contingent or otherwise, of such
Person guaranteeing or having the economic effect of guaranteeing any Indebtedness or other
obligation of any other Person (the “primary obligor”) in any manner, whether directly or
indirectly, and including any obligation of such Person, direct or indirect, (a) to purchase or
pay (or advance or supply funds for the purchase or payment of) such Indebtedness
or other obligation or to purchase (or to advance or supply funds for the purchase of) any
security for the payment of such Indebtedness or other obligation, (b) to purchase or lease
property, securities or services for the purpose of assuring the owner of such Indebtedness or
other obligation of the payment of such Indebtedness or other obligation or (c) to maintain
working capital, equity capital or any other financial statement condition or liquidity of the
primary obligor so as to enable the primary obligor to pay such Indebtedness or other obligation;
provided, however, that the term “Guarantee” shall not include endorsements for collection or
deposit in the ordinary course of business.

          “Guarantee and Collateral Agreement” shall mean the Guarantee and Collateral Agreement,
substantially in the form of Exhibit D, among the Borrower, Holdings, the Subsidiaries and the
Affiliated Guarantors party thereto and the Collateral Agent for the benefit of the Secured
Parties.

          “Guarantors” shall mean Holdings and the Subsidiary Guarantors.

          “Hazardous Materials” shall mean (a) any petroleum products or byproducts and (b) any
chemical, material, substance or waste defined or characterized as toxic, hazardous, a pollutant,
or a contaminant or words of similar meaning that is prohibited, limited or regulated by or
pursuant to any Environmental Law.

          
14

 

          “Hedging Agreement” shall mean any interest rate protection agreement, foreign currency
exchange agreement, commodity price protection agreement or other interest or currency exchange
rate or commodity price hedging arrangement.

          “Horizon Casino” shall mean the Horizon Hotel and Casino and related lands located in
Stateline, Nevada.

          “Horizon Estoppel Certificate” shall mean an estoppel certificate executed by Park Cattle
with respect to the lease of the Horizon Casino, substantially in the form attached as Exhibit
H-2 to the Existing Credit Agreement, with any changes thereto which are approved or reasonably
required by the Administrative Agent.

          “Indebtedness” of any Person shall mean, without duplication, (a) all obligations of such
Person for borrowed money or with respect to deposits or advances of any kind, (b) all obligations
of such Person evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of
such Person upon which interest charges are customarily paid, (d) all obligations of such Person
under conditional sale or other title retention agreements relating to property or assets purchased
by such Person, (e) all obligations of such Person issued or assumed as the deferred purchase price
of property or services (excluding trade accounts payable and accrued obligations incurred in the
ordinary course of business), (f) all Indebtedness of others secured by (or for which the holder of
such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on
property owned or acquired by such Person, whether or not the
obligations secured thereby have been assumed (notwithstanding that the rights and remedies of
the seller or lender under such agreement in an event of default may be limited to repossession or
sale of such property, in which case the lesser of the amount of such obligation and the fair
market value of such property shall constitute “Indebtedness”), (g) all Guarantees by such Person
of Indebtedness of others, (h) all Capital Lease Obligations and Synthetic Lease Obligations of
such Person, (i) all obligations of such Person as an account party in respect of letters of credit
and (j) all obligations of such Person to purchase, redeem, retire, defease or otherwise acquire
for value any Equity Interest. The Indebtedness of any Person shall include the Indebtedness of any
partnership in which such Person is a general partner.

          “Indemnified Taxes” shall mean Taxes other than Excluded Taxes.

          “Indemnitee” shall have the meaning set forth in Section 9.05(b).

          “Initial Term Loans” shall mean the term loans made by the Lenders to the Borrower on
the Closing Date pursuant to Section 2.01.

          “Interest Payment Date” shall mean (a) with respect to any ABR Loan, the first Business Day of
each calendar month, and (b) with respect to any Eurodollar Loan, (i) the monthly anniversary of
the first day of the Interest Period applicable to such Loan and (ii) the last day of each Interest
Period applicable to such Loan.

          “Interest Period” shall mean, with respect to any Eurodollar Borrowing, the period commencing
on the date of such Borrowing and ending on the numerically corresponding day (or, if there is no
numerically corresponding day, on the last day) in the calendar month that is 1, 2 or 3 months
thereafter, as the Borrower may elect; provided, however, that, unless the Administrative Agent
shall otherwise agree, the Interest Period of the initial Eurodollar Borrowing shall be of one
month’s duration; provided, further, however, that if any Interest

          
15

 

Period would end on a day other than a Business Day, such Interest Period shall be extended to the
next succeeding Business Day unless such next succeeding Business Day would fall in the next
calendar month, in which case such Interest Period shall end on the next preceding Business Day.
Interest shall accrue from and including the first day of an Interest Period to but excluding the
last day of such Interest Period. For purposes hereof, the date of a Borrowing initially shall be
the date on which such Borrowing is made and thereafter shall be the effective date of the most
recent conversion or continuation of such Borrowing.

          “Interim Order” shall mean that certain order of the Bankruptcy Court substantially in the
form of Exhibit G and otherwise in form and substance satisfactory to the Administrative Agent, in
its sole discretion, approving the Facilities, as to which no stay has been entered and which has
not been reversed, modified, vacated or overturned.

          “Interim Period” shall mean the period commencing on the Closing Date
(included) and ending on the date on which the Bankruptcy Court enters into the Final
Order (excluded).

          “Interim Sub-Limit” shall mean (a) with respect to Loans outstanding during the first three
Business Days of the Interim Period, $10,000,000 (or any other higher amount that the
Administrative Agent approves in its sole discretion) and (b) thereafter, $30,000,000.

          “Issuance Notice” shall mean an Issuance Notice substantially in the form of Exhibit E.

          “Issuing Bank” shall mean any financial institution designated by Administrative Agent to
issue Letters of Credit, in each case together with its permitted successors and assigns in such
capacity, and the term “Issuing Bank” in each such instance, shall mean the Issuing Bank with
respect to such Letter of Credit.

          “Jubilee” shall have the meaning assigned to such term in the preamble. “L/C
Application” shall have the meaning set forth in Section 2.23(a). “L/C Cash
Collateral” shall have the meaning set forth in Section 2.23(d)(i).

          “L/C Cash Collateral Account” shall have the meaning set forth in Section
2.23(d)(ii).

          “L/C Funding Support” shall mean any reimbursement arrangement, guaranty, cash collateral
arrangement or other credit support provided by Administrative Agent to an Issuing Bank in
respect of any Letter of Credit issued for the benefit of a Loan Party.

          “L/C Sublimit” shall mean $10,000,000.

          “L/C Usage” shall mean, as at any date of determination and without duplication, the sum of
(a) the maximum aggregate amount which is, or at any time thereafter may become, available for
drawing under all Letters of Credit then outstanding, and (ii) the aggregate amount of all
drawings under Letters of Credit honored by the Issuing Bank the repayment of which shall not, at
such time, been funded with the L/C Cash Collateral held by the Issuing Bank or the Administrative
Agent.

          
16

 

          “LandCo Cash Collateral Order” shall mean the order of the Bankruptcy Court entered in the
Chapter 11 Cases of the LandCo Subsidiaries as a First Day Order approving, among other things,
the LandCo Subsidiaries’ use of cash collateral, and such further orders of the Bankruptcy Court
with respect to such matters, in form and substance substantially similar to such First Day Order,
with any modifications thereto reasonably acceptable to the Administrative Agent.

          “LandCo Subsidiaries” shall mean Tropicana Las Vegas and its Subsidiaries.

          “Lenders” shall mean (a) the
Persons listed on Schedule 2.01 (other than any such Person
that has ceased to be a party hereto pursuant to an Assignment and
Acceptance) and (b)
any Person that has become a party hereto pursuant to an Assignment and Acceptance.

          “Letter of Credit” shall mean a standby letter of credit issued or to be issued
by an Issuing Bank for the benefit of the Borrower.

          “LIBO Rate” shall mean, with respect to any Eurodollar Borrowing for any Interest Period, the
rate per annum (rounded to the nearest one-hundredth of one percent (1/100 of 1%)) equal to (a)
the rate determined by the Administrative Agent to be the offered rate which appears on Reuters
Screen LIBOR01 Page for deposits (for delivery on the first day of such period) with a term
equivalent to such period in Dollars, determined as of approximately 11:00 a.m. (London time) on
the date that is two Business Days prior to the beginning of such Interest Period; or (b) in the
event the rate referenced in the preceding clause (a) does not appear on such page or service or
if such page or service shall cease to be available, the rate per annum (rounded to the nearest
one-hundredth of one percent (1/100 of 1%)) equal to the rate determined by the Administrative
Agent to be the offered rate on such other page or other service which displays an average British
Bankers Association Interest Settlement Rate for deposits (for delivery on the first day of such
period) with a term equivalent to such period in Dollars, determined as of approximately 11:00
a.m. (London time) on the date that is two Business Days prior to the beginning of such Interest
Period, or (c) in the event the rates referenced in the preceding clauses (a) and (b) are not
available, the rate per annum (rounded to the nearest one-hundredth of one percent (1/100 of 1%))
equal to the offered quotation rate to first class banks in the London interbank market for
deposits (for delivery on the first day of the relevant period) in Dollars of amounts in same day
funds comparable to the principal amount of the applicable Loan, for which the LIBO Rate is then
being determined with maturities comparable to such period as of approximately 11:00 a.m. (London
time) on the date that is two Business Days prior to the beginning of such Interest Period as
determined by the Administrative Agent in accordance with its customary practices.

          “License Revocation” shall mean the revocation, failure to renew or suspension of, or the
appointment of a receiver, supervisor or similar official with respect to, any casino, gambling
or gaming license issued by any Gaming Authority covering any casino or gaming facility of
Holdings, the Borrower, the Subsidiaries or the Affiliated Guarantors.

          “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien, pledge,
encumbrance, charge or security interest in or on such asset, (b) the interest of a vendor or a
lessor under any conditional sale agreement, capital lease or title retention agreement (or any
financing lease having substantially the same economic effect as any of the foregoing) relating to

          
17

 

such asset and (c) in the case of securities, any purchase option, call or similar right of a
third
party with respect to such securities.

          “Lighthouse Point Casino” shall mean the vessel “Lighthouse Point Casino”, Official
Number 1022782 (Hull No. 310), in Greenville, Mississippi.

          “Loan Documents” shall mean this Agreement, the Letters of Credit, the Fee Letter, the
Security Documents, the Orders, the promissory notes, if any, executed and delivered pursuant to
Section 2.05(e) and any other document designated as a Loan Document by the Borrower and the
Administrative Agent.

          “Loan Parties” shall mean Holdings, the Borrower and the Guarantors.

          “Loans” shall mean the Term Loans.

          “Louisiana Subsidiaries” shall mean Argosy of Louisiana, Inc., Catfish Queen Partnership
in Commendum, Centroplex Center Convention Hotel, L.L.C., CP Baton Rouge Casino, L.L.C. and
Jazz Enterprises, Inc.

          “Manchester Mall” shall mean Manchester Mall, Inc. a New Jersey corporation.

          “Margin Stock” shall have the meaning assigned to such term in Regulation U.

          “Material Adverse Effect” shall mean (a) a material adverse effect on the business, assets,
operations, condition (financial or otherwise), operating results or prospects of the Borrower and
the Subsidiaries, taken as a whole, (b) a material impairment of the ability of the Borrower or
any other Loan Party to perform any of its obligations under any Loan Document to which it is or
will be a party, (c) a material impairment of the rights and remedies of or benefits available to
the Lenders under any Loan Document or (d) the perfection or priority of the Liens granted
pursuant to this Loan Documents.

          “Material Indebtedness” shall mean (a) Indebtedness permitted under Section
6.01(a) in an aggregate principal amount exceeding $5,000,000 and (b) other
 Indebtedness (other than the Loans and Letters of Credit), or obligations in respect of one or
more Hedging Agreements, of any one or more of Holdings, the Borrower, any Subsidiary or any
Affiliated Guarantor in an aggregate principal amount exceeding $2,000,000. For purposes of
determining Material Indebtedness, the “principal amount” of the obligations of Holdings, the
Borrower, any Subsidiary or any Affiliated Guarantor in respect of any Hedging Agreement at any
time shall be the maximum aggregate amount (giving effect to any netting agreements) that
Holdings, the Borrower, such Subsidiary or such Affiliated Guarantor would be required to pay if
such Hedging Agreement were terminated at such time.

          “Maturity Date” shall mean the date which is the earlier of (a) Effective Date, (b) the date
which falls on the first anniversary of the Closing Date, (c) the date on which all Loans become
due and payable in full hereunder and (iv) the date of termination of the relevant Commitments
pursuant to Section 2.10.

          “MontBleu Acquisition” shall mean the acquisition by Tahoe of the assets of Desert Palace,
Inc. in Stateline, Nevada, pursuant to the Asset Acquisition Agreement dated as of November 19,
2004, between Desert Palace, Inc. and Tropicana Casinos, as assigned to Tahoe.

          
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          “MontBleu Assets” shall mean the assets acquired by (or assigned to) Tahoe pursuant to
the MontBleu Acquisition.

          “MontBleu Estoppel Certificate” shall mean an estoppel certificate executed by Park Cattle
with respect to the lease of MontBleu Hotel and Casino, substantially in the form attached hereto
as Exhibit H-1, with any changes thereto which are approved or reasonably requested by the
Administrative Agent.

          “MontBleu Hotel and Casino” shall mean that hotel and casino in Stateline (South Lake Tahoe),
Nevada, the subject of the MontBleu Acquisition, which has been rebranded as the MontBleu Casino.

          “Moody’s” shall mean Moody’s Investors Service, Inc., or any successor thereto.

          “Mortgaged Properties” shall mean the owned real properties and leasehold and subleasehold
interests of the Loan Parties specified on Schedule 1.01(b), and shall include each other parcel
of real property and improvements thereto with respect to which a mortgage is granted pursuant to
the Guarantee and Collateral Agreement.

          “Multiemployer Plan” shall mean a multiemployer plan as defined in Section
4001(a)(3) of ERISA.

          “Negative Pledge Agreements” shall mean (a) the agreement dated January 3, 2007 executed by
CSC Holdings, LLC for the benefit of the Existing Administrative Agent for the Lenders under this
Agreement in respect of its membership interests in CP Laughlin and (b) the agreement dated January
3, 2007 executed by JMBS Casino Trust and William J Yung, III for the benefit of the Existing
Administrative Agent for the Lenders under this Agreement in respect of its membership interests in
Vicksburg.

          “Net Cash Proceeds” shall mean (a) with respect to any Asset Sale, the cash proceeds
(including cash proceeds subsequently received (as and when received) in respect of non-cash
consideration initially received and valued at the initial principal amount thereof in the case of
non-cash proceeds consisting of notes or other debt securities and valued at fair market value at
the time of such Asset Sale in the case of other non-cash proceeds), net of (i) selling expenses
(including broker’s fees or commissions, accountants’ fees, investment banking fees, consulting
fees, reasonable and documented legal fees and any other customary reasonable and documented fees
and out-of-pocket expenses actually incurred in connection therewith, transfer and similar taxes),
(ii) amounts provided as a reserve, in accordance with GAAP, against any liabilities under any
indemnification obligation or purchase price adjustment associated with such
Asset Sale (provided that, to the extent and at the time any such amounts are released from
such reserve, such amounts shall constitute Net Cash Proceeds), (ii) the principal amount, premium
or penalty, if any, interest and other amounts on any Indebtedness for borrowed money (including
the Existing Las Vegas Obligations) which is secured by the asset in such Asset Sale sold and which
is required to be repaid with such proceeds (other than any such Indebtedness assumed by the
purchaser of such asset, or any Indebtedness under the Existing Senior Credit Agreement), (iv) with
respect to an Excluded Asset Sale only, the cash proceeds which are used or required to prepay any
Indebtedness incurred under the Existing Senior Credit Agreement within 5 Business Days of the date
of receipt of such proceeds and (v) any amount required by the Bankruptcy Court to be paid or
prepaid on Indebtedness (other than the Obligations) secured by a perfected and unavoidable lien on
the assets subject to such Asset Sale; provided, however, that, (A) with

          
19

 

respect to cash proceeds received on account of a casualty or condemnation in an aggregate amount
of $5,000,000 or less, if no Default or Event of Default shall have occurred and shall be
continuing at the time of such receipt or at the proposed time of the application of such proceeds,
such proceeds shall not constitute Net Cash Proceeds to the extent reinvested in productive assets
of a kind then used or usable in the business of the Borrower and the Subsidiary Guarantors within
180 days of receipt of such proceeds, after which time such proceeds to the extent not so
reinvested shall be deemed to be Net Cash Proceeds and (B) with respect to cash proceeds received
on account of any Asset Sale (other than on account of a casualty or condemnation), if no Default
or Event of Default shall have occurred and shall be continuing at the time of such receipt or at
the proposed time of the application of such proceeds, such proceeds shall not constitute Net Cash
Proceeds to the extent reinvested in replacement assets used or usable in the business of the
Borrower and the Subsidiary Guarantors and subject to an effective Lien in favor of the
Administrative Agent under the Security Documents within 180 days of receipt of such proceeds,
after which time such proceeds to the extent not so reinvested shall be deemed to be Net Cash
Proceeds and (b) with respect to any issuance or incurrence of Indebtedness for borrowed money or
any Equity Issuance, the cash proceeds thereof, net of all attorneys’ fees, consulting fees,
investment banking fees, taxes and other customary fees, underwriting discounts, commissions, costs
and other expenses incurred in connection therewith.

          “NJ Commission” shall mean the State of New Jersey Casino Control
Commission.

          “Obligations” shall mean the Loans and all other amounts and obligations owing by any Loan
Party to the Administrative Agent, any Lender, any Issuing Bank, any Affiliate of any of them or
any Indemnitee, of every type and description (whether by reason of an extension of credit,
opening or amendment of a letter of credit or payment of any draft drawn or other payment
thereunder, loan, guaranty, indemnification or otherwise), present or future, arising under this
Agreement, any other Loan Document, whether direct or indirect (including those acquired by
assignment), absolute or contingent, due or to become due, now existing or hereafter arising and
however acquired and whether or not evidenced by any note, guaranty or other
instrument or for the payment of money, including all letter of credit, cash management and
other fees, interest, charges, expenses, attorneys’ fees and disbursements and other sums
chargeable to any Loan Party under this Agreement, any other Loan Document and all obligations of
any Loan Party under any Loan Document to provide Cash Collateral. For the avoidance of doubt, the
term “Obligations” shall not include any “Obligations” under the Existing Senior Credit Agreement.

          “OpCo Holdings” shall mean Tropicana Entertainment Holdings, LLC, formerly known as Wimar
OpCo Holdings, LLC, a Delaware limited liability company.

          “Orders” shall mean the Interim Order and the Final Order.

          “Other Taxes” shall mean any and all present or future stamp or documentary taxes or any
other excise or property taxes, charges or similar levies and all liabilities with respect thereto
arising from any payment made under any Loan Document or from the execution, delivery or
enforcement of, or otherwise with respect to, any Loan Document.

          “Park Cattle” shall mean Park Cattle Co., a Nevada corporation and its successors
and assigns.

          
20

 

          “Park Cattle Disputes” shall mean (i) the disputes between Tropicana Casinos and Park
Cattle regarding the lease of the Horizon Casino initially described in the letter dated March
23, 2005 from Downey Brand (counsel to Park Cattle) to Tropicana Casinos and other related
matters and (ii) the disputes between Columbia Properties Tahoe, LLC and Park Cattle regarding
the lease of the MontBleu Hotel and Casino described in the letters dated January 25, 2005 and
March 22, 2005 from Downey Brand to Desert Palace, Inc. and other related matters.

          “Park Cattle Settlement Arrangements” shall mean the stipulation for entry of judgment
dated April 2, 2008 among Park Cattle Co., Tropicana Casinos, Yung, Columbia Sussex, the
Borrower and certain of its Subsidiaries relating to the Park Cattle Dispute together with all
related documents and agreements.

          “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA.

          “Pension Act” shall mean the Pension Protection Act of 2006, as amended.

          “Perfection Certificate” shall mean the Perfection Certificate substantially in the form of
Exhibit B to the Guarantee and Collateral Agreement and delivered in accordance with Section
5.14(i)(i).

          “Permitted Business” shall mean the business currently conducted by the Borrower, the
Subsidiaries and the Affiliated Guarantors, businesses substantially similar to the business
currently conducted by the Borrower, the Subsidiaries or the Affiliated Guarantors, or
any business or activity that is reasonably related, ancillary or complementary thereto or a
reasonable extension, development or expansion thereof.

          “Permitted Investments” shall mean:

          (a) direct obligations of, or obligations the principal of and interest on which are
unconditionally guaranteed by, the United States of America (or by any agency thereof to the extent
such obligations are backed by the full faith and credit of the United States of America), in each
case maturing within one year from the date of acquisition thereof;

          (b) investments in commercial paper maturing within 365 days from the date of acquisition
thereof and having, at such date of acquisition, a rating of at least A-1 by S&P or P-1 from
Moody’s;

          (c) investments in certificates of deposit, banker’s acceptances, securities backed by
standby letters of credit, time deposits, Eurodollar time deposits or overnight bank deposits
maturing within one year from the date of acquisition thereof issued or guaranteed by or placed
with, and money market deposit accounts issued or offered by, the Administrative Agent or any
domestic office of any commercial bank organized under the laws of the United States of America or
any State thereof that has a combined capital and surplus and undivided profits of not less than
$500,000,000;

          (d) fully collateralized repurchase agreements with a term of not more than 30 days for
securities described in clause (a) above and entered into with a financial institution satisfying
the criteria of clause (c) above; and

          
21

 

          (e) investments in “money market funds” within the meaning of Rule 2a-7 of the Investment
Company Act of 1940, as amended, substantially all of whose assets are invested in investments
of the type described in clauses (a) through (d) above or in the form of cash equivalents (or
foreign cash equivalents) or short term marketable debt securities.

          “Permitted Tax Distributions” shall mean (a) cash distributions to the holders of Equity
Interests of Vicksburg made not more frequently than once each fiscal quarter which shall be in an
amount required to satisfy actual cash tax liabilities of such holders arising after the Petition
Date relating to Vicksburg and its subsidiaries, and in any event in an amount not to exceed 40% of
the combined taxable income of Vicksburg and its subsidiaries; (iii) cash distributions to the
holders of Equity Interests of CP Laughlin made not more frequently than once each fiscal quarter
which shall be in an amount required to satisfy actual cash tax liabilities of such holders arising
after the Petition Date relating to CP Laughlin and its subsidiaries, and in any event in an amount
not to exceed 40% of the combined taxable income of CP Laughlin and its subsidiaries and (iv) cash
distributions to the holders of Equity Interests of Jubilee made not more frequently than once each
fiscal quarter which shall be in an amount required to satisfy actual cash tax liabilities of such
holders arising after the Petition Date relating to Jubilee and its
subsidiaries, and in any event in an amount not to exceed 40% of the combined taxable income
of Jubilee and its subsidiaries, in each case for the immediately preceding fiscal quarter.

          “Person” shall mean any natural person, corporation, business trust, joint venture,
association, company, limited liability company, partnership, Governmental Authority or other
entity.

          “Petition Date” shall have the meaning set forth in the recitals hereto.

          “Plan” shall mean any employee pension benefit plan (other than a
Multiemployer Plan) subject to the provisions of Title IV of ERISA or Section 412 of the Code or
Section 307 of ERISA, and in respect of which the Borrower or any ERISA Affiliate is (or, if such
plan were terminated, would under Section 4069 of ERISA be deemed to be) an “employer” as defined
in Section 3(5) of ERISA.

          “Platform” shall have the meaning set forth in Section 8.09(b).

          “Pledge Agreements” shall mean the Pledge Agreement-Nevada Gaming, the Pledge
Agreement-Louisiana and any other separate local law pledge agreement relating to the Equity
Interests or evidence of Indebtedness of any Subsidiary or any Affiliated Guarantor to the extent
required under applicable Gaming Laws.

          “Pledge Agreement-Louisiana” shall mean a Pledge Agreement substantially in the form of
Exhibit E-1 to the Existing Senior Credit Agreement to be entered into, subject to Gaming
Authority approval, between the Borrower, Holdings, certain Louisiana Subsidiaries and the
Administrative Agent under Section 5.14(g) with respect to the Equity Interests they own in the
Louisiana Subsidiaries.

          “Pledge Agreement-Nevada Gaming” shall mean a Pledge Agreement substantially in the form
of Exhibit E-2 to the Existing Senior Credit Agreement to be entered into, subject to Gaming
Authority approval, between the Borrower, Holdings, Columbia Properties Laughlin, LLC, Columbia
Properties Tahoe, LLC, Tahoe Horizon LLC, Aztar Corporation, Ramada Express Inc., Tropicana Las
Vegas Holdings, Tropicana Las Vegas and

          
22

 

certain of its subsidiaries and the Administrative Agent under Section 5.14(g) with respect to the
Equity Interests they own in the Borrower, Columbia Properties Laughlin, LLC, Columbia Properties
Tahoe, LLC, Tahoe Horizon LLC, Aztar Corporation, Ramada Express Inc., Tropicana Las Vegas
Holdings, Tropicana Las Vegas and its subsidiaries.

          “Prepetition Indebtedness” shall mean all Indebtedness of Borrower and its Subsidiaries
outstanding immediately prior to Petition Date and listed in Schedule 6.01 (which includes all
Indebtedness under the Existing Loan Agreements).

          “Prepayment Premium” shall mean at any date, with respect to any portion of any Loan that is
repaid or prepaid (whether voluntarily, mandatorily (to the extent required pursuant to Section
2.14(i)) or by way of acceleration) on such date and that has not been outstanding for at least 3
months, an amount equal to (A) the Applicable Percentage applicable to ABR Loans plus the
Alternate Base Rate at such date multiplied by (B) the principal amount of such portion of such
Loan multiplied by (C) the number of days between the date on which the Loans are declared due and
payable and the date which falls 3 calendar months following the drawing of such Loan divided by
(D) 360.

          “Prime Rate” shall mean the rate of interest quoted in The Wall Street Journal, Money Rates
Section as the Prime Rate (currently defined as the base rate on corporate loans posted by at least
seventy five percent (75%) of the nation’s thirty (30) largest banks), as in effect from time to
time. The Prime Rate is a reference rate and does not necessarily represent the lowest or best rate
actually charged to any customer. Any Agent or any other Lender may make commercial loans or other
loans at rates of interest at, above or below the Prime Rate.

          “Projections” shall mean the projections of Holdings, the Borrower, the
Affiliated Guarantors and their Subsidiaries prepared by the management of the Borrower for the
period commencing for the month of April, 2008 and ending for the month of April, 2009 and which
includes monthly projections for each month during such period.

          “Pro Rata Share” means with respect to each Lender, the percentage obtained by dividing (a)
the outstanding principal amount of the Loans and unused Commitment of such Lender (or such
Lender’s Commitment if no Loan is outstanding), by (b) the aggregate outstanding principal amount
of the Loans of all Lenders (or all Lender’s Commitments if no Loan is outstanding).

          “Register” shall have the meaning assigned to such term in Section 9.04(d).

          “Regulation T” shall mean Regulation T of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

          “Regulation U” shall mean Regulation U of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

          “Regulation X” shall mean Regulation X of the Board as from time to time in effect and all
official rulings and interpretations thereunder or thereof.

          “Related Fund” shall mean, with respect to any Lender that is an investment fund, any other
investment fund that invests in commercial loans and that is managed or advised by the same
investment advisor as such Lender or by an Affiliate of such investment advisor.

          
23

 

With respect to Silver Point, Related Fund shall also include any swap, special purpose vehicles
purchasing or acquiring security interests in collateralized loan obligations or any other
vehicle through which Silver Point may leverage its investments from time to time.

          “Related Parties” shall mean, with respect to any specified Person, such Person’s Affiliates
and the respective directors, trustees, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

          “Release” shall mean any release, spill, emission, leaking, dumping, injection, pouring,
deposit, disposal, discharge, dispersal, leaching or migration into or through the environment
or within or upon any building, structure, facility or fixture.

          “Required Lenders” shall mean, at any time, (a) Lenders having Loans and Commitments
representing more than 50% of the sum of all Loans outstanding and Commitments at such time;
provided that the Term Loans and unused Commitments of any Defaulting Lender shall be disregarded
in the determination of the Required Lenders at any time and (b) Silver Point Finance, LLC for so
long as it remains the Administrative Agent.

          “Responsible Officer” of any Person shall mean any executive officer or Financial Officer
of such Person and any other officer or similar official thereof responsible for the
administration of the obligations of such Person in respect of this Agreement.

          “Restricted Indebtedness” shall mean Indebtedness of Holdings, the Borrower, any Subsidiary
or any Affiliated Guarantor, the payment, prepayment, repurchase or defeasance of which is
restricted under Section 6.08(b).

          “Restricted Payment” shall mean any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in Holdings, the Borrower, any
Subsidiary or any Affiliated Guarantor, or any payment (whether in cash, securities or other
property), including any sinking fund or similar deposit, on account of the purchase, redemption,
retirement, acquisition, cancellation or termination of any Equity Interests in Holdings, the
Borrower, any Subsidiary or any Affiliated Guarantor.

          “Secured Parties” shall mean from time to time the Lenders, the Administrative Agent, the
Collateral Agent, any other holder of any Obligation and their successors and assigns.

          “Security Documents” shall mean the Guarantee and Collateral Agreement, the Pledge
Agreements, the Ship Mortgages, the Vessel Security Agreements and each of the security
agreements, mortgages and other instruments and documents executed and delivered pursuant to any
of the foregoing or pursuant to Section 5.14, as may be applicable.

          “Services Agreements” shall mean (i) the services agreement dated as of January 3, 2007
between Columbia Sussex and the Borrower, (ii) the services agreement dated as of August 26, 2004
(as amended as of November 6, 2006), between Columbia Sussex and Jubilee, (iii) the services
agreement dated as of October 27, 2003 (as amended as of August 7, 2006 and November 6, 2006),
between Columbia Sussex and Vicksburg and (iv) the services agreement dated as of January 3, 2007
among Columbia Sussex, Aztar and Tropicana Las Vegas.

          “Ship Mortgage” shall mean collectively, (a) a preferred ship mortgage in form
and substance acceptable to the Administrative Agent, executed in favor of the Collateral
Agent

          
24

 

granting a first priority Lien upon the vessel Lighthouse Point Casino, (b) a preferred ship
mortgage in form and substance acceptable to the Administrative Agent, executed in favor of the
Collateral Agent granting a first priority Lien upon the vessel Argosy III, (e) a preferred ship
mortgage in form and substance acceptable to the Administrative Agent, executed in favor of the
Collateral Agent granting a first priority Lien upon the vessel Bayou Caddy’s Jubilee Casino and
related support barge B-527 and floating casino barge Doris and (f) each other similar agreement
which may hereafter be executed by the Borrower in favor of the Collateral Agent (including any
such ship mortgage executed with respect to any other vessel used in connection with any related
gaming operations), each substantially in the form of Exhibit K of the Existing Senior Credit
Agreement.

          “SPC” shall have the meaning assigned to such term in Section 9.04(i).

          “S&P” shall mean Standard & Poor’s Ratings Service, or any successor thereto.

          “Statutory Reserves” shall mean a fraction (expressed as a decimal), the numerator of which
is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves)
expressed as a decimal established by the Board and any other banking authority, domestic or
foreign, to which the Administrative Agent or any Lender (including any branch, Affiliate or other
fronting office making or holding a Loan) is subject for Eurocurrency Liabilities (as defined in
Regulation D of the Board). Eurodollar Loans shall be deemed to constitute Eurocurrency
Liabilities as defined in Regulation D of the Board) and to be subject to such reserve
requirements without benefit of or credit for proration, exemptions or offsets that may be
available from time to time to any Lender under such Regulation D. Statutory Reserves shall be
adjusted automatically on and as of the effective date of any change in any reserve percentage.

          “Subordinated Note Documents” shall mean the indenture under which the Subordinated Notes are
issued and all other instruments, agreements and other documents evidencing or governing the
Subordinated Notes or providing for any Guarantee or other right in respect thereof.

          “Subordinated Notes” shall mean the Borrower’s 9.625% Senior Subordinated Notes due 2014,
in an initial aggregate principal amount of $960,000,000.

          “subsidiary” shall mean, with respect to any Person (herein referred to as the “parent”), any
corporation, partnership, limited liability company, association or other business entity (a) of
which securities or other ownership interests representing more than 50% of the equity or more
than 50% of the ordinary voting power or more than 50% of the general partnership interests are,
at the time any determination is being made, owned, Controlled or held,
or (b) that is, at the time any determination is made, otherwise Controlled, by the parent or
one or more subsidiaries of the parent or by the parent and one or more subsidiaries of the
parent.

          “Subsidiary” shall mean any subsidiary of the Borrower; provided that the Excluded
Subsidiaries (for so long as they remain Excluded Subsidiaries) other than the Louisiana
Subsidiaries and the LandCo Subsidiaries shall not be treated as “Subsidiaries” solely for the
purpose of calculating the financial definitions or for the purpose of determining compliance
with the financial covenants contained in Sections 6.09, 6.10 and 6.11.

          
25

 

          “Subsidiary Guarantor” shall mean each Subsidiary and Affiliated Guarantor listed on Schedule
1.01(a) (but excluding the Excluded Subsidiaries), the Additional Guarantors and each other
subsidiary that is or becomes a party to the Guarantee and Collateral Agreement or otherwise
provides a guarantee in respect of the Obligations.

          “Synthetic Lease” shall mean, as to any Person, any lease (including leases that may be
terminated by the lessee at any time) of any property (whether real, personal or mixed) (a) that
is accounted for as an operating lease under GAAP and (b) in respect of which the lessee retains
or obtains ownership of the property so leased for U.S. federal income tax purposes, other than
any such lease under which such Person is the lessor.

          “Synthetic Lease Obligations” shall mean, as to any Person, an amount equal to the
capitalized amount of the remaining lease payments under any Synthetic Lease that would appear on
a balance sheet of such Person in accordance with GAAP if such obligations were accounted for as
Capital Lease Obligations.

          “Synthetic Purchase Agreement” shall mean any swap, derivative or other agreement or
combination of agreements pursuant to which Holdings, the Borrower, any Subsidiary or any
Affiliated Guarantor is or may become obligated to make (a) any payment in connection with a
purchase by any third party from a Person other than Holdings, the Borrower, any Subsidiary or any
Affiliated Guarantor of any Equity Interest or Restricted Indebtedness or (b) any payment (other
than on account of a permitted purchase by it of any Equity Interest or Restricted Indebtedness)
the amount of which is determined by reference to the price or value at any time of any Equity
Interest or Restricted Indebtedness; provided that no phantom stock or similar plan providing for
payments only to current or former directors, officers or employees of Holdings, the Borrower, the
Subsidiaries or the Affiliated Guarantors (or to their heirs or estates) shall be deemed to be a
Synthetic Purchase Agreement.

          “Tahoe” shall mean Columbia Properties Tahoe, LLC, a Nevada limited liability
company.

          “Taxes” shall mean any and all present or future taxes, levies, imposts, duties,
deductions, charges or withholdings and all liabilities with respect thereto imposed by any
Governmental Authority.

          “Term Borrowing” shall mean a Borrowing comprised of Term Loans.

          “Term Lender” shall mean a Lender with a Commitment or an outstanding Term
Loan.

          “Term Loans” shall mean the Initial Term Loan and the Delayed Term Loans.

          “Total Commitment” shall mean, at any time, the aggregate of all Lenders’
Commitments.

          “Tropicana Casinos” shall mean Tropicana Casinos and Resorts, Inc formerly known as Wimar
Tahoe Corporation, a Nevada corporation.

          “Tropicana Garage Insured Claims” shall mean any insurance payments in respect of (i) the
“completed value builders risk” insurance policy issued by Zurich American

          
26

 

Insurance Company or (ii) insurance policies covering business interruption at the Tropicana Casino
and Resort in Atlantic City, New Jersey, issued by Lexington Insurance Company, U.S. Fire Insurance
Company, Westchester Surplus Lines Insurance Company, Essex Insurance Company, certain underwriters
at Lloyd’s, London, Hartford Insurance Company, Zurich American Insurance Company or any other
insurance company, in each case relating to the collapse of a portion of a parking garage under
construction at the Tropicana Casino and Resort in Atlantic City, New Jersey, on October 30, 2003.

          “Tropicana Las Vegas” shall mean Tropicana Las Vegas Resort and Casino, LLC, formerly
known as Wimar LandCo, LLC, a Delaware limited liability company.

          “Tropicana Las Vegas Intermediate Holdings” shall mean Tropicana Las Vegas Holdings, LLC
formerly known as Wimar LandCo Intermediate Holdings, LLC, a Delaware limited liability company.

          “Tropicana Las Vegas Prepayment Event” shall mean the sale of all or substantially all of
the assets of Tropicana Las Vegas Intermediate Holdings and its subsidiaries or the sale of all
or substantially all of the Equity Interests of Tropicana Las Vegas Intermediate or Tropicana Las
Vegas (or the Equity Interests of any subsidiary or subsidiaries of Tropicana Las Vegas, the
result of which is the transfer or other disposition of all or substantially all of the assets or
value of Tropicana Las Vegas Intermediate Holdings and its subsidiaries).

          “Tropicana Las Vegas Prepayment Proceeds” shall mean the gross proceeds from
any Tropicana Las Vegas Prepayment Event less (i) fees, costs and expenses (including
broker’s fees or commissions, accountants’ fees, investment banking fees, consulting fees, legal
fees and any other customary reasonable and documented fees and out-of pocket expenses actually
incurred in connection therewith, transfer and similar taxes) in connection therewith, (ii)
amounts provided as a reserve, in accordance with GAAP, against any liabilities under any
indemnification obligations or purchase price adjustment associated with such Tropicana Las Vegas
Prepayment Event (provided that, to the extent and at such time as any such amounts are released
from such reserve and returned to a Loan Party, such amounts shall constitute Tropicana Las Vegas
Prepayment Proceeds) and (iii) amounts required to repay in full all Indebtedness (including
breakage costs) and other obligations of Tropicana Las Vegas Intermediate Holdings and its
subsidiaries.

          “Trustee” shall mean the United States Trustee for the District of Delaware.

          “Type”, when used in respect of any Loan or Borrowing, shall refer to the Rate by reference
to which interest on such Loan or on the Loans comprising such Borrowing is determined. For
purposes hereof, the term “Rate” shall mean the Adjusted LIBO Rate and the Alternate Base Rate.

          “USA PATRIOT Act” shall mean The Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III of Pub. L. No. 107-56
(signed into law October 26, 2001)).

          “Vessel Security Agreement” shall refer to each vessel security agreement, in form and
substance acceptable to the Administrative Agent, entered into in connection with each Ship
Mortgage and creating a security interest in each vessel under the UCC in the event any such
vessel covered by a Ship Mortgage is determined to not be a “vessel” as required therein.

          
27

 

          “Vicksburg” shall mean Columbia Properties Vicksburg LLC, a Mississippi limited
liability company.

          “Vicksburg Sale” shall mean the sale of substantially all of the assets utilized in the
operation of the Vicksburg Horizon Casino and Hotel under the Vicksburg Sale Purchase Agreement.

          “Vicksburg Sale Purchase Agreement” shall mean (a) that certain agreement of sale dated
November 12, 2007 between amongst others Columbia Properties Vicksburg, LLC as seller and Nevada
Gold Vicksburg, LLC or (b) any other purchase agreement entered into as a result of a sale
conducted pursuant to Section 363(b) of the Bankruptcy Code with respect to Vicksburg.

          “wholly owned Subsidiary” of any Person shall mean a subsidiary of such Person of which
securities (except for directors’ qualifying shares) or other ownership interests
representing 100% of the Equity Interests are, at the time any determination is being made,
owned, Controlled or held by such Person or one or more wholly owned Subsidiaries of such Person or
by such Person and one or more wholly owned Subsidiaries of such Person.

          “Withdrawal Liability” shall mean liability to a Multiemployer Plan as a result of a complete
or partial withdrawal from such Multiemployer Plan, as such terms are defined in Part I of Subtitle
E of Title IV of ERISA.

          “Yung Group” shall mean (i) William J. Yung III, (ii) his spouse and members of his immediate
family (including siblings, children, grandchildren and children and grandchildren by adoption),
(iii) any Affiliate Controlled by any the foregoing, (iv) in the event of incompetence or death of
any of the persons described in paragraphs (i) and (ii) hereof, such person’s estate, executor,
administrator, committee or other personal representative, in each case who at the particular date
will beneficially own or have the right to acquire, directly or indirectly Equity Interests of
Holdings or the Borrower or (v) any trusts for their respective benefit, or any trust for the
benefit of any such trust; provided, however, that the Yung Group shall not include any operating
company affiliated with any of the foregoing (including Columbia Sussex) that is not engaged
exclusively in Permitted Businesses.

          1.02. Terms Generally. The definitions in Section 1.01 shall apply equally to both the
singular and plural forms of the terms defined. Whenever the context may require, any pronoun
shall include the corresponding masculine, feminine and neuter forms. The words “include”,
“includes” and “including” shall be deemed to be followed by the phrase “without limitation”. The
word “will” shall be construed to have the same meaning and effect as the word “shall”; and the
words “asset” and “property” shall be construed as having the same meaning and effect and to refer
to any and all tangible and intangible assets and properties, including cash, securities, accounts
and contract rights. All references herein to Articles, Sections, Exhibits and Schedules shall be
deemed references to Articles and Sections of, and Exhibits and Schedules to, this Agreement
unless the context shall otherwise require. Except as otherwise expressly provided herein, (a) any
reference in this Agreement to any Loan Document shall mean such document as amended, restated,
supplemented or otherwise modified from time to time and (b) all terms of an accounting or
financial nature shall be construed in accordance with GAAP, as in effect from time to time;
provided, however, that if the Borrower notifies the Administrative Agent that the Borrower wishes
to amend any covenant in ARTICLE VI or any related definition to eliminate

          
28

 

the effect of any change in GAAP occurring after the date of this Agreement on the operation of
such covenant (or if the Administrative Agent notifies the Borrower that the Required Lenders
wish to amend ARTICLE VI or any related definition for such purpose), then the Borrower’s
compliance with such covenant shall be determined on the basis of GAAP in effect immediately
before the relevant change in GAAP became effective, until either such notice is withdrawn or
such covenant is amended in a manner satisfactory to the Borrower and the Required Lenders.

          1.03. Classification of Loans and Borrowings. For purposes of this
Agreement, Loans may be classified by Type (e.g., a “Eurocurrency Loan”). Borrowings also
may be classified and referred to by Type (e.g., a “Eurocurrency Borrowing”).

ARTICLE II

The Credits

          2.01. Commitments. Subject to the terms and conditions and relying upon the representations
and warranties herein set forth, each Lender agrees, severally and not jointly, to make the Initial
Term Loan to the Borrower on the Closing Date and the Delayed Term Loans to the Borrower from time
to time from the period commencing on the Closing Date and ending on the Maturity Date in a
principal amount not to exceed its Commitment; provided that the aggregate amount of the Loans
outstanding at any time during the Interim Period shall not exceed the Interim Sub-Limit applicable
at such time. Amounts paid or prepaid in respect of Term Loans may not be reborrowed.

          2.02. Loans. (a) Each Loan shall be made as part of a Borrowing consisting of Loans made by
the Lenders ratably in accordance with their applicable Commitments; provided, however, that the
failure of any Lender to make any Loan shall not in itself relieve any other Lender of its
obligation to lend hereunder (it being understood, however, that no Lender shall be responsible
for the failure of any other Lender to make any Loan required to be made by such other Lender).
The Loans comprising any Borrowing shall be in an aggregate principal amount that is (i) an
integral multiple of $1,000,000 and not less than $5,000,000; provided that no minimum amount
shall be required for any Borrowing, the proceeds of which are used to fund L/C Cash Collateral
for the purpose of obtaining one or more Letters of Credit or (ii) equal to the remaining
available balance of the applicable Commitments.

          (b) Subject to Sections 2.09 and 2.16, each Borrowing shall be comprised entirely of ABR Loans
or Eurodollar Loans as the Borrower may request pursuant to Section 2.03. Each Lender may at its
option make any Eurodollar Loan by causing any domestic or foreign branch or Affiliate of such
Lender to make such Loan; provided that any exercise of such option shall not affect the obligation
of the Borrower to repay such Loan in accordance with the terms of this Agreement. Borrowings of
more than one Type may be outstanding at the same time; provided, however, that the Borrower shall
not be entitled to have more than six Eurodollar Borrowings outstanding hereunder at any time. For
purposes of the foregoing, Borrowings having different Interest Periods, regardless of whether they
commence on the same date, shall be considered separate Borrowings.

          (c) Each Lender shall make each Loan to be made by it hereunder on the proposed date
thereof by wire transfer of immediately available funds to such account in New

29

 

York City as the Administrative Agent may designate not later than 12:00 p.m. (noon), New York City
time, and the Administrative Agent shall promptly credit the amounts so received to an account
designated by the Borrower in the Borrowing Request or, if a Borrowing shall not occur on such date
because any condition precedent herein specified shall not have been met, return the amounts so
received to the respective Lenders.

          (d) Unless the Administrative Agent shall have received notice from a Lender prior to the date
of any Borrowing that such Lender will not make available to the Administrative Agent such Lender’s
portion of such Borrowing, the Administrative Agent may assume that such Lender has made such
portion available to the Administrative Agent on the date of such Borrowing in accordance with
Section 2.02(c) and the Administrative Agent may, in reliance upon such assumption, make available
to the Borrower on such date a corresponding amount. If the Administrative Agent shall have so made
funds available then, to the extent that such Lender shall not have made such portion available to
the Administrative Agent, such Lender agrees to repay to the Administrative Agent forthwith on
demand such corresponding amount together with interest thereon, for each day from the date such
amount is made available to the Borrower to but excluding the date such amount is repaid to the
Administrative Agent at a rate determined by the Administrative Agent to represent its cost of
overnight or short-term funds (which determination shall be conclusive absent manifest error). If
such Lender shall repay to the Administrative Agent such corresponding amount, such amount shall
constitute such Lender’s Loan as part of such Borrowing for purposes of this Agreement. If such
Lender’s share of such Borrowing is not made available to the Administrative Agent by such Lender
within one Business Day of the date of such Borrowing, the Administrative Agent shall also be
entitled to recover such amount with interest at the rate per annum equal to the interest rate for
the Loan comprising such Borrowing from the Borrower. Nothing in this Section 2.02(d) shall be
deemed to relieve any Lender of its obligation to fulfill its commitments hereunder or to prejudice
any rights of the Borrower against the Lender as a result of any default by such Lender hereunder.

          (e) Notwithstanding any other provision of this Agreement, the Borrower shall not be entitled
to request any Borrowing if the Interest Period requested with respect thereto would end after the
Maturity Date.

          2.03. Borrowing Procedure. In order to request a Borrowing, the Borrower shall notify the
Administrative Agent of such request by telephone (a) in the case of an ABR Term Loan, not later
than 10:00 a.m., New York City time one Business Day before a proposed Borrowing and (b) in the
case of a Eurodollar Borrowing, not later than 10:00 a.m., New York City time, three Business Days
before a proposed Borrowing. Each such telephonic Borrowing Request shall be irrevocable, and shall
be confirmed promptly by hand delivery or fax to the Administrative Agent of a written Borrowing
Request (it being understood that no Lender will fund any Term Loan in the absence of the receipt
by the Administrative Agent of a completed and executed Borrowing Request) and shall specify the
following information: (i) whether such Borrowing is to be a Eurodollar Borrowing or an ABR
Borrowing; (ii) the date of such Borrowing (which shall be a Business Day); (iii) the number and
location of the account to which funds are to be disbursed; (iv) the amount of such Borrowing; and
(v) if such Borrowing is to be a Eurodollar Borrowing, the Interest Period with respect
 thereto;
provided, however, that, notwithstanding any contrary specification in any Borrowing Request, each

requested Borrowing shall comply with the requirements set forth in Sections 2.01 and 2.02.
If no
election as to the Type of Borrowing is specified in any such notice, then the requested Borrowing
shall be an ABR Borrowing. If no Interest Period with respect to any Eurodollar Borrowing is
specified in any

30

 

such notice, then the Borrower shall be deemed to have selected an Interest Period of one month’s
duration. The Administrative Agent shall promptly advise the applicable Lenders of any notice given
pursuant to this Section 2.03 (and the contents thereof), and of each Lender’s portion of the
requested Borrowing.

          2.04. Use of Proceeds. The proceeds of the Loans shall be applied by the Borrower (and, to the
extent distributed to them by the Borrower, each other Loan Party) solely (a) to fund post-petition
operating expenses of the Loan Parties incurred in the ordinary course of business and to fund such
amounts authorized under the First Day Orders, (b) to pay certain other costs and expenses of
administration of the Chapter 11 Cases, (c) for working capital, capital expenditures and other
general corporate purposes of the Loan Parties following the Petition Date, (d) to fund L/C Cash
Collateral up to $10,000,000 at any time for the purpose of requesting the Administrative Agent to
procure the issuance of Letters of Credit in accordance with Section 2.23 and (e) to make payments
in connection with the adequate protection obligations set forth in the Orders, in each case (i)
not in contravention of any requirement of law, the Orders or the Loan Documents and (ii) to the
extent not materially inconsistent with the types of expenses set forth in the Approved Cash Flow
Forecast. Nothing herein shall in any way prejudice or prevent the Administrative Agent or the
Lenders from objecting, for any reason, to any requests, motions or applications made in the
Bankruptcy Court, including, without limitation, any applications for interim or final allowances
of compensation for services rendered or reimbursement of expenses incurred under Sections 105(a),
330 or 331 of the Bankruptcy Code, by any party in interest.

          2.05. Evidence of Debt; Repayment of Loans. (a) The Borrower hereby unconditionally
promises to pay to the Administrative Agent for the account of each Lender the principal amount
of each Term Loan of such Lender as provided in Section 2.12.

          (b) Each Lender shall maintain in accordance with its usual practice an account or accounts
evidencing the indebtedness of the Borrower to such Lender resulting from each Loan made by such
Lender from time to time, including the amounts of principal and interest payable and paid to
such Lender from time to time under this Agreement.

          (c) The Administrative Agent shall maintain accounts in which it will record (i) the amount of
each Loan made hereunder, the Type thereof and, if applicable, the Interest Period applicable
thereto, (ii) the amount of any principal or interest due and payable or to become due and payable
from the Borrower to each Lender hereunder and (iii) the amount of any sum received by the
Administrative Agent hereunder from the Borrower or any Guarantor and each Lender’s share thereof.

          (d) The entries made in the accounts maintained pursuant to Sections 2.05(b) and 2.05(c) shall
be prima facie evidence of the existence and amounts of the obligations therein recorded; provided,
however, that the failure of any Lender or the Administrative Agent to maintain such accounts or
any error therein shall not in any manner affect the obligations of the Borrower to repay the Loans
in accordance with their terms.

          (e) Any Lender may request that Loans made by it hereunder be evidenced by a promissory note.
In such event, the Borrower shall execute and deliver to such Lender a promissory note payable to
such Lender and its registered assigns and in a form and substance reasonably acceptable to the
Administrative Agent and the Borrower. Notwithstanding any other

31

 

provision of this Agreement, in the event any Lender shall request and receive such a promissory
note, the interests represented by such note shall at all times (including after any assignment of
all or part of such interests pursuant to Section 9.04) be represented by one or more promissory
notes payable to the payee named therein or its registered assigns.

          2.06. Fees. (a) The Borrower agrees to pay to each Lender, through the Administrative Agent,
on the first Business Day of each calendar month and on each date on which any Commitment of such
Lender shall expire or be terminated as provided herein, a commitment fee (a “Commitment Fee”)
equal to 1.25% per annum on the daily amount of the then effective average amount of the Commitment
of such Lender during the preceding month (or other period commencing with the date hereof or
ending with the Maturity Date or the date on which the Commitments of such Lender shall expire or
be terminated). All Commitment Fees shall be computed on the basis of the actual number of days
elapsed in a year of 360 days.

          (b) The Borrower agrees to pay to the Administrative Agent, for its own account, the fees
set forth in the Fee Letter at the times and in the amounts specified therein (the
 “Administrative Agent Fees”).

          (c) All Fees shall be paid on the dates due, in immediately available funds, to the
Administrative Agent for distribution, if and as appropriate, among the Lenders. Once paid, none of
the Fees shall be refundable under any circumstances.

          (d) The Borrower agrees to pay directly to the Administrative Agent, for its own account (as
reimbursement of reasonable and documented fees and out-of-pocket expenses paid by the
Administrative Agent to the Issuing Bank) the fees, expenses and additional costs relating to
such documentary and processing charges and fronting fees for any issuance, amendment, transfer
or payment of a Letter of Credit, and all costs and expenses incurred by the Administrative Agent
in procuring such Letter of Credit and providing the L/C Funding Support in connection therewith.

          2.07. Interest on Loans. (a) Subject to the provisions of Section 2.08, the Loans comprising
each ABR Borrowing shall bear interest (computed on the basis of the actual number of days
elapsed over a year of 365 or 366 days, as the case may be, when the Alternate Base Rate is
determined by reference to the Prime Rate and over a year of 360 days at all other times and
calculated from and including the date of such Borrowing to but excluding the date of repayment
thereof) at a rate per annum equal to the Alternate Base Rate plus the Applicable Percentage in
effect from time to time.

          (b) Subject to the provisions of Section 2.08, the Loans comprising each Eurodollar Borrowing
shall bear interest (computed on the basis of the actual number of days elapsed over a year of 360
days) at a rate per annum equal to the Adjusted LIBO Rate for the Interest Period in effect for
such Borrowing plus the Applicable Percentage in effect from time to time.

          (c) Interest on each Loan shall be payable on the Interest Payment Dates applicable to such
Loan except as otherwise provided in this Agreement. The applicable Alternate Base Rate or Adjusted
LIBO Rate for each Interest Period or day within an Interest Period, as the
case may be, shall be determined by the Administrative Agent, and such determination shall be
conclusive absent manifest error.

32

 

          2.08. Default Interest. If any Event of Default is continuing, then, until such Event of
Default is cured, remedied or waived, to the extent permitted by law, the Loans shall bear
interest (after as well as before judgment), payable on demand, (a) in the case of principal of a
Loan, at the rate otherwise applicable to such Loan pursuant to Section 2.07 plus 2.00% per annum
and (b) in all other cases, at a rate per annum (computed on the basis of the actual number of
days elapsed over a year of 365 or 366 days, as the case may be, when the Alternate Base Rate is
determined by reference to the Prime Rate and over a year of 360 days at all other times) equal to
the rate that would be applicable to that Loan (or in the case of amounts due that do not relate
to a particular Loan, the rate then applicable to an ABR Loan) plus 2.00% per annum.

          2.09. Alternate Rate of Interest. In the event, and on each occasion, that on the day two
Business Days prior to the commencement of any Interest Period for a Eurodollar Borrowing the
Administrative Agent shall have determined that dollar deposits in the principal amounts of the
Loans comprising such Borrowing are not generally available in the London interbank market, or
that the rates at which such dollar deposits are being offered will not adequately and fairly
reflect the cost to any Lender of making or maintaining its Eurodollar Loan during such Interest
Period, or that reasonable means do not exist for ascertaining the Adjusted LIBO Rate, the
Administrative Agent shall, as soon as practicable thereafter, give written or fax notice of such
determination to the Borrower and the Lenders. In the event of any such determination, until the
Administrative Agent shall have advised the Borrower and the Lenders that the circumstances giving
rise to such notice no longer exist, any request by the Borrower for a Eurodollar Borrowing
pursuant to Section 2.03 or 2.11 shall be deemed to be a request for an ABR Borrowing. Each
determination by the Administrative Agent under this Section 2.09 shall be conclusive absent
manifest error.

          2.10. Termination and Reduction of Commitments. (a) The Commitments shall automatically and
permanently be reduced by the principal amount of any Term Loan advanced hereunder or as provided
for in Section 2.14 and shall automatically terminate in full on the Maturity Date. Notwithstanding
the foregoing, if the Closing Date does not occur before May 9, 2008, all the Commitments shall
automatically terminate at 5:00 p.m., New York City time, on that date.

          (b) After three months after the Closing Date and upon at least three Business Days’ prior
irrevocable written or fax notice to the Administrative Agent, the Borrower may at any time in
whole permanently terminate, or from time to time in part permanently reduce, the Commitments;
provided, however, that (i) each partial reduction of the Commitments shall be in an integral
multiple of $500,000 and in a minimum amount of $1,000,000 and (ii) the Total Commitment shall not
be reduced to an amount that is less than the aggregate outstanding Term Loans or L/C Usage at the
time.

          (c) Each reduction in the Commitments hereunder shall be made ratably among the Lenders in
accordance with their respective applicable Commitments. The Borrower shall pay to the
Administrative Agent for the account of the applicable Lenders, on the date of each termination
or reduction, the Commitment Fees on the amount of the Commitments so terminated or reduced
accrued to but excluding the date of such termination or reduction.

          2.11. Conversion and Continuation of Borrowings. The Borrower shall have the right at any
time upon prior irrevocable notice (which may be by telephone, confirmed
promptly in writing or by fax) to the Administrative Agent (a) not later than 10:00 a.m.,
New

33

 

York City time, one Business Day prior to conversion, to convert any Eurodollar Borrowing into an
ABR Borrowing, (b) not later than 10:00 a.m., New York City time, three Business Days prior to
conversion or continuation, to convert any ABR Borrowing into a Eurodollar Borrowing or to continue
any Eurodollar Borrowing as a Eurodollar Borrowing for an additional Interest Period, and (c) not
later than 10:00 a.m., New York City time, three Business Days prior to conversion, to convert the
Interest Period with respect to any Eurodollar Borrowing to another permissible Interest Period,
subject in each case to the following:

               (i) (i) each conversion or continuation shall be made pro rata among the Lenders in
accordance with the respective principal amounts of the Loans comprising the converted or
continued Borrowing;

               (ii) if less than all the outstanding principal amount of any Borrowing shall be
converted or continued, then each resulting Borrowing shall satisfy the limitations
specified in Sections 2.02(a) and 2.02(b) regarding the principal amount and maximum number
of Borrowings of the relevant Type;

               (iii) each conversion shall be effected by each Lender and the Administrative Agent by
recording for the account of such Lender the new Loan of such Lender resulting from such
conversion or continuation, where appropriate, and reducing the Loan (or portion thereof) of such
Lender being converted by an equivalent principal amount; accrued interest on any Eurodollar Loan
(or portion thereof) being converted shall be paid by the Borrower at the time of conversion;

               (iv) if any Eurodollar Borrowing is converted at a time other than the end of the Interest
Period applicable thereto, the Borrower shall pay, upon demand, any amounts due to the Lenders
pursuant to Section 2.17;

               (v) any portion of a Borrowing maturing or required to be repaid in less than one month may
not be converted into or continued as a Eurodollar Borrowing;

               (vi) any portion of a Eurodollar Borrowing that cannot be converted into or continued as a
Eurodollar Borrowing by reason of Section 2.11(c)(v) shall be automatically converted at the end of
the Interest Period in effect for such Borrowing into an ABR Borrowing;

               (vii) no Interest Period may be selected for any Eurodollar Borrowing that would
end later than the Maturity Date; and

               (viii) upon notice to the Borrower from the Administrative Agent after the occurrence and
during the continuance of a Default or Event of Default, no outstanding Loan may be converted
into, or continued as, a Eurodollar Loan.

          (d) Each notice pursuant to this Section 2.11 shall be irrevocable and shall refer to this
Agreement and specify (i) the identity and amount of the Borrowing that the Borrower requests be
converted or continued, (ii) whether such Borrowing is to be converted to or continued as a
Eurodollar Borrowing or an ABR Borrowing, (iii) if such notice requests a conversion, the date of
such conversion (which shall be a Business Day) and (iv) if such Borrowing is to be converted to or
continued as a Eurodollar Borrowing, the Interest Period with respect thereto. If no Interest
Period is specified in any such notice with respect to any conversion

34

 

to or continuation as a Eurodollar Borrowing, the Borrower shall be deemed to have selected an
Interest Period of one month’s duration. The Administrative Agent shall advise the Lenders of any
notice given pursuant to this Section 2.11 and of each Lender’s portion of any converted or
continued Borrowing. If the Borrower shall not have given notice in accordance with this Section
2.11 to continue any Borrowing into a subsequent Interest Period (and shall not otherwise have
given notice in accordance with this Section 2.11 to convert such Borrowing), such Borrowing shall,
at the end of the Interest Period applicable thereto (unless repaid pursuant to the terms hereof),
automatically be continued into an ABR Borrowing.

          2.12. Repayment of Term Borrowings. (a) All Term Loans shall be due and payable on the
Maturity Date (whether by acceleration or otherwise) together with all other Obligations (including
but not limited to any accrued and unpaid interest on the principal amount to be paid to but
excluding the date of payment) without further application or order of the Bankruptcy Court to the
Administrative Agent.

          (b) Repayments of a Borrowing pursuant to this Section 2.12 shall be subject to Section 2.17,
but shall otherwise be without premium or penalty (subject to the provision of Section 2.14(i).

          2.13. Optional Prepayment. (a) The Borrower shall have the right at any time and from time to
time to prepay any Borrowing, in whole or in part, upon at least three Business Days’ prior
written or fax notice (or telephone notice promptly confirmed by written or fax notice) in the
case of Eurodollar Loans, or written or fax notice (or telephone notice promptly confirmed by
written or fax notice) at least one Business Day prior to the date of prepayment in the case of
ABR Loans, to the Administrative Agent before 12:00 p.m. (noon), New York City time; provided,
however, that (i) each partial prepayment shall be in an amount that is an integral multiple of
$500,000 and not less than $2,000,000, and (ii) each such prepayment shall be made subject to the
provisions of Sections 2.14(h) and Section 2.14(i).

          (b) Optional prepayments of Term Loans shall be applied first to ABR Term Loan Borrowings and
then to Eurodollar Term Loan Borrowings having the nearest Interest Payment Date.

          (c) Each notice of prepayment shall specify the prepayment date and the principal amount of
each Borrowing (or portion thereof) to be prepaid, shall be irrevocable (other than in connection
with a refinancing) and shall commit the Borrower to prepay such Borrowing by the amount stated
therein on the date stated therein. All prepayments under this Section 2.13 shall be subject to
Section 2.17, but shall otherwise be without premium or penalty (except the applicable Prepayment
Premium). All prepayments under this Section 2.13 shall be accompanied by accrued and unpaid
interest on the principal amount to be prepaid to but excluding the date of payment and applicable
Prepayment Premium.

          2.14. Mandatory Prepayments. (a) Not later than the first Business Day following the receipt
of Net Cash Proceeds in respect of any Asset Sale, the Borrower shall apply 100% of the Net Cash
Proceeds received with respect thereto to prepay outstanding Term Loans (or, if applicable, reduce
outstanding Commitments) in accordance with Section 2.14(f).

          (b) In the event and on each occasion that an Equity Issuance occurs, the Borrower shall,
substantially simultaneously with (and in any event not later than the first

35

 

Business Day next following) the occurrence of such Equity Issuance, apply 100% of the Net Cash
Proceeds therefrom to prepay outstanding Term Loans in accordance with Section 2.14(f).

          (c) In the event that any Loan Party shall receive Net Cash Proceeds from the issuance or
incurrence of Indebtedness for money borrowed of any Loan Party or any subsidiary of a Loan Party
(other than any cash proceeds from the issuance of Indebtedness for money borrowed permitted
pursuant to Section 6.01), the Borrower shall, substantially simultaneously with (and in any event
not later than the first Business Day next following) the receipt of such Net Cash Proceeds by
such Loan Party, apply an amount equal to 100% of such Net Cash Proceeds to prepay outstanding
Term Loans in accordance with Section 2.14(f). Notwithstanding the foregoing, the use of cash
collateral to the extent permitted under the Orders shall not constitute an incurrence of
Indebtedness for borrowed money.

          (d) In the event that any Loan Party shall receive any Extraordinary Receipt, the Borrower
shall, substantially simultaneously with (and in any event not later than the fifth Business Day
next following) the receipt of such Extraordinary Receipt, apply 100% of such Extraordinary
Receipt to prepay outstanding Term Loans in accordance with Section 2.14(f).

          (e) In the event and on the occasion of a Tropicana Las Vegas Prepayment Event, the Borrower
shall, substantially simultaneous with (and in any event not later than the fifth Business Day
next following) the occurrence of such Tropicana Las Vegas Prepayment Event, apply 100% of the
Tropicana Las Vegas Prepayment Proceeds therefrom to prepay outstanding Term Loans in accordance
with Section 2.14(f).

          (f) Mandatory prepayments described in Sections 2.14(a) to 2.14(e) shall be applied, subject
to the provisions of Section 2.14(h), (A) first, to the repayment of Term Loans outstanding
hereunder and (B) then, in the event the amount of such mandatory prepayment exceeds the amount of
Term Loans outstanding hereunder, to the permanent reduction of Commitments by the amount of such
excess; provided that this clause (B) shall solely be applicable with respect to mandatory
prepayments described in Sections 2.14(a) made in respect of Net Cash Proceeds received on account
of a casualty or condemnation. Any mandatory prepayment of outstanding Term Loans under this
Agreement shall be applied first to ABR Term Loan Borrowings and then to Eurodollar Term Loan
Borrowings having the nearest Interest Payment Date.

          (g) The Borrower shall deliver to the Administrative Agent, at the time of each prepayment
required under this Section 2.14, (i) a certificate signed by a Financial Officer of the Borrower
setting forth in reasonable detail the calculation of the amount of such prepayment and (ii) to the
extent practicable, at least three days prior written notice of such prepayment. Each notice of
prepayment shall specify the prepayment date, the Type of each Loan being prepaid and the principal
amount of each Loan (or portion thereof) to be prepaid. All prepayments of Borrowings under this
Section 2.14 shall be subject to Section 2.17, but shall otherwise be without premium or penalty
(except the applicable Prepayment Premium), and shall be accompanied by accrued and unpaid interest
on the principal amount to be prepaid to but excluding the date of payment.

          (h) Anything contained herein to the contrary notwithstanding, in the event the Borrower (i)
is required to make any mandatory prepayment under this Section 2.14 (each, a “Waivable
Prepayment”) or (ii) is required to make any permanent reduction of Commitments

36

 

under this Section 2.14 (a “Waivable Commitment Reduction”), not less than three (3) Business Days
prior to the date (the “Prepayment Date”) on which the Borrower is required to make such Waivable
Prepayment (or such Waivable Commitment Reduction as the case may be), the Borrower shall notify
the Administrative Agent of the amount of such prepayment or such reduction, and the Administrative
Agent will promptly thereafter notify each Lender holding an outstanding Loan or Commitment of the
amount of such Lender’s Pro Rata Share of such Waivable Prepayment or such Waivable Commitment
Reduction and such Lender’s option to refuse such prepayment or reduction. Each such Lender may
exercise such option by giving written notice to the Borrower and the Administrative Agent of its
election to do so on or before the first Business Day prior to the Prepayment Date (it being
understood that any Lender which does not notify the Borrower and the Administrative Agent of its
election to exercise such option on or before the first Business Day prior to the Prepayment Date
shall be deemed to have elected, as of such date, not to exercise such option). On the Prepayment
Date, (A) the Borrower shall pay to the Administrative Agent the amount of the Waivable Prepayment,
which amount shall be applied in an amount equal to that portion of the Waivable Prepayment payable
to those Lenders that have elected not to exercise such option, to prepay the Loans of such Lenders
(which shall be applied in accordance with Section 2.14(f)), (B) the Commitment of those Lenders
that have elected not to exercise such option shall be reduced as provided in Section 2.14(f) and
(C) to the extent of any excess, to the Borrower for any of the purposes permitted hereunder.

          (i) All prepayments (whether optional under Section 2.13, mandatory under Sections 2.14(b),
(c) or (e), or otherwise including by way of acceleration) shall be accompanied by accrued and
unpaid interest on the principal amount to be prepaid to but excluding the date of payment and any
Prepayment Premium.

          2.15. Reserve Requirements; Change in Circumstances. (a)

Notwithstanding any other provision of this Agreement, if any Change in Law shall impose, modify or
deem applicable any reserve, special deposit or similar requirement against assets of, deposits
with or for the account of or credit extended by any Lender (except any such reserve requirement
which is reflected in the Adjusted LIBO Rate) or shall impose on such Lender or the London
interbank market any other condition affecting this Agreement or Eurodollar Loans made by such
Lender or any Letter of Credit or participation therein, and the result of any of the foregoing
shall be to increase the cost to such Lender of making or maintaining any Eurodollar Loan or
increase the cost to any Lender or purchasing or maintaining a participation therein or to reduce
the amount of any sum received or receivable by such Lender hereunder (whether of principal,
interest or otherwise) by an amount deemed by such Lender (acting reasonably) to be material, then
the Borrower will pay to such Lender, as the case may be, upon demand such additional amount or
amounts as will compensate such Lender, as the case may be, for such additional costs incurred or
reduction suffered.

          (b) If any Lender shall have determined that any Change in Law regarding capital adequacy has
or would have the effect of reducing the rate of return on such Lender’s capital or on the capital
of such Lender’s holding company, if any, as a consequence of this Agreement or the Loans made to a
level below that which such Lender or such Lender’s holding company could have achieved but for
such Change in Law (taking into consideration such Lender’s policies and the policies of such
Lender’s holding company with respect to capital adequacy) by an amount deemed by such Lender
(acting reasonably) to be material, then from time to time the Borrower shall pay to such Lender,
as the case may be, such additional amount or

37

 

amounts as will compensate such Lender or such Lender’s holding company for any such
reduction suffered.

          (c) A certificate of a Lender setting forth the amount or amounts necessary to compensate such
Lender or its holding company, as applicable, as specified in Sections 2.15(a) or 2.15(b) shall be
delivered to the Borrower and shall be conclusive absent manifest error. The Borrower shall pay
such Lender the amount shown as due on any such certificate delivered by it within 10 Business Days
after its receipt of the same.

          (d) Failure or delay on the part of any Lender to demand compensation for any increased costs
or reduction in amounts received or receivable or reduction in return on capital shall not
constitute a waiver of such Lender’s right to demand such compensation; provided that the Borrower
shall not be under any obligation to compensate any Lender under Sections 2.15(a) or 2.15(b) with
respect to increased costs or reductions with respect to any period prior to the date that is 120
days prior to such request if such Lender knew or could reasonably have been expected to know of
the circumstances giving rise to such increased costs or reductions and of the fact that such
circumstances would result in a claim for increased compensation by reason of such increased costs
or reductions; provided further that the foregoing limitation shall not apply to any increased
costs or reductions arising out of the retroactive application of any Change in Law within such
120-day period. The protection of this Section shall be available to each Lender regardless of any
possible contention of the invalidity or inapplicability of the Change in Law that shall have
occurred or been imposed.

          2.16. Change in Legality. (a) Notwithstanding any other provision of this Agreement, if any
Change in Law shall make it unlawful for any Lender to make or maintain any Eurodollar Loan or to
give effect to its obligations as contemplated hereby with respect to any Eurodollar Loan, then,
by written notice to the Borrower and to the Administrative Agent:

               (i) such Lender may declare that Eurodollar Loans will not thereafter (for the duration of
such unlawfulness) be made by such Lender hereunder (or be continued for additional Interest
Periods) and ABR Loans will not thereafter (for such duration) be converted into Eurodollar Loans,
whereupon any request for a Eurodollar Borrowing (or to convert an ABR Borrowing to a Eurodollar
Borrowing or to continue a Eurodollar Borrowing for an additional Interest Period) shall, as to
such Lender only, be deemed a request for an ABR Loan (or a request to continue an ABR Loan as such
for an additional Interest Period or to convert a Eurodollar Loan into an ABR Loan, as the case may
be), unless such declaration shall be subsequently withdrawn; and

               (ii) such Lender may require that all outstanding Eurodollar Loans made by it be converted to
ABR Loans, in which event all such Eurodollar Loans shall be automatically converted to ABR Loans
as of the effective date of such notice as provided in Section 2.16(b).

          In the event any Lender shall exercise its rights under (i) or (ii) above, all payments and
prepayments of principal that would otherwise have been applied to repay the Eurodollar Loans
that would have been made by such Lender or the converted Eurodollar Loans of such Lender shall
instead be applied to repay the ABR Loans made by such Lender in lieu of, or resulting from the
conversion of, such Eurodollar Loans.

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          (b) For purposes of this Section 2.16, a notice to the Borrower by any Lender shall be
effective as to each Eurodollar Loan made by such Lender, if lawful, on the last day of the
Interest Period then applicable to such Eurodollar Loan; in all other cases such notice shall be
effective on the date of receipt by the Borrower.

          2.17. Indemnity. The Borrower shall indemnify each Lender against any loss or expense that
such Lender may sustain (other than loss of profits) or incur as a consequence of (a) any event,
other than a default by such Lender in the performance of its obligations hereunder, which results
in (i) such Lender receiving or being deemed to receive any amount on account of the principal of
any Eurodollar Loan prior to the end of the Interest Period in effect therefor, (ii) the
conversion of any Eurodollar Loan to an ABR Loan, or the conversion of the Interest Period with
respect to any Eurodollar Loan, in each case other than on the last day of the Interest Period in
effect therefor, or (iii) any Eurodollar Loan to be made by such Lender (including any Eurodollar
Loan to be made pursuant to a conversion or continuation under Section 2.11) not being made after
notice of such Loan shall have been given by the Borrower hereunder (any of the events referred to
in this clause (a) being referred to as a “Breakage Event”) or (b) any default by the Borrower in
the making of any payment or prepayment required to be made hereunder. In the case of any Breakage
Event, such loss shall include an amount equal to the excess, as reasonably determined by such
Lender, of (i) its cost of obtaining funds for the Eurodollar Loan that is the subject of such
Breakage Event for the period from the date of such Breakage Event to the last day of the Interest
Period in effect (or that would have been in effect) for such Loan over (ii) the amount of interest
likely to be realized by such Lender in redeploying the funds released or not utilized by reason of
such Breakage Event for such period. A certificate of any Lender setting forth any amount or
amounts which such Lender is entitled to receive pursuant to this Section 2.17 shall be delivered
to the Borrower and shall be conclusive absent manifest error.

          2.18. Pro Rata Treatment. Except as required under Section 2.16, each Borrowing, each payment
or prepayment of principal of any Borrowing, each payment of interest on the Loans, each payment of
the Commitment Fees, each reduction of the Commitments and each conversion of any Borrowing to or
continuation of any Borrowing as a Borrowing of any Type shall be allocated pro rata among the
Lenders in accordance with their respective applicable Commitments (or, if such Commitments shall
have expired or been terminated, in accordance with the respective principal amounts of their
outstanding Loans). Each Lender agrees that in computing such Lender’s portion of any Borrowing to
be made hereunder, the Administrative Agent may, in its discretion, round each Lender’s percentage
of such Borrowing to the next higher or lower whole dollar amount.

          2.19. Sharing of Setoffs. Each Lender agrees that if it shall, through the exercise of a right
of banker’s lien, setoff or counterclaim against the Borrower or any other Loan Party, or pursuant
to a secured claim under Section 506 of Title 11 of the United States Code or other security or
interest arising from, or in lieu of, such secured claim, received by such Lender under any
applicable bankruptcy, insolvency or other similar law or otherwise, or by any other means, obtain
payment (voluntary or involuntary) in respect of any Loan as a result of which the unpaid principal
portion of its Loans shall be proportionately less than the unpaid principal portion of the Loans
of any other Lender, it shall be deemed simultaneously to have purchased from such other Lender at
face value, and shall promptly pay to such other Lender the purchase price for, a participation in
the Loans of such other Lender, so that the aggregate unpaid principal amount of the Loans and
participations in Loans held by each Lender shall be in the same proportion to the aggregate unpaid
principal amount of all Loans then outstanding as the principal

39

 

amount of its Loans prior to such exercise of banker’s lien, setoff or counterclaim or other event
was to the principal amount of all Loans outstanding prior to such exercise of banker’s lien,
setoff or counterclaim or other event; provided, however, that if any such purchase or purchases or
adjustments shall be made pursuant to this Section 2.19 and the payment giving rise thereto shall
thereafter be recovered, such purchase or purchases or adjustments shall be rescinded to the extent
of such recovery and the purchase price or prices or adjustment restored without interest. The
Borrower and Holdings expressly consent to the foregoing arrangements.

          2.20. Payments. (a) The Borrower shall make each payment (including principal of or interest
on any Borrowing or any Fees or other amounts) hereunder and under any other Loan Document not
later than 12:00 p.m. (noon), New York City time, on the date when due in immediately available
dollars, without setoff, defense or counterclaim. Each such payment shall be made to the
Administrative Agent at its offices at 2 Greenwich Plaza, Greenwich, CT 06830. The Administrative
Agent shall promptly distribute to each Lender any payments received by the Administrative Agent on
behalf of such Lender.

          (b) Except as otherwise expressly provided herein, whenever any payment (including principal
of or interest on any Borrowing or any Fees or other amounts) hereunder or under any other Loan
Document shall become due, or otherwise would occur, on a day that is not a Business Day, such
payment may be made on the next succeeding Business Day, and such extension of time shall in such
case be included in the computation of interest or Fees, if applicable.

          (c) All monies to be applied to the Obligations, whether arising from payments by Loan
Parties, realization on Collateral, setoff or otherwise, shall be allocated as follows (i) first,
to unpaid fees and reimbursement of unpaid expenses of the Agents, (ii) second, to any unpaid fees
and reimbursement of unpaid expenses of the Lenders to the extent constituting part of the
Obligations, (iii) third, to unpaid interest, (iv) fourth, ratably to repay the principal of the
Loans and (v) last, to all other Obligations. Amounts shall be applied to each category of
Obligations set forth above until Full Payment thereof and then to the next category. If amounts
are insufficient to satisfy a category, they shall be applied on a pro rata basis among the
Obligations in the category. The allocations set forth in this Section are solely to determine the
rights and priorities of the Agents and Lenders as among themselves, and may be changed by
agreement among them without the consent of any Loan Party. This Section is not for the benefit of
or enforceable by the Borrower.

          2.21. Taxes. (a) Any and all payments by or on account of any obligation of the Borrower or
any other Loan Party hereunder or under any other Loan Document shall be made free and clear of and
without deduction for any Indemnified Taxes or Other Taxes; provided that, if the Borrower or any
other Loan Party shall be required to deduct any such Indemnified Taxes or Other Taxes from such
payments, then (i) the sum payable shall be increased as necessary so that after making all
required deductions (including deductions of Indemnified Taxes applicable to additional sums
payable under this Section) the Administrative Agent or Lender (as the case may be) receives an
amount equal to the sum it would have received had no such deductions been made, (ii) the Borrower
or such Loan Party shall make such deductions and (iii) the Borrower or such Loan Party shall pay
the full amount deducted to the relevant Governmental Authority in accordance with applicable law.

40

 

          (b) In addition, the Borrower shall pay, and authorizes the Administrative Agent to pay in
its name, any Other Taxes to the relevant Governmental Authority in accordance with applicable
law.

          (c) The Borrower shall indemnify the Administrative Agent and each Lender within 10 Business
Days after written demand therefor, for the full amount of any Indemnified Taxes or Other Taxes
paid by the Administrative Agent, such Lender as the case may be, on or with respect to any payment
by or on account of any obligation of the Borrower or any other Loan Party hereunder or under any
other Loan Document (including Indemnified Taxes or Other Taxes imposed or asserted on or
attributable to amounts payable under this Section) and any penalties, interest and reasonable
expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other
Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A
certificate as to the amount of such payment or liability delivered to the Borrower by a Lender, or
by the Administrative Agent on behalf of itself, a Lender, shall be conclusive absent manifest
error.

          (d) As soon as practicable after any payment of Indemnified Taxes or Other Taxes by the
Borrower or any other Loan Party to a Governmental Authority, the Borrower shall deliver to the
Administrative Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment or other evidence
of such payment reasonably satisfactory to the Administrative Agent.

          (e) Any Foreign Lender that is entitled to an exemption from or reduction of withholding tax
under the law of the jurisdiction in which the Borrower is located, or any treaty to which such
jurisdiction is a party, with respect to payments under this Agreement shall deliver to the
Borrower (with a copy to the Administrative Agent), at the time or times prescribed by applicable
law, such properly completed and executed documentation prescribed by applicable law or reasonably
requested by the Borrower certifying to such entitlement to exemption from, or a reduced rate of,
withholding or at a reduced rate.

          (f) If the Administrative Agent of any Lender determines, in its sole discretion, that it has
received a refund of any Indemnified Taxes or Other Taxes (including a credit in lieu of a cash
refund) as to which it has been indemnified by a Loan Party or with respect to which a Loan Party
has paid additional amounts pursuant to this Section 2.21, it shall pay over such refund to that
Loan Party (but only to the extent of indemnity payments made, or additional amounts paid, by such
Loan Party under this Section 2.21 with respect to the Indemnified Taxes or Other Taxes giving rise
to such refund), net of all out-of-pocket expenses of the Administrative Agent or such Lender and
without interest (other than any interest paid by the Governmental Authority with respect to such
refund); provided that the Loan Parties, upon the request of the Administrative Agent or such
Lender, agree to repay the amount paid over to such Loan Party (plus any penalties, interest or
other charges imposed by the relevant Governmental Authority) to the Administrative Agent or any
Lender in the event the Administrative Agent or such Lender is required to repay such refund to the
Governmental Authority. This Section 2.21(f) shall not be construed to require the Administrative
Agent or any Lender to make available its tax returns (or any other information it deems
confidential) to the Loan Parties or to apply for any refund.

          2.22. Assignment of Commitments Under Certain Circumstances; Duty to Mitigate. (a) In the
event that (i) any Lender delivers a certificate requesting compensation
pursuant to Section 2.15, (ii) any Lender delivers a notice described in Section 2.16, (iii)
any

41

 

Lender delivers a certificate pursuant to Section 2.17 for an amount that is materially greater
than other Lenders, (iv) the Borrower is required to pay any additional amount to any Lender or any
Governmental Authority on account of any Lender pursuant to Section 2.21, (v) any Lender defaults
in its obligation to make Loans hereunder or (vi) any Lender refuses to consent to any amendment,
waiver or other modification of any Loan Document requested by the Borrower that requires the
consent of a greater percentage of the Lenders than the Required Lenders and such amendment, waiver
or other modification has been consented to by the Required Lenders, the Borrower or the
Administrative Agent may at the sole expense and effort of the Borrower (including with respect to
the processing and recordation fee referred to in Section 9.04(b)), upon notice to such Lender,
require such Lender to transfer and assign, without recourse (in accordance with and subject to the
restrictions contained in Section 9.04), all of its interests, rights and obligations under this
Agreement (or, in the case of clause (vi) above, all of its interests, rights and obligations with
respect to the Type of Loans that is the subject of the related consent, amendment, waiver or other
modification) to an Eligible Assignee that shall assume such assigned obligations (which assignee
may be another Lender, if a Lender accepts such assignment) and, in addition, with respect to
clause (vi) above, shall consent to such requested amendment, waiver or other modification of any
Loan Documents; provided that (x) such assignment shall not conflict with any law, rule or
regulation or order of any court or other Governmental Authority having jurisdiction, (y) the
Borrower shall have received the prior written consent of the Administrative Agent and (z) the
Borrower or such assignee shall have paid to the affected Lender in immediately available funds an
amount equal to the sum of the principal of and interest accrued to the date of such payment on the
outstanding Loans of such Lender, respectively, plus all Fees and other amounts accrued for the
account of such Lender hereunder with respect thereto (including any amounts under Sections 2.15
and 2.17); provided further that, if prior to any such transfer and assignment the circumstances or
event that resulted in such Lender’s claim for compensation under Section 2.15 or 2.17, notice
under Section 2.16 or the amounts paid pursuant to Section 2.21, as the case may be, cease to cause
such Lender to suffer increased costs or reductions in amounts received or receivable or reduction
in return on capital, or cease to have the consequences specified in Section 2.16 (or in the case
of Section 2.17, cease to cause losses and expenses in an amount that is materially greater than
the other Lenders), or cease to result in amounts being payable under Section 2.21, as the case may
be (including as a result of any action taken by such Lender pursuant to Section 2.22(b)), or if
such Lender shall waive its right to claim further compensation under Section 2.15 or 2.17 in
respect of such circumstances or event or shall withdraw its notice under Section 2.16 or shall
waive its right to further payments under Section 2.21 in respect of such circumstances or event or
shall consent to the proposed amendment, waiver, consent or other modification, as the case may be,
then such Lender shall not thereafter be required to make any such transfer and assignment
hereunder. Each Lender hereby grants to the Administrative Agent an irrevocable power of attorney
(which power is coupled with an interest) to execute and deliver, on behalf of such Lender as
assignor, any Assignment and Acceptance necessary to effectuate any assignment of such Lender’s
interests hereunder in the circumstances contemplated by this Section  2.22(a).

          (b) If (i) any Lender shall request compensation under Section 2.15, (ii) any Lender delivers
a notice described in Section 2.16 or (iii) the Borrower is required to pay any additional amount
to any Lender or any Governmental Authority on account of any Lender, pursuant to Section 2.21,
then such Lender shall use reasonable efforts (which shall not require such Lender to incur an
unreimbursed loss or unreimbursed cost or expense or otherwise take any action inconsistent with
its internal policies or legal or regulatory restrictions or suffer any disadvantage or burden
deemed by it to be significant) (x) to file any certificate or document

42

 

reasonably requested in writing by the Borrower or (y) to assign its rights and delegate and
transfer its obligations hereunder to another of its offices, branches or affiliates, if such
filing or assignment would reduce its claims for compensation under Section 2.15 or enable it to
withdraw its notice pursuant to Section 2.16 or would reduce amounts payable pursuant to Section
2.21, as the case may be, in the future. The Borrower hereby agrees to pay all reasonable costs and
expenses incurred by any Lender in connection with any such filing or assignment, delegation and
transfer.

          2.23. L/C Funding Support; Letters of Credit.

          (a) L/C Funding Support. In order to obtain Letters of Credit from the Issuing Bank, the
Borrower has requested the Administrative Agent to procure such Letters of Credit, and the
Administrative Agent has agreed to do so. These arrangements shall be coordinated by the
Administrative Agent, subject to the terms and conditions set forth below. The Administrative
Agent shall not be required to be the issuer of any Letter of Credit. The Administrative Agent
will be the account party for the application for each Letter of Credit, which shall be in form
and substance reasonably satisfactory to the Administrative Agent and the Issuing Bank or on a
computer transmission system approved by the Administrative Agent and the Issuing Bank, or such
other written form or computer transmission system as may from time to time be approved by the
Administrative Agent and the Issuing Bank, and shall be duly completed in a manner and at a time
reasonably acceptable to the Administrative Agent and the Issuing Bank, together with such other
certificates, agreements, documents and other papers and information as the Administrative Agent
and the Issuing Bank may reasonably request (the “L/C Application”). In the event of any conflict
between the terms of any L/C Application and this Agreement, for purposes of this Agreement, the
terms of this Agreement shall control.

          (b) Letters of Credit. Letters of Credit that are issued by the Issuing Bank for the benefit
of the Borrower shall be issued no later than the Maturity Date. A Letter of Credit shall be issued
only if (and upon issuance the Borrower shall be deemed to represent and warrant to the
Administrative Agent, the Issuing Bank and each Lender that) (i) it is denominated in Dollars; (ii)
after giving effect to such issuance, the L/C Usage would not exceed the L/C Sublimit ; (iii) the
Borrower is in compliance with its obligations under Section 2.23(d)(iii); (iv) it has an
expiration date which is no later than the Maturity Date; and (v) after giving effect to such
issuance, the aggregate number of Letters of Credit outstanding at such time would not exceed ten.

          (c) Issuance and Funding Notices. Whenever the Borrower desires the issuance of a Letter of
Credit, it shall deliver to the Administrative Agent an Issuance Notice with respect to such Letter
of Credit. The Borrower acknowledges that the Issuing Bank shall issue the requested Letter of
Credit only in accordance with the Issuing Bank’s standard operating procedures and the terms of
its agreements with the Administrative Agent.

          (d) Funding of L/C Cash Collateral.

               (i) In order to request the Administrative Agent to procure the issuance of a Letter of
Credit by the Issuing Bank, the Borrower shall make cash available to the Administrative Agent
(the “L/C Cash Collateral”) solely from either (A) all or part of the proceeds of a Term Loan (in
which case, the Borrower shall direct the Administrative Agent to credit such proceeds directly
to the L/C Cash Collateral Account in the relevant Borrowing

43

 

Request) or (B) the proceeds of any L/C Cash Collateral released by any Issuing Bank with
respect to any Letter of Credit that has been terminated which was initially funded with the
proceeds of a Term Loan in accordance with the provisions of Section 2.04(d).

               (ii) Such L/C Cash Collateral shall be credited to one or more bank accounts opened in the
name of a financial institution reasonably acceptable to the Administrative Agent and over which
the Administrative Agent (and/or, at the Administrative Agent’s option, the Issuing Bank) shall
have sole dominion and control (collectively, the “L/C Cash Collateral Account”).

               (iii) The aggregate amount of L/C Cash Collateral credited to the L/C Cash Collateral
Account shall be at least equal to 100% of the aggregate amount of L/C Usage at all times;
provided that, during the continuance of an Event of Default referred to in Sections 7(b) or (c)
or any other Event of Default that has been continuing for 30 days or more, the Borrower shall
cause without prior notice the aggregate amount of L/C Cash Collateral to be at least equal to
105% of the aggregate amount of L/C Usage at all times.

               (iv) Upon the expiration or termination of any Letter of Credit, subject to the release by
the Issuing Bank of any L/C Cash Collateral over which it has control with respect to such
Letter or Credit or such L/C Funding Support, the Borrower may request the issuance of new
Letters of Credit in accordance with the provisions of this Section 2.23.

               (v) Upon the Borrower’s request the Administrative Agent shall apply the L/C Cash Collateral
in prepayment of the Term Loans in accordance with the provisions of Section 2.13 to the extent
that after such giving effect to such prepayment the Borrower still complies with its obligations
under Section 2.23(d)(iii). The parties hereto agree that the L/C Cash Collateral shall be solely
used for the purposes set forth in Section 2.23(e) and in this Section 2.23(d)(v).

          (e) Reimbursement of L/C Funding Support Amounts.

               (i) The Borrower shall be irrevocably and unconditionally obligated forthwith, without
presentment, demand, protest or other formalities of any kind, to reimburse the Administrative
Agent for any amounts paid by the Administrative Agent with respect to any Letter of Credit or
any L/C Funding Support including all reasonable fees, costs and expenses paid by the
Administrative Agent to the Issuing Bank) to the extent that the L/C Cash Collateral in respect
of the outstanding Letter of Credit is insufficient or is not otherwise available to the
Administrative Agent.

               (ii) Without limiting any of the foregoing, the Borrower hereby agrees that (A) any L/C Cash
Collateral may be utilized by the Administrative Agent as cash collateral to secure the obligations
of the Administrative Agent to the Issuing Bank under the L/C Funding Support and (B) the
Administrative Agent shall have the right to apply, or to instruct the Issuing Bank to apply, at
any time the L/C Cash Collateral for the Administrative Agent’s obligations under the L/C Funding
Support for such Letter of Credit for the amount of any drawing honored by the Issuing Bank
thereunder.

          (f) Obligations Absolute. The obligation of the Borrower to the Administrative Agent for
the amounts paid by the Administrative Agent with respect to any
L/C Funding Support shall be unconditional and irrevocable and shall be paid strictly in

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accordance with the terms hereof under all circumstances including any of the following
circumstances: (i) any lack of validity or enforceability of any Letter of Credit; (ii) the
existence of any claim, set off, defense or other right which the Borrower or any Lender may have
at any time against a beneficiary or any transferee of any Letter of Credit (or any Persons for
whom any such transferee may be acting), the Issuing Bank, a Lender or any other Person or, in the
case of a Lender, against the Borrower, whether in connection herewith, the transactions
contemplated herein or any unrelated transaction (including any underlying transaction between the
Borrower or one of its subsidiaries and the beneficiary for which any Letter of Credit was
procured); (iii) any draft or other document presented under any Letter of Credit proving to be
forged, fraudulent, invalid or insufficient in any respect or any statement therein being untrue or
inaccurate in any respect; (iv) payment by the Issuing Bank under any Letter of Credit against
presentation of a draft or other document which does not substantially comply with the terms of
such Letter of Credit; (v) any adverse change in the business, operations, properties, assets,
condition (financial or otherwise) or prospects of the Borrower or any of its subsidiaries; (vi)
any breach hereof or any other Loan Document by any party thereto; (vii) any other circumstance or
happening whatsoever, whether or not similar to any of the foregoing; or (viii) the fact that an
Event of Default or a Default shall have occurred and be continuing.

          (g) Indemnification. Without duplication of any obligation of the Borrower under Section 9.05,
in addition to amounts payable as provided herein, the Borrower hereby agrees to protect,
indemnify, pay and save harmless the Administrative Agent, the Issuing Bank and each Lender from
and against any and all claims, demands, liabilities, damages, losses, costs, charges and expenses
(including reasonable documented fees, expenses and disbursements of counsel) which the
Administrative Agent, the Issuing Bank or any Lender may incur or be subject to as a consequence,
direct or indirect, of (i) the issuance of any Letter of Credit by the Issuing Bank or (ii) the
failure of the Issuing Bank to honor a drawing under any such Letter of Credit as a result of any
act or omission, whether rightful or wrongful, of any present or future of any Governmental
Authority.

          2.24. Superpriority Nature of Obligations and Loans. (a) Except as otherwise provided in the
Orders and the LandCo Cash Collateral Order, the Liens granted to the Collateral Agent, for the
benefit of the Secured Parties, shall have the senior secured status afforded by Sections 364(c)
and 364(d) of the Bankruptcy Code, all as more fully provided in the Orders and the LandCo Cash
Collateral Order.

          (b) Except as otherwise provided in the Orders and the LandCo Cash Collateral Order, the
Obligations shall constitute superpriority administrative expense claims in each of the Chapter 11
Cases, as more fully provided in the Orders. Except as expressly set forth herein or in the Orders
or the LandCo Cash Collateral Order, no other claim having a priority superior or pari passu to
that granted to the Obligations shall be granted or approved.

          2.25. No Discharge; Survival of Claims. (a) The Obligations shall survive the entry of an
order (i) confirming any plan of reorganization in any of the Chapter 11 Cases unless paid in full
in cash; (ii) converting any of the Chapter 11 Cases to a case under chapter 7 of the Bankruptcy
Code or (iii) dismissing any of the Chapter 11 Cases and (b) until the Full Payment of the
Obligations, the superpriority administrative claim granted to the Obligations and all Liens
granted to the Collateral Agent shall continue in full force and effect and maintain their priority
as set forth in the Orders.

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          2.26. Waiver of any Priming Rights. Other than the Carve-Out or as expressly provided for in
the Orders, the Borrower and each Guarantor hereby irrevocably waives any right, pursuant to
Sections 364(c) or 364(d) of the Bankruptcy Code or otherwise, to grant any Lien of equal or
greater priority than the Liens securing the Obligations, or to approve or grant a claim of equal
or superior priority to the Obligations.

ARTICLE III

Representations and Warranties

          Each of Holdings, the Borrower and the Affiliated Guarantors represents and warrants to the
Administrative Agent, the Collateral Agent and each of the Lenders, with respect to itself and, in
the case of Holdings and the Borrower, each of its Subsidiaries, that:

          3.01. Organization; Powers. Holdings, the Borrower, each of the
Subsidiaries and each of the Affiliated Guarantors (a) is duly organized, validly existing and in
good standing under the laws of the jurisdiction of its incorporation or organization, (b) subject
to the entry of the Orders, has all requisite power and authority to own its property and assets
and to carry on its business as now conducted, (c) is qualified to do business in, and is in good
standing (where such concept is relevant) in, every jurisdiction where such qualification is
required, except where the failure so to qualify could not reasonably be expected to result in a
Material Adverse Effect, and (d) subject to the entry of the Orders, has the power and authority to
execute, deliver and perform its obligations under each of the Loan Documents and each other
agreement or instrument contemplated thereby to which it is a party and, in the case of the
Borrower, to borrow hereunder.

          3.02. Authorization; No Conflict. The Loan Documents (a) have been duly authorized by all
requisite corporate and, if required, stockholder action and (b) subject to the entry of the
Orders, will not (i) violate (A) any provision of law, statute, rule or regulation, or of the
certificate or articles of incorporation or other constitutive documents or by-laws of Holdings,
the Borrower, any Subsidiary or any Affiliated Guarantor except as would not have a Material
Adverse Effect, (B) any order of any Governmental Authority except as would not have a Material
Adverse Effect or (C) except as set forth on Schedule 3.02, any material provision of any material
indenture, agreement or other instrument to which Holdings, the Borrower, any Subsidiary or any
Affiliated Guarantor is a party or by which any of them or any of their property is or may be
bound, (ii) be in conflict with, result in a breach of or constitute (alone or with notice or lapse
of time or both) a default under, or give rise to any right to accelerate or to require the
prepayment, repurchase or redemption of any obligation under any such material indenture, agreement
or other instrument that (other than with respect to the Loan Documents) could reasonably be
expected to result in a Material Adverse Effect or (iii) result in the creation or imposition of
any Lien upon or with respect to any material property or material assets now owned or hereafter
acquired by Holdings, the Borrower, any Subsidiary or any Affiliated Guarantor (other than any Lien
created hereunder or under the Security Documents or as expressly permitted hereunder) that (other
than with respect to the Loan Documents) could reasonably be expected to result in a Material
Adverse Effect.

          3.03. Enforceability. This Agreement has been duly executed and delivered by Holdings, the
Borrower and the Affiliated Guarantors and constitutes, and each other Loan

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Document when executed and delivered by each Loan Party party thereto will constitute, subject to
the entry of the Orders, a legal, valid and binding obligation of such Loan Party enforceable
against such Loan Party in accordance with its terms.

          3.04. Governmental Approvals. Except as set forth on Schedule 3.04 and subject to the entry
of the Orders, no action, consent or approval of, registration or filing with or any other action
by any Governmental Authority (other than a Gaming Authority) is or will be required to enter
into the Loan Documents and borrow funds in connection therewith except for such as have been
made or obtained and are in full force and effect. Holdings, the Borrower, the Subsidiaries and
the Affiliated Guarantors have made, or promptly after the Closing Date will make, all necessary
applications to and, subject to any additional time to obtain such consents, approvals and
rulings contemplated by Section 5.16 or as set forth on Schedule 3.04, have procured all
necessary consents, approvals and favorable rulings of all applicable Gaming Authorities to (i)
pledge the Equity Interests of the Borrower, the Subsidiary Guarantors (other than the Affiliated
Guarantors) and their respective subsidiaries, where relevant, pursuant to the Pledge Agreements
and/or the Guarantee and Collateral Agreement, (ii) the restrictions on transfer and
hypothecation of the stock and equity securities of such Persons contained in Sections 6.02 and
6.04 of this Agreement, in the Pledge Agreements and otherwise in the other Loan Documents and
(iii) otherwise enter into the Loan Documents and borrow funds in connection therewith.

          3.05. Financial Statements. (a) The Borrower has heretofore furnished to the Lenders:

               (i) audited annual financial statements consolidated or combined, as applicable, of (x)
Tropicana Casinos (including the Affiliated Guarantors), and (y) Aztar, in each case for the 2006
fiscal years, audited by and accompanied by the opinion of the relevant independent public
accountants; and

               (ii) quarterly unaudited consolidated or combined, as applicable, statements of income of
Tropicana Casinos (including the Affiliated Guarantors) for each of the quarters ending on March
31, 2007, June 30, 2008 and September 30, 2008.

Such financial statements (A) present fairly the financial condition and results of operations
and cash flows of Tropicana Casinos as of such dates and for such periods, (B) disclose all
material liabilities, direct or contingent, of Tropicana Casinos (including the Affiliated
Guarantors) as of the dates thereof and (C) were prepared in accordance with GAAP applied on a
consistent basis, subject, in the case of unaudited financial statements, to year-end audit
adjustments and the absence of footnotes.

          (b) On and as of the Closing Date, the Projections are based upon estimates and assumptions
stated or referred to therein, all of which Holdings, the Borrower, the Affiliated Guarantors and
their Subsidiaries believe to be reasonable and fair in light of current overall conditions and
facts known to Holdings and its Subsidiaries and, as of the Closing Date, reflect Holdings’ and
its Subsidiaries’ good faith and reasonable estimates of the future financial performance of
Borrower and its Subsidiaries and of the other information projected therein for the periods set
forth therein; as of the Closing Date, management of Holdings believed that the Projections were
reasonable and attainable (subject to uncertainties and contingencies which may be beyond the
Borrower’s control).

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          3.06. Cash Flow Forecast. Each Cash Flow Forecast as of the time delivered to the
Administrative Agent, was prepared by Holdings, the Borrower, the Affiliated Guarantors and their
Subsidiaries (other than the LandCo Subsidiaries) in light of the past operations of the business
of Holdings, the Borrower, the Affiliated Guarantors and their Subsidiaries (other than the LandCo
Subsidiaries), and reflects projections for the 13-week period beginning on the Closing Date (or,
to the extent amended pursuant to Section 6.13, such date reflected therein), on a week by week
basis. Each Cash Flow Forecast is based upon estimates and assumptions stated therein, all of which
Holdings, the Borrower, the Affiliated Guarantors and their Subsidiaries (other than the LandCo
Subsidiaries) believe to be reasonable and fair in light of current overall conditions and facts
known to Holdings and its Subsidiaries and, as of the Closing Date (or, to the extent amended
pursuant to Section 6.13, such the date reflected therein), reflect Holdings’ and its Subsidiaries’
(other than the LandCo Subsidiaries) good faith and reasonable estimates of the future financial
performance of the Holdings, the Borrower, the Affiliated Guarantors and their Subsidiaries (other
than the LandCo Subsidiaries) and of the other information projected therein for the periods set
forth therein.

          3.07. No Material Adverse Change. Other than (a) the filing of the Chapter 11 Cases, (b) the
appointment of the trustee with respect to Evansville, (c) the events of default under the Existing
Loan Agreements and the Subordinated Note Documents, (d) the proposed Atlantic City Facility Sale,
(e) the transactions contemplated in the Evansville Sale Purchase Agreement and the Vicksburg Sale
Purchase Agreement, (f) the terms of the Park Cattle Settlement Arrangements and (g) the License
Revocation relating to the Atlantic City Facility, no event, change or condition has occurred that
has had, or could reasonably be expected to have, a Material Adverse Effect, since September 31,
2007.

          3.08. Title to Properties; Possession Under Leases. (a) Except as set forth on Schedule
3.08, each of Holdings, the Borrower and the Subsidiary Guarantors has good and marketable title
to (including in connection therewith, valid easements), or valid leasehold interests in, all
its material properties and assets (including all Mortgaged Property), except for minor defects
in title that do not interfere with its ability to conduct its business as currently conducted
or to utilize such properties and assets for their intended purposes. All such material
properties and assets are free and clear of Liens, other than Liens expressly permitted by
Section 6.02 or arising by operation of law.

          (b) Except as set forth on Schedule 3.08, each of Holdings, the Borrower and the Subsidiary
Guarantors has complied with all material post-petition obligations under all material leases
(including all leases of Mortgaged Property) to which it is a party and all such leases are in full
force and effect. Each of Holdings, the Borrower and the Subsidiary Guarantors enjoys peaceful and
undisturbed possession under all such material leases. Subject to the entry of the Orders, the
granting of a Lien encumbering the proceeds of the leasehold interest of Holdings, the Borrower and
any Subsidiary Guarantor in any Mortgaged Property (i) does not require landlord consent or
approval under the applicable lease that has not been obtained and (ii) will not violate or result
in a default under such lease.

          (c) As of the Closing Date, none of Holdings, the Borrower or any Subsidiary Guarantor has
received any actual notice of, nor has any actual knowledge of, any pending or contemplated
condemnation proceeding affecting the Mortgaged Properties owned by it or any sale or disposition
thereof in lieu of condemnation.

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          (d) As of the Closing Date, other than with respect to the MontBleu Hotel and Casino, none
of Holdings, the Borrower or any Subsidiary Guarantor is obligated under any right of first
refusal, option or other contractual right to sell, assign or otherwise dispose of any Mortgaged
Property or any interest therein.

          3.09. Subsidiaries. Schedule 3.09 sets forth as of the Closing Date a list of all Subsidiaries
and the percentage ownership interest of Holdings or the Borrower therein and the ownership
interests of the Affiliated Guarantors. The shares of capital stock or other ownership interests so
indicated on Schedule 3.09 held in such Subsidiary or Affiliated Guarantor are fully paid and
non-assessable and are owned by Holdings or the Borrower, directly or indirectly, free and clear of
all Liens (other than Liens created under the Security Documents, the Orders, the LandCo Cash
Collateral Order, the Existing Security Documents and/or post petition Liens permitted under
Section 6.02).

          3.10. Litigation; Compliance with Laws. (a) Except as set forth on Schedule 3.10 and other
than the Chapter 11 Cases, there are no actions, suits or proceedings at law or in equity or by
or before any Governmental Authority now pending or, to the actual knowledge of Holdings, the
Borrower or the Affiliated Guarantors, threatened against Holdings, the Borrower, any Subsidiary
or any Affiliated Guarantor or any business, property or rights of any such Person (i) that
involve any Loan Document or (ii) as to which there is a reasonable possibility of an adverse
determination and that, if adversely determined, could reasonably be expected, individually or in
the aggregate, to result in a Material Adverse Effect.

          (b) None of Holdings, the Borrower, any of the Subsidiaries or any of the Affiliated
Guarantors or any of their respective material properties or assets is in violation of, nor will
the continued operation of their material properties and assets as currently conducted violate, any
law, rule or regulation (including any zoning, building, ordinance, code or approval or any
building permits) or any restrictions of record or agreements affecting the Mortgaged Property, or
is in default with respect to any judgment, writ, injunction, decree or order of any Governmental
Authority, where such violation or default would reasonably be expected to result in a Material
Adverse Effect.

          (c) Certificates of occupancy and permits are in effect for each Mortgaged Property as
currently constructed, except where the failure to have the same could not reasonably be expected
to result in a Material Adverse Effect, and true and complete copies of such certificates of
occupancy as are available using commercially reasonable efforts have been delivered to the
Collateral Agent as mortgagee with respect to each Mortgaged Property.

          3.11. Agreements. Subject to the entry of the Orders, none of Holdings, the Borrower, any
of the Subsidiaries or any of the Affiliated Guarantors is in default in any manner under any
provision of any indenture or other agreement or instrument evidencing Indebtedness, or any other
material agreement or instrument to which it is a party, where such default would reasonably be
expected to result in a Material Adverse Effect.

          3.12. Federal Reserve Regulations. (a) None of Holdings, the Borrower, any of the
Subsidiaries or any of the Affiliated Guarantors is engaged principally, or as one of its
important activities, in the business of extending credit for the purpose of buying or carrying
Margin Stock.

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          (b) No part of the proceeds of any Loan or any Letter of Credit will be used, whether directly
or indirectly, and whether immediately, incidentally or ultimately, for any purpose that entails a
violation of, or that is inconsistent with, the provisions of the Regulations of the Board,
including Regulation T, U or X.

          3.13. Investment Company Act. None of Holdings, the Borrower, any Subsidiary or any
Affiliated Guarantor is an “investment company” as defined in, or subject to regulation under,
the Investment Company Act of 1940.

          3.14. Tax Returns. Each of Holdings, the Borrower, the Subsidiaries and the Affiliated
Guarantors has filed or caused to be filed all Federal, state, local and (to the extent it has
foreign operations) foreign tax returns required to have been filed by it and has paid or caused to
be paid all taxes then due and payable by it (whether or not shown as due on such returns but after
taking into account any valid extensions), except (a) taxes that are being contested in good faith
by appropriate proceedings and for which Holdings, the Borrower, such Subsidiary or such Affiliated
Guarantor, as applicable, shall have set aside on its books adequate reserves and (b) immaterial
taxes so long as no material asset or portion of Mortgaged Property of Holdings, the Borrower, any
Subsidiary or any Affiliated Guarantor is in jeopardy of being seized, levied upon or forfeited.
The Borrower does not intend to treat the Loans and the Letters of Credit and the related
transactions contemplated hereby as being a “reportable transaction” and has not otherwise engaged
in any “listed transaction”(within the meaning of Treasury Regulation Section 1.6 011-4 of the
Code).

          3.15. No Material Misstatements. No information, report, financial statement, agreement,
documentary condition precedent, exhibit or schedule furnished by or on behalf of Holdings or the
Borrower to the Administrative Agent or any Lender in connection with the negotiation of any Loan
Document or included therein or delivered pursuant thereto contained as of the date of such
statement any material misstatement of fact or omitted to state any material fact necessary to make
the statements therein, in the light of the circumstances under which they were made, not
misleading when taken as a whole; provided that to the extent any such information, report,
financial statement, exhibit or schedule was based upon or constitutes a forecast or projection,
each of Holdings and the Borrower represents only that it acted in good faith and utilized
reasonable assumptions (based upon accounting principles consistent with the historical audited
financial statements of Holdings) and due care in the preparation of such information, report,
financial statement, exhibit or schedule (it being recognized that actual results are subject to
uncertainties and contingencies which may be beyond the Borrower’s control).

          3.16. Employee Benefit Plans. No ERISA Event has occurred or is reasonably expected to occur
that, when taken together with all other such ERISA Events, would reasonably be expected to result
in material liability of the Borrower or any of its ERISA Affiliates. Neither the Borrower nor any
of its ERISA Affiliates has nor has ever sponsored, maintained, contributed to or had any
obligation or liability with respect to any Plan subject to Title IV of ERISA, nor does the
Borrower nor any ERISA Affiliate have any present intention to sponsor, maintain, contribute or
have any obligation or liability with respect to any Plan subject to Title IV of ERISA.

          3.17. Environmental Matters. (a) Except as set forth in Schedule 3.17 and except with
respect to any other matters that, individually or in the aggregate, would not

50

 

reasonably be expected to result in Holdings, the Borrower, any of the Subsidiaries or any of the
Affiliated Guarantors incurring material Environmental Liabilities, each of Holdings, the
Borrower, the Subsidiaries and the Affiliated Guarantors is and has been in compliance with any
Environmental Law, which compliance includes obtaining, maintaining and complying with any permit,
license or other approval required under any Environmental Law for any of their operations.

          (b) Except as set forth in Schedule 3.17 and except with respect to any other matters that,
individually or in the aggregate, would not reasonably be expected to result in Holdings, the
Borrower, any of the Subsidiaries or any of the Affiliated Guarantors incurring material
Environmental Liabilities (i) none of Holdings, the Borrower or any Subsidiary or any of the
Affiliated Guarantors has contractually assumed any Environmental Liability of any Person, (ii) has
received, or to the actual knowledge of Holdings, the Borrower and the Affiliated Guarantors,
anticipates receiving, written notice of any claim, order, agreement, or investigation with respect
to any Environmental Liability or (iii) knows of any basis for any claim with respect to any
Environmental Liability against or with respect to Holdings, the Borrower, any Subsidiary or any
Affiliated Guarantor.

          (c) No Lien under Environmental Laws has attached to any real property, and to the
knowledge of Holdings, the Borrower and the Affiliated Guarantors, no facts, circumstances or
conditions exist that could reasonably be expected to result in any such Lien attaching to any
such real property.

          (d) Except as disclosed on Schedule 3.17, neither the filing of the Chapter 11 Cases nor the
consummation of the transaction contemplated under this Agreement require the consent of or filing
with any Governmental Authority under Environmental Law, and, except as disclosed on Schedule 3.17,
none of the real property assets are located in New Jersey, Indiana, or Connecticut.

          (e) Each of Holdings, the Borrower, the Subsidiaries and the Affiliated Guarantors has
made available to Lender copies of all existing environmental reports, reviews and audits and
all documents pertaining to actual or potential Environmental Liability and has provided to
Lender copies of all material environmental reports, including any “Phase I environmental site
assessments”, relating to any real property, in each case to the extent such reports, reviews,
audits and documents are in their possession, custody or control.

          (f) None of the items disclosed on any part of Schedule 3.17, together with all other
conditions that might give rise to Environmental Liabilities, would reasonably be expected to
result in Holdings, the Borrower, any of the Subsidiaries or any of the Affiliated Guarantors
incurring such liabilities in excess of $5,000,000 in the aggregate.

          3.18. Insurance. Schedule 3.18 sets forth a true, complete and correct description of all
insurance maintained by the Borrower, the Affiliated Guarantors and the Subsidiaries or by
Columbia Sussex for the Borrower, the Subsidiaries and the Affiliated Guarantors as of the
Closing Date. As of such date, all premiums have been duly paid to the extent due. The Borrower,
the Subsidiaries and the Affiliated Guarantors have insurance in such amounts and covering such
risks and liabilities as are in accordance with normal industry practice.

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          3.19. Security Documents. The Guarantee and Collateral Agreement, upon execution and delivery
thereof by the parties thereto and to the extent set forth in the Orders, will be effective to
create in favor of the Collateral Agent, for the benefit of the Secured Parties, a legal, valid and
enforceable first priority (or in the case of the Liens granted by Tropicana Las Vegas and its
Subsidiaries a junior priority subject only to the Existing Las Vegas Liens (and other Liens to
which the Existing Las Vegas Liens are subject or which are permitted to exist)) security interest
in the Collateral (as defined in the Guarantee and Collateral Agreement) (or certificates or notes,
as applicable, presenting such Pledged Collateral) and the proceeds thereof except as
enforceability may be limited by applicable Gaming Laws (including licensing, qualification and
suitability approvals required by any Gaming Authority) and the Lien created under Guarantee and
Collateral Agreement shall (subject to the further requirements of relevant Gaming Authorities)
constitute a fully perfected first priority Lien on, and security interest in, all right, title and
interest of the Loan Parties in such Collateral, in each case prior and superior in right to any
other Person (except with respect to (A) post petition Liens expressly permitted under Section
6.02, (B) the Carve-Out and (C) Liens having priority by operation of law, (D) the Existing Las
Vegas Liens and existing Liens or other Liens permitted to exist senior thereto).

          3.20. Location of Real Property and Leased Premises. (a)
 Schedule 3.20(a) lists completely and correctly as of the Closing Date all real property owned by
the Borrower, the Subsidiaries and the Affiliated Guarantors and the addresses thereof. The
Borrower, the Subsidiaries and the Affiliated Guarantors own in fee all the real property set
forth on Schedule 3.20(a).

          (b) Schedule 3.20(b) lists completely and correctly as of the Closing Date all real property
leased by the Borrower, the Subsidiaries and the Affiliated Guarantors and the addresses thereof.
The Borrower, the Subsidiaries and the Affiliated Guarantors have valid leases in all the real
property set forth on Schedule 3.20(b), except as noted thereon.

          (c) Schedule 3.20(c) lists completely and correctly as of the Closing Date all owned or leased
ships and vessels (to the extent not listed on Schedules 3.20(a) or 3.20(b)) of the Borrower, the
Subsidiaries and the Affiliated Guarantors and the location thereof. The Borrower, the Subsidiaries
and the Affiliated Guarantors own in fee or have valid leases on the properties set forth on
Schedule 3.20(c).

          3.21. Labor Matters. As of the date hereof and the Closing Date, there are no strikes or
lockouts against Holdings, the Borrower, any Subsidiary or any Affiliated Guarantor pending or, to
the actual knowledge of Holdings or the Borrower, threatened. The hours worked by and payments made
to employees of Holdings, the Borrower, the Subsidiaries and the Affiliated Guarantors have not
been in violation of the Fair Labor Standards Act or any other applicable Federal, state, local or
foreign law dealing with such matters that would reasonably be expected to have a Material Adverse
Effect. All payments due from Holdings, the Borrower, any Subsidiary or any Affiliated Guarantor on
account of wages and employee health and welfare insurance and other benefits that would reasonably
be expected to have a Material Adverse Effect if not paid, have been paid or accrued as a liability
on the books of Holdings, the Borrower, such Subsidiary or such Affiliated Guarantor.

          3.22. Sanctioned Persons. Patriot Act. (a) (i) The Borrower will not directly or indirectly
use the proceeds of the Loans or the Letters of Credit or otherwise make available such
proceeds to any Person in violation of the U.S. sanctions administered by the Office of

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Foreign Assets Control of the U.S. Treasury Department (“OFAC”); and (ii) none of Holdings, the
Borrower, any Subsidiary or any Affiliated Guarantor, nor any director, officer, senior manager
or Affiliate of Holdings, the Borrower, any Subsidiary or any Affiliated Guarantor is (A) a
Person included in the Specially Designated Nationals and Blocked Persons List, as published from
time to time by OFAC, or (B) currently subject to any U.S. sanctions administered by OFAC;
provided, however, that the scope of this representation and warranty is limited to published
U.S. regulatory requirements as at the date such representation is given.

          (b) To the extent applicable, each Loan Party is in compliance, in all material respects, with
the (i) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations
of the Untied States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any other
enabling legislation or executive order relating thereto and (ii) Uniting and Strengthening
America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot
Act of 2001). No part of the proceeds of the Loans will be used, directly or indirectly, for any
payments to any governmental official or employee, political party, official of a political party,
candidate for political office, or anyone else acting in an official capacity, in order to obtain,
retain or direct business or obtain any improper advantage, in violation of the United States
Foreign Corrupt Practices Act of 1977, as amended.

          3.23. Casino Leases. As of the Closing Date and except as set forth in Schedule 3.23 and
subject to the Orders and the LandCo Cash Collateral Order, giving effect to the Loans made on the
Closing Date and the execution of the Loan Documents, in the opinion of the Borrower and Holdings,
no default on behalf of Holdings, the Borrower or the Subsidiaries exists under any of the Casino
Leases which, taking into account the pendency of the Chapter 11 Cases, entitles the landlords
thereunder to immediately terminate the same, including without limitation, as a result of the
granting of a leasehold deed of trust or leasehold mortgage to the Administrative Agent.

          3.24. Reorganization Matters. (a) The Chapter 11 Cases were commenced on the Petition Date
in accordance with applicable law and proper notice thereof and proper notice of the hearings to
consider entry of the Interim Order has been given and proper notice of the hearing to consider
entry of the Final Order will be given.

          (b) After the entry of the Interim Order and the Final Order, as applicable, the Obligations
will constitute allowed administrative expense claims in each of the Chapter 11 Cases (other than
Chapter 11 Cases relating to the LandCo Subsidiaries) having priority over all administrative
expense claims and unsecured claims against Borrower and each of the Guarantors now existing or
hereafter arising, of any kind whatsoever, to the extent provided and as more fully set forth in
the Interim Order and the Final Order.

          (c) The Interim Order (with respect to the Interim Period) or the Final Order (with respect
to the period following the Interim Period), as the case may be, is in full force and effect and
has not been reversed, stayed, modified, varied or amended without the consent of the Required
Lenders.

          (d) After the entry of the Interim Order (with respect to the Interim Period) or the Final
Order (with respect to the period following the Interim Period), notwithstanding the provisions
of Section 362 of the Bankruptcy Code, upon the Maturity Date (whether by acceleration or
otherwise) of any of the Obligations, the Agents and Lenders shall be entitled to

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immediate payment of such Obligations and to enforce the remedies provided for hereunder and under
the other Loan Documents, without further application to or order by the Bankruptcy Court, as more
fully set forth in and subject to the Interim Order and the Final Order.

ARTICLE IV

Conditions of Lending

The obligations of the Lenders to make Loans and of the Administrative Agent to procure the
issuance of Letters of Credit hereunder are subject to the satisfaction of the following
conditions:

          4.01. All Credit Events. On the date of each Borrowing (other than a conversion or a
continuation of a Borrowing) and on the date of each issuance, amendment, extension or
renewal of a Letter of Credit (each such event being called a “Credit Event”):

          (a) The Administrative Agent shall have received a Borrowing Request as required by Section
2.03 or, in the case of the issuance, amendment, extension or renewal of a Letter of Credit, the
Administrative Agent shall have received an Issuance Notice requesting the issuance, amendment,
extension or renewal of such Letter of Credit as required by Section 2.23.

          (b) The representations and warranties set forth in ARTICLE III and in each other Loan
Document shall be true and correct in all respects on and as of the date of such Credit Event with
the same effect as though made on and as of such date, except to the extent such representations
and warranties expressly relate to an earlier date.

          (c) At the time of and immediately after such Credit Event, no event shall have occurred and
be continuing or would result from the consummation of the applicable Credit Event that would
constitute a Default or an Event of Default.

          (d) In case of an issuance, amendment, extension or renewal of Letter of Credit, after such
issuance, amendment, extension or renewal, the L/C Usage shall not exceed the L/C Sublimit.

          (e) Each Credit Event shall be deemed to constitute a representation and warranty by the
Borrower and Holdings on the date of such Credit Event as to the matters specified in Sections
2.04, 4.01(b) and 4.01(c).

          (f) With respect to any Credit Event (i) during the Interim Period, the aggregate amount of
Loans being made available shall not exceed the Interim Sublimit and (ii) following the Interim
Period, the Bankruptcy Court shall have entered the Final Order by no later than 30 days (which
date may be extended for up to an additional 15 days in the sole discretion of the Administrative
Agent) after the Petition Date, in form and substance satisfactory to Administrative Agent (A)
authorizing and approving the Credit Facilities, the Loan Documents and the transactions
contemplated hereby and by the other Loan Documents, including, without limitation, the granting of
the superpriority status, security interests and liens, and the payment of all fees, referred to
herein, in any other Loan Document and in the Fee Letter and (B) lifting the automatic stay to
permit the Loan Parties to perform their obligations and the Agents and the Lenders to exercise
their rights and remedies with respect to the Credit Facilities, this Agreement

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and the other Loan Documents, which Final Order shall be in full force and effect, shall not have
been reversed, vacated or stayed and shall not have been amended, supplemented or otherwise
modified without the prior written consent of Administrative Agent and Required Lenders. All orders
entered by the Bankruptcy Court (other than the orders entered by the Bankruptcy Court under the
Chapter 11 Cases relating to the LandCo Subsidiaries) pertaining to cash management, cash
collateral and adequate protection shall and all other motions and documents filed or to be filed
with, and submitted to, the Bankruptcy Court in connection therewith shall be in form and substance
reasonably satisfactory to Administrative Agent. The administrative agent under the Existing Senior
Credit Agreement and the lenders thereunder shall not have objected to the entry of the Final Order
(or if they have objected, shall have agreed to withdraw such objection); and pursuant to the terms
of the Final Order, the automatic stay shall have been modified to permit the creation and
perfection of the Secured Parties’ Liens and security interests and shall have been automatically
vacated to permit enforcement of Secured Parties’ rights and remedies under this Agreement and the
other Loan Documents.

          4.02. First Credit Event. On the Closing Date:

          (a) Orders and Other Bankruptcy Court Filings; First Day
Orders; Automatic Stay. (i) The Bankruptcy Court shall have entered the Interim Order by no later
than 5 days after the Petition Date, in form and substance satisfactory to Administrative Agent
and Collateral Agent (A) authorizing and approving the Credit Facilities, the Loan Documents and
the transactions contemplated hereby and by the other Loan Documents, including, without
limitation, the granting of the superpriority status, security interests and liens, and the
payment of all fees, referred to herein, in any other Loan Document and in the Fee Letter and (B)
lifting the automatic stay to permit the Loan Parties to perform their obligations and the Agents
and the Lenders to exercise their rights and remedies with respect to the Credit Facilities, this
Agreement and the other Loan Documents, which Interim Order shall be in full force and effect,
shall not have been reversed, vacated or stayed and shall not have been amended, supplemented or
otherwise modified without the prior written consent of Administrative Agent and Required Lenders.
All orders entered by the Bankruptcy Court pertaining to cash management and adequate protection
and all other motions and documents filed or to be filed with, and submitted to, the Bankruptcy
Court in connection therewith shall be in form and substance satisfactory to Administrative Agent
in its sole discretion. The administrative agent under the Existing Senior Credit Agreement and
the lenders thereunder shall not have objected to the entry of the Interim Order (or if they have
objected, shall have agreed to withdraw such objection).

               (ii) All First Day Orders related to cash management and the LandCo Cash Collateral
Order entered in the Chapter 11 Cases shall be in form, scope and substance reasonably
satisfactory to Administrative Agent.

          (b) All material legal matters incident to the Loan Documents shall be reasonably
satisfactory to the Lenders and to the Administrative Agent.

          (c) The Administrative Agent shall have received (i) a copy of the certificate or articles of
incorporation, including all amendments thereto, of each Loan Party, certified as of a recent date
by the Secretary of State of the state of its organization, and a certificate as to the good
standing of each Loan Party as of a recent date, from such Secretary of State; (ii) a certificate
of the Secretary or Assistant Secretary of each Loan Party dated the Closing Date and

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certifying (A) that attached thereto is a true and complete copy of the by-laws of such Loan Party
as in effect on the Closing Date and at all times since a date prior to the date of the resolutions
described in clause (B) below, (B) that attached thereto is a true and complete copy of resolutions
duly adopted by the Board of Directors of such Loan Party authorizing the execution, delivery and
performance of the Loan Documents to which such Person is a party and, in the case of the Borrower,
the borrowings hereunder, and that such resolutions have not been modified, rescinded or amended
and are in full force and effect, (C) that the certificate or articles of incorporation of such
Loan Party have not been amended since the date of the last amendment thereto shown on the
certificate of good standing furnished pursuant to clause (i) above, and (D) as to the incumbency
and specimen signature of each officer executing any Loan Document or any other document delivered
in connection herewith on behalf of such Loan Party; and (iii) a certificate of another officer as
to the incumbency and specimen signature of the Secretary or Assistant Secretary executing the
certificate pursuant to clause (ii) above.

          (d) The Administrative Agent shall have received a certificate, dated the Closing Date and
signed by a Financial Officer of the Borrower, confirming compliance with the provisions of
Sections 2.04, 4.01(b) and 4.01(c).

          (e) The Administrative Agent shall have received all Fees and other amounts due and payable on
or prior to the Closing Date, (or be reasonably satisfied that all Fees and other amounts due and
payable will be paid on the Closing Date from the proceeds of the Loans), including to the extent
invoiced, reimbursement or payment of all out-of-pocket expenses required to be reimbursed or paid
by the Borrower hereunder or under any other Loan Document.

          (f) Subject to Section 5.16, the Security Documents shall have been duly executed by each
Loan Party that is to be a party thereto and shall be in full force and effect on the Closing
Date. The Collateral Agent on behalf of the Secured Parties shall have a security interest on
the Closing Date in the Collateral of the type and priority described in the Security Documents
and the Orders (but subject to such Liens permitted under Section 6.02).

          (g) The Collateral Agent shall have received the results of a search of the Uniform Commercial
Code filings (or equivalent filings) made with respect to the Loan Parties in the states (or other
jurisdictions) of formation of such Persons, in which the chief executive office of each such
Person is located and in the other jurisdictions in which such Persons maintain property together
with copies of the financing statements (or similar documents) disclosed by such search, and
accompanied by evidence reasonably satisfactory to the Collateral Agent that the Liens indicated in
any such financing statement (or similar document) would be permitted under Section 6.02 or have
been or will be contemporaneously released or terminated.

          (h) The Lenders shall have received (i) the financial statements and opinion referred to in
Section 3.05 and (ii) the Projections in form and substance reasonably satisfactory to it.

          (i) The Administrative Agent shall have received a certificate in form and substance
satisfactory to it, dated the Closing Date and signed by a Financial Officer of the Borrower,
confirming that the Consolidated EBITDA of Holdings, the Borrower, the Affiliated Guarantors and
their Subsidiaries, for the last twelve month period ending on March 31, 2008, calculated on a
pro forma basis is at least $85,000,000.

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          (j) The Administrative Agent shall have received copies of (i) the Casino Services
Agreements, (ii) the Services Agreements and (iii) the Negative Pledge Agreements.

          (k) The Lenders shall have received, to the extent requested, all documentation and other
information required by regulatory authorities under applicable “know your customer” and
anti-money laundering rules and regulations, including the USA PATRIOT Act.

          (l) All applications, motions and other documents filed in connection with the Credit
Facilities and all First Day Orders shall be in form and substance reasonably satisfactory to the
Administrative Agent and the Required Lenders.

          (m) The Administrative Agent shall have received from Holdings a Cash Flow Forecast, in
form and substance reasonably acceptable to, and approved by, the Administrative Agent in its
reasonable discretion.

ARTICLE V

Affirmative Covenants

          Each of Holdings, the Borrower (other than with respect to Section 5.18) and each of the
Affiliated Guarantors (with respect to Sections 5.14, and 5.18 and as to other matters within its
control) covenants and agrees with each Lender that so long as this Agreement shall remain in
effect and until the Commitments have been terminated and the principal of and interest on each
Loan, all Fees and all other expenses or amounts payable under any Loan Document shall have been
paid in full and all Letters of Credit have been canceled or have expired (or have been Cash
Collateralized in a manner satisfactory to the Administrative Agent) and all amounts drawn
thereunder have been reimbursed in full, unless the Required Lenders shall otherwise consent in
writing, it will and each of Holdings and the Borrower will cause each of the Subsidiaries (other
than the LandCo Subsidiaries) to:

          5.01. Existence; Compliance with Laws; Businesses and Properties. (a) Do or cause to be done
all things necessary to preserve, renew and keep in full force and effect its legal existence,
except as otherwise expressly permitted under Section 6.04.

          (b) Do or cause to be done all things necessary to obtain, preserve, renew, extend and keep
in full force and effect the licenses, permits, franchises, authorizations, patents, copyrights,
trademarks and trade names material to the conduct of its business; maintain and operate such
business as a Permitted Business; comply in all material respects with all applicable laws, rules,
regulations and decrees and orders of any Gaming Authorities or Governmental Authority, whether
now in effect or hereafter enacted; and except as permitted under Section 6.04, at all times
maintain and preserve all property material to the conduct of such business and keep such property
in good repair, working order and condition (ordinary wear and tear excepted) and from time to
time make, or cause to be made, all needful and proper repairs, renewals, additions, improvements
and replacements thereto necessary in order that the business carried on in connection therewith
may be properly conducted at all times.

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          5.02. Insurance. (a) Keep its insurable Mortgaged Properties adequately insured at all times
by financially sound and reputable insurers; maintain such other insurance, to such extent and
against such risks, including fire and other risks insured against by extended coverage, as is
customary with companies in the same or similar businesses operating in the same or similar
locations, including public liability insurance against claims for personal injury or death or
property damage occurring upon, in, about or in connection with the use of any properties owned,
occupied or controlled by it; and maintain such other insurance as may be required by law.

          (b) Promptly following the Administrative Agent’s request, cause all such policies covering
any Collateral (except public liability, third party, product liability and business interruption)
to be endorsed or otherwise amended to include a customary lender’s loss payable endorsement, in
form and substance reasonably satisfactory to the Administrative Agent and the Collateral Agent,
which endorsement shall provide that, from and after the Closing Date, if the insurance carrier
shall have received written notice from the Administrative Agent or the Collateral Agent of the
occurrence of an Event of Default, the insurance carrier shall pay all proceeds otherwise payable
to the Borrower or the Loan Parties under such policies directly to the Collateral Agent; cause all
such policies to provide that neither the Borrower, the Administrative Agent, the Collateral Agent
nor any other party shall be a coinsurer thereunder and, to the extent customarily available at a
commercially reasonable cost, to contain a “Replacement Cost Endorsement”, without any deduction
for depreciation, and such other provisions as the Administrative Agent or the Collateral Agent may
reasonably require from time to time to protect their interests; deliver certificates of each such
policies (and if requested, certified copies of all such policies) to the Collateral Agent; cause
each such policy, to the extent customarily available at a commercially reasonable cost, to provide
that it shall not be canceled, modified or not renewed (i) by reason of nonpayment of premium upon
not less than 10 days’ prior written notice thereof by the insurer to the Administrative Agent and
the Collateral Agent (giving the Administrative Agent and the Collateral Agent the right to cure
defaults in the payment of premiums) or (ii) for any other reason upon not less than 30 days’ prior
written notice thereof by the insurer to the Administrative Agent and the Collateral Agent; deliver
to the Administrative Agent and the Collateral Agent, prior to the cancellation, modification or
non-renewal of any such policy of insurance, a copy of a renewal or replacement policy (or other
evidence of renewal of a policy previously delivered to the Administrative Agent and the Collateral
Agent) together with evidence reasonably satisfactory to the Administrative Agent and the
Collateral Agent of payment of the premium therefor.

          (c) If at any time the area in which the Premises (as defined in the Mortgages) are located is
designated (i) a “flood hazard area” in any Flood Insurance Rate Map published by the Federal
Emergency Management Agency (or any successor agency), obtain flood insurance in such total amount
as the Administrative Agent, the Collateral Agent or the Required Lenders may from time to time
reasonably require, and otherwise comply with the National Flood Insurance Program as set forth in
the Flood Disaster Protection Act of 1973, as it may be amended from time to time, or (ii) a “Zone
1” area, obtain earthquake insurance in such total amount as the Administrative Agent, the
Collateral Agent or the Required Lenders may from time to time require.

          (d) With respect to any Mortgaged Property, carry and maintain comprehensive general liability
insurance including the “broad form CGL endorsement” and coverage on an occurrence basis against
claims made for personal injury (including bodily injury,

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death and property damage) and umbrella liability insurance against any and all claims, in no
event for a combined single limit of less than $25,000,000, naming the Collateral Agent as an
additional insured, on forms reasonably satisfactory to the Collateral Agent.

          (e) Notify the Administrative Agent and the Collateral Agent promptly whenever any separate
insurance concurrent in form or contributing in the event of loss with that required to be
maintained under this Section 5.02 is taken out by any Loan Party; and promptly deliver to the
Administrative Agent and the Collateral Agent a duplicate original copy of such policy or
policies.

          (f) Use commercially reasonable efforts to obtain an endorsement for the benefit of the
Lenders with respect to the title or other insurance policy issued to Tropicana Casinos (or any of
its affiliates) with respect to the lease of MontBleu Hotel and Casino (including with respect to
any defaults thereunder) or, if such endorsement cannot be obtained without undue burden or
expense, the implementation of arrangements reasonably satisfactory to the Administrative Agent
with respect to the maintenance of such policy, the agreement on the part of the insured
thereunder to enforce its rights thereunder and the use of any proceeds therefrom (which may
include the prepayment of Term Loans).

          5.03. Payment of Post-petition obligations and Taxes. Pay its Indebtedness and other
obligations that arise after the Petition Date promptly and in accordance with their terms and pay
and discharge promptly when due all material Taxes (other than Taxes relating to pre-petition
periods), assessments and governmental charges or levies imposed after the Petition Date upon it
or upon its income or profits or in respect of its property, before the same shall become
delinquent or in default, as well as all lawful claims for labor, materials and supplies or
otherwise that, if unpaid, might give rise to a Lien upon such properties or any part thereof;
provided, however, that such payment and discharge shall not be required with respect to any such
Tax, assessment, charge, levy or claim so long as the validity or amount thereof shall be
diligently contested in good faith by appropriate proceedings and the Borrower shall have set
aside on its books adequate reserves with respect thereto in accordance with GAAP and such contest
operates to suspend collection of the contested obligation, tax, assessment or charge and
enforcement of a Lien and, in the case of a Mortgaged Property, there is no risk of forfeiture of
such property.

          5.04. Financial Statements, Reports, etc. In the case of the Borrower, furnish to the
Administrative Agent, which shall promptly furnish to each Lender:

          (a) within 120 days after the end of each fiscal year, its consolidated and consolidating
balance sheet and related statements of income, stockholders’ equity and cash flows showing the
financial condition of the Borrower and its consolidated Subsidiaries and the Affiliated Guarantors
as of the close of such fiscal year and the results of its operations and the operations of such
Subsidiaries and the Affiliated Guarantors during such year (including a schedule setting forth, on
a property by property basis, the income statement, balance sheet and cash flow statements for each
of the hotel, casino and resort properties owned or leased by the Borrower, the Subsidiaries or the
Affiliated Guarantors), together with comparative figures for the immediately preceding fiscal
year, all audited by Ernst & Young LLP or other independent public accountants of recognized
national standing and accompanied by an opinion of such accountants to the effect that such
consolidated financial statements fairly present the financial condition and results of operations
of the Borrower, its consolidated Subsidiaries and the

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Affiliated Guarantors, on a consolidated and consolidating basis or Columbia Sussex and its
subsidiaries on a consolidated basis, as applicable, in accordance with GAAP consistently
applied;

          (b) within 45 days after the end of each fiscal quarter of each fiscal year (or 60 days, in
the case of the fiscal quarter ending June 30, 2008), its consolidated and consolidating balance
sheet and related statements of income, stockholders’ equity and cash flows showing the financial
condition of the Borrower and its consolidated Subsidiaries and the Affiliated Guarantors as of the
close of such fiscal quarter and the results of its operations and the operations of such
Subsidiaries and such Affiliated Guarantors during such fiscal quarter and the then elapsed portion
of the fiscal year, together with comparative figures for the same periods in the immediately
preceding fiscal year, all certified by one of the Financial Officers of the Borrower, as fairly
presenting the financial condition and results of operations of the Borrower, its consolidated
Subsidiaries and the Affiliated Guarantors, on a consolidated basis in accordance with GAAP
consistently applied, subject to normal year-end audit adjustments;

          (c) concurrently with any delivery of financial statements or Approved Cash Flow Forecast
under Section 5.04(a), 5.04(b) and 5.04(d)(i), a certificate of the accounting firm (in the case of
Section 5.04(a)) (to the extent that the accounting firm is willing to provide such certificate in
accordance with its customary business practice) or Financial Officer (in the case of Section
5.04(b) and 5.04(d)) opining on or certifying such statements or Approved Cash Flow Forecast (which
certificate, when furnished by an accounting firm, may be limited to accounting matters and
disclaim responsibility for legal interpretations) (i) certifying that no Event of Default or
Default has occurred or, if such an Event of Default or Default has occurred, specifying the nature
and extent thereof and any corrective action taken or proposed to be taken with respect thereto and
(ii) in the cases of the certificates delivered with respect to Sections 5.04(a) and 5.04(b)
setting forth computations in reasonable detail satisfactory to the Administrative Agent
demonstrating compliance with the covenants contained in Sections 6.09, 6.10 and 6.11;

          (d) (i) as soon as available and in any event at least one week prior to the commencement of
each month, a revised Cash Flow Forecast, (A) setting forth in comparative form the actual cash
receipts and cash disbursements for the prior week and the variance from the projections in the
Cash Flow Forecast for such prior week, (B) a reasonably detailed oral or written explanation of
any such variance and, after 60 days after the Closing Date, a reasonably detailed written
explanation of any such variance, and (C) setting forth the cash flow forecast for an additional
week; provided that the Cash Flow Forecasts delivered pursuant to clause 5.04(d)(i) shall
be in substance reasonably satisfactory to, and approved by, the Administrative Agent in its
reasonable discretion (an “Approved Cash Flow Forecast”); provided further, that
the Borrower shall use reasonable efforts to prepare the financial statements referred to in clause
(b) of the definition of “Cash Flow Forecast” on a consolidating basis and to include such
consolidating forecasts in the revised Cash Flow Forecasts which are to be delivered under this
Section 5.04(d) as soon as possible and in any event from the date which is 70 days following the
Closing Date (or such other later date agreed to by the Administrative Agent) and (ii) on or prior
to the Thursday of each week (or if such day is not a Business Day, Friday of such week, or if
neither Thursday or Friday is a Business Day, Wednesday of such week), an updated Cash Flow
Forecast for the succeeding 13-week period;

          (e) within 90 days after the beginning of each fiscal year of the Borrower, a consolidated
projection for such fiscal year (showing revenue, EBITDA, capital expenditures for

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maintenance and capital expenditures for expansion, each for such period and on a per property
basis) and, promptly when available, any significant revisions of such projections;

          (f) promptly after the same become publicly available, copies of all periodic and other
reports, proxy statements and other materials filed by Holdings, the Borrower, any Subsidiary or
any Affiliated Guarantor with the Securities and Exchange Commission, or any Governmental Authority
succeeding to any or all of the functions of said Commission, or with any national securities
exchange, or distributed to its shareholders, as the case may be;

          (g) promptly after the receipt thereof by Holdings, the Borrower, the Affiliated Guarantors or
any of their respective Subsidiaries, a copy of any final “management letter” received by
any such Person from its certified public accountants relating to any deficiency or weakness in
accounting practices or in reported results of Holdings, the Borrower, any Subsidiary or any
Affiliated Guarantor and the management’s response thereto to the extent such accountants are
willing to provide such letters;

          (h) promptly after request by the Administrative Agent, to the extent not prohibited by
applicable law or regulation, copies of the Nevada “Regulation 6.090 Report” and “6-A
Report” (until the effective date of the repeal of Regulation 6-A), copies of any other report
required by any Gaming Authority, and copies of any written communication to Holdings, the
Borrower, the Subsidiaries or the Affiliated Guarantors from any Gaming Authority advising it of a
violation of, or non-compliance with, any Gaming Law by Holdings, the Borrower, the Subsidiaries or
the Affiliated Guarantors where such violation or non-compliance could reasonably be expected to
result in fines in excess of $100,000 or a License Revocation;

          (i) promptly after the request by the Administrative Agent on its own behalf or on behalf of
any Lender, all documentation and other information that such Lender reasonably requests in order
to comply with its ongoing obligations under applicable “know your customer” and anti-money
laundering rules and regulations, including the USA PATRIOT Act;

          (j) in the event that the Borrower or any of its ERISA Affiliates intend to establish,
sponsor, maintain or contribute or have any obligation or liability with respect to any Plan
subject to Title IV of ERISA, Borrower shall promptly, and in any event within 10 Business Days
prior to establishing, maintaining or contributing, as applicable, to such Plan, inform the
Administrative Agent of such intention. Neither the Borrower nor any of its ERISA Affiliates will
establish, sponsor, maintain or contribute to any Plan that would result in any obligation or
liability that would result in, or could reasonably be expected to result in, a Material Adverse
Effect;

          (k) promptly following any request by the Administrative Agent on its own behalf or on behalf
of a Lender, on and after the effectiveness of the Pension Act, copies of (i) any documents
described in Section 101(k)(l) of ERISA that the Borrower or any of its ERISA Affiliates may
request with respect to any Multiemployer Plan and (ii) any notices described in Section 101(l)(1)
of ERISA that the Borrower or any of its ERISA Affiliates may request with respect to any Plan or
Multiemployer Plan; provided that if the Borrower or any of its ERISA Affiliates have not
requested such documents or notices from the administrator or sponsor of the applicable Plan or
Multiemployer Plan, the Borrower or its ERISA Affiliates shall promptly make a request for such
documents or notices from the such administrator or sponsor and shall provide copies of such
documents and notices promptly after receipt thereof; and

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          (l) promptly, from time to time, after reasonable notice is given, such other information
regarding the operations, business affairs and financial condition of Holdings, the Borrower, any
Subsidiary or any Affiliated Guarantor, or compliance with the terms of any Loan Document, as the
Administrative Agent may request on its own behalf or on behalf of any Lender.

          5.05. Litigation and Other Notices. Furnish to the Administrative Agent (who shall promptly
notify the Lenders) prompt written notice after obtaining knowledge thereof of the following:

          (a) any Event of Default or Default, specifying the nature and extent thereof and the
corrective action (if any) taken or proposed to be taken with respect thereto;

          (b) the filing or commencement of any action, suit or proceeding, whether at law or in equity
or by or before any Governmental Authority, against the Borrower or any Affiliate thereof that
could reasonably be expected to result in a Material Adverse Effect;

          (c) the occurrence of any ERISA Event that, alone or together with any other ERISA Events
that have occurred, could reasonably be expected to result in liability of the Borrower, the
Subsidiaries and the Affiliated Guarantors in an aggregate amount exceeding $10,000,000;

          (d) any other development that has resulted in, or would reasonably be expected to
result in, a Material Adverse Effect; and

          (e) any notice of change in the Borrower’s corporate rating by S&P, in the Borrower’s
corporate family rating by Moody’s or in the ratings of the Credit Facilities by S&P or Moody’s,
or any notice from either such agency indicating its intent to effect such a change or to place
the Borrower or the Credit Facilities on a “CreditWatch” or “WatchList” or any
similar list, in each case with negative implications, or its cessation of, or its intent to
cease, rating the Borrower or the Credit Facilities.

          5.06. Information Regarding Collateral. (a) Furnish to the Administrative Agent prompt written
notice of any change (i) in any Loan Party’s corporate name, (ii) in the jurisdiction of
organization or formation of any Loan Party, (iii) in any Loan Party’s identity or corporate
structure or (iv) in any Loan Party’s Federal Taxpayer Identification Number. Holdings and the
Borrower agree not to effect or permit any change referred to in the preceding sentence unless all
filings have been made under the Uniform Commercial Code or otherwise that are required in order
for the Collateral Agent to continue at all times following such change to have a valid, legal and
perfected security interest in all the Collateral secured by it under any Security Document.
Holdings and the Borrower also agree promptly to notify the Administrative Agent if any material
portion of the Collateral is damaged or destroyed.

          (b) In the case of the Borrower, each year, at the time of delivery of the annual financial
statements with respect to the preceding fiscal year pursuant to Section 5.04(a), deliver to the
Administrative Agent upon its reasonable request a certificate of a Financial Officer setting forth
the information required pursuant to Section 2 of the Perfection Certificate or confirming that
there has been no change in such information since the date of the Perfection Certificate delivered
pursuant to Section 5.14(i) or the date of the most recent certificate delivered pursuant to this
Section 5.06.

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          5.07. Reorganization Matters. (a) The Borrower will submit to the Administrative Agent all
pleadings, motions, applications and judicial information, in each case filed by or on behalf of
the Borrower or any Guarantor with the Bankruptcy Court or provided by or to the Trustee (or any
information officer, examiner or interim receiver, if any, appointed in any Chapter 11 Case) or
any Committee, at the time such document is filed with the Bankruptcy Court, or provided by or, to
the Trustee (or any information officer, monitor or interim receiver, if any, appointed in any
Chapter 11 Case) or any Committee.

          (b) The Loan Parties will use their best efforts to obtain the approval of the Bankruptcy
Court of this Agreement and the other Loan Documents.

          5.08. Maintaining Records; Access to Properties and Inspections; Maintenance of Ratings. (a)
Keep proper books of record and account in which full, true and correct entries in conformity with
GAAP and all requirements of law are made of all dealings and transactions in relation to its
business and activities. Subject to any applicable Gaming Laws, each Loan Party will, and will
cause each of its subsidiaries to, permit any representatives designated by the Administrative
Agent on its own behalf or on behalf of any Lender (being an accountant, auditor, attorney, valuer
or other professional adviser of the Administrative Agent or such Lender), during normal business
hours and upon reasonable notice, to visit and inspect the financial records and the properties of
such Person at reasonable times and as often as reasonably requested (but in no event more than
twice annually unless a Default or Event of Default shall have occurred and be continuing) and to
make extracts from and copies of such financial records, and permit any such representatives
designated by the Administrative Agent (on behalf of itself or any Lender) to discuss the affairs,
finances and condition of such Person with the officers thereof and independent accountants
therefor.

          (b) In the case of Holdings and the Borrower, at the request of the Administrative Agent,
use commercially reasonable efforts to cause the Credit Facilities to be continuously rated by
S&P or Moody’s, or both.

          5.09. Use of Proceeds. Use the proceeds of the Loans and request the issuance of
Letters of Credit only for the purposes specified in Section 2.04.

          5.10. Employee Benefits. (a) Comply in all material respects with the applicable provisions
of ERISA and the Code, solely as it relates to Plans, and (b) furnish to the Administrative Agent
as soon as possible after, and in any event within ten days after any responsible officer of
Holdings, the Borrower or any ERISA Affiliate knows or has reason to know that, any ERISA Event
has occurred that, alone or together with any other ERISA Event could reasonably be expected to
result in liability of Holdings, the Borrower or any ERISA Affiliate in an aggregate amount
exceeding $10,000,000, a statement of a Financial Officer of Holdings or the Borrower setting
forth details as to such ERISA Event and the action, if any, that Holdings or the Borrower
proposes to take with respect thereto.

          5.11. Compliance with Environmental Laws. Comply, and cause all lessees and other Persons
occupying its properties to comply, in all material respects with all Environmental Laws
applicable to its operations and properties; obtain and renew all material environmental permits
necessary for its operations and properties; and conduct any required remedial action in material
compliance with Environmental Laws; provided, however, that none of Holdings, the
Borrower, any Subsidiary or any Affiliated Guarantor shall be required to

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undertake any such remedial action to the extent that its obligation to do so is being contested
in good faith and by proper proceedings and appropriate reserves are being maintained with respect
to such circumstances in accordance with GAAP.

          5.12. Environmental Reporting. (a) Borrower, any Subsidiary or any Affiliated Guarantor shall
give Lender prompt notice (containing reasonable detail) upon obtaining knowledge of any matter
that would reasonably be expected to result in the Borrower, any Subsidiary or any Affiliated
Guarantor incurring Environmental Liabilities in excess of $1,000,000 in the aggregate, and (b) if
(i) notice is provided to Lender under Section 5.12(a), or (ii) a breach of Section 3.16 or
Section 5.11 shall have occurred and be continuing for more than 30 days without Holdings, the
Borrower, any Subsidiary or any Affiliated Guarantor commencing activities reasonably likely to
cure such breach, at the written request of the Required Lenders through the Administrative Agent,
provide to the Lenders within 45 days after such notice or request, at the expense of the Loan
Parties, an environmental site assessment report regarding the matters which are the subject of
such notice or request prepared by an environmental consulting firm reasonably acceptable to the
Administrative Agent and indicating the presence or absence of Hazardous Materials and the
estimated cost of any compliance or remedial action in connection with such notice or breach.

          5.13. Preparation of Environmental Reports. If a Default caused by reason of a breach of
Section 3.16 or Section 5.11 shall have occurred and be continuing for more than 30 days without
Holdings, the Borrower, any Subsidiary or any Affiliated Guarantor commencing activities
reasonably likely to cure such Default, at the written request of the Required Lenders through the
Administrative Agent, provide to the Lenders within 45 days after such request, at the expense of
the Loan Parties, an environmental site assessment report regarding the matters which are the
subject of such Default prepared by an environmental consulting firm reasonably acceptable to the
Administrative Agent and indicating the presence or absence of Hazardous Materials and the
estimated cost of any compliance or remedial action in connection with such Default.

          5.14. Further Assurances. Take the following actions:

          (a) The Borrower shall execute any and all further documents, financing statements,
agreements and instruments, and take all further action (including filing Uniform Commercial Code
and other financing statements, mortgages, ship mortgages and deeds of trust) that may be required
under applicable law, or that the Required Lenders, the Administrative Agent or the Collateral
Agent may reasonably request, in order to effectuate the transactions contemplated by the Loan
Documents and in order to grant, preserve, protect and perfect the validity and first priority of
the security interests created or intended to be created by the Security Documents. In addition,
from time to time, the Borrower will, at its cost and expense, promptly secure the Obligations by
pledging or creating, or causing to be pledged or created, perfected security interests with
respect to such of its assets and properties as the Administrative Agent or the Required Lenders
shall designate (it being understood that it is the intent of the parties that the Obligations
shall be secured by substantially all the assets of the Borrower and the Subsidiary Guarantors
(including real and other properties acquired subsequent to the Closing Date)). Such security
interests and Liens will be created under the Security Documents and other security agreements,
mortgages (including ship mortgages and vessel security agreements), deeds of trust and other
instruments and documents in form and substance reasonably satisfactory to the Collateral Agent,
and the Borrower shall deliver or cause to be delivered to the Lenders all such

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instruments and documents (including legal opinions, title insurance policies and lien searches) as
the Collateral Agent shall reasonably request to evidence compliance with this Section. The
Borrower and the Affiliated Guarantors agree to provide such evidence as the Collateral Agent shall
reasonably request as to the perfection and priority status of each such security interest and
Lien. In furtherance of the foregoing, the Borrower and each of the Affiliated Guarantors will give
prompt notice to the Administrative Agent of the acquisition by it and, in the case of the
Borrower, including the acquisition by any of the subsidiaries, of any real property (or any
interest in real property) or gaming vessel (or any interest in any gaming vessel) having a value
in excess of $2,500,000.

          (b) Upon the formation by any of the Loan Parties of any subsidiary, the Borrower or such
Affiliated Guarantor, where relevant, shall cause the Person so acquired or formed (each an
“Additional Guarantor”), as the case may be to become a Subsidiary Guarantor of the Obligations.
Such Additional Guarantor shall become a Loan Party by executing the Guarantee and Collateral
Agreement and each applicable Security Document in favor of the Collateral Agent. In addition, (i)
such Additional Guarantor shall execute and deliver such agreements and documents as the
Administrative Agent, Collateral Agent or the Required Lenders may reasonably request to grant a
first priority perfected Lien in respect of substantially all of its real and personal property in
favor of the Collateral Agent and the Lenders, and (ii) the Loan Parties owning equity interests in
such Additional Guarantor shall pledge all such equity interests in such Additional Guarantor
(subject to any necessary Gaming Authority approval, which Holdings and the Borrower agree to use
their best efforts to obtain). If any such Additional Guarantor is a debtor in a case under Chapter
11 of the Bankruptcy Code, the Borrower shall obtain an order of the Bankruptcy Court confirming in
such Additional Guarantor’s Chapter 11 Case extension of the terms of the Orders to such Additional
Guarantor as a debtor and a debtor in possession.

          (c) If Evansville ceases to be an Excluded Subsidiary (except as a result of the
consummation of the Evansville Sale), the Borrower shall execute promptly, or cause that its
relevant subsidiary will execute promptly, any and all further documents, financing statements,
agreements and instruments, and take all further action (including filing Uniform Commercial Code
and other financing statements) that may be required under applicable law, or that the Required
Lenders, the Administrative Agent or the Collateral Agent may reasonably request, in order to (i)
pledge the Equity Interest the relevant Loan Parties hold in Evansville in favor of the
Collateral Agent for the benefit of the Secured Parties, (ii) procure that Evansville becomes an
Additional Guarantor under the Loan Documents, grants a Lien on all its assets in favor of the
Collateral Agent for the benefit of the Secured Parties and more generally complies with the
requirements of this Section 5.14 applicable to it, in each case subject to Gaming Authority
approval.

          (d) If Vicksburg ceases to be an Excluded Subsidiary (except as a result of the consummation
of the Vicksburg Sale), the Borrower shall execute promptly, or cause that its relevant
subsidiary will execute promptly, any and all further documents, financing statements, agreements
and instruments, and take all further action (including filing Uniform Commercial Code and other
financing statements) that may be required under applicable law, or that the Required Lenders,
the Administrative Agent or the Collateral Agent may reasonably request, in order to cause
Vicksburg to become an Affiliated Guarantor under the Loan Documents, grant a Lien on all its
assets in favor of the Collateral Agent for the benefit of the Secured Parties and

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more generally complies with the requirements of this Section 5.14 applicable to it, in each case
subject to Gaming Authority approval.

          (e) If either of Adamar or Manchester Mall ceases to be an Excluded Subsidiary or if the
Atlantic City Conservatorship Arrangements cease to be in full force and effect (except as a result
of the consummation of the Atlantic City Facility Sale), the Borrower shall execute promptly, or
cause that its relevant subsidiary will execute promptly, any and all further documents, financing
statements, agreements and instruments, and take all further action (including filing Uniform
Commercial Code and other financing statements) that may be required under applicable law, or that
the Required Lenders, the Administrative Agent or the Collateral Agent may reasonably request, in
order to (i) pledge the Equity Interests the relevant Loan Parties hold in Adamar and Manchester
Mall in favor of the Collateral Agent for the benefit of the Secured Parties, (ii) grant a Lien on
the Excluded Collateral the relevant Loan Parties own in favor of the Collateral Agent for the
benefit of the Secured Parties, (iii) cause that each of Adamar and Manchester Mall to become an
Additional Guarantor under the Loan Documents, grant a Lien on all its assets in favor of the
Collateral Agent for the benefit of the Secured Parties and more generally complies with the
requirements of this Section 5.14 applicable to it, in each case subject to Gaming Authority
approval.

          (f) If any of the Louisiana Entities ceases to be an Excluded Subsidiary, the Borrower shall
execute promptly, or cause its relevant subsidiary to execute promptly, any and all further
documents, financing statements, agreements and instruments, and take all further action (including
filing Uniform Commercial Code and other financing statements) that may be required under
applicable law, or that the Required Lenders, the Administrative Agent or the Collateral Agent may
reasonably request, in order to (i) pledge the Equity Interest the relevant Loan Parties held in
such Louisiana Subsidiary in favor of the Collateral Agent for the benefit of the Secured Parties,
and (ii) cause such Louisiana Subsidiary to become an Additional Guarantor under the Loan
Documents, to grant a Lien on all its assets in favor of the Collateral Agent for the benefit of
the Secured Parties and to comply with the requirements of this Section 5.14 applicable to it.

          (g) Promptly following the Administrative Agent’s reasonable request, subject to Gaming
Authority approval to the extent required, the Borrower shall execute, or shall cause its relevant
subsidiaries to execute, the Pledge Agreements and any and all further related documents and take
all further related action that may be required under applicable law, or that the Required
Lenders, the Administrative Agent or the Collateral Agent may request in their sole discretion, in
order to effectuate the transactions contemplated by the Loan Documents and in order to grant,
preserve, protect and perfect the validity and first priority of the security interests created or
intended to be created by the Security Documents.

          (h) Promptly following the Administrative Agent’s reasonable request, subject to Gaming
Authority approval to the extent required, execute Ship Mortgages, Vessel Security Agreements any
and all further related documents and take all further related action that may be required under
applicable law, or that the Required Lenders, the Administrative Agent or the Collateral Agent may
request in their sole discretion, in order to effectuate the transactions contemplated by the Loan
Documents and in order to grant, preserve, protect and perfect the validity and first priority of
the security interests created or intended to be created by the Security Documents, in each case
subject to Gaming Authority approval.

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          (i) Promptly following the Closing Date and in any event before the date of the Final Order,
the Borrower shall:

               (i) deliver to the Administrative Agent a Perfection Certificate with respect to the Loan
Parties duly executed by a Responsible Officer of Holdings and the Borrower;

               (ii) provide a copy of, or a certificate as to coverage under, the insurance policies
required by Section 5.02 and the applicable provisions of the Security Documents, each of which
shall be endorsed or otherwise amended to include a customary lender’s loss payable endorsement
and to name the Collateral Agent as additional insured; and

               (iii) provide to the Administrative Agent, on behalf of itself and the Lenders, a reasonably
satisfactory written opinion of Kirkland & Ellis LLP, counsel for Holdings and the Borrower (A)
addressed to the Administrative Agent and the Lenders and (B) covering certain matters relating to
the Loan Documents as the Administrative Agent shall reasonably request, and Holdings and the
Borrower hereby request such counsel to deliver such opinion.

          5.15. Tropicana Las Vegas Dividends. In the event Tropicana Las Vegas or any of its
subsidiaries makes any dividend or other distribution (whether in cash, securities or other
property) to Tropicana Las Vegas Intermediate Holdings or any of its direct or indirect parent
companies that is not a Subsidiary Guarantor, cause such amounts so received to be distributed to
Aztar or to another Subsidiary Guarantor.

          5.16. Approvals to Security Documents. In the event that Holdings and the Borrower have not
obtained all required approvals of all relevant Gaming Authorities to the Security Documents prior
to the Closing Date (or, if applicable, at such date on which a Subsidiary becomes a Guarantor or
grants a Lien under the Security Documents), Holdings and the Borrower shall use commercially
reasonable efforts to promptly obtain, and shall in any event receive, such approvals within 120
days (which date may be extended for up to an additional 30 days in the sole discretion of the
Administrative Agent) following the Closing Date (or, if applicable, at such date on which a
Subsidiary becomes a Guarantor or grants a Lien under the Security Documents) or such later date as
the Administrative Agent shall determine in its reasonable discretion. The Administrative Agent and
the Lenders acknowledge that all such approvals are within the discretion of the relevant Gaming
Authorities and agree that no pledge of, nor restriction upon the hypothecation or transfer of, the
equity securities of Holdings, the Borrower, the Affiliated Guarantors or any of their respective
subsidiaries which are Nevada, New Jersey, Mississippi, Louisiana or Indiana gaming licensees may
be effective unless and until Holdings, the Borrower or the Affiliated Guarantors, as applicable,
has made all necessary applications to and procure all necessary consents, approvals and favorable
rulings of the Nevada Gaming Commission, the NJ Commission, the Indiana Gaming Board, the
Mississippi Gaming Commission, the Louisiana Gaming Control Board and any other relevant Gaming
Authorities, as applicable. The Administrative Agent and the Lenders also acknowledge that further
proceedings may be required for the Administrative Agent and the Lenders to exercise any remedies
set forth in any Security Documents.

          5.17. Horizon and MontBleu Estoppels. Use reasonable efforts, where commercially
practicable, to obtain upon the Administrative Agent’s reasonable request, the Horizon
Estoppel Certificate and the MontBleu Estoppel Certificate.

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          5.18. Affiliated Guarantor Distributions. In the case of each Affiliated Guarantor, transfer
(as a subordinated loan or otherwise) to the Borrower or any Subsidiary Guarantor (other than to
another Affiliated Guarantor) an amount in cash equal to 50% of any excess cash flow (after
excluding all cash amounts expected to be required to operate the business of such Affiliated
Guarantor) of such Affiliated Guarantor determined on an annual basis beginning with the year
ended December 31, 2008. Such subordinated loans or other transfers shall be made within 90 days
of the applicable fiscal year and to the extent not previously made.

          5.19. Financial Advisor. (a) The Borrower shall maintain the retention of Lazard (or any other
investment bank or financial advisor of similar standing appointed within 30 days of the
termination of Lazard’s (or the previous financial advisor’s) retention) on terms similar to the
terms in effect on the Closing Date or otherwise reasonably acceptable to the Administrative Agent
and the Lenders to advise the Borrower on all relevant reorganization matters and matters relating
to the implementation of the Atlantic City Facility Sale, the Evansville Sale and the Vicksburg
Sale.

          (b) The Borrower shall maintain the retention of AlixPartners, LLP (or any other investment
bank or financial advisor of similar standing appointed within 30 days of the termination of
AlixPartners, LLP’ (or the previous restructuring advisor’s) retention) as restructuring advisors
on terms similar to the terms in effect on the Closing Date or otherwise reasonably acceptable to
the Administrative Agent and the Lenders.

          (c) The Lenders shall have the right at any time to appoint and retain at Borrower’s expense a
financial advisor satisfactory to Lenders in connection with this Agreement and the other Loan
Documents, which financial advisor shall be permitted to exercise the rights of the Secured Parties
under Sections 5.06 and 5.08, and the reasonable documented fees and expenses of which shall be
payable by Borrower in accordance with Section 9.05.

          5.20. Atlantic City Facility Sale, Evansville Sale, Vicksburg Sale. Holdings and the other
Loan Parties shall (a) expeditiously implement the Atlantic City Facility Sale (to the extent
applicable) and will not take, or omit to take, any actions that could delay or prevent the
implementation of the Atlantic City Facility Sale or the Atlantic City Conservatorship Arrangements
(it being agreed and understood that (A) the Loan Parties have appealed certain orders of the NJ
Commission, which, if successful, will terminate the obligations of the Loan Parties to proceed
with the Atlantic City Facility Sale, and (B) the Loan Parties reserve the right to object to, or
take any other actions with respect to, any Atlantic City Facility Sale if it is not in the best
interest of its creditors; provided that if such objection relates solely to the
consideration to be received in connection with such sale, such objection shall only be made if
such consideration is substantially below the fair market value of such assets in its reasonable
judgment), (b) report to the Administrative Agent at least once a week on the progress of execution
of the Atlantic City Facility Sale, (c) report to the Administrative Agent promptly following
learning of any material development with respect to the Atlantic City Facility Sale, the
Evansville Sale, the Vicksburg Sale or any other Asset Sale and (d) ensure that each of the
milestone requirements set forth in Schedule 5.20 with respect to the Atlantic City Facility Sale
is met by the applicable dates set forth therein.

          5.21. Minimum Drawing Requirement. The Term Loans shall be in a minimum principal outstanding
amount of $20,000,000 for a three month period commencing on the first Business Day after the
Interim Period.

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ARTICLE VI

Negative Covenants

          Each of Holdings, the Borrower and, as to matters within their respective control, the
Affiliated Guarantors, covenants and agrees with each Lender that, so long as this Agreement shall
remain in effect and until the Commitments have been terminated and the principal of and interest
on each Loan, all Fees and all other expenses or amounts payable under any Loan Document have been
paid in full and all Letters of Credit have been cancelled or have expired (or have been Cash
Collateralized in a manner satisfactory to the Administrative Agent) and all amounts drawn
thereunder have been reimbursed in full, unless the Required Lenders shall otherwise consent in
writing, it will not, and, in the case of Holdings and the Borrower, it will not cause or permit
any of the Subsidiaries (other than the LandCo Subsidiaries) to:

          6.01. Indebtedness. Incur, create, assume or permit to exist any Indebtedness, except:

          (a) Indebtedness of Holdings, the Borrower and their respective subsidiaries existing on the
Petition Date and set forth in Schedule 6.01;

          (b) Indebtedness created hereunder and under the other Loan Documents;

          (c) intercompany Indebtedness of the Borrower, the Subsidiaries and the Affiliated
Guarantors to the extent permitted by Section 6.03(c);

          (d) Indebtedness under performance bonds or with respect to workers’ compensation claims,
property casualty or liability insurance, take-or-pay obligations in supply arrangements, self
insurance obligations, performance, bid and surety bonds and completion guaranties in each case
incurred in the ordinary course of business;

          (e) Indebtedness incurred by the Borrower, the Subsidiaries or the Affiliated Guarantors with
respect to Hedge Agreements in the ordinary course of business and not for speculative purposes;

          (f) (i) Indebtedness incurred by the Borrower, the Subsidiaries or the Affiliated Guarantors
in respect of netting services, overdraft protections and otherwise in connection with deposit
accounts, in each case, other than Indebtedness for borrowed money and (ii) Indebtedness arising
from the honoring of a check or draft drawn against insufficient funds;

          (g) guarantees and any other contingent obligations of the Borrower, the Subsidiaries and the
Affiliated Guarantors in respect of Indebtedness otherwise permitted hereunder (both before or
after any liability associated therewith becomes fixed); and

          (h) other Indebtedness of the Borrower, the Subsidiaries (other than Tropicana Las Vegas and
its Subsidiaries) and the Affiliated Guarantors (not listed in Sections 6.01(a) through 6.01(g))
in an aggregate principal amount not exceeding $5,000,000 at any time outstanding.

          6.02. Liens. Create, incur, assume or permit to exist any Lien on any property or assets
(including Equity Interests or other securities of any Person, including the Borrower or

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any Subsidiary now owned or hereafter acquired by it or on any income or revenues or rights in
respect of any thereof (collectively referred to in this Section 6.02 as the “Assets”),
except:

          (a) Liens on Assets of the Borrower, the Subsidiaries and the Affiliated Guarantors existing
on the Petition Date and set forth in Schedule 6.02 (or to the extent not listed in Schedule 6.02,
where the fair market value of the Assets to which such Lien attaches is less than $5,000,000);
provided that such Liens shall secure only those obligations which they secure on the
Petition Date (together with any adequate protection obligations as set forth in the Orders);

          (b) any Lien created under the Loan Documents (including L/C Cash Collateral not in
excess of $10,000,000) and Liens or claims granted pursuant to the Orders;

          (c) Liens for taxes not yet due or which are being contested in compliance with Section
5.03;

          (d) landlord’s, banks’, carriers’, warehousemen’s, mechanics’, materialmen’s,
repairmen’s or other like Liens arising in the ordinary course of business (or imposed by
law) and securing obligations that are not due and payable or which are being contested in
compliance with Section 5.03;

          (e) pledges and deposits made in the ordinary course of business in compliance with
workmen’s compensation, unemployment insurance and other social security laws or regulations;

          (f) deposits to secure the performance of bids, trade contracts (other than for Indebtedness),
leases (other than Capital Lease Obligations), subleases, statutory obligations, surety and appeal
bonds, performance bonds and other obligations of a like nature incurred in the ordinary course of
business;

          (g) zoning restrictions, easements, encroachments, rights-of-way, restrictions on use of real
property and other similar encumbrances incurred in the ordinary course of business which, in the
aggregate, are not substantial in amount and do not materially detract from the value of the
Assets subject thereto or interfere with the ordinary conduct of the business of the Borrower, any
of its Subsidiaries or any of the Affiliated Guarantors;

          (h) Liens securing Indebtedness permitted under Section 6.01(h); provided, that (i) such
Liens secures Indebtedness incurred to finance the acquisition, construction or improvement of any
fixed or capital assets or Capital Lease Obligations and Synthetic Lease Obligations, (ii) such
Liens are incurred, and the Indebtedness secured thereby is created, within 180 days after such
acquisition (or construction), (iii) the Indebtedness secured thereby does not exceed 100% of the
lesser of the cost or the fair market value of such real property, improvements or equipment at
the time of such acquisition (or completion of construction or improvement) and (iv) such security
interests do not apply to any property or assets of the Borrower, any Subsidiary or any Affiliated
Guarantor other than the fixed or capital assets which are acquired, constructed or improved;

          (i) any interest or title of a lessor or sublessor under any lease of real estate entered
into by the Borrower, any Subsidiary or any Affiliated Guarantor in the ordinary course of
business;

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          (j) Liens in favor of customs and revenue authorities arising as a matter of law to secure
the payment of customs duties in connection with the importation of goods;

          (k) receipt of progress payments and advances from customers in the ordinary course of
business to the extent the same creates a Lien on the related inventory and proceeds thereof;

          (l) Liens solely on cash earnest money deposits made by the Borrower, any Subsidiary or any
Affiliated Guarantor in connection with a letter of intent or purchase agreement permitted
hereunder;

          (m) purported Liens evidenced by precautionary Uniform Commercial Code financing statements
filed in the ordinary course of business;

          (n) licenses of patents, trademarks and other intellectual property rights granted by the
Borrower, the Subsidiaries or the Affiliated Guarantors in the ordinary course of business;

          (o) Liens arising out of consignment or similar arrangements for the sale by the Borrower,
the Subsidiaries or the Affiliated Guarantors of goods through third parties in the ordinary
course of business; and

          (p) Liens arising out of judgments or awards which do not result in a Default or Event of
Default.

          This Section 6.02 shall not be construed as a restriction upon the hypothecation or transfer
of the equity securities of any gaming licensee unless and until all required approvals of
relevant Gaming Authorities have been obtained.

          6.03. Investments, Loans and Advances. Purchase, hold or acquire any Equity Interests,
evidences of indebtedness or other securities of, make or permit to exist any loans or
advances to, or make or permit to exist any investment in, any other Person, except:

          (a) investments by Holdings, the Borrower, the Subsidiaries and the Affiliated Guarantors
existing on the Petition Date in the Equity Interests of the Borrower and the Guarantors;

          (b) Permitted Investments;

          (c) loans or advances made (i) among the Borrowers and the Subsidiary
Guarantors and (ii) by any Subsidiary that is not a Guarantor to the Borrower or any of its
Subsidiaries, in each case subject to the provisions of Section 6.17;

          (d) investments received in connection with trade credit or notes receivable and investments
received in satisfaction or partial satisfaction thereof from financially troubled account
debtors or the bankruptcy or reorganization of, or settlement of delinquent accounts and disputes
with, customers and suppliers, in each case in the ordinary course of business;

          (e) deposits, prepayments and other credits to suppliers made in the ordinary course of
business;

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          (f) each Loan Party may make investments arising out of the receipt by such party of non-cash
consideration for any Asset Sale permitted hereunder;

          (g) guarantees and any other contingent obligations permitted under Section 6.01(g);

          (h) investments consisting of Capital Expenditures permitted under Section 6.09; and

          (i) the Borrower and the Subsidiary Guarantors may make investments in community
development projects to the extent required by any Governmental Authority (including the Casino
Reinvestment Development Authority).

          6.04. Mergers, Consolidations, Sales of Assets and Acquisitions. (a) Merge into or consolidate
with any other Person, or permit any other Person to merge into or consolidate with it, or sell,
transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or
substantially all the assets (whether now owned or hereafter acquired) of the Borrower or less than
all the Equity Interests of any Subsidiary or any Affiliated Guarantor, or purchase, lease or
otherwise acquire (in one transaction or a series of transactions) all or any substantial part of
the assets of any other Person, except that (i) the Borrower, any Subsidiary and any Affiliated
Guarantor may purchase and sell or swap inventory in the ordinary course of business and (ii) if at
the time thereof and immediately after giving effect thereto no Event of Default or Default shall
have occurred and be continuing (w) any wholly owned Subsidiary Guarantor may merge into the
Borrower in a transaction in which the Borrower is the surviving corporation, (x) any wholly owned
Subsidiary Guarantor may merge into or consolidate with any other wholly owned Subsidiary Guarantor
in a transaction in which the surviving entity is a wholly owned Subsidiary Guarantor and no Person
other than the Borrower, a wholly owned Subsidiary Guarantor receives any consideration, (y) any
Affiliated Guarantor may merge into or consolidate with any other Affiliated Guarantor in a
transaction in which the surviving entity is an Affiliated Guarantor and no Person other than the
Borrower, a wholly owned Subsidiary Guarantor or an Affiliated receives any consideration and (y)
any Loan Party may purchase, lease or otherwise acquire all or substantially all of the assets of
any other Loan Party or sell, transfer, lease or dispose of all or substantially all of its assets
to any other Loan Party.

          (b) Other than in the case of (A) mergers effected pursuant to Section 6.04(a)(ii) and (B) any
Excluded Asset Sales, (x), make any Asset Sale otherwise permitted under Section 6.04(a) unless (i)
such Asset Sale is for consideration at least 75% of which is cash, (ii) such consideration is at
least equal to the fair market value of the assets being sold, transferred, leased or disposed of
and (iii) (I) the fair market value of all assets sold, transferred, leased or disposed of pursuant
to this Section 6.04(b) (other than Asset Sales by any LandCo Subsidiary) shall not exceed
$5,000,000 in the aggregate or (II) if such Asset Sale is effected by any LandCo Subsidiary, the
Net Cash Proceeds resulting therefrom are applied in accordance with the Orders, the Existing Las
Vegas Credit Agreement and the provisions of Section 2.14(a), if applicable; provided that the
foregoing restrictions of clauses (i) and (ii) of this Section 6.04(b) shall not apply to transfers
of condemned property as a result of the exercise of “eminent domain” or other similar policies to
the respective Governmental Authority that has condemned such property.

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          This Section 6.04 shall not be construed as a restriction upon the hypothecation or transfer
of the equity securities of any gaming licensee unless and until all required approvals of
relevant Gaming Authorities have been obtained.

          6.05. Restricted Payments; Restrictive Agreements. (a) Declare or make, or agree to declare
or make, directly or indirectly, any Restricted Payment (including pursuant to any Synthetic
Purchase Agreement), or incur any obligation (contingent or otherwise) to do so; provided,
however, that (i) any Subsidiary may declare and pay dividends or make other distributions
ratably to its equity holders, (ii) Holdings, the Borrower, the Subsidiaries and the Affiliated
Guarantors may make Restricted Payments in the form of distributions payable solely in the common
stock or other common Equity Interests of such Person, (iii) CP Laughlin, Vicksburg and Jubilee
may make Permitted Tax Distributions; provided, however, that all Restricted
Payments made pursuant to this clause (iii) are used by the recipients thereof for the purposes
specified herein within 60 days of the receipt thereof, (iv) the Borrower, any Subsidiary or any
Affiliated Guarantor may repurchase or redeem common stock or other common Equity Interests of the
Borrower, any Subsidiary or any Affiliated Guarantor to the extent required by any Gaming
Authority to prevent a License Revocation or otherwise, (v) Greenville may make distributions to
the minority holders of its Equity Interests to the extent required by its operating agreement as
in effect on the Closing Date (or as amended in a manner approved by the Required Lenders) and
(vi) Holdings, the Borrower, the Subsidiaries and the Affiliated Guarantors may make Restricted
Payments to the extent provided in (and on the terms and subject to the conditions of) the
Services Agreements and Casino Services Agreements (as such agreements exist on the date hereof).

          (b) Enter into, incur or permit to exist any agreement or other arrangement that prohibits,
restricts or imposes any condition upon (i) the ability of Holdings, the Borrower, any Subsidiary
or any Affiliated Guarantor to create, incur or permit to exist any Lien upon any of its property
or assets, or (ii) the ability of any Subsidiary or any Affiliated Guarantor to pay dividends or
other distributions with respect to any of its Equity Interests or to make or repay loans or
advances to the Borrower or any other Subsidiary or to Guarantee Indebtedness of the Borrower or
any other Subsidiary; provided that (A) the foregoing shall not apply to restrictions and
conditions imposed by law, any Gaming Authority or by any Loan Document or an Indebtedness
permitted under Section 6.01(a), (B) the foregoing shall not apply to customary restrictions and
conditions contained in agreements relating to the sale of a subsidiary pending such sale,
provided that such restrictions and conditions apply only to the subsidiary that is to be
sold and such sale is permitted hereunder, (C) clause (i) of the foregoing shall not apply to
restrictions or conditions imposed by any agreement relating to secured Indebtedness or effecting a
refinancing of Indebtedness permitted hereunder if such restrictions or conditions apply only to
the property or assets securing such Indebtedness, (D) clause (i) of the foregoing shall not apply
to customary provisions in leases and other contracts restricting the assignment thereof, (E)
clause (i) of the foregoing shall not apply to software and other Intellectual Property licenses
pursuant to which a Loan Party or Subsidiary is the licensee of the relevant software or
Intellectual Property, as the case may be (in which case, any prohibition or limitation shall
relate only to the assets subject of the applicable license), (F) clause (i) of the foregoing shall
not apply to prohibitions and limitations in effect on the date hereof and listed on Schedule 6.05,
(G) clause (i) of the foregoing shall not apply to customary provisions contained in joint venture
agreements and other similar agreements applicable to joint ventures permitted hereby, (H) clause
(i) of the foregoing shall not apply to customary provisions restricting the subletting or
assignment of any lease governing a leasehold interest, (I) clause (i) of the foregoing shall not
apply to customary

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restrictions and conditions contained in any agreement relating to an asset sale permitted by
Section 6.04, (J) clause (i) of the foregoing shall not apply to any agreement in effect at the
time any Person becomes a subsidiary of the Borrower or an Affiliated Guarantor, so long as such
agreement was not entered into in contemplation of such Person becoming a subsidiary of the
Borrower or an Affiliated Guarantor and (K) clause (i) of the foregoing shall not apply to any
contractual obligations incurred in the ordinary course of business and on customary terms which
limit Liens on the assets subject to the applicable contractual obligation.

          6.06. Transactions with Affiliates. Except for transactions between or among Loan Parties,
sell or transfer any property or assets to, or purchase or acquire any property or assets from, or
otherwise engage in any other transactions with, any of its Affiliates, except that (i) the
Borrower, any Subsidiary or any Affiliated Guarantor may engage in any of the foregoing
transactions in the ordinary course of business at prices and on terms and conditions not less
favorable to the Borrower, such Subsidiary or such Affiliated Guarantor than could be obtained on
an arm’s-length basis from unrelated third parties, (ii) Greenville may make the distributions
permitted by Section 6.05(a)(v), (iii) the Borrower, any Subsidiary or any Affiliated Guarantor may
enter any transaction contemplated by, and on the terms and subject to the conditions of, the
Services Agreements (including with respect to employment arrangements to the extent contemplated
therein) or the Casino Services Agreements (in each case, as such agreements exist on the date
hereof), (iv) Holdings, the Borrower, the Subsidiaries and the Affiliated Guarantors may engage in
the transactions expressly permitted by Section 6.05 and (v) the Borrower, any Subsidiary and any
Affiliated Guarantor may provide reasonable indemnification rights and directors’ and officers’
liability insurance coverage to any of its or its subsidiaries’ directors and officers.

          6.07. Business of Holdings, Borrower, the Affiliated Guarantors and Subsidiaries. (a) With
respect to Holdings, engage in any business activities or have any assets or liabilities other
than its ownership of the Equity Interests of the Borrower and activities and liabilities
incidental thereto, including its liabilities pursuant to the Guarantee and Collateral Agreement,
the Pledge Agreements, and the Indebtedness permitted under Section 6.01(a); and

          (b) With respect to the Borrower, each Subsidiary and each Affiliated Guarantor,
engage at any time in any business or business activity other than a Permitted Business.

          6.08. Other Indebtedness and Agreements. (a) Permit (i) any waiver, supplement, modification,
amendment, termination or release of any indenture, instrument or agreement pursuant to which any
Material Indebtedness of Holdings, the Borrower, any of the Subsidiaries or any of the Affiliated
Guarantors is outstanding if the effect of such waiver, supplement, modification, amendment,
termination or release would be materially adverse to Holdings, the Borrower, any of the
Subsidiaries, any of the Affiliated Guarantors or the Lenders or (ii) any material waiver,
supplement, modification or amendment of (x) its certificate of incorporation, by-laws, operating,
management or partnership agreement or other organizational documents, (y) an agreement set forth
on Schedule 6.08(a) or (z) any lease between the Borrower or a Subsidiary Guarantor and an
Affiliate of the Borrower or such Subsidiary Guarantor that has the effect of increasing the rental
amounts payable thereunder, in each case, to the extent any such waiver, supplement, modification
or amendment would be adverse to the Lenders in any material respect.

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          (b) (i) Make any distribution, whether in cash, property, securities or a combination
thereof, in respect of, or pay, or commit to pay, or directly or indirectly (including pursuant to
any Synthetic Purchase Agreement) redeem, repurchase, retire or otherwise acquire for
consideration, or set apart any sum for the aforesaid purposes, any Indebtedness outstanding on
the Petition Date other than (A) payments of interest accruing thereon and permitted under the
Chapter 11 Cases and (B) repayment of the Indebtedness incurred under the Existing Senior Credit
Agreement solely with the Net Cash Proceeds arising from any Excluded Sale, (ii) pay in cash any
amount in respect of any Indebtedness or preferred Equity Interests that may at the obligor’s
option be paid in kind or in other securities.

          6.09. Capital Expenditures. Permit the aggregate amount of Capital Expenditures made by the
Borrower, the Subsidiaries and the Affiliated Guarantors, on a cumulative basis from the Closing
Date through and including the date specified below, to exceed the amounts set forth below
opposite such date:

	 	 	 	 	 
	Month ending on	 	Amount ($)	 
	May 31, 2008
	 	 	3,100,000	 
	June 30, 2008
	 	 	6,200,000	 
	July 31, 2008
	 	 	8,100,000	 
	August 31, 2008
	 	 	9,600,000	 
	September 30, 2008
	 	 	11,100,000	 
	October 31, 2008
	 	 	12,400,000	 
	November 30, 2008
	 	 	13,600,000	 
	December 31, 2008
	 	 	15,100,000	 
	January 31, 2009
	 	 	16,400,000	 
	February 28, 2009
	 	 	18,000,000	 
	March 31, 2009
	 	 	19,500,000	 
	April 30, 2009
	 	 	20,900,000	 

          6.10. Consolidated EBITDA. Permit Holdings’ Consolidated Adjusted EBITDA as at the end of
any fiscal month (a) to be less than the amount set forth below in the second column opposite
such month and (b) on a cumulative basis since the Closing Date, to be less than the amount set
forth below in the third column opposite the last month in such period:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Consolidated Adjusted
	 	 	Consolidated Adjusted	 	EBITDA
	 	 	EBITDA	 	(in $, on a cumulative basis
	Month ending on	 	(in $, on a monthly basis)	 	since the Closing Date)
	May 31, 2008
	 	 	0.00	 	 	 	6,200,000	 
	June 30, 2008
	 	 	4,500,000	 	 	 	11,300,000	 
	July 31, 2008
	 	 	6,700,000	 	 	 	19,000,000	 

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	 	 	 	 	 	 	Consolidated Adjusted
	 	 	Consolidated Adjusted	 	EBITDA
	 	 	EBITDA	 	(in $, on a cumulative basis
	Month ending on	 	(in $, on a monthly basis)	 	since the Closing Date)
	August 31, 2008
	 	 	5,800,000	 	 	 	25,600,000	 
	September 30, 2008
	 	 	4,900,000	 	 	 	31,100,000	 
	October 31, 2008
	 	 	4,900,000	 	 	 	36,700,000	 
	November 30, 2008
	 	 	3,500,000	 	 	 	40,700,000	 
	December 31, 2008
	 	 	3,400,000	 	 	 	44,600,000	 
	January 31, 2009
	 	 	4,400,000	 	 	 	49,600,000	 
	February 28, 2009
	 	 	7,100,000	 	 	 	57,800,000	 
	March 31, 2009
	 	 	6,600,000	 	 	 	65,400,000	 
	April 30, 2009
	 	 	5,800,000	 	 	 	72,000,000	 

In the event any of Evansville, Vicksburg, Adamar or Manchester Mall ceases to be an Excluded
Subsidiary, the Borrower and the Administrative Agent agree to negotiate in good faith with a view
to agreeing to an amendment to Sections 6.09 and 6.10, which are necessary to provide the Lenders
comparable protection to that evidenced by those Sections as at the Closing Date, and to provide
the Loan Parties comparable cushion to that evidenced by those Sections as at the Closing Date;
provided that, solely for the purpose of compliance with Sections 6.09 and 6.10, none of
Evansville, Vicksburg, Adamar or Manchester Mall shall cease to be an Excluded Subsidiary unless
the Administrative Agent is satisfied that Sections 6.09 and 6.10 have been amended in accordance
with the principles set forth in this paragraph.

          6.11. Minimum Liquidity. Permit, at any time after the Interim Period, the sum of (a) all
available cash held by any Loan Party in a deposit account (and excluding all cash held at any of
its casinos), (b) all unrestricted Permitted Investments of the Loan Parties and (c) the
aggregate unused amount of the Commitments in effect at such time, to be less than $7,000,000 in
the aggregate.

          6.12. Fiscal Year. With respect to Holdings and the Borrower, change their fiscal year-end
to a date other than December 31.

          6.13. Cash Flow Forecast. The aggregate amount of Disbursements incurred by Holdings, the
Affiliated Guarantors and their respective Subsidiaries (other than the LandCo Subsidiaries) shall
not exceed 115% (or 120% with respect to the Approved Cash Flow Forecasts delivered in May and
June of 2008), of the cumulative amount of Disbursements set forth in the Approved Cash Flow
Forecast for such period.

          6.14. Chapter 11 Claims. No Loan Party shall, nor shall any Loan Party permit any of the
Subsidiaries to, agree to, incur, create, assume, suffer to exist or permit (a) any
administrative expense, unsecured claim, or other superpriority claim or lien which is pari passu
with or senior to the claims of the Secured Parties against the Loan Parties hereunder, or apply
to the Bankruptcy Court for authority to do so, except for the Carve-Out, the Existing Las Vegas
Liens or as otherwise provided in the Orders or (b) any obligation to make or provide adequate

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protection (whether by the payment of cash or otherwise) other than as expressly set forth in the
Orders, without the consent of Administrative Agent and Required Lenders.

          6.15. The Orders. No Loan Party shall, nor shall any Loan Party permit any of its subsidiaries
to, make or permit to be made any change, amendment or modification, or any application or motion
for any change, amendment or modification, to the Orders without the prior written consent of
Administrative Agent and Required Lenders.

          6.16. Tax Status. No Loan Party shall, nor shall permit any of its subsidiaries, to elect to
be treated as an entity taxable as a corporation for U.S. federal income tax purposes.

          6.17. Tropicana Las Vegas. Notwithstanding anything to the contrary in the Loan Documents, no
Loan Party (other than the LandCo Subsidiaries) shall, nor shall permit any of its subsidiaries,
to (a) incur, create, assume or permit to exist any Indebtedness from, (b) purchase or acquire
any additional Equity Interests in, make or permit to exist any loans or advances (including the
downstreaming of the proceeds of the Term Loans) to, or make or permit to exist any investments in
or (c) merge into or consolidate with, purchase any asset from or sell any asset to, any LandCo
Subsidiaries, except short term loans or advances or investments made in ordinary course of
business, on arms’ length terms, consistent with past practices and not exceeding at any time
$15,000,000 in the aggregate. Further notwithstanding anything to the contrary in the Loan
Documents, the Borrower shall not permit any of the LandCo Subsidiaries to incur Indebtedness
other than in the form of a working capital debtor-in-possession credit facility, in an aggregate
amount at any time outstanding in excess of $15,000,000 less the amounts utilized in reliance on
the immediately prior sentence; provided that such that such working capital debtor-in-possession
credit facility (i) may be secured by a Lien on the assets of the LandCo Subsidiaries and (ii) is
without recourse to Holdings, the Borrower, the Affiliated Guarantors and their respective
Subsidiaries (other than the LandCo Subsidiaries).

ARTICLE VII

Events of Default

          In case of the happening of any of the following events (“Events of
Default”):

          (a) any representation or warranty made or deemed made in or in connection with any Loan
Document or the borrowings or issuances of Letters of Credit hereunder, or any representation,
warranty contained in any report, certificate, financial statement or other instrument furnished
pursuant to any Loan Document, shall prove to have been false or misleading in any material
respect when so made, deemed made or furnished;

          (b) default shall be made in the payment of any principal of any Loan when and as the same
shall become due and payable, whether at the due date thereof or at a date fixed for prepayment
thereof or by acceleration thereof or otherwise;

          (c) default shall be made in the payment of any interest on any Loan or any Fee or any other
amount (other than an amount referred to in (b) above) due and payable under any Loan Document,
when and as the same shall become due and payable, and such default shall continue unremedied for
a period of 3 days;

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          (d) default shall be made in the due observance or performance by Holdings, the Borrower, any
Subsidiary or any Affiliated Guarantor of any covenant, condition or agreement contained in Section
5.01(a), 5.05(a), 5.09, 5.14(h) or 5.19 or in ARTICLE VI;

          (e) default shall be made in the due observance or performance by Holdings, the Borrower, any
Subsidiary or any Affiliated Guarantor of any covenant, condition or agreement contained in any
Loan Document (other than those specified in (b), (c) or (d) above) and such default shall continue
unremedied for a period of 30 days (or 10 days if such default occur under Sections 5.14(a) to (g))
after notice thereof from the Administrative Agent or any Lender to the Borrower;

          (f) (i) Holdings, the Borrower, any Subsidiary or any Affiliated Guarantor shall fail to pay
any principal or interest due in respect of any Material Indebtedness, when and as the same shall
become due and payable or (ii) any other event or condition occurs that results in any Material
Indebtedness becoming due prior to its scheduled maturity, in each case, taking into account any
period of grace specified in the instrument or agreement under which such Material Indebtedness
was created, as a result of a default or event of default (or similar event) or that enables or
permits (with or without the giving of notice, the lapse of time or both) the holder or holders of
any Material Indebtedness or any trustee or agent on its or their behalf to cause any Material
Indebtedness to become due, or to require the prepayment, repurchase, redemption or defeasance
thereof, prior to its scheduled maturity as a result of a default or event of default (or similar
event); provided that this clause (ii) shall not apply to secured Indebtedness that
becomes due as a result of the voluntary sale or transfer of the property or assets securing such
Indebtedness; provided that this Section (f) shall not apply to Material Indebtedness in
respect of (A) purchase money or vendor financing if such failure is a result of a good-faith
dispute with the holders of such Indebtedness and such failure is remedied or waived by the
holders of such Indebtedness and (B) Indebtedness incurred on or before the Petition Date if the
automatic stay is applicable and the Indebtedness is therefore not collectible;

          (g) one or more unstayed judgments shall be rendered against Holdings, the Borrower, any
Subsidiary, any Affiliated Guarantor or any combination thereof for a liability (not part or fully
covered by insurance or effective indemnity) and the same shall remain undischarged for a period of
30 consecutive days during which execution shall not be effectively stayed, or any action shall be
legally taken by a judgment creditor to levy upon assets or properties of Holdings, the Borrower,
any Subsidiary or any Affiliated Guarantor to enforce any such judgment and such judgment either
(i) is for the payment of money in an aggregate amount in excess of $10,000,000 (to the extent not
adequately covered by insurance (less any deductible) in respect of which a solvent, unaffiliated
and reputable insurance company has acknowledged coverage in writing) or (ii) is for injunctive
relief and would reasonably be expected to result in a Material Adverse Effect;

          (h) an ERISA Event shall have occurred that, when taken together with all other such ERISA
Events that have occurred, could reasonably be expected to result in liability of the Borrower or
any Subsidiary Guarantor in an aggregate amount exceeding $20,000,000;

          (i) any Guarantee under the Guarantee and Collateral Agreement for any reason shall cease to
be in full force and effect (other than in accordance with its terms), or any Guarantor shall deny
in writing that it has any further liability under the Guarantee and Collateral

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Agreement (other than as a result of the discharge of such Guarantor in accordance with the terms
of the Loan Documents);

          (j) at any time (i) the Guarantee and Collateral Agreement with respect to any Guarantor for
any reason, other than the satisfaction in full of all Obligations, shall cease to be in full force
and effect (in accordance with its terms) or shall be declared to be null and void or any Guarantor
shall repudiate its obligations thereunder, (ii) this Agreement, any Security Document or any other
Loan Document ceases to be in full force and effect (other than by reason of the satisfaction in
full of the Obligations in accordance with the terms hereof) or shall be declared null and void, or
the Collateral Agent shall not have or shall cease to have a valid and perfected Lien in any
Collateral purported to be covered by the Security Documents with the priority required by the
Security Document and the Orders, or (iii) any Loan Party shall contest the validity or
enforceability of any Loan Document, or the Liens and claim priorities provided for in the Loan
Documents and the Orders, in writing or deny in writing that it has any further liability,
including with respect to future advances by Lenders, under any Loan Document;

          (k) any License Revocation (other than the License Revocation relating to the Atlantic City
Facility or Evansville for so long Evansville is an Excluded Subsidiary) shall have occurred and
remains continuing for more than five Business Days;

          (l) any termination of the Casino Leases or any other lease which is the subject of a
leasehold mortgage or leasehold deed to trust securing the Obligations, or of the charter party
lease of the vessel used in connection with Greenville’s Lighthouse Point Casino gaming
operations shall have occurred in each case, where such termination would have a Material
Adverse Effect;

          (m) there shall have occurred a Change in Control; or

          (n) (A) any Loan Party is required to pay any amount relating to the Park Cattle Dispute
under the Park Cattle Settlement Arrangements, or (B) the Park Cattle Settlement Arrangements is
terminated, revoked, rejected or shall cease to be in full force and effect for any reason or is
amended in a way which is adverse to any Loan Party or the Secured Parties or that would result in
the claims under the Park Cattle Settlement Arrangements being senior to the Obligations; or

          (o) (A) any default occurs under any Casino Services Agreement, any Services Agreement or any
Negative Pledge Agreement, (B) any Casino Services Agreement, any Services Agreement or any
Negative Pledge Agreement is terminated, revoked, rejected or shall cease to be in full force and
effect for any reason or is amended in a way which is materially adverse to any Loan Party or the
Secured Parties; or

          (p) (i) the bringing of a motion, taking of any action or the filing of any plan of
reorganization or disclosure statement attendant thereto by Borrower or any Guarantor in any of the
Chapter 11 Cases: (A) to obtain additional financing under Section 364(c) or (d) of the Bankruptcy
Code or not otherwise permitted pursuant to the Loan Documents except, with the consent of each of
Administrative Agent and Required Lenders, in connection with any financing the proceeds of which
shall be used to repay in full the Obligations (other than contingent indemnity obligations); (B)
to grant any Lien on any Collateral except as permitted hereunder and under the other Loan
Documents; (C) except as provided in the Interim Order or Final Order, as the case may be, to use
cash collateral of the Secured Parties under Section 363(c) of the

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Bankruptcy Code without the prior written consent of each of Administrative Agent and Required
Lenders; (D) except as permitted hereunder, which is materially adverse to the Agents and the
Lenders or their rights and remedies hereunder, or their interest in the Collateral, including,
without limitation, any such action or actions which seek to reduce, set-off or subordinate the
Obligations or challenge any Secured Party’s Lien in any of the Collateral; or (E) that seeks to
reduce, set-off or subordinate the Obligations or challenge Collateral Agent’s or any Lender’s
Lien in any of the Collateral; or

               (ii) the filing by any Loan Party of any plan of reorganization that does not provide for
indefeasible payment in full and satisfaction of the Obligations as required herein, prior to the
effective date of such plan of reorganization; or

               (iii) either Order shall be reversed, amended, supplemented, stayed, vacated or otherwise
modified (or any Loan Party shall apply for authority to do so) without the prior written consent
of Administrative Agent and Required Lenders, or shall cease to be in full force and effect or is
stayed in any respect; or any Loan Party fails to perform any of its obligations under any Order;
or

               (iv) the dismissal of any Chapter 11 Case, or the conversion of any Chapter 11 Case from one
under Chapter 11 to one under Chapter 7 of the Bankruptcy Code or any Loan Party shall file a
motion or other pleading seeking the dismissal or conversion of any Chapter 11 Case; or

               (v) except the Orders and the LandCo Cash Collateral Order, the entry of an order by the
Bankruptcy Court granting relief from or modifying the automatic stay of Section 362 of the
Bankruptcy Code (A) to allow any creditor to execute upon or enforce a Lien on any Collateral in
excess of $2,500,000 in the aggregate, or (B) with respect to any Lien of or the granting of any
Lien on any Collateral to any state or local environmental or regulatory agency or authority that
would have a Material Adverse Effect or priority over any Lien of the Lenders or (C) to allow any
creditor to execute upon or enforce a Lien on any Collateral in excess of $2,500,000 individually
or in the aggregate; or

               (vi) the Final Order is not entered within 30 days (which date may be extended for up to an
additional 15 days in the sole discretion of the Administrative Agent) of the date of entry of the
Interim Order, or, in any event, the Final Order is not entered immediately following the
expiration of the Interim Order; or

               (vii) the payment, prior to payment in full of the Obligations (other than contingent
indemnity obligations), of any claim or claims under Section 506(c) of the Bankruptcy Code against
or with respect to any of the Collateral (other than the Collateral which is subject to the Las
Vegas Existing Liens and); or

               (viii) the entry of an order in any of the Chapter 11 Cases avoiding or requiring repayment of
any portion of the payments made on account of the Obligations; or

               (ix) the appointment of an interim or permanent trustee in any Chapter 11 Case or the
appointment of a receiver, responsible officer or an examiner in any Chapter 11 Case with powers
beyond the duty to investigate and report, as set forth in Section 1106(a)(3) of the Bankruptcy
Code; or the sale without the consent of Administrative Agent and Required Lenders, of all or
substantially all of Borrower’s or any Guarantor’s assets

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(except as permitted by Section 6.04) either through a sale under Section 363 of the Bankruptcy
Code, through a confirmed plan of reorganization in any Chapter 11 Case, or otherwise, that does
not provide for payment in full of the Obligations (other than contingent indemnity obligations)
and termination of Lenders’ commitment to make Loans or other extensions of credit hereunder; or

               (x) the entry of an order in any of the Chapter 11 Cases granting any other superpriority
administrative claim or Lien equal or superior to that granted to any Agent, on behalf if itself
and Lenders (other than the Carve-Out, the Existing Las Vegas Liens and as expressly provided in
the Order), or any Loan Party shall file any pleading requesting such relief; or

          then, and in every such event, and at any time thereafter during the continuance of such
event, the Administrative Agent may, and at the request of the Required Lenders shall, by notice to
the Borrower (without further order of, application to, or action by, the Bankruptcy Court), take
either or both of the following actions, at the same or different times:

               (1) terminate forthwith the Commitments; and

               (2) declare the Loans and all other Obligations then outstanding to be forthwith due and payable in
whole or in part, whereupon the principal of the Loans so declared to be due and payable, together
with accrued interest thereon and any unpaid accrued Fees, applicable Prepayment Premium and all
other liabilities of the Borrower accrued hereunder and under any other Loan Document, shall become
forthwith due and payable, without presentment, demand, protest or any other notice of any kind,
all of which are hereby expressly waived by the Borrower, anything contained herein or in any other
Loan Document to the contrary notwithstanding. Each of the Administrative Agent and the Lenders
acknowledges that its ability to pursue the remedies described in this paragraph may be subject to,
and limited by, the terms of applicable Gaming Laws. In addition, subject solely to any requirement
of the giving of notice by the terms of the Orders (provided that no such notice shall be required
for the purpose of freezing or blocking any deposit or securities accounts which are Collateral),
the automatic stay provided in section 362 of the Bankruptcy Code shall be vacated as provided in
the Orders without further action or order of the Bankruptcy Court and the Agents and the Lenders
shall be entitled to exercise all of their respective rights and remedies under the Loan Documents,
including, without limitation, all rights and remedies with respect to the Collateral.

ARTICLE VIII

The Administrative Agent and the Collateral Agent

          8.01. Appointment of Agents. Silver Point Finance LLC is hereby appointed Administrative
Agent and Collateral Agent hereunder and under the other Loan Documents and each Lender hereby
authorizes Silver Point Finance LLC, in such capacity, to act as its agent in accordance with the
terms hereof and the other Loan Documents. Each Agent hereby agrees to act upon the express
conditions contained herein and the other Loan Documents, as applicable. The provisions of this
ARTICLE VIII are solely for the benefit of Agents and Lenders and no

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Loan Party shall have any rights as a third party beneficiary of any of the provisions thereof. In
performing its functions and duties hereunder, each Agent shall act solely as an agent of Lenders
and does not assume and shall not be deemed to have assumed any obligation towards or relationship
of agency or trust with or for Holdings, the Borrower, the Affiliated Guarantors or any of their
subsidiaries. .

          8.02. Powers and Duties. Each Lender irrevocably authorizes each Agent to take such action on
such Lender’s behalf and to exercise such powers, rights and remedies and perform such duties
hereunder and under the other Loan Documents as are specifically delegated or granted to such
Agent by the terms hereof and thereof, together with such actions, powers, rights and remedies as
are reasonably incidental thereto. Each Agent shall have only those duties and responsibilities
that are expressly specified herein and the other Loan Documents. Each Agent may exercise such
powers, rights and remedies and perform such duties by or through its agents or employees. No
Agent shall have or be deemed to have, by reason hereof or any of the other Loan Documents, a
fiduciary relationship in respect of any Lender; and nothing herein or any of the other Loan
Documents, expressed or implied, is intended to or shall be so construed as to impose upon any
Agent any obligations in respect hereof or any of the other Loan Documents except as expressly set
forth herein or therein.

          8.03. General Immunity. (a) No Responsibility for Certain Matters. No Agent shall be
responsible to any Lender for the execution, effectiveness, genuineness, validity,
enforceability, collectability or sufficiency hereof or any other Loan Document or for any
representations, warranties, recitals or statements made herein or therein or made in any written
or oral statements or in any financial or other statements, instruments, reports or certificates
or any other documents furnished or made by any Agent to Lenders or by or on behalf of any Loan
Party to any Agent or any Lender in connection with the Loan Documents and the transactions
contemplated thereby or for the financial condition or business affairs of any Loan Party or any
other Person liable for the payment of any Obligations, nor shall any Agent be required to
ascertain or inquire as to the performance or observance of any of the terms, conditions,
provisions, covenants or agreements contained in any of the Loan Documents or as to the use of
the proceeds of the Loans or as to the existence or possible existence of any Event of Default or
Default or to make any disclosures with respect to the foregoing. Anything contained herein to
the contrary notwithstanding, the Administrative Agent shall not have any liability arising from
confirmations of the amount of outstanding Loans or the Letter of Credit Exposure or the
component amounts thereof.

          (b) Exculpatory Provisions. No Agent nor any of its officers, partners, directors, employees
or agents shall be liable to Lenders for any action taken or omitted by any Agent under or in
connection with any of the Loan Documents except to the extent caused by such Agent’s bad faith,
gross negligence or willful misconduct as determined by a court of competent jurisdiction in a
final, nonappealable order. Each Agent shall be entitled to refrain from any act or the taking of
any action (including the failure to take an action) in connection herewith or any of the other
Loan Documents or from the exercise of any power, discretion or authority vested in it hereunder
or thereunder unless and until such Agent shall have received instructions in respect thereof from
Required Lenders(or such other Lenders as may be required to give such instructions under Section
9.08) or, in the case of the Collateral Agent, in accordance with the Pledge and Security
Agreement or other applicable Security Document, and, upon receipt of such instructions from
Required Lenders(or such other Lenders, as the case may be), or in accordance with the Pledge and
Security Agreement or other applicable Security

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Document, as the case may be, such Agent shall be entitled to act or (where so instructed) refrain
from acting, or to exercise such power, discretion or authority, in accordance with such
instructions. Without prejudice to the generality of the foregoing, (i) each Agent shall be
entitled to rely, and shall be fully protected in relying, upon any communication, instrument or
document believed by it to be genuine and correct and to have been signed or sent by the proper
Person or Persons, and shall be entitled to rely and shall be protected and free from liability in
relying on opinions and judgments of attorneys (who may be attorneys for the Loan Parties),
accountants, experts and other professional advisors selected by it; and (ii) no Lender shall have
any right of action whatsoever against any Agent as a result of such Agent acting or (where so
instructed) refraining from acting hereunder or any of the other Loan Documents in accordance with
the instructions of Required Lenders(or such other Lenders as may be required to give such
instructions under Section 9.08) or, in the case of the Collateral Agent, in accordance with any
applicable Security Document.

          (c) Notice of Default. The Administrative Agent shall not be deemed to have knowledge or
notice of the occurrence of any Default or Event of Default, except with respect to Events of
Default in the payment of principal, interest and fees required to be paid to the Administrative
Agent for the account of the Lenders, unless the Administrative Agent shall have received written
notice from a Lender or the Borrower referring to this Agreement, describing such Default or Event
of Default and stating that such notice is a “notice of default.” The Administrative Agent will
notify the Lenders of its receipt of any such notice. The Administrative Agent shall take such
action with respect to any such Default or Event of Default as may be directed by the Required
Lenders in accordance with ARTICLE VII; provided, however, that unless and until the
Administrative Agent has received any such direction, the Administrative Agent may (but shall not
be obligated to) take such action, or refrain from taking such action, with respect to such
Default or Event of Default as it shall deem advisable or in the best interest of the Lenders.

          8.04. Agents Entitled to Act as Lender. The agency hereby created shall in no way impair or
affect any of the rights and powers of, or impose any duties or obligations upon, any Agent in its
individual capacity as a Lender hereunder. With respect to its participation in the Loans and the
Letters of Credit, each Agent shall have the same rights and powers hereunder as any other Lender
and may exercise the same as if it were not performing the duties and functions delegated to it
hereunder, and the term “Lender” shall, unless the context clearly otherwise indicates, include
each Agent in its individual capacity. Any Agent and its Affiliates may accept deposits from, lend
money to, own securities of, and generally engage in any kind of banking, trust, financial advisory
or other business with Holdings, the Borrower, the Affiliated Guarantors or any of their Affiliates
as if it were not performing the duties specified herein, and may accept fees and other
consideration from the Borrower for services in connection herewith and otherwise without having to
account for the same to Lenders.

          8.05. Lenders’ Representations, Warranties and Acknowledgment. (a) Each Lender represents and
warrants to the Agents that it has made its own independent investigation of the financial
condition and affairs of Holdings, the Borrower, the Affiliated Guarantors and their Subsidiaries,
without reliance upon any Agent or any other Lender and based on such documents and information as
it has deemed appropriate, in connection with Credit Extensions hereunder and that it has made and
shall continue to make its own appraisal of the creditworthiness of Holdings, the Borrower, the
Affiliated Guarantors and their Subsidiaries. No Agent shall have any duty or responsibility,
either initially or on a continuing basis, to make any

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such investigation or any such appraisal on behalf of Lenders or to provide any Lender with any
credit or other information with respect thereto, whether coming into its possession before the
making of the Loans or at any time or times thereafter, and no Agent shall have any responsibility
with respect to the accuracy of or the completeness of any information provided to Lenders.

          (b) Each Lender, by delivering its signature page to this Agreement and funding its Term Loan
on the Closing Date or by the funding of any new Term Loans, as the case may be, shall be deemed
to have acknowledged receipt of, and consented to and approved, each Loan Document and each other
document required to be approved by any Agent, Required Lenders or Lenders, as applicable on the
Closing Date or as of the date of funding of such new Term Loans.

          8.06. Right to Indemnity. Each Lender, in proportion to its applicable Commitment, severally
agrees to indemnify each Agent, their Affiliates and their respective officers, partners,
directors, trustees, employees, representatives and agents of each Agent (each, an “Indemnitee”),
to the extent that such Indemnitee shall not have been reimbursed by any Loan Party, for and
against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses (including counsel fees and disbursements) or disbursements of any kind or
nature whatsoever which may be imposed on, incurred by or asserted against such Indemnitee in
exercising its powers, rights and remedies or performing its duties hereunder or under the other
Loan Documents or otherwise in its capacity as such Indemnitee in any way relating to or arising
out of this Agreement or the other Loan Documents, IN ALL CASES, WHETHER OR NOT CAUSED BY OR
ARISING, IN WHOLE OR IN PART, OUT OF THE COMPARATIVE, CONTRIBUTORY, OR SOLE NEGLIGENCE OF SUCH
AGENT; provided, no Lender shall be liable for any portion of such liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements resulting
from such Indemnitee’s bad faith, gross negligence or willful misconduct as determined by a court
of competent jurisdiction in a final, nonappealable order. If any indemnity furnished to any
Indemnitee for any purpose shall, in the opinion of such Indemnitee, be insufficient or become
impaired, such Indemnitee may call for additional indemnity and cease, or not commence, to do the
acts indemnified against until such additional indemnity is furnished; provided, in no event shall
this sentence require any Lender to indemnify any Indemnitee against any liability, obligation,
loss, damage, penalty, action, judgment, suit, cost, expense or disbursement in excess of such
Lender’s Commitment proportion; and provided further, this sentence shall not be deemed to require
any Lender to indemnify any Indemnitee against any liability, obligation, loss, damage, penalty,
action, judgment, suit, cost, expense or disbursement described in the proviso in the immediately
preceding sentence.

          8.07. Successor Administrative Agent. (a) The Administrative Agent (and the Collateral Agent
as the case may be) may resign at any time by giving thirty (30) days’ prior written notice
thereof to Lenders and the Borrower. Upon any such notice of resignation, Required Lenders shall
have the right, upon five Business Days’ notice to the Borrower, to appoint a successor
Administrative Agent (or a successor Collateral Agent as the case may be). If no successor shall
have been so appointed by the Required Lenders and shall have accepted such appointment within
thirty (30) days after the retiring the Administrative Agent (or the retiring Collateral Agent)
gives notice of its resignation, then the retiring Administrative Agent (or the retiring
Collateral Agent) may, on behalf of the Lenders, appoint a successor Administrative Agent (or a
successor Collateral Agent) from among the Lenders. Upon the acceptance of any appointment as
Administrative Agent (or as Collateral Agent) hereunder by a successor

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Administrative Agent (or as Collateral Agent), that successor Administrative Agent (or that
successor Collateral Agent) shall thereupon succeed to and become vested with all the rights,
powers, privileges and duties of the retiring Administrative Agent (or the retiring Collateral
Agent) and the retiring Administrative Agent (or the retiring Collateral Agent) shall promptly (i)
transfer to such successor Administrative Agent (or to such successor Collateral Agent) all sums,
securities and other items of Collateral held under the Security Documents, together with all
records and other documents necessary or appropriate in connection with the performance of the
duties of the successor Administrative Agent (or successor Collateral Agent) under the Loan
Documents, and (ii) execute and deliver to such successor Administrative Agent (or such successor
Collateral Agent) such amendments to financing statements, and take such other actions, as may be
necessary or appropriate in connection with the assignment to such successor Administrative Agent
(or to such successor Collateral Agent) of the security interests created under the Security
Documents, whereupon such retiring Administrative Agent (or such retiring Collateral Agent) shall
be discharged from its duties and obligations hereunder. After any retiring Administrative Agent’s
(or any retiring Collateral Agent’s) resignation hereunder as Administrative Agent (or as
Collateral Agent), the provisions of this ARTICLE VIII shall inure to its benefit as to any actions
taken or omitted to be taken by it while it was Administrative Agent (or Collateral
Agent)hereunder.

     (b) Notwithstanding anything herein to the contrary, the Administrative Agent may assign its
rights and duties as Administrative Agent hereunder to an Affiliate of Silver Point Finance LLC,
any other financing source of Silver Point Finance LLC or Affiliate of Silver Point Finance LLC or
to any Lender without the prior written consent of, or prior written notice to, the Borrower or the
Lenders; provided that the Borrower and the Lenders may deem and treat such assigning
Administrative Agent as Administrative Agent for all purposes hereof, unless and until such
assigning Administrative Agent provides written notice to the Borrower and the Lenders of such
assignment. Upon such assignment such Affiliate shall succeed to and become vested with all rights,
powers, privileges and duties as Administrative Agent hereunder and under the other Loan Documents.

     (c) The Administrative Agent may perform any and all of its duties and exercise its rights and
powers under this Agreement or under any other Loan Document by or through any one or more
sub-agents appointed by the Administrative Agent. The Administrative Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or through their
respective Affiliates. The exculpatory, indemnification and other provisions of Section 8.03 and
Section 8.06 shall apply to any the Affiliates of the Administrative Agent and shall apply to their
respective activities in connection with the syndication of the credit facilities provided for
herein as well as activities as the Administrative Agent. All of the rights, benefits and
privileges (including the exculpatory and indemnification provisions) of Section 8.03 and of
Section 8.06 shall apply to any such sub-agent and to the Affiliates of any such sub-agent, and
shall apply to their respective activities as sub-agent as if such sub-agent and Affiliates were
named herein. Notwithstanding anything herein to the contrary, with respect to each sub-agent
appointed by the Administrative Agent, (i) such sub-agent shall be a third party beneficiary under
this Agreement with respect to all such rights, benefits and privileges (including exculpatory and
rights to indemnification) and shall have all of the rights, benefits and privileges of a third
party beneficiary, including an independent right of action to enforce such rights, benefits and
privileges (including exculpatory rights and rights to indemnification) directly, without the
consent or joinder of any other Person, against any or all of the Loan Parties and the Lenders,
(ii) such rights, benefits and privileges (including exculpatory rights and rights to
indemnification)

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shall not be modified or amended without the consent of such sub-agent, and (iii) such sub-agent
shall only have obligations to the Administrative Agent and not to any Loan Party, Lender or any
other Person and no Loan Party, Lender or any other Person shall have the rights, directly or
indirectly, as a third party beneficiary or otherwise, against such sub-agent.

     8.08. Security Documents. (a) Agents under Security Document. Each Lender hereby further
irrevocably authorizes the Administrative Agent or the Collateral Agent, as applicable, on behalf
of and for the benefit of Lenders, to be the agent for and representative of Lenders with respect
to the Guaranty, the Collateral and the Security Documents. Subject to Section 9.08, without
further written consent or authorization from Lenders, the Administrative Agent or the Collateral
Agent, as applicable, may execute any documents or instruments necessary to (i) release any Lien
encumbering any item of Collateral that is the subject of a sale or other disposition of assets
permitted hereby or to which Required Lenders(or such other Lenders as may be required to give such
consent under Section 9.08) have otherwise consented, or (ii) release any Guarantor in connection
with the sale of such Guarantor in a transaction permitted by Section 6.04 or with respect to which
Required Lenders(or such other Lenders as may be required to give such consent under Section 9.08)
have otherwise consented.

     (b) Right to Realize on Collateral and Enforce Security Documents.
Anything contained in any of the Loan Documents to the contrary notwithstanding, the Borrower, the
Administrative Agent, the Collateral Agent and each Lender hereby agree that (i) no Lender shall
have any right individually to realize upon any of the Collateral or to enforce any Security
Document, it being understood and agreed that all powers, rights and remedies hereunder may be
exercised solely by the Administrative Agent, on behalf of Lenders in accordance with the terms
hereof and all powers, rights and remedies under the Security Documents may be exercised solely by
the Collateral Agent, and (ii) in the event of a foreclosure by the Collateral Agent on any of the
Collateral pursuant to a public or private sale, the Collateral Agent or any Lender may be the
purchaser of any or all of such Collateral at any such sale and the Collateral Agent, as agent for
and representative of Secured Parties (but not any Lender or Lenders in its or their respective
individual capacities unless Required Lenders shall otherwise agree in writing) shall be entitled,
for the purpose of bidding and making settlement or payment of the purchase price for all or any
portion of the Collateral sold at any such public sale, to use and apply any of the Obligations as
a credit on account of the purchase price for any collateral payable by the Collateral Agent at
such sale.

     8.09. Posting of Approved Electronic Communications. (a) Delivery of Communications. Each
Loan Party hereby agrees, unless directed otherwise by the
Administrative Agent or unless the electronic mail address referred to below has not been provided
by the Administrative Agent to such Loan Party that it will, or will cause its subsidiaries to,
provide to the Administrative Agent all information, documents and other materials that it is
obligated to furnish to the Administrative Agent or to the Lenders pursuant to the Loan Documents,
including all notices, requests, financial statements, financial and other reports, certificates
and other information materials, but excluding any such communication that (i) is or relates to a
Borrowing or a notice of issuance of a Letter of Credit or a conversion or continuation notice,
(ii) relates to the payment of any principal or other amount due under this Agreement prior to the
scheduled date therefor, (iii) provides notice of any Default or Event of Default under this
Agreement or any other Loan Document or (iv) is required to be delivered to satisfy any condition
precedent to the effectiveness of this Agreement and/or any Loan or other extension of credit
hereunder (all such non-excluded communications being referred to herein collectively as

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“Communications”), by transmitting the Communications in an electronic/soft medium that is properly
identified in a format acceptable to the Administrative Agent to an electronic mail address as
directed by the Administrative Agent. In addition, each Loan Party agrees, and agrees to cause its
subsidiaries, to continue to provide the Communications to the Administrative Agent or the Lenders,
as the case may be, in the manner specified in the Loan Documents but only to the extent requested
by the Administrative Agent.

     (b) Platform. Each Loan Party further agrees that the Administrative Agent may make the
Communications available to the Lenders by posting the Communications on Intralinks or a
substantially similar electronic transmission system (the “Platform”).

     (c) No Warranties as to Platform. THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE
INDEMNITEES DO NOT WARRANT THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS OR THE ADEQUACY OF
THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS OR OMISSIONS IN THE COMMUNICATIONS. NO
WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS IS MADE BY THE
INDEMNITEES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE
INDEMNITEES HAVE ANY LIABILITY TO ANY LENDER OR ANY OTHER PERSON FOR DAMAGES OF ANY KIND, WHETHER
OR NOT BASED ON STRICT LIABILITY AND INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF
THE ADMINISTRATIVE
AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY
OF ANY INDEMNITEES IS FOUND IN A FINAL, NONAPPEALABLE ORDER BY A COURT OF COMPETENT JURISDICTION
TO HAVE RESULTED PRIMARILY FROM SUCH INDEMNITEE’S BAD FAITH, GROSS NEGLIGENCE OR WILLFUL
MISCONDUCT.

     (d) Delivery Via Platform. The Administrative Agent agrees that the receipt of the
Communications by the Administrative Agent at its electronic mail address set forth above shall
constitute effective delivery of the Communications to the Administrative Agent for purposes of the
Loan Documents. Each Lender agrees that receipt of notice to it (as provided in the next sentence)
specifying that the Communications have been posted to the Platform shall constitute effective
delivery of the Communications to such Lender for purposes of the Loan Documents. Each Lender
agrees to notify the Administrative Agent in writing (including by electronic communication) from
time to time of such Lender’s electronic mail address to which the foregoing notice may be sent by
electronic transmission and that the foregoing notice may be sent to such electronic mail address.

     (e) No Prejudice to Notice Rights. Nothing herein shall prejudice the right of the
Administrative Agent or any Lender to give any notice or other communication pursuant to any Loan
Document in any other manner specified in such Loan Document.

     8.10. Agents and Arrangers. Except as otherwise set forth herein, the Sole Bookrunner and
the Sole Lead Arranger shall not have any right, power, obligation, liability, responsibility or
duty under this Agreement (or any other Loan Document) other than those

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applicable to all Lenders as such. Without limiting the foregoing, the Sole Bookrunner and the Sole
Lead Arranger shall not have or be deemed to have any fiduciary relationship with any other Lender.
Each Lender acknowledges that it has not relied, and will not rely, on the Sole

Bookrunner and the Sole Lead Arranger in deciding to enter into this Agreement and each other
Loan Document to which it is a party or in taking or not taking action hereunder or thereunder.

ARTICLE IX

Miscellaneous

     9.01. Notices. Notices and other communications provided for herein shall be in writing and
shall be delivered by hand or overnight courier service, mailed by certified or registered mail or
sent by fax, as follows:

     (a) if to Holdings or the Borrower, to them at Tropicana Casinos and Resorts, Inc., 740 Center
View Blvd., Crestview Hills, KY 41017, Attention of Chief Financial Officer (Fax No. (859)
578-1190), with copies to Casinos and Resorts, Inc., 740 Center View Blvd., Crestview Hills, KY
41017, Attention of General Counsel (Fax No. (859) 578-1190) and Leonard Klingbaum, Kirkland &
Ellis LLP, 153 E. 53rd Street, New York, NY 10022-4611, (Fax No. (212) 446-6460);

     (b) if to the Administrative Agent, to Silver Point Finance, LLC, 2
Greenwich Plaza, 1st Floor, Greenwich, CT 06830, Attention of Arbab Khalid, Closing Admin, Phone:
203-542-4441, Fax: 203-286-2139 with a copy to Daniel S. Dokos, Weil, Gotshal & Manges LLP, 767
Fifth Avenue, New York City NY, 10015, (Fax No. (212) 310 8007; and

     (c) if to a Lender, to it at its address (or fax number) set forth on
Schedule 2.01 or in the Assignment and Acceptance pursuant to which such Lender shall have
become a party hereto.

     All notices and other communications given to any party hereto in accordance with the
provisions of this Agreement shall be deemed to have been given on the date of receipt if delivered
by hand or overnight courier service or sent by fax or on the date five Business Days after
dispatch by certified or registered mail if mailed, in each case delivered, sent or mailed
(properly addressed) to such party as provided in this Section 9.01 or in accordance with the
latest unrevoked direction from such party given in accordance with this Section 9.01. As agreed to
among Holdings, the Borrower, the Administrative Agent and the applicable Lenders from time to
time, notices and other communications may also be delivered by e-mail to the email address of a
representative of the applicable Person provided from time to time by such Person.

     9.02. Survival of Agreement. All covenants, agreements, representations and warranties made by
the Borrower or Holdings herein and in the certificates or other instruments prepared or delivered
in connection with or pursuant to this Agreement or any other Loan Document shall be considered to
have been relied upon by the Lenders and shall survive the making by the Lenders of the Loans and
the issuance of Letters of Credit by the Issuing Bank, regardless of any investigation made by the
Lenders or the Administrative Agent or on their behalf, and shall continue in full force and effect
as long as the principal of or any accrued interest on any Loan or any Fee or any other amount
payable under this Agreement or any other

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Loan Document is outstanding and unpaid or any Letter of Credit is outstanding and so long as the
Commitments have not been terminated. The provisions of Sections 2.15, 2.17, 2.21 and 9.05 shall
remain operative and in full force and effect regardless of the expiration of the term of this
Agreement, the consummation of the transactions contemplated hereby, the repayment of any of the
Loans, the expiration of the Commitments, the expiration of any Letter of Credit, the invalidity
or unenforceability of any term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of the Administrative Agent, the Collateral Agent or any
Lender.

     9.03. Binding Effect. This Agreement shall become effective upon the later of (a) when it
shall have been executed by the Borrower, Holdings, the Affiliated Guarantors and the
Administrative Agent and when the Administrative Agent shall have received counterparts hereof
which, when taken together, bear the signatures of each of the other parties hereto and (b) the
entry of the First Interim Order.

     9.04. Successors and Assigns. (a) Whenever in this Agreement any of the parties hereto is
referred to, such reference shall be deemed to include the permitted successors and assigns of
such party; and all covenants, promises and agreements by or on behalf of the Borrower, Holdings,
the Administrative Agent, the Collateral Agent or the Lenders that are contained in this Agreement
shall bind and inure to the benefit of their respective successors and assigns.

     (b) Each Lender may assign to one or more Eligible Assignees all or a portion of its
interests, rights and obligations under this Agreement (including all or a portion of its
Commitment and the Loans at the time owing to it); provided, however, that (i) the amount
of the Commitment or Loans of the assigning Lender subject to each such assignment (determined as
of the date the Assignment and Acceptance with respect to such assignment is delivered to the
Administrative Agent) shall be in an integral multiple of, and not less than, $1,000,000 (or, if
less, the entire remaining amount of such Lender’s Commitment or Loans), provided that
simultaneous assignments to or by two or more Affiliates or Related Funds shall be treated as one
assignment for purposes of this minimum assignment requirement if such Affiliates or Related Funds
are managed and advised by the same investment advisor, (ii) the parties to each such assignment
shall execute and deliver to the Administrative Agent an Assignment and Acceptance via an
electronic settlement system acceptable to the Administrative Agent (or, if previously agreed with
the Administrative Agent, manually), and shall pay to the Administrative Agent a processing and
recordation fee of $3,500 (which fee may be waived or reduced in the sole discretion of the
Administrative Agent), and (iii) the assignee, if it shall not be a Lender, shall deliver to the
Administrative Agent an Administrative Questionnaire and all applicable tax forms. Upon acceptance
and recording pursuant to Section 9.04(e), from and after the effective date specified in each
Assignment and Acceptance, (A) the assignee thereunder shall be a party hereto and, to the extent
of the interest assigned by such Assignment and Acceptance, have the rights and obligations of a
Lender under this Agreement and (B) the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Acceptance, be released from its obligations under this
Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion
of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be
a party hereto but shall continue to be entitled to the benefits of Sections 2.15, 2.17, 2.21 and
9.05, as well as to any Fees accrued for its account and not yet paid).

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     (c) By executing and delivering an Assignment and Acceptance, the assigning Lender thereunder
and the assignee thereunder shall be deemed to confirm to and agree with each other and the other
parties hereto as follows: (i) such assigning Lender warrants that it is the legal and beneficial
owner of the interest being assigned thereby free and clear of any adverse claim and that its
Commitment, and the outstanding balances of its Term Loans, in each case without giving effect to
assignments thereof which have not become effective, are as set forth in such Assignment and
Acceptance, (ii) except as set forth in (i) above, such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to any statements, warranties or
representations made in or in connection with this Agreement, or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of this Agreement, any other Loan Document or any
other instrument or document furnished pursuant hereto, or the financial condition of the Borrower,
any Subsidiary or any Affiliated Guarantor or the performance or observance by the Borrower, any
Subsidiary or any Affiliated Guarantor of any of its obligations under this Agreement, any other
Loan Document or any other instrument or document furnished pursuant hereto; (iii) such assignee
represents and warrants that it is legally authorized to enter into such Assignment and Acceptance;
(iv) such assignee confirms that it has received a copy of this Agreement, together with copies of
the most recent financial statements referred to in Sections 3.05(a) or delivered pursuant to
Section 5.04 and such other documents and information as it has deemed appropriate to make its own
credit analysis and decision to enter into such Assignment and Acceptance; (v) such assignee will
independently and without reliance upon the Administrative Agent, the Collateral Agent, such
assigning Lender or any other Lender and based on such documents and information as it shall deem
appropriate at the time, continue to make its own credit decisions in taking or not taking action
under this Agreement; (vi) such assignee appoints and authorizes the Administrative Agent and the
Collateral Agent to take such action as agent on its behalf and to exercise such powers under this
Agreement as are delegated to the Administrative Agent and the Collateral Agent, respectively, by
the terms hereof, together with such powers as are reasonably incidental thereto; and (vii) such
assignee agrees that it will perform in accordance with their terms all the obligations which by
the terms of this Agreement are required to be performed by it as a Lender.

     (d) The Administrative Agent, acting for this purpose as an agent of the Borrower, shall
maintain at one of its offices in The City of New York a copy of each Assignment and Acceptance
delivered to it and a register for the recordation of the names and addresses of the Lenders, and
the Commitment of, and principal amount of and interest on the Loans owing to, each Lender pursuant
to the terms hereof from time to time (the “Register”). The entries in the Register shall
be conclusive and the Borrower, the Administrative Agent, the Collateral Agent and the Lenders may
treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender
hereunder for all purposes of this Agreement, notwithstanding notice to the contrary. The Register
shall be available for inspection by the Borrower, and a redacted version of the Register showing
the entries with respect to any Lender shall be available for inspection by such Lender, at any
reasonable time and from time to time upon reasonable prior notice.

     (e) Upon its receipt of, and consent to, a duly completed Assignment and Acceptance executed
by an assigning Lender and an assignee, an Administrative Questionnaire completed in respect of the
assignee (unless the assignee shall already be a Lender hereunder), the processing and recordation
fee referred to in Section 9.04(b), if applicable, and the written consent of the Administrative
Agent and, if required, the Borrower, to such assignment and any applicable tax forms, the
Administrative Agent shall promptly (i) accept such Assignment and

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Acceptance and (ii) record the information contained therein in the Register. No assignment shall
be effective unless it has been recorded in the Register as provided in this Section 9.04(e).

     (f) Each Lender may without the consent of the Borrower or the
Administrative Agent sell participations to one or more banks or other Persons in all or a portion
of its rights and obligations under this Agreement (including all or a portion of its Commitment
and the Loans owing to it); provided, however, that (i) such Lender’s obligations under
this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the
other parties hereto for the performance of such obligations, (iii) the participating banks or
other Persons shall be entitled to the benefit of the cost protection provisions contained in
Sections 2.15, 2.17 and 2.21 to the same extent as if they were Lenders (but, with respect to any
particular participant, to no greater extent than the Lender that sold the participation to such
participant) and (iv) the Borrower, the Administrative Agent and the Lenders shall continue to
deal solely and directly with such Lender in connection with such Lender’s rights and obligations
under this Agreement, and such Lender shall retain the sole right to enforce the obligations of
the Borrower relating to the Loans and to approve any amendment, modification or waiver of any
provision of this Agreement (other than amendments, modifications or waivers decreasing any fees
payable to such participating bank or Person hereunder or the amount of principal of or the rate
at which interest is payable on the Loans in which such participating bank or Person has an
interest, extending any scheduled principal payment date or date fixed for the payment of interest
on the Loans in which such participating bank or Person has an interest, increasing or extending
the Commitments in which such participating bank or Person has an interest or releasing any
Guarantor (other than in connection with the sale of such Guarantor in a transaction permitted by
Section 6.04) or all or substantially all of the Collateral).

     (g) Any Lender or participant may, in connection with any assignment or participation or
proposed assignment or participation pursuant to this Section 9.04, disclose to the assignee or
participant or proposed assignee or participant any information relating to the Borrower furnished
to such Lender by or on behalf of the Borrower; provided that, prior to any such disclosure
of information designated by the Borrower as confidential, each such assignee or participant or
proposed assignee or participant shall execute an agreement whereby such assignee or participant
shall agree (subject to customary exceptions) to preserve the confidentiality of such confidential
information on terms no less restrictive than those applicable to the Lenders pursuant to Section
9.19.

     (h) Any Lender may at any time assign all or any portion of its rights under this Agreement to
secure extensions of credit to such Lender or in support of obligations owed by such Lender;
provided that no such assignment shall release a Lender from any of its obligations hereunder or
substitute any such assignee for such Lender as a party hereto.

     (i) Notwithstanding anything to the contrary contained herein, any Lender (a “Granting
Lender”) may grant to a special purpose funding vehicle (an “SPC”), identified as such
in writing from time to time by the Granting Lender to the Administrative Agent and the Borrower,
the option to provide to the Borrower all or any part of any Loan that such Granting Lender would
otherwise be obligated to make to the Borrower pursuant to this Agreement; provided that
(i) nothing herein shall constitute a commitment by any SPC to make any Loan and (ii) if an SPC
elects not to exercise such option or otherwise fails to provide all or any part of such Loan, the
Granting Lender shall be obligated to make such Loan pursuant to the terms hereof. The making of a
Loan by an SPC hereunder shall utilize the Commitment of the

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Granting Lender to the same extent, and as if, such Loan were made by such Granting Lender. Each
party hereto hereby agrees that no SPC shall be liable for any indemnity or similar payment
obligation under this Agreement (all liability for which shall remain with the Granting Lender). In
furtherance of the foregoing, each party hereto hereby agrees (which agreement shall survive the
termination of this Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior indebtedness of any SPC, it
will not institute against, or join any other Person in instituting against, such SPC any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under the laws of
the United States or any State thereof. In addition, notwithstanding anything to the contrary
contained in this Section 9.04, any SPC may (i) with notice to, but without the prior written
consent of, the Borrower and the Administrative Agent and without paying any processing fee
therefor, assign all or a portion of its interests in any Loans to the Granting Lender or to any
financial institutions (consented to by the Borrower and the Administrative Agent) providing
liquidity and/or credit support to or for the account of such SPC to support the funding or
maintenance of Loans and (ii) disclose on a confidential basis any non-public information relating
to its Loans to any rating agency, commercial paper dealer or provider of any surety, guarantee or
credit or liquidity enhancement to such SPC.

     (j) Neither Holdings nor the Borrower shall assign or delegate any of its rights or duties
hereunder without the prior written consent of the Administrative Agent and each Lender, and any
attempted assignment without such consent shall be null and void.

     (k) In addition to any other assignment permitted pursuant to this Section 9.04, any Lender
may assign and/ or pledge all or any portion of its Loans, the other Obligations owed by or to
such Lender, and its promissory notes, if any, to secure obligations of such Lender including to
any Federal Reserve Bank as collateral security pursuant to Regulation A of the Board of Governors
of the Federal Reserve System and any operating circular issued by such Federal Reserve Bank;
provided that no Lender, as between the Borrower and such Lender, shall be relieved of any
of its obligations hereunder as a result of any such assignment and pledge; and provided
further that, in no event shall the applicable Federal Reserve Bank, pledgee or trustee be
considered to be a “Lender” or be entitled to require the assigning Lender to take or omit
to take any action hereunder.

     (l) Notwithstanding anything to the contrary in this Section 9.04, no assignment made nor
participation sold shall conflict in any way with applicable Gaming Laws.

     9.05. Expenses; Indemnity. (a) Holdings, the Borrower and each Loan Party agrees to pay
promptly, and in any event within 2 Business Days after written demand therefore, (i) all the
actual reasonable, documented costs and out-of-pocket expenses of preparation of the Loan
Documents and any consents, amendments, waivers or other modifications thereto; (ii) all the costs
of furnishing all opinions by counsel for the Borrower and the other Loan Parties; (iii) the
reasonable and documented fees, out-of pocket expenses and disbursements of one firm of attorneys
per jurisdiction and per practice area to the Agents in connection with the negotiation,
preparation, execution and administration of the Loan Documents, including the reasonable fees,
charges and out-of-pocket expenses of Weil, Gotshal & Manges, LLP and any consents, amendments,
waivers or other modifications thereto and any other documents or matters requested by the
Borrower; (iv) all the actual reasonable, documented costs and expenses of creating and perfecting
Liens in favor of the Collateral Agent, for the benefit of Secured Parties pursuant hereto,
including filing and recording fees, expenses and amounts owed pursuant to

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Section 2.21, search fees, title insurance premiums and fees, expenses and disbursements of counsel
to each Agent and of counsel providing any opinions that any Agent or Required Lenders may request
in respect of the Collateral or the Liens created pursuant to the Security Documents; (v) all the
actual reasonable, documented costs and fees, expenses and disbursements of any auditors,
accountants, consultants or appraisers whether internal or external; (vi) all the actual
reasonable, documented costs and expenses (including the reasonable and documented fees,
out-of-pockets expenses and disbursements of one firm of attorneys per jurisdiction and per
practice area and of any appraisers, consultants, advisors and agents reasonably employed or
retained by the Collateral Agent and its counsel) in connection with the custody or preservation of
any of the Collateral; (vii) all other actual reasonable, documented costs and expenses incurred by
each Agent in connection with the syndication of the Loans and Commitments and the negotiation,
preparation and execution of the Loan Documents and any consents, amendments, waivers or other
modifications thereto and the transactions contemplated thereby; (viii) all actual and documented
costs and expenses incurred by the Agents or any Lender, including the fees, charges and
disbursements of advisors for any of the foregoing, incurred in connection with the enforcement or
protection of its rights under the Loan Documents, or in connection with the Loans made or Letters
of Credit issued hereunder and the collection of the Obligations and (ix) after the occurrence of a
Default or an Event of Default, all actual and documented costs and expenses, including attorneys’
fees and costs of settlement, incurred by any Agent and any Lender in enforcing any Obligations of
or in collecting any payments due from any Loan Party hereunder or under the other Loan Documents
by reason of such Default or Event of Default (including in connection with the sale of, collection
from, or other realization upon any of the Collateral or the enforcement of the Security Documents)
or in connection with any refinancing or restructuring of the credit arrangements provided
hereunder in the nature of a “work out” or pursuant to any insolvency or bankruptcy cases or
proceedings.

     (b) Holdings and the Borrower agree, jointly and severally, to indemnify the Administrative
Agent, the Collateral Agent, each Lender, the Issuing Bank and each Related Party of any of the
foregoing persons (each such person being called an “Indemnitee”) against, and to hold each
Indemnitee harmless from, any and all losses, claims, damages, liabilities and related reasonable
and documented out-of-pocket expenses, including reasonable fees of one firm of attorneys per
jurisdiction and per practice area, charges and disbursements, incurred by or asserted against any
Indemnitee arising out of, in any way connected with, or as a result of (i) the execution or
delivery of this Agreement or any other Loan Document or any agreement or instrument contemplated
thereby, the performance by the parties thereto of their respective obligations thereunder and the
other transactions contemplated thereby (including the syndication of the Credit Facilities), (ii)
the use of the proceeds of the Loans or issuance of Letters of Credit, (iii) any claim, litigation,
investigation or proceeding relating to any of the foregoing, whether or not any Indemnitee is a
party thereto (and regardless of whether such matter is initiated by a third party or by Holdings,
any other Loan Party or any of their respective Affiliates), or (iv) any actual or alleged presence
or Release of Hazardous Materials on any property currently or formerly owned or operated by the
Borrower, any of the Subsidiaries or any of the Affiliated Guarantors, or any Environmental
Liability related in any way to the Borrower, the Subsidiaries or the Affiliated Guarantors, in all
cases, whether or not caused by or arising, in whole or in part, out of the comparative,
contributory, or sole negligence of such Agent or Lender; provided that such indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages,
liabilities or related expenses are determined by a court of competent jurisdiction by final and
nonappealable judgment to have resulted from the bad faith, gross negligence or willful misconduct
of such Indemnitee. To the extent that the undertakings to defend, indemnify, pay

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and hold harmless set forth in this Section 9.05(b) may be unenforceable in whole or in part
because they are violative of any law or public policy, the applicable Loan Party shall
contribute the maximum portion that it is permitted to pay and satisfy under applicable law to
the payment and satisfaction of all indemnified liabilities incurred by Indemnitees or any of
them.

     (c) To the extent that Holdings and the Borrower fail to pay any amount required to be paid by
them to the Administrative Agent or the Collateral Agent under Section 9.05(a) or 9.05(b) (but
without affecting the obligations of Holdings or the Borrower to make such payment), each Lender
severally agrees to pay to the Administrative Agent or the Collateral Agent, as the case may be,
such Lender’s pro rata share (determined as of the time that the applicable unreimbursed expense or
indemnity payment is sought) of such unpaid amount; provided that the unreimbursed expense
or indemnified loss, claim, damage, liability or related expense, as the case may be, was incurred
by or asserted against the Administrative Agent or the Collateral Agent in its capacity as such.
For purposes hereof, a Lender’s “pro rata share” shall be determined based upon its share
of the sum of the outstanding Term Loans and unused Commitments at the time.

     (d) To the extent permitted by applicable law, neither Holdings nor the Borrower shall assert,
and each hereby waives, any claim against any Indemnitee, on any theory of liability, for special,
indirect, consequential or punitive damages (as opposed to direct or actual damages) arising out
of, in connection with, or as a result of, this Agreement or any agreement or instrument
contemplated hereby, any Loan or Letter of Credit or the use of the proceeds thereof. (e) The
provisions of this Section 9.05 shall remain operative and in full force and effect regardless of
the expiration of the term of this Agreement, the repayment of any of the Loans, the expiration of
the Commitments, the expiration of any Letter of Credit, the invalidity or unenforceability of any
term or provision of this Agreement or any other Loan Document, or any investigation made by or on
behalf of the Administrative Agent, the Collateral Agent or any Lender. All amounts due under this
Section 9.05 shall be payable on written demand therefor.

     9.06. Right of Setoff. If an Event of Default shall have occurred and be continuing, each
Lender is hereby authorized at that time and from time to time thereafter while such Event of
Default is subsisting, except to the extent prohibited by law, to set off and apply any and all
deposits (general or special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender to or for the credit or the account of Holdings or
the Borrower against any of and all the obligations of Holdings or the Borrower now or hereafter
existing under this Agreement and other Loan Documents held by such Lender, irrespective of whether
or not such Lender shall have made any demand under this Agreement or such other Loan Document. The
rights of each Lender under this Section 9.06 are in addition to other rights and remedies
(including other rights of setoff) which such Lender may have.

     9.07. Applicable Law. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (OTHER THAN LETTERS OF
CREDIT AND AS EXPRESSLY SET FORTH IN OTHER LOAN DOCUMENTS) SHALL BE CONSTRUED IN ACCORDANCE WITH
AND GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH LETTER OF CREDIT SHALL BE GOVERNED BY,
AND SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OR RULES DESIGNATED IN SUCH LETTER OF CREDIT,
OR IF NO SUCH LAWS OR RULES ARE DESIGNATED, THE UNIFORM CUSTOMS AND
PRACTICE FOR DOCUMENTARY CREDITS MOST RECENTLY PUBLISHED AND IN EFFECT, ON THE DATE SUCH LETTER
OF CREDIT WAS ISSUED, BY THE

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INTERNATIONAL CHAMBER OF COMMERCE (THE “UNIFORM CUSTOMS”) AND, AS TO MATTERS NOT GOVERNED
BY THE UNIFORM CUSTOMS, THE LAWS OF THE STATE OF NEW YORK.

     9.08. Waivers; Amendment. (a) No failure or delay of the Administrative Agent, the Collateral
Agent or any Lender in exercising any power or right hereunder or under any other Loan Document
shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or
power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any
other or further exercise thereof or the exercise of any other right or power. The rights and
remedies of the Administrative Agent, the Collateral Agent and the Lenders hereunder and under the
other Loan Documents are cumulative and are not exclusive of any rights or remedies that they would
otherwise have. No waiver of any provision of this Agreement or any other Loan Document or consent
to any departure by the Borrower or any other Loan Party therefrom shall in any event be effective
unless the same shall be permitted by Section 9.08(b), and then such waiver or consent shall be
effective only in the specific instance and for the purpose for which given. No notice or demand on
Holdings or the Borrower in any case shall entitle Holdings or the Borrower to any other or further
notice or demand in similar or other circumstances.

     (b) Neither this Agreement nor any provision hereof may be waived, amended or modified except
pursuant to an agreement or agreements in writing entered into by the Borrower, Holdings and the
Required Lenders; provided, however, that no such agreement shall (i) decrease the
principal amount of, or extend the maturity of or any scheduled principal payment date or date for
the payment of any interest on any Loan, or waive or excuse any such payment or any part thereof,
or decrease the rate of interest on any Loan, without the prior written consent of each Lender
directly adversely affected thereby, (ii) increase or extend the Commitment or decrease or extend
the date for payment of any Fees of any Lender without the prior written consent of such Lender,
(iii) amend or modify the pro rata requirements of Section 2.18, the definition of “Pro Rata
Share”, the provisions of Section 9.04(j) or the provisions of this Section or release any
Guarantor (other than in connection with the sale of such Guarantor in a transaction permitted by
Section 6.04) or all or substantially all of the Collateral, without the prior written consent of
each Lender, (iv) modify the protections afforded to an SPC pursuant to the provisions of Section
9.04(i) without the written consent of such SPC or (v) reduce the percentage contained in the
definition of the term “Required Lenders” without the prior written consent of each Lender
(it being understood that with the consent of the Required Lenders, additional extensions of credit
pursuant to this Agreement may be included in the determination of the Required Lenders on
substantially the same basis as the Commitments on the date hereof); provided further that
no such agreement shall amend, modify or otherwise affect the rights or duties of the
Administrative Agent or the Collateral Agent hereunder or under any other Loan Document without the
prior written consent of the Administrative Agent or the Collateral Agent.

     (c) Notwithstanding anything to the contrary in this Agreement, the Administrative Agent may,
in consultation with the Borrower, make changes to this Agreement without the consent of the
Required Lenders that would provide for the creation of multiple tranches of Term Loans separating
funded and unfunded portions thereof in amounts to be determined by the Administrative Agent, but
only to the extent such changes (i) do not relate to the economic terms of the Term Loans
(including interest rate and Prepayment Premium), (ii) do

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not reduce the amount of the Total Commitments and (iii) are not otherwise adverse to the
Borrower and its subsidiaries.

     (d) To the extent required by any Gaming Law, the Borrower shall notify all relevant Gaming
Authorities of any amendment to this Agreement or any Loan Document.

     9.09. Application of Gaming Laws. (a) This Agreement and the other Loan Documents are subject
to Gaming Laws and laws involving the sale and distribution of liquor (the “Liquor Laws”).
Without limiting the foregoing, each of the Administrative Agent and the Lenders acknowledges that
(i) it is subject to the jurisdiction of the Gaming Authorities or Governmental Authorities
enforcing such Gaming Laws or Liquor Laws (and to be called forward by such Gaming Authorities or
Governmental Authorities), in their discretion, for licensing, qualification or findings of
suitability or to file or provide other information and (ii) all rights, remedies and powers in or
under this Agreement and the other Loan Documents, including with respect to the Collateral and the
ownership, possession and operation of facilities subject to the jurisdiction of the Gaming
Authorities, may be exercised only to the extent that the exercise thereof does not violate any
applicable provisions of the Gaming Laws and Liquor Laws and only to the extent that required
approvals (including prior approvals) are obtained from the relevant Gaming Authorities.

     (b) Each of the Administrative Agent and the Lenders agrees to cooperate with all Gaming
Authorities in connection with the provision of such documents and other information as may be
requested by such Gaming Authorities relating to the Loan Parties or Loan Documents.

     (c) Each of the Administrative Agent and the Lenders acknowledges and agrees that if the
Borrower receives a notice from any applicable Gaming Authority that a Lender is a Disqualified
Lender (and such Lender is notified by the Borrower and the Administrative Agent in writing of
such disqualification), the Borrower shall have the right to (i) cause such Disqualified Lender to
transfer and assign, without recourse (in accordance with Section 9.04) all of its interests,
rights and obligations in Loans or Commitments or (ii) in the event that (A) the Borrower is
unable to assign such Lender’s Loans or Commitments after using its best efforts to cause such an
assignment and (B) no Default or Event of Default has occurred and is continuing, prepay such
Disqualified Lender’s Loans and terminate its Commitments; provided, however, that in the
event that a Lender is disqualified by the NJ Commission, the Disqualified Lender’s Loan may be
prepaid regardless of whether a Default or Event of Default has occurred or is continuing. Notice
to such Disqualified Lender shall be given ten days prior to the required date of assignment or
prepayment, as the case may be, and shall be accompanied by evidence demonstrating that such
transfer or prepayment is required pursuant to Gaming Laws. Upon receipt of a notice in accordance
with the foregoing, the Disqualified Lender shall cooperate with the Borrower in effectuating the
required assignment or prepayment within the time period set forth in such notice and, in any
event, not to be less than the minimum notice period set forth in the foregoing sentence.
Notwithstanding anything herein to the contrary, any prepayment of a Disqualified Lender’s Loans
pursuant to this Section 9.09(c) shall be at a price equal to the lesser of (i) an amount equal to
the sum of the principal amount of such Loans and interest at the date such Lender became a
Disqualified Lender (plus any Fees and other amounts accrued for the account of such Disqualified
Lender to the date such Lender became a Disqualified Lender), (ii) the price at which such Lender
acquired its Loans and interest to the date such Lender became a Disqualified Lender (plus Fees
and other amounts accrued for the account of such Disqualified

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Lender to the date such Lender became a Disqualified Lender), (iii) such lower price as may be
reasonably available in the syndicated loan market for the assignment of such Loans and (iv) such
other amount as may be required by any such Gaming Authority.

     (d) If during the existence of an Event of Default hereunder or under any of the other Loan
Documents it shall become necessary or, in the opinion of the Required Lenders, advisable for an
agent, supervisor, receiver or other representative of the Administrative Agent or the Lenders to
become licensed or found qualified under any Gaming Law as a condition of receiving the benefit of
the Collateral encumbered by the Security Documents or other Loan Documents or to otherwise enforce
the rights of the Administrative Agent and the Lenders under the Loan Documents, the Borrower
hereby agrees to consent to the application for such license or qualification and to execute such
further documents as may be required in connection with the evidencing of such consent.

     (e) For the avoidance of doubt, each of the Administrative Agent and the Lenders acknowledge
that, with respect to any Collateral held in Indiana, Indiana Code 4-33-4-21 provides that a
licensed owner or any other person may not lease, hypothecate, borrow or loan money against an
owner’s license. Therefore, in no event shall the Collateral include any Indiana gaming license or
any interest therein and each of the Administrative Agent and the Lenders hereby acknowledge,
confirm and agree that they have no interest in, or rights with respect to, any Indiana gaming
license.

     9.10. Interest Rate Limitation. Notwithstanding anything herein to the contrary, if at any
time the interest rate applicable to any Loan, together with all fees, charges and other amounts
which are treated as interest on such Loan under applicable law (collectively the “Charges”), shall
exceed the maximum lawful rate (the “Maximum Rate”) which may be contracted for, charged,
taken, received or reserved by the Lender holding such Loan or participation in accordance with
applicable law, the rate of interest payable in respect of such Loan or participation hereunder,
together with all Charges payable in respect thereof, shall be limited to the Maximum Rate and, to
the extent lawful, the interest and Charges that would have been payable in respect of such Loan or
participation but were not payable as a result of the operation of this Section 9.10 shall be
cumulated and the interest and Charges payable to such Lender in respect of other Loans or
participations or periods shall be increased (but not above the Maximum Rate therefor) until such
cumulated amount, together with interest thereon at the Federal Funds Effective Rate to the date of
repayment, shall have been received by such Lender.

     9.11. Entire Agreement. This Agreement, the Fee Letter and the other Loan Documents constitute
the entire contract between the parties relative to the subject matter hereof. Any other previous
agreement among the parties with respect to the subject matter hereof is superseded by this
Agreement and the other Loan Documents. Nothing in this Agreement or in the other Loan Documents,
expressed or implied, is intended to confer upon any Person (other than the parties hereto and
thereto, their respective successors and assigns permitted hereunder (including any Affiliate of
the Issuing Bank that issues any Letter of Credit) and, to the extent expressly contemplated
hereby, the Related Parties of each of the Administrative Agent, the Collateral Agent, the Issuing
Bank and the Lenders) any rights, remedies, obligations or liabilities under or by reason of this
Agreement or the other Loan Documents.

     9.12. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY RIGHT

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IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF,
UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS. EACH PARTY HERETO
(A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN
INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG OTHER
THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.12.

     9.13. Marshalling; Payments Set Aside. Neither any Agent nor any Lender shall be under any
obligation to marshal any assets in favor of any Loan Party or any other Person or against or in
payment of any or all of the Obligations. To the extent that any Loan Party makes a payment or
payments to the Administrative Agent or the Lenders (or to the Administrative Agent, on behalf of
the Lenders), or the Administrative Agent, the Collateral Agent or the Lenders enforce any security
interests or exercise their rights of setoff, and such payment or payments or the proceeds of such
enforcement or setoff or any part thereof are subsequently invalidated, declared to be fraudulent
or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party
under any bankruptcy law, any other state or federal law, common law or any equitable cause, then,
to the extent of such recovery, the obligation or part thereof originally intended to be satisfied,
and all Liens, rights and remedies therefor or related thereto, shall be revived and continued in
full force and effect as if such payment or payments had not been made or such enforcement or
setoff had not occurred.

     9.14. Severability. In the event any one or more of the provisions contained in this
Agreement or in any other Loan Document should be held invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions contained herein and
therein shall not in any way be affected or impaired thereby (it being understood that the
invalidity of a particular provision in a particular jurisdiction shall not in and of itself affect
the validity of such provision in any other jurisdiction). The parties shall endeavor in good-faith
negotiations to replace the invalid, illegal or unenforceable provisions with valid provisions the
economic effect of which comes as close as possible to that of the invalid, illegal or
unenforceable provisions.

     9.15. Independence of Covenants. All covenants hereunder shall be given independent effect
so that if a particular action or condition is not permitted by any of such covenants, the fact
that it would be permitted by an exception to, or would otherwise be within the limitations of,
another covenant shall not avoid the occurrence of a Default or an Event of Default if such
action is taken or condition exists.

     9.16. Counterparts. This Agreement may be executed in counterparts (and by different parties
hereto on different counterparts), each of which shall constitute an original but all of which
when taken together shall constitute a single contract, and shall become effective as provided in
Section 9.03. Delivery of an executed signature page to this Agreement by facsimile transmission
shall be as effective as delivery of a manually signed counterpart of this Agreement.

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     9.17. Headings. Article and Section headings and the Table of Contents used herein are for
convenience of reference only, are not part of this Agreement and are not to affect the
construction of, or to be taken into consideration in interpreting, this Agreement.

     9.18. Jurisdiction; Consent to Service of Process. (a) Each of Holdings and the Borrower
hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive
jurisdiction of either (i) the Bankruptcy Court or (ii) the United States District Court for the
Southern District of New York, or if that court does not have subject matter jurisdiction, in any
New York State court sitting in New York City, and any appellate court from any thereof, in any
action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or
for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably
and unconditionally agrees that all claims in respect of any such action or proceeding may be heard
and determined in such New York State or, to the extent permitted by law, in such Federal court.
Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Nothing in this Agreement shall affect any right that the Administrative
Agent, the Collateral Agent or any Lender may otherwise have to bring any action or proceeding
relating to this Agreement or the other Loan Documents against the Borrower, Holdings, or their
respective properties in the courts of any jurisdiction.

     (b) Each of Holdings and the Borrower hereby irrevocably and unconditionally waives, to the
fullest extent it may legally and effectively do so, any objection which it may now or hereafter
have to the laying of venue of any suit, action or proceeding arising out of or relating to this
Agreement or the other Loan Documents in any New York State or Federal court. Each of the parties
hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding in any such court.

     (c) Each party to this Agreement irrevocably consents to service of process in the manner
provided for notices in Section 9.01. Nothing in this Agreement will affect the right of any party
to this Agreement to serve process in any other manner permitted by law.

     9.19. Confidentiality. Each of the Administrative Agent, the Collateral Agent and the Lenders
agrees to maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed (a) to its Affiliates and its Affiliates’ officers, directors,
trustees, employees and agents, including accountants, legal counsel and other advisors (it being
understood that the Persons to whom such disclosure is made will be informed of the confidential
nature of such Information and instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority or quasi-regulatory authority (such as the National
Association of Insurance Commissioners), (c) to the extent required by applicable laws or
regulations or by any subpoena or similar legal process, (d) in connection with the exercise of any
remedies hereunder or under the other Loan Documents or any suit, action or proceeding relating to
the enforcement of its rights hereunder or thereunder, (e) subject to an agreement containing
provisions substantially the same as those of this Section 9.19, to (i) any actual or prospective
assignee of or participant in any of its rights or obligations under this Agreement and the other
Loan Documents or (ii) any actual or prospective counterparty (or its advisors) to any swap or
derivative transaction relating to the Borrower, any Subsidiary or any Affiliated Guarantor or any
of their respective obligations, (f) with the consent of the Borrower or (g) to the extent such
Information becomes publicly available other than as a result of a breach of this Section 9.19. For

99

 

the purposes of this Section, “Information” shall mean all information received from
Holdings or the Borrower and related to Holdings or the Borrower or their business, other than any
such information that was available to the Administrative Agent, the Collateral Agent or any Lender
on a non confidential basis prior to its disclosure by Holdings or the Borrower; provided
that, in the case of Information received from Holdings or the Borrower after the date hereof, such
information is clearly identified at the time of delivery as confidential. Any Person required to
maintain the confidentiality of Information as provided in this Section 9.19 shall be considered to
have complied with its obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord its own confidential
information.

     9.20. USA PATRIOT Act Notice. Each Lender and the Administrative Agent (for itself and not on
behalf of any Lender) hereby notifies Holdings, the Borrower and the Subsidiary Guarantors that
pursuant to the requirements of the USA PATRIOT Act, it is required to obtain, verify and record
information that identifies Holdings, the Borrower and the Subsidiary Guarantors, which
information includes the name and address of Holdings, the Borrower and the Subsidiary Guarantors
and other information that will allow such Lender or the Administrative Agent, as applicable, to
identify Holdings, the Borrower and the Subsidiary Guarantors in accordance with the USA PATRIOT
Act. IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed by
their respective authorized officers as of the day and year first above written.

     9.21. Disclosure. Each Loan Party and each Lender hereby acknowledges and agrees that
Administrative Agent and/or its Affiliates and their respective Related Funds from time to time may
hold investments in, and make other loans to, or have other relationships with any of the Loan
Parties and their respective Affiliates, including the ownership, purchase and sale of equity
interests in Holdings, the Borrower or the Affiliated Guarantors, and each Loan Party and each
Lender hereby expressly consents to such relationships.

100

 

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

	 	 	 	 	 
	 	 	TROPICANA ENTERTAINMENT, LLC,
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	by:	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	TROPICANA ENTERTAINMENT
 INTERMEDIATE HOLDINGS, LLC,
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	by:	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	CP LAUGHLIN REALTY, LLC,
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	by:	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	 	JMBS CASINO LLC,
	 
	 	 	 	 
	 

	 	 	 	 
	 

	 	by:	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

 

	 	 	 	 	 	 	 
	 	 	SILVER POINT FINANCE, LLC,

as Administrative and Collateral Agent
	 
	 	 	 	 	 	 
	 

	 	by:
	 	/s/ Zachary M. Zeitlin	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:
	 	Zachary M. Zeitlin	 	 
	 

	 	Title:
	 	Authorized Signatory	 	 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	SPCP GROUP, LLC

 	 
	 	by:
/s/ Zachary M Zeitlin
 	 
	 	Name:  	Zachary M Zeitlin 	 
	 	Title:  	Authorized Signatory 	 
	 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

 

	 	 	 	 	 
	 	SPF CDO I LTD.,

 	 
	 	by:
/s/ Zachary M Zeitlin
 	 
	 	Name:  	Zachary M Zeitlin 	 
	 	Title:  	Authorized Signatory 	 
	 

[SIGNATURE PAGE TO CREDIT AGREEMENT]

 

 

EXHIBIT A

FORM OF

TROPICANA ENTERTAINMENT, LLC

ADMINISTRATIVE QUESTIONNAIRE

Please accurately complete the following information and return via Fax to the attention of Agency
Administration at Silver Point as soon as possible, at Fax No. (203) 286-2139.

LENDER LEGAL NAME TO APPEAR IN DOCUMENTATION :

GENERAL INFORMATION — DOMESTIC LENDING OFFICE:

	 	 	 
	Institution Name:
	 	 
	 

	 	 
	 
	 	 
	Street Address:
	 	 
	 

	 	 
	 
	 	 
	City, State, Zip Code:
	 	 
	 

	 	 

GENERAL INFORMATION — EURODOLLAR LENDING OFFICE:

	 	 	 
	Institution Name:
	 	 
	 

	 	 
	 
	 	 
	Street Address:
	 	 
	 

	 	 
	 
	 	 
	City, State, Zip Code:
	 	 
	 

	 	 

POST-CLOSING, ONGOING CREDIT CONTACTS/NOTIFICATION METHODS:

	 	 
	CREDIT CONTACTS:
	
	 

	Primary Contact:
	 
	 
	
	Street Address:
	 
	 
	
	City, State, Zip-Code:
	 
	 
	
	Phone Number:
	 
	 
	
	Fax Number:
	 
	 
	
	Backup Contact:
	 
	 
	 
	Street Address:
	 
	 
	
	City, State, Zip Code:
	 
	 
	
	Phone Number:
	 
	 
	
	Fax Number:
	 

 

 

TAX WITHHOLDING:

	 	 	 	 
	 	Nonresident Alien 	           Y*        N	
	 
	 	*Form 4224 Enclosed	 	
	 
	 	Tax ID Number	 	

POST-CLOSING
ONGOING ADMIN. CONTACTS/NOTIFICATION METHODS:

ADMINISTRATIVE CONTACTS — BORROWINGS, PAYDOWNS, FEES, ETC.

	 	 	 
	Contact:
	 	 
	 

	 	 
	 
	 	 
	Street Address:
	 	 
	 

	 	 
	 
	 	 
	City, State, Zip Code:
	 	 
	 

	 	 
	 
	 	 
	Phone Number:
	 	 
	 

	 	 
	 
	 	 
	Fax Number:
	 	 
	 

	 	 

PAYMENT INSTRUCTIONS:

	 	 	 
	Name of Bank to which funds are to be transferred:
	 	 
	 

	 	 
	 
	 	 
	 

	 	 	 
	Routing Transit/ABA number of Bank to which funds are to be transferred:
	 	 
	 

	 	 

	 	 	 
	Name of Account, if applicable:
	 	 
	 

	 	 
	 
	 	 
	Account Number:
	 	 
	 

	 	 
	 
	 	 
	Additional information:
	 	 

MAILINGS:

Please specify the person to whom the Borrower should send financial and compliance information
received subsequent to the closing (if different from primary credit contact):

	 	 	 
	Name:
	 	 
	 

	 	 
	 
	 	 
	Street Address:
	 	 
	 

	 	 
	 
	 	 
	City, State, Zip Code:
	 	 
	 

	 	 

2

 

It is very important that all the above information be accurately completed and that this
questionnaire be returned to the person specified in the introductory paragraph of this
questionnaire as soon as possible. If there is someone other than yourself who should receive this
questionnaire, please notify us of that person’s name and Fax number and we will Fax a copy of the
questionnaire. If you have any questions about this form, please call Agency Administration at
Silver Point.

3

 

EXHIBIT B

FORM OF

ASSIGNMENT AND ACCEPTANCE

     Reference is made to the Senior Secured Superpriority Debtor In Possession Credit Agreement
dated as of May 5, 2008 (as amended, restated, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among Tropicana Entertainment, LLC, formerly known as Wimar OpCo,
LLC, a Delaware limited liability company, as a debtor and a debtor in possession under Chapter 11
of the Bankruptcy Code, (the “Borrower”), Tropicana Entertainment Intermediate Holdings, LLC,
formerly known as Wimar OpCo Intermediate Holdings, LLC, a Delaware limited liability company, as a
debtor and a debtor in possession under Chapter 11 of the Bankruptcy Code, (“Holdings”) CP Laughlin
Realty, LLC, a Delaware limited liability company, as a debtor and a debtor in possession under
Chapter 11 of the Bankruptcy Code, (“CP Laughlin”), JMBS Casino LLC, a Mississippi limited
liability company, as a debtor and a debtor in possession under Chapter 11 of the Bankruptcy Code,
(“Jubilee”), the Lenders (as defined therein), and Silver Point Finance, LLC, as administrative
agent (in such capacity, the “Administrative Agent”) and as collateral agent (in such capacity, the
“Collateral Agent”) for the Lenders. Terms defined in the Credit Agreement are used herein with the
same meanings.

     1. For an agreed consideration, the Assignor hereby irrevocably sells and assigns to the
Assignee, and the Assignee hereby irrevocably purchases and assumes, from the Assignor, effective
as of the Effective Date set forth below (but not prior to the registration of the information
contained herein in the Register pursuant to Section 9.04(e) of the Credit Agreement), the
interests set forth below (the “Assigned Interest”) in the Assignor’s rights and obligations under
the Credit Agreement and the other Loan Documents, including, without limitation, the amounts and
percentages set forth below of (i) the Commitments of the Assignor on the Effective Date and (ii)
the Loans owing to the Assignor which are outstanding on the Effective Date. Each of the Assignor
and the Assignee hereby makes and agrees to be bound by all the representations, warranties and
agreements set forth in Section 9.04(c) of the Credit Agreement, a copy of which has been received
by each such party. From and after the Effective Date (i) the Assignee shall be a party to and be
bound by the provisions of the Credit Agreement and, to the extent of the interests assigned by
this Assignment and Acceptance, have the rights and obligations of a Lender thereunder and under
the Loan Documents and (ii) the Assignor shall, to the extent of the interests assigned by this
Assignment and Acceptance, relinquish its rights and be released from its obligations under the
Credit Agreement.

     2. This Assignment and Acceptance is being delivered to the Administrative Agent together with
(i) if the Assignee is organized under the laws of a jurisdiction outside the United States, any
forms referred to in Section 2.21(e) of the Credit Agreement, duly completed and executed by such
Assignee, (ii) if the Assignee is not already a Lender under the Credit Agreement, a completed
Administrative Questionnaire
and all applicable tax forms and (iii) if required by Section 9.04(b) of the Credit Agreement,
a processing and recordation fee of $3,500.

     3. This Assignment and Acceptance shall be governed by and construed in accordance with the
laws of the State of New York.

 

 

Date of Assignment:

Legal Name of Assignor (“Assignor”):

Legal Name of Assignee (“Assignee”):

Assignee’s Address for Notices:

Effective Date of Assignment (“Effective Date”):

	 	 	 	 	 
	 

	 	 	 	Percentage Assigned (set
	 

	 	 	 	forth, to at least 8 decimals, as
	 

	 	 	 	a percentage of the facility and
	 

	 	 	 	the aggregate Loans and
	Loan/Commitments

	 	Principal Amount Assigned1

	 	Commitment
of all Lenders)

	 

	 	$
	 	%

[Remainder of page intentionally left blank]

 

			
	1	 	Amount assigned is governed by Section 9.04(b) of the Credit Agreement.

5

 

The terms set forth in this Assignment and Acceptance are hereby agreed to:

ASSIGNOR

	 	 	 	 	 
	 	[NAME OF ASSIGNOR]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

ASSIGNEE

	 	 	 	 	 
	 	[NAME OF ASSIGNEE]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Consented to and Accepted:

SILVER POINT FINANCE, LLC,

as Administrative Agent,

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

6

 

	 	 	 	 	 

EXHIBIT C

FORM OF

BORROWING REQUEST

Silver Point Finance, LLC, as Administrative Agent for
 the
Lenders referred to below,

2 Greenwich Plaza

1st Floor

Greenwich, CT 06830

Attention: Arnab Khalid, Closing Admin

[DATE]1

Ladies and Gentlemen:

          The undersigned, Tropicana Entertainment, LLC, formerly known as Wimar OpCo, LLC, a Delaware
limited liability company, as a debtor and a debtor in possession under Chapter 11 of the
Bankruptcy Code, (the “Borrower”), refers to the Senior Secured Superpriority Debtor In Possession
Credit Agreement dated as of May 5, 2008 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among the Borrower, Tropicana Entertainment
Intermediate Holdings, LLC, formerly known as Wimar OpCo Intermediate Holdings, LLC, a Delaware
limited liability company, as a debtor and a debtor in possession under Chapter 11 of the
Bankruptcy Code, (“Holdings”) CP Laughlin Realty, LLC, a Delaware limited liability company, as a
debtor and a debtor in possession under Chapter 11 of the Bankruptcy Code, (“CP Laughlin”), JMBS
Casino LLC, a Mississippi limited liability company, as a debtor and a debtor in possession under
Chapter 11 of the Bankruptcy Code, (“Jubilee”), the Lenders (as defined therein), and Silver Point
Finance, LLC, as administrative agent (in such capacity, the “Administrative Agent”) and as
collateral agent (in such capacity, the “Collateral Agent”) for the Lenders. Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement.

          The Borrower hereby gives the Administrative Agent notice pursuant to Section 2.03 of the
Credit Agreement that it requests a Borrowing under the Credit Agreement, and in connection
therewith sets forth below the terms on which such Borrowing is requested to be made:

	 	 	 
	(A) Type of Borrowing2

	 	                                        

 

			
	1	 	Administrative Agent must be notified by telephone (with such telephonic notification
to be confirmed promptly by hand delivery or fax) (a) in the case of an ABR Term Loan, not later
than 10:00 a.m., New York City time one Business Day before a proposed Borrowing and (b) in the
case of a Eurodollar Borrowing, not later than 10:00 a.m., New York City time, three (3) Business
Days before a proposed Borrowing.

 

 

	 	 	 
	(B) Date of Borrowing
	 	 
	(which shall be a Business Day)
	 	 
	 

	 	 
	 
	 	 
	(C) Account Number and Location
	 	 
	 

	 	 
	 
	 	 
	(D) Principal Amount of Borrowing
	 	 
	 

	 	 
	 
	 	 
	(E) Interest period3
	 	 
	 

	 	 

          The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that,
on the date of the Borrowing requested above, the matters specified in Sections 2.04, 4.01(b) and
4.01(c) of the Credit Agreement shall have been satisfied.

	 	 	 	 	 
	 	TROPICANA ENTERTAINMENT, LLC,

 	 
	 	by:
 	 	 	 
	 	 	 	Name:  	 
	 	 	 	Title:  	 
	 

 

			
	2	 	Specify whether such Borrowing is to be a Eurodollar Borrowing or an ABR Borrowing.
	 
	3	 	The initial Interest Period applicable to a LIBO Rate Borrowing shall be subject to
the definition of “Interest Period”.

 

 

EXHIBIT E

FORM OF

ISSUANCE NOTICE

[Issuer], as an Issuer

under the Credit Agreement referred
to below

Silver Point Finance, LLC, as Administrative Agent for

    the Lenders referred to below,

2 Greenwich Plaza

1st Floor

Greenwich, CT 06830

Attention: Arnab Khalid, Closing Admin

[Date]

Attention:

            Re:   Tropicana Entertainment, LLC

          The undersigned, Tropicana Entertainment, LLC, formerly known as Wimar OpCo, LLC, a Delaware
limited liability company, as a debtor and a debtor in possession under Chapter 11 of the
Bankruptcy Code, (the “Borrower”), refers to the Senior Secured Superpriority Debtor In Possession
Credit Agreement dated as of May 5, 2008 (as amended, restated, supplemented or otherwise modified
from time to time, the “Credit Agreement”), among the Borrower, Tropicana Entertainment
Intermediate Holdings, LLC, formerly known as Wimar OpCo Intermediate Holdings, LLC, a Delaware
limited liability company, as a debtor and a debtor in possession under Chapter 11 of the
Bankruptcy Code, (“Holdings”) CP Laughlin Realty, LLC, a Delaware limited liability company, as a
debtor and a debtor in possession under Chapter 11 of the Bankruptcy Code, (“CP Laughlin”), JMBS
Casino LLC, a Mississippi limited liability company, as a debtor and a debtor in possession under
Chapter 11 of the Bankruptcy Code, (“Jubilee”), the Lenders (as defined therein), and Silver Point
Finance, LLC, as administrative agent (in such capacity, the “Administrative Agent”) and as
collateral agent (in such capacity, the “Collateral Agent”) for the Lenders. Capitalized terms used
herein and not otherwise defined herein shall have the meanings assigned to such terms in the
Credit Agreement.

          The Borrower hereby gives you notice, irrevocably, pursuant to Section 2.23 of the Credit
Agreement that the undersigned requests the issuance of a Letter of
Credit in the form of a standby letter of credit for the benefit of [Beneficiary], in the
amount of [$___], to be issued on ___, ___(the “Issue Date”) and having an expiration
date of ___, ___.

1

 

          The Borrower hereby represents and warrants to the Administrative Agent and the Lenders that,
on the Issue Date, the matters specified in Sections 2.04, 4.01(b) and 4.01(c) of the Credit
Agreement shall have been satisfied.

	 	 	 	 	 
	 	TROPICANA ENTERTAINMENT, LLC,

 	 
	 	by:
 	 	 	 
	 	 	 	Name:  	 
	 	 	 	Title:  	 
	 

2EX-10.3 ISDA Master Agreement

 

Exhibit 10.3

(Multicurrency — Cross Border)

International Swap Dealers Association, Inc.

MASTER AGREEMENT

dated as of November 29, 2007

	 	 	 
	MERRILL LYNCH CAPITAL 

SERVICES, INC.

(“Party A”)
	 	PSYCHIATRIC SOLUTIONS, INC.

(“Party B”)

have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that
are or will be governed by this Master Agreement, which includes the schedule (the “Schedule”),
and the documents and other confirming evidence (each a “Confirmation”) exchanged between the
parties confirming those Transactions.

Accordingly, the parties agree as follows:-

1. Interpretation

(a) Definitions. The terms defined in Section 14 and in the Schedule will have the meanings
therein specified for the purpose of this Master Agreement.

(b) Inconsistency. In the event of any inconsistency between the provisions of the Schedule and
the other provisions of this Master Agreement, the Schedule will prevail. In the event of any
inconsistency between the provisions of any Confirmation and this Master Agreement (including the
Schedule), such Confirmation will prevail for the purpose of the relevant Transaction.

(c) Single Agreement. All Transactions are entered into in reliance on the fact that this Master
Agreement and all Confirmations form a single agreement between the parties (collectively referred
to as this “Agreement”), and the parties would not otherwise enter into any Transactions.

2. Obligations

(a) General Conditions.

(i) Each party will make each payment or delivery specified in each Confirmation to be made by it,
subject to the other provisions of this Agreement.

(ii) Payments under this Agreement will be made on the due date for value on that date in the
place of the account specified in the relevant Confirmation or otherwise pursuant to this
Agreement, in freely transferable funds and in the manner customary for payments in the required
currency. Where settlement is by delivery (that is, other than by payment), such delivery will be
made for receipt on the due date in the manner customary for the relevant obligation unless
otherwise specified in the relevant Confirmation or elsewhere in this Agreement.

(iii) Each obligation of each party under Section 2(a)(i) is subject to (1) the condition
precedent that no Event of Default or Potential Event of Default with respect to the other party
has occurred and is continuing, (2) the condition precedent that no Early Termination Date in
respect of the relevant Transaction has occurred or been effectively designated and (3) each other
applicable condition precedent specified in this Agreement.

2046268.1by International Swap Dealers Association, Inc.

 

 

(b) Change of Account. Either party may change its account for receiving a payment or delivery by
giving notice to the other party at least five Local Business Days prior to the scheduled date for
the payment
or delivery to which such change applies unless such other party gives timely notice of a
reasonable objection
to such change.

(c) Netting. If on any date amounts would otherwise be payable:—

     (i) in the same currency; and

     (ii) in respect of the same Transaction,

by each party to the other, then, on such date, each party’s obligation to make payment of any
such amount will be automatically satisfied and discharged and, if the aggregate amount that would
otherwise have been payable by one party exceeds the aggregate amount that would otherwise have
been payable by the other party, replaced by an obligation upon the party by whom the larger
aggregate amount would have been payable to pay to the other party the excess of the larger
aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount will be determined
in respect of all amounts payable on the same date in the same currency in respect of such
Transactions, regardless of whether such amounts are payable in respect of the same Transaction.
The election may be made in the Schedule or a Confirmation by specifying that subparagraph (ii)
above will not apply to the Transactions identified as being subject to the election, together
with the starting date (in which case subparagraph (ii) above will not, or will cease to, apply to
such Transactions from such date). This election may be made separately for different groups of
Transactions and will apply separately to each pairing of Offices through which the parties make
and receive payments or deliveries.

(d) Deduction or Withholding for Tax.

(i) Gross-Up. All payments under this Agreement will be made without any deduction or
withholding for or on account of any Tax unless such deduction or withholding is required
by any applicable law, as modified by the practice of any relevant governmental revenue
authority, then in effect. If a party is so required to deduct or withhold, then that
party (“X”) will:—

(1) promptly notify the other party (“Y”) of such requirement;

(2) pay to the relevant authorities the full amount required to be deducted or
withheld (including the full amount required to be deducted or withheld from any
additional amount paid by X to Y under this Section 2(d)) promptly upon the earlier of
determining that such deduction or withholding is required or receiving notice that
such amount has been assessed against Y;

(3) promptly forward to Y an official receipt (or a certified copy), or other
documentation reasonably acceptable to Y, evidencing such payment to such authorities;
and

(4) if such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which
Y is otherwise entitled under this Agreement, such additional amount as is necessary to
ensure that the net amount actually received by Y (free and clear of Indemnifiable
Taxes, whether assessed against X or Y) will equal the full amount Y would have
received had no such deduction or withholding been required. However, X will not be
required to pay any additional amount to Y to the extent that it would not be required
to be paid but for:—

(A) the failure by Y to comply with or perform any agreement contained in Section
4(a)(i), 4(a)(iii) or 4(d); or

(B) the failure of a representation made by Y pursuant to Section 3(f) to be
accurate and true unless such failure would not have occurred but for (I) any
action taken by a taxing authority, or brought in a court of competent
jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party to
this Agreement) or (II) a Change in Tax Law.

					
	 	 	 	 	 
	 
	 	2
	 	ISDA® 1992

 

 

(ii) Liability. If:—

(1) X is required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, to make any deduction or withholding in respect of
which X would not be required to pay an additional amount to Y under Section
2(d)(i)(4);

(2) X does not so deduct or withhold; and

(3) a liability resulting from such Tax is assessed directly against X,

then, except to the extent Y has satisfied or then satisfies the liability resulting from
such Tax, Y will promptly pay to X the amount of such liability (including any related
liability for interest, but including any related liability for penalties only if Y has
failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d)).

(e) Default Interest; Other Amounts. Prior to the occurrence or effective designation of an Early
Termination Date in respect of the relevant Transaction, a party that defaults in the performance
of any payment obligation will, to the extent permitted by law and subject to Section 6(c), be
required to pay interest (before as well as after judgment) on the overdue amount to the other
party on demand in the same currency as such overdue amount, for the period from (and including)
the original due date for payment to (but excluding) the date of actual payment, at the Default
Rate. Such interest will be calculated on the basis of daily compounding and the actual number of
days elapsed. If, prior to the occurrence or effective designation of an Early Termination Date in
respect of the relevant Transaction, a party defaults in the performance of any obligation
required to be settled by delivery, it will compensate the other party on demand if and to the
extent provided for in the relevant Confirmation or elsewhere in this Agreement.

3. Representations

Each party represents to the other party (which representations will be deemed to be repeated by
each party on each date on which a Transaction is entered into and, in the case of the
representations in Section 3(f), at all times until the termination of this Agreement) that:—

(a) Basic Representations.

(i) Status. It is duly organised and validly existing under the laws of the jurisdiction
of its organisation or incorporation and, if relevant under such laws, in good standing;

(ii) Powers. It has the power to execute this Agreement and any other documentation
relating to this Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement to deliver
and to perform its obligations under this Agreement and any obligations it has under any
Credit Support Document to which it is a party and has taken all necessary action to
authorise such execution, delivery and performance;

(iii) No Violation or Conflict. Such execution, delivery and performance do not violate or
conflict with any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it or any of
its assets or any contractual restriction binding on or affecting it or any of its assets;

(iv) Consents. All governmental and other consents that are required to have been obtained
by it with respect to this Agreement or any Credit Support Document to which it is a party
have been obtained and are in full force and effect and all conditions of any such consents
have been complied with; and

(v) Obligations Binding. Its obligations under this Agreement and any Credit Support
Document to which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms (subject to applicable bankruptcy,
reorganisation, insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general application
(regardless of whether enforcement is sought in a proceeding in equity or at law)).

					
	 	 	 	 	 
	 
	 	3
	 	ISDA® 1992

 

 

(b) Absence of Certain Events. No Event of Default or Potential Event of Default or, to its
knowledge, Termination Event with respect to it has occurred and is continuing and no such event
or circumstance would occur as a result of its entering into or performing its obligations under
this Agreement or any Credit Support Document to which it is a party.

(c) Absence of Litigation. There is not pending or, to its knowledge, threatened against it or any
of its Affiliates any action, suit or proceeding at law or in equity or before any court,
tribunal, governmental body, agency or official or any arbitrator that is likely to affect the
legality, validity or enforceability against it of this Agreement or any Credit Support Document
to which it is a party or its ability to perform its obligations under this Agreement or such
Credit Support Document.

(d) Accuracy of Specified Information. All applicable information that is furnished in writing by
or on behalf of it to the other party and is identified for the purpose of this Section 3(d) in the
Schedule is, as of the date of the information, true, accurate and complete in every material
respect.

(e) Payer Tax Representation. Each representation specified in the Schedule as being made by it
for the purpose of this Section 3(e) is accurate and true.

(f) Payee Tax Representations. Each representation specified in the Schedule as being made by it
for the purpose of this Section 3(f) is accurate and true.

4. Agreements

Each party agrees with the other that, so long as either party has or may have any obligation
under this Agreement or under any Credit Support Document to which it is a party:—

(a) Furnish Specified Information. It will deliver to the other party or, in certain cases under
subparagraph (iii) below, to such government or taxing authority as the other party reasonably
directs:—

(i) any forms, documents or certificates relating to taxation specified in the Schedule or
any Confirmation;

(ii) any other documents specified in the Schedule or any Confirmation; and

(iii) upon reasonable demand by such other party, any form or document that may be
required or reasonably requested in writing in order to allow such other party or its
Credit Support Provider to make a payment under this Agreement or any applicable Credit
Support Document without any deduction or withholding for or on account of any Tax or with
such deduction or withholding at a reduced rate (so long as the completion, execution or
submission of such form or document would not materially prejudice the legal or commercial
position of the party in receipt of such demand), with any such form or document to be
accurate and completed in a manner reasonably satisfactory to such other party and to be
executed and to be delivered with any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation or, if none is specified,
as soon as reasonably practicable.

(b) Maintain Authorisations. It will use all reasonable efforts to maintain in full force and
effect all consents of any governmental or other authority that are required to be obtained by it
with respect to this Agreement or any Credit Support Document to which it is a party and will use
all reasonable efforts to obtain any that may become necessary in the future.

(c) Comply with Laws. It will comply in all material respects with all applicable laws and orders
to which it may be subject if failure so to comply would materially impair its ability to perform
its obligations under this Agreement or any Credit Support Document to which it is a party.

(d) Tax Agreement. It will give notice of any failure of a representation made by it under Section
3(f) to be accurate and true promptly upon learning of such failure.

(e) Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed upon
it or in respect of its execution or performance of this Agreement by a jurisdiction in which it
is incorporated,

					
	 	 	 	 	 
	 
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	 	ISDA® 1992

 

 

organised, managed and controlled, or considered to have its seat, or in which a branch or office
through which it is acting for the purpose of this Agreement is located (“Stamp Tax Jurisdiction”)
and will indemnify the other party against any Stamp Tax levied or imposed upon the other party or
in respect of the other party’s execution or performance of this Agreement by any such Stamp Tax
Jurisdiction which is not also a Stamp Tax Jurisdiction with respect to the other party.

5.
Events of Default and Termination Events

(a) Events of Default. The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of any of the
following events constitutes an event of default (an “Event of Default”) with respect to such
party:—

(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under
this Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such
failure is not remedied on or before the third Local Business Day after notice of such
failure is given to the party;

(ii)
Breach of Agreement. Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement or delivery
under Section 2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or
obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by
the party in accordance with this Agreement if such failure is not remedied on or before
the thirtieth day after notice of such failure is given to the party;

(iii)
Credit Support Default.

(1) Failure by the party or any Credit Support Provider of such party to comply with
or perform any agreement or obligation to be complied with or performed by it in
accordance with any Credit Support Document if such failure is continuing after any
applicable grace period has elapsed;

(2) the expiration or termination of such Credit Support Document or the failing or
ceasing of such Credit Support Document to be in full force and effect for the purpose
of this Agreement (in either case other than in accordance with its terms) prior to
the satisfaction of all obligations of such party under each Transaction to which such
Credit Support Document relates without the written consent of the other party; or

(3) the party or such Credit Support Provider disaffirms, disclaims, repudiates or
rejects, in whole or in part, or challenges the validity of, such Credit Support
Document;

(iv)
Misrepresentation. A representation (other than a representation under Section 3(e)
or (f)) made or repeated or deemed to have been made or repeated by the party or any
Credit Support Provider of such party in this Agreement or any Credit Support Document
proves to have been incorrect or misleading in any material respect when made or repeated
or deemed to have been made or repeated;

(v)
Default under Specified Transaction. The party, any Credit Support Provider of such
party or any applicable Specified Entity of such party (1) defaults under a Specified
Transaction and, after giving effect to any applicable notice requirement or grace period,
there occurs a liquidation of, an acceleration of obligations under, or an early
termination of, that Specified Transaction, (2) defaults, after giving effect to any
applicable notice requirement or grace period, in making any payment or delivery due on the
last payment, delivery or exchange date of, or any payment on early termination of, a
Specified Transaction (or such default continues for at least three Local Business Days if
there is no applicable notice requirement or grace period) or (3) disaffirms, disclaims,
repudiates or rejects, in whole or in part, a Specified Transaction (or such action is
taken by any person or entity appointed or empowered to operate it or act on its behalf);

(vi) Cross Default. If “Cross Default” is specified in the Schedule as applying to the
party, the occurrence or existence of (1) a default, event of default or other similar
condition or event (however

					
	 	 	 	 	 
	 
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described) in respect of such party, any Credit Support Provider of such party or any
applicable Specified Entity of such party under one or more agreements or instruments
relating to Specified Indebtedness of any of them (individually or collectively) in an
aggregate amount of not less than the applicable Threshold Amount (as specified in the
Schedule) which has resulted in such Specified Indebtedness becoming, or becoming capable
at such time of being declared, due and payable under such agreements or instruments,
before it would otherwise have been due and payable or (2) a default by such party, such
Credit Support Provider or such Specified Entity (individually or collectively) in making
one or more payments on the due date thereof in an aggregate amount of not less than the
applicable Threshold Amount under such agreements or instruments (after giving effect to
any applicable notice requirement or grace period);

(vii)
Bankruptcy. The party, any Credit Support Provider of such party or any applicable
Specified Entity of such party:—

(1) is dissolved (other than pursuant to a consolidation, amalgamation or merger);
(2) becomes insolvent or is unable to pay its debts or fails or admits in writing its
inability generally to pay its debts as they become due; (3) makes a general
assignment, arrangement or composition with or for the benefit of its creditors; (4)
institutes or has instituted against it a proceeding seeking a judgment of insolvency
or bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition (A) results in a
judgment of insolvency or bankruptcy or the entry of an order for relief or the
making of an order for its winding-up or liquidation or (B) is not dismissed,
discharged, stayed or restrained in each case within 30 days of the institution or
presentation thereof; (5) has a resolution passed for its winding-up, official
management or liquidation (other than pursuant to a consolidation, amalgamation or
merger); (6) seeks or becomes subject to the appointment of an administrator,
provisional liquidator, conservator, receiver, trustee, custodian or other similar
official for it or for all or substantially all its assets; (7) has a secured party
take possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or
against all or substantially all its assets and such secured party maintains
possession, or any such process is not dismissed, discharged, stayed or restrained,
in each case within 30 days thereafter; (8) causes or is subject to any event with
respect to it which, under the applicable laws of any jurisdiction, has an analogous
effect to any of the events specified in clauses (1) to (7) (inclusive); or (9) takes
any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts; or

(viii)
Merger Without Assumption. The party or any Credit Support Provider of such party
consolidates or amalgamates with, or merges with or into, or transfers all or
substantially all its assets to, another entity and, at the time of such consolidation,
amalgamation, merger or transfer:—

(1) the resulting, surviving or transferee entity fails to assume all the obligations
of such party or such Credit Support Provider under this Agreement or any Credit
Support Document to which it or its predecessor was a party by operation of law or
pursuant to an agreement reasonably satisfactory to the other party to this
Agreement; or

(2) the benefits of any Credit Support Document fail to extend (without the consent
of the other party) to the performance by such resulting, surviving or transferee
entity of its obligations under this Agreement.

(b)
Termination Events. The occurrence at any time with respect to a party or, if applicable, any
Credit
Support Provider of such party or any Specified Entity of such party of any event specified below
constitutes an Illegality if the event is specified in (i) below, a Tax Event if the event is
specified in (ii) below or a Tax Event Upon Merger if the event is specified in (iii) below, and,
if specified to be applicable, a Credit Event

					
	 	 	 	 	 
	 
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	 	ISDA® 1992

 

 

Upon Merger if the event is specified pursuant to (iv) below or an Additional Termination Event if
the event is specified pursuant to (v) below:—

(i)
Illegality. Due to the adoption of, or any change in, any applicable law after the
date on which a Transaction is entered into, or due to the promulgation of, or any change
in, the interpretation by any court, tribunal or regulatory authority with competent
jurisdiction of any applicable law after such date, it becomes unlawful (other than as a
result of a breach by the party of Section 4(b)) for such party (which will be the
Affected Party):—

(1) to perform any absolute or contingent obligation to make a payment or delivery or
to receive a payment or delivery in respect of such Transaction or to comply with any
other material provision of this Agreement relating to such Transaction; or

(2) to perform, or for any Credit Support Provider of such party to perform, any
contingent or other obligation which the party (or such Credit Support Provider) has
under any Credit Support Document relating to such Transaction;

(ii)
Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of
competent jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party to this
Agreement) or (y) a Change in Tax Law, the party (which will be the Affected Party) will,
or there is a substantial likelihood that it will, on the next succeeding Scheduled Payment
Date (1) be required to pay to the other party an additional amount in respect of an
Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount is required to be
deducted or withheld for or on account of a Tax (except in respect of interest under
Section 2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect
of such Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or
(B));

(iii)
Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding
Scheduled Payment Date will either (1) be required to pay an additional amount in respect
of an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under
Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been
deducted or withheld for or on account of any Indemnifiable Tax in respect of which the
other party is not required to pay an additional amount (other than by reason of Section
2(d)(i)(4)(A) or (B)), in either case as a result of a party consolidating or amalgamating
with, or merging with or into, or transferring all or substantially all its assets to,
another entity (which will be the Affected Party) where such action does not constitute an
event described in Section 5(a)(viii);

(iv)
Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule
as applying to the party, such party (“X”), any Credit Support Provider of X or any
applicable Specified Entity of X consolidates or amalgamates with, or merges with or into,
or transfers all or substantially all its assets to, another entity and such action does
not constitute an event described in Section 5(a)(viii) but the creditworthiness of the
resulting, surviving or transferee entity is materially weaker than that of X, such Credit
Support Provider or such Specified Entity, as the case may be, immediately prior to such
action (and, in such event, X or its successor or transferee, as appropriate, will be the
Affected Party); or

(v)
Additional Termination Event. If any “Additional Termination Event” is specified in
the Schedule or any Confirmation as applying, the occurrence of such event (and, in such
event, the Affected Party or Affected Parties shall be as specified for such Additional
Termination Event in the Schedule or such Confirmation).

(c)
Event of Default and Illegality. If an event or circumstance which would otherwise constitute
or give rise to an Event of Default also constitutes an Illegality, it will be treated as an
Illegality and will not constitute an Event of Default.

					
	 	 	 	 	 
	 
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6. Early Termination

(a) Right to Terminate Following Event of Default. If at any time an Event of Default with respect
to a party (the “Defaulting Party”) has occurred and is then continuing, the other party (the
“Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting Party specifying the
relevant Event of Default, designate a day not earlier than the day such notice is effective as an
Early Termination Date in respect of all outstanding Transactions. If, however, “Automatic Early
Termination” is specified in the Schedule as applying to a party, then an Early Termination Date in
respect of all outstanding Transactions will occur immediately upon the occurrence with respect to
such party of an Event of Default specified in Section 5(a)(vii)(l), (3), (5), (6) or, to the
extent analogous thereto, (8), and as of the time immediately preceding the institution of the
relevant proceeding or the presentation of the relevant petition upon the occurrence with respect
to such party of an Event of Default specified in Section 5(a)(vii)(4) or, to the extent analogous
thereto, (8).

(b) Right to Terminate Following Termination Event.

(i) Notice. If a Termination Event occurs, an Affected Party will, promptly upon becoming
aware of it, notify the other party, specifying the nature of that Termination Event and
each Affected Transaction and will also give such other information about that Termination
Event as the other party may reasonably require.

(ii) Transfer to Avoid Termination Event. If either an Illegality under Section 5(b)(i)(l)
or a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger
occurs and the Burdened Party is the Affected Party, the Affected Party will, as a
condition to its right to designate an Early Termination Date under Section 6(b)(iv), use
all reasonable efforts (which will not require such party to incur a loss, excluding
immaterial, incidental expenses) to transfer within 20 days after it gives notice under
Section 6(b)(i) all its rights and obligations under this Agreement in respect of the
Affected Transactions to another of its Offices or Affiliates so that such Termination
Event ceases to exist.

If the Affected Party is not able to make such a transfer it will give notice to the other
party to that effect within such 20 day period, whereupon the other party may effect such a
transfer within 30 days after the notice is given under Section 6(b)(i).

Any such transfer by a party under this Section 6(b)(ii) will be subject to and conditional
upon the prior written consent of the other party, which consent will not be withheld if
such other party’s policies in effect at such time would permit it to enter into
transactions with the transferee on the terms proposed.

(iii) Two Affected Parties. If an Illegality under Section 5(b)(i)(l) or a Tax Event occurs
and there are two Affected Parties, each party will use all reasonable efforts to reach
agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to
avoid that Termination Event.

(iv) Right to Terminate. If:—

(1) a transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as the
case may be, has not been effected with respect to all Affected Transactions within 30
days after an Affected Party gives notice under Section 6(b)(i); or

(2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an
Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the
Burdened Party is not the Affected Party,

either party in the case of an Illegality, the Burdened Party in the case of a Tax Event
Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination
Event if there is more than one Affected Party, or the party which is not the Affected
Party in the case of a Credit Event Upon Merger or an Additional Termination Event if there
is only one Affected Party may, by not more than 20 days notice to the other party and
provided that the relevant Termination Event is then

					
	 	 	 	 	 
	 
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	 	ISDA® 1992

 

 

continuing, designate a day not earlier than the day such notice is effective as an Early
Termination Date in respect of all Affected Transactions.

	(c)	 	Effect of Designation.

(i) If notice designating an Early Termination Date is given under Section 6(a) or (b), the
Early Termination Date will occur on the date so designated, whether or not the relevant
Event of Default or Termination Event is then continuing.

(ii) Upon the occurrence or effective designation of an Early Termination Date, no further
payments or deliveries under Section 2(a)(i) or 2(e) in respect of the Terminated
Transactions will be required to be made, but without prejudice to the other provisions of
this Agreement. The amount, if any, payable in respect of an Early Termination Date shall
be determined pursuant to Section 6(e).

	(d)	 	Calculations.

(i) Statement. On or as soon as reasonably practicable following the occurrence of an Early
Termination Date, each party will make the calculations on its part, if any, contemplated
by Section 6(e) and will provide to the other party a statement (1) showing, in reasonable
detail, such calculations (including all relevant quotations and specifying any amount
payable under Section 6(e)) and (2) giving details of the relevant account to which any
amount payable to it is to be paid. In the absence of written confirmation from the source
of a quotation obtained in determining a Market Quotation, the records of the party
obtaining such quotation will be conclusive evidence of the existence and accuracy of such
quotation.

(ii) Payment Date. An amount calculated as being due in respect of any Early Termination
Date under Section 6(e) will be payable on the day that notice of the amount payable is
effective (in the case of an Early Termination Date which is designated or occurs as a
result of an Event of Default) and on the day which is two Local Business Days after the
day on which notice of the amount payable is effective (in the case of an Early
Termination Date which is designated as a result of a Termination Event). Such amount will
be paid together with (to the extent permitted under applicable law) interest thereon
(before as well as after judgment) in the Termination Currency, from (and including) the
relevant Early Termination Date to (but excluding) the date such amount is paid, at the
Applicable Rate. Such interest will be calculated on the basis of daily compounding and
the actual number of days elapsed.

(e) Payments on Early Termination. If an Early Termination Date occurs, the following provisions
shall apply based on the parties’ election in the Schedule of a payment measure, either “Market
Quotation”
or “Loss”, and a payment method, either the “First Method” or the “Second Method”. If the parties
fail to
designate a payment measure or payment method in the Schedule, it will be deemed that “Market
Quotation”
or the “Second Method”, as the case may be, shall apply. The amount, if any, payable in respect of
an Early
Termination Date and determined pursuant to this Section will be subject to any Set-off.

(i) Events of Default. If the Early Termination Date results from an Event of Default:—

(1) First Method and Market Quotation. If the First Method and Market Quotation apply,
the Defaulting Party will pay to the Non-defaulting Party the excess, if a positive
number, of (A) the sum of the Settlement Amount (determined by the Non-defaulting
Party) in respect of the Terminated Transactions and the Termination Currency
Equivalent of the Unpaid Amounts owing to the Non-defaulting Party over (B) the
Termination Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party.

(2) First Method and Loss. If the First Method and Loss apply, the Defaulting Party
will pay to the Non-defaulting Party, if a positive number, the Non-defaulting Party’s
Loss in respect of this Agreement.

(3) Second Method and Market Quotation. If the Second Method and Market Quotation
apply, an amount will be payable equal to (A) the sum of the Settlement Amount
(determined by the

					
	 	 	 	 	 
	 
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	 	ISDA® 1992

 

 

Non-defaulting Party) in respect of the Terminated Transactions and the Termination Currency
Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B) the Termination
Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a
negative number, the Non-defaulting Party will pay the absolute value of that amount to the
Defaulting Party.

(4) Second Method and Loss. If the Second Method and Loss apply, an amount will be payable
equal to the Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party; if it is a
negative number, the Non-defaulting Party will pay the absolute value of that amount to the
Defaulting Party.

(ii) Termination Events. If the Early Termination Date results from a Termination Event:—

(1) One Affected Party. If there is one Affected Party, the amount payable will be determined
in accordance with Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if
Loss applies, except that, in either case, references to the Defaulting Party and to the
Non-defaulting Party will be deemed to be references to the Affected Party and the party
which is not the Affected Party, respectively, and, if Loss applies and fewer than all the
Transactions are being terminated, Loss shall be calculated in respect of all Terminated
Transactions.

(2) Two Affected Parties. If there are two Affected Parties:—

(A) if Market Quotation applies, each party will determine a Settlement Amount in
respect of the Terminated Transactions, and an amount will be payable equal to (I) the
sum of (a) one-half of the difference between the Settlement Amount of the party with
the higher Settlement Amount (“X”) and the Settlement Amount of the party with the lower
Settlement Amount (“Y”) and (b) the Termination Currency Equivalent of the Unpaid
Amounts owing to X less (II) the Termination Currency Equivalent of the Unpaid Amounts
owing to Y; and

(B) if Loss applies, each party will determine its Loss in respect of this Agreement
(or, if fewer than all the Transactions are being terminated, in respect of all
Terminated Transactions) and an amount will be payable equal to one-half of the
difference between the Loss of the party with the higher Loss (“X”) and the Loss of the
party with the lower Loss (“Y”).

If the amount payable is a positive number, Y will pay it to X; if it is a negative number, X
will pay the absolute value of that amount to Y.

(iii) Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs because
“Automatic Early Termination” applies in respect of a party, the amount determined under this
Section 6(e) will be subject to such adjustments as are appropriate and permitted by law to
reflect any payments or deliveries made by one party to the other under this Agreement (and
retained by such other party) during the period from the relevant Early Termination Date to the
date for payment determined under Section 6(d)(ii).

(iv) Pre-Estimate. The parties agree that if Market Quotation applies an amount recoverable under
this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount is payable
for the loss of bargain and the loss of protection against future risks and except as otherwise
provided in this Agreement neither party will be entitled to recover any additional damages as a
consequence of such losses.

					
	 	 	 	 	 
	 
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7. Transfer

Subject to Section 6(b)(ii), neither this Agreement nor any interest or obligation in or under
this Agreement may be transferred (whether by way of security or otherwise) by either party
without the prior written consent of the other party, except that:—

(a) a party may make such a transfer of this Agreement pursuant to a consolidation or amalgamation
with, or merger with or into, or transfer of all or substantially all its assets to, another
entity (but without prejudice to any other right or remedy under this Agreement); and

(b) a party may make such a transfer of all or any part of its interest in any amount payable to
it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

8. Contractual Currency

(a) Payment in the Contractual Currency. Each payment under this Agreement will be made in the
relevant currency specified in this Agreement for that payment (the “Contractual Currency”). To
the extent permitted by applicable law, any obligation to make payments under this Agreement in
the Contractual Currency will not be discharged or satisfied by any tender in any currency other
than the Contractual Currency, except to the extent such tender results in the actual receipt by
the party to which payment is owed, acting in a reasonable manner and in good faith in converting
the currency so tendered into the Contractual Currency, of the full amount in the Contractual
Currency of all amounts payable in respect of this Agreement. If for any reason the amount in the
Contractual Currency so received falls short of the amount in the Contractual Currency payable in
respect of this Agreement, the party required to make the payment will, to the extent permitted by
applicable law, immediately pay such additional amount in the Contractual Currency as may be
necessary to compensate for the shortfall. If for any reason the amount in the Contractual
Currency so received exceeds the amount in the Contractual Currency payable in respect of this
Agreement, the party receiving the payment will refund promptly the amount of such excess.

(b) Judgments. To the extent permitted by applicable law, if any judgment or order expressed in a
currency other than the Contractual Currency is rendered (i) for the payment of any amount owing in
respect of this Agreement, (ii) for the payment of any amount relating to any early termination in
respect of this Agreement or (iii) in respect of a judgment or order of another court for the
payment of any amount described in (i) or (ii) above, the party seeking recovery, after recovery in
full of the aggregate amount to which such party is entitled pursuant to the judgment or order,
will be entitled to receive immediately from the other party the amount of any shortfall of the
Contractual Currency received by such party as a consequence of sums paid in such other currency
and will refund promptly to the other party any excess of the Contractual Currency received by such
party as a consequence of sums paid in such other currency if such shortfall or such excess arises
or results from any variation between the rate of exchange at which the Contractual Currency is
converted into the currency of the judgment or order for the purposes of such judgment or order and
the rate of exchange at which such party is able, acting in a reasonable manner and in good faith
in converting the currency received into the Contractual Currency, to purchase the Contractual
Currency with the amount of the currency of the judgment or order actually received by such party.
The term “rate of exchange” includes, without limitation, any premiums and costs of exchange
payable in connection with the purchase of or conversion into the Contractual Currency.

(c) Separate Indemnities. To the extent permitted by applicable law, these indemnities constitute
separate and independent obligations from the other obligations in this Agreement, will be
enforceable as separate and independent causes of action, will apply notwithstanding any
indulgence granted by the party to which any payment is owed and will not be affected by judgment
being obtained or claim or proof being made for any other sums payable in respect of this
Agreement.

(d) Evidence of Loss. For the purpose of this Section 8, it will be sufficient for a party to
demonstrate that it would have suffered a loss had an actual exchange or purchase been made.

					
	 	 	 	 	 
	 
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9. Miscellaneous

(a) Entire Agreement. This Agreement constitutes the entire agreement and understanding of the
parties with respect to its subject matter and supersedes all oral communication and prior writings
with respect thereto.

(b) Amendments. No amendment, modification or waiver in respect of this Agreement will be
effective unless in writing (including a writing evidenced by a facsimile transmission) and
executed by each of the parties or confirmed by an exchange of telexes or electronic messages on
an electronic messaging system.

(c) Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations
of the parties under this Agreement will survive the termination of any Transaction.

(d) Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and
privileges provided in this Agreement are cumulative and not exclusive of any rights, powers,
remedies and privileges provided by law.

(e) Counterparts and Confirmations.

(i) This Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission), each of
which will be deemed an original.

(ii) The parties intend that they are legally bound by the terms of each Transaction from
the moment they agree to those terms (whether orally or otherwise). A Confirmation shall
be entered into as soon as practicable and may be executed and delivered in counterparts
(including by facsimile transmission) or be created by an exchange of telexes or by an
exchange of electronic messages on an electronic messaging system, which in each case will
be sufficient for all purposes to evidence a binding supplement to this Agreement. The
parties will specify therein or through another effective means that any such counterpart,
telex or electronic message constitutes a Confirmation.

(f) No Waiver of Rights. A failure or delay in exercising any right, power or privilege in respect
of this Agreement will not be presumed to operate as a waiver, and a single or partial exercise of
any right, power or privilege will not be presumed to preclude any subsequent or further exercise,
of that right, power or privilege or the exercise of any other right, power or privilege.

(g) Headings. The headings used in this Agreement are for convenience of reference only and are
not to affect the construction of or to be taken into consideration in interpreting this
Agreement.

10. Offices; Multibranch Parties

(a) If Section 10(a) is specified in the Schedule as applying, each party that enters into a
Transaction through an Office other than its head or home office represents to the other party
that, notwithstanding the place of booking office or jurisdiction of incorporation or organisation
of such party, the obligations of such party are the same as if it had entered into the
Transaction through its head or home office. This representation will be deemed to be repeated by
such party on each date on which a Transaction is entered into.

(b) Neither party may change the Office through which it makes and receives payments or deliveries
for the purpose of a Transaction without the prior written consent of the other party.

(c) If a party is specified as a Multibranch Party in the Schedule, such Multibranch Party may
make and receive payments or deliveries under any Transaction through any Office listed in the
Schedule, and the Office through which it makes and receives payments or deliveries with respect
to a Transaction will be specified in the relevant Confirmation.

11. Expenses

A Defaulting Party will, on demand, indemnify and hold harmless the other party for and against
all reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other
party by reason of the enforcement and protection of its rights under this Agreement or any Credit
Support Document

					
	 	 	 	 	 
	 
	 	12
	 	ISDA® 1992

 

to which the Defaulting Party is a party or by reason of the early termination of any Transaction,
including, but not limited to, costs of collection.

12. Notices

(a) Effectiveness. Any notice or other communication in respect of this Agreement may be given in
any manner set forth below (except that a notice or other communication under Section 5 or 6 may not
be given by facsimile transmission or electronic messaging system) to the address or number or in
accordance with the electronic messaging system details provided (see the Schedule) and will be deemed effective
as indicated:—

(i) if in writing and delivered in person or by courier, on the date it is delivered;

(ii) if sent by telex, on the date the recipient’s answerback is received;

(iii) if sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the burden of
proving receipt will be on the sender and will not be met by a transmission report
generated by the sender’s facsimile machine);

(iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery is
attempted; or

(v) if sent by electronic messaging system, on the date that electronic message is
received,

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a
Local Business Day or that communication is delivered (or attempted) or received, as applicable,
after the close of business on a Local Business Day, in which case that communication shall be
deemed given and effective on the first following day that is a Local Business Day.

(b) Change of Addresses. Either party may by notice to the other change the address, telex or
facsimile number or electronic messaging system details at which notices or other communications are to be
given to it.

13. Governing Law and Jurisdiction

(a) Governing Law. This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.

(b) Jurisdiction. With respect to any suit, action or proceedings relating to this Agreement
(“Proceedings”), each party irrevocably:—

(i) submits to the jurisdiction of the English courts, if this Agreement is expressed to
be governed by English law, or to the non-exclusive jurisdiction of the courts of the
State of New York and the United States District Court located in the Borough of Manhattan
in New York City, if this Agreement is expressed to be governed by the laws of the State
of New York; and

(ii) waives any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings have been
brought in an inconvenient forum and further waives the right to object, with respect to
such Proceedings, that such court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in any other
jurisdiction (outside, if this Agreement is expressed to be governed by English law, the
Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or
any modification, extension or re-enactment thereof for the time being in force) nor will the
bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in
any other jurisdiction.

(c) Service of Process. Each party irrevocably appoints the Process Agent (if any) specified
opposite its name in the Schedule to receive, for it and on its behalf, service of process in any
Proceedings. If for any

					
	 	 	 	 	 
	 
	 	13
	 	ISDA® 1992

 

reason any party’s Process Agent is unable to act as such, such party will promptly notify the
other party and within 30 days appoint a substitute process agent acceptable to the other party.
The parties irrevocably consent to service of process given in the manner provided for notices in
Section 12. Nothing in this Agreement will affect the right of either party to serve process in
any other manner permitted by law.

(d) Waiver of Immunities. Each party irrevocably waives, to the fullest extent permitted by
applicable law, with respect to itself and its revenues and assets (irrespective of their use or
intended use), all immunity on the grounds of sovereignty or other similar grounds from (i) suit,
(ii) jurisdiction of any court, (iii) relief by way of injunction, order for specific performance
or for recovery of property, (iv) attachment of its assets (whether before or after judgment) and
(v) execution or enforcement of any judgment to which it or its revenues or assets might otherwise
be entitled in any Proceedings in the courts of any jurisdiction and irrevocably agrees, to the
extent permitted by applicable law, that it will not claim any such immunity in any Proceedings.

14. Definitions

As used in this Agreement:—

“Additional Termination Event” has the meaning specified in Section 5(b).

“Affected Party” has the meaning specified in Section 5(b).

“Affected Transactions” means (a) with respect to any Termination Event consisting of an
Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of
such Termination Event and (b) with respect to any other Termination Event, all Transactions.

“Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled,
directly or indirectly, by the person, any entity that controls, directly or indirectly, the
person or any entity directly or indirectly under common control with the person. For this
purpose, “control” of any entity or person means ownership of a majority of the voting power of
the entity or person.

“Applicable Rate” means:—

(a) in respect of obligations payable or deliverable (or which would have been but for Section
2(a)(iii)) by a Defaulting Party, the Default Rate;

(b) in respect of an obligation to pay an amount under Section 6(e) of either party from and after
the date (determined in accordance with Section 6(d)(ii)) on which that amount is payable, the
Default Rate;

(c) in respect of all other obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and

(d) in all other cases, the Termination Rate.

“Burdened Party” has the meaning specified in Section 5(b).

“Change in Tax Law” means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation of any law) that
occurs on or after the date on which the relevant Transaction is entered into.

“consent” includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

“Credit Event Upon Merger” has the meaning specified in Section 5(b).

“Credit Support Document” means any agreement or instrument that is specified as such in this
Agreement.

“Credit Support provider” has the meaning specified in the Schedule.

“Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual
cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant
amount plus 1 % per annum.

					
	 	 	 	 	 
	 
	 	14
	 	ISDA® 1992

 

“Defaulting Party” has the meaning specified in Section 6(a).

“Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv).

“Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule.

“Illegality” has the meaning specified in Section 5(b).

“Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the jurisdiction of
the government or taxation authority imposing such Tax and the recipient of such payment or a
person related to such recipient (including, without limitation, a connection arising from such
recipient or related person being or having been a citizen or resident of such jurisdiction, or
being or having been organised, present or engaged in a trade or business in such jurisdiction, or
having or having had a permanent establishment or fixed place of business in such jurisdiction,
but excluding a connection arising solely from such recipient or related person having executed,
delivered, performed its obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

“law” includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by
the practice of any relevant governmental revenue authority) and “lawful” and “unlawful” will be
construed accordingly.

“Local Business Day” means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to
any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or,
if not so specified, as otherwise agreed by the parties in writing or determined pursuant to
provisions contained, or incorporated by reference, in this Agreement, (b) in relation to any
other payment, in the place where the relevant account is located and, if different, in the
principal financial centre, if any, of the currency of such payment, (c) in relation to any notice
or other communication, including notice contemplated under Section 5(a)(i), in the city specified
in the address for notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and (d) in relation to
Section 5(a)(v)(2), in the relevant locations for performance with respect to such Specified
Transaction.

“Loss” means, with respect to this Agreement or one or more Terminated Transactions, as the case
may be, and a party, the Termination Currency Equivalent of an amount that party reasonably
determines in good faith to be its total losses and costs (or gain, in which case expressed as a
negative number) in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at
the election of such party but without duplication, loss or cost incurred as a result of its
terminating, liquidating, obtaining or reestablishing any hedge or related trading position (or
any gain resulting from any of them). Loss includes losses and costs (or gains) in respect of any
payment or delivery required to have been made (assuming satisfaction of each applicable condition
precedent) on or before the relevant Early Termination Date and not made, except, so as to avoid
duplication, if Section 6(e)(i)(l) or (3) or 6(e)(ii)(2)(A) applies. Loss does not include a
party’s legal fees and out-of-pocket expenses referred to under Section 11. A party will determine
its Loss as of the relevant Early Termination Date, or, if that is not reasonably practicable, as
of the earliest date thereafter as is reasonably practicable. A party may (but need not) determine
its Loss by reference to quotations of relevant rates or prices from one or more leading dealers
in the relevant markets.

“Market Quotation” means, with respect to one or more Terminated Transactions and a party making
the determination, an amount determined on the basis of quotations from Reference Market-makers.
Each quotation will be for an amount, if any, that would be paid to such party (expressed as a
negative number) or by such party (expressed as a positive number) in consideration of an agreement
between such party (taking into account any existing Credit Support Document with respect to the
obligations of such party) and the quoting Reference Market-maker to enter into a transaction (the
“Replacement Transaction”) that would have the effect of preserving for such party the economic
equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent
and assuming the satisfaction of each applicable condition precedent) by the parties under Section
2(a)(i) in respect of such Terminated Transaction or group of Terminated Transactions that would,
but for the occurrence of the relevant Early Termination Date, have

					
	 	 	 	 	 
	 
	 	15
	 	ISDA® 1992

 

been required after that date. For this purpose, Unpaid Amounts in respect of the Terminated
Transaction or group of Terminated Transactions are to be excluded but, without limitation, any
payment or delivery that would, but for the relevant Early Termination Date, have been required
(assuming satisfaction of each applicable condition precedent) after that Early Termination Date is
to be included. The Replacement Transaction would be subject to such documentation as such party
and the Reference Market-maker may, in good faith, agree. The party making the determination (or
its agent) will request each Reference Market-maker to provide its quotation to the extent
reasonably practicable as of the same day and time (without regard to different time zones) on or
as soon as reasonably practicable after the relevant Early Termination Date. The day and time as of
which those quotations are to be obtained will be selected in good faith by the party obliged to
make a determination under Section 6(e), and, if each party is so obliged, after consultation with
the other. If more than three quotations are provided, the Market Quotation will be the arithmetic
mean of the quotations, without regard to the quotations having the highest and lowest values. If
exactly three such quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more than one quotation
has the same highest value or lowest value, then one of such quotations shall be disregarded. If
fewer than three quotations are provided, it will be deemed that the Market Quotation in respect of
such Terminated Transaction or group of Terminated Transactions cannot be determined.

“Non-default Rate” means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant
amount.

“Non-defaulting Party” has the meaning specified in Section 6(a).

“Office” means a branch or office of a party, which may be such party’s head or home office.

“Potential Event of Default” means any event which, with the giving of notice or the lapse of time
or both, would constitute an Event of Default.

“Reference Market-makers” means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the highest credit standing
which satisfy all the criteria that such party applies generally at the time in deciding whether
to offer or to make an extension of credit and (b) to the extent practicable, from among such
dealers having an office in the same city.

“Relevant Jurisdiction” means, with respect to a party, the jurisdictions (a) in which the party
is incorporated, organised, managed and controlled or considered to have its seat, (b) where an
Office through which the party is acting for purposes of this Agreement is located, (c) in which
the party executes this Agreement and (d) in relation to any payment, from or through which such
payment is made.

“Scheduled Payment Date” means a date on which a payment or delivery is to be made under Section
2(a)(i) with respect to a Transaction.

“Set-off” means set-off, offset, combination of accounts, right of retention or withholding or
similar right or requirement to which the payer of an amount under Section 6 is entitled or
subject (whether arising under this Agreement, another contract, applicable law or otherwise) that
is exercised by, or imposed on, such payer.

“Settlement Amount” means, with respect to a party and any Early Termination Date, the sum of:—

(a) the Termination Currency Equivalent of the Market Quotations (whether positive or negative)
for each Terminated Transaction or group of Terminated Transactions for which a Market Quotation
is determined; and

(b) such party’s Loss (whether positive or negative and without reference to any Unpaid Amounts)
for each Terminated Transaction or group of Terminated Transactions for which a Market Quotation
cannot be determined or would not (in the reasonable belief of the party making the determination)
produce a commercially reasonable result.

“Specified Entity” has the meaning specified in the Schedule.

					
	 	 	 	 	 
	 
	 	16
	 	ISDA® 1992

 

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or
future, contingent or otherwise, as principal or surety or otherwise) in respect of borrowed
money.

“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an
agreement with respect thereto) now existing or hereafter entered into between one party to this
Agreement (or any Credit Support Provider of such party or any applicable Specified Entity of such
party) and the other party to this Agreement (or any Credit Support Provider of such other party
or any applicable Specified Entity of such other party) which is a rate swap transaction, basis
swap, forward rate transaction, commodity swap, commodity option, equity or equity index swap,
equity or equity index option, bond option, interest rate option, foreign exchange transaction,
cap transaction, floor transaction, collar transaction, currency swap transaction, cross-currency
rate swap transaction, currency option or any other similar transaction (including any option with
respect to any of these transactions), (b) any combination of these transactions and (c) any other
transaction identified as a Specified Transaction in this Agreement or the relevant confirmation.

“Stamp Tax” means any stamp, registration, documentation or similar tax.

“Tax” means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest, penalties and additions thereto) that is imposed by any government or other
taxing authority in respect of any payment under this Agreement other than a stamp, registration,
documentation or similar tax.

“Tax Event” has the meaning specified in Section 5(b).

“Tax Event Upon Merger” has the meaning specified in Section 5(b).

“Terminated
Transactions” means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all
Transactions (in either case) in effect immediately before the effectiveness of the notice
designating that Early Termination Date (or, if “Automatic Early Termination” applies, immediately
before that Early Termination Date).

“Termination Currency” has the meaning specified in the Schedule.

“Termination Currency Equivalent” means, in respect of any amount denominated in the Termination
Currency, such Termination Currency amount and, in respect of any amount denominated in a currency
other than the Termination Currency (the “Other Currency”), the amount in the Termination Currency
determined by the party making the relevant determination as being required to purchase such
amount of such Other Currency as at the relevant Early Termination Date, or, if the relevant
Market Quotation or Loss (as the case may be), is determined as of a later date, that later date,
with the Termination Currency at the rate equal to the spot exchange rate of the foreign exchange
agent (selected as provided below) for the purchase of such Other Currency with the Termination
Currency at or about 11:00 a.m. (in the city in which such foreign exchange agent is located) on
such date as would be customary for the determination of such a rate for the purchase of such
Other Currency for value on the relevant Early Termination Date or that later date. The foreign
exchange agent will, if only one party is obliged to make a determination under Section 6(e), be
selected in good faith by that party and otherwise will be agreed by the parties.

“Termination Event” means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified
to be applicable, a Credit Event Upon Merger or an Additional Termination Event.

“Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if it were to fund or
of funding such amounts.

“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate
of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to
such Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in
respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or
would have been but for Section 2(a)(iii)) required to be settled by delivery to such party on or
prior to such Early Termination Date and which has not been so settled as at such Early Termination
Date, an amount equal to the fair market

					
	 	 	 	 	 
	 
	 	17
	 	ISDA® 1992

 

value of that which was (or would have been) required to be delivered as of the originally
scheduled date for delivery, in each case together with (to the extent permitted under applicable
law) interest, in the currency of such amounts, from (and including) the date such amounts or
obligations were or would have been required to have been paid or performed to (but excluding)
such Early Termination Date, at the Applicable Rate. Such amounts of interest will be calculated
on the basis of daily compounding and the actual number of days elapsed. The fair market value of
any obligation referred to in clause (b) above shall be reasonably determined by the party obliged
to make the determination under Section 6(e) or, if each party is so obliged, it shall be the
average of the Termination Currency Equivalents of the fair market values reasonably determined by
both parties.

IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MERRILL LYNCH CAPITAL SERVICES, INC.	 	 	 	PSYCHIATRIC SOLUTIONS, INC.	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Angelina Lopes	 	 	 	By:	 	/s/ Brent Turner	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:
	 	 	 	 	 	 	 	Name:
	 	Brent Turner	 	 
	 

	 	Title:
Date:
	 	Authorized Signatory
	 	 	 	 	 	Title:
	 	Executive Vice President, Finance and
Administration	 	 
	 

	 		 	 	 	 	 	 	 	 	 	 	 	 

18

 

EXECUTION DOCUMENT

SCHEDULE

to the

Master Agreement

dated as of November 29, 2007

between

MERRILL LYNCH CAPITAL SERVICES, INC.,

a corporation organized under the laws of the State of Delaware

(“Party A”)

and

PSYCHIATRIC SOLUTIONS, INC.,

a corporation organized under the laws of the State of Delaware

(“Party B”)

Part 1

Termination Provisions

In this Agreement:-

(a) “Specified Entity” means in relation to Party A for the purpose of:-

	 	 	 	 	 
	Section 5(a)(v),
	 	Not Applicable
	Section 5(a)(vi),
	 	Not Applicable
	Section 5(a)(vii),
	 	Not Applicable
	Section 5(b)(iv),
	 	Not Applicable

     in relation to Party B for the purpose of:-

	 	 	 	 	 
	Section 5(a)(v),
	 	Not Applicable
	Section 5(a)(vi),
	 	Not Applicable
	Section 5(a)(vii),
	 	Not Applicable
	Section 5(b)(iv),
	 	Not Applicable

(b) “Specified Transaction” will have the meaning specified in Section 14 of this Agreement.

(c) The “Cross Default” provisions of Section 5(a)(vi) will apply to Party A and to Party B;
provided that (1) the phrase “or becoming capable at such time of being declared” shall be deleted
from clause (1) of such Section 5(a)(vi); and (2) the following language shall be added to the end
thereof: “Notwithstanding the foregoing, a default under subsection (2) hereof shall not
constitute an Event of Default if (i) the default was caused solely by an error or omission of an
administrative or operational

19

 

nature; (ii) funds were available to such party, any Credit Support Provider of such party or any
applicable Specified Entity of such party, as the case may be, to enable it to make the relevant
payment when due; and (iii) the payment is made within three Local Business Days.

If such provisions apply:-

“Specified Indebtedness” will have the meaning specified in Section 14 of this Agreement, and, in
addition, “Specified Indebtedness” as applied to Party B shall also include any obligation of Party
B under or relating to that certain Credit Agreement dated as of July 1, 2005 among Party B as
borrower, the subsidiaries of the borrower identified as guarantors thereunder, the lenders and the
L/C issuer party thereto, Citicorp North America, Inc., as term loan facility administrative agent,
co-syndication agent and documentation agent, and Bank of America, N.A. as Revolving Credit
Facility Administrative Agent, Collateral Agent, Co-syndication Agent and Swing Line Lender (and as
such credit agreement has been amended, supplemented or otherwise modified from time to time, the
“Credit Agreement”).

“Threshold Amount” means, in respect of Party A, USD 100,000,000 or its equivalent in other
currencies, and in respect of Party B, USD 5,000,000 or its equivalent in other currencies;
provided that, in respect of Party B, the Threshold Amount applicable to a default or event of
default under the Credit Agreement shall mean zero (0).

(d) The “Credit Event Upon Merger” provisions of Section 5(b)(iv) will apply to Party A and Party
B. Section 5(b)(iv) of this Agreement shall be amended to read as follows: “Credit Event Upon
Merger” means that a Designated Event (as defined below) occurs with respect to a party, any Credit
Support Provider of such party, or any Specified Entity of such party and such action does not
constitute an event described in Section 5(a)(viii) but, the creditworthiness of the successor,
surviving or transferee entity, taking into account any applicable Credit Support Document (except
any applicable Credit Support Annex or other agreement providing for the pledge of collateral or
any similar agreement) (in which case the party or its successor or transferee, as appropriate,
will be the Affected Party) is materially weaker than that of its predecessor, immediately prior to
the occurrence of the Designated Event. For purposes hereof, a Designated Event means that, after
the Trade Date of any Transaction:

	 	(i)	 	the party, any Credit Support Provider of the party or any Specified Entity
of the party consolidates or amalgamates with, or merges with or into, or transfers
all or substantially all its assets (or any substantial part of the assets comprising
the business of that party) to, or reorganizes, incorporates, reincorporates, or
reconstitutes into or as, another entity, or another entity consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all its
assets to, or reorganizes, incorporates, reincorporates, reconstitutes into or as,
such party; or
	 
	 	(ii)	 	any person or entity acquires directly or indirectly the beneficial ownership
of equity securities having the power to elect a majority of the board of directors of
the party, any Credit Support Provider of the party or any applicable Specified Entity
of the party; or

(e) The “Automatic Early Termination” provision of Section 6(a) will not apply to either
Party A or to Party B.

(f) Payments on Early Termination. For the purpose of Section 6(e) of this Agreement:-

	 	(i)	 	Market Quotation will apply.
	 
	 	(ii)	 	The Second Method will apply.

20

 

(g) “Termination Currency” means United States Dollars.

(h) Additional Termination Event will apply.

	 	 	The occurrence of any of the events set out in clauses (i) and (ii) immediately below shall
constitute the occurrence of an Additional Termination Event pursuant to Section 5(b)(v),
and Party B shall be the sole Affected Party.

	 	(i)	 	(A)	 	(x)	 	the lending and other credit extension commitment of each lender and
other credit extension provider under the Credit Agreement have been terminated in full
and each loan and other extension of credit made pursuant to the Credit
Agreement have been repaid in full or refinanced; provided that a refinancing of all or
any portion of the Credit Agreement shall not constitute an Additional Termination
Event if such refinancing indebtedness (i) is secured by substantially the same
Collateral as the Collateral immediately prior to such refinancing, (ii) does not
contain materially weaker financial covenants and (iii) Party B’s swap obligations to
Party A continue to be secured equally and ratably with Party B’s obligations to the
lenders under such credit facility; or

	 	(y)	 	all or substantially all of the collateral (if
any) securing the obligations of Party B under the Credit Agreement is
released prior to the date on which no Transaction is outstanding under
this Agreement and no amount is owing to Party A under this Agreement.

	 	(ii) If at any time any of the priorities of payment accorded to Party A under the
Credit Agreement (as defined herein) and the Security Agreement (as defined herein)
with respect to proceeds from the Collateral (as defined herein) is lowered from that
accorded to Party A under Section 2.13 of the Credit Agreement (as defined herein, but
solely for the purposes of this clause (ii), without giving effect to any amendment to
such Credit Agreement after the date of this Agreement) as at the date of this
Agreement. As used herein, the terms “Collateral” and “Security Agreement” shall have
the meanings assigned respectively thereto under the Credit Agreement (as such term is
defined herein).

21

 

Part 2

Tax Representations

(a) Payer Representations. For the purpose of Section 3(e) of this Agreement, Party A will make
the following representation and Party B will make the following representation:-

It is not required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any deduction or
withholding for or on account of any Tax from any payment (other than interest under Section
2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party under this
Agreement. In making this representation, it may rely on (i) the accuracy of any
representations made by the other party pursuant to Section 3(f) of this Agreement, (ii) the
satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this Agreement
and the accuracy and effectiveness of any document provided by the other party pursuant to
Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction of the agreement
of the other party contained in Section 4(d) of this Agreement, provided that it shall not
be a breach of this representation where reliance is placed on clause (ii) and the other
party does not deliver a form or document under Section 4(a)(iii) by reason of material
prejudice to its legal or commercial position.

(b) Payee Representations. For the purpose of Section 3(f) of this Agreement, Party A and Party B
make the representations specified below:-

	 	(i)	 	The following representation applies to Party A:-
	 
	 	 	 	Party A is a corporation organized under the laws of the State of Delaware.
	 
	 	(ii)	 	The following representation applies to Party B:-
	 
	 	 	 	Party B is a corporation organized under the laws of the State of Delaware.

22

 

Part 3

Agreement to Deliver Documents

For the purpose of Section 4(a)(i) and (ii) of this Agreement, each party agrees to deliver the
following documents as applicable:-

(a) Tax forms, documents or certificates to be delivered are:-

	 	 	 	 	 
	Party Required to	 	 	 	 
	Deliver Document	 	Form/Document/Certificate	 	Date by Which to be Delivered
	Party A/Party B

	 	A correct, complete and
executed U.S. Internal
Revenue Service Form W-9
(or any successor
thereto), including
appropriate attachments,
that eliminates U.S.
federal backup
withholding tax on
payments under this
Agreement.
	 	(i) Before the first Payment
Date under this Agreement,
(ii) promptly upon
reasonable demand by the
other party, and (iii)
promptly upon learning that
any such form previously
provided by such party has
become obsolete or
incorrect.

(b) Other Documents to be delivered are:-

	 	 	 	 	 	 	 
	Party Required	 	 	 	 	 	Covered by
	to Deliver	 	Form/Document/	 	Date by which	 	Section 3(d)
	Document	 	Certificate	 	to be Delivered	 	Representation
	Party A/Party B.

	 	Annual audited
financial
statements (or, in
the case of Party
A, of its Credit
Support Provider)
prepared in
accordance with
generally accepted
accounting
principles in the
country in which
the party (or, in
the case of Party
A, its Credit
Support Provider)
is organized.
	 	Promptly after
request.
	 	Yes.
	 
	 	 	 	 	 	 
	Party A/Party B.

	 	Quarterly unaudited
financial
statements (or, in
the case of Party
A, of its Credit
Support Provider)
prepared in
accordance with
generally accepted
accounting
principles in the
country in which
the party (or, in
the case of Party
A, its Credit
Support Provider)
is organized.
	 	Promptly after
request.
	 	Yes.
	 
	 	 	 	 	 	 
	Party A/Party B.

	 	Credit Support
Document, if any,
specified in Part 4
of the Schedule,
such Credit Support
Document being duly
executed if
required.
	 	Concurrently with
the execution of
this Agreement.
	 	No.
	 
	 	 	 	 	 	 
	Party A/Party B.

	 	Certified copies of
the resolution(s)
of its board of
directors or other
documents
authorizing the
execution and
delivery of this
Agreement.
	 	Concurrently with
the execution of
this Agreement.
	 	Yes.

23

 

	 	 	 	 	 	 	 
	Party Required	 	 	 	 	 	Covered by
	to Deliver	 	Form/Document/	 	Date by which	 	Section 3(d)
	Document	 	Certificate	 	to be Delivered	 	Representation
	Party A/Party B.

	 	Incumbency
certificate or
other documents
evidencing the
authority of the
party entering into
this Agreement or
any other document
executed in
connection with
this Agreement.
	 	Concurrently with
the execution of
this Agreement or
of any other
documents executed
in connection with
this Agreement.
	 	Yes.

24

 

Part 4

Miscellaneous

(a) Addresses for Notices: For the purpose of Section 12(a) of this Agreement:-

Address for notices or communications to Party A:-

	 	 	 
	Address:

	 	Merrill Lynch World Headquarters
	 

	 	2 World Financial Center, 6thFloor
	 

	 	New York, New York 10281
	Attention:

	 	Swap Group
	Facsimile No.:	 	646-805-0218                     Telephone No.:  212 236-8709

(For all purposes)

Additionally, a copy of all notices pursuant to Sections 5, 6, and 7 as well as any changes to
counterparty’s address, telephone number or facsimile number should be sent to:

GMI Counsel

Merrill Lynch World Headquarters

4 World Financial Center, 12th Floor

New York, New York 10080

Attention: Swaps Legal

Facsimile No.: 212 449-6993

Address for notices or communications to Party B:-

	 	 	 
	Address:

	 	Psychiatric Solutions, Inc.
	 

	 	6640 Carothers Parkway, Suite 500
	 

	 	Franklin, Tennessee 37067
	Attention:

	 	Brent Turner
	Facsimile No.:	 	615-312-5711                    Telephone No.:  615-312-5746

(For all purposes)

(b) Process Agent. For the purpose of Section 13(c):-

Party A appoints as its Process Agent:     Not Applicable.

Party B appoints as its Process Agent:     Not Applicable.

(c) Offices. The provisions of Section 10(a) will apply to this Agreement.

(d) Multibranch Party. For the purpose of Section 10(c) of this Agreement:

Party A is not a Multibranch Party.

Party B is not a Multibranch Party.

(e) Calculation Agent. The Calculation Agent is Party A, unless otherwise specified in a
Confirmation in relation to the relevant Transaction.

25

 

(f) Credit Support Document. Details of any Credit Support Document:-

Party A: Guarantee of Merrill Lynch & Co., Inc. (“ML&Co.”) in the form attached hereto as Exhibit
A.

Party B: (i) The Credit Agreement (including all agreements, instruments and other documents
relating to the Credit Agreement (as such agreements, instruments and other documents may be
amended, supplemented or otherwise modified from time to time) and, for the avoidance of doubt,
including, but without limitation, any security agreements, pledge agreements and intercreditor
agreements executed and delivered pursuant to or in connection with the Credit Agreement and any
other agreements relating to the Credit Agreement providing for the granting and/or administration
of any security interest or other lien) and (ii) any Confirmation which provides for credit support
or enhancement of a Transaction.

(g) Credit Support Provider.

Credit Support Provider means in relation to Party A, ML & Co.

Credit Support Provider means in relation to Party B, Not Applicable

(h) Governing Law. This Agreement will be governed by and construed in accordance with the laws of
the State of New York without reference to choice of law doctrine.

(i) Netting of Payments. Subparagraph (ii) of Section 2(c) of this Agreement will not apply.

(j) “Affiliate” will have the meaning specified in Section 14 of this Agreement.

26

 

Part 5

Other Provisions

(1) Financial Statements. Section 3(d) is hereby amended by adding in the third line thereof after
the word “respect” and before the period:
“or, in the case of financial statements, a fair presentation of the financial condition of
the relevant party”.

(2) Additional Representations. For purposes of Section 3, the following shall be added,
immediately following paragraph (f) thereto:

(g) It is an “eligible contract participant” within the meaning of the United States
Commodity Exchange Act.

(h) It has entered into this Agreement (including each Transaction evidenced hereby) in
conjunction with its line of business (including financial intermediation services) or the
financing of its business.

(i) It is entering into this Agreement, any Credit Support Document to which it is a party,
each Transaction and any other documentation relating to this Agreement or any Transaction
as principal (and not as agent or in any other capacity, fiduciary or otherwise).

(j) Non-Reliance. Each party represents to the other party (which representation will be
deemed to be repeated by each party on each date on which a Transaction is entered into or
amended, extended or otherwise modified) that it is acting for its own account, and has made
its own independent decisions to enter into this Agreement and any Transaction hereunder and
as to whether this Agreement and any Transaction hereunder is appropriate or proper for it
based on its own judgment and upon advice from such advisors as it has deemed necessary. It
is not relying on any communication (written or oral) of the other party as investment
advice or as a recommendation to enter into this Agreement or any Transaction hereunder, it
being understood that information and explanations related to the terms and conditions of
this Agreement and any Transaction hereunder shall not be considered investment advice or a
recommendation to enter into this Agreement or any Transaction hereunder. No communication
(written or oral) received from the other party shall be deemed to be an assurance or
guarantee as to the expected results of any Transaction hereunder.

(3) Transfer. Notwithstanding the provisions of Section 7, Party A may assign and delegate its
rights and obligations under (i) any one or more Transactions or (ii) this Agreement and all
Transactions hereunder (the “Transferred Obligations”) to any subsidiary of ML & Co. (the
“Assignee”) by notice specifying the effective date of such transfer (“Effective Date”) and
including an executed acceptance and assumption by the Assignee of the Transferred Obligations;
provided that with respect to (i) and (ii) above, (i) Party B is not, as a result of such transfer,
required to pay to the Assignee an amount in respect of an Indemnifiable Tax under Section
2(d)(i)(4) (except in respect of interest under Section 2(e), 6(d)(ii), or 6(e)) greater than the
amount in respect of which Party B would have been required to pay to Party A in the absence of
such transfer; and (ii) the Assignee is not, as a result of such transfer, required to withhold or
deduct on account of a Tax under Section 2(d)(i) (except in respect of interest under Section 2(e),
6(d)(ii), or 6(e)) an amount in excess of that which Party A would have been required to withhold
or deduct in the absence of such transfer, unless the Assignee would be required to make additional
payments pursuant to Section 2(d)(i)(4) corresponding to such excess.

27

 

On the Effective Date, (a) Party A shall be released from all obligations and liabilities arising
under the Transferred Obligations; and (b) if Party A has not assigned and delegated its rights and
obligations under this Agreement and all Transactions hereunder, the Transferred Obligations shall
cease to be Transaction(s) under this Agreement and shall be deemed to be Transaction(s) under the
master agreement, if any, between Assignee and Party B, provided that, if at such time Assignee and
Party B have not entered into a master agreement, Assignee and Party B shall be deemed to have
entered into an ISDA form of Master Agreement (Multicurrency-Cross Border) with a Schedule
substantially in the form hereof but amended to reflect the name of the Assignee and the address
for notices and any amended representations under Part 2 hereof as may be specified in the notice
of transfer.

	(4)	 	Method of Notice. Section 12(a)(ii) of the Master Agreement is deleted in its entirety.
	 
	(5)	 	Jurisdiction.

(a) Section 13(b)(i) of the Agreement is amended to read in its entirety as follows:

“(i) submits to the jurisdiction of the courts of the State of New York and the United
States District Court located in the Borough of Manhattan in New York City, which submission
shall be exclusive unless none of such courts has lawful jurisdiction over such
Proceedings;” and

(b) the final paragraph of Section 13(b) of the Agreement is hereby deleted.

	(6)	 	Set-off.

(a) Without affecting the provisions of this Agreement requiring the calculation of certain
net payment amounts, all payments under this Agreement will be made without setoff or
counterclaim; provided, however, that in addition to any rights of setoff a party may have
as a matter of law or otherwise, upon the designation or deemed designation of an Early
Termination Date, the non-Defaulting Party or non-Affected party (in either case, “X”) may
without prior notice set off any sum or obligation (whether or not arising under this
Agreement, whether or not matured, whether or not contingent and regardless of the currency,
place of payment or booking office of the obligation) owed or due by the Defaulting Party or
Affected Party (in either case, “Y”) to X against any sum or obligation (whether or not
arising under this Agreement, whether or not matured, whether or not contingent and
regardless of the currency, place of payment or booking office of the obligation) owed or
due by X or any Affiliate of X to Y.

(b) For the purposes of cross-currency set-off, X may convert any obligation to another
currency at a market rate determined by X.

(c) If an obligation is unascertained, X may in good faith estimate that obligation and set
off in respect of the estimate, subject to the relevant party accounting to the other when
the obligation is ascertained.

(7) Escrow. If by reason of the time difference between the cities in which payments are to be
made, it is not possible for simultaneous payments to be made on any date on which both parties are
required to make payments hereunder, either party may, at its option and in its sole discretion,
notify the other party that payments on that date are to be made in escrow. In this case, deposit
of the payment due earlier on that date shall be made by 2:00 p.m. (local time at the place for the
earlier payment) on that date with an escrow agent selected by the notifying party, accompanied by
irrevocable payment instruction (i) to release the deposited payment to the intended recipient upon
receipt by the escrow agent of the required deposit of the corresponding payment from the other
party on the same date accompanied by irrevocable payment instructions to the same effect or (ii)
if the required deposit of the corresponding payment is not

28

 

made on that same date, to return the payment deposited to the party that paid it in escrow. The
party that elects to have payments made in escrow shall pay the costs of the escrow arrangements
and shall cause those arrangements to provide that the intended recipient of the payment due to be
deposited first shall be entitled to interest on that deposited payment for each day in the period
of its deposit at the rate offered by the escrow agent for that day for overnight deposits in the
relevant currency in the office where it holds that deposited payment (at 11:00 a.m. local time on
that day) if that payment is not released by 5:00 p.m. local time on the date it is deposited for
any reason, other than the intended recipient’s failure to make the escrow deposit it is required
to make hereunder in a timely fashion.

(8) Consent to Recording. The parties agree that each may electronically record all telephonic
conversations between marketing and trading personnel in connection with this Agreement.

(9) Waiver of Jury Trial. Each party hereby irrevocably waives any and all right to trial by jury
with respect to any legal proceeding arising out of or relating to this Agreement or any
Transaction contemplated hereunder.

(10) Secured Party. Party A is a “Secured Party” as such term is defined in the Credit Agreement
and the obligations hereunder are “Obligations” as defined in the Credit Agreement and “Secured
Obligations” as defined in the Amended and Restated Security Agreement dated as of December 21,
2004.

(11) Swap Contract & Loan Document. This Agreement is a “Swap Contract” and a “Loan Document” as
such terms are defined in the Credit Agreement.

29

 

EXHIBIT A

GUARANTEE OF MERRILL LYNCH & CO., INC.

     FOR VALUE RECEIVED, receipt of which is hereby acknowledged, MERRILL LYNCH & CO., INC., a
corporation duly organized and existing under the laws of the State of Delaware (“ML & CO.”),
hereby unconditionally guarantees (the “Guarantee”) to Psychiatric Solutions, Inc. (the “Company”),
the due and punctual payment of any and all amounts payable by Merrill Lynch Capital Services,
Inc., a corporation organized under the laws of the State of Delaware (the “Obligor”), its
successors and permitted assigns, to the extent such successors or permitted assigns are direct or
indirect subsidiaries of ML & Co., under the terms of the ISDA Master Agreement between the Company
and the Obligor, dated as of November 29, 2007 (the “Agreement”), including, in case of default,
interest on any amount due, when and as the same shall become due and payable, whether on the
scheduled payment dates, at maturity, upon declaration of termination or otherwise, according to
the terms thereof. In case of the failure of the Obligor punctually to make any such payment, ML &
Co. hereby agrees to make such payment, or cause such payment to be made, promptly upon demand made
by the Company to ML & Co.; provided, however that delay by the Company in giving such demand shall
in no event affect ML & Co.’s obligations under this Guarantee. This Guarantee shall remain in
full force and effect or shall be reinstated (as the case may be) if at any time any payment
guaranteed hereunder, in whole or in part, is rescinded or must otherwise be returned by the
Company upon the insolvency, bankruptcy or reorganization of the Obligor or otherwise, all as
though such payment had not been made.

This Guarantee shall be one of payment and not collection and shall be irrevocable in respect of
any payment obligations incurred by the Obligor prior to its termination as further provided below.
ML & Co. hereby agrees that its obligations hereunder shall be unconditional, irrespective of the
validity, regularity or enforceability of the Agreement; the absence of any action to enforce the
same; any waiver or consent by the Company concerning any provisions thereof; the rendering of any
judgment against the Obligor or any action to enforce the same; or any other circumstances that
might otherwise constitute a legal or equitable discharge of a guarantor or a defense of a
guarantor other than defense of payment. ML & Co. covenants that this Guarantee will not be
discharged except by complete payment of the amounts payable under the Agreement. This Guarantee
shall continue to be effective if the Obligor merges or consolidates with or into another entity,
loses its separate legal identity or ceases to exist.

ML & Co. hereby waives diligence; presentment; protest; notice of protest, acceleration, and
dishonor; filing of claims with a court in the event of insolvency or bankruptcy of the Obligor;
all demands whatsoever, except as noted in the first paragraph hereof; and any right to require a
proceeding first against the Obligor.

ML & Co. hereby certifies and warrants that this Guarantee constitutes the valid obligation of ML &
Co. and complies with all applicable laws.

This Guarantee shall be governed by, and construed in accordance with, the laws of the State of New
York.

This Guarantee may be terminated at any time by notice by ML & Co. to the Company given in
accordance with the notice provisions of the Agreement, effective upon receipt of such notice by
the Company or such later date as may be specified in such notice; provided, however, that this
Guarantee shall continue in full force and effect with respect to any payment obligation of
the Obligor under the Agreement entered into prior to the effectiveness of such notice of
termination.

1

 

     This Guarantee becomes effective concurrent with the effectiveness of the Agreement, according
to its terms.

     IN WITNESS WHEREOF, ML & Co. has caused this Guarantee to be executed in its corporate name by
its duly authorized representative.

	 	 	 	 	 
	 	MERRILL LYNCH & CO., INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 	Date:  	 	 
	 

2

 

COVER STATEMENT

CLIENT/COUNTERPARTY RELATIONSHIP

Dear Client/Counterparty:

     Merrill Lynch is pleased to provide the attached statement of Generic Risks Associated with
Over-the-Counter FX and Derivative Transactions (“OTC Transactions”) under this Cover Statement
that concerns, among other things, the nature of our relationship with you in the context of such
transactions. This statement was developed for our new and our ongoing client/counterparties in
response to suggestions that over-the-counter FX and derivative dealers consider taking steps to
ensure that market participants utilizing OTC Transactions understand their risk exposures and the
nature of their relationships with dealers before they enter into OTC Transactions.

     Merrill Lynch (“we”) are providing to you and your organization (“you”) the attached statement
of Generic Risks Associated with OTC Transactions in order to identify, in general terms, certain
of the principal risks associated with individually negotiated OTC Transactions. The attached
statement does not purport to identify the nature of the specific market or other risks associated
with a particular transaction.

     Before entering into an OTC Transaction, you should ensure that you fully understand the terms
of the transaction, relevant risk factors, the nature and extent of your risk of loss and the
nature of the contractual relationship into which you are entering. You should also carefully
evaluate whether the transaction is appropriate for you in light of your experience, objectives,
financial resources, and other relevant circumstances and whether you have the operational
resources in place to monitor the associated risks and contractual obligations over the term of the
transaction. If you are acting as a financial adviser or agent, you should evaluate these
considerations in light of the circumstances applicable to your principal and the scope of your
authority.

     If you believe you need assistance in evaluating and understanding the terms or risks of a
particular OTC Transaction, you should consult appropriate advisers before entering into the
transaction.

     Unless we have expressly agreed in writing to act as your adviser with respect to a particular
OTC Transaction pursuant to terms and conditions specifying the nature and scope of our advisory
relationship, we are acting in the capacity of an arm’s length contractual counterparty to you in
connection with the transaction and not as your financial adviser or fiduciary. Accordingly, unless
we have so agreed to act as your adviser, you should not regard transaction proposals, suggestions
or other written or oral communications from us as recommendations or advice or as expressing our
view as to whether a particular transaction is appropriate for you or meets your financial
objectives.

     Finally, we and/or our affiliates may from time to time take proprietary positions and/or make
a market in instruments identical or economically related to OTC Transactions entered into with
you, or may have an investment banking or other commercial relationship with and access to
information from the issuer(s) of securities, financial instruments, or other interests underlying
OTC Transactions entered into with you. We may also undertake proprietary activities, including
hedging transactions related to the initiation or termination of an OTC Transaction with you, that
may adversely affect the market price, rate index or other market factor(s) underlying an OTC
Transaction entered into with you and consequently the value of the transaction.

 

 

GENERIC RISKS ASSOCIATED WITH

OVER-THE-COUNTER FX AND DERIVATIVE TRANSACTIONS

Over-the-counter FX and derivative transactions (“OTC Transactions), like other financial
transactions, involve a variety of significant risks. The specific risks presented by a particular
OTC Transaction necessarily depend upon the terms of the transaction and your circumstances. In
general, however, all OTC Transactions involve some combination of market risk, credit risk,
funding risk and operational risk.

Market risk is the risk that the value of a transaction will be adversely affected by
fluctuations in the level or volatility of or correlation or relationship between one
or more market prices, rates or indices or other market factors or by illiquidity in
the market for the relevant transaction or in a related market.

Credit risk is the risk that a counterparty will fail to perform its obligations to
you when due.

Funding risk is the risk that, as a result of mismatches or delays in the timing of
cash flows due from or to your counterparties in OTC Transactions or related hedging,
trading, collateral or other transactions, you or your counterparty will not have
adequate cash available to fund current obligations.

Operational risk is the risk of loss to you arising from inadequacies in or failures
of your internal systems and controls for monitoring and quantifying the risks and
contractual obligations associated with OTC Transactions, for recording and valuing
OTC and related Transactions, or for detecting human error, systems failure or
management failure.

There may be other significant risks that you should consider based on the terms of a specific
transaction. Highly customized OTC Transactions in particular may increase liquidity risk and
introduce other significant risk factors of a complex character. Highly leveraged transactions may
experience substantial gains or losses in value as a result of relatively small changes in the
value or level of an underlying or related market factor.

Because the price and other terms on which you may enter into or terminate an OTC Transaction are
individually negotiated, these may not represent the best price or terms available to you from
other sources.

In evaluating the risks and contractual obligations associated with a particular OTC Transaction,
you should also consider that an OTC Transaction may be modified or terminated only by mutual
consent of the original parties and subject to agreement on individually negotiated terms.
Accordingly, it may not be possible for you to modify, terminate or offset your obligations or your
exposure to the risks associated with a transaction prior to its scheduled termination date.

 

 

Similarly, while market makers and dealers generally quote prices or terms for entering into or
terminating OTC Transactions and provide indicative or mid-market quotations with respect to
outstanding OTC Transactions, they are generally not contractually obligated to do so. In addition,
it may not be possible to obtain indicative or mid-market quotations for an OTC Transaction from a
market maker or dealer that is not a counterparty to the transaction. Consequently, it may also be
difficult for you to establish an independent value for an outstanding OTC Transaction. You should
not regard your counterparty’s provision of a valuation or indicative price at your request as an
offer to enter into or terminate the relevant transaction at that value or price, unless the value
or price is identified by the counterparty as firm or binding.

This brief statement does not purport to disclose all of the risks and other material
considerations associated with OTC Transactions. You should not construe this generic disclosure
statement as business, legal, tax or accounting advice or as modifying applicable law. You should
consult your own business, legal, tax and accounting advisers with respect to proposed OTC
Transactions and you should refrain from entering into any OTC Transaction unless you have fully
understood the terms and risks of the transaction, including the extent of your potential risk of
loss.

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