Document:

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                                                                     Exhibit-4.5

                       ISSUING AND PAYING AGENT AGREEMENT

This Issuing and Paying Agency Agreement (the "Agreement"), dated as of May 19,
2000, between Harrah's Operating Company, Inc., a Delaware corporation (the
"Issuer"), Harrah's Entertainment, Inc. (the "Guarantor"), and Bank One,
National Association, a national banking association (the "IPA"), as issuing and
paying agent, in connection with the issuance and payment, in book entry only
form, of certain commercial paper master notes (collectively the "Notes"). The
Issuer hereby appoints the IPA its agent to issue, deliver and pay such Notes as
herein set forth. The Issuer hereby agrees with the IPA as follows:

1.       Definitions.

         Terms capitalized shall have the meanings assigned them below.

         "Advance" means funds credited by the IPA to or on behalf of the Issuer
         for the purpose of either crediting Proceeds to the Note Account or
         remitting payment on Notes at their maturity.

         "Agreement" means this Issuing and Paying Agency Agreement as defined
         in the preamble, and includes the terms of the Exhibits.

         "Business Day" means any day that both the IPA and DTC are open for
         business.

         "Certificate Agreement" means the Commercial Paper Certificate
         Agreement dated May 17, 1994, between DTC and the IPA (formerly known
         as The First National Bank of Chicago), a copy of which is attached
         hereto as Exhibit C.

         "Dealer" means any person other than an Issuer Agent which has been
         authorized by the Issuer to deliver Issuance Instructions to the IPA
         and is listed on an Incumbency Certificate.

         "DTC" means The Depository Trust Company, a New York limited purpose
         trust company, and its successors and assigns.

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         "GAITIR License Agreement" means the nonexclusive, nontransferable
         license agreement to use certain software products and associated
         printed documentation pursuant to a separate license agreement attached
         as Exhibit E.

         "Incumbency Certificate" means the certificate of the Issuer,
         substantially in the form of Exhibit A, executed by its Secretary or
         any of its Assistant Secretaries, which identifies Issuer Agents from
         time to time.

         "Indemnified Persons" means the IPA and its officers, directors,
         employees, and agents.

         "Issuance Instructions" means the instructions as to issuance of Notes
         delivered to the IPA by an Issuer Agent or Dealer pursuant to Section
         3.B. of the Agreement.

         "Issuer Agents" means those officers, employees, or agents of the
         Issuer identified on an Incumbency Certificate the Issuer has
         authorized to execute Notes, deliver Note Issuance Instructions, and
         deliver other notices hereunder to the IPA.

         "Manual" means the DTC Commercial Paper Issuing/Paying Agent Manual, as
         modified from time to time, including the rules of the DTC Same Day
         funds Settlement System, Money Market Instruments Program.

         "Maturity Date" means the date any Note is payable by its terms.

         "Note" or "Notes" means the commercial paper master notes of the Issuer
         issued pursuant to the Agreement substantially in the form set forth in
         Exhibit B.

         "Note Account" means the Issuer's demand deposit account number
         10-42472 established at the IPA pursuant to Section 6.A.

         "Proceeds" means, with respect to any Note, funds representing the
         purchase price for its original issuance.

         "Representation Letter" means the agreement by and among the IPA, the
         Issuer and DTC with respect to the Notes substantially in the form set
         forth in Exhibit D.

2.       Authorization.

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         The Issuer shall deliver to the IPA upon execution of this Agreement an
         Incumbency Certificate to designate the Issuer Agents and Dealers to
         IPA. Until the IPA receives a subsequent Incumbency Certificate from
         the Issuer, it may rely on the last such Incumbency Certificate
         delivered to it. Any Note bearing the signature of an Issuer Agent on
         the date such signature is affixed thereto shall bind the Issuer after
         the authentication and delivery of such Note even if such person shall
         have ceased to hold his or her office on the date such Note is
         authenticated and delivered.

3.       Notes.

         A.       The Notes shall be issued to DTC, or its nominee in
                  substantially the form set forth in Exhibit B, as appropriate.
                  In connection with the issuance of Notes, (i) the IPA and DTC
                  have previously entered into the Certificate Agreement and
                  (ii) the IPA, the Issuer and DTC shall jointly execute the
                  Representation Letter. The Issuer understands and acknowledges
                  that the execution of the Certificate Agreement and the
                  Representation Letter by the IPA is a necessary condition
                  precedent to the acceptance of the Notes by DTC and as such,
                  the Issuer agrees, (x) to be bound by the provisions of the
                  Certificate Agreement and Representation Letter and (y) that
                  the Certificate Agreement and Representation Letter shall
                  supplement the provisions of this Agreement.

         B.       Prior to 12:00 noon (Chicago Time) on each issuance date, an
                  Issuer Agent or Dealer shall provide the IPA with Issuance
                  Instructions specifying the issue date, interest rate (if
                  applicable), maturity date (which shall be no later than 270
                  days from the date of issuance thereof), proceeds amount,
                  maturity amount, payee and payee's settlement bank (which bank
                  must be a participant in the DTC book entry commercial paper
                  program).

         C.       Following receipt of Issuance Instructions, the IPA will
                  process such Issuance Instructions in accordance with and
                  subject to (i) this Agreement, (ii) the procedures set forth
                  in the Manual, (iii) the terms and conditions of the
                  Certificate Agreement and (iv) the terms and conditions of the
                  Representation Letter.

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                  Unless otherwise instructed by an Issuer Agent or Dealer,
                  Notes delivered under this Agreement shall be made against
                  payment as more fully set forth in Section 4 below. In the
                  event of a conflict between the terms of this Agreement and
                  the terms of the Manual, the Certificate Agreement, or the
                  Representation Letter, the provisions of this Agreement shall
                  control.

4.       Proceeds of Sale of Notes.

         A.       The Issuer understands that when the IPA is instructed to
                  deliver against payment, the processing of Issuance
                  Instructions may not be completed simultaneously against the
                  receipt of payment. Accordingly, the IPA is authorized to
                  initiate delivery and to receive payment from the purchaser in
                  accordance with the provisions of the Manual. All such
                  payments shall be credited upon receipt to the Note Account.
                  The Issuer hereby agrees to bear the risk that the IPA fails
                  to receive payment of the Proceeds of any Notes issued
                  pursuant to Issuance Instructions.

         B.       Funds received by the IPA as Proceeds will be credited to the
                  Note Account. Prior to receipt of such Proceeds, the IPA may,
                  but shall not be obligated to, credit such Proceeds to the
                  Issuer by making an Advance. Upon telephonic, written (which
                  may be in facsimile form), or electronic instructions received
                  by the IPA from an Issuer Agent, an Advance may be (i) used in
                  payment of Notes presented for payment upon maturity, (ii)
                  deposited to an account of the Issuer at the IPA, or (iii)
                  transferred to the account of the Issuer at another bank. If
                  the IPA, in its sole discretion, makes an Advance, the Issuer
                  agrees to apply the Proceeds to repay such Advance. If such
                  Proceeds are insufficient to repay the Advance in full, the
                  Issuer agrees to repay such Advance within 24 hours from the
                  time such Advance was made. Interest on any Advance shall
                  accrue from the day such Advance is made, and shall bear
                  interest (i) in accordance with any separate agreement between
                  the Issuer and the IPA in effect at the time, or (ii) if no
                  such separate agreement is then in effect, then as described
                  in the IPA's standard fee schedule.

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5.       Instructions.

         A.       The Issuer hereby authorizes the IPA to act in accordance with
                  Issuance Instructions received electronically or in writing
                  from an Issuer Agent or the Dealer as provided in the
                  following Sections 5.B and 5.C.

         B.       The Issuer or the Dealer may initiate Issuance Instructions
                  electronically pursuant to the GAITIR License Agreement or
                  otherwise in accordance with the IPA's standard business
                  practices. The IPA shall be entitled to rely on the Issuance
                  Instructions received electronically hereunder and may assume
                  conclusively that all such Issuance Instructions were
                  transmitted by the Issuer or on the Issuer's behalf.

         C.       Telephonic Issuance Instructions shall be given to the IPA by
                  an Issuer Agent or the Dealer at the telephone number
                  specified by the IPA from time to time for such purpose, and
                  shall be expressed to be for the attention of any of its
                  officers or employees whose name has been specified for such
                  purpose. The telephone numbers initially authorized for such
                  purpose are set forth in Exhibit F, which may be modified by
                  notice to the Issuer and each Dealer. Telephonic Issuance
                  Instructions to the IPA by an Issuer Agent or Dealer shall be
                  confirmed in writing by an Issuer Agent or Dealer within 24
                  hours of the time such instruction is given; provided that, in
                  the event a discrepancy exists between the Telephonic Issuance
                  Instructions and the subsequent confirmation, or in the
                  absence of receiving a written confirmation prior to the time
                  specified in Sections 3.B. above, the Telephonic Issuance
                  Instructions shall be deemed the proper and controlling
                  Issuance Instructions. A written confirmation may be effected
                  by any electronic means of communications, including
                  transmission by telecopier or computer.

6.       Note Account.

         A.       For purposes of the transactions contemplated herein, the
                  Issuer shall open and maintain the Note Account.

         B.       Deposits will be made to the Note Account from time to time by
                  or on behalf of the Issuer by delivery of

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                  funds to be deposited therein. All proceeds shall be credited
                  to the Note Account. Withdrawals or other uses of the funds
                  from the Note account shall be made in accordance with
                  instructions from an Issuer Agent or to repay amounts payable
                  under Sections 4.B. or 7.D. hereof. Notwithstanding anything
                  in this Agreement to the contrary, the IPA shall not be
                  obligated (i) to permit any withdrawal or other use of funds
                  from the Note Account, or (ii) to honor any instructions to
                  those effects, if the IPA, in its sole discretion, shall
                  determine that as a result there would be an overdraft or
                  negative balance in respect of final credits (whether in the
                  course of any day, overnight or otherwise) in the Note
                  Account.

7.       Payment of Notes.

         A.       The IPA hereby agrees to serve as paying agent of the Issuer
                  with respect to each of the Notes presented for payment
                  pursuant to this Agreement. The Issuer shall on the Maturity
                  Date of such Notes, deposit or cause to be deposited in the
                  Note Account by 10:00 a.m. Chicago time an amount in
                  immediately available funds equal to the maturity amount of
                  such Notes, or if applicable, the principal plus interest
                  payable thereon.

         B.       The IPA is hereby authorized and instructed by the Issuer, to
                  the extent that funds sufficient to effect such payment are
                  available in the Note Account, to pay, and shall pay, each of
                  the Notes upon presentation thereof. The IPA is further hereby
                  authorized and instructed by the Issuer to debit the Note
                  Account in the amount of each such payment.

         C.       If at any time funds in the Note Account are insufficient to
                  cover payment of any matured Notes presented prior to 2:00
                  p.m. (Chicago time) on the Maturity Date of such Notes, the
                  IPA may, but shall not be obligated to, pay the Notes thus
                  creating an overdraft for the account of the Issuer, which
                  overdraft shall be charged to the Note Account.

         D.       The amount of any resulting overdraft shall represent an
                  Advance by the IPA to the Issuer to be promptly repaid by the
                  Issuer together with any applicable overdraft charges and
                  interest on such advance for

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                  each day such Advance remains outstanding in accordance with
                  Section 4.B.

8.       Representations and Warranties.

         Each day on which an Issuance Instruction is given to the IPA, the
         Issuer shall be deemed to represent and warrant to the IPA that (a) the
         issuance and delivery of the designated Notes will not violate any
         state or federal securities law, (b) the Notes have been duly and
         validly authorized by the Issuer and (c) the Notes, when issued and
         delivered pursuant hereto, will constitute the legal, valid, and
         binding obligations of the Issuer.

9.       Concerning the IPA.

         A.       In acting with respect to the Notes, and generally in acting
                  under the provisions hereof, the IPA acts only as agent of
                  the Issuer to perform only such duties as are specifically
                  set forth herein and this Agreement shall not be construed to
                  subject the IPA to any implied covenants or obligations. No
                  provision of this Agreement shall be construed to impose upon
                  the IPA any trust, agency of, or fiduciary duty to DTC or any
                  beneficial owner of the Notes. The IPA may execute any of the
                  powers hereunder or perform any duties hereunder either
                  directly or by or through agents or affiliates. The IPA may
                  consult with legal counsel regarding matters arising under
                  this Agreement and shall not be liable for any action taken
                  in good faith in reliance upon the advice of such
                  counsel. The IPA or its affiliates in their individual or any
                  other capacity may become the owner or pledgee of Notes and
                  may transact business with the Issuer or its affiliates with
                  the same rights they would have if the IPA were not acting
                  hereunder. The IPA shall be under no liability for interest
                  on any moneys received by it hereunder and need not segregate
                  such moneys except as may be required by law. Except in the
                  case of the IPA's gross negligence or willful misconduct, it
                  shall not be liable to the Issuer for any action taken or
                  omitted and reasonably believed by the IPA to be authorized
                  or within the powers conferred upon it hereby. In no event
                  shall the IPA be liable for consequential, indirect or
                  special damages, even if it has been advised of the
                  possibility of such damages. The IPA shall also not be
                  liable for any action taken,

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                  or any failure to take any action in connection with this
                  Agreement or the services provided hereunder or otherwise to
                  fulfill its obligations in connection with this Agreement, in
                  the event and to the extent that the taking of such action or
                  such failure arises out of or is caused by mechanical
                  breakdown, computer or system failure or other failure of
                  equipment, failure or malfunctioning of any communications
                  media for whatever reason, or any other cause outside of the
                  control of the IPA, provided that it undertakes to use
                  commercially reasonable efforts to cure any such failure or
                  breakdown of its equipment. It is understood by the Issuer
                  that provision of services under this Agreement is dependent
                  upon the availability to the IPA and the Issuer of
                  telecommunication facilities provided by third party vendors
                  and that the IPA does not warrant or guarantee such
                  availability.

         B.       The Issuer shall indemnify and hold the Indemnified Persons
                  harmless from and against any and all costs, expenses, claims
                  or liabilities (including, without limitation, reasonable
                  legal fees and expenses) arising out of or connected with the
                  performance of each Indemnified Person's duties hereunder,
                  except for costs, expenses, claims or liabilities arising out
                  of the gross negligence or willful misconduct of an
                  Indemnified Person. Each Indemnified Person may rely and shall
                  be protected in acting upon any resolution, certificate,
                  opinion, instructions (whether oral or otherwise), receipt, or
                  other document reasonably believed by such Indemnified Person
                  to be (i) genuine and (ii) to have been signed or given by the
                  proper party or parities.

         C.       Fees for the IPA's services, and reimbursement of its expenses
                  hereunder shall be as mutually agreed upon in writing between
                  the IPA and the Issuer, which are initially set forth as
                  Exhibit G, and shall be payable by the Issuer in accordance
                  with such agreement.

         D.       Except as otherwise expressly provided herein, whenever, in
                  the administration of this Agreement, the IPA shall deem it
                  necessary that a matter be proved or established prior to
                  taking, suffering or omitting any action hereunder, such
                  matter (unless other evidence in respect thereof be herein
                  specifically prescribed)

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                  may be deemed to be conclusively proved and established by a
                  certificate or written instructions of an Issuer Agent and
                  such certificate or written instructions shall be full
                  warranty to the IPA for any action taken, suffered, or omitted
                  under the provisions of this Agreement in reliance upon such
                  certificate or written instructions.

         E.       Any banking association or corporation into which the IPA may
                  be merged, converted or with which it may be consolidated, or
                  any corporation resulting from any merger, conversion or
                  consolidation to which it shall be a party, shall succeed to
                  all its rights, obligations and immunities hereunder without
                  the execution or filing of any paper or any further act on the
                  part of any of the parties hereto, anything herein to the
                  contrary notwithstanding.

         F.       The IPA's countersignature of a Note shall be for
                  authentication purposes only. The IPA shall have no liability
                  on any Notes. Except with respect to the IPA's own actions in
                  issuing and delivering Notes pursuant to Issuance
                  Instructions, it shall not be liable for the authorization,
                  validity or legality of any Notes delivered by it in
                  accordance with Issuance Instructions.

         G.       Nothing in this Agreement constitutes a commitment or
                  obligation of the IPA or its affiliates to extend any credit
                  to the Issuer, nor shall any course of dealing between the
                  Issuer and the IPA be deemed to be, or constitute, any such
                  commitment or obligation.

10.      Miscellaneous.

         A.       The IPA or the Issuer may terminate this Agreement upon ten
                  (10) days' prior written notice to the other party; provided,
                  however, that to the extent there are then outstanding any
                  Notes, notwithstanding such termination they shall remain
                  valid obligations of the Issuer and shall continue to be
                  subject to the provisions of this Agreement. No termination of
                  this Agreement shall affect the rights and obligations of the
                  parties hereto with respect to transactions initiated prior to
                  such termination. In the event that the IPA shall give the
                  Issuer notice of termination, the Issuer shall not issue on or
                  after

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                  the date of such notice any Notes having a maturity in excess
                  of thirty (30) days.

         B.       No amendment or modification of this Agreement shall be
                  effective unless the same shall be in writing and signed by
                  both of the parties hereto. No waiver of, nor any consent to
                  any departure from, any provision of this Agreement shall be
                  effective unless signed by the party intended to be bound. No
                  such amendment, modification, waiver or consent shall
                  adversely affect the rights of any holder of Notes outstanding
                  at the time of such amendment, modification, waiver or
                  consent.

         C.       Any obligation under this Agreement or the Notes that falls on
                  a day that is not a Business Day shall be performed on the
                  next succeeding Business Day.

         D.       Neither party hereto may assign any of its rights or
                  obligations hereunder without the consent of the other party
                  hereto.

         E.       This Agreement may be executed in any number of counterparts
                  and by each party hereto on separate counterparts, each of
                  which counterparts, when so executed and delivered, shall be
                  deemed to be an original and all of which counterparts taken
                  together shall constitute one and the same Agreement.

11.      Notices.

         Any notices, demands, instructions and other communications required or
         permitted to be given or made upon either party shall be in writing and
         shall be personally delivered or sent by first class mail, postage
         prepaid (or telecopier, as permitted hereunder), and shall be effective
         for purposes of this Agreement upon receipt by the intended recipient
         thereof at the address designated by such recipient, or on the next
         succeeding Business Day if received on other than a Business Day.
         Unless otherwise specified in a notice sent or delivered in accordance
         with the foregoing provisions of this paragraph (or with respect to
         Issuance Instructions, as permitted hereunder), notices, demands,
         instructions and other communications in writing shall be addressed as
         indicated below:

         If to the IPA:             Bank One, National Association

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                                    1 Bank One Plaza
                                    Suite IL1-0439, 1NS-9
                                    Chicago, IL 60670-0439
                                    Attn: Commercial Paper Customer Service
                                    Telephone:        (312) 407-8711
                                    Telecopier:       (312) 407-4154

         If to the Issuer:          Harrah's Operating Company, Inc.
                                    1023 Cherry Road
                                    Memphis, TN 38117
                                    Attn:  Mr. James T. Evans
                                    Telephone:        (901) 537-3439
                                    Telecopier:       (901) 537-3449

                                    Harrah's Operating Company, Inc.
                                    5100 West Sahara Blvd.
                                    Las Vegas, NV 89146
                                    Attn:  General Counsel
                                    Telephone:        (702) 579-2610
                                    Telecopier:       (702) 579-2671

12.      Governing Law.

         THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
         THE INTERNAL LAW OF THE STATE OF NEW YORK (EXCLUDING ITS CONFLICTS OF
         LAWS RULES).

13.      Entire Agreement.

         This Agreement together with the Exhibits, constitute the entire
         agreement between the IPA and the Issuer relating to the subject matter
         hereof, and supersedes all proposals and all other communications
         between the parties relating hereto.

14.      Guarantee.

         All fees, indemnities and obligations of the Issuer hereunder shall be
         fully guaranteed by Harrah's Entertainment, Inc. as Guarantor.

                                    Harrah's Operating Company, Inc., as Issuer

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                                    By:     /s/ James T. Evans
                                            ---------------------------
                                    Name:   James T. Evans
                                    Title:  Assistant Treasurer

                                    Harrah's Entertainment, Inc., as Guarantor

                                    By:     /s/ James T. Evans
                                            ---------------------------
                                    Name:   James T. Evans
                                    Title:  Assistant Treasurer

                                    BANK ONE, National Association,
                                            as Issuing and Paying Agent

                                    By:     /s/ Kathleen M. Casey
                                            ---------------------------
                                    Name:   Kathleen M. Casey
                                    Title:  Account Representative

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                    CORPORATE COMMERICAL PAPER - MASTER NOTE

         HARRAH'S OPERATING COMPANY, INC. ("Issuer"), for value received, hereby
promises to pay to Cede & Co., as nominee of The Depository Trust Company, or to
registered assigns: (i) the principal amount, together with unpaid accrued
interest thereon, if any, on the maturity date of each obligation identified on
the records of Issuer (the "Underlying Records") as being evidenced by this
Master Note, which Underlying Records are maintained by BANK ONE, NA ("Paying
Agent"); (ii) interest on the principal amount of each such obligation that is
payable in installments, if any, on the due date of each installment, as
specified on the Underlying Records; and (iii) the principal amount of each such
obligation that is payable in installments, if any, on the due date of each
installment, as specified on the Underlying Records. Interest shall be
calculated at the rate and according to the calculation convention specified on
the Underlying Records. Payments shall be made by wire transfer to the
registered owner from Paying Agent without the necessity of presentation and
surrender of this Master Note.

         REFERENCE IS HEREBY MADE TO THE FURTHER PROVISIONS OF THIS MASTER NOTE
SET FORTH ON THE REVERSE HEREOF.

         This Master Note is a valid and binding obligation of Issuer.

         Not Valid Unless Countersigned for Authentication by Paying Agent.

BANK ONE, NA,                       HARRAH'S OPERATING COMPANY, INC.,
Paying Agent                        Issuer

By: /s/ KATHLEEN M. CASEY           By: /s/ JAMES T. EVANS
   ----------------------           -------------------------------
   Kathleen M. Casey,               James T. Evans, Asst. Treasurer
   Account Representative

                                    HARRAH'S ENTERTAINMENT, INC.,
                                    Guarantor

                                    By: /s/ JAMES T. EVANS
                                    -------------------------------
                                    James T. Evans, Asst. Treasurer

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At the request of the registered owner, Issuer shall promptly issue and deliver
one or more separate note certificates evidencing each obligation evidenced by
this Master Note. As of the date any such note certificate or certificates are
issued, the obligations which are evidenced thereby shall no longer be evidenced
by this Master Note.

FOR VALUE RECEIVED, the undersigned hereby sells, assigns, and transfers unto
           the Master Note and all rights thereunder, hereby irrevocably
----------
constituting and appointing                attorney to transfer said
                            --------------
Master Note on the books of Issuer with full power of substitution in the
premises.

Dated:                              ----------------------------
                                           (Signature)

Signature(s) Guaranteed:            Notice: The signature on this
                                    assignment must correspond
                                    with the name as written upon
                                    the face of this Master Note,
                                    in every particular, without
                                    alteration or enlargement or
                                    any change whatsoever.

Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation ("DTC"), to Issuer or its agent
for registration of transfer, exchange, or payment, and any certificate issued
is registered in the name of Cede & Co. or in such other name as is requested by
an authorized representative of DTC (and any payment is made to Cede & Co. or to
such other entity as is requested by an authorized representative of DTC), ANY
TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest
herein.

                                       14<PAGE>

                                                                     Exhibit-4.6

COMMERCIAL PAPER DEALER AGREEMENT

Between:

HARRAH'S OPERATING COMPANY, INC., as Issuer,

HARRAH'S ENTERTAINMENT, INC., as Guarantor,

and

BANC OF AMERICA SECURITIES LLC, as Dealer

Concerning Notes to be issued pursuant to an Issuing and Paying Agency Agreement
dated as of May 19, 2000 between the Issuer and Bank One, National Association,
as Issuing and Paying Agent.

Dated As of

May 3, 2000

COMMERCIAL PAPER DEALER AGREEMENT
3(a)(3) Program

This agreement("Agreement") sets forth the understandings between the Issuer,
the Guarantor and the Dealer, each named above, in connection with the issuance
and sale by the Issuer of its short-term commercial paper promissory notes
through the Dealer (the "Notes") with the guarantee of the Guarantor in the form
attached hereto.

Certain terms used in this Agreement are defined in Section 6 hereof.

The Addendum to this Agreement, and any Annexes or Exhibits described in this
Agreement or such Addendum, are hereby incorporated into this Agreement and made
fully a part hereof.

Section 1.        Issuance and Sale of Notes.

         1.1      While (i) the Issuer has and shall have no obligation to sell
                  the Notes to the Dealer or to permit the Dealer to arrange any
                  sale of the Notes for the account of the Issuer, and (ii) the
                  Dealer has and shall have no obligation to purchase the Notes
                  from the Issuer or to arrange any sale of the

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                  Notes for the account of the Issuer, the parties hereto agree
                  that in any case where the Dealer purchases Notes from the
                  Issuer, or arranges for the sale of Notes by the Issuer, such
                  Notes will be purchased or sold by the Dealer in reliance on
                  the representations, warranties, covenants and agreements of
                  the Issuer and the Guarantor contained herein or made pursuant
                  hereto and on the terms and conditions and in the manner
                  provided herein.

         1.2      So long as this Agreement shall remain in effect, the Issuer
                  shall not, without the consent of the Dealer, offer, solicit
                  or accept offers to purchase, or sell, any Notes or notes
                  substantially similar to the Notes in reliance upon the
                  exemption from registration under the Securities Act contained
                  in Section 3(a)(3) thereof, except (a) in transactions with
                  one or more dealers which may from time to time after the date
                  hereof become dealers with respect to the Notes by executing
                  with the Issuer one or more agreements substantially similar
                  to this Agreement, of which the Issuer hereby undertakes to
                  provide the Dealer prompt notice, (b) in transactions with the
                  other dealers listed on the Addendum hereto, which are
                  executing agreements with the Issuer substantially similar to
                  this Agreement contemporaneously herewith or (c) directly on
                  its own behalf in transactions with persons other than
                  broker-dealers with respect to which no commission is payable.

         1.3      The Notes shall be in a minimum denomination or minimum
                  amount, whichever is applicable, of $100,000 or integral
                  multiples of $1,000 in excess thereof, will bear such interest
                  rates, if interest bearing, or will be sold at such discount
                  from their face amounts, as shall be agreed upon by the Dealer
                  and the Issuer; shall have a maturity not exceeding 270 days
                  from the date of issuance (exclusive of days of grace); and
                  shall not contain any provision for extension, renewal or
                  automatic "rollover." The

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                  Notes shall be issued in the ordinary course of the Issuer's
                  business.

         1.4      The authentication, delivery and payment of the Notes shall be
                  effected in accordance with the Issuing and Paying Agency
                  Agreement and the Notes shall be either individual bearer
                  physical certificates or represented by book-entry Notes
                  registered in the name of DTC or its nominee in the form or
                  forms annexed to the Issuing and Paying Agency Agreement.

         1.5      If the Issuer and the Dealer shall agree on the terms of the
                  purchase of any Note by the Dealer or the sale of any Note
                  arranged by the Dealer (including, but not limited to,
                  agreement with respect to the date of issue, purchase price,
                  principal amount, maturity and interest rate (in the case of
                  interest-bearing Notes) or discount thereof (in the case of
                  Notes issued on a discount basis), and appropriate
                  compensation for the Dealer's services hereunder) pursuant to
                  this Agreement, the Issuer shall cause such Note to be issued
                  and delivered in accordance with the terms of the Issuing and
                  Paying Agency Agreement and payment for such Note shall be
                  made by the purchaser thereof, either directly or through the
                  Dealer, to the Issuer. Except as otherwise agreed, in the
                  event that the Dealer is acting as an agent and a customer
                  shall either fail to accept delivery of or make payment for a
                  Note on the date fixed for settlement, the Dealer shall
                  promptly notify the Issuer, and if the Dealer has theretofore
                  paid the Issuer for the Note, the Issuer will promptly return
                  such funds to the Dealer against its return of the Note to the
                  Issuer, in the case of a certificated Note, and upon notice of
                  such failure in the case of a book-entry Note. If such failure
                  occurred for any reason other than default by the Dealer, the
                  Issuer shall reimburse the Dealer on an equitable basis for
                  the Dealer's loss of the use of such funds for the period such
                  funds were credited to the Issuer's account.

Section 2.        Representations and Warranties of Issuer and the Guarantor.

                                       3

<PAGE>

The Issuer and the Guarantor jointly and severally represent and warrant that:

         2.1      The Issuer is a corporation duly organized, validly existing
                  and in good standing under the laws of the jurisdiction of its
                  incorporation and has all the requisite power and authority to
                  execute, deliver and perform its obligations under the Notes,
                  this Agreement and the Issuing and Paying Agency Agreement.

         2.2      The Guarantor is a corporation or limited liability company
                  duly organized, and validly existing and in good standing
                  under the laws of the jurisdiction of its incorporation or
                  organization and has all the requisite power and authority to
                  execute, deliver and perform its obligations under the
                  Guarantee, this Agreement and the Issuing and Paying Agency
                  Agreement.

         2.3      This Agreement, the Guarantee and the Issuing and Paying
                  Agency Agreement have been duly authorized, executed and
                  delivered by the Issuer and the Guarantor and constitute
                  legal, valid and binding obligations of the Issuer and the
                  Guarantor enforceable against the Issuer and the Guarantor in
                  accordance with their terms subject to applicable bankruptcy,
                  insolvency and similar laws affecting creditors' rights
                  generally, and subject, as to enforceability, to general
                  principles of equity (regardless of whether enforcement is
                  sought in a proceeding in equity or at law).

         2.4      The Notes and the Guarantee have been duly authorized, and
                  when issued and delivered as provided in the Issuing and
                  Paying Agency Agreement, will be duly and validly issued and
                  delivered and will constitute legal, valid and binding
                  obligations of the Issuer and the Guarantor enforceable
                  against the Issuer and the Guarantor in accordance with their
                  terms subject to applicable bankruptcy, insolvency and similar
                  laws affecting creditors' rights generally, and subject, as to
                  enforceability, to general principles of equity (regardless of
                  whether

                                       4

<PAGE>

                  enforcement is sought in a proceeding in equity or at law).

         2.5      The Notes are not required to be registered under the
                  Securities Act, pursuant to the exemption from registration
                  contained in Section 3(a)(3) thereof, and no indenture in
                  respect of the Notes is required to be qualified under the
                  Trust Indenture Act of 1939, as amended; and the Notes are and
                  will be rated as "prime quality" commercial paper by at least
                  one nationally recognized statistical rating organization and
                  will rank at least pari passu with all other unsecured and
                  unsubordinated indebtedness of the Issuer.

         2.6      No consent or action of, or filing or registration with, any
                  governmental or public regulatory body or authority, including
                  the SEC, is required to authorize, or is otherwise required in
                  connection with the execution, delivery or performance of,
                  this Agreement, the Guarantee, the Notes or the Issuing and
                  Paying Agency Agreement, except as may be required by the
                  securities or Blue Sky laws of the various states in
                  connection with the offer and sale of the Notes.

         2.7      Neither the execution and delivery of this Agreement, the
                  Guarantee and the Issuing and Paying Agency Agreement, nor the
                  issuance and delivery of the Notes in accordance with the
                  Issuing and Paying Agency Agreement, nor the fulfillment of or
                  compliance with the terms and provisions hereof or thereof by
                  the Issuer and the Guarantor, will (i) result in the creation
                  or imposition of any mortgage, lien, charge or encumbrance of
                  any nature whatsoever upon any of the properties or assets of
                  the Issuer and the Guarantor, or (ii) violate or result in a
                  breach or an event of default under any of the terms of the
                  Issuer's charter documents or by-laws, any contract or
                  instrument to which the Issuer and the Guarantor is a party or
                  by which it or its property is bound, or any law or
                  regulation, or any order, writ, injunction or decree of any
                  court or government instrumentality, to which the

                                       5

<PAGE>

                  Issuer and the Guarantor is subject or by which it or its
                  property is bound, which breach or event of default might have
                  a material adverse effect on the condition (financial or
                  otherwise), operations or business prospects of the Issuer and
                  the Guarantor or the ability of the Issuer and the Guarantor
                  to perform its obligations under this Agreement, the
                  Guarantee, the Notes or the Issuing and Paying Agency
                  Agreement.

         2.8      Neither the Issuer nor the Guarantor will not be in default of
                  any of its obligations hereunder, under the Notes, the
                  Guarantee or under the Issuing and Paying Agency Agreement, at
                  any time that any of the Notes are outstanding.

         2.9      There is no litigation or governmental proceeding pending, or
                  to the knowledge of the Issuer and the Guarantor threatened,
                  against or affecting the Issuer or the Guarantor or any of its
                  subsidiaries which might result in a material adverse change
                  in the condition (financial or otherwise), operations or
                  business prospects of the Issuer and the Guarantor or the
                  ability of the Issuer and the Guarantor to perform its
                  obligations under this Agreement, the Guarantee, the Notes or
                  the Issuing and Paying Agency Agreement.

         2.10     Neither the Issuer nor the Guarantor is an "investment
                  company" or an entity "controlled" by an "investment company"
                  within the meaning of the Investment Company Act of 1940, as
                  amended.

         2.11     Neither the Offering Materials nor the Company Information
                  contains any untrue statement of a material fact or omits to
                  state a material fact required to be stated therein or
                  necessary to make the statements therein, in light of the
                  circumstances under which they were made, not misleading.

         2.12     Each (a) issuance of Notes by the Issuer hereunder and (b)
                  amendment or supplement of the Offering Materials shall be
                  deemed a representation and warranty by the Issuer and the
                  Guarantor to the Dealer, as of the date thereof,

                                       6

<PAGE>

                  that, both before and after giving effect to such issuance,
                  and after giving effect to such amendment or supplement, (i)
                  the representations and warranties given by the Issuer and the
                  Guarantor set forth above in this Section 2 remain true and
                  correct on and as of such date as if made on and as of such
                  date, (ii) in the case of an issuance of Notes with the
                  Guarantee, the Notes being issued on such date have been duly
                  and validly issued and constitute legal, valid and binding
                  obligations of the Issuer and the Guarantor, enforceable
                  against the Issuer and the Guarantor in accordance with their
                  terms, subject to applicable bankruptcy, insolvency and
                  similar laws affecting creditors' rights generally and
                  subject, as to enforceability, to general principles of equity
                  (regardless of whether enforcement is sought in a proceeding
                  in equity or at law), (iii) in the case of an issuance of
                  Notes, since the date of the most recent Offering Materials,
                  there has been no material adverse change in the condition
                  (financial or otherwise), operations or business prospects of
                  the Issuer and the Guarantor which has not been disclosed to
                  the Dealer in writing, and (iv) the Issuer is not in default
                  of any of its obligations hereunder, under the Notes or under
                  the Issuing and Paying Agency Agreement.

Section 3.        Covenants and Agreements of Issuer and the Guarantor.

Each of the Issuer and the Guarantor covenants and agrees that:

         3.1      They will give the Dealer prompt notice (but in any event
                  prior to any subsequent issuance of Notes hereunder) of any
                  amendment to, modification of, or waiver with respect to, the
                  Notes, the Guarantee or the Issuing and Paying Agency
                  Agreement, including a complete copy of any such amendment,
                  modification or waiver.

         3.2      They shall, whenever there shall occur any change in the
                  Issuer's or the Guarantor's condition (financial or
                  otherwise), operations or business prospects or any
                  development or occurrence in relation to the Issuer and the
                  Guarantor that would be material to holders of the Notes or

                                       7

<PAGE>

                  potential holders of the Notes (including any formal ratings
                  action (downgrading or otherwise) accorded any of the Issuer's
                  or the Guarantor's securities by any nationally recognized
                  statistical rating organization which has published a rating
                  of the Notes), promptly, and in any event prior to any
                  subsequent issuance of Notes hereunder, notify the Dealer (by
                  telephone, confirmed in writing) of such change, development,
                  or occurrence.

         3.3      They shall from time to time furnish to the Dealer such
                  information as the Dealer may reasonably request including,
                  without limitation, any press releases or material provided by
                  the Issuer and the Guarantor to any national securities
                  exchange or rating agency, regarding (i) the Issuer's and the
                  Guarantor's operations and financial condition, (ii) the due
                  authorization and execution of the Notes, and (iii) the
                  Issuer's and the Guarantor's ability to pay the Notes as they
                  mature.

         3.4      They will take all such action as the Dealer may reasonably
                  request to ensure that each offer and each sale of the Notes
                  will comply with any applicable state Blue Sky laws; provided,
                  that neither the Issuer nor the Guarantor shall be obligated
                  to file any general consent to service of process or to
                  qualify as a foreign corporation in any jurisdiction in which
                  it is not so qualified or subject itself to taxation in
                  respect of doing business in any jurisdiction in which it is
                  not otherwise so subject.

         3.5      The Issuer will use the proceeds of each sale of the Notes for
                  "current transactions" within the meaning of Section 3(a)(3)
                  of the Securities Act.

         3.6      The Issuer shall not issue Notes hereunder until the Dealer
                  shall have received (a) an opinion of counsel to the Issuer,
                  addressed to the Dealer, satisfactory in form and substance to

                                       8

<PAGE>

                  the Dealer, (b) a copy of the executed Issuing and Paying
                  Agency Agreement as then in effect, (c) a copy of resolutions
                  adopted by the Board of Directors of the Issuer, satisfactory
                  in form and substance to the Dealer and certified by the
                  Secretary or similar officer of the Issuer authorizing the
                  execution and delivery by the Issuer of this Agreement, the
                  Notes and the Issuing and Paying Agency Agreement and
                  consummation by the Issuer of the transactions contemplated
                  hereby and thereby, (d) prior to the issuance of any Notes
                  represented by a book-entry Note registered in the name of DTC
                  or its nominee, a copy of the executed Letter of
                  Representations among the Issuer, the Issuing and Paying Agent
                  and DTC, (e) a copy of the Guarantee, as is then in effect,
                  (f) a copy of the Guarantor's resolutions adopted by the
                  Guarantor's Board of Directors authorizing such Guarantee, (g)
                  an opinion of counsel for the Guarantor, and, (h) such other
                  certificates, letters, opinions and documents as the Dealer
                  shall have reasonably requested.

         3.7      The Issuer shall reimburse the Dealer for all of the Dealer's
                  reasonable out-of-pocket expenses related to this Agreement,
                  including expenses incurred in connection with its preparation
                  and negotiation, and the transactions contemplated hereby
                  (including, but not limited to, the printing and distribution
                  of the Offering Materials and any advertising expense), and,
                  if applicable, for the reasonable attorney fees and
                  out-of-pocket expenses of the Dealer's counsel.

Section 4.        Disclosure.

         4.1      Offering Materials which may be provided to purchasers and
                  prospective purchasers of the Notes shall be prepared for use
                  in connection with the transactions contemplated by this
                  Agreement. The Offering Materials and their contents (other
                  than the Dealer Information) shall be the sole responsibility
                  of the Issuer or the Guarantor. The Issuer of the Guarantor
                  authorizes the Dealer to distribute the Offering Materials as
                  the Dealer shall see fit.

         4.2      The Issuer agrees promptly to furnish the Dealer the Company
                  Information as it becomes available and the Guarantor agrees
                  to promptly furnish to

                                       9

<PAGE>

                  the Dealer Guarantor information as it becomes available.

         4.3      (a) The Issuer and the Guarantor further agree to notify the
                  Dealer promptly upon the occurrence of any event relating to
                  or affecting the Issuer or the Guarantee that would cause the
                  Offering Materials then in existence to include an untrue
                  statement of material fact or to omit to state a material fact
                  necessary in order to make the statements contained therein,
                  in light of the circumstances under which they are made, not
                  misleading.

                  (b) In the event that the Dealer notifies the Issuer or the
                  Guarantor that it has Notes it is holding in inventory, the
                  Issuer or the Guarantor agree promptly to supplement or amend
                  the Offering Materials so that such Offering Materials, as
                  amended or supplemented, shall not contain an untrue statement
                  of a material fact or omit to state a material fact necessary
                  in order to make the statements therein, in light of the
                  circumstances under which they were made, not misleading, and
                  the Issuer or the Guarantor shall make such supplement or
                  amendment available to the Dealer and prospective holders of
                  Notes.

                  (c) In the event that (i) the Dealer does not notify the
                  Issuer or the Guarantor that it is then holding Notes in
                  inventory and (ii) the Issuer or the Guarantor chooses not to
                  promptly amend or supplement the Offering Materials in the
                  manner described in clause (b) above, then all solicitations
                  and sales of Notes shall be suspended until such time as the
                  Issuer or the Guarantor has so amended or supplemented the
                  Offering Materials, and made such amendment or supplement
                  available to the Dealer and prospective holders of Notes.

Section 5.        Indemnification and Contribution.

         5.1      The Issuer and the Guarantor will indemnify and hold harmless
                  the Dealer, each individual, corporation, partnership, trust,
                  association or other entity controlling the Dealer, any

                                       10

<PAGE>

                  affiliate of the Dealer or any such controlling entity and
                  their respective directors, officers, employees, partners,
                  incorporators, shareholders, servants, trustees and agents
                  (hereinafter the "Indemnitees") against any and all
                  liabilities, penalties, suits, causes of action, losses,
                  damages, claims, costs and expenses (including, without
                  limitation, fees and disbursements of counsel) or judgments of
                  whatever kind or nature (each a "Claim"), imposed upon,
                  incurred by or asserted against the Indemnitees arising out of
                  or based upon (i) any allegation that the Offering Materials,
                  the Company Information, the Guarantor Information or any
                  information provided by the Issuer and the Guarantor to the
                  Dealer includes an untrue statement of a material fact or
                  omits to state any material fact necessary to make the
                  statements therein, in light of the circumstances under which
                  they were made, not misleading or (ii) arising out of or based
                  upon the breach by the Issuer or the Guarantor of any
                  agreement, covenant or representation made in or pursuant to
                  this Agreement. This indemnification shall not apply to the
                  extent that the Claim arises out of or is based upon Dealer
                  Information.

         5.2      Provisions relating to claims made for indemnification under
                  this Section 5 are set forth on Exhibit A to this Agreement.

         5.3      In order to provide for just and equitable contribution in
                  circumstances in which the indemnification provided for in
                  this Section 5 is held to be unavailable or insufficient to
                  hold harmless the Indemnitees, although applicable in
                  accordance with the terms of this Section 5, the Issuer and
                  the Guarantor shall contribute to the aggregate costs incurred
                  by the Dealer in connection with any Claim in the proportion
                  of the respective economic interests of the Issuer, the
                  Guarantor and the Dealer; provided, however, such contribution
                  by the Issuer shall be in an amount such that the aggregate
                  costs incurred by the Dealer do not exceed the aggregate of
                  the commissions and fees earned by the Dealer hereunder with
                  respect to the issue or issues of

                                       11

<PAGE>

                  Notes to which such Claim relates. The respective economic
                  interests shall be calculated by reference to the aggregate
                  proceeds to the Issuer of the Notes issued hereunder and the
                  aggregate commissions and fees earned by the Dealer hereunder.

Section 6.        Definitions.

         6.1      "Claim" shall have the meaning set forth in Section 5.1.

         6.2      "Company Information" at any given time shall mean the
                  Offering Materials together with, to the extent applicable,
                  (i) the Issuer's most recent report on Form 10-K filed with
                  the SEC and each report on Form 10-Q or 8-K filed by the
                  Issuer with the SEC since the most recent Form 10-K, (ii) the
                  Issuer's most recent annual audited financial statements and
                  each interim financial statement or report prepared subsequent
                  thereto, if not included in item (i) above, (iii) the Issuer's
                  and its affiliates' other publicly available recent reports,
                  including, but not limited to, any publicly available filings
                  or reports provided to their respective shareholders, (iv) any
                  other information or disclosure prepared pursuant to Section
                  4.3 hereof and (v) any information prepared or approved by the
                  Issuer for dissemination to investors or potential investors
                  in the Notes.

         6.3      "Dealer Information" shall mean material concerning the Dealer
                  and provided by the Dealer in writing expressly for inclusion
                  in the Offering Materials.

         6.4      "DTC" shall mean The Depository Trust Company.

         6.5      "Indemnitee" shall have the meaning set forth in Section 5.1.

         6.6      "Issuing and Paying Agency Agreement" shall mean the issuing
                  and paying agency agreement described on the cover page of
                  this Agreement, as such agreement may be amended or
                  supplemented from time to time.

                                       12

<PAGE>

         6.7      "Issuing and Paying Agent" shall mean the party designated as
                  such on the cover page of this Agreement, as issuing and
                  paying agent under the Issuing and Paying Agency Agreement.

         6.8      "Offering Materials" shall mean offering materials prepared in
                  accordance with Section 4, which may be provided to purchasers
                  and prospective purchasers of the Notes, and shall include
                  amendments and supplements thereto which may be prepared from
                  time to time in accordance with this Agreement.

         6.9      "SEC" shall mean the U.S. Securities and Exchange Commission.

         6.10     "Securities Act" shall mean the U.S. Securities Act of 1933,
                  as amended.

         6.11     "Guarantor Information" at any given time shall mean the
                  Offering Materials together with, to the extent applicable,
                  (i) the Guarantors' most recent report of Form 10-K filed with
                  the SEC and each report on Form 10-Q or 8-K filed by the
                  Issuer with the SEC since the most recent Form 10-K, (ii) the
                  Guarantors' most recent annual audited financial statements
                  and each interim financial statement or report prepared
                  subsequent thereto, if not included in item (i) above, (iii)
                  the Guarantors' other publicly available recent reports,
                  including, but not limited to, any publicly available filings
                  or reports provided to their respective shareholders, (iv) any
                  other information or disclosure prepared pursuant to Section
                  4.3 hereof and (v) any other information prepared or approved
                  by the Guarantors for dissemination to investors or potential
                  investors in the Notes.

         6.12     "Guarantee" shall have the meaning set forth in the first
                  paragraph of this Agreement.

Section 7.        General.

         7.1      Unless otherwise expressly provided herein, all notices under
                  this Agreement to parties hereto

                                       13

<PAGE>

                  shall be in writing and shall be effective when received at
                  the address of the respective party set forth in the Addendum
                  to this Agreement.

         7.2      This Agreement shall be governed by and construed in
                  accordance with the laws of the State of New York, without
                  regard to its conflict of laws provisions.

         7.3      Each of the Issuer and the Guarantor agrees that any suit,
                  action or proceeding brought by the Issuer or the Guarantor
                  against the Dealer in connection with or arising out of this
                  Agreement or the Notes or the offer and sale of the Notes
                  shall be brought solely in the United States federal courts
                  located in the borough of Manhattan or the courts of the State
                  of New York located in the Borough of Manhattan. EACH OF THE
                  ISSUER AND THE GUARANTOR WAIVES ITS RIGHT TO TRIAL BY JURY IN
                  ANY SUIT, ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT
                  OR THE TRANSACTIONS CONTEMPLATED HEREBY.

         7.4      This Agreement may be terminated, at any time, by the Issuer
                  or the Guarantor, upon one business day's prior notice to such
                  effect to the Dealer, or by the Dealer upon one business day's
                  prior notice to such effect to the Issuer. Any such
                  termination, however, shall not affect the obligations of the
                  Issuer under Sections 3.7, 5 and 7.3 hereof or the respective
                  representations, warranties, agreements, covenants, rights or
                  responsibilities of the parties made or arising prior to the
                  termination of this Agreement.

         7.5      This Agreement is not assignable by either party hereto
                  without the written consent of the other party; provided
                  however, that the Dealer may assign its rights and obligations
                  under this Agreement to any wholly-owned subsidiary of the
                  ultimate parent company of the Dealer.

         7.6      This Agreement may be signed in any number of counterparts,
                  each of which shall be an original, with the same effect as if
                  the signatures thereto and hereto were upon the same
                  instrument.

                                       14

<PAGE>

         7.7      This Agreement is for the exclusive benefit of the parties
                  hereto, and their respective permitted successors and assigns
                  hereunder, and shall not be deemed to give any legal or
                  equitable right, remedy or claim to any other person
                  whatsoever.

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

                                    Harrah's Operating Company, Inc., as Issuer

                                    By:     /s/ James T. Evans
                                            ----------------------------------
                                    Name:   James T. Evans
                                    Title:  Assistant Treasurer

                                    Harrah's Entertainment, Inc., as Guarantor

                                    By:     /s/ James T. Evans
                                            ----------------------------------
                                    Name:   James T. Evans
                                    Title:  Assistant Treasurer

                                    Banc of America Securities LLC, as Dealer

                                    By:     /s/ Christopher M. Piron
                                            ----------------------------------
                                    Name:   Christopher M. Piron
                                    Title:  Managing Director

                                       15

<PAGE>

ADDENDUM

The following additional clauses shall apply to the Agreement and be deemed a
part thereof when the respective parties have placed their initials in the left
margin beside the respective paragraph number.

1.       The other dealer referred to in clause (b) of Section 1.2 of the
         Agreement is :  Credit Suisse First Boston Corp.

2.       The addresses of the respective parties for purposes of notices under
         Section 7.1 are as follows:

         For the Issuer:     Harrah's Operating Company, Inc.
         Address:            1023 Cherry Road
                             Memphis, TN 38117
         Attention:          Tom Evans, Assistant Treasurer
         Telephone Number:   (901) 537-3439
         Fax Number:         (901) 537-3443

         With a copy to:     Harrah's Operating Company, Inc.
         Address:            5100 West Sahara Boulevard
                             Suite 200
                             Las Vegas, NV 89146
         Attention:          General Counsel
         Telephone:          (702) 579-2610
         Fax Number:         (702) 579-2671

         For the Guarantor:  Harrah's Entertainment, Inc.
         Address:            1023 Cherry Road
                             Memphis, TN 38117
         Attention:          Tom Evans, Assistant Treasurer
         Telephone Number:   (901) 537-3439
         Fax Number:         (901) 537-3443

         For the Dealer:     Banc of America Securities LLC
         Address:            1455 Market Street, 13th Floor,
                             CA5-701-13-03
                             San Francisco, California 94103
         Attention:          Manager, Money Market Origination
         Telephone Number:   (415) 953-7881
         Fax Number:         (415) 622-3429

                                       16

<PAGE>

EXHIBIT A

FURTHER PROVISIONS RELATING TO INDEMNIFICAION

         (a)      The Issuer and the Guarantor jointly and severally agree to
reimburse each Indemnitee for all expenses (including reasonable fees and
disbursements of internal and external counsel) as they are incurred by it in
connection with investigating or defending any loss, claim, damage, liability or
action in respect of which indemnification may be sought under Section 5 of the
Agreement (whether or not it is a party to any such proceedings).

         (b)      Promptly after receipt by an Indemnitee of notice of the
existence of a Claim, such Indemnitee will, if a claim in respect thereof is to
be made against the Issuer or the Guarantor, notify the Issuer and the Guarantor
in writing of the existence thereof; provided that (i) the omission so to notify
the Issuer and the Guarantor will not relieve it from any liability which it may
have hereunder unless and except to the extent it did not otherwise learn of
such Claim and such failure results in the forfeiture by the Issuer or the
Guarantor of substantial rights and defenses, and (ii) the omission so to notify
the Issuer and the Guarantor will not relieve it from liability which it may
have to an Indemnitee otherwise than on account of this indemnity agreement. In
case any such Claim is made against any Indemnitee and it notifies the Issuer
and the Guarantor of the existence thereof, the Issuer and the Guarantor will be
entitled to participate therein, and to the extent that it may elect by written
notice delivered to the Indemnitee, to assume the defense thereof, with counsel
reasonably satisfactory to such Indemnitee; provided that if the defendants in
any such Claim include both the Indemnitee and the Issuer and the Guarantor and
the Indemnitee shall have concluded that there may be legal defenses available
to it which are different from or additional to those available to the Issuer or
the Guarantor, the Issuer and the Guarantor shall not have the right to direct
the defense of such Claim on behalf of such Indemnitee, and the Indemnitee shall
have the right to select separate counsel to assert such legal defenses on
behalf of such Indemnitee. Upon receipt of notice from the Issuer or the
Guarantor to such Indemnitee of the Issuer's election so to assume the defense
of such Claim and approval by the Indemnitee of counsel, the Issuer or the
Guarantor will not be liable to such Indemnitee for expenses incurred thereafter
by the Indemnitee in connection with the defense thereof (other than reasonable
costs of

                                       17

<PAGE>

investigation) unless (i) the Indemnitee shall have employed separate counsel in
connection with the assertion of legal defenses in accordance with the provision
to the next preceding sentence (it being understood, however, that the Issuer
and the Guarantor shall not be liable for the expenses of more than one separate
counsel (in addition to any local counsel in the jurisdiction in which any Claim
is brought), approved by the Dealer, representing the Indemnitee who is party to
such Claim), (ii) the Issuer and the Guarantor shall not have employed counsel
reasonably satisfactory to the Indemnitee to represent the Indemnitee within a
reasonable time after notice of existence of the Claim or (iii) the Issuer and
the Guarantor has authorized in writing the employment of counsel for the
Indemnitee. The indemnity, reimbursement and contribution obligations of the
Issuer hereunder shall be in addition to any other liability the Issuer may
otherwise have to an Indemnitee and shall be binding upon and inure to the
benefit of any successors, assigns, heirs and personal representatives of the
Issuer and the Guarantor and any Indemnitee. The Issuer and the Guarantor agree
that without the Dealer's prior written consent, they will not settle,
compromise or consent to the entry of any judgment in any Claim in respect of
which indemnification may be sought under the indemnification provision of the
Agreement (whether or not the Dealer or any other Indemnitee is an actual or
potential party to such Claim), unless such settlement, compromise or consent
includes an unconditional release of each Indemnitee from all liability arising
out of such Claim.

                                       18

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