Document:

Exhibit
10.6

 

SEVENTH
LOAN MODIFICATION AGREEMENT

This Seventh Loan Modification Agreement (this “Loan
Modification Agreement”) is entered into as of April 11, 2006, and
effective as of March 31, 2006, by and between SILICON VALLEY BANK, a California corporation, with its
principal place of business at 3003 Tasman Drive, Santa Clara, California
95054 and with a loan production office located at One Newton Executive Park, Suite 200,
2221 Washington Street, Newton, Massachusetts 02462 (“Bank”) and PHASE FORWARD INCORPORATED, a Delaware
corporation (“Borrower”).

1.             DESCRIPTION
OF EXISTING INDEBTEDNESS AND OBLIGATIONS. Among other indebtedness and
obligations which may be owing by Borrower to Bank, Borrower is indebted to
Bank pursuant to a loan arrangement dated as of April 17, 2002, evidenced
by, among other documents, a certain Second Amended and Restated Loan and
Security Agreement dated as of April 17, 2002 between Borrower and Bank,
as amended by a certain First Loan Modification Agreement dated as of December 24,
2002, as further amended by a certain Second Loan Modification Agreement dated
as of February 28, 2003, as further amended by a certain Third Loan
Modification Agreement dated as of March 31, 2003, as further amended by a
certain Fourth Loan Modification Agreement dated as of February 27, 2004,
as further amended by a certain Fifth Loan Modification Agreement dated as of April 27,
2004, and as further amended by a certain Sixth Loan Modification Agreement
dated as of August 8, 2005 (as amended, the “Loan Agreement”). Capitalized
terms used but not otherwise defined herein shall have the same meaning as in
the Loan Agreement.

Hereinafter, the Loan Agreement,
together with all other documents evidencing or securing the Obligations shall
be referred to as the “Existing Loan Documents”.

2.             DESCRIPTION
OF CHANGE IN TERMS.

A.                                   Modifications to
Loan Agreement.

1.                                       The Loan
Agreement shall be amended by deleting the following text appearing in Section 2.1.11
thereof, entitled “Letters of Credit Sublimit”:

“The face amount of
outstanding Letters of Credit (including drawn but unreimbursed Letters of
Credit and any Letter of Credit Reserve) may not exceed $5,000,000.00.”

                              and inserting in
lieu thereof the following:

“The face amount of
outstanding Letters of Credit (including drawn but unreimbursed Letters of
Credit and any Letter of Credit Reserve) may not exceed $2,000,000.00.”

2.                                       The Loan
Agreement shall be amended by deleting the following text appearing in Section 2.1.12
thereof, entitled “Foreign Exchange Sublimit”:

“Bank shall subtract 10%
of each outstanding FX Forward Contract from the foreign exchange sublimit,
which sublimit is a maximum of $5,000,000.00 (the “FX Reserve”).”

                              and inserting in
lieu thereof the following:

 

 

“Bank shall subtract 10%
of each outstanding FX Forward Contract from the foreign exchange sublimit,
which sublimit is a maximum of $2,000,000.00 (the “FX Reserve”).”

3.                                       The Loan
Agreement shall be amended by deleting the following text appearing in Section 2.1.13
thereof, entitled “Cash Management Services Sublimit”:

“Borrower may use up to $5,000,000.00 for the Bank’s
Cash Management Services, which may include merchant services, direct deposit
of payroll, business credit card, and check cashing services identified in the
various cash management services agreements related to such Cash Management
Services (the “Cash Management Services”).”

                              and inserting in
lieu thereof the following:

“Borrower may use up to $2,000,000.00 for the Bank’s
Cash Management Services, which may include merchant services, direct deposit
of payroll, business credit card, and check cashing services identified in the
various cash management services agreements related to such Cash Management
Services (the “Cash Management Services”).”

4.                                       The Loan
Agreement shall be amended by deleting the following text appearing in
subsection (a) of Section 6.2 thereof, entitled “Financial
Statements, Reports, Certificates”:

“(iii) as soon as available, but no later than
forty-five (45) days after the last day of Borrower’s fiscal year, financial
projections, approved by the Borrower’s Board of Directors, for the then
current fiscal year;”

                              and inserting in
lieu thereof the following:

“(iii) as soon as available, but no later than
the later of: (A) forty-five (45) days after the last day of Borrower’s
fiscal year, and (B) five (5) days after approval of same by Borrower’s
Board of Directors, financial projections, approved by the Borrower’s Board of
Directors, for the then current fiscal year.”

5.                                       The Loan
Agreement shall be amended by deleting the following text appearing in Section 6.2
thereof, entitled “Financial Statements, Reports, Certificates”:

“(b)         Within
forty-five (45) days after the last day of each quarter, Borrower shall deliver
to Bank with the monthly financial statements a Compliance Certificate signed
by a Responsible Officer in the form of Exhibit D.
Notwithstanding the foregoing, such Compliance Certificate for January 2004
and February 2004, shall be delivered to Bank no later than April 15,
2004.”

       in
its entirety, and inserting in lieu thereof the following:

“(b)         Within
forty-five (45) days after the last day of each quarter, Borrower shall deliver
to Bank with the quarterly financial statements a Compliance Certificate signed
by a Responsible Officer in the form of Exhibit D.
Notwithstanding the foregoing, such Compliance Certificate for January 2004
and February 2004, shall be delivered to Bank no later than April 15,
2004.”

 

6.                                       The
Loan Agreement shall be amended by deleting Section 6.5 thereof, entitled “Primary
Accounts”, in its entirety, and inserting in lieu thereof the following:

“6.5               Primary Accounts. In order to permit
the Bank to monitor the Borrower’s financial performance and condition,
Borrower shall maintain its primary depository and operating accounts with
Bank. Additionally, at least one-third (33.33%) of the aggregate dollar value
of Borrower’s and Borrower’s Subsidiaries’ cash and securities maintained at
domestic financial institutions, shall be maintained and administered through
the Bank. The provisions of this paragraph shall not apply to deposit accounts
exclusively used for payroll, payroll taxes and other employee wage and benefit
payments to or for the benefit of the Borrower’s employees.”

7.                                       The Loan
Agreement shall be amended by deleting Section 6.7 thereof, entitled “Revenue”,
in its entirety, and inserting in lieu thereof the following:

“6.7               INTENTIONALLY
DELETED”

8.                                       The Loan
Agreement shall be amended by deleting the following definitions appearing in Section 13.1
thereof:

“““Committed
Revolving Line” is an Advance or Advances of up to $5,000,000.00.

“Revolving Maturity
Date” is March 31, 2006.”

       and
inserting in lieu thereof the following:

“““Committed
Revolving Line” is an Advance or Advances of up to $2,000,000.00.

“Revolving Maturity
Date” is March 29, 2008.”

9.                                       The Compliance
Certificate appearing as Exhibit D
to the Loan Agreement is hereby replaced with the Compliance Certificate
attached as Exhibit A hereto.

3.             FEES.
The Borrower shall reimburse Bank for all legal fees and expenses incurred in
connection with this amendment to the Existing Loan Documents.

4.             CONSISTENT
CHANGES. The Existing Loan Documents are hereby amended wherever necessary
to reflect the changes described above.

5.             RATIFICATION
OF LOAN DOCUMENTS. Borrower hereby ratifies, confirms, and reaffirms all
terms and conditions of the Loan Documents.

6.             NO
DEFENSES OF BORROWER. Borrower hereby acknowledges and agrees that Borrower
has no offsets, defenses, claims, or counterclaims against Bank with respect to
the Obligations, or otherwise, and that if Borrower now has, or ever did have,
any offsets, defenses, claims, or counterclaims against Bank, whether known or
unknown, at law or in equity, all of them are hereby expressly WAIVED and
Borrower hereby RELEASES Bank from any liability thereunder.

7.             CONTINUING
VALIDITY. Borrower understands and agrees that in modifying the existing
Obligations, Bank is relying upon Borrower’s representations, warranties, and
agreements, as set forth in the Existing Loan

 

Documents. Except as expressly modified pursuant to
this Loan Modification Agreement, the terms of the Existing Loan Documents
remain unchanged and in full force and effect. Bank’s agreement to
modifications to the existing Obligations pursuant to this Loan Modification Agreement
in no way shall obligate Bank to make any future modifications to the
Obligations. Nothing in this Loan Modification Agreement shall constitute a
satisfaction of the Obligations. It is the intention of Bank and Borrower to
retain as liable parties all makers of Existing Loan Documents, unless the
party is expressly released by Bank in writing. No maker will be released by
virtue of this Loan Modification Agreement.

8.             COUNTERSIGNATURE.
This Loan Modification Agreement shall become effective only when it shall have
been executed by Borrower and Bank.

[The
remainder of this page is intentionally left blank]

 

This Loan
Modification Agreement is executed as a sealed instrument under the laws of the
Commonwealth of Massachusetts as of the date first written above.

	
  BORROWER:

  	
  BANK:

  
	
  PHASE FORWARD INCORPORATED

  	
  SILICON VALLEY BANK

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
  /s/ ROBERT K. WEILER

  	
  By:

  	
  /s/ MICHAEL FELL

  
	
   

  	
   

  	
  Name: Robert Weiler

  	
   

  	
  Name: Michael Fell

  
	
   

  	
   

  	
  Title: President

  	
   

  	
  Title: Relationship Manager

  

 

The undersigned, PHASE FORWARD SECURITIES CORPORATION,  ratifies, confirms and reaffirms, all and
singular, the terms and conditions of a certain Unlimited Guaranty dated May 3,
1999 (the “Guaranty”) and acknowledges, confirms and agrees that the Guaranty
shall remain in full force and effect and shall in no way be limited by the
execution of this Loan Modification Agreement, or any other documents,
instruments and/or agreements executed and/or delivered in connection herewith.

	
  

  	
  PHASE FORWARD SECURITIES CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By:

  	
  /s/ RODGER WEISMANN

  
	
   

  	
   

  	
   

  	
   

  	
  Name: Rodger Weismann

  
	
   

  	
   

  	
   

  	
   

  	
  Title: Treasurer

  

 

 

EXHIBIT
A

COMPLIANCE CERTIFICATE

TO:         SILICON VALLEY BANK

FROM:   PHASE FORWARD INCORPORATED

The undersigned authorized officer
of PHASE
FORWARD INCORPORATED certifies that
under the terms and conditions of the Loan and Security Agreement between
Borrower and Bank (the “Agreement”), (i) Borrower is in complete
compliance for the period ending _______________ with all required covenants
except as noted below and (ii) all representations and warranties in the
Agreement are true and correct in all material respects on this date. Attached
are the required documents supporting the certification. The Officer certifies
that these are prepared in accordance with Generally Accepted Accounting
Principles (GAAP) consistently applied from one period to the next except as
explained in an accompanying letter or footnotes. The Officer acknowledges that
no borrowings may be requested at any time or date of determination that
Borrower is not in compliance with any of the terms of the Agreement, and that
compliance is determined not just at the date this certificate is delivered.

Please indicate compliance status by circling
Yes/No under “Complies” column.

	
  Reporting Covenant

  	
   

  	
  Required

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Financial statements
  with CC

  	
   

  	
  Quarterly within 45
  days*

  	
   

  	
  Yes   No

  
	
  Annual financial
  statement (CPA Audited)

  	
   

  	
  FYE within 120 days

  	
   

  	
  Yes   No

  
	
  10-Q, 10-K
  and 8-K (or electronic notice to links thereto)

  	
   

  	
  Within 5 days after
  filing with SEC

  	
   

  	
  Yes   No

  
	
  Annual Projections

  	
   

  	
  Later of: 45 days of
  prior FYE and 5 days after Board of Director approval

  	
   

  	
  Yes   No

  
	
  *January 2004 and February 2004 financial
  statements and compliance certificate due April 15, 2004.

  	
   

  	
   

  	
   

  	
   

  

 

	
  Financial
  Covenant

  	
   

  	
  Required

  	
   

  	
  Actual

  	
   

  	
  Complies

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Minimum Adjusted
  Quick Ratio (tested quarterly)

  	
   

  	
  3.0:1.0

  	
   

  	
  _      :1.0

  	
   

  	
  Yes   No

  

 

	
  

  Comments
  Regarding Exceptions: See Attached. 

  Sincerely, 

  _____________________________
  

  SIGNATURE 

  _____________________________
  

  TITLE 

  _____________________________
  

  DATE

  	
   

  	
   

     BANK USE
  ONLY 

     Received by: _____________________ 

                               AUTHORIZED SIGNER

     Date:____________________________ 

   

     Verified: _________________________ 

                           AUTHORIZED SIGNER

     Date:_____________________________ 

   

     Compliance Status:  Yes   NoExhibit 4.1

 

STATION CASINOS, INC.

 

$300,000,000

 

65/8% Senior Subordinated Notes Due
2018

 

Indenture

 

Dated as of March 13, 2006

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK

 

TRUSTEE

 

 

CROSS-REFERENCE TABLE*

 

	
  Trust Indenture

  Act Section

  	
   

  	
  Indenture Section

  
	
   

  	
   

  
	
  310(a)(1)

  	
  7.10

  
	
   

  	
  (a)(2)

  	
  7.10

  
	
   

  	
  (a)(3)

  	
  N.A.

  
	
   

  	
  (a)(4)

  	
  N.A.

  
	
   

  	
  (b)

  	
  7.08; 7.10;
  11.02

  
	
   

  	
  (c)

  	
  N.A.

  
	
  311(a)

  	
  7.11

  
	
   

  	
  (b)

  	
  7.11

  
	
   

  	
  (c)

  	
  N.A.

  
	
  312(a)

  	
  2.05

  
	
   

  	
  (b)

  	
  11.03

  
	
   

  	
  (c)

  	
  11.03

  
	
  313(a)

  	
  7.06

  
	
   

  	
  (b)(1)

  	
  N.A.

  
	
   

  	
  (b)(2)

  	
  7.06

  
	
   

  	
  (c)

  	
  7.06; 11.02

  
	
   

  	
  (d)

  	
  7.06

  
	
  314(a)

  	
  4.02; 11.02

  
	
   

  	
  (b)

  	
  N.A.

  
	
   

  	
  (c)(1)

  	
  11.04

  
	
   

  	
  (c)(2)

  	
  11.04

  
	
   

  	
  (c)(3)

  	
  N.A.

  
	
   

  	
  (d)

  	
  N.A.

  
	
   

  	
  (e)

  	
  11.05

  
	
   

  	
  (f)

  	
  N.A.

  
	
  315(a)

  	
  7.01(b)

  
	
   

  	
  (b)

  	
  7.05; 11.02

  
	
   

  	
  (c)

  	
  7.01(a)

  
	
   

  	
  (d)

  	
  7.01(c)

  
	
   

  	
  (e)

  	
  6.11

  
	
  316(a) (last
  sentence)

  	
  2.09

  
	
   

  	
  (a)(1)(A)

  	
  6.05

  
	
   

  	
  (a)(1)(B)

  	
  6.04

  
	
   

  	
  (a)(2)

  	
  N.A.

  
	
   

  	
  (b)

  	
  6.04; 6.07

  
	
  317(a)(1)

  	
  6.08

  
	
   

  	
  (a)(2)

  	
  6.09

  
	
   

  	
  (b)

  	
  2.04

  
	
  318(a)

  	
  11.01

  
				

 

N.A. means not applicable.

 

*              This Cross-Reference
Table is not part of the Indenture.

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1. DEFINITIONS AND INCORPORATION BY REFERENCE

  	
  1

  
	
   

  	
   

  
	
   

  	
  Section 1.01.

  	
  Definitions

  	
  1

  
	
   

  	
  Section 1.02.

  	
  Other Definitions

  	
  15

  
	
   

  	
  Section 1.03.

  	
  Incorporation by Reference of
  Trust Indenture Act

  	
  15

  
	
   

  	
  Section 1.04.

  	
  Rules of Construction

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2. THE NOTES

  	
  16

  
	
   

  	
   

  
	
   

  	
  Section 2.01.

  	
  Form and Dating

  	
  16

  
	
   

  	
  Section 2.02.

  	
  Execution and Authentication

  	
  17

  
	
   

  	
  Section 2.03.

  	
  Registrar; Paying Agent;
  Depository; Note Custodian

  	
  18

  
	
   

  	
  Section 2.04.

  	
  Paying Agent to Hold Money in
  Trust

  	
  18

  
	
   

  	
  Section 2.05.

  	
  Noteholder Lists

  	
  19

  
	
   

  	
  Section 2.06.

  	
  Transfer and Exchange

  	
  19

  
	
   

  	
  Section 2.07.

  	
  Replacement Notes

  	
  32

  
	
   

  	
  Section 2.08.

  	
  Outstanding Notes

  	
  32

  
	
   

  	
  Section 2.09.

  	
  Treasury Notes

  	
  32

  
	
   

  	
  Section 2.10.

  	
  Temporary Notes

  	
  33

  
	
   

  	
  Section 2.11.

  	
  Cancellation

  	
  33

  
	
   

  	
  Section 2.12.

  	
  Defaulted Interest

  	
  33

  
	
   

  	
  Section 2.13.

  	
  CUSIP Numbers

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3. REDEMPTION

  	
  34

  
	
   

  	
   

  
	
   

  	
  Section 3.01.

  	
  Notices to Trustee

  	
  34

  
	
   

  	
  Section 3.02.

  	
  Selection of Notes to Be
  Redeemed

  	
  34

  
	
   

  	
  Section 3.03.

  	
  Notice of Redemption

  	
  34

  
	
   

  	
  Section 3.04.

  	
  Effect of Notice of
  Redemption

  	
  35

  
	
   

  	
  Section 3.05.

  	
  Deposit of Redemption Price

  	
  35

  
	
   

  	
  Section 3.06.

  	
  Notes Redeemed in Part

  	
  35

  
	
   

  	
  Section 3.07.

  	
  Mandatory Disposition
  Pursuant to Gaming Laws

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4. COVENANTS

  	
  36

  
	
   

  	
   

  
	
   

  	
  Section 4.01.

  	
  Payment of Notes

  	
  36

  
	
   

  	
  Section 4.02.

  	
  SEC Reports, Financial
  Reports

  	
  36

  
	
   

  	
  Section 4.03.

  	
  Compliance Certificate

  	
  37

  
	
   

  	
  Section 4.04.

  	
  Stay, Extension and Usury
  Laws

  	
  38

  
	
   

  	
  Section 4.05.

  	
  Limitation on Indebtedness

  	
  38

  
	
   

  	
  Section 4.06.

  	
  Limitation on Capital Stock
  of Restricted Subsidiaries

  	
  39

  
	
   

  	
  Section 4.07.

  	
  Corporate Existence

  	
  39

  
	
   

  	
  Section 4.08.

  	
  Taxes

  	
  39

  
	
   

  	
  Section 4.09.

  	
  Investment Company Act

  	
  39

  

 

i

 

	
   

  	
  Section 4.10.

  	
  Limitation on Transactions
  with Affiliates

  	
  40

  
	
   

  	
  Section 4.11.

  	
  Change of Control and Rating
  Decline

  	
  40

  
	
   

  	
  Section 4.12.

  	
  Limitation on Dividends and
  Other Payment Restrictions Affecting Restricted Subsidiaries

  	
  42

  
	
   

  	
  Section 4.13.

  	
  Restriction on Layering Debt

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5. SUCCESSORS

  	
  43

  
	
   

  	
   

  
	
   

  	
  Section 5.01.

  	
  When Company May Merge, etc

  	
  43

  
	
   

  	
  Section 5.02.

  	
  Successor Corporation
  Substituted

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6. DEFAULTS AND REMEDIES

  	
  44

  
	
   

  	
   

  
	
   

  	
  Section 6.01.

  	
  Events of Default

  	
  44

  
	
   

  	
  Section 6.02.

  	
  Acceleration

  	
  46

  
	
   

  	
  Section 6.03.

  	
  Other Remedies

  	
  46

  
	
   

  	
  Section 6.04.

  	
  Waiver of Past Defaults

  	
  46

  
	
   

  	
  Section 6.05.

  	
  Control by Majority

  	
  46

  
	
   

  	
  Section 6.06.

  	
  Limitation on Suits

  	
  47

  
	
   

  	
  Section 6.07.

  	
  Rights of Holders to Receive
  Payment

  	
  47

  
	
   

  	
  Section 6.08.

  	
  Collection Suit by Trustee

  	
  47

  
	
   

  	
  Section 6.09.

  	
  Trustee May File Proofs of
  Claim

  	
  47

  
	
   

  	
  Section 6.10.

  	
  Priorities

  	
  48

  
	
   

  	
  Section 6.11.

  	
  Undertaking for Costs

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7. TRUSTEE

  	
  48

  
	
   

  	
   

  
	
   

  	
  Section 7.01.

  	
  Duties of Trustee

  	
  48

  
	
   

  	
  Section 7.02.

  	
  Rights of Trustee

  	
  49

  
	
   

  	
  Section 7.03.

  	
  Individual Rights of Trustee

  	
  50

  
	
   

  	
  Section 7.04.

  	
  Trustee’s Disclaimer

  	
  50

  
	
   

  	
  Section 7.05.

  	
  Notice of Defaults

  	
  51

  
	
   

  	
  Section 7.06.

  	
  Reports by Trustee to
  Holders.

  	
  51

  
	
   

  	
  Section 7.07.

  	
  Compensation and Indemnity

  	
  51

  
	
   

  	
  Section 7.08.

  	
  Replacement of Trustee

  	
  52

  
	
   

  	
  Section 7.09.

  	
  Successor Trustee by Merger,
  etc

  	
  53

  
	
   

  	
  Section 7.10.

  	
  Eligibility; Disqualification

  	
  53

  
	
   

  	
  Section 7.11.

  	
  Preferential Collection of
  Claims Against Company

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8. DISCHARGE OF INDENTURE

  	
  53

  
	
   

  	
   

  
	
   

  	
  Section 8.01.

  	
  Termination of Company’s
  Obligations

  	
  53

  
	
   

  	
  Section 8.02.

  	
  Application of Trust Money

  	
  54

  
	
   

  	
  Section 8.03.

  	
  Repayment to Company

  	
  54

  
	
   

  	
  Section 8.04.

  	
  Reinstatement

  	
  55

  

 

ii

 

	
  ARTICLE 9. AMENDMENTS

  	
  55

  
	
   

  	
   

  
	
   

  	
  Section 9.01.

  	
  Without Consent of Holders

  	
  55

  
	
   

  	
  Section 9.02.

  	
  With Consent of Holders

  	
  55

  
	
   

  	
  Section 9.03.

  	
  Compliance with Trust
  Indenture Act

  	
  56

  
	
   

  	
  Section 9.04.

  	
  Revocation and Effect of
  Consents

  	
  56

  
	
   

  	
  Section 9.05.

  	
  Notation on or Exchange of
  Notes

  	
  57

  
	
   

  	
  Section 9.06.

  	
  Trustee Protected

  	
  57

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10. SUBORDINATION

  	
  57

  
	
   

  	
   

  
	
   

  	
  Section 10.01.

  	
  Notes Subordinated to Senior
  Indebtedness

  	
  57

  
	
   

  	
  Section 10.02.

  	
  Liquidation; Dissolution; Bankruptcy

  	
  57

  
	
   

  	
  Section 10.03.

  	
  Default on Senior
  Indebtedness

  	
  58

  
	
   

  	
  Section 10.04.

  	
  When Distribution Must Be
  Paid Over

  	
  59

  
	
   

  	
  Section 10.05.

  	
  Notice by Company

  	
  59

  
	
   

  	
  Section 10.06.

  	
  Subrogation

  	
  60

  
	
   

  	
  Section 10.07.

  	
  Relative Rights

  	
  60

  
	
   

  	
  Section 10.08.

  	
  Subordination May Not Be
  Impaired by Company

  	
  60

  
	
   

  	
  Section 10.09.

  	
  Distribution or Notice to
  Representatives

  	
  60

  
	
   

  	
  Section 10.10.

  	
  Rights of Trustee and Paying
  Agent

  	
  60

  
	
   

  	
  Section 10.11.

  	
  Trustee Entitled to Assume
  Payments Not Prohibited in Absence of Notice

  	
  61

  
	
   

  	
  Section 10.12.

  	
  Application by Trustee of
  Monies Deposited With It

  	
  61

  
	
   

  	
  Section 10.13.

  	
  Trustee’s Compensation Not
  Prejudiced

  	
  62

  
	
   

  	
  Section 10.14.

  	
  Officers’ Certificate

  	
  62

  
	
   

  	
  Section 10.15.

  	
  Certain Payments

  	
  62

  
	
   

  	
  Section 10.16.

  	
  Names of Representatives

  	
  62

  
	
   

  	
  Section 10.17.

  	
  Article 10 Not to Prevent
  Events of Default or Limit Right to Accelerate

  	
  62

  
	
   

  	
  Section 10.18.

  	
  Reliance By Holders of Senior
  Indebtedness on Subordination Provisions

  	
  62

  
	
   

  	
  Section 10.19.

  	
  Proof of Claim

  	
  63

  
	
   

  	
  Section 10.20.

  	
  No Fiduciary Duty Created to
  Holders of Senior Indebtedness

  	
  63

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11. MISCELLANEOUS

  	
  63

  
	
   

  	
   

  
	
   

  	
  Section 11.01.

  	
  Trust Indenture Act Controls

  	
  63

  
	
   

  	
  Section 11.02.

  	
  Notices

  	
  63

  
	
   

  	
  Section 11.03.

  	
  Communication by Holders with
  Other Holders

  	
  64

  
	
   

  	
  Section 11.04.

  	
  Certificate and Opinion as to
  Conditions Precedent

  	
  64

  
	
   

  	
  Section 11.05.

  	
  Statements Required in
  Certificate or Opinion

  	
  64

  
	
   

  	
  Section 11.06.

  	
  Rules by Trustee and Agents

  	
  65

  
	
   

  	
  Section 11.07.

  	
  Legal Holidays

  	
  65

  
	
   

  	
  Section 11.08.

  	
  No Recourse Against Others

  	
  65

  
	
   

  	
  Section 11.09.

  	
  Counterparts

  	
  65

  
	
   

  	
  Section 11.10.

  	
  Variable Provisions

  	
  65

  
	
   

  	
  Section 11.11.

  	
  Governing Law

  	
  66

  
	
   

  	
  Section 11.12.

  	
  No Adverse Interpretation of
  Other Agreements

  	
  66

  

 

iii

 

	
   

  	
  Section 11.13.

  	
  Successors

  	
  66

  
	
   

  	
  Section 11.14.

  	
  Severability

  	
  66

  
	
   

  	
  Section 11.15.

  	
  Qualification of Indenture

  	
  66

  
	
   

  	
  Section 11.16.

  	
  Table of Contents, Headings,
  etc

  	
  66

  

 

iv

 

	
  Exhibit A

  	
   

  	
  Form of Global
  Note

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
   

  	
  Form of
  Regulation S Temporary Note

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  Form of
  Certificate of Transfer

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
   

  	
  Form of
  Certificate for Transfer or Exchange

  

 

v

 

INDENTURE
dated as of March 13, 2006 among STATION CASINOS, INC., a Nevada corporation
(the “Company”), and LAW DEBENTURE TRUST COMPANY OF NEW YORK, a New York
banking corporation, as Trustee (the “Trustee”).

 

Each
party agrees as follows for the benefit of the other parties and for the equal
and ratable benefit of the Holders of the Company’s 65/8%
Series A Senior Subordinated Notes due 2018 (the “Series A Notes”) and the
Company’s 65/8% Series B Senior Notes due 2018 (the
“Series B Notes” and, together with the Series A Notes, the “Notes”).

 

ARTICLE 1.

DEFINITIONS AND INCORPORATION 

BY REFERENCE

 

Section 1.01.          Definitions.

 

“Affiliate” of any specified person means
any other person (i) which directly or indirectly through one or more
intermediaries controls, or is controlled by, or is under common control with,
such specified person, (ii) which directly or indirectly through one or more
intermediaries beneficially owns or holds 10% or more of any class of the
Voting Stock of such specified person (or a 10% or greater equity interest in
such person which is not a corporation) or (iii) of which 10% or more of any
class of the Voting Stock (or, in the case of a person which is not a
corporation, 10% or more of the equity interest) is beneficially owned or held
directly or indirectly through one or more intermediaries by such person. The
term “control” means the possession, directly or indirectly, of the power to
direct or cause the direction of the management and policies of a person,
whether through the ownership of voting securities, by contract or otherwise.

 

“Agent” means any Registrar, Paying Agent or co-registrar.

 

“Amortization Expense” means, for any
period, amounts recognized during such period as amortization of all goodwill
and other assets classified as intangible assets in accordance with GAAP.

 

“Applicable Procedures” means, with respect to any transfer
or exchange of beneficial interests in a Global Note, the rules and procedures
of the Depository, Euroclear or Clearstream that are applicable to such
transfer or exchange.

 

“Average Life” means, as of the date of determination, with
reference to any Indebtedness, the quotient obtained by dividing (i) the sum of
the products of the number of years from the date of determination to the dates
of each successive scheduled principal payment of such Indebtedness multiplied
by the amount of such principal payment by (ii) the sum of all such principal
payments.

 

“Bank Facility” means the Third Amended and Restated Loan
Agreement as of December 15, 2005, by and among Palace, Boulder, Texas, Sunset,
Santa Fe, Lake Mead Holdings, Lake Mead, Fiesta Holdings, Fiesta and Charleston
Station, LLC, the Lenders party thereto and The Royal Bank of Scotland, PLC,
Deutsche Bank Trust Company Americas, Wachovia Bank, National Association and
Bank of Scotland as Co-Documentation Agents, and

 

 

Wells
Fargo Bank, N.A., as Syndication Agents, and Bank of America, N.A., as
Administrative Agent, as amended, modified or refinanced from time to time,
provided that the managing agent for the lenders under such refinancing is a
banking institution with over $500 million in assets and subject to supervision
and examination by federal or state banking authorities.

 

“Board of Directors” or “Board”
means the Board of Directors of the Company.

 

“Boulder” means Boulder Station, Inc.

 

“Business Day” means any day other than a Legal Holiday.

 

“Capital Lease Obligations” of a person means any obligation
that is required to be classified and accounted for as a capital lease on the
face of a balance sheet of such person prepared in accordance with GAAP; the
amount of such obligation shall be the capitalized amount thereof, determined
in accordance with GAAP; the stated maturity thereof shall be the date of the
last payment of rent or any other amount due under such lease prior to the
first date upon which such lease may be terminated by the lessee without
payment of a penalty; and such obligation shall be deemed secured by a Lien on
any property or assets to which such lease relates.

 

“Capital Stock” means, with respect to any person, any and
all shares, interests, rights to purchase, warrants, options, participations or
other equivalents (including partnerships or partnership interests), or ownership
interests (however designated) of such person, including each class of common
stock and preferred stock of such person, but excluding convertible
Indebtedness.

 

“Certificated Note” means a certificated
Note registered in the name of the Holder thereof and issued in accordance with
Section 2.06 hereof, in the form of Exhibit A hereto except that such Note
shall not bear the Global Note Legend and shall not have the “Schedule of
Exchanges of Interests in the Global Note” attached thereto.

 

“Change of Control” means an event or series of events by
which (i) the Company sells, conveys, transfers or leases, directly or
indirectly, all or substantially all of the properties and assets of the
Company and its Restricted Subsidiaries to any person, corporation, entity or
group, (ii) any “person” (as such term is used in Sections 13(d) and 14(d) of
the Exchange Act) (other than the Existing Equity Holders) is or becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Exchange Act,
except that a person shall be deemed to have “beneficial ownership” of all
shares that any such person has the right to acquire, whether such right is
exercisable immediately or only after the passage of time), directly or
indirectly of securities representing 40% or more of the combined voting power
of the Company’s Voting Stock and at such time as the Existing Equity Holders
together shall fail to beneficially own, directly or indirectly, securities
representing at least the same percentage of the combined voting power of the
Company’s Voting Stock as is “beneficially owned” by such “person,” (iii) the
Company consolidates with or merges into another corporation, or any
corporation consolidates with or merges into the Company, in either event
pursuant to a transaction in which the outstanding Voting Stock of the Company
is changed into or exchanged for cash, securities or other property, other than
any such transactions between the Company and

 

2

 

its
wholly-owned Restricted Subsidiaries, with the effect that any “person” (other
than the Existing Equity Holders) becomes the “beneficial owner,” directly or
indirectly, of securities representing 40% or more of the combined voting power
of the Company’s Voting Stock and at such time as the Existing Equity Holders
together shall fail to beneficially own, directly or indirectly, securities
representing at least the same percentage of the combined voting power of the
Company’s Voting Stock as is “beneficially owned” by such “person,” or (iv)
during any period of 24 consecutive months, individuals who at the beginning of
such period constituted the Company’s Board of Directors (together with any new
or replacement directors whose election by the Company’s Board of Directors, or
whose nomination for election by the Company’s stockholders, was approved by a
vote of at least a majority of the directors then still in office who were
either directors at the beginning of such period or whose election or
nomination for election was previously so approved) cease for any reason to
constitute a majority of the directors then in office.

 

“Change of Control Triggering Event” is defined as the
occurrence of both (i) a Change of Control and (ii) a Rating Decline.

 

“Clearstream” means Clearstream Banking
S.A., or its successors.

 

“Company” means the person named as such above until a
successor replaces it in accordance with Article 5 and thereafter means the
successor.

 

“Completion Guarantee and Keep-Well Agreement” means (i) the
guarantee by the Company or a Restricted Subsidiary of the completion of the
development, construction and opening of a new gaming facility by an Affiliate
of the Company, (ii) the agreement by the Company or a Restricted Subsidiary to
advance funds, property or services on behalf of an Affiliate of the Company in
order to maintain the financial condition of such Affiliate in connection with
the development, construction and opening of a new gaming facility by such
Affiliate and (iii) performance bonds incurred in the ordinary course of
business; provided that, in the
case of clauses (i) and (ii) above, such guarantee or agreement is entered into
in connection with obtaining financing for such gaming facility or is required
by a Gaming Authority.

 

“Consolidated Coverage Ratio” means, for any period, for any
person, the ratio of the aggregate amount of Operating Cash Flow of such person
for such period to the aggregate amount of Consolidated Interest Expense of
such person for such period.

 

“Consolidated Interest Expense” means, for any period, the
total interest expense of a person and its consolidated Restricted
Subsidiaries, including (i) interest expense attributable to Capital Lease
Obligations, (ii) amortization of debt discount, (iii) capitalized interest,
(iv) cash and noncash interest payments, (v) commissions, discounts and other
fees and charges owed with respect to letters of credit and bankers’ acceptance
financing, (vi) net costs under Interest Rate Protection Agreements (including
amortization of discount) and (vii) interest expense in respect of obligations
of other persons deemed to be Indebtedness of the Company or its Restricted
Subsidiaries under clause (v) or (vi) of the definition of Indebtedness.

 

“Consolidated Net Income” means, for any period, the net income
of a person and its consolidated Restricted Subsidiaries determined on a
consolidated basis in accordance

 

3

 

with
GAAP; provided, however, that there shall not be included
in such Consolidated Net Income:  (i) any
net income (loss) of any person if such person is not a Restricted Subsidiary,
except that (A) the Company’s equity in the net income of any such person
(including, without limitation, an Unrestricted Subsidiary) for such period
shall be included in such Consolidated Net Income up to the aggregate amount of
cash actually distributed by such person during such period to the Company or a
Restricted Subsidiary as a dividend or other distribution (subject, in the case
of a dividend or other distribution to a Restricted Subsidiary, to the
limitations contained in clause (iii) below); and (B) the Company’s equity in
the net loss of any such person for such period shall be included in
determining such Consolidated Net Income (subject, with respect to the net loss
of an Unrestricted Subsidiary, to clause (vi) below); (ii) any net income
(loss) of any person acquired by the Company or a Restricted Subsidiary in a
pooling of interests transaction for any period prior to the date of such
acquisition; (iii) any net income (loss) of any Restricted Subsidiary if such
Restricted Subsidiary is subject to restrictions, directly or indirectly, on
the payment of dividends or the making of distributions by such Restricted
Subsidiary, directly or indirectly, to the Company, except that (A) the
Company’s equity in the net income of any such Restricted Subsidiary for such
period shall be included in such Consolidated Net Income up to the aggregate
amount of cash which could have been distributed by such Restricted Subsidiary
during such period to the Company or another Restricted Subsidiary as a
dividend or other distribution (subject, in the case of a dividend or other
distribution to another Restricted Subsidiary, to the limitation contained in
this clause) unless at the time of computation no cash would be permitted to be
distributed and (B) the Company’s equity in the net loss of any such Restricted
Subsidiary for such period shall be included in determining such Consolidated
Net Income; (iv) any gain or loss realized upon the sale or other disposition
of any property, plant or equipment of the Company or its consolidated
Restricted Subsidiaries which is not sold or otherwise disposed of in the
ordinary course of business and any gain or loss realized upon the sale or other
disposition of any Capital Stock of any person; (v) the cumulative effect of a
change in accounting principles; (vi) the net loss of any Unrestricted
Subsidiary; and (vii) extraordinary or nonrecurring gains or losses.

 

“Consolidated Net Tangible Assets” means the
total amount of assets (including investments in Joint Ventures) of the Company
and its Subsidiaries (less applicable depreciation, amortization and other
valuation reserves) after deducting therefrom (i) all current liabilities of
the Company and its Subsidiaries (excluding (A) the current portion of
long-term indebtedness, (B) intercompany liabilities and (C) any liabilities
which are by their terms renewable or extendible at the option of the obligor
thereon to a time more than 12 months from the time as of which the amount
thereof is being computed) and (ii) all goodwill, trade names, trademarks,
patents, unamortized debt discount and any other like intangibles, all as set
forth on the most recent consolidated balance sheet of the Company and computed
in accordance with GAAP.

 

“Consolidated Net Worth” of any person means the total of the
amounts shown on the balance sheet of such person and its consolidated
Restricted Subsidiaries, determined on a consolidated basis in accordance with
GAAP, as of any date selected by the Company not more than 90 days prior to the
taking of any action for the purpose of which the determination is being made
(and adjusted for any material events since such date), as (i) the par or
stated value of all outstanding Capital Stock plus (ii) paid-in capital or
capital surplus relating to such Capital Stock plus (iii) any retained earnings
or earned surplus, less (A) any accumulated deficit, (B) any

 

4

 

amounts
attributable to Redeemable Stock and (C) any amounts attributable to
Exchangeable Stock.

 

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

 

“Depository” means, with respect to the Notes issuable or
issued in whole or in part in global form, the person specified in Section 2.03
hereof as the Depository with respect to the Notes, until a successor shall
have been appointed and become such Depository pursuant to the applicable
provision of this Indenture, and, thereafter, “Depository” shall mean or
include such successor.

 

“Designated Senior Indebtedness” shall mean
each issue of Senior Indebtedness that: (i) has an outstanding principal amount
of at least $25,000,000 (including the amount of all reimbursement obligations
pursuant to letters of credit thereunder and the maximum principal amount
available to be drawn thereunder, assuming in the case of the Bank Facility
that all conditions precedent to any such drawing could be satisfied); and (ii)
has been designated as Designated Senior Indebtedness pursuant to an Officer’s
Certificate of the Company received by the Trustee.

 

“Euroclear” means Euroclear Bank S.A./N.V.,
or its successor, as operator of the Euroclear system.

 

“Exchange Act” means the Securities Exchange Act of 1934, as
amended.

 

“Exchange Offer” means the offer that may be made by the
Company pursuant to the Registration Rights Agreement to exchange Series B
Notes for Series A Notes.

 

“Exchangeable Stock” means any Capital Stock of a corporation
that is exchangeable or convertible into another security (other than into
Capital Stock of such corporation that is neither Exchangeable Stock or
Redeemable Stock).

 

“Existing Equity Holders” means Frank J. Fertitta III, Blake
L. Sartini, Delise F. Sartini, Lorenzo J. Fertitta, Glenn C. Christenson, Scott
M Nielson, William W. Warner and the Former Equity Holder and their executors,
administrators or the legal representatives of their estates, their heirs,
distributees and beneficiaries, any trust as to which any of the foregoing is a
settlor or co-settlor and any corporation, partnership or other entity which is
an Affiliate of any of the foregoing. Existing Equity Holders shall also mean
any lineal descendants of such persons, but only to the extent that the beneficial
ownership of the Voting Stock held by such lineal descendants was directly
received (by gift, trust or sale) from any such person.

 

“Existing Notes” means the $450,000,000 6%
Senior Notes of the Company due 2012 and the Existing Senior Subordinated Notes.

 

“Existing Senior Subordinated Notes” means
the $450,000,000 61⁄2% Senior Subordinated Notes of the Company due 2014 and the
$700,000,000 67/8% Senior Subordinated Notes of the
Company due 2016.

 

5

 

“FF&E Financing” means Indebtedness which is non-recourse
to the borrower, the proceeds of which will be used to finance the acquisition
or lease by the Company or its Restricted Subsidiaries of furniture, fixtures
or equipment (“FF&E”) used in the operation of its business and secured by
a Lien on such FF&E.

 

“Fiesta” means Fiesta Station, Inc.

 

“Fiesta Holdings” means Fiesta Station Holdings, LLC.

 

“Former Equity Holder” means Frank J. Fertitta, Jr.

 

“GAAP” means generally accepted accounting principles as in
effect in the United States of America on the date of this Indenture.

 

“Gaming Authority” means the Nevada Gaming Commission, the
Nevada Gaming Control Board or any agency of any state, county, city or other
political subdivision which has, or may at any time after the date of the
Indenture have, jurisdiction over all or any portion of the gaming activities
of the Company or any of its Subsidiaries or any successor to such authority.

 

“Gaming Control Act” means the Nevada Gaming Control Act, as
from time to time amended, or any successor provision of law, and the
regulations promulgated thereunder.

 

“Gaming License” of any person means every license, franchise
or other authorization on the date of the Indenture or thereafter required to
own, lease, operate or otherwise conduct the gaming operations of such person,
including, without limitation, all such licenses granted under the Gaming
Control Act, as from time to time amended, or any successor provision at law,
the regulations of Gaming Authorities and other applicable laws.

 

“Global Notes” means, individually and collectively, each of
the Restricted Global Notes and the Unrestricted Global Notes, in the form of Exhibit A or Exhibit B hereto issued in accordance with Section 2.01, 2.06(b),
2.06(d) or 2.06(f) hereof.

 

“Global Note Legend” means the legend set
forth in Section 2.06(g)(ii), which is required to be placed on all Global
Notes issued under this Indenture.

 

“Governmental Authority” means any agency, authority, board,
bureau, commission, department, office or instrumentality of any nature
whatsoever of any city or other political subdivision or otherwise and whether
now or hereafter in existence, or any officer or official thereof.

 

“Holder” or “Noteholder”
means a person in whose name a Note is registered on the register maintained by
the Registrar.

 

“Indebtedness” of any person means, without duplication, (i)
the principal of and premium (if any) in respect of (A) indebtedness of such
person for money borrowed and (B) indebtedness evidenced by notes, debentures,
bonds or other similar instruments for the payment of which such person is
responsible or liable; (ii) all Capital Lease Obligations of such person;

 

6

 

(iii)
all obligations of such person issued or assumed as the deferred purchase price
of property, assets or services, all conditional sale obligations and all
obligations under any title retention agreement (but excluding operating leases
and trade accounts payable arising in the ordinary course of business); (iv)
all obligations of such person for the reimbursement of any obligor on any
letter of credit, banker’s acceptance or similar credit transaction (other than
obligations with respect to letters of credit securing obligations (other than
obligations described in (i) through (iii) above) entered into in the ordinary
course of business of such person to the extent such letters of credit are not
drawn upon or, if and to the extent drawn upon, such drawing is reimbursed no
later than the third Business Day following receipt by such person of a demand
for reimbursement following payment on the letter of credit); (v) all
obligations of the type referred to in clauses (i) through (iv) of other
persons and all dividends of other persons for the payment of which, in either
case, such person is responsible or liable as obligor, guarantor or otherwise;
and (vi) all obligations of the type referred to in clauses (i) through (v) of
other persons secured by any Lien on any property or asset of such person (whether
or not such obligation is assumed by such person), the amount of such
obligation being deemed to be the lesser of the value of such property or asset
or the amount of the obligation so secured.

 

“Indenture” means this Indenture as amended or supplemented
from time to time.

 

“Indirect Participant” means a person who
holds a beneficial interest in a Global Note through a Participant.

 

“Interest Payment Date” means the dates on which the Company
shall pay interest on the Notes to Noteholders, as described in the Notes.

 

“Interest Rate Protection Agreement” means any interest rate
swap agreement, interest rate cap agreement or other financial agreement or
arrangement designed to protect the Company or any Subsidiary against
fluctuations in interest rates.

 

“Investment Grade” designates a rating of BBB- or higher by
S&P or Baa3 or higher by Moody’s or the equivalent of such ratings by
S&P or Moody’s. In the event that the Company shall select any other Rating
Agency, the equivalent of such ratings by such Rating Agency shall be used.

 

“Joint Venture” means any partnership, corporation or other
entity, in which up to and including 50% of the partnership interests,
outstanding voting stock or other equity interests is owned, directly or
indirectly, by the Company and/or one or more Subsidiaries.

 

“Lake Mead” means Lake Mead Station, Inc.

 

“Lake Mead Holdings” means Lake Mead Station
Holdings, LLC.

 

“Legal Requirements” means, with respect to
any project, all laws, statutes and ordinances (including building codes and
zoning and environmental laws, regulations and ordinances), and all rules,
orders, rulings, regulations, directives and requirements of all Governmental
Authorities, which are now or which may hereafter be in existence, and which
are applicable to the Company or any Affiliate thereof in connection with the
construction or

 

7

 

development
of any project or the operation of its business, or any part thereof,
including, without limitation, the Nevada Gaming Control Act, as modified by
any variances, special use permits, waivers, exceptions or other exemptions
which may from time to time be applicable to the Company or any Affiliate
thereof.

 

“Lien” means, with respect to any asset, any mortgage, lien,
pledge, charge, security interest or encumbrance of any kind in respect of such
asset (including any agreement to give any security interest). For all purposes
under this Indenture, a person shall be deemed to own subject to a Lien any
asset that it has acquired or holds subject to the interest of a vendor or
lessor under any conditional sale agreement, Capital Lease Obligation or other
title retention agreement (other than operating leases) relating to such asset.

 

“Liquidated Damages” means all liquidated damages then owing
pursuant to Section 5 of the Registration Rights Agreement.

 

“Moody’s” means Moody’s Investors Service, Inc. and its
successors.

 

“Non-U.S. person” means a person who is not
a U.S. person.

 

“Note Custodian” means the person specified in Section 2.03,
as custodian with respect to the Global Notes, or any successor entity thereto.

 

“Officer” means the Chairman of the Board, the President, any
Vice President, the Treasurer, the Secretary, the Chief Financial Officer, any
Assistant Treasurer or any Assistant Secretary of the Company.

 

“Officers’ Certificate” means a certificate signed by any two
Officers, one of whom must be the Chairman of the Board, the President, the
Treasurer or a Vice President of the Company.

 

“Operating Cash Flow” means, for any period, for any person,
the aggregate amount of Consolidated Net Income of such person before
Consolidated Interest Expense, income taxes, depreciation expense, Amortization
Expense and any noncash amortization of debt issuance cost. Notwithstanding the
foregoing, the Consolidated Interest Expense, income taxes, depreciation
expense, Amortization Expense and any noncash amortization of debt issuance
cost of a subsidiary of a person shall be added to Consolidated Net Income to
compute Operating Cash Flow in the same proportion that the net income of such
subsidiary was included in calculating the Consolidated Net Income of such
person.

 

“Opinion of Counsel” means a written opinion from legal
counsel who is reasonably acceptable to the Trustee. Unless otherwise required
by the Trustee, the counsel may be an employee of or counsel to the Company or
the Trustee.

 

“Palace” means Palace Station Hotel &
Casino, Inc.

 

“Participant” means, with respect to DTC,
Euroclear or Clearstream, a person who has an account with DTC, Euroclear or
Clearstream, respectively (and, with respect to DTC, shall include Euroclear
and Clearstream).

 

8

 

“Permitted Refinancing Indebtedness” means Indebtedness of
the Company or a Restricted Subsidiary (i) issued in exchange for, or the
proceeds from the issuance and sale or disbursement of which are used to
substantially concurrently repay, redeem, refund, refinance, discharge or
otherwise retire for value, in whole or in part (collectively, “repay”), or
(ii) constituting an amendment, modification or supplement to, or a deferral or
renewal of (collectively, an “amendment”), any Indebtedness of the Company or a
Restricted Subsidiary (and any premiums, penalties, fees and expenses actually
incurred by the Company or such Restricted Subsidiary in connection with the
repayment or amendment thereof) existing immediately after the original
issuance of the Series A Notes or incurred pursuant to clauses (iii), (vi),
(vii) and (viii) (subject to proviso (C) below) of Section 4.05, in a principal
amount (or, if such Permitted Refinancing Indebtedness provides for an amount
less than the principal amount thereof to be due and payable upon the
acceleration thereof, with an original issue price) not in excess of (1) the
principal amount of the Indebtedness so refinanced (or, if such Permitted
Refinancing Indebtedness refinances Indebtedness under an agreement providing a
commitment for subsequent borrowings, with a maximum commitment not to exceed
the maximum commitment under such agreement) plus (2) unpaid accrued interest
on such Indebtedness plus (3) premiums, penalties, fees and expenses actually
incurred by the Company or such Restricted Subsidiary, as the case may be, in
connection with the repayment or amendment thereof; provided that (A) Permitted Refinancing Indebtedness of the
Company that repays or constitutes an amendment to Subordinated Indebtedness
shall not have an Average Life less than the Indebtedness to be so refinanced
at the time of such incurrence, and shall contain subordination and default
provisions no less favorable in any material respect to the Noteholders than
those contained in such repaid or amended Indebtedness, (B) notwithstanding the
foregoing, any Permitted Refinancing Indebtedness incurred to repay all of the
Notes then outstanding shall not be limited in principal amount or otherwise if
the Company, contemporaneously with such issuance, irrevocably deposits with
the Trustee or Paying Agent an amount of the proceeds of such Permitted
Refinancing Indebtedness sufficient to redeem or repay each installment of the
outstanding principal amount of the Notes on, and all interest accrued to, the
date fixed for such repayment, together with irrevocable instructions to redeem
and repay the Notes on the stated redemption date and (C) to the extent that
Permitted Refinancing Indebtedness includes Indebtedness incurred in connection
with the refinancing of the Bank Facility (whether or not such Indebtedness is
existing on or after the date of the Indenture) and the managing agent for the
lenders under such refinancing Indebtedness is a person other than a banking
institution with over $500 million in assets and subject to supervision and
examination by federal or state banking authorities, the provisions of clause
(viii) of Section 4.05 shall terminate and be of no further force and effect
with respect to such refinancing Indebtedness.

 

“person” means any individual, corporation, partnership,
joint venture, association, joint stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.

 

“principal” of any Indebtedness means the principal amount
thereof plus the premium, if any, thereon.

 

“Private Placement Legend” means the legend
set forth in Section 2.06(g)(i) to be placed on all Notes issued under this
Indenture except where otherwise permitted by the provisions of this Indenture.

 

9

 

“QIB” means a “qualified institutional
buyer” as defined in Rule 144A.

 

“Qualified Non-Recourse Debt” means Indebtedness (i) as to
which neither the Company nor any of its Restricted Subsidiaries (a) provides
credit support of any kind (including any undertaking, agreement or instrument
that would constitute Indebtedness), (b) is directly or indirectly liable (as a
guarantor or otherwise), or (c) constitutes the lender; and (ii) no default
with respect to which (including any rights that the holders thereof may have
to take enforcement action against an Unrestricted Subsidiary) would permit
(upon notice, lapse of time or both) any holder of any other Indebtedness of
the Company or any of its Restricted Subsidiaries to declare a default on such
other Indebtedness or cause the payment thereof to be accelerated or payable
prior to its stated maturity; and (iii) as to which the lenders have been
notified in writing that they will not have any recourse to the stock or assets
of the Company or any of its Restricted Subsidiaries, other than by a pledge by
the Company or a Restricted Subsidiary of the stock of an Unrestricted
Subsidiary; provided, however, that the Company or any of its
Restricted Subsidiaries may (x) execute a Completion Guarantee and Keep-Well
Agreement for an Unrestricted Subsidiary whose sole purpose is to develop,
construct and operate a new gaming facility or (y) make a loan to an
Unrestricted Subsidiary and such actions referred to in the foregoing clauses
(x) and (y) shall not constitute Indebtedness which is not Qualified
Non-Recourse Debt.

 

“Rating Agencies” means (i) S&P and (ii) Moody’s or (iii)
if S&P or Moody’s or both shall not make a rating of the Notes publicly
available, a nationally recognized securities rating agency or agencies, as the
case may be, selected by the Company, which shall be substituted for S&P or
Moody’s or both, as the case may be.

 

“Rating Category” means (i) with respect to S&P, any of
the following categories:  BB, B, CCC,
CC, C and D (or equivalent successor categories); and (ii) with respect to
Moody’s, any of the following categories: 
Ba, B, Caa, Ca, C and D (or equivalent successor categories); and (iii)
the equivalent of any such category of S&P or Moody’s used by another
Rating Agency. In determining whether the rating of the Notes has decreased by
one or more gradation, gradations within Rating Categories (+ and - for
S&P; l, 2 and 3 for Moody’s; or the equivalent gradations for another
Rating Agency) shall be taken into account (e.g., with respect to S&P, a
decline in a rating from BB+ to BB, as well as from BB- to B+, will constitute
a decrease of one gradation).

 

“Rating Date” means the date which is 90 days prior to the
earlier of (i) a Change of Control or (ii) public notice of the occurrence of a
Change of Control or of the intention by the Company to effect a Change of
Control.

 

“Rating Decline” shall be deemed to occur if, within 90 days
of public notice of the occurrence of a Change of Control (which period shall
be extended so long as the rating of the Notes is under publicly announced
consideration for possible downgrade by either of the Rating Agencies):  (a) in the event the Notes are rated by
either Rating Agency on the Rating Date as Investment Grade the rating of the
Notes by both Rating Agencies shall be below Investment Grade, or (b) in the
event the Notes are rated below Investment Grade by both Rating Agencies on the
Rating Date, the rating of the Notes by either Rating Agency shall be decreased

 

10

 

by one
or more gradations (including gradations within Rating Categories as well as
between Rating Categories).

 

“Redeemable Stock” means any Capital Stock that by its terms
or otherwise (other than in consideration of Capital Stock that is not
Redeemable Stock) is, or upon the happening of an event would be, required to
be redeemed or repurchased, pursuant to a sinking fund obligation or otherwise,
or is redeemable at the option of the holder thereof, in whole or in part, at
any time prior to the first anniversary of the stated maturity of the Notes; provided, however, that any Capital Stock that would constitute
Redeemable Stock solely because the holders thereof (or of any security into
which it is convertible or for which it is exchangeable) have the right to
require the issuer to repurchase such Capital Stock (or such security into
which it is convertible or for which it is exchangeable) upon the occurrence of
any of the events constituting a Change of Control shall not constitute
Redeemable Stock if such Capital Stock (and all such securities into which it is
convertible or for which it is exchangeable) provides that the issuer thereof
will not repurchase or redeem any such Capital Stock (or any such security into
which it is convertible or for which it is exchangeable) pursuant to Section
4.11.

 

“Registration Rights Agreement” means the Registration Rights
Agreement, dated as of March 13, 2006, by and among the Company and Banc of
America Securities LLC, Deutsche Bank Securities Inc., Wachovia Capital
Markets, LLC, Wells Fargo Securities, LLC, Greenwich Capital Markets, Inc.,
Calyon Securities (USA) Inc., Commerzbank Capital Markets Corp., J.P. Morgan
Securities Inc. and Scotia Capital (USA) Inc., as such agreement may be
amended, modified or supplemented from time to time.

 

“Regulation S” means Regulation S promulgated under the
Securities Act.

 

“Regulation S Global Note” means a Regulation S Temporary
Global Note or Regulation S Permanent Global Note, as appropriate.

 

“Regulation S Permanent Global Note” means a permanent global
Note in the form of Exhibit A hereto bearing the Global Note Legend and the
Private Placement Legend and deposited with or on behalf of and registered in
the name of the Depository or its nominee, issued in a denomination equal to
the outstanding principal amount of the Regulation S Temporary Global Note upon
expiration of the Restricted Period.

 

“Regulation S Temporary Global Note” means a temporary global
Note in the form of Exhibit B hereto bearing the Global Note Legend, the
Private Placement Legend and the legend set forth in Section 2.06(g)(iii)
hereto, and deposited with or on behalf of and registered in the name of the
Depository or its nominee, issued in a denomination equal to the outstanding
principal amount of the Notes initially sold in reliance on Rule 903 of
Regulation S.

 

“Related Person” of any person means (i) (A) if such person
is a corporation, any person who is a director, officer or employee (x) of such
person, (y) of any subsidiary of such person or (z) of any Affiliate of such
person or (B) if such person is an individual, any immediate family member or
lineal descendent of such person or spouse of such immediate family member or
of such lineal descendant, or (ii) any Affiliate of any person included in
clause (i) and any person who is a director, officer or employee of such
Affiliate.

 

11

 

“Representative” means the indenture trustee or other
trustee, agent or representative, if any, for an issue of Senior Indebtedness.

 

“Required Rating” means ratings on the Notes of at least BBB-
by S&P and Baa3 by Moody’s.

 

“Responsible Officer” when used with respect to the Trustee,
means any officer within the corporate trust administration group of the
Trustee (or any successor group of the Trustee) with direct responsibility for
the administration of this Indenture and also means, with respect to a
particular corporate trust matter, any other officer to whom such matter is
referred because of his knowledge of and familiarity with the particular
subject.

 

“Restricted Broker-Dealer” means a
Broker-Dealer (as defined in the Registration Rights Agreement) engaged in
activities contemplated by Section 3(c) of the Registration Rights Agreement.

 

“Restricted Period” means the 40-day
restricted period as defined in Regulation S.

 

“Restricted Certificated Note” means a
Certificated Note bearing the Private Placement Legend.

 

“Restricted Global Note” means a Global Note
bearing the Private Placement Legend.

 

“Restricted Subsidiary” of a person means any subsidiary of
the referent person that is not an Unrestricted Subsidiary.

 

“Rule 144A” means Rule 144A promulgated under the Securities
Act, as it may be amended from time to time, and any successor provision
thereto.

 

“Rule 144A Global Note” means the Global Note in the form of
Exhibit A hereto
bearing the Global Note Legend and the Private Placement Legend and deposited
with or on behalf of and registered in the name of the Depository or its
nominee that will be issued in a denomination equal to the outstanding
principal amount of the Notes sold in reliance on Rule 144A.

 

“Santa Fe” means Santa Fe Station, Inc.

 

“Senior Indebtedness” means: (x) all
obligations of the Company now or hereafter existing to pay the principal of,
and interest (including interest accruing on or after the filing of any
petition in bankruptcy or for reorganization to the extent a claim for
post-filing interest is allowed in such proceedings) on, any Indebtedness
(other than Capital Lease Obligations) of the Company, whether outstanding on
the date of the Indenture or thereafter created, incurred, assumed, guaranteed
or in effect guaranteed by the Company; (y) Indebtedness of the Company
represented by Capital Lease Obligations if the instrument creating or
evidencing the same expressly provides that such Indebtedness shall be senior
in right of payment to the Notes; and 
(z) Indebtedness of the Company with respect to Interest Rate

 

12

 

Protection
Agreements. Notwithstanding the foregoing, Senior Indebtedness shall not include:
(a) any Indebtedness, if the instrument creating or evidencing the same or the
assumption or guarantee thereof expressly provides that such Indebtedness shall
not be senior in right of payment to the Notes; (b) in the case of each Note,
the other Notes; (c) the Existing Senior Subordinated Notes; (d) Indebtedness
of the Company to, or guaranteed on behalf of, an Affiliate of the Company
(other than a Restricted Subsidiary); (e) Indebtedness to trade creditors
incurred or assumed in the ordinary course of business in connection with
obtaining goods, materials or services; (f) Indebtedness represented by
Exchangeable Stock or Redeemable Stock; (g) any liability for federal, state,
local or other taxes owed or owing by the Company; (h) Indebtedness incurred in
violation of Section 4.05 hereof and (i) any Indebtedness which is, by its
express terms, subordinated in right of payment to any other Indebtedness of
the Company.

 

“SEC” means the Securities and Exchange Commission.

 

“Securities Act” means the Securities Act of 1933, as
amended.

 

“S&P” means Standard & Poor’s Corporation and its
successors.

 

“Subordinated Indebtedness” means any Indebtedness of the
Company (whether outstanding on the date hereof or hereafter incurred) which is
subordinate or junior in right of payment to the Notes.

 

“subsidiary” of a person means any corporation, association,
partnership, limited liability company or other business entity of which 50% or
more of the Voting Stock is at the time of determination owned or controlled,
directly or indirectly, by such person or by one or more of the other
subsidiaries of that person (or a combination thereof); provided that with respect to any such
corporation, association, partnership, limited liability company or other
business entity of which no more than 50% of the total Voting Stock is so owned
or controlled, then such corporation, association, partnership, limited
liability company or other business entity shall not be deemed to be a
subsidiary of such person unless such person has the power to direct the
policies or management of such corporation, association, partnership, limited
liability company or other business entity.

 

“Subsidiary” means any subsidiary of the Company.

 

“Sunset” means Sunset Station, Inc.

 

“Texas” means Texas Station, LLC.

 

“TIA” means the Trust Indenture Act of 1939 (15 U.S. Code §§
77aaa-77bbbb) as in effect on the date on which this Indenture is first
qualified under the TIA, except as provided in Section 9.03.

 

“Transfer Restricted Securities” shall have
the meaning assigned to such term in the Registration Rights Agreement.

 

“Trustee” means the person named as such above until a
successor replaces it in accordance with the applicable provisions of this
Indenture, and thereafter means the successor.

 

13

 

“Trust Officer” means the Chairman of the Board, the
President or any other officer of the Trustee assigned by the Trustee to
administer its corporate trust matters.

 

“Unrestricted Certificated Note” means one
or more Certificated Notes that do not bear and are not required to bear the
Private Placement Legend.

 

“Unrestricted Global Note” means a permanent
Global Note in the form of Exhibit
A attached hereto that bears the Global Note Legend and that has the “Schedule
of Exchanges of Interests in the Global Note” attached thereto, and that is
deposited with or on behalf of and registered in the name of the Depository,
but does not bear the Private Placement Legend.

 

“Unrestricted Subsidiary” means any
Subsidiary (other than Palace, Boulder, Texas, Sunset, Santa Fe, Fiesta, Fiesta
Holdings, Lake Mead, Lake Mead Holdings or any successor to any of them) that
at the time of determination shall be designated by the Board of Directors of
the Company as an Unrestricted Subsidiary of the Company by a Board Resolution
and any Subsidiary of an Unrestricted Subsidiary, but only to the extent and so
long as such Subsidiary (and any Subsidiary of such Subsidiary): (a) has no
Indebtedness other than Qualified Non-Recourse Debt;  and (b) has not guaranteed or otherwise
directly or indirectly provided credit support for any Indebtedness of the
Company or any of its Restricted Subsidiaries; provided, however, that the
Company or any of its Restricted Subsidiaries may execute a Completion
Guarantee and Keep-Well Agreement for an Unrestricted Subsidiary whose sole
purpose is to develop, construct and operate a new gaming facility, and the
execution and performance (if such performance is permitted under Section 4.05)
of such Completion Guarantee and Keep-Well Agreement shall not prevent a
Subsidiary from becoming or remaining an Unrestricted Subsidiary. Any such
designation by the Board of Directors shall be evidenced to the Trustee by
filing with the Trustee a certified copy of the Board Resolution giving effect
to such designation and an Officers’ Certificate certifying that such
designation complied with the foregoing conditions. If, at any time, any
Unrestricted Subsidiary would fail to meet the foregoing requirements as an
Unrestricted Subsidiary, it shall thereafter cease to be an Unrestricted
Subsidiary for purposes of the Indenture and any Indebtedness of such
Subsidiary shall be deemed to be incurred by a Restricted Subsidiary of the
Company as of such date (and, if such Indebtedness is not permitted to be
incurred as of such date under Section 4.05, the Company shall be in Default of
such section). The Board of Directors of the Company may at any time designate
any Unrestricted Subsidiary to be a Restricted Subsidiary; provided that such
designation shall be deemed to be an incurrence of Indebtedness by a Restricted
Subsidiary of the Company of any outstanding Indebtedness of such Unrestricted
Subsidiary and such designation shall only be permitted if no Default or Event
of Default would be in existence following such designation.

 

“U.S. person” shall have the meaning
assigned to such term in Regulation S.

 

“Voting Stock” means any class of Capital Stock of any person
then outstanding normally entitled (without regard to the occurrence of any
contingency) to vote in the elections of directors, managers, managing partners
or trustees.

 

14

 

Section 1.02.          Other
Definitions.

 

	
  Term

  	
   

  	
  Defined in Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Bankruptcy Law”

  	
   

  	
  6.01

  	
   

  	
   

  
	
  “Custodian”

  	
   

  	
  6.01

  	
   

  	
   

  
	
  “DTC”

  	
   

  	
  2.03

  	
   

  	
   

  
	
  “Event of
  Default”

  	
   

  	
  6.01

  	
   

  	
   

  
	
  “Legal Holiday”

  	
   

  	
  11.07

  	
   

  	
   

  
	
  “Paying Agent”

  	
   

  	
  2.03

  	
   

  	
   

  
	
  “Payment
  Blockage Period”

  	
   

  	
  10.03

  	
   

  	
   

  
	
  “Registrar”

  	
   

  	
  2.03

  	
   

  	
   

  
	
  “Repurchase
  Date”

  	
   

  	
  4.11

  	
   

  	
   

  
	
  “Repurchase
  Offer”

  	
   

  	
  4.11

  	
   

  	
   

  
	
  “Repurchase
  Price”

  	
   

  	
  4.11

  	
   

  	
   

  
	
  “U.S. Government
  Obligations”

  	
   

  	
  8.01

  	
   

  	
   

  

 

Section 1.03.          Incorporation
by Reference of Trust Indenture Act.

 

Whenever
this Indenture refers to a provision of the TIA, the provision is incorporated
by reference in and made a part of this Indenture.

 

The
following TIA terms used in this Indenture have the following meanings:

 

“indenture securities” means the Notes;

 

“indenture security holder” means a Holder of a Note;

 

“indenture to be qualified” means this Indenture;

 

“indenture trustee” or “institutional
trustee” means the Trustee;

 

“obligor” on the Notes means the Company and any other
obligor upon the Notes.

 

All
other terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by SEC rule under the TIA and not
otherwise defined herein have the meanings assigned to them therein.

 

Section 1.04.          Rules
of Construction.

 

Unless
the context otherwise requires:

 

(1)           a
term has the meaning assigned to it;

 

(2)           an
accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

 

15

 

(3)           “or”
is not exclusive;

 

(4)           words
in the singular include the plural, and in the plural include the singular; and

 

(5)           provisions
apply to successive events and transactions.

 

ARTICLE 2.

THE NOTES

 

Section 2.01.          Form
and Dating.

 

The
Notes and the Trustee’s certificate of authentication shall be substantially in
the form set forth in Exhibit A or Exhibit B hereto. The Notes may have
notations, legends or endorsements required by law, stock exchange rules,
agreements to which the Company is subject, or usage, as designated by the
Company. Each Note shall be dated the date of its authentication. The Notes
shall be in denominations of $1,000 and integral multiples thereof.

 

The
terms and provisions contained in the Notes shall constitute, and are hereby
expressly made, a part of this Indenture and the Company and the Trustee, by
their execution and delivery of this Indenture expressly agree to such terms
and provisions and to be bound thereby. However, to the extent any provision of
any Note conflicts with the express provisions of this Indenture, the
provisions of this Indenture shall govern and be controlling.

 

Notes
issued in global form shall be substantially in the form set forth in Exhibit A
or B attached hereto (including the Global Note Legend and the “Schedule of
Exchanges in the Global Note” attached thereto). Notes issued in definitive
form shall be substantially in the form of Exhibit A attached hereto (but
without the Global Note Legend and without the “Schedule of Exchanges of
Interests in the Global Note” attached thereto). Each Global Note shall
represent such of the outstanding Notes as shall be specified therein and each
shall provide that it shall represent the aggregate principal amount of
outstanding Notes from time to time endorsed thereon and that the aggregate
principal amount of outstanding Notes represented thereby may from time to time
be reduced or increased, as appropriate, to reflect exchanges and redemptions.
Any endorsement of a Global Note to reflect the amount of any increase or
decrease in the aggregate principal amount of outstanding Notes represented
thereby shall be made by the Trustee or the Note Custodian, at the direction of
the Trustee, in accordance with instructions given by the Holder thereof as
required by Section 2.06 hereof. Notes offered and sold to QIBs shall be issued
initially in the form of one or more Global Notes, which shall be deposited
with the Trustee, as custodian for DTC, in New York, New York, and registered
in the name of DTC or its nominee, in each case for credit to the accounts of
Participants.

 

Notes
offered and sold in reliance on Regulation S shall be issued initially in the
form of the Regulation S Temporary Global Note, which shall be deposited on
behalf of the purchasers of the Notes represented thereby with the Trustee, at
its New York office, as custodian for the Depository, and registered in the
name of the Depository or the nominee of the Depository for the accounts of
designated agents holding on behalf of Euroclear or Clearstream, duly executed
by the Company and authenticated by the Trustee as hereinafter provided. Within
a reasonable time after expiration of the Restricted Period the Regulation S
Temporary Global

 

16

 

Notes
will be exchanged for the Regulation S Permanent Global Notes upon the receipt
by the Trustee of (i) a written certificate from the Depository, together with
copies of certificates from Euroclear and Clearstream certifying that they have
received certification of non-United States beneficial ownership of 100% of the
aggregate principal amount of the Regulation S Temporary Global Note (except to
the extent of any beneficial owners thereof who acquired an interest therein
during the Restricted Period pursuant to another exemption from registration
under the Securities Act and who will take delivery of a beneficial ownership
interest in a Rule 144A Global Note or a Restricted Global Note bearing a
Private Placement Legend, all as contemplated by Section 2.06(a)(ii) hereof),
and (ii) an Officers’ Certificate from the Company. Following such period,
beneficial interests in the Regulation S Temporary Global Note shall be
exchanged for beneficial interests in Regulation S Permanent Global Notes
pursuant to the Applicable Procedures. Simultaneously with the authentication
of Regulation S Permanent Global Notes, the Trustee shall cancel the Regulation
S Temporary Global Note. The aggregate principal amount of the Regulation S
Temporary Global Note and the Regulation S Permanent Global Notes may from time
to time be increased or decreased by adjustments made on the records of the
Trustee and the Depository or its nominee, as the case may be, in connection
with transfers of interest as hereinafter provided.

 

(a)           The provisions of the “Operating Procedures of the Euroclear
System” and “Terms and Conditions Governing Use of Euroclear” and the “General
Terms and Conditions of Clearstream” and “Customer Handbook” of Clearstream
shall be applicable to transfers of beneficial interests in the Regulation S
Temporary Global Note and the Regulation S Permanent Global Note that are held
by the agent members through Euroclear or Clearstream.

 

Section 2.02.          Execution
and Authentication.

 

One
Officer of the Company shall sign the Notes for the Company by manual or
facsimile signature, which signature shall be attested to by any other person.
Such signatures and attestation may be in counterparts, all of which taken
together shall constitute one and the same instrument.

 

If an
Officer whose signature is on a Note no longer holds that office at the time
such Note is authenticated, the Note shall nevertheless be valid.

 

A Note
shall not be valid until authenticated by the manual signature of the Trustee.
The signature shall be conclusive evidence that the Note has been authenticated
under this Indenture.

 

The
Trustee shall, upon a written order of the Company signed by two Officers,
authenticate the Series A Notes for original issue in an aggregate principal
amount as shall be specified in such written order and shall authenticate the
Series B Notes for original issue in an aggregate principal amount as shall be
specified in such written order; provided that the Series B Notes shall be
issuable only upon the valid surrender for cancellation of Series A Notes of a
like aggregate principal amount. The aggregate principal amount of Notes that
may be issued under the indenture shall be unlimited.

 

17

 

The
Trustee may appoint an authenticating agent acceptable to the Company to
authenticate Notes. An authenticating agent may authenticate Notes whenever the
Trustee may do so. Each reference in this Indenture to authentication by the
Trustee includes authentication by such agent. An authenticating agent has the
same rights as an Agent to deal with Holders or an Affiliate of the Company.

 

Notes
shall be issuable only in fully registered form, without coupons, in
denominations of $1,000 and integral multiples thereof.

 

Section 2.03.          Registrar;
Paying Agent; Depository; Note Custodian.

 

The
Company shall maintain an office or agency where Notes may be presented for
registration of transfer or for exchange (“Registrar”) and an office or agency
where Notes are to be presented for payment (“Paying Agent”). The Registrar
shall keep a register of the Notes and of their transfer and exchange. The
Company may appoint one or more co-registrars and one or more additional Paying
Agents. The term “Registrar” includes any co-registrar and the term “Paying
Agent” includes any additional paying agent. The Company may change any Paying
Agent or Registrar without notice to any Holder. The Company shall notify the
Trustee in writing of the name and address of any Agent not a party to this
Indenture. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company may act
as Paying Agent or Registrar.

 

The
Company initially appoints The Depository Trust Company (“DTC”) to act as
Depository with respect to the Global Notes.

 

The
Company initially appoints Deutsche Bank National Trust Company to act as the
Registrar and Paying Agent and to act as Note Custodian with respect to the
Global Notes. The Company initially appoints Deutsche Bank National Trust
Company to act as the Registrar and Paying Agent with respect to the
Certificated Notes.

 

Section 2.04.          Paying
Agent to Hold Money in Trust.

 

The
Company shall require each Paying Agent other than the Trustee to agree in
writing that the Paying Agent will hold in trust for the benefit of Noteholders
or the Trustee all money held by the Paying Agent for the payment of principal,
interest or Liquidated Damages, if any, on the Notes (whether such money has
been paid to it by the Company or any other obligor on the Notes), and will
notify the Trustee of any default by the Company (or any other obligor on the
Notes) in making any such payment. While any such default continues, the
Trustee may require a Paying Agent to pay all money held by it to the Trustee.
The Company at any time may require a Paying Agent to pay all money held by it
to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other
than the Company or a subsidiary) shall have no further liability for the
money. If the Company or a subsidiary acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of the Noteholders all money
held by it as Paying Agent. Upon
any bankruptcy or reorganization proceedings relating to the Company, the
Trustee or its agent shall serve as Paying Agent for the Notes.

 

18

 

Section 2.05.          Noteholder
Lists.

 

The
Trustee shall preserve in as current a form as is reasonably practicable the
most recent list available to it of the names and addresses of Noteholders. If
the Trustee is not the Registrar, the Company and any other obligor shall
furnish to the Trustee at least seven Business Days before each interest
payment date and at such other times as the Trustee may request in writing, but
in any event at least semi-annually, a list in such form and as of such date as
the Trustee may reasonably require of the names and addresses of Noteholders.

 

Section 2.06.          Transfer
and Exchange.

 

(a)           Transfer and Exchange of Global Notes. A Global Note may not be transferred as
a whole except by the Depository to a nominee of the Depository, by a nominee
of the Depository to the Depository or to another nominee of the Depository or
any such nominee to a successor Depository or a nominee of such successor
Depository. All Global Notes will be exchanged by the Company for Certificated
Notes if (i) the Company delivers to the Trustee notice from the Depository
that it is unwilling or unable to continue to act as Depository or that it is
no longer a clearing agency registered under the Exchange Act and, in either
case, a successor Depository is not appointed by the Company within 90 days
after the date of such notice from the Depository, (ii)  the Company in its sole discretion determines
that the Global Notes (in whole but not in part) should be exchanged for
Certificated Notes and delivers a written notice to such effect to the Trustee
or (iii) there shall have occurred and be continuing an Event of Default with
respect to the Notes and the Trustee has received a request from the Depository
to issue Certificated Notes; provided that in no event shall the
Regulation S Temporary Global Note be exchanged by the Company for Certificated
Notes prior to (x) the expiration of the Restricted Period and (y) the receipt
by the Registrar of any certificates determined by the Company to be required
pursuant to Rule 903 under the Securities Act. Upon the occurrence of either of
the preceding events in (i) or (ii) above, the Company will notify the Trustee
in writing that Certificated Notes shall be issued in such
names as the Depository and the Participants shall instruct the Trustee. Global
Notes also may be exchanged or replaced, in whole or in part, as provided in
Sections 2.7 and 2.11 hereof. Every Note authenticated and delivered in
exchange for, or in lieu of, a Global Note or any portion thereof, pursuant to
Section 2.07 or 2.11 hereof, shall be authenticated and delivered in the form
of, and shall be, a Global Note. A Global Note may not be exchanged for another
Note other than as provided in this Section 2.06(a), however, beneficial
interests in a Global Note may be transferred and exchanged as provided in
Section 2.06(b), (c) or (f) hereof.

 

(b)           Transfer and Exchange of Beneficial
Interests in the Global Notes. The transfer and exchange of beneficial interests in
the Global Notes shall be effected through the Depository, in accordance with
the provisions of this Indenture and the Applicable Procedures. Beneficial
interests in the Restricted Global Notes shall be subject to restrictions on
transfer comparable to those set forth herein to the extent required by the
Securities Act. Transfers of beneficial interests in the Global Notes also
shall require compliance with either subparagraph (i) or (ii) below, as
applicable, as well as subparagraph (iii) or (iv), as applicable:

 

(i)            Transfer of Beneficial Interests in the
Same Global Note.
Beneficial interests in any Restricted Global Note may be transferred to persons who
take

 

19

 

delivery thereof in the form of a beneficial interest
in the same Restricted Global Note in accordance with the transfer restrictions
set forth in the Private Placement Legend; provided, however, that prior to the
expiration of the Restricted Period transfers of beneficial interests in the
Regulation S Temporary Global Note may not be made to a U.S. person or for the
account or benefit of a U.S. person (other than an Initial Purchaser). Beneficial
interests in any Unrestricted Global Note may be transferred only to persons
who take delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note. No written orders or instructions shall be required
to be delivered to the Registrar to effect the transfers described in this
Section 2.06(b)(i).

 

(ii)           All Other Transfers and Exchanges of
Beneficial Interests in Global Notes. In connection with all transfers and exchanges of
beneficial interests (other than a transfer of a beneficial interest in a
Global Note to a person who takes delivery thereof in the form of a beneficial
interest in the same Global Note), the transferor of such beneficial interest
must deliver to the Registrar either (1)(A) a written order from a Participant
or an Indirect Participant given to the Depository in accordance with the
Applicable Procedures directing the Depository to credit or cause to be
credited a beneficial interest in another Global Note in an amount equal to the
beneficial interest to be transferred or exchanged and (B) instructions given
in accordance with the Applicable Procedures containing information regarding
the Participant account to be credited with such increase or (2)(A) a written
order from a Participant or an Indirect Participant given to the Depository in
accordance with the Applicable Procedures directing the Depository to cause to
be issued a Certificated Note in an amount equal to the beneficial interest to
be transferred or exchanged and (B) instructions given by the Depository to the
Registrar containing information regarding the person in whose name such
Certificated Note shall be registered to effect the transfer or exchange
referred to in (1) above; provided that in no event shall Certificated
Notes be issued upon the transfer or exchange of beneficial interests in the
Regulation S Temporary Global Note prior to (x) the expiration of the
Restricted Period and (y) the receipt by the Registrar of any certificates
determined by the Company to be required pursuant to Rule 903 under the
Securities Act; provided, further, that in no event shall an
Indirect Participant who holds a beneficial interest in the Regulation S
Temporary Global Note transfer or exchange such interest to a U.S. person who
takes delivery in the form of an interest in Rule 144A Global Notes prior to
the satisfaction of clauses (x) and (y) in the immediately preceding proviso.
Upon an Exchange Offer by the Company in accordance with Section 2.06(f)
hereof, the requirements of this Section 2.06(b)(ii) shall be deemed to have
been satisfied upon receipt by the Registrar of the instructions contained in
the Letter of Transmittal delivered by the Holder of such beneficial interests
in the Restricted Global Notes. Upon satisfaction of all of the requirements
for transfer or exchange of beneficial interests in Global Notes contained in
this Indenture, the Notes and otherwise applicable under the Securities Act,
the Trustee shall adjust the principal amount of the relevant Global Note or
Notes pursuant to Section 2.06(h) hereof.

 

(iii)          Transfer of Beneficial Interests to
Another Restricted Global Note. A beneficial interest in any Restricted Global Note may be
transferred to a person who takes delivery thereof in the form of a beneficial
interest in another Restricted Global

 

20

 

Note if the transfer complies with the requirements
of clause (ii) above and the Registrar receives the following:

 

(A)          if the transferee will take delivery in
the form of a beneficial interest in the Rule 144A Global Note, then the
transferor must deliver a certificate in the form of Exhibit C hereto, including the certifications
in item 1 thereof;

 

(B)           if the transferee will take delivery in
the form of a beneficial interest in the Regulation S Temporary Global Note or
the Regulation S Global Note, then the transferor must deliver a certificate in
the form of Exhibit C hereto, including the certifications in item 2
thereof; and

 

(C)           if the transferee will take delivery in
the form of a beneficial interest in the Restricted Global Note, then the
transferor must deliver a certificate in the form of Exhibit C hereto, including the certifications
required by item 3 thereof, if applicable.

 

(iv)          Transfer and Exchange of Beneficial
Interests in a Restricted Global Note for Beneficial Interests in the
Unrestricted Global Note. A beneficial interest in
any Restricted Global Note may be exchanged by any holder thereof for a
beneficial interest in an Unrestricted Global Note or transferred to a person
who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note if the exchange or transfer complies with the
requirements of clause (ii) above and:

 

(A)          such exchange or
transfer is effected pursuant to the Exchange Offer in accordance with the
Registration Rights Agreement and the holder of the beneficial interest to be
transferred, in the case of an exchange, or the transferee, in the case of a
transfer, is not (1) a broker-dealer, (2) a person participating in the
distribution of the Series B Notes or (3) a person who is an affiliate (as
defined in Rule 144) of the Company;

 

(B)           any such transfer is effected pursuant to
the Shelf Registration Statement in accordance with the Registration Rights
Agreement;

 

(C)           any such transfer is effected by a
Restricted Broker-Dealer pursuant to the Exchange Offer Registration Statement
in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

(1)           if the holder of such beneficial interest
in a Restricted Global Note proposes to exchange such beneficial interest for a
beneficial interest in an Unrestricted Global Note, a certificate from such
holder in the form of Exhibit D hereto, including the certifications in item 1(a)
thereof;

 

(2)           if the holder of such beneficial interest
in a Restricted Global Note proposes to transfer such beneficial interest to a
person who shall take delivery thereof in the form of a beneficial interest in
an

 

21

 

Unrestricted
Global Note, a certificate from such holder in the form of Exhibit C hereto, including the certifications
in item 4 thereof; and

 

(3)           in each such case set forth in this
subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the
Registrar to the effect that such exchange or transfer is in compliance with
the Securities Act and that the restrictions on transfer contained herein and
in the Private Placement Legend are not required in order to maintain
compliance with the Securities Act.

 

If any
such transfer is effected pursuant to subparagraph (B) or (D) above at a time
when an Unrestricted Global Note has not yet been issued, the Company shall
issue and, upon receipt of an authentication order in accordance with Section
2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of
beneficial interests transferred pursuant to subparagraph (B) or (D) above.

 

Beneficial
interests in an Unrestricted Global Note cannot be exchanged for, or
transferred to persons who take delivery thereof in the form of, a beneficial
interest in a Restricted Global Note.

 

(c)           Transfer or Exchange of Beneficial
Interests for Certificated Notes.

 

(i)            If any holder of a beneficial interest in
a Restricted Global Note proposes to exchange such beneficial interest for a
Certificated Note or to transfer such beneficial interest to a person who takes
delivery thereof in the form of a Certificated Note, then, upon receipt by the
Registrar of the following documentation:

 

(A)          if the holder of such beneficial interest
in a Restricted Global Note proposes to exchange such beneficial interest for a
Certificated Note, a certificate from such holder in the form of Exhibit D hereto, including the certifications
in item 2(a) thereof;

 

(B)           if such beneficial interest is being
transferred to a QIB in accordance with Rule 144A under the Securities Act, a
certificate to the effect set forth in Exhibit C hereto, including the certifications
in item 1 thereof;

 

(C)           if such beneficial interest is being
transferred to a Non-U.S. person in an offshore transaction in accordance with
Rule 903 or Rule 904 under the Securities Act, a certificate to the effect set
forth in Exhibit C
hereto, including the certifications in item 2 thereof;

 

(D)          if such beneficial interest is being
transferred pursuant to an exemption from the registration requirements of the
Securities Act in accordance with Rule 144 under the Securities Act, a
certificate to the effect set forth in Exhibit C hereto, including the certifications
in item 3(a) thereof;

 

(E)           if such beneficial interest is being
transferred to the Company or any of its Subsidiaries, a certificate to the
effect set forth in Exhibit C hereto, including the certifications in item 3(b)
thereof; or

 

22

 

(F)           if such beneficial interest is being
transferred pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in Exhibit C hereto, including the certifications
in item 3(c) thereof,

 

the Trustee shall cause
the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company shall execute
and the Trustee shall authenticate and deliver to the person designated in the
instructions a Certificated Note in the appropriate principal amount. Any
Certificated Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.06(c) shall be registered in such name
or names and in such authorized denomination or denominations as the holder of
such beneficial interest shall instruct the Registrar through instructions from
the Depository and the Participant or Indirect Participant. The Trustee shall
deliver such Certificated Notes to the persons in whose names such Notes are so
registered. Any Certificated Note issued in exchange for a beneficial interest
in a Restricted Global Note pursuant to this Section 2.06(c)(i) shall bear the
Private Placement Legend and shall be subject to all restrictions on transfer
contained therein.

 

(ii)           Notwithstanding Sections 2.06(c)(i)(A)
and (C) hereof, a beneficial interest in the Regulation S Temporary Global Note
may not be (A) exchanged for a Certificated Note prior to (x) the expiration of
the Restricted Period and (y) the receipt by the Registrar of any certificates
determined by the Company to be required pursuant to Rule 903(c)(3)(B) under
the Securities Act or (B) transferred to a person who takes delivery thereof in
the form of a Certificated Note prior to the conditions set forth in clause (A)
above or unless the transfer is pursuant to an exemption from the registration
requirements of the Securities Act other than Rule 903 or Rule 904.

 

(iii)          Notwithstanding 2.6(c)(i) hereof, a
holder of a beneficial interest in a Restricted Global Note may exchange such
beneficial interest for an Unrestricted Certificated Note or may transfer such
beneficial interest to a person who takes delivery thereof in the form of an
Unrestricted Certificated Note only if:

 

(A)          such exchange or transfer is effected
pursuant to the Exchange Offer in accordance with the Registration Rights
Agreement and the holder of such beneficial interest, in the case of an
exchange, or the transferee, in the case of a transfer, is not (1) a
broker-dealer, (2)  a person
participating in the distribution of the Series B Notes or (3) a person who is
an affiliate (as defined in Rule 144) of the Company;

 

(B)           any such transfer is effected pursuant to
the Shelf Registration Statement in accordance with the Registration Rights
Agreement;

 

(C)           any such transfer is effected by a
Restricted Broker-Dealer pursuant to the Exchange Offer Registration Statement
in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

23

 

(1)           if the holder of such beneficial interest
in a Restricted Global Note proposes to exchange such beneficial interest for a
Certificated Note that does not bear the Private Placement Legend, a
certificate from such holder in the form of Exhibit D hereto, including the certifications
in item 1(b) thereof;

 

(2)           if the holder of such beneficial interest
in a Restricted Global Note proposes to transfer such beneficial interest to a
person who shall take delivery thereof in the form of a Certificated Note that
does not bear the Private Placement Legend, a certificate from such holder in
the form of Exhibit C hereto, including the certifications in item 4 thereof;
and

 

(3)           in each such case set forth in this
subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the
Company, to the effect that such exchange or transfer is in compliance with the
Securities Act and that the restrictions on transfer contained herein and in
the Private Placement Legend are not required in order to maintain compliance
with the Securities Act or any Gaming

 

(iv)          If any holder of a beneficial interest in
an Unrestricted Global Note proposes to exchange such beneficial interest for a
Certificated Note or to transfer such beneficial interest to a person who takes
delivery thereof in the form of a Certificated Note, then, upon satisfaction of
the conditions set forth in Section 2.06(b)(ii) hereof, the Trustee shall cause
the aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.06(h) hereof, and the Company shall execute
and the Trustee shall authenticate and deliver to the person designated in the
instructions a Certificated Note in the appropriate principal amount. Any
Certificated Note issued in exchange for a beneficial interest pursuant to this
Section 2.06(c)(iv) shall be registered in such name or names and in such
authorized denomination or denominations as the holder of such beneficial
interest shall instruct the Registrar through instructions from the Depository
and the Participant or Indirect Participant. The Trustee shall deliver such
Certificated Notes to the persons in whose names such Notes are so registered.
Any Certificated Note issued in exchange for a beneficial interest pursuant to
this Section 2.06(c)(iv) shall not bear the Private Placement Legend. A
beneficial interest in an Unrestricted Global Note cannot be exchanged for a
Certificated Note bearing the Private Placement Legend or transferred to a
person who takes delivery thereof in the form of a Certificated Note bearing
the Private Placement Legend.

 

(d)           Transfer and Exchange of Certificated
Notes for Beneficial Interests.

 

(i)            If any Holder of a Restricted
Certificated Note proposes to exchange such Note for a beneficial interest in a
Restricted Global Note or to transfer such Certificated Notes to a person who
takes delivery thereof in the form of a beneficial interest in a Restricted
Global Note, then, upon receipt by the Registrar of the following
documentation:

 

24

 

(A)          if the Holder of such Restricted
Certificated Note proposes to exchange such Note for a beneficial interest in a
Restricted Global Note, a certificate from such Holder in the form of Exhibit D hereto, including the certifications
in item 2(b) thereof;

 

(B)           if such Certificated Note is being
transferred to a QIB in accordance with Rule 144A under the Securities Act, a
certificate to the effect set forth in Exhibit C hereto, including the certifications
in item 1 thereof;

 

(C)           if such Certificated Note is being
transferred to a Non-U.S. person in an offshore transaction in accordance with
Rule 903 or Rule 904 under the Securities Act, a certificate to the effect set
forth in Exhibit C
hereto, including the certifications in item 2 thereof;

 

(D)          if such Certificated Note is being
transferred pursuant to an exemption from the registration requirements of the
Securities Act in accordance with Rule 144 under the Securities Act, a
certificate to the effect set forth in Exhibit C hereto, including the certifications
in item 3(a) thereof;

 

(E)           if such Certificated Note is being
transferred to the Company or any of its Subsidiaries, a certificate to the
effect set forth in Exhibit C hereto, including the certifications in item 3(b)
thereof; or

 

(F)           if such Certificated Note is being
transferred pursuant to an effective registration statement under the
Securities Act, a certificate to the effect set forth in Exhibit C hereto, including the certifications
in item 3(c) thereof,

 

the Trustee shall cancel
the Certificated Note, increase or cause to be increased the aggregate
principal amount of, in the case of clause (A) above, the appropriate Restricted
Global Note, in the case of clause (B) above, the Rule 144A Global Note, in the
case of clause (C) above, the Regulation S Global Note, and in all other cases,
the Restricted Global Note.

 

(ii)           A Holder of a Restricted Certificated
Note may exchange such Note for a beneficial interest in an Unrestricted Global
Note or transfer such Restricted Certificated Note to a person who takes
delivery thereof in the form of a beneficial interest in an Unrestricted Global
Note only if:

 

(A)          such exchange or transfer is effected
pursuant to the Exchange Offer in accordance with the Registration Rights
Agreement and the Holder, in the case of an exchange, or the transferee, in the
case of a transfer, is not (1) a broker-dealer, (2) a person participating in
the distribution of the Series B Notes or (3) 
a person who is an affiliate (as defined in Rule 144) of the Company;

 

(B)           any such transfer is effected pursuant to
the Shelf Registration Statement in accordance with the Registration Rights
Agreement;

 

25

 

(C)           any such transfer is effected by a
Restricted Broker-Dealer pursuant to the Exchange Offer Registration Statement
in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

(1)           if the Holder of such Certificated Notes
proposes to exchange such Notes for a beneficial interest in the Unrestricted
Global Note, a certificate from such Holder in the form of Exhibit D hereto, including the certifications
in Item 1(c) thereof;

 

(2)           if the Holder of such Certificated Notes
proposes to transfer such Notes to a person who shall take delivery thereof in
the form of a beneficial interest in the Unrestricted Global Note, a
certificate from such Holder in the form of Exhibit C hereto, including the certifications
in item 4 thereof, and

 

(3)           in each such case set forth in this
subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the
Company to the effect that such exchange or transfer is in compliance with the
Securities Act, that the restrictions on transfer contained herein and in the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act, and such Certificated Notes are being exchanged or
transferred in compliance with any applicable blue sky securities laws of any
State of the United States.

 

Upon satisfaction of the
conditions of any of the subparagraphs in this Section 2.06(d)(ii), the Trustee
shall cancel the Certificated Notes and increase or cause to be increased the
aggregate principal amount of the Unrestricted Global Note.

 

(iii)          A Holder of an Unrestricted Certificated
Note may exchange such Note for a beneficial interest in an Unrestricted Global
Note or transfer such Certificated Notes to a person who takes delivery thereof
in the form of a beneficial interest in an Unrestricted Global Note at any
time. Upon receipt of a request for such an exchange or transfer, the Trustee
shall cancel the applicable Unrestricted Certificated Note and increase or
cause to be increased the aggregate principal amount of one of the Unrestricted
Global Notes.

 

If any
such exchange or transfer from a Certificated Note to a beneficial interest is
effected pursuant to subparagraphs (ii)(B), (ii)(D) or (iii) above at a time
when an Unrestricted Global Note has not yet been issued, the Company shall
issue and, upon receipt of an authentication order in accordance with Section
2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global
Notes in an aggregate principal amount equal to the principal amount of
beneficial interests transferred pursuant to subparagraphs (ii)(B), (ii)(D) or
(iii) above.

 

(e)           Transfer and Exchange of Certificated
Notes for Certificated Notes. Upon request by a Holder of Certificated Notes and
such Holder’s compliance with the provisions of this Section 2.06(e), the
Registrar shall register the transfer or exchange of Certificated Notes. Prior
to such registration of transfer or exchange, the requesting Holder shall
present on surrender to the Registrar the Certificated Notes duly endorsed or
accompanied by a written

 

26

 

instruction of transfer in form satisfactory to the Registrar duly
executed by such Holder or by his attorney, duly authorized in writing. In addition,
the requesting Holder shall provide any additional certifications, documents
and information, as applicable, pursuant to the provisions of this Section
2.06(e).

 

(i)            Restricted Certificated Notes may be
transferred to and registered in the name of persons who take delivery thereof
if the Registrar receives the following:

 

(A)          if the transfer will be made pursuant to
Rule 144A under the Securities Act, then the transferor must deliver a
certificate in the form of Exhibit C hereto, including the certifications in item 1
thereof;

 

(B)           if the transfer will be made pursuant to
Rule 903 or Rule 904 under the Securities Act, then the transferor must deliver
a certificate in the form of Exhibit C hereto, including the certifications
in item 2 thereof; and

 

(C)           if the transfer will be made pursuant to
any other exemption from the registration requirements of the Securities Act,
then the transferor must deliver a certificate in the form of Exhibit C hereto, including the certifications,
required by item 3 thereof.

 

(ii)           Any Restricted Certificated Note may be
exchanged by the Holder thereof for an Unrestricted Certificated Note or
transferred to a person or persons who take delivery thereof in the form of an
Unrestricted Certificated Note if:

 

(A)          such exchange or transfer is effected
pursuant to the Exchange Offer in accordance with the Registration Rights
Agreement and the Holder, in the case of an exchange, or the transferee, in the
case of a transfer, is not (1) a broker-dealer, (2) a person participating in the
distribution of the Series B Notes or (3) a person who is an affiliate (as
defined in Rule 144) of the Company;

 

(B)           any such transfer is effected pursuant to
the Shelf Registration Statement in accordance with the Registration Rights
Agreement;

 

(C)           any such transfer is effected by a
Restricted Broker-Dealer pursuant to the Exchange Offer Registration Statement
in accordance with the Registration Rights Agreement; or

 

(D)          the Registrar receives the following:

 

(1)           if the Holder of such Restricted Certificated
Notes proposes to exchange such Notes for an Unrestricted Certificated Note, a
certificate from such Holder in the form of Exhibit D hereto, including the certifications
in item 1 (a) thereof,

 

(2)           if the Holder of such Restricted
Certificated Notes proposes to transfer such Notes to a person who shall take
delivery thereof in the

 

27

 

form
of an Unrestricted Certificated Note, a certificate from such Holder in the
form of Exhibit C
hereto, including the certifications in item 4 thereof, and

 

(3)           in each such case set forth in this
subparagraph (D), an Opinion of Counsel in form reasonably acceptable to the
Company to the effect that such exchange or transfer is in compliance with the
Securities Act, that the restrictions on transfer contained herein and in the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act, and such Restricted Certificated Note is being exchanged or
transferred in compliance with any applicable blue sky securities laws of any
State of the United States.

 

(iii)          A Holder of Unrestricted Certificated
Notes may transfer such Notes to a person who takes delivery thereof in the
form of an Unrestricted Certificated Note. Upon receipt of a request for such a
transfer, the Registrar shall register the Unrestricted Certificated Notes
pursuant to the instructions from the Holder thereof. Unrestricted
Certificated Notes cannot be exchanged for or transferred to persons who take
delivery thereof in the form of a Restricted Certificated Note.

 

(f)            Exchange Offer. Upon the occurrence of the Exchange
Offer in accordance with the Registration Rights Agreement, the Company shall
issue and, upon receipt of an authentication order in accordance with Section 2.02
and an Officers’ Certificate, the Trustee shall authenticate (i) one or more
Unrestricted Global Notes in an aggregate principal amount equal to the
principal amount of the beneficial interests in the Restricted Global Notes
tendered for acceptance by persons that are not (x) broker-dealers, (y) persons
participating in the distribution of the Series B Notes or (z) persons who are
affiliates (as defined in Rule 144) of the Company and accepted for exchange in
the Exchange Offer and (ii) Certificated Notes in an aggregate principal amount
equal to the principal amount of the Restricted Certificated Notes tendered for
acceptance by persons that are not (x) broker-dealers, (y) persons
participating in the distribution of the Series B Notes or (z) persons who are
affiliates (as defined in Rule 144) of the Company and accepted for exchange in
the Exchange Offer. Concurrent with the issuance of such Notes, the Trustee
shall cause the aggregate principal amount of the applicable Restricted Global
Notes to be reduced accordingly, and the Company shall execute and the Trustee
shall authenticate and deliver to the persons designated by the Holders of
Certificated Notes so accepted Certificated Notes in the appropriate principal
amount.

 

Concurrent
with the issuance of the Series B Notes in the Exchange Offer, the Company
shall deliver an Opinion of Counsel to the Trustee to the effect that the
Series B Notes have been duly authorized and, when executed and authenticated
in accordance with the provisions of this Indenture and delivered in exchange
for Series A Notes in accordance with this Indenture and the Exchange Offer,
will be entitled to the benefits of this Indenture and will be valid and
binding obligations of the Company, enforceable in accordance with their terms
except as (x) the enforceability thereof may be limited by bankruptcy,
insolvency or similar laws affecting creditors’ rights generally and (y) rights
of acceleration and the availability of equitable remedies may be limited by
equitable principles of general applicability.

 

(g)           Legends. The following legends shall appear on the face of
all Global Notes and Certificated Notes issued under this Indenture unless
specifically stated otherwise in the applicable provisions of this Indenture.

 

28

 

(i)            Private Placement Legend.

 

(A)          Except as permitted by subparagraph (B)
below, each Global Note and each Certificated Note (and all Notes issued in
exchange therefor or substitution thereof) shall bear the legend in
substantially the following form:

 

“THE SECURITY (OR
ITS PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933
(THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD
OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE
EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY
NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION PROVIDED BY RULE 144A
THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT
OF THE COMPANY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED, ONLY (1) (A) INSIDE THE UNITED STATES TO A PERSON WHO THE SELLER
REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF
RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF
RULE 144A, OR IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT, OR PURSUANT
TO ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT
(AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), (B) TO THE
COMPANY, (C) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT OR (D) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (2) IN EACH
CASE, IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE
UNITED STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND
EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY
EVIDENCED HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.”

 

(B)           Notwithstanding the foregoing, any Global
Note or Certificated Note issued pursuant to subparagraphs (b)(iv), (c)(iii),
(c)(iv), (d)(ii), (d)(iii), (e)(ii), (e)(iii) or (f) to this Section 2.06 (and
all Notes issued in exchange therefor or substitution thereof) shall not bear
the Private Placement Legend.

 

(ii)           Global Note Legend. Each Global Note shall bear a legend in substantially
the following form:

 

UNLESS AND UNTIL
IT IS EXCHANGED IN WHOLE OR IN PART FOR A NOTE IN DEFINITIVE FORM, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE

 

29

 

DEPOSITORY OR BY A
NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER
STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR SUCH OTHER ENTITY AS MAY BE 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.

 

(iii)          Regulation S Temporary Global Note Legend. The Regulation S Temporary Global Note
shall bear a legend in substantially the following form:

 

“THE RIGHTS
ATTACHING TO THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND
PROCEDURES GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN
THE INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS
OF THIS REGULATION S TEMPORARY GLOBAL NOTE SHALL BE ENTITLED TO RECEIVE PAYMENT
OF INTEREST HEREON.”

 

(h)           Cancellation and/or Adjustment of Global
Notes. At such
time as all beneficial interests in a particular Global Note have been
exchanged for Certificated Notes or a particular Global Note has been redeemed,
repurchased or cancelled in whole and not in part, each such Global Note shall
be returned to or retained and cancelled by the Trustee in accordance with
Section 2.11 hereof. At any time prior to such cancellation, if any beneficial
interest in a Global Note is exchanged for or transferred to a person who will
take delivery thereof in the form of a beneficial interest in another Global
Note or for Certificated Notes, the principal amount of Notes represented by
such Global Note shall be reduced accordingly and an endorsement shall be made
on such Global Note, by the Trustee or by the Depository at the direction of
the Trustee, to reflect such reduction; and if the beneficial interest is being
exchanged for or transferred to a person who will take delivery thereof in the
form of a beneficial interest in another Global Note, such other Global Note
shall be increased accordingly and an endorsement shall be made on such Global
Note, by the Trustee or by the Depository at the direction of the Trustee, to
reflect such increase.

 

(i)            General Provisions Relating to Transfers
and Exchanges.

 

(i)            To permit registrations of transfers and
exchanges, the Company shall execute and the Trustee shall authenticate Global
Notes and Certificated Notes upon the Company’s order or at the Registrar’s
request.

 

30

 

(ii)           No service charge shall be made to a
holder of a beneficial interest in a Global Note or to a Holder of a
Certificated Note for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such
transfer taxes or similar governmental charge payable upon exchange or transfer
pursuant to Sections 2.10, 3.06, 4.11 and 9.05 hereof).

 

(iii)          The Registrar shall not be required (A)
to register the transfer of or to exchange Notes during a period beginning at
the opening of business 15 days before the day of mailing of notice of
redemption and ending at the close of business on the day of such mailing, (B)
to register the transfer of or to exchange any Note so selected for redemption
in whole or in part, except the unredeemed portion of any Note being redeemed
in part or (C) to register the transfer of or to exchange a Note between a
record date and the next succeeding Interest Payment Date.

 

(iv)          All Global Notes and Certificated Notes
issued upon any registration of transfer or exchange of Global Notes or
Certificated Notes shall be the valid obligations of the Company, evidencing
the same debt, and entitled to the same benefits under this Indenture, as the
Global Notes or Certificated Notes surrendered upon such registration of
transfer or exchange.

 

(v)           The Company shall not be required (1) to
issue, to register the transfer of or to exchange Notes during a period
beginning at the opening of business 15 days before the day of mailing of
notice of redemption and ending at the close of business on the day of such
mailing, (2) to register the transfer of or to exchange any Note so selected
for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part or (C) to register the transfer of or to exchange a Note
between a record date and the next succeeding Interest Payment Date.

 

(vi)          Prior to due presentment for the
registration of a transfer of any Note, the Trustee, any Agent and the Company
may deem and treat the person in whose name any Note is registered as the
absolute owner of such Note for the purpose of receiving payment of principal
of, premium, if any, Liquidated Damages, if any, and interest on such Notes and
for all other purposes, and none of the Trustee, any Agent or the Company shall
be affected by notice to the contrary.

 

(vii)         The Trustee shall authenticate Global
Notes and Certificated Notes in accordance with the provisions of Section 2.02
hereof.

 

(viii)        All certifications, certificates and
Opinions of Counsel required to be submitted to the Registrar pursuant to this
Section 2.06 to effect a transfer or exchange may be submitted by facsimile,
provided original copies are promptly sent to the Registrar.

 

(ix)           Each Holder of a Note agrees to indemnify
the Company and the Trustee against any liability that may result from the
transfer, exchange or assignment of

 

31

 

such
Holder’s Note in violation of any provision of this Indenture and/or applicable
United States federal or state securities law.

 

(x)            The Trustee shall have no obligation or
duty to monitor, determine or inquire as to compliance with any restrictions on
transfer imposed under this Indenture or under applicable law with respect to
any transfer of any interest in any Note (including any transfers between or
among Participants or beneficial owners of interests in any Global Note) other
than to require delivery of such certificates and other documentation or
evidence as are expressly required by, and to do so if and when expressly
required by the terms of, this Indenture, and to examine the same to determine
substantial compliance as to form with the express requirements hereof.

 

Section 2.07.          Replacement
Notes.

 

If the
Holder of a Note claims that the Note has been lost, destroyed or wrongfully
taken, the Company shall issue and the Trustee shall authenticate a replacement
Note if the Trustee’s requirements are met. If required by the Trustee or the
Company, an indemnity bond must be provided which is sufficient in the judgment
of both to protect the Company, the Trustee, any Agent or any authenticating
agent from any loss which any of them may suffer if a Note is replaced. The
Company may charge for its expenses in replacing a Note.

 

Every
replacement Note is an additional obligation of the Company and shall be
entitled to all the benefits of this Indenture equally and proportionately with
all other Notes duly issued hereunder.

 

Section 2.08.          Outstanding
Notes.

 

The
Notes outstanding at any time are all the Notes authenticated by the Trustee
except for those cancelled by it, those delivered to it for cancellation and
those described in this Section as not outstanding.

 

If a
Note is replaced pursuant to Section 2.07, it ceases to be outstanding unless
the Trustee receives proof satisfactory to it that the replaced Note is held by
a bona fide purchaser.

 

If
Notes are considered paid under Section 4.01, they cease to be outstanding and
interest on them ceases to accrue.

 

Subject
to Section 2.09, a Note does not cease to be outstanding because the Company or
an Affiliate of the Company holds the Note.

 

Section 2.09.          Treasury
Notes.

 

In
determining whether the Holders of the required principal amount of Notes have
concurred in any direction, waiver or consent, Notes owned by the Company or
any other obligor or an Affiliate of the Company or any other obligor shall be
considered as though they are not outstanding, except that for the purposes of
determining whether the Trustee shall be protected in relying on any such
direction, waiver or consent, only Notes which the Trustee

 

32

 

knows
are so owned shall be so disregarded. Notwithstanding the foregoing, Notes that
are to be acquired by the Company or an Affiliate of the Company pursuant to an
exchange offer, tender offer or other agreement shall not be deemed to be owned
by the Company or an Affiliate of the Company until legal title to such Notes
passes to the Company or Affiliate, as the case may be.

 

Section 2.10.          Temporary
Notes.

 

Until
definitive Notes are ready for delivery, the Company may prepare and the
Trustee shall authenticate temporary Notes. Temporary Notes shall be
substantially in the form of definitive Notes but may have variations that the
Company considers appropriate for temporary Notes. Without unreasonable delay,
the Company shall prepare and the Trustee shall authenticate definitive Notes
in exchange for temporary Notes without charge to the Noteholders.

 

Holders
of temporary Notes shall be entitled to all of the benefits of this Indenture.

 

Section 2.11.          Cancellation.

 

The
Company at any time may deliver Notes to the Trustee for cancellation. The
Registrar and Paying Agent shall forward to the Trustee any Notes surrendered
to them for registration of transfer, exchange or payment. The Trustee shall cancel
all Notes surrendered for registration of transfer, exchange, payment,
replacement or cancellation and shall dispose of cancelled Notes as the Company
directs. Subject to Section 2.07 hereof, the Company may not issue new Notes to
replace Notes that it has paid or that have been delivered to the Trustee for
cancellation. All cancelled Notes held by the Trustee shall be destroyed and
certification of their destruction delivered to the Company, unless by a
written order, signed by two Officers of the Company, the Company shall direct
that cancelled Notes be returned to it.

 

Section 2.12.          Defaulted
Interest.

 

If the
Company fails to make a payment of interest on the Notes, it shall pay such
defaulted interest plus any interest payable on the defaulted interest, if any,
in any lawful manner. It may pay such defaulted interest, plus any such
interest payable on it, to the persons who are Noteholders on a subsequent
special record date. The Company shall fix any such record date and payment
date. At least 15 days before any such record date, the Company shall mail to
Noteholders a notice that states the record date, payment date and amount of
such interest to be paid.

 

Section 2.13.          CUSIP
Numbers.

 

The
Company in issuing the Notes may use “CUSIP” numbers and if so the Trustee
shall use the CUSIP numbers in notices of redemption or exchange as a
convenience to Holders, provided
that any such notice may state that no representation is made as to the
correctness or accuracy of the CUSIP numbers printed in the notice or on the
Notes and that reliance may be placed only on the other identification numbers
printed on the Notes. The Company shall promptly notify the Trustee of any
change in the CUSIP numbers.

 

33

 

ARTICLE 3.

REDEMPTION

 

Section 3.01.          Notices
to Trustee.

 

If the Company elects to redeem the Notes pursuant to
the optional redemption provisions of paragraph 5 of the Notes, it shall notify
the Trustee in writing of the redemption date and the principal amount of the
Notes to be redeemed.

 

The
Company shall give each notice provided for in this Section at least 60 days
before the redemption date (unless a shorter notice period shall be
satisfactory to the Trustee, but in no event less than 30 days); provided, however,
that the Trustee shall have no liability to any Holder if it deems such shorter
notice period satisfactory to it.

 

Section 3.02.          Selection
of Notes to Be Redeemed.

 

Except
as provided below, if less than all of the Notes are to be redeemed, the Trustee
shall select the Notes or portions thereof to be redeemed on a pro rata basis
or by lot among the Holders of the Notes in accordance with a method the
Trustee considers fair and appropriate (in such manner as complies with
applicable legal and stock exchange requirements, if any).

 

The
amount of Notes shall be calculated as the aggregate principal amount of Notes
originally issued hereunder less the aggregate principal amount of any Notes
previously redeemed. The Trustee shall make the selection not more than 60 days
and not less than 30 days before the redemption date from outstanding Notes not
previously called for redemption.

 

The
Trustee shall promptly notify the Company of the Notes or portions of Notes to
be called for redemption. The Trustee may select for redemption portions of the
principal of Notes that have denominations larger than $1,000. Notes and
portions of them it selects shall be in amounts of $1,000 or integral multiples
of $1,000. Provisions of this Indenture that apply to Notes called for
redemption also apply to portions of Notes called for redemption.

 

Section 3.03.          Notice
of Redemption.

 

At
least 30 days but not more than 60 days before a redemption date, the Company
shall mail by first class mail, postage prepaid a notice of redemption to each
Holder whose Notes are to be redeemed at its address of record.

 

The
notice shall identify the Notes to be redeemed and shall state:

 

(1)           the
redemption date;

 

(2)           the
redemption price;

 

(3)           if
any Note is being redeemed in part, the portion of the principal amount of such
Note to be redeemed and that, after the redemption date, upon surrender of such

 

34

 

Note, a new Note or Notes
in principal amount equal to the unredeemed portion will be issued;

 

(4)           the
name and address of the Paying Agent;

 

(5)           that
Notes called for redemption must be surrendered to the Paying Agent to collect
the redemption price plus accrued interest;

 

(6)           that,
unless the Company defaults in making the redemption payment, interest on Notes
called for redemption ceases to accrue on and after the redemption date, and
that if a Note is redeemed on or after an interest record date but on or prior
to the related interest payment date, then any accrued and unpaid interest
shall be paid to the person in whose name such Note was registered at the close
of business on such record date; and

 

(7)           the
paragraph of the Notes pursuant to which the Notes called for redemption are
being redeemed.

 

At the
Company’s written request, the Trustee shall give the notice of redemption in
the Company’s name and at its expense.

 

Section 3.04.          Effect
of Notice of Redemption.

 

Once
notice of redemption is mailed, Notes called for redemption become due and
payable on the redemption date at the price set forth in the Note. Unless the
Company defaults in making the redemption payment, on and after the redemption
date, interest ceases to accrue on the Notes or the portions of Notes called
for redemption. If a Note is redeemed on or after an interest record date but
on or prior to the related interest payment date, then any accrued and unpaid
interest shall be paid to the person in whose name such Note was registered at
the close of business on such record date. If any Note called for redemption
shall not be so paid upon surrender thereof for redemption, the principal (and
premium, if any) shall, until paid, bear interest from the redemption date at
the rate borne by the Note.

 

Section 3.05.          Deposit
of Redemption Price.

 

No
later than 10:00 a.m. Eastern Time on the redemption date, the Company shall
deposit with the Trustee or with the Paying Agent immediately available funds
sufficient to pay the redemption price of and accrued interest and Liquidated
Damages, if any, on all Notes to be redeemed on that date. The Trustee or the
Paying Agent shall promptly return to the Company any money not required for
that purpose.

 

Section 3.06.          Notes
Redeemed in Part.

 

Upon
surrender of a Note that is redeemed in part, the Company shall issue and the
Trustee shall authenticate for the Holder at the expense of the Company a new
Note equal in principal amount to the unredeemed portion of the Note
surrendered.

 

35

 

Section 3.07.          Mandatory
Disposition Pursuant to Gaming Laws.

 

Notwithstanding
any other provision of this Article 3, if a record or beneficial owner of a
Note is required by any Gaming Authority to be found suitable, such owner shall
apply for a finding of suitability within 30 days after request of such Gaming
Authority. The applicant for a finding of suitability must pay all costs of the
investigation for such finding of suitability. If a record or beneficial owner
is required to be found suitable and is not found suitable by such Gaming
Authority, (i) such owner shall, upon request of the Company, dispose of such
owner’s Notes within 30 days or within that time prescribed by such Gaming
Authority, whichever is earlier, or (ii) the Company may, at its option, redeem
such owner’s Notes at the lesser of (x) the principal amount thereof or (y) the
price at which the Notes were acquired by such owner, together with, in either
case, accrued and unpaid interest and Liquidated Damages, if any, thereon to
the date of the finding of unsuitability by such Gaming Authority.

 

ARTICLE 4.

COVENANTS

 

Section 4.01.          Payment
of Notes.

 

The
Company shall pay the principal of and interest on the Notes on the dates and
in the manner provided in the Notes. Principal and interest shall be considered
paid on the date due if the Paying Agent (other than the Company or any
Subsidiary or Affiliate of the Company) holds by 10:00 a.m. New York time on
that date money in immediately available funds designated for and sufficient to
pay all principal and interest then due. The Company shall pay all Liquidated
Damages, if any, in the same manner on the dates and in the amounts set forth
in the Registration Rights Agreement.

 

To the
extent lawful, the Company shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on (i) overdue principal at the
rate borne by the Notes compounded semiannually; and (ii) overdue installments
of interest and Liquidated Damages (without regard to any applicable grace
period) at the same rate, compounded semiannually.

 

Section 4.02.          SEC
Reports, Financial Reports.

 

The
Company shall file with the Trustee and shall provide Holders within 15 days
after it files them with the SEC copies of the quarterly and annual reports and
of the information, documents and other reports (or copies of such portions of
any of the foregoing as the SEC may by rules and regulations prescribe) which
the Company files with the SEC pursuant to Sections 13(a) and 13(c) or 15(d) of
the Exchange Act. The Company will continue to file with the SEC and the
Trustee, and to provide to Holders, on the same timely basis such reports,
information and other documents as the Company would be required to file with
the SEC as if the Company were subject to the requirements of such Sections
13(a) and 13(c) or 15(d) of the Exchange Act, notwithstanding that the Company
may no longer be subject to Section 13(a) and 13(c) or 15(d) of the Exchange
Act and that the Company would be entitled not to file such reports,
information and other documents with the SEC. In addition, if the Company has
any Unrestricted Subsidiaries at such time, it shall also file with the
Trustee, and provide to the Holders, on the

 

36

 

same
timely basis, all quarterly and annual financial statements (which statements
may be unaudited) that would be required by Forms 10-Q and 10-K if the Company
did not have such Unrestricted Subsidiaries.

 

The
Company also shall comply with the provisions of TIA § 314(a). The Company
shall timely comply with its reporting and filing obligations under applicable
federal securities law. For so long as any Transfer Restricted Securities
remain outstanding, the Company shall furnish to the Holders and to prospective
purchasers of the Notes designated by the Holders of Transfer Restricted Securities,
upon their request, the information required to be delivered pursuant to Rule
144A(d)(4) under the Securities Act.

 

Section 4.03.          Compliance
Certificate.

 

(a)   The Company shall deliver to the Trustee, within 120 days
after the end of each fiscal year of the Company (which currently is December
31), an Officers’ Certificate stating that a review of the activities of the
Company and its subsidiaries during the preceding fiscal year has been made
under the supervision of the signing Officers with a view to determining
whether the Company has kept, observed, performed and fulfilled its obligations
under this Indenture, and further stating, as to each such Officer signing such
certificate, that to the best of his knowledge the Company has kept, observed,
performed and fulfilled each and every covenant contained in this Indenture and
is not in default in the performance or observance of any of the terms,
provisions and conditions hereof (or, if a Default or Event of Default shall
have occurred, describing all such Defaults or Events of Default of which he
may have knowledge) and that to the best of his knowledge no event has occurred
and remains in existence by reason of which payments on account of the
principal of or interest, if any, on the Notes are prohibited, or if such event
has occurred, a description of the event.

 

(b)   So long as not contrary to the then current recommendations
of the American Institute of Certified Public Accountants or to a written
policy adopted by the Company’s independent public accountants which has been
previously applied (a copy of which shall be delivered to the Trustee), the
audited financial statements delivered pursuant to Section 4.02 shall be
accompanied by a written statement of the Company’s independent public accountants
(which shall be a firm of established national reputation) that in making the
examination necessary for certification of such financial statements nothing
has come to their attention which would lead them to believe that the Company
has violated any provisions of Article 4 or 5 of this Indenture or, if any such
violation has occurred, specifying the nature and period of existence thereof,
it being understood that such accountants shall not be liable directly or
indirectly to any person for any failure to obtain knowledge of any such
violation.

 

(c)   The Company will, so long as any of the Notes are
outstanding, deliver to the Trustee, forthwith upon becoming aware of (i) any
Default or Event of Default in the performance of any covenant, agreement or condition
contained in this Indenture or (ii) any event of default under any other
mortgage, indenture or instrument governing other Indebtedness of the Company
aggregating in excess of $5,000,000, an Officers’ Certificate specifying such
Default, Event of Default or default.

 

37

 

Section 4.04.          Stay,
Extension and Usury Laws.

 

The
Company covenants (to the extent that it may lawfully do so) that it will not
at any time insist upon, plead or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now
or at any time hereafter in force, which may affect the covenants or the
performance of this Indenture; and the Company (to the extent it may lawfully do
so) hereby expressly waives all benefit or advantage of any such law, and
covenants that it will not, by resort to any such law, hinder, delay or impede
the execution of any power herein granted to the Trustee, but will suffer and
permit the execution of every such power as though no such law has been
enacted.

 

Section 4.05.          Limitation
on Indebtedness.

 

Unless
the Notes are rated the Required Rating (during which such time this Section
4.05 will not be in effect), the Company will not, and will not permit any of
its Subsidiaries to, directly or indirectly, create, incur, issue, assume,
guarantee, or otherwise in any manner become liable, directly or indirectly,
with respect to any Indebtedness, except, without duplication, for (i) the
incurrence by the Company’s Unrestricted Subsidiaries of Qualified Non-Recourse
Debt, provided, however, that if any such Indebtedness
ceases to be Qualified Non-Recourse Debt of an Unrestricted Subsidiary, such
event shall be deemed to constitute an incurrence of Indebtedness by a
Restricted Subsidiary of the Company; (ii) FF&E Financing incurred by the
Company or its Restricted Subsidiaries; (iii) the Notes; (iv) all Existing
Notes; (v) provided no Event of Default shall have occurred and be continuing,
other Indebtedness of the Company and its Restricted Subsidiaries in an amount
not to exceed $15,000,000 in aggregate principal amount; (vi) additional
Indebtedness of the Company and its Restricted Subsidiaries, if at the time of
the incurrence of such Indebtedness, the pro forma Consolidated Coverage Ratio
of the Company, calculated cumulatively for the four most recent consecutive
fiscal quarters of the Company and ending prior to the date of incurrence (the
“Reference Period”), is not less than 2.00 to 1.00, after giving effect to (A)
the incurrence of such Indebtedness as if such Indebtedness was incurred at the
beginning of the Reference Period and (if applicable) the application of the
net proceeds thereof to refinance other Indebtedness as if the application of
such proceeds occurred at the beginning of the Reference Period and (B) the
acquisition or disposition of any company or business acquired or disposed of
by the Company or any Restricted Subsidiary since the first day of the
Reference Period, including any acquisition or disposition which will be
consummated contemporaneously with the incurrence of such Indebtedness, as if
such acquisition or disposition occurred at the beginning of the Reference
Period; (vii) Permitted Refinancing Indebtedness; (viii) Indebtedness incurred
under the Bank Facility not to exceed the greater of (A) $200 million or (B)
1.5 times Operating Cash Flow calculated cumulatively for the four most recent
consecutive fiscal quarters of the Company immediately preceding the date on
which such Indebtedness is incurred, provided
that the exception in this clause (viii) shall not be applicable to any
Indebtedness incurred in refinancing the Bank Facility if the managing agent
for the lenders of such refinancing Indebtedness is a person other than a banking
institution with over $500 million in assets and subject to supervision and
examination by federal or state banking authorities; (ix) Interest Rate
Protection Agreements of the Company or any Restricted Subsidiary covering
solely Indebtedness of the Company or any Restricted Subsidiary which is
otherwise permitted to be incurred pursuant to this paragraph; (x) Indebtedness
to the Company or a wholly-owned

 

38

 

Restricted
Subsidiary; or (xi) to the extent that such incurrence does not result in the
incurrence by the Company or any Restricted Subsidiary of any obligation for
the payment of borrowed money of others, Indebtedness incurred solely as a
result of the execution by the Company or its Restricted Subsidiaries of a
Completion Guarantee and Keep-Well Agreement.

 

For
purposes of determining compliance with this covenant, in the event that an
item of Indebtedness meets the criteria of more than one of the categories of
Indebtedness described in clauses (i) through (xi) of the first paragraph of
this covenant, the Company will, in its sole discretion, classify such item of
Indebtedness in any manner that complies with this covenant and such item of
Indebtedness will be treated as having been incurred pursuant to only one of
such clauses. The Company may reclassify such Indebtedness from time to time in
its sole discretion.

 

Section 4.06.          Limitation
on Capital Stock of Restricted Subsidiaries.

 

The
Company will not permit any Restricted Subsidiary to issue any Capital Stock to
any person (other than to the Company or any wholly-owned Restricted
Subsidiary) that shall entitle the holder of such Capital Stock to a preference
in right of payment in the event of liquidation, dissolution or winding-up of
such Restricted Subsidiary or with respect to dividends of such Restricted
Subsidiary.

 

Section 4.07.          Corporate
Existence.

 

Subject
to Article 5 hereof, the Company will do or cause to be done all things
necessary to preserve and keep in full force and effect its corporate existence
and the corporate, partnership or other existence of each Subsidiary, if any,
in accordance with the respective organizational documents of each Subsidiary
and the rights (charter and statutory), licenses and franchises of the Company
and its Subsidiaries; provided, however, that the Company shall not be
required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any Subsidiary, if the Board of Directors of
the Company shall determine in good faith, which determination shall be
evidenced by a board resolution, that the preservation thereof is no longer
desirable in the conduct of the business of the Company and its Subsidiaries
taken as a whole and that the loss thereof is not adverse in any material
respect to the Holders.

 

Section 4.08.          Taxes.

 

The
Company shall, and shall cause each of its subsidiaries to, pay prior to
delinquency all taxes, assessments and governmental levies, except as contested
in good faith and by appropriate proceedings or where the failure to pay would
not have a material adverse effect on the Company and its Subsidiaries taken as
a whole.

 

Section 4.09.          Investment
Company Act.

 

The
Company shall not become an investment company subject to registration under
the Investment Company Act of 1940, as amended.

 

39

 

Section 4.10.          Limitation
on Transactions with Affiliates.

 

Unless
the Notes are rated the Required Rating (during which such time this Section
4.10 will not be in effect), the Company will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, conduct any business or enter
into any transaction or series of related transactions (including the purchase,
sale, lease or exchange of any property or the rendering of any service),
pursuant to which the Company or any Restricted Subsidiary shall receive or
render value exceeding $1,000,000, with any Affiliate or Related Person of the
Company or of the Existing Equity Holders (other than the Company or a
wholly-owned Restricted Subsidiary of the Company), unless (i) the terms of
such business, transaction or series of related transactions are (A) set forth
in writing and (B) fair and reasonable to the Company or such Restricted
Subsidiary, and no less favorable to the Company or such Restricted Subsidiary,
as the case may be, as terms that would be obtainable at the time for a
comparable transaction or series of related transactions with an unrelated
third person and (ii) the disinterested directors of the Board of Directors of
the Company have, by resolution, determined in good faith that such business or
transaction or series of related transactions meets the criteria set forth in
(i)(B) above, which determination shall be conclusive and (iii) with respect to
any transaction or series of related transactions otherwise permitted under
this paragraph pursuant to which the Company or any Restricted Subsidiary shall
receive or render value exceeding $15,000,000, such transaction or series of
related transactions shall not be permitted unless, prior to consummation
thereof, the Company shall have received an opinion, from an independent
nationally recognized firm experienced in the appraisal or similar review of
similar types of transactions, that such transaction or series of related
transactions is on terms which are fair, from a financial point of view, to the
Company or such Restricted Subsidiary. Notwithstanding the foregoing, the
Company or any of its Restricted Subsidiaries shall be entitled to provide management
services to an Unrestricted Subsidiary whose sole purpose is to develop,
construct and operate a new gaming facility, provided that the Company or such
Restricted Subsidiary, as the case may be, is reimbursed by the Unrestricted
Subsidiary for all costs and expenses (including without limitation payroll) it
incurs in providing such services.

 

Section 4.11.          Change
of Control and Rating Decline.

 

Upon
the occurrence of a Change of Control Triggering Event, each Holder shall have
the right to require that the Company repurchase all or any part of such
Holder’s Notes at a repurchase price in cash (the “Repurchase Price”) equal to
101% of the principal amount thereof, plus Liquidated Damages, if any, and
accrued interest to the date of repurchase.

 

Within
30 days following the date of a Change of Control Triggering Event, the Company
shall mail a notice to each Holder at its last registered address, with a copy
to the Trustee, of the Company’s offer to repurchase (the “Repurchase Offer”)
Notes pursuant to this Section 4.11. The Repurchase Offer shall remain open
from the time of mailing of such notice until the repurchase date (which shall
be no earlier than 30 days nor later than 60 days from the date of such
mailing) (the date on which the Repurchase Offer closes being the “Repurchase
Date”). The notice shall contain all instructions and materials necessary to
enable such Holders to tender Notes pursuant to the Repurchase Offer. The
notice, which shall govern the terms of the Repurchase Offer, shall state:

 

40

 

(i)            that a Change of
Control Triggering Event has occurred and that such Holder has the right to
require the Company to repurchase all or any part of such Holder’s Notes at a
repurchase price in cash equal to 101% of the principal amount, plus accrued
and unpaid interest and Liquidated Damages thereon, if any, to the date of
repurchase thereof;

 

(ii)           the circumstances and
relevant facts regarding such Change of Control Triggering Event (including
information with respect to pro forma historical income, cash flow and
capitalization after giving effect to such Change of Control Triggering Event);

 

(iii)          the Repurchase Date;

 

(iv)          that any Note not
tendered will continue to accrue interest;

 

(v)           that, unless the
Company defaults in paying the Repurchase Price, any Note accepted for payment
pursuant to the Repurchase Offer shall cease to accrue interest from and after
the Repurchase Date;

 

(vi)          that Holders electing to
have a Note purchased pursuant to the Repurchase Offer will be required to
surrender the Note, with the form entitled “Option of Holder to Elect
Repurchase” on the reverse of the Note duly completed, to the Company at the
address specified in the notice at least three Business Days prior to the
Repurchase Date;

 

(vii)         that Holders will be
entitled to withdraw their election if the Paying Agent receives, not later
than three Business Days prior to the Repurchase Date, a telegram, telex,
facsimile transmission or letter setting forth the name of the Holder, the
principal amount of Notes the Holder delivered for repurchase and a statement
that such Holder is withdrawing such Holder’s election to have such Notes
repurchased; and

 

(viii)        that Holders whose Notes
are purchased only in part will be issued new Notes equal in principal amount
to the unpurchased portion of the Notes surrendered.

 

If any
consent under the Bank Facility is necessary to permit the Company to effect
the Repurchase Offer, the Company will (i) repay in full or offer to repay in full
all Indebtedness under the Bank Facility or (ii) obtain the requisite consent
under the Bank Facility; provided, however, that the failure to repay such Indebtedness or
obtain such consent will not in any event excuse any failure by the Company to
perform its obligations under this Section 4.11.

 

On the
Repurchase Date, the Company shall, to the extent lawful, (i) accept for
payment Notes or portions thereof tendered pursuant to the Repurchase Offer and
(ii) deliver to the Trustee Notes so tendered together with an Officers’
Certificate stating the Notes or portions thereof accepted for payment by the
Company. The Paying Agent shall promptly mail or deliver to Holders of Notes so
accepted payment in an amount equal to the Repurchase Price. The Trustee shall
promptly authenticate and mail or deliver to each Holder who tendered a Note a
new Note or Notes equal in principal amount to any untendered portion of the
Note surrendered. The Paying Agent shall invest funds deposited with it
pursuant to this Section 4.11 for the benefit of, and at the written direction
of, the Company to the Repurchase Date.

 

41

 

Section 4.12.          Limitation
on Dividends and Other Payment Restrictions Affecting Restricted Subsidiaries.

 

Unless
the Notes are rated the Required Rating (during which such time this Section
4.12 will not be in effect), the Company will not, and will not permit any
Restricted Subsidiary to, directly or indirectly, create or otherwise cause or
suffer to exist or become effective any encumbrance or restriction on the
ability of any Restricted Subsidiary to: 
(i) pay dividends or make any other distribution on its Capital Stock or
any other interest or participation in, or measured by, its profits, or pay any
interest or principal due on Indebtedness owed to the Company or any of its
Restricted Subsidiaries; (ii) make loans or advances to the Company or any of
its Restricted Subsidiaries; or (iii) transfer any of its properties or assets
to the Company or any of its Restricted Subsidiaries, other than (a) any such
encumbrance or restriction imposed by any Gaming Authority; (b) any encumbrance
or restriction existing on February 27, 2004 contained in the Bank Facility
relating to Indebtedness that does not exceed the greater of (1) $200 million
or (2) 1.5 times Operating Cash Flow calculated cumulatively for the four most
recent consecutive fiscal quarters of the Company immediately preceding the
date on which such Indebtedness is incurred; (c) any encumbrance or restriction
with respect to a Restricted Subsidiary pursuant to an agreement relating to
any Indebtedness (other than Indebtedness incurred in anticipation of, as
consideration in, or to provide all or any portion of the funds utilized to
consummate, the transaction or series of related transactions pursuant to which
such Restricted Subsidiary became a Subsidiary of the Company) incurred by such
Restricted Subsidiary on or prior to the date on which such Restricted
Subsidiary became a Restricted Subsidiary of the Company and outstanding on
such date; (d) any pledge by the Company or a Restricted Subsidiary of the
stock of an Unrestricted Subsidiary if such pledge is made in connection with
the incurrence of Qualified Non-Recourse Debt by such Unrestricted Subsidiary;
and (e) any encumbrance or restriction pursuant to an agreement relating to
Indebtedness issued to repay or amend Indebtedness referred to in clause (b),
(c) or (e) of this paragraph, provided,
however, that any such
encumbrance or restriction is no less favorable to the Noteholders than
encumbrances and restrictions contained in agreements relating to the
Indebtedness so repaid or amended, and provided
further, that in the event that Indebtedness is issued to repay or
amend the Bank Facility, the aggregate principal amount of such Indebtedness
shall not exceed the greater of (A) $200 million or (B) 1.5 times Operating
Cash Flow calculated cumulatively for the four most recent consecutive fiscal
quarters of the Company immediately preceding the date on which such
Indebtedness is issued.

 

Section 4.13.          Restriction
on Layering Debt.

 

The
Company shall not incur any Indebtedness that is subordinate or junior in right
of payment to Senior Indebtedness and senior in any respect in right of payment
to the Notes.

 

42

 

ARTICLE 5.

SUCCESSORS

 

Section 5.01.          When
Company May Merge, etc.

 

The
Company shall not consolidate with or merge with or into any other entity
(other than with a wholly-owned Restricted Subsidiary, provided the Company is
the continuing corporation) or sell, convey, assign, transfer, lease or
otherwise dispose of all or substantially all of its properties and assets
(determined on a consolidated basis for the Company and its Restricted
Subsidiaries taken as a whole) to any entity, unless:

 

(i)            either (a) the Company
shall be the continuing corporation or (b) the entity (if other than the
Company) formed by such consolidation or into which the Company is merged or
the entity that acquires, by sale, conveyance, assignment, transfer, lease or
disposition, all or substantially all of the properties and assets of the
Company shall be a corporation, partnership or trust organized and validly
existing under the laws of the United States or any state thereof or the
District of Columbia, and shall expressly assume by a supplemental indenture
the due and punctual payment of the principal of and premium, if any, and
interest on all the Notes and the performance and observance of every covenant
of the Indenture on the part of the Company to be performed or observed;

 

(ii)           immediately thereafter,
no Event of Default (and no event that, after notice or lapse of time, or both,
would become an Event of Default) shall have occurred and be continuing;

 

(iii)          immediately after giving
effect to any such transaction involving the incurrence by the Company or any
Restricted Subsidiary, directly or indirectly, of additional Indebtedness (and
treating any Indebtedness not previously an obligation of the Company or any of
its Restricted Subsidiaries incurred in connection with or as a result of such
transaction as having been incurred at the time of such transaction), the
Company (if it is the continuing corporation) or such other entity could incur
at least $1.00 of additional Indebtedness pursuant to Section 4.05(vi); and

 

(iv)          immediately thereafter,
the Company (if it is the continuing corporation) or such other entity shall
have a Consolidated Net Worth equal to or greater than the Consolidated Net
Worth of the Company immediately prior to such transaction.

 

The
Company shall deliver to the Trustee prior to the consummation of the proposed
transaction an Officers’ Certificate to the foregoing effect and an Opinion of
Counsel stating that the proposed transaction and such supplemental indenture
comply with this Indenture.

 

Section 5.02.          Successor
Corporation Substituted.

 

Upon
any consolidation or merger, or any sale, lease, conveyance or other
disposition of all or substantially all of the assets of the Company in
accordance with Section 5.01, the successor corporation formed by such
consolidation or into or with which the Company is merged or to which such
sale, lease, conveyance or other disposition is made shall succeed to,

 

43

 

and be
substituted for, and may exercise every right and power of, the Company under
this Indenture with the same effect as if such successor person had been named
as the Company herein. When a successor corporation assumes all of the
obligations of the Company hereunder and under the Notes and agrees to be bound
hereby and thereby, the predecessor shall be released from such obligations.

 

ARTICLE 6.

DEFAULTS AND REMEDIES

 

Section 6.01.          Events
of Default.

 

An
“Event of Default” occurs if:

 

(a)           the Company defaults in
the payment of interest on any Note when the same becomes due and payable and
such Default continues for a period of 30 days after the date due and payable;

 

(b)           the Company defaults in
the payment of the principal of any Note when the same becomes due and payable
at maturity, upon optional redemption of the Notes by the Company, upon
exercise by the Holder of the Repurchase Offer upon a Change of Control
Triggering Event, upon declaration or otherwise;

 

(c)           the Company fails to
observe, perform or comply with Article 5;

 

(d)           the Company fails to
observe, perform or comply with any of its other agreements or covenants in, or
provisions of, the Notes or this Indenture and such failure to observe, perform
or comply continues for a period of 60 days after receipt by the Company of
notice of Default from the Trustee or the Holders of at least 25% in principal
amount of the Notes;

 

(e)           the Company fails,
after any applicable grace period, to make any payment of principal of, premium
in respect of, or interest on, any Indebtedness when due, or any Indebtedness
of the Company or any of its Restricted Subsidiaries is accelerated because of
a default and the aggregate principal amount of such Indebtedness with respect
to which any such failure to pay or acceleration has occurred exceeds the
greater of (a) $10,000,000 and (ii) 5% of Consolidated Net Tangible Assets;

 

(f)            any encumbrance or
restriction of the type described in Section 4.12 becomes applicable to any
Restricted Subsidiary;

 

(g)           the Company or any Restricted
Subsidiary pursuant to or within the meaning of any Bankruptcy Law:

 

(A)          commences
a voluntary case,

 

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

 

44

 

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

 

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

 

(E)           admits
in writing its inability generally to pay its debts as the same become due;

 

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

 

(A)          is
for relief against the Company or any Restricted Subsidiary in an involuntary
case,

 

(B)           appoints
a Custodian of the Company or any Restricted Subsidiary or for all or
substantially all of the property of the Company or any Restricted Subsidiary,
or

 

(C)           orders
the liquidation of the Company or any Restricted Subsidiary, and the order or
decree remains unstayed and in effect for 60 days;

 

(i)            one or more judgments,
orders or decrees are rendered against the Company or any of its Restricted
Subsidiaries in an aggregate amount in excess of (x) $10,000,000 and (y) 5% of
Consolidated Net Tangible Assets (in each case, to the extent not covered by
insurance) and, in each case, that are not discharged for a period of 60 days
during which a stay of enforcement of such judgments, orders or decrees, by
reason of a pending appeal or otherwise, is not in effect; or

 

(j)            any Gaming License of
the Company or any of its Restricted Subsidiaries is revoked, terminated or
suspended or otherwise ceases to be effective, resulting in the cessation or
suspension of operation for a period of more than 90 days of the casino
business of any casino-hotel owned, leased or operated directly or indirectly
by the Company or any of its Restricted Subsidiaries (other than any voluntary
relinquishment of a Gaming License if such relinquishment is, in the
reasonable, good faith judgment of the Board of Directors of the Company,
evidenced by a resolution of such Board, both desirable in the conduct of the
business of the Company and its Restricted Subsidiaries, taken as a whole, and
not disadvantageous in any material respect to the Holders).

 

The
term “Bankruptcy Law” means title 11, U.S. Code or any similar federal or state
law for the relief of debtors. The term “Custodian” means any receiver,
trustee, assignee, liquidator or similar official under any Bankruptcy Law.

 

In the
case of any Event of Default pursuant to the provisions of this Section 6.01
occurring by reason of any willful action (or inaction) taken (or not taken) by
or on behalf of the Company with the intention of avoiding payment of the
premium which the Company would have had to pay if the Company then had elected
to redeem the Notes pursuant to paragraph 5 of the Notes, an equivalent premium
(or, in the event that the Company would not be permitted to redeem the Notes
pursuant to paragraph 5 of the Notes, the premium payable on the first date

 

45

 

thereafter
on which such redemption would be permissible) shall also become and be
immediately due and payable to the extent permitted by law, anything in this
Indenture or in the Notes contained to the contrary notwithstanding.

 

Section 6.02.          Acceleration.

 

If an
Event of Default (other than an Event of Default specified in clause (g) or (h)
of Section 6.01) occurs and is continuing, the Trustee by notice to the
Company, or the Holders of at least 25% in principal amount of the then
outstanding Notes by notice to the Company and the Trustee, may declare the
unpaid principal of and all accrued and unpaid interest, Liquidated Damages, if
any, and premium, if any, on the Notes to be immediately due and payable. Upon
such declaration, the principal, interest, Liquidated Damages, if any, and
premium, if any, shall be due and payable immediately. If an Event of Default
specified in clause (g) or (h) of Section 6.01 occurs, such an amount shall ipso facto become and be immediately due
and payable without any declaration or other act on the part of the Trustee or
any Holder. The Holders of a majority in principal amount of the then
outstanding Notes, by notice to the Trustee, may rescind an acceleration and
its consequences if the rescission would not conflict with any judgment or
decree and if all existing Events of Default have been cured or waived, except
non-payment of principal or interest that has become due solely because of the
acceleration.

 

Section 6.03.          Other
Remedies.

 

If an
Event of Default occurs and is continuing, the Trustee may pursue any available
remedy to collect the payment of principal or interest on the Notes or to
enforce the performance of any provision of the Notes or this Indenture.

 

The
Trustee may maintain a proceeding even if it does not possess any of the Notes
or does not produce any of them in the proceeding. A delay or omission by the
Trustee or any Noteholder in exercising any right or remedy accruing upon an
Event of Default shall not impair the right or remedy or constitute a waiver of
or acquiescence in the Event of Default. All remedies are cumulative to the
extent permitted by law.

 

Section 6.04.          Waiver
of Past Defaults.

 

The
Holders of a majority in principal amount of the then outstanding Notes, by
notice to the Trustee, may waive an existing Default or Event of Default and
its consequences, except a continuing Default or Event of Default in the
payment of the principal of any Note.

 

Section 6.05.          Control
by Majority.

 

The
Holders of a majority in principal amount of the then outstanding Notes may
direct the time, method and place of conducting any proceeding for any remedy
available to the Trustee or exercising any trust or power conferred on it.
However, the Trustee may refuse to follow any direction that conflicts with law
or this Indenture, that is unduly prejudicial to the rights of other
Noteholders, or would involve the Trustee in personal liability.

 

46

 

Section 6.06.          Limitation
on Suits.

 

A
Noteholder may pursue a remedy with respect to this Indenture or the Notes only
if:

 

(a)           the Holder gives to the
Trustee notice of a continuing Event of Default;

 

(b)           the Holders of at least
25% in principal amount of the then outstanding Notes make a written request to
the Trustee to pursue the remedy;

 

(c)           such Holder or Holders
offer to the Trustee indemnity satisfactory to the Trustee against any loss,
liability or expense;

 

(d)           the Trustee does not
comply with the request within 60 days after receipt of the request and the
offer of indemnity; and

 

(e)           during such 60-day
period the Holders of a majority in principal amount of the then outstanding
Notes do not give the Trustee a direction inconsistent with the request.

 

A
Noteholder may not use this Indenture to prejudice the rights of another
Noteholder or to obtain a preference or priority over another Noteholder.

 

Section 6.07.          Rights
of Holders to Receive Payment.

 

Notwithstanding
any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal of, Liquidated Damages, if any, and interest on
the Note, on or after the respective due dates expressed in the Note, or to
bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of the Holder.

 

Section 6.08.          Collection
Suit by Trustee.

 

If an
Event of Default specified in Section 6.01(a) or (b) occurs and is continuing,
the Trustee may recover judgment as permitted under applicable law in its own
name and as trustee of an express trust against the Company or any other
obligor on the Notes for the whole amount of principal of, Liquidated Damages,
if any, and interest remaining unpaid on the Notes and interest on overdue
principal and interest and such further amount as shall be sufficient to cover
the costs and, to the extent lawful, expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel.

 

Section 6.09.          Trustee
May File Proofs of Claim.

 

The
Trustee may file such proofs of claim and other papers or documents as may be
necessary or advisable in order to have the claims of the Trustee and the
Noteholders allowed in any judicial proceedings relative to the Company or any
other obligor or their respective creditors or property. Nothing herein
contained shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Noteholder any plan of

 

47

 

reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof, or to authorize the Trustee to vote in respect of the claim of
any Noteholder in any such proceeding.

 

Section 6.10.          Priorities.

 

If the
Trustee collects any money pursuant to this Article, it shall pay out the money
in the following order:

 

	
  First:

  	
   

  	
  to the Trustee for amounts due under Section 7.07;

  
	
   

  	
   

  	
   

  
	
  Second:

  	
   

  	
  to Noteholders for amounts due and unpaid on the
  Notes for principal, interest and Liquidated Damages, if any, ratably,
  without preference or priority of any kind, according to the amounts due and
  payable on the Notes for principal, interest and Liquidated Damages, if any,
  respectively; and

  
	
   

  	
   

  	
   

  
	
  Third:

  	
   

  	
  to the Company or any other obligors on the Notes,
  as their interests may appear, or as a court of competent jurisdiction may
  direct.

  

 

The
Trustee may fix a record date and payment date for any payment to Noteholders.

 

Section 6.11.          Undertaking
for Costs.

 

In any
suit for the enforcement of any right or remedy under this Indenture or in any
suit against the Trustee for any action taken or omitted by it as Trustee, a
court in its discretion may require the filing by any party litigant in the
suit of an undertaking to pay the costs of the suit, and the court in its
discretion may assess reasonable costs, including reasonable attorneys’ fees,
against any party litigant in the suit, having due regard to the merits and
good faith of the claims or defenses made by the party litigant. This Section
6.11 does not apply to a suit by the Trustee, a suit by a Holder pursuant to
Section 6.07, or a suit by Holders of more than 10% in principal amount of the
then outstanding Notes.

 

ARTICLE 7.

TRUSTEE

 

Section 7.01.          Duties
of Trustee.

 

(a)   If an Event of Default has occurred and is continuing, the
Trustee shall exercise such of the rights and powers vested in it by this
Indenture, and use the same degree of care and skill in their exercise, as a
prudent person would exercise or use under the circumstances in the conduct of
his or her own affairs.

 

(b)   Except during the continuance of an Event of Default:

 

48

 

(i)            The duties of the
Trustee shall be determined solely by the express provisions of this Indenture
and the Trustee need perform only those duties that are specifically set forth
in this Indenture and no others, and no implied covenants or obligations shall
be read into this Indenture against the Trustee.

 

(ii)           In the absence of bad
faith on its part, the Trustee may conclusively rely, as to the truth of the
statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the
requirements of this Indenture. However, the Trustee shall examine the
certificates and opinions to determine whether or not they conform to the
requirements of this Indenture (but need not confirm or investigate the
accuracy of any mathematical calculations or other facts stated therein).

 

(c)   The Trustee may not be relieved from liability for its own
negligent action, its own negligent failure to act or its own willful
misconduct, except that:

 

(i)            This paragraph does
not limit the effect of paragraph (b) of this Section.

 

(ii)           The Trustee shall not
be liable for any error of judgment made in good faith by a Trust Officer,
unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts.

 

(iii)          The Trustee shall not be
liable with respect to any action it takes or omits to take in good faith in
accordance with a direction received by it pursuant to Section 6.05.

 

(d)   Every provision of this Indenture that in any way relates to
the Trustee is subject to paragraphs (a), (b) and (c) of this Section.

 

(e)   The Trustee may refuse to perform any duty or exercise any
right or power unless it receives indemnity satisfactory to it against any
loss, liability or expense.

 

(f)    The Trustee shall not be liable for interest on any money
received by it except as the Trustee may agree in writing with the Company.
Money held in trust by the Trustee need not be segregated from other funds
except to the extent required by law.

 

(g)   None of the provisions of this Indenture shall require the
Trustee to expend or risk its own funds or otherwise incur financial liability
in the performance of any of its duties hereunder or in the exercise of any of
its rights or powers.

 

(h)   The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture or other paper or documents.

 

Section 7.02.          Rights
of Trustee.

 

(a)   The Trustee may rely on, and shall be protected in acting or
refraining from acting upon, any document (whether in original, facsimile or
electronic form) believed by it to be

 

49

 

genuine and to have been signed or presented
by the proper person. The Trustee shall not be bound to make any investigation
into the facts or matters stated in any resolution, certificate, statement,
instrument, opinion, report, notice, request, direction, consent, order, bond,
debenture or other paper or document, but the Trustee, in its discretion, may
make such further inquiry or investigation into such facts or matters as it may
see fit, and, if the Trustee shall determine to make such further inquiry or
investigation, it shall be entitled to examine the books, records and premises
of the Company, personally or by agent or attorney.

 

(b)   Before the Trustee acts or refrains from acting, it may
require an Officers’ Certificate or an Opinion of Counsel, or both. The Trustee
shall not be liable for any action it takes or omits to take in good faith in
reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee may
consult with counsel of its own selection and the written advice or opinion of
such counsel or Opinion of Counsel shall be full and complete authorization and
protection from liability in respect of any action taken, suffered or omitted
by it hereunder in good faith and in reliance thereon.

 

(c)   The Trustee may act through agents and shall not be
responsible for the misconduct or negligence of any agent appointed with due
care.

 

(d)   The Trustee shall not be liable for any action it takes or
omits to take in good faith which it believes to be authorized or within its
rights or powers.

 

(e)   Unless otherwise specifically provided in this Indenture,
any demand, request, direction or notice from the Company shall be sufficient
if signed by an Officer of the Company.

 

(f)    The Trustee shall be under no obligation to exercise any of
the rights or powers vested in it by this Indenture at the request or direction
of any of the Holders unless such Holders shall have offered to the Trustee
reasonable security or indemnity satisfactory to it against the costs, expenses
and liabilities that might be incurred by it in compliance with such request or
direction.

 

(g)   The Trustee shall not be charged with knowledge of any
Default or Event of Default unless either (i) a Responsible Officer of the
Trustee shall have actual knowledge of such Default or Event of Default or (ii)
written notice of such Default or Event of Default shall have been given to and
received by a Responsible Officer of the Trustee by the Company or any Holder.

 

Section 7.03.          Individual
Rights of Trustee.

 

The
Trustee in its individual or any other capacity may become the owner or pledgee
of Notes and may otherwise deal with the Company or an Affiliate of the Company
with the same rights it would have if it were not Trustee. Any Agent may do the
same with like rights. However, the Trustee is subject to Sections 7.10 and
7.11.

 

Section 7.04.          Trustee’s
Disclaimer.

 

The
Trustee shall not be responsible for and makes no representation as to the
validity or adequacy of this Indenture or the Notes, it shall not be
accountable for the Company’s

 

50

 

use of
the proceeds from the Notes or any money paid to the Company or upon the
Company’s direction under any provision of this Indenture or the Notes, it
shall not be responsible for the use or application of any money received by
any Paying Agent other than the Trustee, and it shall not be responsible for
any statement or recital herein or any statement in the Notes or any other
document in connection with the sale of the Notes or pursuant to this Indenture
other than its authentication of the Notes.

 

Section 7.05.          Notice
of Defaults.

 

If a
Default or Event of Default occurs and is continuing and if it is actually
known to the Trustee, the Trustee shall mail to Note holders a notice of the
Default or Event of Default within 90 days after it occurs. Except in the case
of a Default or Event of Default in payment on any Note, the Trustee may
withhold the notice if and so long as a committee of its Trust Officers in good
faith determines that withholding the notice is in the interests of
Noteholders.

 

Section 7.06.          Reports
by Trustee to Holders.

 

Within
60 days after the reporting date stated in Section 11.10, the Trustee shall, to
the extent required, mail to Noteholders a brief report dated as of such
reporting date that complies with TIA § 313(a). The Trustee also shall comply
with TIA § 313(b). The Trustee shall also transmit by mail all reports as
required by TIA § 313(c).

 

Commencing
at the time this Indenture is qualified under the TIA, a copy of each report at
the time of its mailing to Noteholders shall be filed with the SEC and each
stock exchange on which the Notes are listed of which the Company has notified
the Trustee in writing. The Company shall promptly notify the Trustee when the
Notes are listed on any stock exchange.

 

Section 7.07.          Compensation
and Indemnity.

 

The
Company shall pay to the Trustee from time to time upon demand by the Trustee
reasonable compensation established by the Trustee for its services hereunder.
The Trustee’s compensation shall not be limited by any law on compensation of a
trustee of an express trust. The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it. Such expenses
shall include the reasonable compensation and out-of-pocket expenses of the
Trustee’s agents and counsel.

 

The
Company shall indemnify the Trustee, its officers, directors, employees and
agents against any and all losses, liabilities, claims, damages or expenses
(including reasonable legal fees and expenses) incurred by it arising out of or
in connection with the acceptance or administration of its duties under this
Indenture, including the costs and expenses of enforcing this Indenture against
the Company (including this Section 7.07) and defending itself against any
claim (whether asserted by the Company or any Holder or any other person) or
liability in connection with the exercise or performance of any of its powers
or duties hereunder. The Trustee shall notify the Company promptly of any claim
for which it may seek indemnity. The Company shall defend the claim and the
Trustee shall cooperate in the defense. The Trustee may have separate counsel,
and the Company shall pay the reasonable fees and expenses of such

 

51

 

counsel.
The Company need not pay for any settlement made without its consent, which
consent shall not be unreasonably withheld.

 

The
Company need not reimburse any expense or indemnify against any loss or
liability incurred by the Trustee through gross negligence or willful
misconduct.

 

To
secure the Company’s payment obligations in this Section, the Trustee shall
have a lien prior to the Notes on all money or property held or collected by
the Trustee, except that held in trust to pay principal and interest on
particular Notes. Such Lien shall survive the resignation or removal of the
Trustees and the satisfaction and discharge of this Indenture.

 

When
the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.01(g) or (h) occurs, the expenses and the compensation
for the services, including the fees and expenses of its agents and counsel,
are intended to constitute expenses of administration under any Bankruptcy Law.

 

Section 7.08.          Replacement
of Trustee.

 

A
resignation or removal of the Trustee and appointment of a successor Trustee
shall become effective only upon the successor Trustee’s acceptance of appointment
as provided in this Section.

 

The
Trustee may resign by so notifying the Company. The Holders of a majority in
principal amount of the then outstanding Notes may remove the Trustee by so
notifying the Trustee and the Company. The Company may remove the Trustee by
notice to the Trustee if:

 

(1)           the
Trustee fails to comply with Section 7.10;

 

(2)           the
Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

 

(3)           a
Custodian or public officer takes charge of the Trustee or its property; or

 

(4)           the
Trustee becomes otherwise incapable of acting.

 

If the
Trustee resigns or is removed or if a vacancy exists in the office of Trustee
for any reason, the Company and any other obligor shall promptly appoint a
successor Trustee. Within one year after the successor Trustee takes office,
the Holders of a majority in principal amount of the then outstanding Notes may
appoint a successor Trustee to replace the successor Trustee appointed by the
Company.

 

If a
successor Trustee does not take office within 30 days after the retiring
Trustee resigns or is removed, the retiring Trustee (at the expense of the
Company), the Company or the Holders of at least 10% in principal amount of the
then outstanding Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

 

52

 

If the
Trustee fails to comply with Section 7.10, any Noteholder may petition any
court of competent jurisdiction for the removal of the Trustee and the
appointment of a successor Trustee.

 

A
successor Trustee shall deliver a written acceptance of its appointment to the
retiring Trustee and to the Company. Thereupon the resignation or removal of the
retiring Trustee shall become effective, and the successor Trustee shall have
all the rights, powers and duties of the Trustee under this Indenture. The
successor Trustee shall mail a notice of its succession to Noteholders. The
retiring Trustee shall promptly transfer all property held by it as Trustee to
the successor Trustee, subject to the lien provided for in Section 7.07.
Notwithstanding replacement of the Trustee pursuant to this Section 7.08, the
Company’s obligations under Section 7.07 hereof shall continue for the benefit
of the retiring trustee with respect to expenses and liabilities incurred by it
prior to such replacement.

 

Section 7.09.          Successor
Trustee by Merger, etc.

 

If the
Trustee consolidates, merges or converts into, or transfers all or
substantially all of its corporate trust business to, another corporation, the
successor corporation without any further act shall be the successor Trustee.

 

Section 7.10.          Eligibility;
Disqualification.

 

This
Indenture shall always have a Trustee who satisfies the requirements of TIA
§ 310(a)(1). The Trustee shall always have a combined capital and surplus
as stated in Section 11.10. The Trustee is subject to TIA § 310(b), including
the optional provision permitted by the proviso in the second sentence of TIA §
310(b).

 

Section 7.11.          Preferential
Collection of Claims Against Company.

 

The
Trustee is subject to TIA § 311(a), excluding any creditor relationship listed
in TIA § 311(b). A Trustee who has resigned or been removed shall be subject to
TIA § 311(a) to the extent indicated therein.

 

ARTICLE 8.

DISCHARGE OF INDENTURE

 

Section 8.01.          Termination
of Company’s Obligations.

 

This
Indenture shall cease to be of further effect (except that the Company’s
obligations under Sections 7.07 and 8.03, and application of funds to the
payment of Notes, shall survive) when all outstanding Notes theretofore
authenticated and issued have been delivered to the Trustee for cancellation,
and the Company has paid all sums payable hereunder. In addition, the Company
may terminate all of its obligations under this Indenture (except the Company’s
obligations under Sections 7.07 and 8.03) if:

 

(1)           the
Company irrevocably deposits in trust with the Trustee money or non-callable
U.S. Government Obligations maturing as to principal and interest in such
amounts and at such times as are sufficient, as certified by an Officers’
Certificate, to pay

 

53

 

principal of, Liquidated
Damages, if any, and interest on the Notes to maturity or redemption, as the
case may be, and to pay all other sums payable by it hereunder; and

 

(2)           the
Company delivers to the Trustee an Opinion of Counsel satisfactory to the
Trustee that the Holders of the Notes should not recognize income, gain or loss
for federal income tax purposes as a result of the Company’s exercise of its
option under this Section 8.01 and will be subject to federal income tax on the
same amount and in the same manner and at the same times as would have been the
case if such option had not been exercised.

 

However, the Company’s obligations in Sections 2.03,
2.04, 2.05, 2.06, 2.07, 4.01, 7.07, 8.03 and 8.04 shall survive until the Notes
are no longer outstanding. Thereafter, only the Company’s obligations in
Sections 7.07 and 8.03 shall survive.

 

After
a deposit made pursuant to this Section 8.01, the Trustee upon request shall
acknowledge in writing the discharge of the Company’s obligations under this
Indenture, except for those surviving obligations specified above.

 

“U.S.
Government Obligations” means direct obligations of the United States of
America, or obligations unconditionally guaranteed by the United States of
America, for the payment of which the full faith and credit of the United
States of America is pledged. In order to have money available on a payment
date to pay principal of or interest on the Notes, the U.S. Government
Obligations shall be payable as to principal or interest on or before such
payment date in such amounts as will provide the necessary money. U.S.
Government Obligations shall not be callable at the issuer’s option.

 

Section 8.02.          Application
of Trust Money.

 

The
Trustee shall hold in trust money or U.S. Government Obligations deposited with
it pursuant to Section 8.01. It shall apply the deposited money and the money
from U.S. Government Obligations through the Paying Agent and in accordance
with this Indenture to the payment of principal and interest and Liquidated
Damages, if any, on the Notes.

 

Section 8.03.          Repayment
to Company.

 

The
Trustee and the Paying Agent shall promptly pay to the Company upon request any
excess money or securities held by them at any time.

 

The
Trustee and the Paying Agent shall pay to the Company upon request any money
held by them for the payment of principal of, Liquidated Damages, if any, or
interest on any Note that remains unclaimed for two years after the date upon
which such payment shall have become due; provided,
however, that the Company shall
have first caused notice of such payment to the Company to be mailed to each
Noteholder entitled thereto no less than 30 days prior to such payment. After
payment to the Company, Noteholders entitled to the money must look to the
Company for payment as general creditors unless an applicable abandoned
property law designates another person.

 

54

 

Section 8.04.          Reinstatement.

 

If (i)
the Trustee or Paying Agent is unable to apply any money in accordance with
Section 8.02 by reason of any order or judgment of any court or governmental
authority (other than any order of the Nevada Gaming Commission restricting the
payment of such money to any particular Holder) enjoining, restraining or
otherwise prohibiting such application and (ii) the Holders of at least a
majority in principal amount of the then outstanding Notes so request by
written notice to the Trustee, the Company’s obligations under this Indenture
and the Notes shall be revived and reinstated as though no deposit had occurred
pursuant to Section 8.01 until such time as the Trustee or Paying Agent is
permitted to apply all such money in accordance with Section 8.02; provided, however,
that if the Company makes any payment of principal of, Liquidated Damages, if
any, or interest on any Note following the reinstatement of its obligations,
the Company shall be subrogated to the right of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

 

ARTICLE 9.

AMENDMENTS

 

Section 9.01.          Without
Consent of Holders.

 

The
Company and the Trustee may amend this Indenture or the Notes without the
consent of any Noteholder:

 

(1)           to
cure any ambiguity, defect or inconsistency;

 

(2)           to
comply with Section 5.01;

 

(3)           to
comply with any requirements of the SEC in connection with the qualification or
requalification of this Indenture under the TIA;

 

(4)           to
provide for uncertificated Notes in addition to certificated Notes; or

 

(5)           to
make any change that does not adversely affect the rights hereunder of any
Noteholder.

 

Section 9.02.          With
Consent of Holders.

 

Subject
to Section 6.07, the Company and the Trustee may amend this Indenture or the
Notes with the written consent of the Holders of at least a majority in
principal amount of the then outstanding Notes. Subject to Sections 6.04 and
6.07, the Holders of a majority in principal amount of the Notes then
outstanding may also waive compliance in a particular instance by the Company
with any provision of this Indenture or the Notes.

 

However,
without the consent of each Noteholder affected, an amendment or waiver under this
Section may not:

 

(1)           reduce
the amount of Notes whose Holders must consent to an amendment or waiver;

 

55

 

(2)           reduce
the rate of or change the time for payment of interest or Liquidated Damages,
if any, on any Note;

 

(3)           the
principal of or change the fixed maturity of any Note or alter the redemption
provisions with respect thereto;

 

(4)           make
any Note payable in money other than that stated in the Note;

 

(5)           make
any change in Section 6.04, 6.07 or 9.02 (this sentence only); or

 

(6)           waive
a default in the payment of the principal of, or Liquidated Damages, if any, or
interest on, any Note.

 

To
secure a consent of the Holders under this Section it shall not be necessary
for the Holders to approve the particular form of any proposed amendment or
waiver, but it shall be sufficient if such consent approves the substance
thereof.

 

After
an amendment or waiver under this Section becomes effective, the Company shall
mail to Noteholders a notice briefly describing the amendment or waiver.

 

Section 9.03.          Compliance
with Trust Indenture Act.

 

Every
amendment to this Indenture or the Notes shall be set forth in a supplemental
indenture that complies with the TIA as then in effect.

 

Section 9.04.          Revocation
and Effect of Consents.

 

Until
an amendment or waiver becomes effective, a consent to it by a Holder of a Note
is a continuing consent by the Holder and every subsequent Holder of a Note or
portion of a Note that evidences the same Indebtedness as the consenting Holder’s
Note, even if notation of the consent is not made on any Note. However, any
such Holder or subsequent Holder may revoke the consent as to his Note or
portion of a Note if the Trustee receives notice of revocation before the date
on which the Trustee receives an Officers’ Certificate certifying that the
Holders of the requisite principal amount of Notes have consented to the
amendment or waiver (or before such later date as may be required by law or
stock exchange rule).

 

The
Company may, but shall not be obligated to, fix a record date for the purpose
of determining the Holders entitled to consent to any amendment or waiver. If a
record date is fixed, then notwithstanding the provisions of the immediately
preceding paragraph, those persons who were Holders at such record date (or
their duly designated proxies), and only those persons, shall be entitled to
consent to such amendment or waiver or to revoke any consent previously given,
whether or not such persons continue to be Holders after such record date. No
consent shall be valid or effective for more than 90 days after such record
date unless consents from Holders of the principal amount of Notes required
hereunder for such amendment or waiver to be effective shall have also been
given and not revoked within such 90-day period.

 

After
an amendment or waiver becomes effective it shall bind every Noteholder, unless
it is of the type described in any of clauses (1) through (6) of Section 9.02.
In such case,

 

56

 

the
amendment or waiver shall bind each Holder of a Note who has consented to it
and every subsequent Holder of a Note that evidences the same Indebtedness as
the consenting Holder’s Note.

 

Section 9.05.          Notation
on or Exchange of Notes.

 

The
Trustee may place an appropriate notation about an amendment or waiver on any
Note thereafter authenticated. The Company in exchange for all Notes may issue
and the Trustee shall authenticate new Notes that reflect the amendment or
waiver.

 

Section 9.06.          Trustee
Protected.

 

The
Trustee shall sign all supplemental indentures, except that the Trustee need
not sign any supplemental indenture that adversely affects its rights. As a
condition to executing or accepting any supplemental indenture, the Trustee may
request and rely on an Opinion of Counsel and an Officers’ Certificate stating
that such supplemental indenture is permitted hereunder and all conditions
precedent have been complied with, in the form set forth in Sections 11.04 and
11.05.

 

ARTICLE 10.

SUBORDINATION

 

Section 10.01.        Notes
Subordinated to Senior Indebtedness.

 

The
Company agrees, and each Holder by accepting a Note agrees, that the
Indebtedness evidenced by the Notes, including for all purposes of this Article
10, all repurchase and redemption obligations with respect to the Notes, is
subordinated in right of payment, to the extent and in the manner provided in
this Article 10, to the prior payment in full of all existing and future Senior
Indebtedness and that the subordination is for the benefit of and enforceable
by the holders of Senior Indebtedness, and authorizes and directs the Trustee
to take such action as may be necessary or appropriate to acknowledge or
effectuate the subordination as provided in this Article 10 and appoints the
Trustee as attorney-in-fact for any and all such purposes.

 

Only
Indebtedness of the Company which is Senior Indebtedness shall rank senior to
the Notes in accordance with the provisions set forth herein. This Article 10
shall remain in full force and effect as long as any Senior Indebtedness is
outstanding or any commitment to advance Senior Indebtedness exists, assuming
in the case of the Bank Facility that all conditions precedent to any such
advance could be satisfied.

 

Section 10.02.        Liquidation; Dissolution; Bankruptcy.

 

Upon
any payment or distribution, whether of cash, securities or other property, to
creditors of the Company in a liquidation (total or partial), reorganization or
dissolution of the Company, whether voluntary or involuntary, or in a
bankruptcy, reorganization, insolvency, receivership, assignment for the
benefit of creditors, marshalling of assets or similar proceeding relating to
the Company or its property:

 

57

 

(1)   holders of Senior Indebtedness
shall be entitled to receive payment in full, in cash or cash equivalents, of
such Senior Indebtedness before Holders shall be entitled to receive any
payment of principal of, or interest or Liquidated Damages, if any, on, or any
other distribution with respect to, the Notes; and

 

(2)   until the Senior Indebtedness
is paid in full as provided in clause (1) above, any distribution to which
Holders would be entitled but for this Article 10 shall be made to the holders
of Senior Indebtedness as their interests may appear;

 

in each case except that Holders may receive shares of
stock and debt securities that are subordinated to Senior Indebtedness to at
least the same extent and pursuant to the same or more stringent terms as are
the Notes.

 

Upon
any distribution of assets of the Company referred to in this Section 10.02,
the Trustee and the Holders shall be entitled to rely upon any order or decree
of a court of competent jurisdiction in which such bankruptcy, reorganization,
insolvency, receivership, assignment for the benefit of creditors, marshalling
of assets or similar proceedings are pending, or a certificate of the
liquidating trustee or agent or other such person making any distribution to
the Trustee or to the Holders, for the purpose of ascertaining the persons
entitled to participate in such distribution, the holders of Senior
Indebtedness, the amount thereof or payable thereon, the amount or amounts paid
or distributed thereon and all other facts pertinent thereto or to this Section
10.02. The Trustee shall be entitled to rely on the delivery to it of a written
notice by a person representing himself to be a holder of Senior Indebtedness
or a Representative, as the case may be, to establish that such notice has been
given by a holder of Senior Indebtedness or a Representative, as the case may
be. In the event that the Trustee determines, in good faith, that further
evidence is required with respect to the right of any person, as a holder of
Senior Indebtedness, to participate in any payment or distribution pursuant to
this Section 10.02, the Trustee may request such person to furnish evidence to
the reasonable satisfaction of the Trustee as to the amount of such Senior
Indebtedness held by such person, as to the extent to which such person is
entitled to participation in such payment or distribution and as to other facts
pertinent to the rights of such person under this Section 10.02, and, if such
evidence is not furnished, the Trustee may defer any payment to such person (or
to the Noteholder) pending judicial determination as to the right of such
person to receive such payment.

 

Section 10.03.        Default
on Senior Indebtedness.

 

No
direct or indirect payment by or on behalf of the Company under the Notes shall
be made if (i) any Designated Senior Indebtedness is not paid when due or (ii)
any other default on Designated Senior Indebtedness occurs and in the case of
this clause (ii) the maturity of such Designated Senior Indebtedness is
accelerated in accordance with its terms, unless, in either case, (x) the default
has been cured or waived and any such acceleration has been rescinded or (y)
such Designated Senior Indebtedness has been paid in full; provided, however, that the
Company may make any such direct or indirect payment under the Notes without
regard to the foregoing if the Company and the Trustee receive written notice
approving such payment from the Representative of such Designated Senior
Indebtedness. In addition, during the continuance of any other event of default
with respect to Designated Senior Indebtedness pursuant to which the maturity
of such Designated Senior Indebtedness may be accelerated

 

58

 

immediately
without further notice (except such notice as may be required to effect such
acceleration) or the expiration of any applicable grace periods, upon the
occurrence of (a) receipt by the Trustee of written notice from the
Representative with respect to, or the holders of at least a majority in
aggregate principal amount of, such Designated Senior Indebtedness then
outstanding or (b) if such event of default results from the acceleration of
the Notes, the date of such acceleration, no direct or indirect payment may be
made by the Company upon or in respect of the Notes for a period (a “Payment
Blockage Period”) commencing on the earlier of the date of receipt of such
notice by the Trustee or the date of such acceleration and ending 180 days
thereafter (unless such Payment Blockage Period shall be terminated by written
notice to the Trustee from such Representative or such holders). Not more than
one Payment Blockage Period in the aggregate may be commenced with respect to
the Notes during any period of 360 consecutive days, irrespective of the number
of defaults with respect to Senior Indebtedness during such period. In no event
will a Payment Blockage Period extend beyond 179 days from the date such
payment upon or in respect of the Notes was due, and there must be 180 days in
any 360-day period in which no Payment Blockage Period is in effect as to the
Company. For all purposes of this Section 10.03, no default or event of default
which existed or was continuing on the date of the commencement of the Payment
Blockage Period with respect to the Designated Senior Indebtedness initiating
such Payment Blockage Period shall be, or be made, the basis for the
commencement of a subsequent Payment Blockage Period by the Representative or
requisite holders of such Designated Senior Indebtedness whether or not within
a period of 360 consecutive days unless such default or event of default shall
have been cured or waived for a period of not less than 90 consecutive days.

 

Section 10.04.        When
Distribution Must Be Paid Over.

 

In the
event that the Company shall make any payment to the Trustee pursuant to the
Notes at a time when such payment is prohibited by Section 10.02 or 10.03, such
payment shall be held by the Trustee, in trust for the benefit of, and shall be
paid forthwith over and delivered to, the holders of Senior Indebtedness (pro
rata as to each of such holders on the basis of the respective amounts of
Senior Indebtedness held by them) or their Representatives, as their respective
interests may appear, for application to the payment of all Senior Indebtedness
remaining unpaid to the extent necessary to pay all Senior Indebtedness in full
in accordance with its terms, after giving effect to any concurrent payment or
distribution to or for the holders of Senior Indebtedness.

 

If a
distribution is made to Holders that because of this Article 10 should not have
been made to them, the Holders who receive the distribution shall hold it in
trust for holders of Senior Indebtedness and pay it over to them as their
interests may appear.

 

Section 10.05.        Notice
by Company.

 

The
Company shall promptly notify the Trustee and any Paying Agent by an
appropriate Officers’ Certificate of the Company delivered to a Trust Officer
and the Paying Agent of any facts known to the Company that would cause a
payment under the Notes of principal of or interest or Liquidated Damages, if any,
on the Notes to violate this Article 10, but failure to give such notice shall
not affect the subordination of the Notes to the Senior Indebtedness provided
in this Article 10.

 

59

 

Section 10.06.        Subrogation.

 

After
all Senior Indebtedness is paid in full and all commitments to advance Senior
Indebtedness have been terminated, and until the Notes are paid in full
pursuant to the Notes and this Indenture or otherwise, Holders shall be
subrogated to the rights of holders of Senior Indebtedness to receive
distributions applicable to Senior Indebtedness to the extent that
distributions otherwise payable to Holders have been applied to payment of
Senior Indebtedness. A distribution made under this Article 10 to holders of
Senior Indebtedness which otherwise would have been made to Holders is not, as
between the Company and the Holders, a payment by the Company on Senior
Indebtedness.

 

Section 10.07.        Relative
Rights.

 

This
Article 10 defines the relative rights of Holders and holders of Senior
Indebtedness. Nothing in this Indenture (but subject to the provisions of
paragraph 5 of the Notes) shall:

 

(1)   impair, as between the Company
and the Holders, the obligation of the Company, which is absolute and
unconditional, to pay principal of and interest on the Notes in accordance with
their terms;

 

(2)   affect the relative rights of
Holders and creditors of the Company other than such creditors as are holders
of Senior Indebtedness;

 

(3)   prevent the Trustee or any Holder
from exercising its available remedies upon a Default or Event of Default,
subject to the rights of holders of Senior Indebtedness to receive
distributions otherwise payable to Holders; or

 

(4)   create or imply the existence
of any commitment on the part of the holders of Senior Indebtedness to extend
credit to the Company, other than as set forth in the terms governing such
Senior Indebtedness.

 

Section 10.08.        Subordination
May Not Be Impaired by Company.

 

No
right of any present or future holder of Senior Indebtedness to enforce the
subordination of the Indebtedness evidenced by the Notes and this Article 10
shall be impaired by any act or failure to act by the Company or anyone in
custody of its assets or property or by its failure to comply with this Indenture.

 

Section 10.09.        Distribution
or Notice to Representatives.

 

Whenever
a distribution is to be made or a notice given to holders of Senior
Indebtedness, the distribution may be made and the notice given to their
Representatives, if any.

 

Section 10.10.        Rights
of Trustee and Paying Agent.

 

Notwithstanding
Section 10.02 or 10.03, the Trustee or any Paying Agent may continue to make
payments of principal of or interest on the Notes unless, in the case of the

 

60

 

Trustee,
a Trust Officer or, in the case of a Paying Agent other than the Trustee, an
officer of such Paying Agent, shall have received, at least three Business Days
prior to the date such payments are due and payable, written notice of the
occurrence of an event under Section 10.02 or 10.03 and that any payment under
the Notes would violate this Article 10. Only the Company or a Representative
with respect to or holders of a least a majority in principal amount of an
issue of Designated Senior Indebtedness may give such notice. Nothing contained
in this Section 10.10 shall limit the right of any holder of Senior
Indebtedness to recover payments as contemplated by Section 10.04.

 

The
Trustee in its individual or any other capacity may hold Senior Indebtedness
with the same rights it would have if it were not Trustee. Any Agent may do the
same with like rights. The Trustee shall be entitled to all the rights set
forth in this Article 10 with respect to Senior Indebtedness which may at any
time be held by it, to the same extent as any other holder of Senior
Indebtedness; and nothing in Article 7 shall deprive the Trustee of any of its
rights as such holder, except as otherwise provided by the TIA.

 

Section 10.11.        Trustee
Entitled to Assume Payments Not Prohibited in Absence of Notice.

 

Notwithstanding
any of the provisions of this Article 10 or any other provision of this
Indenture, unless a Trust Officer has received a written notice pursuant to
Section 10.10, the Trustee shall not at any time be charged with knowledge of
the existence of any facts which would prohibit the making of any payment to or
by the Trustee, and in the absence of such written notice the Trustee may make
such payment without liability or obligation to the Senior Indebtedness.

 

Section 10.12.        Application
by Trustee of Monies Deposited With It.

 

Nothing
contained in this Article 10 or elsewhere in this Indenture, or in the Notes,
shall (i) affect the obligation of the Company to make, or prevent the Company
from making, at any time except as specified in Section 10.02 or 10.03 to the
extent provided therein, payments at any time pursuant to the Notes, (ii)
prevent the application by the Trustee or any Paying Agent of any monies or the
proceeds of any U.S. Government Obligations received from the Company and held
by the Trustee or such Paying Agent in trust for the benefit of the Holders of
Notes as to which notice of redemption shall have been given, to the payment of
or on account of the principal of or interest or Liquidated Damages, if any, on
the Notes if, at the time such notice was given, a payment by the Company under
the Notes would not have been prohibited by the foregoing provisions of this
Article 10 or (iii) prevent the application by the Trustee or any Paying Agent
of any monies or the proceeds of any U.S. Government Obligations deposited with
it by the Company under Article 8 hereof to the payment of or on account of the
principal of or interest or Liquidated Damages, if any, on the Notes if, at the
time of such deposit, a payment by the Company under the Notes would not have
been prohibited by the foregoing provisions of this Article 10.

 

61

 

Section 10.13.        Trustee’s
Compensation Not Prejudiced.

 

Nothing
in this Article 10 shall apply to claims of, or payments to, the Trustee
pursuant to Section 7.07.

 

Section 10.14.        Officers’
Certificate.

 

If
there occurs any event referred to in Section 10.02, the Company shall promptly
give to the Trustee an Officers’ Certificate (on which the Trustee may
conclusively rely) identifying all holders of Senior Indebtedness and the
principal amount of Senior Indebtedness then outstanding held by each such
holder and stating the reasons why such Officers’ Certificate is being
delivered to the Trustee.

 

Section 10.15.        Certain
Payments.

 

Nothing
in this Article 10 shall prevent or delay (i) the Company from or in redeeming
any Notes pursuant to paragraph 5 of the Notes or otherwise purchasing any
Notes pursuant to any Legal Requirement relating to the gaming business of the
Company and its Subsidiaries or (ii) the receipt by the Holders of payments of
principal of and interest and Liquidated Damages, if any, on the Notes as
provided in Section 8.02.

 

Section 10.16.        Names
of Representatives.

 

The
Company shall from time to time, upon request of the Trustee, provide to the
Trustee an Officers’ Certificate setting forth the name and address of each
Representative of all outstanding Senior Indebtedness.

 

Section 10.17.        Article
10 Not to Prevent Events of Default or Limit Right to Accelerate.

 

The
failure to make a payment pursuant to the Notes by reason of any provision in
this Article 10 shall not be construed as preventing the occurrence of a
Default. Nothing in this Article 10 shall have any effect on the right of the
Holders or the Trustee to accelerate the maturity of the Notes.

 

Section 10.18.        Reliance
By Holders of Senior Indebtedness on Subordination Provisions.

 

Each
Holder by accepting a Note acknowledges and agrees that the foregoing
subordination provisions are, and are intended to be, an inducement and a
consideration to each holder of any Senior Indebtedness, whether such Senior
Indebtedness was created or acquired before or after the issuance of the Notes,
to acquire and continue to hold, or to continue to hold, such Senior
Indebtedness and such holder of Senior Indebtedness shall be deemed
conclusively to have relied on such subordination provisions in acquiring and
continuing to hold, or in continuing to hold, such Senior Indebtedness. No provision
in any supplemental indenture which modifies this Article 10 in any manner
adverse to the holders of Senior Indebtedness shall be effective against the
holders of Senior Indebtedness who have not consented thereto in accordance
with the provisions of the documents governing such Senior Indebtedness.

 

62

 

Section 10.19.        Proof
of Claim.

 

In the
event that the Company is subject to any proceeding under any Bankruptcy Law
and the Holders and the Trustee fail to file any proof of claim permitted to be
filed in such proceeding with respect to the Notes, then any Representative of
Designated Senior Indebtedness may file such proof of claim no earlier than the
later of (i) the expiration of 15 days after such Representative notifies the
Trustee of its intention to do so and (ii) 30 days preceding the last day
permitted to file such claim.

 

Section 10.20.        No
Fiduciary Duty Created to Holders of Senior Indebtedness.

 

With
respect to the holders of Senior Indebtedness, the Trustee undertakes to
perform or to observe only such of its covenants and obligations as are
specifically set forth in this Article 10, and no implied covenants or
obligations with respect to the holders of Senior Indebtedness shall be read
into this Indenture against the Trustee. The Trustee shall not be deemed to owe
any fiduciary duty to the holders of Senior Indebtedness, and, subject to the
provisions of Article 7, the Trustee shall not be liable to any holder of
Senior Indebtedness if it shall mistakenly pay over or deliver to Holders, the
Company or any other person, monies or assets to which any holder of Senior
Indebtedness shall be entitled by virtue of this Article 10 or otherwise.

 

ARTICLE 11.

MISCELLANEOUS

 

Section 11.01.        Trust
Indenture Act Controls.

 

If any
provision of this Indenture limits, qualifies or conflicts with another
provision which is required to be included in this Indenture by the TIA, the
required provision shall control.

 

Section 11.02.        Notices.

 

Any
notice or communication by the Company or the Trustee to the other is duly
given if in writing and delivered in person or mailed by overnight delivery
service to the recipient’s address stated in Section 11.10. The Company or the
Trustee by notice to the other may designate additional or different addresses
for subsequent notices or communications.

 

Any
notice or communication to a Noteholder shall be mailed by first-class mail to
his address shown on the register kept by the Registrar. Failure to mail a
notice or communication to a Noteholder or any defect in it shall not affect
its sufficiency with respect to other Noteholders.

 

If a
notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given when mailed, whether or not the addressee receives
it.

 

If the
Company mails a notice or communication to Noteholders, it shall mail a copy to
the Trustee and each Agent at the same time.

 

63

 

If any
notice is mailed to the Company in the manner provided above, a copy of such
notice shall be mailed, in the manner provided above, to Milbank, Tweed, Hadley
& McCloy LLP, 601 South Figueroa Street, Los Angeles, California 90017,
Attention:  Kenneth J. Baronsky, Esq.

 

All
other notices or communications shall be in writing.

 

Section 11.03.        Communication by Holders with Other
Holders.

 

Noteholders
may communicate pursuant to TIA § 312(b) with other Noteholders with respect to
their rights under this Indenture or the Notes. The Company, the Trustee, the
Registrar and anyone else shall have the protection of TIA § 312(c).

 

Section 11.04.        Certificate and Opinion as to
Conditions Precedent.

 

Upon
any request or application by the Company or any other obligor to the Trustee
to take any action under this Indenture, the Company or any other obligor, as
the case may be, shall furnish to the Trustee:

 

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

 

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

 

Section 11.05.        Statements Required in Certificate or
Opinion.

 

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

 

(i)            a statement that the
person making such certificate or opinion has read such covenant or condition;

 

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

 

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

 

(iv)          a statement as to
whether or not, in the opinion of such person, such condition or covenant has
been complied with.

 

64

 

Section 11.06.        Rules by Trustee and Agents.

 

The
Trustee may make reasonable rules for action by or a meeting of Noteholders. The
Registrar or Paying Agent may make reasonable rules and set reasonable
requirements for its functions.

 

Section 11.07.        Legal Holidays.

 

A “Legal
Holiday” is a Saturday, a Sunday or a day on which banking institutions in the
State of Nevada, New York or California are not required to be open. If a
payment date is a Legal Holiday at a place of payment, payment may be made at
that place on the next succeeding day that is not a Legal Holiday, and no
interest shall accrue for the intervening period.

 

Section 11.08.        No Recourse Against Others.

 

A director,
officer, employee or stockholder, as such, of the Company shall not have any
liability for any obligations of the Company under the Notes or the Indenture
or for any claim based on, in respect of or by reason of such obligations or
their creation. Each Noteholder by accepting a Note waives and releases all
such liability. The waiver and release are part of the consideration for the
issue of the Notes.

 

Section 11.09.        Counterparts.

 

This
Indenture may be executed in any number of counterparts and by the parties
hereto in separate counterparts, each of which when so executed shall be deemed
to be an original and all of which taken together shall constitute one and the
same agreement.

 

Section 11.10.        Variable Provisions.

 

The
Company initially appoints Deutsche Bank National Trust Company as Paying Agent
and Registrar, and the Trustee as authenticating agent.

 

The
first certificate pursuant to Section 4.03 shall be for the fiscal year ending
on the first December 31 to occur after the date of this Indenture.

 

The
reporting date for Section 7.06 is June 1 of each year. The first reporting
date is June 1, 2001.

 

The
Trustee shall always have a combined capital and surplus (including
subordinated capital notes) of at least $50,000,000 as set forth in its most recent
published annual report of condition.

 

The
Company’s address is:

 

STATION CASINOS, INC.

2411 West Sahara Avenue

Las Vegas, Nevada 
89102

 

65

 

The
Trustee’s address is:

 

LAW DEBENTURE TRUST COMPANY OF NEW YORK

767 3rd Avenue

New York, New York 
10017

 

Attention: 
Boris Treyger

 

Section 11.11.        Governing Law.

 

THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN THIS
INDENTURE AND THE NOTES, WITHOUT REGARD TO THE CONFLICTS OF LAWS PROVISIONS
THEREOF.

 

Section 11.12.        No Adverse Interpretation of Other
Agreements.

 

This
Indenture may not be used to interpret another indenture, loan or debt
agreement of the Company or a Subsidiary. Any such indenture, loan or debt
agreement may not be used to interpret this Indenture.

 

Section 11.13.        Successors.

 

All
agreements of the Company in this Indenture and the Notes shall bind its
successors. All agreements of the Trustee in this Indenture shall bind its
successor.

 

Section 11.14.        Severability.

 

In
case any provision in this Indenture or in the Notes shall be invalid, illegal
or unenforceable, the validity, legality and enforceability of the remaining
provisions shall not in any way be affected or impaired thereby.

 

Section 11.15.        Qualification of Indenture.

 

The
Company shall qualify this Indenture under the TIA and shall pay all costs and
expenses (including attorneys’ fees for the Company, the Trustee and the
Holders of the Notes) incurred in connection therewith, including, but not
limited to, costs and expenses of qualification of the, Indenture and the Notes
and printing this Indenture and the Notes. In connection with any such
qualification of this Indenture under the TIA, the Trustee shall be entitled to
receive from the Company any such Officers’ Certificates, Opinions of Counsel
or other documentation as it may reasonably request.

 

Section 11.16.        Table of Contents, Headings, etc.

 

The
Table of Contents, Cross-Reference Table and Headings of the Articles and
Sections of this Indenture have been inserted for convenience of reference
only, are not to be considered a part hereof, and shall in no way modify or
restrict any of the terms or provisions hereof.

 

66

 

[SIGNATURE PAGES FOLLOW]

 

 

67

 

SIGNATURES

 

	
  Dated: as of March 13, 2006

  	
  STATION CASINOS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Glenn C. Christenson

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Glenn C. Christenson

  
	
   

  	
   

  	
  Title:

  	
  Executive Vice President,

  
	
   

  	
   

  	
   

  	
  Chief Financial Officer,

  
	
   

  	
   

  	
   

  	
  Chief Administrative Officer

  
	
   

  	
   

  	
   

  	
  and Treasurer

  
	
   

  	
   

  
	
  Dated: as of March 13, 2006

  	
  LAW DEBENTURE TRUST COMPANY OF NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Patrick J. Healy

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Patrick J. Healy

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
							

 

 

EXHIBIT
A

 

UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR A NOTE IN DEFINITIVE FORM, THIS NOTE MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE
DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER
NOMINEE OF THE DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A
SUCCESSOR DEPOSITORY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS
CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY
TRUST COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR
ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY
CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER
NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE 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.

 

THE SECURITY (OR ITS PREDECESSOR) EVIDENCED HEREBY WAS
ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER SECTION 5 OF
THE UNITED STATES SECURITIES ACT OF 1933 (THE “SECURITIES ACT”), AND THE
SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN
THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH
PURCHASER OF THE SECURITY EVIDENCED HEREBY IS HEREBY NOTIFIED THAT THE SELLER
MAY BE RELYING ON THE EXEMPTION PROVIDED BY RULE 144A THEREUNDER. THE HOLDER OF
THE SECURITY EVIDENCED HEREBY AGREES FOR THE BENEFIT OF THE COMPANY THAT (A)
SUCH SECURITY MAY BE RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (1) (A)
INSIDE THE UNITED STATES TO A PERSON WHO THE SELLER REASONABLY BELIEVES IS A
QUALIFIED INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE
SECURITIES ACT IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, OR IN
ACCORDANCE WITH RULE 144 UNDER THE SECURITIES ACT, OR PURSUANT TO ANOTHER
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT (AND BASED
UPON AN OPINION OF COUNSEL IF THE COMPANY SO REQUESTS), (B) TO THE COMPANY, (C)
OUTSIDE THE UNITED STATES TO A FOREIGN PERSON IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT OR (D) PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (2) IN EACH CASE,
IN ACCORDANCE WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED
STATES OR ANY OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED
HEREBY OF THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.

 

A-1

 

STATION CASINOS, INC.

 

65/8%
Senior Subordinated Notes due 2018

 

	
   

  	
  CUSIP:

  
	
   

  	
   

  
	
   

  	
   

  
	
  No.

  	
  $

  

 

 

Station
Casinos, Inc., a Nevada corporation (the “Company”), promises to pay to Cede
& Co. or registered assigns, the principal sum of                                                    
Dollars on March 15, 2018.

 

Interest Payment
Dates:  March 15 and September 15,
commencing September 15, 2006

 

Record Dates:  March 1 and September 1 (whether or not a
Business Day)

 

Reference is
hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

Capitalized terms
used herein shall have the meanings assigned to them in the Indenture referred
to below unless otherwise indicated.

 

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

 

	
   

  	
  STATION CASINOS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
						

 

A-2

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

Law
Debenture Trust Company of New York, as Trustee, certifies that this is one of
the 65/8% Senior Subordinated Notes due 2018 referred to
in the within-mentioned Indenture.

 

	
  LAW DEBENTURE
  TRUST COMPANY OF NEW YORK

  as Trustee

  
	
   

  
	
   

  	
   

  
	
  By:

  	
  Dated:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
						

 

A-3

 

[REVERSE OF SECURITY]

 

STATION CASINOS, INC.

 

65/8%
SENIOR SUBORDINATED NOTES DUE 2018

 

1.             Interest.   STATION
CASINOS, INC., a Nevada corporation (the “Company”), which term includes any
successor corporation under the Indenture referred to herein), promises to pay
interest on the principal amount of this Note at the rate per annum shown above
and shall pay the Liquidated Damages, if any, payable pursuant to Section 5 of
the Registration Rights Agreement referred to below. The Company will pay
interest semi-annually on March 15 and September 15 of each year, commencing
September 15, 2006. Interest on the Notes will accrue from the most recent date
to which interest has been paid or, if no interest has been paid, from the date
of issuance of the Notes. Interest will be computed on the basis of a 360-day
year of twelve 30-day months.

 

2.             Method
of Payment.   The Company will pay interest on the Notes
(except defaulted interest) and Liquidated Damages, if any, to the persons who
are registered Holders of the Notes at the close of business on the record date
for the next interest payment date even though the Notes are cancelled after
the record date and on or before the interest payment date. Holders must
surrender the Notes to a Paying Agent to collect principal payments. The
Company will pay principal and interest and Liquidated Damages, if any, in
money of the United States that at the time of payment is legal tender for
payment of public and private debts. The Company, however, may pay principal
and interest and Liquidated Damages, if any, by check payable in such money,
which shall be mailed to a Holder’s registered address; provided that payment by wire transfer of
immediately available funds will be required with respect to principal of and
interest, premium and Liquidated Damages, if any, on, all Global Notes and all
other Certificated Notes the Holders of which shall have provided wire transfer
instructions to the Company or the Paying Agent.

 

3.             Paying
Agent and Registrar.   Deutsche Bank National Trust Company will
initially act as Paying Agent and Registrar. The Company may change any Paying
Agent, Registrar or co-registrar without prior notice to any Noteholder. The
Company or any of its Subsidiaries may act in any such capacity.

 

4.             Indenture.   The
Company issued the Notes under an Indenture dated as of March 13, 2006 (the “Indenture”)
by and between the Company and the Trustee. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect
on the date of the Indenture. The Notes are subject to, and qualified by, all
such terms, certain of which are summarized herein, and Noteholders are
referred to the Indenture and such Act for a statement of such terms. The Notes
are unsecured general obligations of the Company. The Indenture imposes certain
limitations on, among other things, the incurrence of indebtedness by the
Company or any of its Restricted Subsidiaries. In addition, the Indenture
imposes certain limitations on transactions by the Company or any of its
Restricted Subsidiaries with Affiliates

 

A-4

 

and Related Persons and on the ability of the Company or any of its
Restricted Subsidiaries to restrict distributions and dividends from
Subsidiaries. The limitations are subject to a number of important
qualifications and exceptions.

 

5.             Optional
Redemption.   The Company may redeem the Notes in whole or
in part, at redemption prices (expressed in percentages of principal amount)
set forth below, plus accrued and unpaid interest thereon, if any, and
Liquidated Damages, if any, to the redemption date, if redeemed during the
12-month period beginning March 15 of the years indicated below. The Notes may
not be so redeemed before March 15, 2011.

 

	
  Year

  	
   

  	
  Redemption Prices

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  102.484

  	
  %

  
	
  2012

  	
   

  	
  101.656

  	
  %

  
	
  2013

  	
   

  	
  100.828

  	
  %

  
	
  2014 and
  thereafter

  	
   

  	
  100.000

  	
  %

  

 

Notwithstanding the foregoing, each Holder by
accepting a Note agrees that if a record or beneficial owner of a Note is
required by any Gaming Authority to be found suitable, such owner shall apply
for a finding of suitability within 30 days after request of such Gaming
Authority. The applicant for a finding of suitability must pay all costs of the
investigation for such finding of suitability. If a record or beneficial owner
is required to be found suitable and is not found suitable by such Gaming
Authority, (a) such owner shall, upon request of the Company, dispose of such
owner’s Notes within 30 days or within that time prescribed by such Gaming
Authority, whichever is earlier, or (b) the Company may, at its option, redeem
such owner’s Notes at the lesser of (i) the principal amount thereof or (ii)
the price at which the Notes were acquired by such owner, together with, in
either case, Liquidated Damages, if any, and accrued interest to the date of
the finding of unsuitability by such Gaming Authority, all as more fully
provided in the Indenture.

 

6.             Notice
of Redemption.   Notice of redemption will be mailed at
least 30 days but not more than 60 days before the redemption date to each
Holder of Notes to be redeemed at his registered address. Notes in
denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000. In the event of a redemption of less than all of the
Notes, the Notes will be chosen for redemption by the Trustee in accordance
with the Indenture. On and after the redemption date, interest ceases to accrue
on Notes or portions of the Notes called for redemption.

 

If this Note is redeemed subsequent to a record date
with respect to any interest payment date specified above and on or prior to
such interest payment date, then any accrued interest will be paid to the
person in whose name this Note is registered at the close of business on such
record date.

 

7.             Subordination.   The
Notes are subordinated to Senior Indebtedness, as defined in the Indenture. To
the extent provided in the Indenture, Senior Indebtedness must be paid before
payments in respect of the Notes may be made under the Notes and the Indenture.
The Company agrees, and each Noteholder by accepting a Note agrees, to the
subordination

 

A-5

 

provisions contained in the Indenture and authorizes the Trustee to
give it effect and appoints the Trustee as attorney-in-fact for such purpose.

 

8.             Denominations,
Transfer, Exchange.   The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes shall be registered, and Notes may only be exchanged, as
provided in the Indenture. The Registrar may require a holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
any taxes and fees required by law or permitted by the Indenture. The Registrar
need not exchange or register the transfer of any Notes or portion of a Note
selected for redemption. Also, the Registrar need not exchange or register the
transfer of any Note for a period of 15 days before a selection of Note to be
redeemed.

 

9.             Persons
Deemed Owners.   The registered Holder of a Note may be
treated as its owner for all purposes, except as provided in paragraph 5
hereof.

 

10.           Amendments
and Waivers.   Subject to certain exceptions, the Indenture
or the Notes may be amended with the consent of the Holders of at least a
majority in principal amount of the then outstanding Notes, and certain
existing defaults may be waived with the consent of the Holders of a majority
in principal amount of the then outstanding Notes. Without the consent of any
Noteholder, the Indenture or the Notes may be amended, among other things, to
cure any ambiguity, defect or inconsistency, to provide for assumption of the
Company’s obligations to Noteholders in the case of mergers and consolidations
of the Company or to make any change that does not adversely affect the rights
of any Noteholder.

 

11.           Defaults
and Remedies.   An Event of Default is:  default in payment of interest on the Notes
for a period of 30 days; default in payment of principal on the Notes; failure
by the Company for 60 days after notice to it to comply with any of its other
agreements in the Indenture or the Notes or, in the case of the failure to
comply with certain specified covenants or agreements, without such notice or
passage of time; certain defaults under and acceleration prior to maturity of
certain other indebtedness of the Company; certain final judgments which remain
undischarged; certain events of bankruptcy or insolvency; or a revocation, suspension,
termination or involuntary loss of a Gaming License which results in the
cessation of operation of the Company’s casino business for more than 90
consecutive days. If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in principal amount of the then outstanding
Notes may declare all the Notes to be due and payable immediately, except that
in the case of an Event of Default arising from certain events of bankruptcy or
insolvency, all outstanding Notes become due and payable immediately without
further action or notice. Noteholders may not enforce the Indenture or the
Notes except as provided in the Indenture. The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Notes. Subject to
certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Noteholders notice of any continuing default
(except a default in payment of principal or interest) if it determines that
withholding notice is in their interests. The Company must furnish an annual
compliance certificate to the Trustee.

 

12.           Trustee
Dealings with Company.   Law Debenture Trust Company of New
York, the Trustee under the Indenture, in its individual or any other capacity,
may make loans to,

 

A-6

 

accept deposits from and perform services for the Company or its
Affiliates, and may otherwise deal with the Company or its Affiliates, as if it
were not Trustee.

 

13.           Change
of Control.   Upon the occurrence of a Change of Control
Triggering Event (as such term is defined in the Indenture), the Holders shall
have the right to require that the Company repurchase, and the Company shall
commence an offer to repurchase, all of the outstanding Notes at a Repurchase
Price in cash equal to 101% of the principal amount of such Notes plus
Liquidated Damages, if any, and accrued interest to the repurchase date, upon
the terms set forth in the Indenture.

 

14.           No
Recourse Against Others.   A director, officer, employee or
stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Notes or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each
Noteholder by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for the issue of the Notes.

 

15.           Authentication.   This
Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

 

16.           Additional
Rights of Holders of Transfer Restricted Securities.   In
addition to the rights provided to Holders of Notes under the Indenture,
Holders of Transferred Restricted Securities shall have all the rights set
forth in the Registration Rights Agreement dated as of the date of the
Indenture, between the Company and Banc of America Securities LLC, Deutsche
Bank Securities Inc., Wachovia Capital Markets, LLC, Wells Fargo Securities,
LLC, Greenwich Capital Markets, Inc., Calyon Securities (USA) Inc., Commerzbank
Capital Markets Corp., J.P. Morgan Securities Inc. and Scotia Capital (USA)
Inc. (the “Registration Rights Agreement”).

 

17.           Abbreviations.   Customary
abbreviations may be used in the name of a Noteholder or an assignee, such
as:  TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

Company will furnish to any Noteholder upon written
request and without charge a copy of the Indenture, which has in it the text of
this Note in larger type. Request may be made to:

 

STATION CASINOS, INC.

2411 West Sahara Avenue

Las Vegas, Nevada 
89102

Attn:  Chief
Financial Officer

 

A-7

 

SCHEDULE OF EXCHANGES OF
INTERESTS

IN THE GLOBAL NOTE

 

The
following exchanges of a part of this Global Note for an interest in another
Global Note or for a Certificated Note, or exchanges of a part of another
Global Note or Certificated Note for an interest in this Global Note, have been
made:

 

	
  DATE OF

  EXCHANGE

  	
   

  	
  AMOUNT OF DECREASE IN

  PRINCIPAL AMOUNT OF

  THIS GLOBAL NOTE

  	
   

  	
  AMOUNT OF INCREASE IN

  PRINCIPAL AMOUNT OF

  THIS GLOBAL NOTE

  	
   

  	
  PRINCIPAL AMOUNT OF

  THIS GLOBAL NOTE

  FOLLOWING SUCH

  DECREASE (OR INCREASE)

  	
   

  	
  SIGNATURE OF AUTHORIZED

  SIGNATORY OF TRUSTEE OR

  NOTE CUSTODIAN

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-8

 

ASSIGNMENT FORM

 

	
  To assign this Note, fill in the form below: (I) or
  (we) assign and transfer this Note to

  
	
   

  
	
   

  
	
  (Insert
  assignee’s soc. sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Print
  or type assignee’s name, address and zip code)

  

 

and irrevocably appoint                                                                                                                    
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

 

	
  Date:

  	
   

  	
   

  	
  Your Signature:

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name
  appears on the face of this Note)

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  
						

 

A-9

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to elect to have this Note repurchased by
the Company pursuant to Section 4.11 of the Indenture, check the box:  o

 

If you want to
elect to have only part of the Note purchased by the Company pursuant to
Section 4.11 of the Indenture, state the amount (which must be $1,000 or an
integral multiple of $1,000) you elect to have purchased:

 

	
  $

  	
   

  	
   

  

 

 

	
  Date:

  	
   

  	
   

  	
  Your signature:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name
  appears on the face of this Note)

  
	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  
								

 

A-10

 

EXHIBIT
B

 

THE RIGHTS ATTACHING TO
THIS REGULATION S TEMPORARY GLOBAL NOTE, AND THE CONDITIONS AND PROCEDURES
GOVERNING ITS EXCHANGE FOR CERTIFICATED NOTES, ARE AS SPECIFIED IN THE
INDENTURE (AS DEFINED HEREIN). NEITHER THE HOLDER NOR THE BENEFICIAL OWNERS OF
THIS REGULATION S TEMPORARY GLOBAL NOTES SHALL BE ENTITLED TO RECEIVE PAYMENT
OF INTEREST HEREON.

 

UNLESS AND UNTIL IT IS
EXCHANGED IN WHOLE OR IN PART FOR A NOTE IN DEFINITIVE FORM, THIS NOTE MAY NOT
BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY
OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE
DEPOSITORY OR BY THE DEPOSITORY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITORY
OR A NOMINEE OF SUCH SUCCESSOR DEPOSITORY. UNLESS THIS CERTIFICATE IS PRESENTED
BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY (55 WATER
STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR
REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS
REGISTERED IN THE NAME OF CEDE & CO. OR SUCH OTHER NAME AS MAY BE REQUESTED
BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE &
CO. OR SUCH OTHER ENTITY AS MAY BE 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.

 

THE SECURITY (OR ITS
PREDECESSOR) EVIDENCED HEREBY WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT
FROM REGISTRATION UNDER SECTION 5 OF THE UNITED STATES SECURITIES ACT OF 1933
(THE “SECURITIES ACT”), AND THE SECURITY EVIDENCED HEREBY MAY NOT BE OFFERED,
SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN
APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THE SECURITY EVIDENCED HEREBY
IS HEREBY NOTIFIED THAT THE SELLER MAY BE RELYING ON THE EXEMPTION PROVIDED BY
RULE 144A THEREUNDER. THE HOLDER OF THE SECURITY EVIDENCED HEREBY AGREES FOR
THE BENEFIT OF THE COMPANY THAT (A) SUCH SECURITY MAY BE RESOLD, PLEDGED OR
OTHERWISE TRANSFERRED, ONLY (1) (A) INSIDE THE UNITED STATES TO A PERSON WHO
THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE SECURITIES ACT IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A, OR IN ACCORDANCE WITH RULE 144 UNDER THE SECURITIES
ACT, OR PURSUANT TO ANOTHER EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT (AND BASED UPON AN OPINION OF COUNSEL IF THE COMPANY SO
REQUESTS), (B) TO THE COMPANY, (C) OUTSIDE THE UNITED STATES TO A FOREIGN PERSON
IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 904 UNDER THE SECURITIES ACT
OR (D) PURSUANT TO AN EFFECTIVE REGISTRATION

 

B-1

 

STATEMENT UNDER THE SECURITIES ACT AND (2) IN EACH CASE, IN ACCORDANCE
WITH THE APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY
OTHER APPLICABLE JURISDICTION AND (B) THE HOLDER WILL, AND EACH SUBSEQUENT
HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THE SECURITY EVIDENCED HEREBY OF
THE RESALE RESTRICTIONS SET FORTH IN (A) ABOVE.

 

B-2

 

STATION CASINOS, INC.

 

65/8%
Senior Subordinated Notes due 2018

 

	
   

  	
  CUSIP:

  
	
   

  	
   

  
	
  No. 

  	
  $

  

 

Station
Casinos, Inc., a Nevada corporation (the “Company”), promises to pay to Cede
& Co. or registered assigns, the principal sum of                                                             
Dollars on March 15, 2018.

 

Interest Payment Dates:  March 15
and September 15, commencing September 15, 2006

 

Record Dates:  March 1 and
September 1 (whether or not a Business Day)

 

Reference is
hereby made to the further provisions of this Security set forth on the reverse
hereof, which further provisions shall for all purposes have the same effect as
if set forth at this place.

 

Capitalized terms
used herein shall have the meanings assigned to them in the Indenture referred
to below unless otherwise indicated.

 

B-3

 

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

 

	
   

  	
  STATION CASINOS,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
  Attest:

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
					

 

B-4

 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

 

Law
Debenture Trust Company of New York, as Trustee, certifies that this is one of
the 65/8% Senior Subordinated Notes due 2018 referred to
in the within-mentioned Indenture.

 

	
  LAW DEBENTURE
  TRUST COMPANY OF NEW YORK

  as Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  Dated:

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  
						

 

B-5

 

[REVERSE OF SECURITY]

 

STATION CASINOS, INC.

 

65/8%
SENIOR SUBORDINATED NOTES DUE 2018

 

1.             Interest.   STATION
CASINOS, INC., a Nevada corporation (the “Company”), which term includes any
successor corporation under the Indenture referred to herein), promises to pay
interest on the principal amount of this Note at the rate per annum shown above
and shall pay the Liquidated Damages, if any, payable pursuant to Section 5 of
the Registration Rights Agreement referred to below. The Company will pay
interest semi-annually on March 15 and September 15 of each year, commencing
September 15, 2006. Interest on the Notes will accrue from the most recent date
to which interest has been paid or, if no interest has been paid, from the date
of issuance of the Notes. Interest will be computed on the basis of a 360-day
year of twelve 30-day months.

 

2.             Method
of Payment.   The Company will pay interest on the Notes
(except defaulted interest) and Liquidated Damages, if any, to the persons who
are registered Holders of the Notes at the close of business on the record date
for the next interest payment date even though the Notes are cancelled after
the record date and on or before the interest payment date. Holders must
surrender the Notes to a Paying Agent to collect principal payments. The
Company will pay principal and interest and Liquidated Damages, if any, in
money of the United States that at the time of payment is legal tender for
payment of public and private debts. The Company, however, may pay principal
and interest and Liquidated Damages, if any, by check payable in such money,
which shall be mailed to a Holder’s registered address; provided that payment by wire transfer of
immediately available funds will be required with respect to principal of and
interest, premium and Liquidated Damages, if any, on, all Global Notes and all
other Certificated Notes the Holders of which shall have provided wire transfer
instructions to the Company or the Paying Agent.

 

3.             Paying
Agent and Registrar.   Deutsche Bank National Trust Company
will initially act as Paying Agent and Registrar. The Company may change any
Paying Agent, Registrar or co-registrar without prior notice to any Noteholder.
The Company or any of its Subsidiaries may act in any such capacity.

 

4.             Indenture.   The
Company issued the Notes under an Indenture dated as of March 13, 2006 (the “Indenture”)
by and between the Company and the Trustee. The terms of the Notes include
those stated in the Indenture and those made part of the Indenture by reference
to the Trust Indenture Act of 1939 (15 U.S. Code §§ 77aaa-77bbbb) as in effect
on the date of the Indenture. The Notes are subject to, and qualified by, all
such terms, certain of which are summarized herein, and Noteholders are
referred to the Indenture and such Act for a statement of such terms. The Notes
are unsecured general obligations of the Company. The Indenture imposes certain
limitations on, among other things, the incurrence of indebtedness by the
Company or any of its Restricted Subsidiaries. In addition, the Indenture
imposes certain limitations on transactions by the Company or any of its
Restricted Subsidiaries with Affiliates

 

B-6

 

and Related Persons and on the ability of the Company or any of its
Restricted Subsidiaries to restrict distributions and dividends from
Subsidiaries. The limitations are subject to a number of important
qualifications and exceptions.

 

5.             Optional
Redemption.   The Company may redeem the Notes in whole or
in part, at redemption prices (expressed in percentages of principal amount)
set forth below, plus accrued and unpaid interest thereon, if any, and
Liquidated Damages, if any, to the redemption date, if redeemed during the
12-month period beginning March 1 of the years indicated below. The Notes may
not be so redeemed before March 15, 2011.

 

	
  Year

  	
   

  	
  Redemption Prices

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  2011

  	
   

  	
  102.484

  	
  %

  
	
  2012

  	
   

  	
  101.656

  	
  %

  
	
  2013

  	
   

  	
  100.828

  	
  %

  
	
  2014 and thereafter

  	
   

  	
  100.000

  	
  %

  

 

Notwithstanding the foregoing, each Holder by
accepting a Note agrees that if a record or beneficial owner of a Note is
required by any Gaming Authority to be found suitable, such owner shall apply
for a finding of suitability within 30 days after request of such Gaming
Authority. The applicant for a finding of suitability must pay all costs of the
investigation for such finding of suitability. If a record or beneficial owner
is required to be found suitable and is not found suitable by such Gaming
Authority, (a) such owner shall, upon request of the Company, dispose of such
owner’s Notes within 30 days or within that time prescribed by such Gaming
Authority, whichever is earlier, or (b) the Company may, at its option, redeem
such owner’s Notes at the lesser of (i) the principal amount thereof or (ii)
the price at which the Notes were acquired by such owner, together with, in
either case, Liquidated Damages, if any, and accrued interest to the date of
the finding of unsuitability by such Gaming Authority, all as more fully
provided in the Indenture.

 

6.             Notice
of Redemption.   Notice of redemption will be mailed at
least 30 days but not more than 60 days before the redemption date to each
Holder of Notes to be redeemed at his registered address. Notes in
denominations larger than $1,000 may be redeemed in part but only in whole
multiples of $1,000. In the event of a redemption of less than all of the
Notes, the Notes will be chosen for redemption by the Trustee in accordance
with the Indenture. On and after the redemption date, interest ceases to accrue
on Notes or portions of the Notes called for redemption.

 

If this Note is redeemed subsequent to a record date
with respect to any interest payment date specified above and on or prior to
such interest payment date, then any accrued interest will be paid to the
person in whose name this Note is registered at the close of business on such
record date.

 

7.             Subordination.   The
Notes are subordinated to Senior Indebtedness, as defined in the Indenture. To
the extent provided in the Indenture, Senior Indebtedness must be paid before
payments in respect of the Notes may be made under the Notes and the Indenture.
The Company agrees, and each Noteholder by accepting a Note agrees, to the
subordination

 

B-7

 

provisions contained in the Indenture and authorizes the Trustee to
give it effect and appoints the Trustee as attorney-in-fact for such purpose.

 

8.             Denominations,
Transfer, Exchange.   The Notes are in registered form
without coupons in denominations of $1,000 and integral multiples of $1,000. The
transfer of Notes shall be registered, and Notes may only be exchanged, as
provided in the Indenture. The Registrar may require a holder, among other
things, to furnish appropriate endorsements and transfer documents and to pay
any taxes and fees required by law or permitted by the Indenture. The Registrar
need not exchange or register the transfer of any Notes or portion of a Note
selected for redemption. Also, the Registrar need not exchange or register the
transfer of any Note for a period of 15 days before a selection of Note to be
redeemed.

 

9.             Persons
Deemed Owners.   The registered Holder of a Note may be
treated as its owner for all purposes, except as provided in paragraph 5
hereof.

 

10.           Amendments
and Waivers.   Subject to certain exceptions, the Indenture
or the Notes may be amended with the consent of the Holders of at least a
majority in principal amount of the then outstanding Notes, and certain
existing defaults may be waived with the consent of the Holders of a majority
in principal amount of the then outstanding Notes. Without the consent of any
Noteholder, the Indenture or the Notes may be amended, among other things, to
cure any ambiguity, defect or inconsistency, to provide for assumption of the
Company’s obligations to Noteholders in the case of mergers and consolidations
of the Company or to make any change that does not adversely affect the rights
of any Noteholder.

 

11.           Defaults
and Remedies.   An Event of Default is:  default in payment of interest on the Notes
for a period of 30 days; default in payment of principal on the Notes; failure
by the Company for 60 days after notice to it to comply with any of its other
agreements in the Indenture or the Notes or, in the case of the failure to
comply with certain specified covenants or agreements, without such notice or
passage of time; certain defaults under and acceleration prior to maturity of
certain other indebtedness of the Company; certain final judgments which remain
undischarged; certain events of bankruptcy or insolvency; or a revocation,
suspension, termination or involuntary loss of a Gaming License which results
in the cessation of operation of the Company’s casino business for more than 90
consecutive days. If an Event of Default occurs and is continuing, the Trustee
or the Holders of at least 25% in principal amount of the then outstanding
Notes may declare all the Notes to be due and payable immediately, except that
in the case of an Event of Default arising from certain events of bankruptcy or
insolvency, all outstanding Notes become due and payable immediately without
further action or notice. Noteholders may not enforce the Indenture or the
Notes except as provided in the Indenture. The Trustee may require indemnity
satisfactory to it before it enforces the Indenture or the Notes. Subject to
certain limitations, Holders of a majority in principal amount of the then
outstanding Notes may direct the Trustee in its exercise of any trust or power.
The Trustee may withhold from Noteholders notice of any continuing default
(except a default in payment of principal or interest) if it determines that
withholding notice is in their interests. The Company must furnish an annual
compliance certificate to the Trustee.

 

12.           Trustee
Dealings with Company.   Law Debenture Trust Company of New
York, the Trustee under the Indenture, in its individual or any other capacity,
may make loans to,

 

B-8

 

accept deposits from and perform services for the Company or its
Affiliates, and may otherwise deal with the Company or its Affiliates, as if it
were not Trustee.

 

13.           Change
of Control.   Upon the occurrence of a Change of Control
Triggering Event (as such term is defined in the Indenture), the Holders shall
have the right to require that the Company repurchase, and the Company shall
commence an offer to repurchase, all of the outstanding Notes at a Repurchase
Price in cash equal to 101% of the principal amount of such Notes plus
Liquidated Damages, if any, and accrued interest to the repurchase date, upon
the terms set forth in the Indenture.

 

14.           No
Recourse Against Others.   A director, officer, employee or
stockholder, as such, of the Company shall not have any liability for any
obligations of the Company under the Notes or the Indenture or for any claim
based on, in respect of or by reason of such obligations or their creation. Each
Noteholder by accepting a Note waives and releases all such liability. The
waiver and release are part of the consideration for the issue of the Notes.

 

15.           Authentication.   This
Note shall not be valid until authenticated by the manual signature of the
Trustee or an authenticating agent.

 

16.           Additional
Rights of Holders of Transfer Restricted Securities.   In
addition to the rights provided to Holders of Notes under the Indenture,
Holders of Transferred Restricted Securities shall have all the rights set
forth in the Registration Rights Agreement dated as of the date of the
Indenture, between the Company and Banc of America Securities LLC, Deutsche
Bank Securities Inc., Wachovia Capital Markets, LLC, Wells Fargo Securities,
LLC, Greenwich Capital Markets, Inc., Calyon Securities (USA) Inc., Commerzbank
Capital Markets Corp., J.P. Morgan Securities Inc. and Scotia Capital (USA)
Inc. (the “Registration Rights Agreement”).

 

17.           Abbreviations.   Customary
abbreviations may be used in the name of a Noteholder or an assignee, such
as:  TEN COM (= tenants in common), TEN
ENT (= tenants by the entireties), JT TEN (= joint tenants with right of
survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (=
Uniform Gifts to Minors Act).

 

Company will furnish to any Noteholder upon written
request and without charge a copy of the Indenture, which has in it the text of
this Note in larger type. Request may be made to:

 

STATION CASINOS, INC.

2411 West Sahara Avenue

Las Vegas, Nevada 
89102

Attn:  Chief
Financial Officer

 

B-9

 

SCHEDULE OF EXCHANGES OF
INTERESTS

IN THE GLOBAL NOTE

 

The
following exchanges of a part of this Global Note for an interest in another
Global Note or for a Certificated Note, or exchanges of a part of another
Global Note or Certificated Note for an interest in this Global Note, have been
made:

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount of

  this Global Note

  	
   

  	
  Amount of increase in

  Principal Amount of

  this Global Note

  	
   

  	
  Principal Amount of this

  Global Note

  following such decrease

  (or increase)

  	
   

  	
  Signature of 

  authorized officer of

  Trustee or Note

  Custodian

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

B-10

 

ASSIGNMENT FORM

 

	
  To assign this Note, fill in the form below: (I) or (we) assign and
  transfer this Note to

  
	
   

  
	
   

  
	
  (Insert assignee’s soc. sec. or tax I.D. no.)

  
	
   

  
	
   

  
	
   

  
	
   

  
	
  (Print or type assignee’s name, address and zip
  code)

  

 

and irrevocably appoint                                                                                                                                 
to transfer this Note on the books of the Company. The agent may substitute
another to act for him.

 

	
  Date: 

  	
   

  	
   

  	
  Your Signature:

  	
   

  	 

	
   

  	
   

  	
  (Sign exactly as your name
  appears on the face of this Note)

  
	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  Signature Guarantee:

  	
   

  	 

							

 

B-11

 

OPTION OF HOLDER TO ELECT
PURCHASE

 

If you want to elect to have this Note repurchased by
the Company pursuant to Section 4.11 of the Indenture, check the box:  o

 

If you want to
elect to have only part of the Note purchased by the Company pursuant to
Section 4.11 of the Indenture, state the amount (which must be $1,000 or an
integral multiple of $1,000) you elect to have purchased:

 

$

 

 

	
  Date:

  	
   

  	
   

  	
  Your signature:

  	
   

  	
   

  
	
   

  	
   

  	
  (Sign exactly as your name
  appears on the face of this Note)

  
	
   

  	
   

  
	
   

  	
  Tax Identification No.:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Signature Guarantee:

  	
   

  	
   

  
								

 

B-12

 

EXHIBIT
C

 

FORM OF CERTIFICATE OF
TRANSFER

 

STATION CASINOS, INC.

2411 West Sahara Avenue

Las Vegas, Nevada  89102

 

Law Debenture Trust
Company of New York

767 3rd Avenue

New York, New York  10017

 

Attention:
Corporate Trust Division

 

Re: 65/8%
SENIOR SUBORDINATED NOTES DUE 2018 OF STATION CASINOS, INC.

 

Reference
is hereby made to the Indenture, dated as of March 13, 2006 (the “INDENTURE”),
between Station Casinos, Inc., as issuer (the “COMPANY”), and Law Debenture
Trust Company of New York, as trustee. Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.

 

                                        (the
“TRANSFEROR”) owns and proposes to transfer the Note or Notes or interest in
such Note or Notes specified in Annex A hereto, in the principal amount of $                    in
such Note or Notes or interests (the “TRANSFER”), to                                      (the
“TRANSFEREE”) as further specified in Annex A hereto. In connection with the
Transfer, the Transferor hereby certifies that:

 

[CHECK ALL THAT APPLY]

 

1. o
CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE RULE
144A GLOBAL NOTE OR A CERTIFICATED NOTE PURSUANT TO RULE 144A. The Transfer is
being effected pursuant to and in accordance with Rule 144A under the United
States Securities Act of 1933, as amended (the “SECURITIES ACT”), and,
accordingly, the Transferor hereby further certifies that the beneficial
interest or Certificated Note is being transferred to a person that the Transferor
reasonably believed and believes is purchasing the beneficial interest or
Certificated Note for its own account, or for one or more accounts with respect
to which such person exercises sole investment discretion, and such person and
each such account is a “qualified institutional buyer” within the meaning of
Rule 144A in a transaction meeting the requirements of Rule 144A and such
Transfer is in compliance with any applicable blue sky securities laws of any
state of the United States. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Certificated Note will be subject to the restrictions on transfer enumerated
in the Private Placement Legend printed on the Rule 144A Global Note and/or the
Certificated Note and in the Indenture and the Securities Act.

 

C-1

 

2. o
CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN THE
REGULATION S TEMPORARY GLOBAL NOTE, THE REGULATION S GLOBAL NOTE OR A
CERTIFICATED NOTE PURSUANT TO REGULATION S. The Transfer is being effected
pursuant to and in accordance with Rule 903 or Rule 904 under the Securities
Act and, accordingly, the Transferor hereby further certifies that (i) the
transfer is not being made to a person in the United States and (x) at the time
the buy order was originated, the transferee was outside the United States or
such Transferor and any person acting on its behalf reasonably believed and
believes that the Transferee was outside the United States or (y) the
transaction was executed in, on or through the facilities of a designated
offshore securities market and neither such Transferor nor any person acting on
its behalf knows that the transaction was prearranged with a buyer in the
United States, (ii) no directed selling efforts have been made in contravention
of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the
Securities Act, (iii) the transaction is not part of a plan or scheme to evade
the registration requirements of the Securities Act, and (iv) if the proposed
transfer is being made prior to the expiration of the Restricted Period, the
transfer is not being made to a U.S. person or for the account or benefit of a
U.S. person (other than the Initial Purchaser). Upon consummation of the
proposed transfer in accordance with the terms of the Indenture, the
transferred beneficial interest or Certificated Note will be subject to the
restrictions on Transfer enumerated in the Private Placement Legend printed on
the Regulation S Global Note, the Temporary Regulation S Global Note and/or the
Certificated Note and in the Indenture and the Securities Act.

 

3. o
CHECK AND COMPLETE IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN
THE RESTRICTED GLOBAL NOTE OR A CERTIFICATED NOTE PURSUANT TO ANY PROVISION OF
THE SECURITIES ACT OTHER THAN RULE 144A OR REGULATION S. The Transfer is being
effected in compliance with the transfer restrictions applicable to beneficial
interests in Restricted Global Notes and Restricted Certificated Notes and
pursuant to and in accordance with the Securities Act and any applicable blue
sky securities laws of any state of the United States, and accordingly the
Transferor hereby further certifies that (check one):

 

(a) o
such Transfer is being effected pursuant to and in accordance with Rule 144
under the Securities Act; or

 

(b) o
such Transfer is being effected to the Company or a subsidiary thereof; or

 

(c) o
such Transfer is being effect pursuant to an effective registration statement
under the Securities Act and in compliance with the prospectus delivery
requirements of the Securities Act.

 

4. o
CHECK IF TRANSFEREE WILL TAKE DELIVERY OF A BENEFICIAL INTEREST IN AN
UNRESTRICTED GLOBAL NOTE OR OF AN UNRESTRICTED CERTIFICATED NOTE.

 

(a) o
CHECK IF TRANSFER IF PURSUANT TO RULE 144. (i) 
The Transfer is being effected pursuant to and in accordance with Rule
144 under the Securities Act

 

C-2

 

and in compliance with the transfer restrictions contained in the
Indenture and any applicable blue sky securities laws of any state of the
United States and (ii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain compliance
with the Securities Act. Upon consummation of the proposed Transfer in
accordance with the terms of the Indenture, the transferred beneficial interest
or Certificated Note will not longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Certificated Notes and in the Indenture.

 

(b) o
CHECK IF TRANSFER IS PURSUANT TO REGULATION S. (i) The Transfer is being effect
pursuant to and in accordance with Rule 903 or rule 904 under the Securities
Act and in compliance with the transfer restrictions contained in the Indenture
and any applicable blue sky securities laws of any state of the United States
and (ii) the restrictions on transfer contained in the Indenture and the
Private Placement Legend are not required in order to maintain compliance with
the Securities Act. Upon consummation of the proposed Transfer in accordance
with the terms of the Indentures, the transferred beneficial interest or
Certificated Note will no longer be subject to the restrictions on transfer
enumerated in the Private Placement Legend printed on the Restricted Global
Notes, on Restricted Certificated Notes and in the Indenture.

 

(c) o
CHECK IF TRANSFER IF PURSUANT TO OTHER EXEMPTION. (i) The Transfer is being
effected pursuant to and in compliance with an exemption from the registration
requirements of the Securities Act other than Rule 144m, Rule 903 or Rule 904
and in compliance with the transfer restrictions in the Indenture and any
applicable blue sky securities laws of any State of the United States and (ii)
the restrictions on transfer contained in the Indenture and the Private
Placement Legend are not required in order to maintain compliance with the
Securities Act. Upon consummation of the proposed Transfer in accordance with
the terms of the Indenture, the transferred beneficial interest or Certificated
Note will not be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Global Notes or Restricted
Certificated Notes and in the Indenture.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Trustee and the Company.

 

	
   

  	
   

  	
   

  
	
   

  	
  [Insert Name of Transferor]

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  Dated:

  	
   

  	
   

  
								

 

C-3

 

ANNEX A TO CERTIFICATE OF
TRANSFER

 

1.  The
Transferor owns and proposes to transfer the following:

 

[CHECK ONE OF (a) OR (b)]

 

(a)           o
a beneficial interest in the:

 

(i)            o
Rule 144A Global Note (CUSIP          ),
or

 

(ii)           o
Restricted Global Note (CUSIP          );
or

 

(b)           o
a Restricted Certificated Note.

 

2.  After the
Transfer the Transferee will hold:

 

[CHECK ONE]

 

(a)           o
a beneficial interest in the:

 

(i)            o
Rule 144A Global Note (CUSIP           ),
or

 

(ii)           o
Regulation S Global Note (CUSIP           ),
or

 

(iii)          o
Restricted Global Note (CUSIP           );
or

 

(iv)          o
(CUSIP           ), or
Unrestricted Global Note (CUSIP           );
or

 

(b)           o
a Restricted Certificated Note; or

 

(c)           o
an Unrestricted Certificated Note.

 

in accordance with the
terms of the Indenture.

 

C-4

 

EXHIBIT
D

 

FORM OF CERTIFICATE OF
TRANSFER OR EXCHANGE

 

STATION CASINOS, INC.

2411 West Sahara Avenue

Las Vegas, Nevada  89102

 

Law Debenture Trust
Company of New York

767 3rd Avenue

New York, New York  10017

 

Attention:  Corporate Trust Division

 

Re:  65/8% SENIOR
SUBORDINATED NOTES DUE 2018 OF STATION CASINOS, INC

 

Reference
is hereby made to the Indenture, dated as of March 13, 2006 (the “INDENTURE”),
between Station Casinos, Inc., as issuer (the “COMPANY”), and Law Debenture
Trust Company of New York, as trustee. Capitalized terms used but not defined
herein shall have the meanings given to them in the Indenture.

 

                             (the
“OWNER”) owns and proposed to exchange the Note or Notes specified herein, in
the principal amount of $                             in
such Note or Notes or interests (the “EXCHANGE”). In connection with the
Exchange, the Owner hereby certifies that:

 

1. EXCHANGE
OF RESTRICTED CERTIFICATED NOTES OR BENEFICIAL INTERESTS IN A RESTRICTED GLOBAL
NOTE FOR UNRESTRICTED CERTIFICATED NOTES OR BENEFICIAL INTERESTS IN AN
UNRESTRICTED GLOBAL NOTE

 

(a)  o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
BENEFICIAL INTEREST IN AN UNRESTRICTED GLOBAL NOTE. In connection with he
Exchange of the Owner’s beneficial interest in a Restricted Global Note for a
beneficial interest in an Unrestricted Global Note in an equal principal amount,
the Owner hereby certifies (i) the beneficial interest is being acquired for
the Owner’s own account without transfer, (ii) such Exchange has been effected
in compliance with the transfer restrictions applicable to the Global Notes and
pursuant to and in accordance with he United States Securities Act of 1933, as
amended (the “SECURITIES ACT”), (iii) the restriction on transfer contained in
the Indenture and the Private Placement Legend are not the restrictions on
transfer contained in the Indenture and the private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
beneficial interest in an Unrestricted Global Note is being acquired in
compliance with any applicable blue sky securities laws of any state of the
United States.

 

(b)  o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
UNRESTRICTED CERTIFICATED NOTE. In

 

D-1

 

connection with the Exchange of the Owner’s beneficial interest in a
Restricted Global Note for an Unrestricted Certificated Note, the Owner hereby
certifies (i) the Certificated Note is being acquired for the Owner’s own
account without transfer, (ii) such Exchange has been effected in compliance
with the transfer restrictions applicable to the Restricted Global Notes and
pursuant to and in accordance with the Securities Act, (iii) the restrictions
on transfer contained in the Indenture and the Private Placement Legend are not
required in order to maintain compliance with the Securities Act and (iv) the
Certificated Note is being acquired in compliance with any applicable blue sky
securities laws of any state of the United States.

 

(c)  o
CHECK IF EXCHANGE IS FROM RESTRICTED CERTIFICATED NOTE TO BENEFICIAL INTEREST
IN AN UNRESTRICTED GLOBAL NOTE. In connection with the Owner’s Exchange of a
Restricted Certificated Note for a beneficial interest in an Unrestricted
Global Note, the Owner hereby certifies (i) the beneficial interest is being
acquired for the Owner’s own account without transfer, (ii) such Exchange has
been effected in compliance with the transfer restrictions applicable to
Restricted Certificated Notes and pursuant to and in accordance with the
Securities Act, (iii) the restrictions on transfer contained in the Indenture
and the Private Placement Legend are not required in order to maintain
compliance with the Securities Act, and (iv) the beneficial interest is being
acquired in compliance with any applicable blue sky securities laws of any
state of the United States.

 

(d)  o
CHECK IF EXCHANGE IS FROM RESTRICTED CERTIFICATED NOTE TO UNRESTRICTED
CERTIFICATED NOTE. In connection with the Owner’s Exchange of a Restricted
Certificated Note for n Unrestricted Certificated Note, the Owner hereby
certifies (i) the Unrestricted Certificated Note is being acquired for the
Owner’s own account without transfer, (ii) such Exchange has been effected in
compliance with the transfer restrictions applicable to restricted Certificated
Notes and pursuant to and in accordance with the Securities Act, (iii) the
restrictions on transfer contained in the Indenture and the Private Placement
Legend are not required in order to maintain compliance with the Securities Act
and (iv) the Unrestricted Certificated Note is being acquired in compliance
with any applicable blue sky securities laws of any state of the United States.

 

2.  EXCHANGE
OF RESTRICTED CERTIFICATED NOTES OR BENEFICIAL INTERESTS IN RESTRICTED GLOBAL
NOTES FOR RESTRICTED CERTIFICATED NOTE OR BENEFICIAL INTERESTS IN RESTRICTED
GLOBAL NOTE

 

(a)  o
CHECK IF EXCHANGE IS FROM BENEFICIAL INTEREST IN A RESTRICTED GLOBAL NOTE TO
RESTRICTED CERTIFICATED NOTE. In connection with the Exchange of the Owner’s
beneficial interest in a Restricted Global Note for a Restricted Certificated
Note with an equal principal amount, the Owner hereby certifies that the
Restricted Certificated Note is being acquired for the Owner’s own account
without transfer. Upon consummation of the proposed Exchange in accordance with
the terms of the Indenture, the restricted Certificated Note issued will
continue to be subject to the restrictions on transfer enumerated in the
Private Placement Legend printed on the Restricted Certificated Note and in the
Indenture and the Securities Act.

 

(b)  o
CHECK IF EXCHANGE IS FROM RESTRICTED CERTIFICATED NOTE TO BENEFICIAL INTEREST
ON A RESTRICTED GLOBAL NOTE. In connection

 

D-2

 

with the Exchange of the Owner’s Restricted Certificated Note for a
beneficial interest in the [CHECK ONE] o
Rule 144A Global Note, o Regulation S
Global Note, o Restricted
Global Note, with an equal principal amount, the Owner hereby certifies (i) the
beneficial interest is being acquired for the Owner’s own account without
transfer and (ii) such Exchange has been effected in compliance with the
transfer restrictions applicable to the Restricted Global Notes and pursuant to
and in accordance with the Securities Act, and in compliance with any
applicable blue sky securities laws of any state of the United States. Upon
consummation of the proposed Exchange in accordance with the terms of the
Indenture, the beneficial interest issued will be subject to the restrictions
on transfer enumerated in the Private Placement Legend printed on the relevant
Restricted Global Note and in the Indenture and the Securities Act.

 

This
certificate and the statements contained herein are made for your benefit and
the benefit of the Trustee and the Company.

 

	
   

  	
   

  	
   

  
	
   

  	
  [Insert Name of Owner]

  
	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  
	
  Dated:

  	
   

  	
   

  
								

 

D-3

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