Document:

Secured Promissory Note

 Exhibit 10.41 
  
 THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), AND MAY NOT BE OFFERED OR SOLD UNLESS REGISTERED PURSUANT
TO SUCH ACT OR UNLESS AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. IN ADDITION, THIS NOTE MAY NOT BE TRANSFERRED TO ANY PERSON WHO IS NOT AN ELIGIBLE PERSON (AS DEFINED IN THIS NOTE). 
  
 SECURED PROMISSORY NOTE 
  

			
	 $40,000,000
	  	New York, New York
	 	  	March 18, 2004

  
 W I
T N E S S E T H : 
  
 FOR VALUE RECEIVED, the undersigned, RESORTS REAL ESTATE HOLDINGS, INC., a New Jersey corporation (the “Company”), hereby unconditionally promises to pay to the order of KERZNER INTERNATIONAL NORTH
AMERICA, INC., a Delaware corporation having an office at 1415 East Sunrise Blvd., Fort Lauderdale, Florida 33303 (“KINA”), or its permitted assigns, the principal sum of FORTY MILLION DOLLARS ($40,000,000), with interest on the
unpaid balance of such amount from the date hereof at the rates of interest specified herein, in each case on the dates specified herein. 
  

	1.	DEFINITIONS 

  
 Capitalized terms and other defined terms used in this Note (as such term is hereinafter defined) shall (unless otherwise provided elsewhere in this Note)
have the meanings given to them in Annex 1 hereto. 
  
 All
other undefined terms contained in this Note shall, unless the context indicates otherwise, have the meanings provided for by the Code as in effect in the State of New York to the extent the same are used or defined therein. 
  
 The words “include”, “includes”,
“including” and “such as” shall be construed as if followed by the phrase “without limitation.” 
  
 The words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Note as a
whole, as the same may from time to time be amended, modified or supplemented and not to any particular section, subsection or clause contained in this Note. 
  

 Unless the context otherwise requires, each term stated in either the singular or plural shall include
the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall include the masculine, the feminine and the neuter. 
  
 In the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and
the words “to” and “until” each mean “to but excluding” and the word “through” means “to and including”. 
  

	2.	TERMS OF PAYMENT 

  
 2.1. Principal. The Company shall pay the entire unpaid principal amount of this Note, together with accrued but unpaid interest thereon through
the date of such payment, on March 16, 2009. 
  
 2.2. Optional
Prepayment. The Company may, at any time, upon ten (10) days’ prior written notice, prepay the outstanding principal amount of this Note, without premium or penalty, in whole or ratably in part, together with accrued but unpaid interest
thereon, through the date of such prepayment on the principal amount prepaid. Any such prepayment by the Company shall be applied in the following order: (a) then due and payable fees and expenses; (b) then due and payable interest payments on the
Notes; and (c) the principal of the Notes. 
  
 2.3. Mandatory
Prepayment. The Company shall pay the outstanding principal amount of this Note, without premium or penalty, in whole, together with all accrued but unpaid interest thereon, through the date of such payment, in cash in immediately available
funds within one (1) Business Day following the earliest to occur of (a) the redemption, purchase or other acquisition at one time or from time to time of any outstanding principal amount of the Indenture Notes and/or any Permitted Indenture
Refinancing Debt, in the aggregate, which, when added to any and all payments referred to in clause (b) below, would exceed $36,000,000 in aggregate principal amount thereof, by any of the Resorts Group Companies, any obligor under any of the
Indenture Notes or any Permitted Indenture Refinancing Debt or any Affiliate of any of the foregoing, whether voluntary or involuntary (other than any such redemption required pursuant to Section 3.09 of the Indenture as in effect on the Issue
Date), (b) the payment at one time or from time to time of any outstanding principal amount of the Indenture Notes and/or any Permitted Indenture Refinancing Debt, in the aggregate, which, when added to any and all redemptions, purchases or other
acquisitions referred to in clause (a) above, would exceed $36,000,000 in aggregate principal amount thereof, whether by means of refinancing or otherwise (other than, in the case of the Indenture Notes, a Permitted Indenture Refinancing), or any
extension of any date by which payment of any principal amount of the Indenture Notes or any Permitted Indenture Refinancing Debt shall be due, (c) the payment at one time or from time to time of any outstanding principal amount of the CIT Credit
Facility Debt and/or any Permitted CIT Credit Facility Refinancing Debt (other than (i) a Permitted CIT Credit Facility Refinancing, (ii) in respect of the amortizing payment obligations (under either the CIT Credit Facility or any Permitted CIT
Credit Facility Refinancing Agreements) that are permitted to be incurred under the terms of the CIT Agreements (as defined in the Master Agreement) as in effect on the date hereof, (iii) in respect of revolver rights in effect under the CIT Credit
Facility or any Permitted CIT Credit Facility Refinancing Agreements, or (iv) any prepayments or advance payments at 

  

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one time or from time to time on the CIT Credit Facility Debt or any Permitted CIT Credit Facility Refinancing Debt, not to exceed $4,000,000 in the
aggregate), (d) the acceleration of the Indenture Notes pursuant to the terms of the Indenture or the acceleration of any Permitted Indenture Refinancing Debt pursuant to the terms of any of the Permitted Indenture Refinancing Agreements, (e) the
closing of a Premises Financing, (f) the making of a Change of Control Offer (as defined in the Indenture) that is accepted by any holder of Indenture Notes (or any comparable event (as well as a default or event of default upon the occurrence of a
change of control) under any of the Permitted Indenture Refinancing Agreements, (g) the exercise of an option to effect legal defeasance or covenant defeasance contemplated by the Indenture or by any of the Permitted Indenture Refinancing
Agreements, or the satisfaction and discharge of the Indenture or any of the Permitted Indenture Refinancing Agreements, (h) the sale, transfer, encumbrance or other disposition, whether or not for consideration, of any part of the Premises or any
interest therein, other than Permitted Exceptions (as defined in the First Mortgage), or (i) any Restricted Sale or Merger Event shall have occurred; provided, however, that nothing in this Section 2.3 shall affect
or restrict the rights, remedies and obligations of the parties under Section 4.2. 
  
 2.4. Interest; Payments on Business Day. 
  
 (a) The Company shall make payments to the Holder of interest at the Applicable Rate on the outstanding principal amount of the Notes semi-annually in arrears on September 15 and March 15 of each year, commencing
September 15, 2004 (each of the foregoing, an “Interest Payment Date”), such payments to be made in lawful money of the United States of America and in immediately available funds. All payments of interest hereunder shall be
computed on the basis of a 365-day year for the number of days elapsed. 
  
 (b) If any payment on this Note becomes due and payable on a day other than a Business Day, the maturity thereof shall be extended to the next succeeding Business Day and, with respect to payment of interest thereon, shall be payable at the
then Applicable Rate during such extension. 
  
 (c) So long as any
Event of Default shall be continuing, the interest rate applicable to (i) the outstanding principal amount of the Notes, (ii) any accrued but unpaid interest that is past due, and (iii) any other payment on this Note that is past due, shall be
increased by 2% per annum above the then Applicable Rate, which interest or payment under clauses (ii) and (iii) shall be due and payable on demand. 
  
 (d) Notwithstanding anything to the contrary set forth in this Section 2.4, if at any time until the Maturity Date the then Applicable Rate exceeds
the highest rate of interest permissible under any law which a court of competent jurisdiction shall, in a final determination, deem applicable hereto (the “Maximum Lawful Rate”), then, in such event, and so long as the Maximum
Lawful Rate would be so exceeded, the rate of interest payable hereunder shall be equal to the Maximum Lawful Rate; provided, however, that, to the extent permitted by applicable law, if at any time thereafter the
Applicable Rate is less than the Maximum Lawful Rate, the Company shall continue to pay interest hereunder at the Maximum Lawful Rate until such time as the total interest received by Holder hereunder is equal to the total interest which Holder
would have received had the Applicable Rate been (but for the operation of this 

  

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paragraph) the interest rate payable since the date hereof. Thereafter, the interest rate payable hereunder shall be the Applicable Rate unless and until the
Applicable Rate again exceeds the Maximum Lawful Rate, in which event this paragraph shall again apply. In no event shall the total interest received by Holder pursuant to the terms hereof exceed the amount which Holder could lawfully have received
had the interest due hereunder been calculated for the full term hereof at the Maximum Lawful Rate. If the Maximum Lawful Rate is calculated pursuant to this paragraph, such interest shall be calculated at a daily rate equal to the Maximum Lawful
Rate divided by the number of days in the year in which such calculation is made. If a court of competent jurisdiction, notwithstanding the provisions of this Section 2.4(d), shall make a final determination that Holder has received interest
hereunder in excess of the Maximum Lawful Rate, Holder shall, to the extent permitted by applicable law, promptly apply such excess first to any interest due and not yet paid under this Note, then to the principal amount of this Note (without
premium or penalty), then to other unpaid Obligations and thereafter shall refund any excess to the Company or as a court of competent jurisdiction may otherwise order. 
  
 2.5. Receipt of Payment. The Company shall make each payment under this Note not later than 1:00 p.m. (New York City
time) on the Business Day when due, in lawful money of the United States of America, in immediately available funds to Holder’s depository bank in the United States as designated by Holder from time to time for deposit in Holder’s
depositary account. For purposes only of computing interest hereunder, each payment shall be applied by Holder to this Note on the day such payment has been received by Holder in immediately available funds. 
  

	3.	SECURITY INTEREST 

  
 3.1. Security Interest. This Note is secured as provided in and shall have the benefit of: (a) the Security Agreement dated as of the Issue
Date (the “Security Agreement”), by the Company and Holdings in favor of the Holder and the other parties named therein; and (b) the Stock Pledge Agreement dated as of the Issue Date (the “Stock Pledge Agreement”),
by Holdings in favor of the Holder and the other parties named therein. 
  

	4.	EVENTS OF DEFAULT; RIGHTS AND REMEDIES 

  
 4.1. Events of Default. The occurrence of any one or more of the following events (regardless of the reason therefor) shall constitute an
“Event of Default” hereunder: 
  
 (a) The Company
shall fail to make any payment of principal of or interest on, or any other amount owing in respect of, the Obligations when due and payable, or declared due and payable (whether at stated maturity, pursuant to an acceleration of any of the Notes,
pursuant to a prepayment obligation or otherwise). 
  
 (b) The
Company or any other Resorts Group Company shall fail to perform, keep or observe, or shall permit to occur a breach or violation of, any of the provisions of (i) Sections 4.3, 4.9 through 4.14 (inclusive), 4.16,
4.17, 4.18, 4.19(b), 4.19(c) or 4.19(d), 5.1, 5.4, 5.5 or 5.6 of the Master Agreement, (ii) Section 5 of the Subordination Agreement, (iii) Sections 2.07,
8.01 or 8.03 of the First Mortgage, or (iv) the Environmental Indemnity Agreement. 
  

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 (c) The Company or any other Resorts Group Company shall fail to perform, keep or observe any other
provision of this Note, the Master Agreement or any other Transaction Document (other than the provisions referred to in Section 4.1(b)) and the same shall remain unremedied for a period ending on the first to occur of thirty (30) days after
the Company shall have received written notice of any such failure from Holder or forty five (45) days after the Company shall have become aware thereof. 
  
 (d) A default shall occur under any other agreement, document or instrument to which the Company, Holdings, Resorts, RIH, New Pier or any New Guarantor is
a party or by which any of its property is bound (other than the Indenture or any Permitted Indenture Refinancing Agreements) and such default results in Indebtedness of the Company, Holdings, Resorts, RIH, New Pier or any New Guarantor, or a
portion thereof, in an aggregate amount exceeding $3,500,000, to become due prior to its stated maturity or prior to its regularly scheduled dates of payment. 
  

(e) Any of the assets having an aggregate value in excess of $3,500,000 of the Company or Holdings shall be attached, seized, levied upon or subjected
to a writ or distress warrant, or come within the possession of any receiver, trustee, custodian or assignee for the benefit of creditors of the Company or Holdings and shall remain unstayed or undismissed for sixty (60) consecutive days; or any
Person, other than the Company or Holdings shall apply for the appointment of receiver, trustee or custodian for any of the assets of the Company or Holdings and such application shall remain unstayed or undismissed for sixty (60) consecutive days.

  
 (f) A case or proceeding shall have been commenced against the
Company or Holdings in a court having competent jurisdiction, seeking a decree or order in respect of the Company or Holdings (i) under title 11 of the United States Code, as now constituted or hereafter amended, or any other applicable Federal,
state or foreign bankruptcy or other similar law, (ii) appointing a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) of the Company or Holdings or of any substantial part of the properties of the Company or
Holdings, or (iii) ordering the winding-up or liquidation of the affairs of Holdings or the Company and such case or proceeding shall remain undismissed or unstayed for sixty (60) consecutive days or such court shall enter a decree or order granting
the relief sought in such case or proceeding. 
  
 (g) The Company
or Holdings shall (i) file a petition seeking relief under title 11 of the United States Code, as now constituted or hereafter amended, or any other applicable Federal, state or foreign bankruptcy or other similar law, (ii) consent to the
institution of proceedings thereunder or to the filing of any such petition or to the appointment of or taking possession by a custodian, receiver, liquidator, assignee, trustee or sequestrator (or similar official) of the Company or Holdings or of
any substantial part of the properties of the Company or Holdings, (iii) fail generally to pay its debts as such debts become due, or (iv) take any corporate action in furtherance of any such action. 
  
 (h) Final judgment or judgments (after the expiration of all times to appeal
therefrom) for the payment of money in excess of $3,500,000 in the aggregate shall be rendered against the Company or Holdings and the same shall not be (i) fully covered by insurance in 

  

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accordance with Section 4.7 of the Master Agreement, or (ii) vacated, stayed, bonded, paid or discharged within a period of sixty (60) days. 
  
 (i) Any of the Gaming Approvals shall be revoked, terminated or suspended or
expire without having been renewed or replaced if the same will have a Material Adverse Effect. 
  
 (j) Any representation or warranty made or deemed made by the Company or any other Resorts Group Company in any of the Transaction Documents, shall prove
to have been incorrect when made or deemed made in any material respect.  
  
 (k) An event of default shall have occurred under the Indenture or under any of the Permitted Indenture Refinancing Agreements, which has resulted in any of the Indenture Notes or any Permitted Indenture Refinancing
Debt, as the case may be, becoming due and payable before it otherwise would have been due and payable. 
  
 (l) Any Guarantee is held in any judicial proceeding to be unenforceable or invalid in whole or in part or ceases for any reason to be in full force and
effect or any Guarantor, or any person acting on behalf of any Guarantor, denies or disaffirms or threatens to deny or disaffirm its obligations under its Guarantee. 
  
 (m) The Company shall cease at any time to be (i) a Wholly Owned Subsidiary of Holdings, or (ii) an Affiliate of Resorts,
RIH, New Pier or any other Guarantor. 
  
  
 (n) Except for Permitted Exceptions (as defined in the First Mortgage), if the Property the subject of the First Mortgage or any part thereof becomes
subject (i) to any Lien which is superior to the Lien of the First Mortgage, or (ii) to any mechanic’s, materialman’s or other Lien which is or is asserted to be superior to the Lien of the First Mortgage, and any such Lien shall remain
undischarged (by payment, bonding, or otherwise) for ten (10) Business Days after Company shall have acquired knowledge thereof unless contested in accordance with the terms of the First Mortgage. 
  
 (o) If Company (i) consummates a transaction which results in a violation of
a state statute regulating government plans subjecting KINA to liability, or (ii) engages in a non-exempt prohibited transaction under the Employee Retirement Income Security Act of 1974, as amended, and the regulations promulgated thereunder (as
the same may be amended from time to time, “ERISA”). 
  
 (p) If the assets of Company or any Guarantor are at any time treated as “plan assets”, whether by operation of law or under regulations promulgated under ERISA. 
  
 (q) Any of the provisions of the CIT Subordination Agreement shall not be complied with or adhered to in accordance with
their terms by CIT Group/Equipment Financing, Inc. or the Debtor Group (as defined in the CIT Subordination Agreement) 
  
 4.2. Remedies. If any Event of Default specified in Section 4.1 shall have occurred and be continuing, the Majority Holders may, by written
notice to the Company, 

  

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declare all Obligations to be forthwith due and payable, whereupon all such Obligations shall become and be due and payable, without presentment, demand,
protest or further notice of any kind, all of which are hereby expressly waived by the Company; provided, however, that upon the occurrence of an Event of Default specified in Section 4.1(e), Section 4.1(f)
or Section 4.1(g), such Obligations shall become due and payable without declaration, notice or demand by any Holder. Notwithstanding anything herein to the contrary, the failure of Holdings to perform, keep or observe any of the provisions
of Sections 4.19(b), 4.19(c) or 4.19(d) of the Master Agreement shall not be deemed an Event of Default hereunder if, prior to or simultaneously with the occurrence of any event specified in such provisions, either (i) the
Holders shall have been irrevocably and indefeasibly paid an amount in the aggregate equal to the entire principal amount of the Notes, plus accrued and unpaid interest thereon through the date of such payment plus any and all other amounts then due
to KINA or the other Holders pursuant to the Transaction Documents, or (ii) (A) the Holders shall have been irrevocably and indefeasibly paid an amount in the aggregate equal to the Guarantee Amount (as defined in the Guarantees) in effect as of the
Cut-off Date (assuming the Cut-off Date was the date of payment) (as defined in the Guarantees), (B) Company shall have executed and proffered to KINA or its assigns (or its or their designee) a bargain and sale deed with a covenant as to
grantor’s acts in recordable form conveying marketable title to the Property (as defined in the First Mortgage), subject only to Permitted Exceptions (as defined in the First Mortgage), and sufficient to enable KINA or its assigns (or its or
their designee) to obtain an owner’s policy of title insurance for the Property, subject only to Permitted Exceptions, (x) substantially the same as the owner’s policy of title insurance in connection with its acquisition of the Property
assuming that such owner’s policy is then readily available to owners of property, or (y) provided that the owner’s policy set forth in clause (x) is not available, such other owner’s policy of title insurance which may be available
to owners of similarly situated properties of similar type in Atlantic City, New Jersey, (C) the Lease Agreement shall have been effectively terminated and the rights of any tenants claiming by, through or under such Lease Agreement shall have been
effectively terminated (other than the rights of tenant under that certain lease agreement for Real Property between KINA and 19 North Illinois Avenue Associates, L.L.C., dated April 15, 1999), and (D) Company shall have paid all transfer taxes and
fees incurred in connection with the delivery and recordation of the bargain and sale deed executed and proffered by Company to KINA or its assigns (or its or their designee), if any. Once the events in clause (i) or clause (ii) above shall have
occurred, KINA or the Holders shall surrender for cancellation the Notes. 
  
 4.3. Waivers by the Company. Except as otherwise provided for in this Note, the Company hereby waives presentment, demand and protest and notice of presentment, dishonor, notice of intent to accelerate and
notice of acceleration and any other formality. The Company acknowledges that it has been advised by counsel of its choice with respect to this Note and the transactions evidenced by this Note. 
  

	5.	MISCELLANEOUS 

  
 5.1. Complete Agreement; Modification of Note. This Note (together with the other Transaction Documents) constitutes the complete agreement between
the parties with respect to the subject matter hereof. No amendment or waiver of any provision of this Note, nor consent to any departure by the Company therefrom, shall in any event be effective unless the 

  

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same shall be in writing and signed by Holder, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose
for which given. 
  
 5.2. Sale of Interest. (a) Subject to
the New Jersey Casino Control Act, including the need for prior approval of a transfer by the New Jersey Casino Control Commission, and applicable securities law transfer restrictions, Holder may sell, assign or transfer to one or more other Persons
all or a portion of its rights and obligations under any Note held by Holder; provided, however, that the prior consent of the Company will be required for a transfer of any Note to a Competitor. Notwithstanding the
foregoing, the Company’s consent shall be deemed given if the Company fails to grant or deny its consent (and in the case of a denial, with a specific statement of the reasons therefor) within ten (10) Business Days of Holder’s request
therefor (which request must specify that the consent shall be deemed given within such time period in the event of such failure) and under no circumstances shall the Company’s consent be required if an Event of Default shall have occurred and
be continuing. In addition, KIL and its Subsidiaries may pledge this Note to any institutional bank lender or any collateral agent (including The Bank of Nova Scotia or CIBC) for institutional lenders providing financing to KIL or any of its
Subsidiaries and any such institutional bank lender or collateral agent that is a bank may pledge this Note to the Federal Reserve System pursuant to Regulation A promulgated under the Federal Reserve Act of 1913, as amended. The Company hereby
consents to any acquisition of the Note by any such institutional bank lenders or any such collateral agent pursuant to such pledge subject to the New Jersey Casino Control Act, including but not limited to the need for prior approval of a transfer
by the New Jersey Casino Control Commission, and applicable securities transfer restrictions. Any transfer by such pledgee to third parties, however, shall be subject to the first two sentences of this Section 5.2(a). If Holder assigns or
otherwise transfers all or any part of the Note in accordance with this paragraph, the Company shall, upon the request of Holder, issue new Notes and shall register the transfer on its books upon surrender of the old Note. Each Note shall bear the
legend contained in this Note and no transfer may be made of Notes to a Person other than an Eligible Person or unless such assignment of such Note and other Notes being assigned is in an aggregate principal amount of at least $2,500,000.

  
 (b) If required pursuant to Gaming Laws, the Company may
notify a Holder of one or more of the Notes, or any interest therein, that such Holder is required to transfer such Note(s) or interest therein or that the Company elects to redeem such Note(s) (in which event such redemption shall be treated as an
optional prepayment under Section 2.2) or interest therein. Such notice shall be given ten (10) days before the required date of transfer or redemption, as the case may be, and shall be accompanied by evidence demonstrating that such transfer
or redemption is required pursuant to Gaming Laws. Upon receipt of a notice in accordance with the foregoing, such Holder shall cooperate with the Company in effectuating the required transfer or redemption within the time period set forth in such
notice, not to be less than the minimum notice period set forth in the foregoing sentence. Further, if the transfer or redemption of the Note is triggered by notice from the Gaming Authority that the Holder is disqualified, commencing on the date
the Gaming Authority serves the disqualification notice upon the Company: (i) the Holder shall no longer receive any interest on this Note if and only for so long as such interest is not permitted to be paid pursuant to such Gaming Laws, but the
provisions hereof shall not affect the Company’s obligation to pay accrued interest then unpaid;; (ii) the 

  

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Holder shall no longer exercise, directly or through any trustee or nominee, any right conferred by this Note; and (iii) the Holder shall not receive any
remuneration in any form from RIH for services or otherwise if and only for so long as such remuneration is not permitted to be paid pursuant to such Gaming Laws. 
  
 (c) Under no circumstances shall the Company be permitted to assign any of its obligations under this Note to any person
other than Resorts and any attempt by the Company to assign such obligations to any person other than Resorts shall be null and void. 
  
 5.3. Fees and Expenses. If Holder shall employ counsel or other advisors for advice or other representation or shall incur reasonable legal or
other costs and expenses in connection with (a) any amendment, modification or waiver, or consent requested by the Company with respect to, this Note or Holder’s rights hereunder or (b) any litigation, contest, dispute, suit, proceeding or
action (whether instituted by Holder, the Company or any other Person) in any attempt to enforce any rights of Holder against the Company, then, and in any such event, the attorneys’ and other parties’ fees arising from such services,
including those of any appellate proceedings, and all expenses, costs, charges and other fees incurred by such counsel, and others, in any way or respect arising in connection with or relating to any of the events or actions described in this
Section shall be payable, on demand, by the Company to Holder and shall be additional secured obligations under this Note. Without limiting the generality of the foregoing, such expenses, costs, charges and fees may include: paralegal fees, costs
and expenses; court costs and expenses; photocopying and duplicating expenses; court reporter fees, costs and expenses; long distance telephone charges; air express charges; telegram charges; secretarial overtime charges; and expenses for travel,
lodging and food paid or incurred in connection with the performance of such legal services. 
  
 5.4. No Waiver by Holder. Holder’s failure, at any time or times, to require strict performance by the Company of any provision of this Note shall not waive, affect or diminish any right of Holder
thereafter to demand strict compliance and performance therewith. Any suspension or waiver by Holder of a Default or an Event of Default shall not suspend, waive or affect any other Default or Event of Default under this Note whether the same is
prior or subsequent thereto and whether of the same or of a different type. None of the undertakings, agreements, warranties, covenants and representations of the Company contained in this Note and no Default or Event of Default by the Company under
this Note shall be deemed to have been suspended or waived by Holder, unless such suspension or waiver is by an instrument in writing signed by Holder (as such term is defined in the applicable provision hereof) and directed to the Company
specifying such suspension or waiver. Notwithstanding the foregoing, the provisions of the Notes may be amended, modified or waived with the written consent of the Majority Holders, except, the following provisions may not be amended without the
consent of the Holders of all Notes if the effect thereof is to: (a) extend the scheduled due date for any payment of principal of any of the Notes; (b) change the currency in which the Notes are payable, or (c) change this Section 5.4.

  
 5.5. Remedies Cumulative. The enumeration of the rights
and remedies of KINA and any Holder set forth in this Note and the other Transaction Documents is not intended to be exhaustive and the exercise by KINA or any Holder of any right or remedy shall not preclude the exercise of any other right or
remedy herein or in any of the other Transaction 

  

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Documents, all of which shall be cumulative, and shall be in addition to any other right or remedy given hereunder or thereunder or that may now or hereafter
exist at law or in equity or by suit or otherwise. No delay or failure to take any action on the part of KINA or any Holder in exercising any right, remedy, power or privilege shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right, remedy, power or privilege preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege or shall be construed to be a waiver of any Default or any Event of Default. No
course of dealing between or among KINA and any of the Holders, any of the Guarantors, the Company or Holdings shall be effective to change, modify or discharge any provision of this Note or any of the other Transaction Documents or to constitute a
waiver of any Default or Event of Default unless such change, modification, discharge or waiver is acknowledged in writing by KINA and each Holder. Nothing contained in this Note shall release the Company from any of its obligations under any
Transaction Document to which it is a party except to the extent of amounts irrevocably and indefeasibly paid under the Transaction Documents in respect of such obligations. The obligations of the Company hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason (other than the irrevocable and indefeasible payment in full in cash of the Obligations and as otherwise set forth herein), and shall not be subject to any defense of set-off or
counterclaim. 
  
 5.6. WAIVER OF JURY TRIAL. THE COMPANY
WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS NOTE. 
  
 5.7. Severability. Wherever possible, each provision of this Note shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Note shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining
provisions of this Note. 
  
 5.8. Parties. This Note shall
be binding upon, and inure to the benefit of, the successors of the Company and Holder and, subject to Section 5.2, the assigns of Holder. 
  
 5.9. Authorized Signature. Until Holder shall be notified by the Company to the contrary, the signature upon any document or instrument delivered
pursuant hereto of any duly elected officer of the Company shall bind the Company and be deemed to be the act of the Company. 
  
 5.10. Governing Law. IN ALL RESPECTS, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, THIS NOTE AND THE OBLIGATIONS ARISING
HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES THEREOF REGARDING CONFLICT OF LAWS, AND ANY
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA. Holder and the Company agree to submit to personal jurisdiction and to waive any objection as to venue in the federal and state courts of the County of New York, State of New York. Service of process
on the Company or Holder in any action arising out of or relating to any of the Notes shall be 

  

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effective if mailed to such party in accordance with Section 5.11. Nothing herein shall preclude Holder or the Company from bringing suit or taking
other legal action in any other jurisdiction. 
  
 5.11.
Notices. All notices, requests, demands, approvals, consents, waivers and other communications required or permitted to be given under this Note (each, a “Notice”) shall be in writing and shall be (a) delivered personally,
(b) mailed by first-class, registered or certified mail, return receipt requested, postage pre-paid, (c) sent by next-day or overnight mail or delivery, or (d) sent by facsimile transmission, provided that the original copy thereof also is sent by
pre-paid, first class certified or registered mail or by next-day or overnight mail or personal delivery: 
  

			
	(i)	  	 if to the Company, to:
  
 Resorts Real Estate Holdings, Inc.
 c/o Resorts International Hotel,
Inc.
 1133 Boardwalk
 Atlantic City, New Jersey
 Facsimile:    (609) 340-7896
 Attention:    Ms. Audrey Oswell

	
	with copies to:
		
	 	  	 Willkie Farr & Gallagher LLP
 787 Seventh
Avenue
 New York, NY 10019
 Facsimile:    (212) 728-8111
 Attention:    Thomas M. Cerabino,
Esq.

		
	 (ii)
	  	if to Holder, to:
		
	 	  	 Kerzner International North America, Inc.
 c/o Kerzner
International Limited
 Coral Towers
 Paradise Island, The
Bahamas
 Facsimile:    (242) 363-4581
 Attention:    General Counsel

	
	with copies to:
		
	 	  	 Proskauer Rose LLP
 1585 Broadway
 New York, NY 10036
 Facsimile:    (212) 969-2900
 Attention:    James P. Gerkis,
Esq.

  
 or, in each case at such other address
as may be specified in a Notice to the Company or Holder, as the case may be. Any Notice shall be deemed effective and given upon receipt (or intentional refusal of receipt by the addressee of such Notice). 
  

 -11- 

 5.12. Benefits of Transaction Documents. This Note is entitled to the benefits of the other
Transaction Documents. 
  
 5.13. Section Titles. The
Section titles and Table of Contents contained in this Note are and shall be without substantive meaning or content of any kind whatsoever and are not a part of the agreement between the parties hereto. 
  
 5.14. Exhibits, etc. All exhibits, schedules and annexes to this Note
constitute part of this Note and are hereby incorporated by this reference in this Note. 
  
 5.15. Purchase Agreement. The payment in full of the outstanding principal amount of this Note shall constitute the satisfaction in full of the purchase price payable under the Purchase Agreement. 

 

 -12- 

 IN WITNESS WHEREOF, this Note has been duly executed in New York, New York as of the date first written
above. 
  

			
	RESORTS REAL ESTATE HOLDINGS, INC.
		
	By:	 	/s/    NICHOLAS L. RIBIS
	 	 	

	 	 	 Name:  Nicholas L. Ribis
 Title:    Vice President

  

 -13- 

  
 Annex 1 
  
 Certain Definitions and Rules of Interpretation 
  
 “Affiliate” shall mean, with respect to any Person, any
other Person which directly or indirectly controls, or is under common control with, or is controlled by, such Person; provided, that the Company shall not be deemed to be an Affiliate of any Wholly Owned Subsidiary of the Company and no Wholly
Owned Subsidiary of the Company shall be deemed to be an Affiliate of any other Wholly Owned Subsidiary. As used in this definition, “control” (including, with its correlative meanings, “controlled by” and
“under common control with”) shall mean possession, directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities or partnership or other ownership interests, by
contract or otherwise). 
  
 “Applicable Rate”
shall mean (a) 0% per annum for the period from and including the Issue Date through but excluding September 29, 2004, (b) 4% per annum for the period from and including September 29, 2004 through but excluding the second anniversary of the Issue
Date, (c) 6% per annum for the period from and including the second anniversary of the Issue Date through but excluding the fourth anniversary of the Issue Date, (d) 9% per annum for the period from and including the fourth anniversary of the Issue
Date through but excluding the fifth anniversary of the Issue Date, and (e) 12% per annum thereafter. 
  
 “Assignment” shall have the meaning set forth in the Master Agreement. 
  
 “Business Day” shall mean any day that is not a Saturday, a Sunday or a day on which banks are required or
permitted to be closed in the States of New York or New Jersey. 
  
 “Capital Lease” as applied to any person, shall mean any lease of any Property by that person as lessee which, in conformity with GAAP, is required to be classified and accounted for as a capital lease on the balance sheet
of that person. 
  
 “Capital Lease Obligations”
shall mean, for any person, all obligations of such person to pay rent or other amounts under a Capital Lease, and, for purposes of this Note, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with
GAAP. 
  
 “Casino Property” shall have the
meaning set forth in the Master Agreement. 
  
 “CIT Credit
Facility” shall have the meaning set forth in the Master Agreement. 
  
 “CIT Credit Facility Debt” shall mean any Indebtedness incurred under, evidenced by or relating to the CIT Credit Facility. 
  
 “CIT Subordination Agreement” shall have the meaning set forth in the Master Agreement. 
  

 “Code” shall mean the Uniform Commercial Code of the jurisdiction with respect to which
such term is used, as in effect from time to time. 
  
 “Company” shall have the meaning ascribed thereto in the first paragraph of this Note, together with its successors and permitted assigns, including in connection with any permitted merger. 
  
 “Competitor” shall mean any Person that owns or operates a
casino in Atlantic City, New Jersey on the date of transfer of the Note. 
  
 “Contingent Obligation” shall mean, as to any person, any obligation of such person guaranteeing or intended to guarantee any Indebtedness, leases, dividends or other obligations (“primary
obligations”) of any other person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of such person, whether or not contingent, (a) to purchase any such primary obligation or any
property constituting direct or indirect security therefor; (b) to advance or supply funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor; (c) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such
primary obligation; or (d) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided, however, that the term Contingent Obligation shall not include endorsements of
instruments for deposit or collection in the ordinary course of business, any product warranty in the ordinary course of business and any lease guarantees executed by any Resorts Group Company in the ordinary course of business. The amount of any
Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which
such person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated potential liability in respect thereof (assuming such person is required
to perform thereunder) as determined by such person in good faith. 
  
 “Default” shall mean any event or condition that constitutes an Event of Default or that would become, with notice or lapse of time or both, an Event of Default. 
  
 “Eligible Person” shall mean a Person who is, to the extent required under applicable Gaming Laws,
registered or licensed with, approved, qualified or found suitable by, or not disapproved, denied a license, qualification or approval or found unsuitable (whichever may be required under applicable Gaming Law). 
  
 “Environmental Indemnity Agreement” shall have the meaning
set forth in the Master Agreement. 
  
 “Equity
Interests” shall mean, with respect to any person, any and all shares, interests, participations or other equivalents, including membership interests (however designated, whether voting or non-voting), of capital of such person, including,
if such person is 

  

 
a partnership, partnership interests (whether general or limited) and any other interest or participation that confers on a person the right to receive a
share of the profits and losses of, or distributions of assets of, such person, whether outstanding on the Issue Date or issued thereafter. 
  
 “Event of Default” shall have the meaning set forth in Section 4.1. 
  
 “First Mortgage” shall have the meaning set forth in the Master Agreement. 
  
 “GAAP” shall mean generally accepted accounting principles
set forth as of the relevant date in the opinions and pronouncements of the Accounting Principles Board of the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or
agencies with similar functions of comparable stature and authority within the U.S. accounting profession), which are applicable to the circumstances as of the date of determination. For purposes of clarity, accounts of one party required to be
disclosed in the accounts of another party solely as a result of disclosure required by the Securities and Exchange Commission under “pushdown” accounting shall not be treated as the accounts of such other party unless otherwise required
under GAAP. 
  
 “Gaming Approvals” shall mean all
licenses, permits, registrations, authorities, consents, waivers, orders, findings of suitability or other approvals required to be obtained from, and all filings, notices or declarations required to be obtained from, and all filings, notices or
declarations required to be made with, the New Jersey Casino Control Commission (including any successors thereto) to permit the Company and its Affiliates to conduct the businesses in the jurisdictions regulated by the New Jersey Casino Control
Commission (including any successors thereto) after the Issue Date in substantially the same manner as heretofore conducted. 
  
 “Gaming Authority” means the New Jersey Casino Control Commission and the New Jersey Division of Gaming Enforcement (including any
successors to either of them), and any other New Jersey governmental authority which regulates gaming in any jurisdiction in the State of New Jersey in which any of the Resorts Group Companies conduct gaming activities and has jurisdiction over such
persons. 
  
 “Gaming Law” means any New Jersey
Law relating to gaming or gaming activities established by any Gaming Authority. 
  
 “Guarantee” shall mean (i) the guarantee dated as of the Issue Date from Holdings in favor of Holder and the other parties named therein, (ii) the guarantee dated as of the Issue Date from Resorts,
RIH and New Pier in favor of Holder and the other parties named therein (the “RRN Guarantee”), or (iii) any guarantee issued by a Subsidiary of Resorts pursuant to Section 5.6 of the Master Agreement. 
  
 “Guarantor” shall mean any issuer of a Guarantee.

  
 “Holder” shall, unless the context otherwise
requires, mean, at any time, any holder of all or any portion of the Notes at such time, which on the Issue Date shall be KINA. 
  
 “Holdings” shall mean Colony RIH Holdings, Inc., a Delaware corporation. 
  

 “Indebtedness” of any person shall mean, without duplication, (a) all obligations of
such person for borrowed money; (b) all obligations of such person evidenced by bonds, debentures, notes or similar instruments; (c) all obligations of such person under conditional sale or other title retention agreements relating to property
purchased by such person; (d) all obligations of such person issued or assumed as the deferred purchase price of property or services (excluding trade accounts payable and accrued obligations incurred in the ordinary course of business and amounts
payable to repurchase Stock in excess of the amount paid in accordance with Section 5.9 of the Master Agreement); (e) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise,
to be secured by) any Lien on property owned or acquired by such person, whether or not the obligations secured thereby have been assumed (provided, that if such obligations have not been assumed, the amount of such Indebtedness included for the
purposes of this definition will be the amount equal to the lesser of the fair market value of such property and the amount of the Indebtedness secured); (f) all Capital Lease Obligations (including synthetic lease obligations) and Purchase Money
Obligations of such person; (g) all obligations of such person in respect of Interest Rate Protection Agreements, foreign currency exchange agreements or other interest or exchange rate hedging arrangements; (h) all obligations of such person as an
account party in respect of letters of credit and bankers’ acceptances, except obligations in respect of letters of credit issued in support of obligations not otherwise constituting Indebtedness shall not constitute Indebtedness except to the
extent such letter of credit is drawn and not reimbursed within two Business Days; and (i) all Contingent Obligations of such person in respect of Indebtedness or obligations of others of the kinds referred to in clauses (a) through (h) above. The
Indebtedness of any person shall include the Indebtedness of any partnership in which such person is a general partner unless recourse is limited, in which case the amount of such Indebtedness shall be the limited amount. The amount of Indebtedness
of the type referred to in clause (g) above of any person shall be zero unless and until such Indebtedness shall be terminated, in which case the amount of such Indebtedness shall be the then termination payment due thereunder by such person.

  
 “Interest Rate Protection Agreement” shall
mean, for any person, an interest rate swap, cap or collar agreement or similar arrangement between such person and one or more financial institutions providing for the transfer or mitigation of interest risks either generally or under specific
contingencies. 
  
 “Indenture” shall mean that
certain Indenture dated as of March 22, 2002, among Resorts, as Issuer, the Guarantors named therein (including RIH and New Pier), and Bankers Trust Company, as Trustee. 
  
 “Indenture Notes” shall mean the Notes (as defined in the Indenture). 
  
 “Issue Date” shall mean
[                    ], 2004. 
  
 “KIL” shall mean Kerzner International Limited, a corporation organized under The Commonwealth of the Bahamas. 
  
 “KINA” shall have the meaning ascribed thereto in the first
paragraph of this Note. 
  

 “Lease Agreement” shall have the meaning set forth in the Master Agreement. 

 
 “Lease Amendment” shall have the meaning set forth in the
Master Agreement. 
  
 “Lien” shall mean, with
respect to any Property, any mortgage, lien, pledge, claim, charge, security interest or encumbrance of any kind, any other type of preferential arrangement in respect of such Property having the effect of a security interest, including any
easement, right-of-way or other encumbrance on title to Real Property, and any agreement to give any of the foregoing. 
  
 “Majority Holders” shall mean the holders of at least a majority of the outstanding principal amount of the Notes. 
  
 “Master Agreement” shall mean that certain Master Agreement
dated as of the Issue Date, among KINA, the Company, Holdings, Resorts, RIH and New Pier. 
  
 “Material Adverse Effect”, with respect to a specified Person, shall mean a material adverse effect on (i) the business, assets, operations or financial or other condition of such specified Person and
its Subsidiaries taken as a whole, (ii) the Company’s ability to pay the Obligations in accordance with the terms thereof, or (iii) any Guarantor’s ability to pay any amounts owed by it under its Guarantee. 
  
 “Maturity Date” shall mean the date on which principal on
the Notes has been paid in full. 
  
 “New Jersey Casino
Control Act” is set forth in New Jersey Statutes Annotated 5:12-1 et seq. as amended from time to time. 
  
 “New Jersey Casino Control Commission” is the commission defined in New Jersey Statutes Annotated 5:12-14 as amended from time to time.

  
 “New Pier” shall mean New Pier Operating
Company, Inc., a New Jersey corporation. 
  
 “Note” and “Notes” shall, unless the context otherwise requires, mean this Note, including all amendments, modifications and supplements hereto and any notes delivered in substitution or exchange for such
note, and shall refer to the Notes as the same may be in effect at the time such reference becomes operative. 
  
 “Notice” shall have the meaning set forth in Section 5.11. 
  
 “Obligations” shall mean all debts, liabilities, and obligations for monetary amounts (whether or not such
amounts are liquidated or determinable) owing by the Company and the other Resorts Group Companies to any Holder and arising under any of the Notes or the other Transaction Documents, and all covenants and duties regarding such amounts, of any kind
or nature, present or future, whether or not evidenced by any note, agreement or other instrument, arising under any of the Notes or the other Transaction Documents. This term includes, without limitation, all interest, charges, expenses,
attorneys’ fees and any other sum 

  

 
chargeable to the Company or any other Resorts Group Company under any of the Notes or other Transaction Document. 
  
 “Option Agreement” shall mean the Option Agreement dated as
of April 25, 2001, as amended, between KINA and Resorts. 
  
 “Permitted CIT Credit Facility Refinancing” shall mean a refinancing of all or a portion of the CIT Credit Facility Debt that is not inconsistent or in conflict with the CIT Subordination Agreement, provided that such
Permitted CIT Credit Facility Refinancing may not increase the principal amount of the CIT Credit Facility Debt and may not permit more than $5,000,000 of the CIT Credit Facility Debt previously borrowed and repaid to be reborrowed on or after June
30, 2005. 
  
 “Permitted CIT Credit Facility Refinancing
Agreements” shall mean any agreement or instrument evidencing or relating to any Permitted CIT Credit Facility Refinancing Debt. 
  
 “Permitted CIT Credit Facility Refinancing Debt” shall mean the Indebtedness of RIH incurred solely in connection with a Permitted CIT
Credit Facility Refinancing. 
  
 “Permitted Indenture
Refinancing” shall mean a refinancing of the Indenture Notes, the sole purpose of which is to reduce the interest rate on the Indenture Notes, provided that such Permitted Indenture Refinancing may not increase the principal amount or
extend the maturity date of, or otherwise adversely change the economic terms or other material terms of, the Indenture Notes. 
  
 “Permitted Indenture Refinancing Agreements” shall mean any agreement or instrument evidencing or relating to any Permitted Indenture
Refinancing Debt. 
  
 “Permitted Indenture Refinancing
Debt” shall mean the Indebtedness of Resorts incurred solely in connection with a Permitted Indenture Refinancing. 
  
 “Person” or “person” shall mean any individual, corporation, company, voluntary association, partnership, limited
liability company, joint venture, trust, other entity, unincorporated organization or government (or any agency, instrumentality or political subdivision thereof). 
  
 “Premises” shall have the meaning set forth in the Option Agreement. 
  
 “Premises Financing” shall mean a financing where a
substantial portion of the net proceeds thereof are projected to be used to develop all or a portion of the Premises. 
  
 “Property” shall mean any right, title or interest in or to property or assets of any kind whatsoever, whether real, personal or mixed
and whether tangible or intangible and including all contract rights, real property interests, trademarks, trade names, equipment and proceeds of the foregoing and Equity Interests or other ownership interests of any person. 
  

 “Purchase Agreement” shall have the meaning set forth in the Master Agreement.

  
 “Purchase Money Obligation” shall mean, for
any person, the obligations of such person in respect of Indebtedness incurred for the purpose of financing all or any part of the purchase price of any Property (including Equity Interests of any person) or the cost of installation, construction or
improvement of any property or assets and any refinancing thereof; provided, however, that such Indebtedness is incurred within 135 days after such acquisition of such Property by such person. 
  
 “Real Property” shall mean all right, title and interest of
any Resorts Group Company (including, without limitation, any leasehold estate) in and to a parcel of real property owned or operated by any Resorts Group Company, whether by lease, license or other use or occupancy agreement, together with, in each
case, all improvements and appurtenant fixtures, equipment, personal property, easements and other property and rights incidental to the ownership, lease or operation thereof or thereon. 
  
 “Resorts” shall mean Resorts International Hotel Casino, Inc. (f/k/a Colony RIH Acquisitions, Inc.), a
Delaware corporation. 
  
 “Resorts Group Company”
shall mean the Company, Holdings, Resorts, RIH, New Pier and any Subsidiary that issues a Guaranty, individually and, in the plural usage, collectively. 
  
 “Restricted Sale or Merger Event” shall mean (i) the occurrence of any event (A) if the result thereof would constitute an Event of
Default (as such term is defined in the Indenture as in effect on the Issue Date) in respect of the obligations of Resorts, RIH, New Pier or any New Guarantor under the asset sale restrictions of Section 4.11 of the Indenture as in effect on the
Issue Date, or (B) Resorts, RIH, New Pier or any New Guarantor shall, directly or indirectly, in a single transaction or series of related transactions (1) consolidate or merge with or into another person, or (2) sell, assign, transfer, lease,
convey or otherwise dispose of all or substantially all of its properties, if the result thereof would constitute an Event of Default (as such term is defined in the Indenture as in effect on the Issue Date), or (ii) the Casino Property, the
Property (as defined in the First Mortgage) or any substantial part thereof shall be sold, assigned, transferred, leased, conveyed or otherwise disposed (“Transferred”), except as permitted by the First Mortgage, whether by Transfer
of assets, by merger, consolidation or amalgamation, by Transfer of stock or other equity interests, or otherwise (it being understood that Transfer shall be deemed to include any joint venture or partnership or similar arrangement in respect of the
ownership or use of the Casino Property, the Property (as defined in the First Mortgage) or any substantial part thereof, the granting to any Person of an option to cause the Transfer of the Casino Property, the Property (as defined in the First
Mortgage) or any substantial part thereof, or the entering into of any contract or agreement to Transfer the Casino Property, the Property (as defined in the First Mortgage) or any substantial part thereof). 
  
 “RIH” shall mean Resorts International Hotel, Inc., a New
Jersey corporation. 
  
 “Security Agreement”
shall have the meaning set forth in Section 3.1. 
  

 “Stock” shall mean all shares, options, warrants, general or limited partnership
interests, limited liability company interests, participations or other equity securities or interests or equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company or other entity, whether voting or
nonvoting, including, without limitation, common stock, preferred stock, or any other “equity security” (as such term is defined in Rule 311-1 of the General Rules and Regulations promulgated under the Exchange Act of 1934, as amended).

  
 “Stock Pledge Agreement” shall have the
meaning set forth in Section 3.1. 
  
 “Subordination Agreement” shall have the meaning set forth in the Master Agreement. 
  
 “Subsidiary” shall mean, with respect to any person, any corporation, partnership or other entity of which at least a majority of the
securities or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or other persons performing similar functions of such corporation, partnership or other entity (irrespective of
whether or not at the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity shall have or might have voting power by reason of the happening of any contingency) is at the time
directly or indirectly owned or controlled by such person and/or one or more Subsidiaries of such person. 
  
 “Termination of Option Agreement” shall have the meaning set forth in the Master Agreement. 
  
 “Transaction Documents” shall mean the Master Agreement, the
Notes, the Purchase Agreement, the Security Agreement, the Lease Agreement, the Lease Amendment, the Assignment, the Guarantees, the Stock Pledge Agreement, the Environmental Indemnity Agreement, the First Mortgage, the Termination of Option
Agreement, the CIT Subordination Agreement and the Subordination Agreement, and, in each case, all documents related thereto (including any certificate, instrument or written statement contemplated by or made or delivered pursuant thereto or in
connection therewith) and all exhibits, appendices, schedules and annexes to any thereof, in each case (unless the context otherwise requires) as the same may be amended, supplemented or modified from time to time in accordance with its terms.

  
 “Wholly Owned Subsidiary” shall mean, with
respect to any person, any corporation, partnership or other entity of which all of the Equity Interests (other than, in the case of a corporation, directors’ qualifying shares or nominee shares required under applicable law) are directly or
indirectly owned or controlled by such person and/or one or more Wholly Owned Subsidiaries of such person.Purchase and Sale Agreement

 Exhibit 10.42 
  

  
 PURCHASE AND SALE
AGREEMENT 
  
 BY AND BETWEEN 
  
 KERZNER INTERNATIONAL NORTH AMERICA, INC. 
 as Seller 
  
 AND 
  
 RESORTS REAL ESTATE HOLDINGS, INC. 
 as Purchaser 
  
 Premises: 
  
 Certain Parcels located in Atlantic City, New Jersey 
  

  

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

			
	1.	  	 Definition of Certain Terms
	  	1
			
	2.	  	 Sale of Premises and Acceptable Title
	  	4
			
	3.	  	 Purchase Price and Purchase Money Note and Mortgage
	  	5
			
	4.	  	 Seller’s Representations to Purchaser
	  	6
			
	5.	  	 Purchaser’s Representations to Seller
	  	8
			
	6.	  	 Seller’s Closing Obligations and Deliveries
	  	9
			
	7.	  	 Purchaser’s Closing Obligations and Deliveries
	  	10
			
	8.	  	 Apportionments
	  	11
			
	9.	  	 Closing and Closing Costs
	  	12
			
	10.	  	 “As-Is” Condition
	  	12
			
	11.	  	 Broker
	  	13
			
	12.	  	 Notices
	  	13
			
	13.	  	 Parking Facilities Lease
	  	15
			
	14.	  	 Miscellaneous
	  	15

  

 2 

 EXHIBITS 
  

			
	Exhibit A	  	Description of Land
	Exhibit B	  	Permitted Exceptions
	Exhibit C	  	Form of Note
	Exhibit D	  	Form of Mortgage
	Exhibit E	  	Rent Schedule
	Exhibit F	  	Form of Bargain and Sale Deed
	Exhibit G	  	Form of Bill of Sale
	Exhibit H	  	Form of Title Affidavit
	Exhibit I	  	Form of Assignment and Assumption of Contracts, Leases, Permits and Licenses and General Intangibles
	Exhibit J	  	Form of Environmental Indemnity
	Exhibit K	  	Form of Second Amendment of Parking Facilities Lease
	Exhibit L	  	Form of Memorandum of Parking Facilities Lease
	Exhibit M	  	Form of Subordination Agreement
	Exhibit N	  	Additional Land
	Exhibit O	  	Form of Quit Claim Deed

  

 PURCHASE AND SALE AGREEMENT 
  
 THIS PURCHASE AND SALE AGREEMENT (the “Agreement”) is made as of March 18, 2004, between RESORTS REAL
ESTATE HOLDINGS, INC., a New Jersey corporation (“Purchaser”), and KERZNER INTERNATIONAL NORTH AMERICA, INC. (f/k/a SUN INTERNATIONAL NORTH AMERICA, INC.), a Delaware corporation (“Seller”).
Purchaser and Seller are sometimes referred to individually in this Agreement as a “party” and collectively as the “parties.” 
  
 RECITALS: 
  
 A. WHEREAS, Seller is the owner of those certain parcels of land (the “Land”) located in the County of Atlantic, State of New Jersey, and
more particularly described in Exhibit A attached hereto and the building(s) and other improvements thereon and the appurtenances and rights described in Article 2; and 
  
 B. WHEREAS, Seller and Resorts International Hotel and Casino, Inc. (f/k/a/ Colony RIH Acquisitions, Inc.), a New Jersey
corporation (“RIHCI”), and an Affiliate of Purchaser, are parties to that certain Option Agreement dated April 25, 2001 with respect to the sale of the premises to RIHCI (the “Option Agreement”), which Option
Agreement has been terminated by mutual consent of the parties thereto; and 
  
 C. WHEREAS, Purchaser desires to acquire the Premises on terms substantially identical to those contained in the Option Agreement, except that the Purchase Price (as defined herein) shall be paid in the form of a
secured promissory note rather than cash and with respect to certain other matters described herein; and 
  
 D. WHEREAS, Seller is willing to sell to Purchaser the Premises, subject to the terms and conditions of this Agreement. 
  
 NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each party hereto, and intending to be legally bound hereby, Seller and Purchaser agree as follows: 
  

	1.	Definition of Certain Terms. 

  
 The terms defined in this Article 1, whenever used in this Agreement, shall have the respective meanings indicated below for all purposes of this
Agreement. 
  
 “Additional
Land”: has the meaning set forth in Article 14(k). 
  
 “Affiliate”: of a specified Person means a Person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such specified Person.

  
 “Agreement”: means this
Agreement (including the Exhibits hereto), as the same from time to time may be amended, supplemented or waived in accordance with the terms hereof. 
  

 “Applicable Law”: means, with respect to any Person, any and all
provisions of any and all (i) constitutions, treaties, statutes, laws (including the common law), rules, regulations, ordinances or codes of any Governmental Authority applicable to such Person, (ii) Permits applicable to such Person, and (iii)
orders, decisions, injunctions, judgments, awards and decrees of or agreements with any Governmental Authority, in each case in this clause (iii) specifically naming such Person. 
  
 “Assignment and Assumption Agreement”: has the meaning set forth in Article 6(j).

  
 “Bill of Sale”: has the
meaning set forth in Article 6(f). 
  
 “Closing”: has the meaning set forth in Article 9(a). 
  
 “Closing Date”: has the meaning set forth in Article 9(a). 
  
 “Code”: means the Internal Revenue Code of 1986, as amended. 
  
 “Collateral Agreements”: means the
Mortgage, the Holdings Guarantee, the RNN Guarantee, the Stock Pledge Agreement, the Security Agreement and the Master Agreement. 
  
 “Consent”: means any consent, approval, authorization, waiver, permit, grant, franchise, concession, agreement, license,
exemption or order of, registration, certificate, declaration or filing with, or report or notice to, any Person, including any Governmental Authority. 
  
 “control” (including the terms “controlled by” and “under common control with”): means
the possession, directly or indirectly, of the power to direct or cause the direction of the management policies of a Person, whether through the ownership of voting securities, by contract or credit arrangement, as trustee or executor, or
otherwise. 
  
 “Deed”: has the
meaning set forth in Article 6(d). 
  
 “$” or “dollars”: means lawful money of the United States of America. 
  
 “Environmental Indemnity Agreement”: has the meaning set forth in Article 6(k). 
  
 “FIRPTA”: has the meaning set forth in
Article 6(g). 
  
 “Governmental
Approval”: means any Consent of, with or to any Governmental Authority. 
  
 “Governmental Authority”: means (i) any foreign or domestic nation or government, any state, county, local or municipal
government or administrative agency or other political subdivision thereof, (ii) any entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, (iii) any government authority, agency,
department, board, commission or instrumentality, (iv) 

  

 - 2 - 

 
any court or administrative tribunal, (v) any non-governmental agency, tribunal or entity that is vested by a Governmental Authority with applicable
jurisdiction, or (vi) any tribunal or arbitrator(s) of competent jurisdiction, or any self-regulatory organization. 
  
 “Holdings”: shall mean Colony RIH Holdings, Inc., a Delaware corporation. 
  
 “Holdings Guaranties”: has the meaning set
forth in Article 3(b). 
  
 “Improvements”: has the meaning set forth in Article 2(a)(i). 
  
 “include”, “includes”, “included” and “including”: shall be construed
as if followed by the phrase “without being limited to”. 
  
 “Land”: has the meaning set forth in Recital A. 
  
 “Loan”: has the meaning set forth in Article 3(c)(i). 
  
 “Leases”: has the meaning set forth in Article 4(e). 
  
 “Master Agreement”: has the meaning set
forth in Article 3(b). 
  
 “Memorandum of
Parking Facilities Lease”: has the meaning set forth in Article 7(o). 
  
 “Mortgage”: has the meaning set forth in Article 3(b). 
  
 “MOA”: has the meaning set forth in Article 6(j). 
  
 “New Pier” means New Pier Operating
Company, Inc., a Delaware corporation. 
  
 “Note”: has the meaning set forth in Article 3(b). 
  
 “Notice”: has the meaning set forth in Article 12. 
  
 “Option Agreement”: has the meaning set forth in the Recitals. 
  
 “Parking Facilities Lease”: has the meaning
set forth in Article 13. 
  
 “Permit”: means any permit, approval, consent, authorization, license, variance, or permission required by a Governmental Authority under any Applicable Law . 
  
 “Permitted Exceptions”: has the meaning set forth in Article 2(b)(i). 
  
 “Person” or “person”:
means any natural person, firm, partnership, association, corporation, company, limited liability company, trust, business trust, Governmental Authority or other entity. 
  
 “Personal Property”: has the meaning set forth in Article 6(f). 
  
 “Premises”: has the meaning set forth in
Article 2(a). 
  

 - 3 - 

 “Purchase Price”: has the meaning set forth in Article 3(a). 

 
 “Purchaser”: has the meaning set forth
in the first paragraph of this Agreement. 
  
 “Quit Claim Deed”: has the meaning set forth in Article 14(k). 
  
 “Real Property”: means the Improvements and the Land. 
  
 “Rent Schedule”: has the meaning set forth in Article 4(e). 
  
 “Resort Entities”: means Colony RIH
Holdings, Inc., RIHCI, Resorts International Hotel, Inc., Purchaser, New Pier Operating Company, Inc., each, a “Resort Entity”. 
  
 “RIH”: means Resorts International Hotel, Inc., a New Jersey corporation. 
  
 “RIHCI”: has the meaning set forth in the
Recitals. 
  
 “RRN Guaranties”:
has the meaning set forth in Article 3(b). 
  
 “Second Amendment of Parking Facilities Lease”: has the meaning set forth in Article 7(n). 
  
 “Security Agreement”: has the meaning set forth in Article 3(b). 
  
 “Seller”: has the meaning set forth in the
first paragraph of this Agreement. 
  
 “Seller’s Actual Knowledge”, and words or phrases of similar import, means (i) the actual knowledge of Charles Adamo, and (ii) the actual knowledge of, or the actual knowledge that would be present after reasonable
inquiry of, William Murtha or John Allison. 
  
 “Seller Indemnitees”: means Seller and its Affiliates and their respective successors, officers, directors, shareholders and employees. 
  
 “Stock Pledge Agreement”: has the meaning set forth in Article 3(b). 
  
 “Subordination Agreement”: has the meaning
set forth in Article 7(p). 
  
 “Title
Affidavits”: has the meaning set forth in Article 6(h). 
  
 “Transfer Tax”: has the meaning set forth in Article 9(b). 
  

	2.	Sale of Premises and Acceptable Title. 

  
 (a) Seller shall sell, transfer, set over, convey, assign and deliver to Purchaser, and Purchaser shall purchase, acquire and accept from Seller, at the
price and upon the terms and conditions set forth in this Agreement the following (herein collectively, the “Premises”): 
  
 (i) fee simple title to the Land and all buildings and other improvements, if any, presently situated on the Land (collectively, the
“Improvements”); 
  

 - 4 - 

 (ii) all right, title and interest of Seller, if any, in and to any easements, rights-of-way, privileges,
licenses, interests, development and other rights and appurtenances of any kind relating to or appertaining to the Real Property, including, without limitation, all right, title and interest of Seller, if any, in and to any adjacent vaults, alleys,
strips or gores of land, and any air, zoning or development rights appurtenant to the Real Property; 
  
 (iii) all right, title and interest of Seller in and to the fixtures and personal property, if any, attached or appurtenant to the Real Property; and

  
 (iv) all right, title and interest of Seller in any
transferable Permits held by Seller that primarily relate to its ownership of the Premises. 
  
 (b) Seller shall convey and Purchaser shall accept marketable title to the Premises in accordance with the terms of this Agreement, subject only to: 
  
 (i) the matters set forth in Exhibit B attached hereto (collectively, the “Permitted Exceptions”);
and 
  
 (ii) such other matters as the Title Company shall be
willing, without special or additional premium, to omit as exceptions to coverage or to except with insurance against collection out of or enforcement against the Premises, provided that (y) such other matters are omitted from any title insurance
policy issued at Closing to any unaffiliated mortgagee, and (z) Purchaser’s Title Company agrees to insure any subsequent purchaser and/or subsequent mortgagee in the same manner as herein specified regardless of the amount of insurance
purchased by or for such subsequent purchaser or mortgage. 
  

	3.	Purchase Price and Purchase Money Note and Mortgage. 

  
 (a) The purchase price (the “Purchase Price”) to be paid by Purchaser to Seller for the Premises is $40,000,000.00. 
  
 (b) The Purchase Price shall be paid by the delivery by Purchaser, as maker,
to Seller, as payee, of a secured promissory note (the “Note”) in the amount of the Purchase Price in the form attached hereto as Exhibit C. The Note shall be secured by (i) that certain Mortgage made by Purchaser for the
benefit of Seller and intended to be recorded in the offices of the Clerk of Atlantic County, New Jersey (the “Mortgage”) in the form attached hereto as Exhibit D, which Mortgage shall encumber the Premises, (ii) those
certain Guaranties made by Holdings for the benefit of Seller (the “Holdings Guaranties”) in the form attached to the Master Agreement, (iii) that certain Stock Pledge Agreement made 

  

 - 5 - 

 
by Holdings for the benefit of Seller (the “Stock Pledge Agreement”) in the form attached to the Master Agreement, (iv) that certain
Guaranty made by RIHCI, New Pier and RIH for the benefit of Seller (the “RRN Guaranty”) in the form attached to the Master Agreement, (v) that certain Security Agreement made by Purchaser for the benefit of Seller (the
“Security Agreement”) in the form attached to the Master Agreement, and (vi) that certain agreement made by the Resort Entities for the benefit of Seller (the “Master Agreement”). 
  
 (c) Terms of Note and Mortgage. 
  
 (i) The Note shall evidence a loan by Seller to Purchaser (the
“Loan”) to enable Purchaser to acquire the Premises. 
  
 (ii) The Mortgage shall be a purchase money mortgage and shall be a first lien on the unencumbered, marketable, fee simple title to the Real Property subject only to the Permitted Exceptions. 
  

	4.	Seller’s Representations to Purchaser. 

  
 Seller hereby makes the following representations and warranties to Purchaser, each of which is true in all material respects as of the date hereof:

  
 (a) Seller is a corporation duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization. Seller has the requisite corporate power and authority to carry on its business as currently conducted by it and to own, operate or lease its properties currently owned,
operated or leased by it. 
  
 (b) Seller has the requisite
corporate power and authority to execute and deliver this Agreement, to perform fully its obligations hereunder, and to consummate the transactions contemplated hereby. The execution and delivery by Seller of this Agreement and the consummation of
the transactions contemplated hereby have been duly authorized by all requisite corporate action of Seller. Seller has duly executed and delivered this Agreement. This Agreement is a legal, valid and binding obligation of Seller, enforceable against
it in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and by equitable principles, including those limiting the
availability of specific performance, injunctive relief and other equitable remedies and those providing for equitable defenses. 
  
 (c) The execution, delivery and performance by Seller of this Agreement, and the consummation of the transactions contemplated hereby, do not and will
not, directly or indirectly, contravene or conflict with or result in a violation of or under (with or without the giving of notice or the lapse of time or both) (i) any provision in the charter or bylaws of Seller, (ii) any Applicable Law
applicable to 

  

 - 6 - 

 
Seller or any of Seller’s properties or assets, or (iii) any contract, agreement or other instrument applicable to Seller or any of Seller’s
properties or assets, except, in the case of clauses (ii) and (iii), for violations and defaults that would not materially impair the ability of Seller to perform its obligations under this Agreement or to consummate the transactions contemplated
hereunder. 
  
 (d) No Governmental Approval or other Consent is
required to be obtained or made by Seller in connection with the execution and delivery by Seller of this Agreement or the consummation of the transactions contemplated hereunder, except any notice that may be required under the MOA. 
  
 (e) Exhibit E sets forth a true, correct and complete copy of the
rent roll of the Premises as of the date hereof (the “Rent Schedule”) and lists all material defaults of which Seller has knowledge under the leases listed therein (each a “Lease” and, collectively, the
“Leases”). Other than the Leases, there are no leases or other rights of occupancy which have been granted by Seller at the Premises. Except as identified on Exhibit E, no tenant under any of the Leases has made any written
claim of default by the landlord. No rents or other payments or deposits are held by Seller as landlord under any Lease except the security deposits as set forth on the rent roll and rents prepaid for the current month. Except as set forth on
Exhibit E, no rents due under, or any other interest in, any of the Leases have been assigned, pledged or encumbered in any way. All security deposits are being, and have been, held in compliance with all laws, ordinances, orders, rules,
regulations and requirements of any Governmental Authority which may be applicable thereto. 
  
 (f) To Seller’s Actual Knowledge, there are no condemnation proceedings or eminent domain proceedings of any kind pending against the Premises or any portion thereof, and no written notice of any threatened
condemnation proceedings or eminent domain proceedings of any kind against the Premises or any portion thereof has been received by Seller. 
  
 (g) Except as set forth in the MOA, to Seller’s Actual Knowledge, there is no action, suit, proceeding, arbitration, citation, summons, subpoena, or
investigation, civil, criminal, regulatory or otherwise, in law or in equity, pending by or threatened in writing against Seller involving the Premises. 
  
 (h) Seller has good and marketable title to the Premises, subject only to the Permitted Exceptions. 
  
 (i) The representations and warranties of Seller contained in this Article 4
are in the nature of conditions and Purchaser shall independently satisfy itself as to the matters contained therein and none of such representations and warranties will survive the Closing. 
  

 - 7 - 

	5.	Purchaser’s Representations to Seller. 

  
 Purchaser hereby makes the following representations and warranties to Seller, each of which is true in all material respects as of the date hereof:

  
 (a) Purchaser is a corporation duly organized and validly
existing under the laws of the State of New Jersey and has the requisite power and authority to carry on its business as currently conducted by it and own or lease its properties currently owned or leased by it. 
  
 (b) Purchaser has the requisite power and authority to execute and deliver
this Agreement and the Collateral Agreements to be executed and delivered by it, to perform fully its obligations hereunder and thereunder, and to consummate the transactions contemplated hereby and thereby. The execution and delivery by Purchaser
of this Agreement and the Collateral Agreements and the consummation of the transactions contemplated hereby and thereby have been duly authorized by all requisite action of Purchaser. Purchaser has duly executed and delivered this Agreement and the
Collateral Agreements. This Agreement and the Collateral Agreements are legal, valid and binding obligations of Purchaser, enforceable against it in accordance with their respective terms, except as enforceability may be limited by bankruptcy,
insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and by equitable principles, including those limiting the availability of specific performance, injunctive relief and other equitable remedies and those
providing for equitable defenses. 
  
 (c) The execution, delivery
and performance by Purchaser of this Agreement and the Collateral Agreements, and the consummation of the transactions contemplated hereby and thereby, do not and will not, directly or indirectly, contravene or conflict with or result in a violation
of or under (with or without the giving of notice or the lapse of time or both) (i) any provision in the certificate of incorporation or bylaws of Purchaser, (ii) any resolution adopted by the board of directors or the stockholders of Purchaser,
(iii) any Applicable Law applicable to Purchaser or any of its respective properties or assets, or (iv) any contract, agreement or other instrument applicable to Purchaser or any of its properties or assets, except, in the case of clauses (iii) and
(iv) for violations and defaults that would not materially impair the ability of Purchaser perform its obligations under this Agreement or the Collateral Agreements. 
  
 (d) Except for the approval of the New Jersey Casino Control Commission, which approval has been obtained, no Governmental
Approval or other Consent is required to be obtained or made by Purchaser in connection with the execution and delivery of this Agreement or the Collateral Agreements or the consummation of the transactions contemplated hereby or thereby.

  
 (e) There is no action, suit or proceeding pending, or to
Purchaser’s knowledge, threatened, by or against or affecting Purchaser or any of its Affiliates in connection with or relating to the transactions contemplated by this Agreement 

  

 - 8 - 

 
or the Collateral Agreements or of any action taken or to be taken in connection herewith or therewith or the consummation of the transactions contemplated
hereby thereby. 
  
 (f) The representations and warranties of
Purchaser contained in this Article 5 are in the nature of conditions and Seller shall independently satisfy itself as to the matters contained therein and none of such representations and warranties will survive the Closing. 
  

	6.	Seller’s Closing Obligations and Deliveries. 

  
 At the Closing, Seller shall deliver the following to Purchaser: 
  

(a) A certified copy of the resolutions of Seller’s Board of Directors authorizing the execution and delivery of this Agreement and the
performance by Seller of its obligations hereunder. 
  
 (b) A
certificate of incumbency with respect to the office and authority of the officer of Seller executing this Agreement and the other documents delivered by Seller at Closing, duly executed by the Secretary or any Assistant Secretary of Seller.

  
 (c) A certificate of good standing of Seller from the proper
authority of the jurisdiction in which Seller is incorporated. 
  
 (d) A bargain and sale deed with covenant against grantor’s acts in the form of Exhibit F hereto (the “Deed”) duly executed by Seller. 
  
 (e) Transfer Tax forms required to be executed by Seller. 
  
 (f) A bill of sale with respect to all personal property (if any) included in the transaction contemplated herein (the
“Personal Property”), in substantially the form of Exhibit G hereto (the “Bill of Sale”), duly executed by Seller. 
  
 (g) An affidavit of non-foreign status, as required by Article 1445 of the Code (“FIRPTA”), duly executed by Seller. 
  
 (h) The title affidavit in the form attached hereto as Exhibit H,
duly executed by Seller and such other duly executed and acknowledged or verified certificates, affidavits and other documents reasonably requested by the Title Company to evidence Seller’s authority or to omit from its title insurance policy
exceptions for judgments, bankruptcies or other returns against different entities whose names are the same as or similar to Seller’s name (collectively, the “Title Affidavits”). 
  
 (i) A schedule updating the Rent Schedule and setting forth all arrears in
rents and all prepayments of rents, certified by Seller to be accurate as of the Closing Date. 
  

 - 9 - 

 (j) The Assignment and Assumption of Contracts, Leases, Permits and Licenses and General Intangibles
relating to the Premises, in substantially the form of Exhibit I hereto (the “Assignment and Assumption Agreement”), together with originals or certified copies of the contracts, licenses and permits assigned pursuant
thereto, which Assignment and Assumption Agreement shall include (1) an assignment and assumption of Seller’s obligations under that certain Agreement dated June 22, 1995 by and between Marina Associates, a New Jersey general partnership, and
Resorts International, Inc., a Delaware corporation, a copy of which is attached hereto; (2) an assignment and assumption of any obligations or liability of Seller under the Memorandum of Agreement between the New Jersey Department of Environmental
Protection and Griffin Gaming and Entertainment, Inc. dated May 30, 1996 pertaining to property known as 1201-1239 Boardwalk (the “MOA”); and (3) the Parking Facilities Lease (as hereinafter defined). 
  
 (k) The Environmental Indemnity Agreement in the form attached hereto as
Exhibit J (the “Environmental Indemnity Agreement”), duly executed by Seller. 
  
 (l) All other previously undelivered documents that Seller is required to deliver to Purchaser pursuant to this Agreement prior to the Closing.

  

	7.	Purchaser’s Closing Obligations and Deliveries. 

  
 At the Closing, Purchaser shall deliver or cause to be delivered the following: 
  
 (a) The Note, duly executed by Purchaser. 
  
 (b) The Mortgage, duly executed by Purchaser. 
  
 (c) The Holdings Guaranties, duly executed by Holdings. 
  
 (d) The RRN Guaranty, duly executed by RIHCI, New Pier, and RIH. 
  
 (e) The Security Agreement, duly executed by Purchaser. 

 
 (f) The Master Agreement, duly executed by Purchaser, RIHCI, RIH and New
Pier. 
  
 (g) The Stock Pledge Agreement, duly executed by
Holdings. 
  
 (h) Evidence of the authority of Purchaser and the
Resort Entities to execute and deliver this Agreement and the Collateral Agreements and to perform their respective obligations hereunder and thereunder. 
  
 (i) Documents evidencing (i) the office and authority of the officer of Purchaser executing on behalf of Purchaser this Agreement and the other documents
delivered by Purchaser at the Closing and (ii) the office and authority 

  

 - 10 - 

	 	 
of the officers of the Resort Entities executing on behalf of the Resort Entities the Collateral Agreements. 

  
 (j) A certified Certificate of Incorporation for Purchaser issued by the
Secretary of State of the State of New Jersey and certified Certificates of Incorporation for each of the Resort Entities issued by the Secretary of State of the state of its organization. 
  
 (k) A Certificate of Good Standing for Purchaser issued by the Secretary of
State of the State of New Jersey and certificates of good standing for each of the Resort Entities issued by the Secretary of State of the state of its organization. 
  
 (l) The Assignment and Assumption Agreement duly executed by Purchaser. 
  
 (m) The Environmental Indemnity Agreement, duly executed by Purchaser and
RIHCI. 
  
 (n) The Second Amendment of Lease in the form attached
hereto as Exhibit K (the “Second Amendment of Parking Facilities Lease”), duly executed by Purchaser and RIHCI. 
  
 (o) The Memorandum of Second Amendment of Lease in the form attached hereto as Exhibit L (the “Memorandum of Parking Facilities
Lease”), duly executed by Purchaser and RIHCI. 
  
 (p)
The Subordination Agreement in the form attached hereto as Exhibit M (the “Subordination Agreement”), duly executed by Purchaser and RIHCI. 
  
 (q) All other previously undelivered documents that Purchaser is required to deliver to Seller pursuant to this Agreement at
or prior to the Closing. 
  

	8.	Apportionments. 

  
 (a) The following apportionments shall be made between the parties at the Closing as of midnight on the day prior to the Closing Date: 
  
 (i) real estate taxes, water charges and sewer rents, if any, on the basis
of the fiscal period for which assessed; 
  
 (ii) rents due under
the Leases; 
  
 (iii) permitted administrative charges, if any,
on tenants’ security deposits; and 
  
 (iv) value of fuel
stored on the Premises, at the price paid to Seller’s supplier, including any taxes; 
  

 - 11 - 

 (b) If any tenant is in arrears in the payment of rent on the Closing Date, rent received from such
tenant after the Closing shall be applied as between Seller and Purchaser in the following order of priority: (i) first to any month or months following the month in which the Closing occurred (and apportioned as per clause (a) above); (ii) then to
the month in which the Closing occurred; and (iii) then to the period preceding the month in which the Closing occurred. If any rent received by Seller or Purchaser after the Closing is payable to the other party by reason of this allocation, the
recipient shall promptly pay to the other party the appropriate sum, less a proportionate share of its costs of collection, including reasonable attorneys’ fees and disbursements. 
  
 (c) If the Closing occurs before the tax rate is fixed for the current fiscal period, the apportionment of taxes at the
Closing shall be on the basis of the most recent tax rate for the preceding period applied to the latest assessed valuation. 
  
 (d) If any apportionment is based on estimates, incomplete data or mutual mistake, it shall be recomputed when final data become available and the parties
shall promptly correct any overpayment or underpayment. 
  
 (e)
Notwithstanding anything to the contrary contained herein, the party owing the payment required as a result of the apportionments provided herein shall pay, at Closing to the other party by check or wire transfer, such amount due. 
  
 (f) The obligations of the parties under this Article 8 shall survive the
Closing. 
  

	9.	Closing and Closing Costs. 

  
 (a) The closing of the transaction contemplated hereby (the “Closing”) shall take place at the offices of Proskauer Rose LLP, 1585
Broadway, New York, New York or at another mutually agreeable location, on March 18, 2004 (“Closing Date”). 
  
 (b) Purchaser shall pay all transfer taxes and fees incurred in connection with the transactions consummated pursuant to the terms of this Agreement
(“Transfer Tax”). 
  

	10.	“As-Is” Condition. 

  
 Except as provided herein, Purchaser shall take title to the Premises in its “as is” condition, subject to all federal, state, county and
municipal laws, ordinances, rules and regulations now, heretofore, or hereafter in effect. Seller has not made, does not hereby make, and hereby disclaims any representations or warranties regarding the physical, subsurface, or environmental
conditions (including, without limitation, the presence of any hazardous substances or the existence, discharge, release, or cleanup of wastes or other conditions that may be regulated by any federal, state, county or 

  

 - 12 - 

 
municipal law, rules, or regulation), the expenses, operation, value, adequacy or fitness for any particular use of the Premises, the legal uses to which the
Premises may be put, the zoning, other regulatory or development requirements or restrictions, or any other matter or thing affecting or relating to the Premises or these transaction, and Purchaser expressly acknowledges that no such representations
or warranties have been made. Seller shall not be liable or bound in any manner by any express or implied warranties, guaranties, promises, statements, representations or information pertaining to the Premises, made or furnished by any agent,
employee, servant or other person representing or purporting to represent Seller, unless such warranties, guaranties, promises, statements, representations or information are expressly and specifically set forth herein. 
  
 As to the Premises, except as expressly provided in the Environmental
Indemnity Agreement, Purchaser releases Seller and the other Seller Indemnitees from, and waives and relinquishes, any and all claims, liabilities, causes of actions, damages, rights or remedies Purchaser may have at law, in equity, or both, against
Seller or any other Seller Indemnitees, as the result of, or in any manner arising from or in connection with, any Environmental Condition (as defined in the Environmental Indemnity Agreement) or any Environmental Laws (as defined in the
Environmental Indemnity Agreement). 
  

	11.	Broker. 

  
 Each party represents to the other that it has dealt with no broker, agent or finder in connection with the transactions contemplated by this Agreement.
Each party shall indemnify, hold harmless and defend the other from and against all loss, liability, damage, litigation, sums paid in settlement of any of the foregoing and cost (including reasonable attorneys’ fees and disbursements) arising
from any claim by any other person that he acted on behalf of the indemnitor in connection with the transactions contemplated by this Agreement. The obligations of the parties under this Article 11 shall survive the Closing or, if the Closing does
not occur, the termination of this Agreement. 
  

	12.	Notices. 

  
 (a) All notices, requests, demands, approvals, consents, waivers and other communications required or permitted to be given under this Agreement (each, a
“Notice”) shall be in writing and shall be (i) delivered personally, (ii) mailed by first class, registered or certified mail, return receipt requested, postage prepaid, (iii) sent by next-day or overnight mail or delivery, or (iv)
sent by facsimile transmission, provided that the original copy thereof also is sent by prepaid, first-class certified or registered mail or by next-day or overnight mail or personal delivery. 
  

 - 13 - 

 if to Purchaser, to 
  
 c/o Resorts International Hotel, Inc. 
 1133 Boardwalk 
 Atlantic City, NJ 10021 
 Facsimile: (609) 340-7896 
 Attention: Ms. Audrey Oswell 
  
 with copies to: 
  
 Willkie Farr & Gallagher 
 787 Seventh Avenue 
 New York, NY 10019 
 Facsimile: (212) 728-8111 
 Attention: Thomas M. Cerabino, Esq. 
  
 if to Seller, to 
  
 c/o Kerzner International Limited 
 Coral Towers 
 Paradise Island, The Bahamas 
 Facsimile: (242) 363-4581 
 Attention: Charles D. Adamo 
  
 with copies to: 
  
 Kerzner International North America, Inc. 
 Linwood Commons 
 2106 New Road 
 Suite C7 
 Linwood, NJ 08221 
 Facsimile: (609) 653-9931 
 Attention: William Murtha 
  
 and 
  
 Proskauer Rose LLP 
 1585 Broadway 
 New York, NY 10036-82999 
 Facsimile: (212) 969-2900 
 Attention: James P. Gerkis, Esq. 
  
 or, in each case, at such other address as may be specified in a Notice to the other party hereto. Any Notice shall be deemed effective and given upon receipt (or intentional refusal of receipt of the addressee of such Notice). 

 

 - 14 - 

	13.	Parking Facilities Lease.  

  
 Seller, as landlord, and RIHCI, as tenant, are parties to that certain Lease Agreement dated April 25, 2001, as amended by the First Amendment of Lease
Agreement, dated as of October 4, 2002, for certain portions of the Premises (“Parking Facilities Lease”). The parties hereto acknowledge and agree that (i) upon the termination of the Option Agreement, the term of the Parking
Facilities Lease converted into a lease on a month-to-month basis and, immediately upon Closing, Purchaser and RIHCI are entering into the Second Amendment of Parking Facilities Lease, and (ii) in connection with the termination of the Option
Agreement and entering into the Assignment and Assumption Agreement, Seller and RIHCI have executed and delivered the Environmental Indemnity Agreement on or prior to the date hereof. 
  

	14.	Miscellaneous. 

  
 (a) This Agreement shall be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective permitted successors and
assigns. 
  
 (b) Each party shall execute, acknowledge and
deliver to the other such instruments, and take such other actions, as the other may reasonably request in order to comply with Article 6045(e) of the Code, in connection with the reporting of information in respect of the transactions contemplated
by this Agreement. The obligations of the parties under this Article 14(b) shall survive the Closing. 
  
 (c) The delivery of the deed by Seller, and the acceptance thereof by Purchaser, shall be deemed the full performance and discharge of every obligation on
the part of Sellerto be performed hereunder, except those obligations of Seller which are expressly stated in this Agreement to survive the Closing. 
  
 (d) This Agreement embodies the entire understanding between the parties with respect to the transactions contemplated
herein, and all prior agreements, understandings, representations and statements, oral or written, are merged into this Agreement. Either party may waive any provision of this Agreement which is for its benefit. Neither this Agreement nor any
provision hereof may be waived, amended, discharged or terminated except by an instrument signed by the party against whom the enforcement of such waiver, amendment, discharge or termination is sought, and then only to the extent set forth in such
instrument. 
  
 (e) If any term or provision of this Agreement or
the application thereof to any person or circumstances shall to any extent be invalid or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those as to which it is held
invalid or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the extent permitted by law. 
  

 - 15 - 

 (f) This Agreement shall be governed by, and construed in accordance with, the law of the State of New
Jersey without regard to its conflicts of laws principles. 
  
 (g) The table of contents and the captions in this Agreement are for convenience of reference only and do not define or limit the scope or intent of this Agreement or any of the provisions hereof. 
  
 (h) As used in this Agreement, the masculine shall include the feminine and
neuter, the singular shall include the plural and the plural shall include the singular, as the context may require. 
  
 (i) If the provisions of any schedule or exhibit to this Agreement are inconsistent with the provisions of this Agreement, the provisions of such schedule
or exhibit shall prevail. 
  
 (j) IT IS MUTUALLY AGREED BY AND
BETWEEN SELLER AND PURCHASER THAT THE RESPECTIVE PARTIES HERETO SHALL AND THEY HEREBY DO WAIVE TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM BROUGHT BY EITHER OF THE PARTIES HERETO AGAINST THE OTHER (EXCEPT FOR PERSONAL INJURY OR PROPERTY
DAMAGE) ON ANY MATTERS WHATSOEVER ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE RELATIONSHIP OF SELLER AND PURCHASER, PURCHASER’S USE OF OR OCCUPANCY OF THE PREMISES, AND ANY EMERGENCY STATUTORY OR ANY OTHER STATUTORY REMEDY.

  
 (k) In addition to the Premises to be transferred by Seller
to Purchaser pursuant to this Agreement, Seller shall transfer, convey and assign to Purchaser, and Purchaser shall acquire and accept from Seller, all of Seller’s right, title and interest, if any, in that certain parcel of land (the
“Additional Land”) located in the City of Absecon, County of Atlantic, State of New Jersey, and more particularly described on Exhibit N attached hereto and the buildings and other improvements thereon and the appurtenances
and rights of Seller, if any, thereto. At the Closing, Seller shall deliver a quit claim deed in the form of Exhibit O attached hereto (the “Quit Claim Deed”) duly executed by Seller. Notwithstanding anything contained in
this Agreement to the contrary, the transfer and assignment of the Additional Land pursuant to this Agreement and the Quit Claim Deed is made without representation or warranty, express or implied, by, or recourse against, Seller of any kind
whatsoever and Seller makes no promises as to ownership or title of the Additional Land, but simply transfers whatever interest Seller has to Purchaser. Notwithstanding the foregoing, Seller, at Purchaser’s request and sole expense, shall
reasonably cooperate and assist Purchaser in its efforts to obtain clear title to the Additional Land. 
  
 (remainder of page left intentionally blank) 
  

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 IN WITNESS WHEREOF, Purchaser and Seller have duly executed this Agreement as of this 18th day of March, 2004. 
  

									
	PURCHASER:	 	 	 	 RESORTS REAL ESTATE HOLDINGS, INC.,
 a
New Jersey corporation

					
	 	 	 	 	 	 	By:	 	/S/    NICHOLAS L. RIBIS
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Name: Nicholas L. Ribis

	 	 	 	 	 	 	 	 	 Title:   Vice President

			
	SELLER:	 	 	 	 KERZNER INTERNATIONAL NORTH AMERICA, INC.,
 a Delaware corporation

					
	 	 	 	 	 	 	By:	 	/S/    WILLIAM C. MURTHA
	 	 	 	 	 	 	 	 	

	 	 	 	 	 	 	 	 	 Name: William C. Murtha

	 	 	 	 	 	 	 	 	 Title:    Senior Vice President

  

 - 17 -

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