Document:

exv10w1

Table of Contents

Exhibit 10.1

AMENDED AND RESTATED

OPERATING AGREEMENT

OF

ALST CASINO HOLDCO, LLC,

A DELAWARE LIMITED LIABILITY COMPANY

THE UNITS REFERRED TO IN THIS AGREEMENT (1) HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES OR ANY FOREIGN
JURISDICTION, (2) MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE AFORESAID ACT AND APPLICABLE STATE AND FOREIGN SECURITIES LAWS OR PURSUANT TO AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF AFORESAID ACT AND SUCH LAWS, (3) MAY NOT
BE OFFERED, SOLD OR TRANSFERRED EXCEPT IN COMPLIANCE WITH THE APPLICABLE GAMING LAWS OF THE STATE
OF NEVADA AND THE REGULATIONS OF THE NEVADA GAMING COMMISSION, AND (4) ARE SUBJECT TO, AND ARE
TRANSFERABLE ONLY UPON COMPLIANCE WITH, THE PROVISIONS OF THIS AGREEMENT.

 

Table of Contents

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I DEFINITIONS
	 	 	2	 
	Section 1.1 Definitions 
	 	 	2	 
	Section 1.2 Other Definitions 
	 	 	11	 
	Section 1.3 Interpretation 
	 	 	12	 
	 
	 	 	 	 
	ARTICLE II ORGANIZATIONAL MATTERS
	 	 	13	 
	Section 2.1 Formation 
	 	 	13	 
	Section 2.2 Name 
	 	 	13	 
	Section 2.3 Term 
	 	 	13	 
	Section 2.4 Registered Agent and Registered Office 
	 	 	14	 
	Section 2.5 Place of Business 
	 	 	14	 
	Section 2.6 Purpose and Business of the Company 
	 	 	14	 
	Section 2.7 Foreign Qualification 
	 	 	14	 
	Section 2.8 Title to Assets 
	 	 	14	 
	Section 2.9 Value Determinations 
	 	 	14	 
	 
	 	 	 	 
	ARTICLE III UNITS; CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS AND PREEMPTIVE RIGHTS
	 	 	15	 
	Section 3.1 Units 
	 	 	15	 
	Section 3.2 Additional Classes 
	 	 	15	 
	Section 3.3 Certificates 
	 	 	15	 
	Section 3.4 Issuance of Units 
	 	 	17	 
	Section 3.5 Capital Contributions 
	 	 	17	 
	Section 3.6 Capital Accounts 
	 	 	17	 
	Section 3.7 No Obligation for Additional Capital Contributions 
	 	 	18	 
	Section 3.8 Preemptive Rights 
	 	 	18	 
	Section 3.9 Capital Structure Adjustments 
	 	 	21	 
	Section 3.10 Regulatory Approvals 
	 	 	21	 
	Section 3.11 Incentive Units 
	 	 	22	 
	 
	 	 	 	 
	ARTICLE IV MEMBERS
	 	 	23	 
	Section 4.1 Limited Liability 
	 	 	23	 
	Section 4.2 Admission of Additional Members 
	 	 	23	 
	Section 4.3 Termination of Membership Interest 
	 	 	24	 
	Section 4.4 Withdrawal or Resignation; Death of a Member 
	 	 	24	 
	Section 4.5 Fiduciary Duties; Competing Activities 
	 	 	24	 
	Section 4.6 Power of Members 
	 	 	25	 
	Section 4.7 No Interest in Company Property 
	 	 	25	 
	Section 4.8 Remuneration of Members 
	 	 	25	 
	Section 4.9 Members Are Not Agents 
	 	 	25	 
	Section 4.10 Voting Rights and Action by Members 
	 	 	26	 
	Section 4.11 Approval Standard 
	 	 	26	 
	Section 4.12 Approval of Specified Events 
	 	 	26	 
	 
	 	 	 	 

i

Table of Contents

	 	 	 	 	 

	Section 4.13 Representations and Warranties of the Members 
	 	 	28	 
	Section 4.14 No Recourse Agreement 
	 	 	29	 
	 
	 	 	 	 
	ARTICLE V MANAGEMENT AND GOVERNANCE OF THE COMPANY
	 	 	30	 
	Section 5.1 Management of the Company by Board of Managers 
	 	 	30	 
	Section 5.2 Board of Managers Composition 
	 	 	30	 
	Section 5.3 Manager Term and Replacement 
	 	 	31	 
	Section 5.4 Meetings of the Board of Managers; Action by Written Consent 
	 	 	31	 
	Section 5.5 Committees; Subsidiaries 
	 	 	32	 
	Section 5.6 Agency Authority of Managers or Officers 
	 	 	32	 
	Section 5.7 Performance of Duties; Liability of Managers 
	 	 	33	 
	Section 5.8 Devotion of Time 
	 	 	33	 
	Section 5.9 Reimbursement of Expenses to Managers 
	 	 	33	 
	Section 5.10 Officers 
	 	 	34	 
	Section 5.11 Limited Liability 
	 	 	35	 
	 
	 	 	 	 
	ARTICLE VI DISTRIBUTIONS; ALLOCATIONS OF NET INCOME AND NET LOSS
	 	 	35	 
	 
	 	 	 	 
	Section 6.1 Distributions 
	 	 	35	 
	Section 6.2 Tax Distributions 
	 	 	36	 
	Section 6.3 Tax Withholding; Withholding Advances 
	 	 	37	 
	Section 6.4 Allocations of Net Income and Net Loss; Tax Allocations; Special
Allocations
	 	 	38	 
	Section 6.5 Restriction on Distributions 
	 	 	40	 
	Section 6.6 Obligations of Members to Report Allocations 
	 	 	40	 
	Section 6.7 Limitation on Allocations and Distributions to Incentive Units 
	 	 	40	 
	 
	 	 	 	 
	ARTICLE VII TRANSFERS OF UNITS
	 	 	41	 
	Section 7.1 Transfers 
	 	 	41	 
	Section 7.2 Notice of Intent to Transfer Units 
	 	 	43	 
	Section 7.3 Rights of Assignees 
	 	 	43	 
	Section 7.4 Substitution of Members 
	 	 	43	 
	Section 7.5 Effective Date of Permitted Transfers 
	 	 	43	 
	Section 7.6 Rights of Legal Representatives 
	 	 	44	 
	Section 7.7 No Effect of Transfers in Violation of Agreement 
	 	 	44	 
	Section 7.8 Amendment to Schedule I 
	 	 	44	 
	Section 7.9 Right to Force a Qualified IPO; IPO Restructuring 
	 	 	44	 
	 
	 	 	 	 
	ARTICLE VIII BOOKS & RECORDS; FINANCIAL & OTHER INFORMATION; OTHER MATTERS
	 	 	46	 
	Section 8.1 Books and Records 
	 	 	46	 
	Section 8.2 Delivery to Members and Inspection 
	 	 	47	 
	Section 8.3 Financial and Other Information 
	 	 	48	 
	Section 8.4 Filings 
	 	 	49	 
	Section 8.5 Bank Accounts 
	 	 	49	 
	Section 8.6 Accounting Decisions and Reliance on Others 
	 	 	49	 

ii

Table of Contents

	 	 	 	 	 

	Section 8.7 Tax Matters for the Company Handled by Board of Managers; Tax
Matters Member
	 	 	49	 
	Section 8.8 Confidentiality Obligations 
	 	 	50	 
	Section 8.9 Annual Budget 
	 	 	51	 
	Section 8.10 Termination of Management Agreement 
	 	 	51	 
	 
	 	 	 	 
	ARTICLE IX DISSOLUTION AND WINDING UP
	 	 	52	 
	Section 9.1 Dissolution 
	 	 	52	 
	Section 9.2 Winding Up 
	 	 	52	 
	Section 9.3 Order of Payment Upon Dissolution 
	 	 	52	 
	Section 9.4 Limitations on Payments Made in Dissolution 
	 	 	54	 
	Section 9.5 Termination 
	 	 	54	 
	Section 9.6 No Action for Dissolution 
	 	 	54	 
	 
	 	 	 	 
	ARTICLE X INDEMNIFICATION AND INSURANCE
	 	 	54	 
	Section 10.1 Indemnification 
	 	 	54	 
	Section 10.2 Reimbursements; Advancements 
	 	 	55	 
	Section 10.3 Insurance 
	 	 	55	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	55	 
	Section 11.1 Entire Agreement 
	 	 	55	 
	Section 11.2 Binding Effect 
	 	 	55	 
	Section 11.3 Parties in Interest 
	 	 	56	 
	Section 11.4 Headings 
	 	 	56	 
	Section 11.5 Representation by Counsel 
	 	 	56	 
	Section 11.6 Governing Law 
	 	 	56	 
	Section 11.7 Consent to Jurisdiction; Service of Process 
	 	 	56	 
	Section 11.8 WAIVER OF JURY TRIAL 
	 	 	56	 
	Section 11.9 Exhibits and Schedules 
	 	 	56	 
	Section 11.10 Invalid Provisions 
	 	 	57	 
	Section 11.11 Further Assurances 
	 	 	57	 
	Section 11.12 Notices 
	 	 	57	 
	Section 11.13 Amendment and Waiver 
	 	 	57	 
	Section 11.14 Reliance on Authority of Person Signing Agreement 
	 	 	58	 
	Section 11.15 No Interest in Company Property; Waiver of Action for Partition
	 	 	58	 
	Section 11.16 Counterparts 
	 	 	59	 
	Section 11.17 Attorney Fees 
	 	 	59	 
	Section 11.18 Remedies Cumulative 
	 	 	59	 
	Section 11.19 Gaming Suitability 
	 	 	59	 
	 
	 	 	 	 
	EXHIBITS
	 	 	 	 
	 
	 	 	 	 
	Exhibit A            Form of Addendum Agreement
	 	 	 	 
	 
	 	 	 	 
	SCHEDULES
	 	 	 	 
	 
	 	 	 	 
	Schedule I            Members, Capital Contributions and Units
	 	 	 	 

iii

Table of Contents

AMENDED AND RESTATED OPERATING AGREEMENT

OF

ALST CASINO HOLDCO, LLC

A DELAWARE LIMITED LIABILITY COMPANY

          This Amended and Restated Operating Agreement (as amended, supplemented or modified from time
to time, this “Agreement”) of ALST Casino Holdco, LLC, a Delaware limited liability company
(the “Company”), is made and to be effective as of November 1, 2011, by and among the
Company and the Members. Unless otherwise specified, capitalized terms used herein shall have the
respective meanings set forth in Article I. The Company and the Members are sometimes
collectively referred to herein as the “Parties” and each is sometimes referred to herein
as a “Party.”

RECITALS

          WHEREAS, the Company was formed pursuant to the Act by the filing of the Certificate of
Formation with the Secretary of State of the State of Delaware on May 11, 2011, and an Amended and
Restated Certificate of Formation of the Company was filed with the Secretary of State of the State
of Delaware on May 19, 2011 (as so amended and restated, the “Certificate of Formation”) to
appoint Soohyung Kim as the initial manager of the Company (the “Initial Manager”);

          WHEREAS, Standard General Master Fund L.P. (the “Initial Member”), as the sole member
of the Company, entered into an Operating Agreement of the Company dated as of May 11, 2011, as
amended by the First Amendment to the Operating Agreement dated as of September 27, 2011 to
effectuate, among other things, (x) the admission of North LV HoldCo, LLC, a Delaware limited
liability company (“North LV HoldCo”), as a member of the Company, and (y) the Initial
Member’s resignation from the Company as a member of the Company (as so amended, the “Original
Agreement”);

          WHEREAS, Aliante Gaming, LLC, a Nevada limited liability company (“Aliante Gaming”),
and its affiliated debtors commenced voluntary cases under chapter 11 of title 11 of the United
States Code, 11 U.S.C. §§ 1-1 et seq. in the United States Bankruptcy Court,
District of Nevada to effectuate a restructuring of the indebtedness of Aliante Gaming and its
affiliated debtors (the “Restructuring”) pursuant to a prepackaged plan of reorganization
(the “Plan”);

          WHEREAS, in connection with the Restructuring and upon the effectiveness of and subject to the
terms and conditions set forth in the Plan and the transactions contemplated thereby, (i) Aliante
Gaming will issue limited liability company interests (constituting the entire equity interest in
Aliante Gaming) to certain of its and its affiliated debtors’ lenders or their respective
designees, as the case may be, and (ii) pursuant to a Contribution Agreement to be entered into
with the Company, such lenders or their respective designees, as the case may be, will contribute
such limited liability company interests (constituting the entire equity interest in Aliante
Gaming) to the Company in exchange for the issuance by the Company to such lenders or their
respective designees, as the case may be, in their capacity as Members, of the number of Units set
forth in Schedule I hereto next to the name of each such Member, following which, Aliante
Gaming will become a wholly-owned Subsidiary of the Company;

 

Table of Contents

          WHEREAS, the Parties deem it to be in their best interests to amend and restate the Original
Agreement to, among other things, (x) admit as new Members the Persons set forth on Schedule
I (other than North LV HoldCo), in connection with the consummation of the transactions
described in the immediately preceding recital, and (y) establish and set forth their agreement
with respect to certain rights and obligations associated with the ownership of Units, including
restrictions on transfer of the Units, preemptive rights and corporate governance rights and
obligations;

          WHEREAS, the Parties’ registration rights following an Initial Public Offering shall be
governed by a separate Registration Rights Agreement, dated as of the date hereof, by and among the
Company and the parties thereto (the “Registration Rights Agreement”);

          WHEREAS, the Parties hereby constitute themselves as a limited liability company for the
purposes and on the terms and conditions set forth in this Agreement; and

          WHEREAS, pursuant to Section 10 of the Original Agreement, the Parties (including North LV
HoldCo) desire to amend and restate the Original Agreement in its entirety as set forth in this
Agreement.

          NOW, THEREFORE, in consideration of the mutual promises, covenants, and agreements set forth
herein and for good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the Parties (including North LV HoldCo), acting pursuant to the Limited Liability
Company Act of the State of Delaware, 6 Del. C. §§ 18-101, et seq., as amended from time to time,
agree that this Agreement shall govern the relationship between the Company and the Members and do
hereby amend and restate the Original Agreement in its entirety as follows.

ARTICLE I

DEFINITIONS

          Section 1.1 Definitions. As used in this Agreement, and unless the context requires a different
meaning, the following terms have the meanings indicated:

          “Act” means the Delaware Limited Liability Company Act, 6 De.C.§§18-101, et.
seg., as amended from time to time (and any corresponding provisions of succeeding law).

          “Addendum Agreement” means an Addendum Agreement in the form attached hereto as
Exhibit A.

          “Affiliate” means, with respect to any Person, an “affiliate” as defined in Rule 405
of the regulations promulgated under the Securities Act and with respect to any Member, an
“affiliate” shall include any investment fund or holding company that is directly or indirectly
managed or advised by any Affiliate of such Member; provided, however, that
notwithstanding the foregoing, an Affiliate shall not include any portfolio company of any Person
(including any Member).

2

Table of Contents

          “Annual Budget” means the annual operating plans and operating and capital budgets for
the Hotel prepared by the Management Company pursuant to the Management Agreement for each Fiscal
Year.

          “Asset Manager” means any Person appointed by the Company from time to time to act as
the Company’s asset manager for the Hotel and to report to the Company in such capacity.

          “Assignee” means the owner of an Economic Interest who has not been admitted as a
substitute Member in accordance with Article VII.

          “Assumed Tax Rate” means with respect to each Member (or Person whose tax liability is
determined by reference to the income of a Member), a rate equal to the sum of the maximum rate of
New York state and local income tax and United States federal income tax that would be imposed on a
Member who is an individual and a resident of New York City, taking into account the character of
the income of the Company and the deductibility of state and local income taxes for federal income
tax purposes and any limitations thereon, including pursuant to Section 68 of the Code.

          “Available Cash Flow” means Distributable Cash other than proceeds received by the
Company in any Capital Transaction.

          “Business Day” means any day other than a Saturday, Sunday or other day on which
commercial banks in New York City are required by law or executive order to close.

          “Capital Contribution” means, with respect to any Member, the total amount of cash or
cash equivalents and the initial Carrying Value of any property (other than cash or cash
equivalents) contributed to the capital of the Company or its controlled Affiliates by such Member,
whether before or after the date hereof, as reflected on Schedule I from time to time. Any
contribution of cash or other property by a Member to a controlled Affiliate of the Company after
the date hereof shall be treated for income tax purposes as a contribution of such property by such
Member to the Company, followed by a direct or indirect contribution of such property by the
Company to such controlled Affiliate.

          “Capital Transaction” means (a) a liquidation, dissolution or winding up of the
Company pursuant to Article IX of this Agreement or any other recapitalization transaction
outside of the ordinary course in which cash or other assets are distributed to the Members, or
(b) a Change of Control Transaction.

          “Carrying Value” means, with respect to any asset of the Company, the adjusted basis
of such asset for United States federal income tax purposes, except that the initial Carrying Value
of any asset contributed by a Member to the Company shall be the gross Fair Market Value of such
asset at the time of contribution; the Carrying Values of all such assets may, as determined by the
Board of Managers, be adjusted to equal their respective Fair Market Values at the following times:
(a) immediately prior to the contribution of more than a de minimis amount of money or other
property to the Company by a new or existing Member as consideration for an interest in the
Company; (b) the distribution by the Company to a Member

3

Table of Contents

of more than a de minimis amount of
property (other than cash) in exchange for a portion of such Member’s interest in the Company;
(c) the liquidation of the Company within the meaning of Treasury Regulations
§ 1.704-1(b)(2)(ii)(g); and (d) in connection with and at the time of a grant of an interest in the
Company (other than a de minimis interest) as consideration for the provision of services to or for
the benefit of the Company by an existing Member acting in a Member capacity or by a new Member
acting in a Member capacity or in anticipation of becoming a Member; provided,
however, that adjustments pursuant to clauses (a), (b) and (d) of this paragraph need not
be made if the Board of Managers reasonably determines that such adjustments are not necessary or
appropriate to reflect the relative economic interests of the Members and that the absence of such
adjustments does not adversely and disproportionately affect any Member. In the case of any asset
of the Company that has a Carrying Value that differs from its adjusted tax basis, the Carrying
Value shall be adjusted by the amount of depreciation, depletion and amortization calculated for
such asset rather than the amount of depreciation, depletion and amortization determined for United
States federal income tax purposes for purposes of the definitions of “Net Income” and “Net Loss”.

          “Change of Control Transaction” means: (i) an acquisition by any Person or group of
Persons (other than those Members that are Principal Members as of the date hereof or their
respective Affiliates or a wholly-owned Subsidiary of the Company) of equity interests of the
Company, whether already outstanding or newly issued, in a transaction or series of transactions,
if immediately thereafter such acquiring Person or group of Persons has, or would have, beneficial
ownership of fifty percent (50%) or more of the combined equity interests or voting power of the
Company or any of its Subsidiaries; (ii) the sale of all or substantially all (i.e., eighty percent
(80%)) of all of the assets of the Company and its Subsidiaries, taken as a whole, to any Person or
group of Persons (other than those Members that are Principal Members as of the date hereof or
their respective Affiliates or a wholly-owned Subsidiary of the Company); or (iii) the consummation
of a tender offer, merger, recapitalization, consolidation, business combination, reorganization or
other transaction, or series of such related transactions, involving the Company or any of its
Subsidiaries and a third Person or group of Persons (other than those Members that are Principal
Members as of the date hereof or their respective Affiliates or a wholly-owned Subsidiary of the
Company), unless both (1) the then-existing Members, immediately after such transaction or series
of transactions, will beneficially own at least fifty percent (50%) of the combined equity
interests or voting power of the Company or any of its Subsidiaries (or, if the Company or any of
its Subsidiaries will not be the surviving entity in such transaction or series of transactions,
such surviving entity), and (2) individuals who are then Managers or directors or managers of any
Subsidiary of the Company will be entitled to cast at least a majority of the votes of the Board of
Managers and the board of directors or equivalent body of any Subsidiary of the Company (or such
surviving entity, as the case may be) after the closing of such transaction or series of
transactions.

          “Code” means the Internal Revenue Code of 1986, or any successor statute thereto.

          “Company Minimum Gain” means “partnership minimum gain,” as defined in section
1.704-2(b)(2) of the Treasury Regulations, and shall be determined in accordance with section
1.704-2(d) of the Treasury Regulations.

4

Table of Contents

          “Compliance Plan” means the Gaming Compliance Review and Reporting Plan.

          “Confidential Information” means any and all confidential or proprietary information
(irrespective of the form of communication) obtained by or on behalf of a Member or its
Representatives from the Company or its Subsidiaries, through such Member’s ownership of a
Membership Interest, other than information which (i) was or becomes generally available to the
public other than as a result of a breach of this Agreement by such Member or its Representatives,
(ii) was or becomes available to such Member on a nonconfidential basis prior to disclosure to the
Member or its Representatives by the Company or its Subsidiaries, (iii) was or becomes available to
the Member or its Representatives from a source other than the Company or its Subsidiaries;
provided, that such source is not known by such Member or its Representatives to be bound
by a confidentiality agreement with the Company, or (iv) is independently developed by such Member
or its Representatives without the use of any such information received under this Agreement.

          “control” means, with respect to any specified Person, the power, direct or indirect,
to direct or cause the direction of the management and policies of such Person, whether through
ownership of voting securities, by contract or otherwise; and the terms “controlling” and
“controlled” shall have correlative meanings.

          “Distributable Cash” means the amount of cash which the Board of Managers reasonably
deems available for distribution to the Members, taking into account all debts, liabilities, and
obligations of the Company then due, and working capital and other amounts, including amounts
required for ongoing operations under the Gaming Laws, which the Board of Managers reasonably deems
necessary for the Company’s business or to place into reserves for customary and usual expenditures
or claims with respect to such business. Proceeds received by the Company in any Capital
Transaction shall be included in total cash receipts of the Company for purposes of computing
Distributable Cash, and shall be distributed in accordance with Section 6.1(b).

          “Economic Interest” means the right to receive distributions of the Company’s assets
and allocations of income, gain, loss, deduction, credit and similar items from the Company
(including any Tax Distributions distributed pursuant to Section 6.2) pursuant to this
Agreement and the Act, but shall not include any other rights of a Member, including the right to
vote or participate in the management of the Company, or except as provided in the Act, any right
to information concerning the business and affairs of the Company.

          “Exchange Act” means the Securities Exchange Act of 1934 and the rules and regulations
of the United States Securities and Exchange Commission thereunder.

          “Exchange Act Report” means any report, information or document that the Company is
required to file with the United States Securities and Exchange Commission pursuant to the Exchange
Act, including the quarterly, annual or current reports required to be filed on Forms 10-Q, 10-K
and 8-K.

          “Fair Market Value” means, with respect to any property or asset, the fair market
value of such property or asset as determined in good faith by the Board of Managers.

5

Table of Contents

          “Fiscal Year” means the Company’s fiscal year, which shall be the twelve (12) months
ended on December 31 of each year, unless a different year end is required by applicable law.

          “GAAP” means United States generally accepted accounting principles in effect from
time to time.

          “Gaming Authority” means any federal, state or local governmental, regulatory or
administrative authority, agency, board or official responsible for or involved in the regulation
of gaming or gaming activities in any jurisdiction, including within the State of Nevada,
specifically, the Nevada Gaming Commission, the Nevada State Gaming Control Board, and applicable
local authorities.

          “Gaming Compliance Committee” means the committee established by the Board of Managers
of the Company in satisfaction of the condition imposed by that certain Order of Registration (as
may be amended from time to time), entered by the Nevada Gaming Commission effective October 20,
2011, and as established pursuant to Article III of the Compliance Plan.

          “Gaming Laws” means those laws pursuant to which any Gaming Authority possesses
regulatory, licensing or permit authority over gaming within any jurisdiction and, within the State
of Nevada, specifically, the Nevada Gaming Control Act, as codified in the Chapter 463 of the
Nevada Revised Statutes, and the regulations of the Nevada Gaming Commission and Nevada State
Gaming Control Board promulgated thereunder, as amended from time to time.

          “Gaming Licenses” shall mean all licenses, consents, permits, approvals,
authorizations, registrations, findings of suitability, franchises and entitlements issued by any
Gaming Authority necessary for or relating to the conduct of activities under the Gaming Laws.

          “Governmental Authority” means any: (i) nation, state, commonwealth, province,
territory, county, municipality, district or other jurisdiction of any nature; (ii) U.S. and other
federal, state, local, municipal, foreign or other government; or (iii) governmental or
quasi-governmental authority of any nature (including any governmental division, department,
agency, commission, instrumentality, official, organization, unit, body or entity, any court or
other tribunal and for the avoidance of doubt, any Gaming Authority).

          “Hedging Obligation” means, with respect to any Person, any liability of such Person
under any interest rate, currency or commodity swap agreement, cap agreement or collar agreement,
and any other agreement or arrangement designed to protect a Person against fluctuations in
interest rates, currency exchange rates or commodity prices.

          “Hotel” means the real property, improvements and personalty constituting the Aliante
Station Casino + Hotel (including all assets used in connection with the hotel and gaming business
at such hotel).

6

Table of Contents

          “Incentive Units” means the units of Membership Interests designated as “Incentive
Units” and having the rights and preferences established by the Board of Managers pursuant to
Section 3.11.

          “Incentive Unit Distribution Threshold” means, as of any specified date,
$80,000,000.00 (or such other amount as determined by the Board of Managers), reduced by the
cumulative amount of all prior distributions made to any Member pursuant to Section 6.1(a)
or Section 6.1(b).

          “Incremental Distribution Threshold” means, as of any date of determination, with
respect to each Subsequent Incentive Unit, the amount that each Initial Incentive Unit would
receive if, immediately prior to the issuance of such Subsequent Incentive Unit, the Company was
liquidated at the fair market value of the assets of the Company, as reasonably determined by the
Board of Managers in good faith, and the proceeds distributed pursuant to Section 9.3.

          “Indebtedness” of a Person means, at any date, without duplication, (i) all
obligations of such Person for borrowed money, (ii) all obligations of such Person evidenced by
bonds, debentures, notes or other similar instruments (excluding contingent obligations under
surety bonds), (iii) all obligations of such Person to pay the deferred purchase price of property
or services, except trade accounts payable arising and paid in the ordinary course of business,
(iv) the capitalized amount of all capital leases of such Person, (v) all non-contingent
obligations of such Person to reimburse any bank or other Person in respect of amounts paid under a
letter of credit, bankers acceptance, surety bond or similar instrument, (vi) all equity
securities of such Person subject to repurchase or redemption otherwise than at the sole option of
such Person, (vii) all obligations secured by a Lien on any asset of such Person, whether or not
such obligation is otherwise an obligation of such Person, (viii) all Hedging Obligations of such
Person, and (ix) all Indebtedness of others guaranteed by such Person. Any obligation constituting
Indebtedness solely by virtue of the preceding clause (vii) shall be valued at the lower of the
Fair Market Value of the corresponding asset and the aggregate unpaid amount of such obligation.

          “Initial Incentive Units” shall mean the Incentive Units first issued under this
Agreement.

          “Initial Public Offering” means the first firm commitment underwritten offering of the
IPO Corporation conducted pursuant to an effective registration statement under the Securities Act
(other than a registration statement on Forms S-4 or S-8 or any similar form).

          “Investment Company Act” means the Investment Company Act of 1940.

          “IRS” means the Internal Revenue Service.

          “Law” means any applicable constitutional provision, statute, act, code (including the
Code), law, regulation, rule, ordinance, order, writ, decree, ruling, proclamation, resolution,
judgment, decision, declaration, or interpretative or advisory opinion or letter of a Governmental
Authority and shall include, for the avoidance of any doubt, the Act.

7

Table of Contents

          “Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security
interest or encumbrance of any kind, or any other type of preferential arrangement that has the
practical effect of creating a security interest, in respect of such asset. For the purposes of
this Agreement, the Company shall be deemed to own subject to a Lien any asset which it has
acquired or holds subject to the interest of a vendor or lessor under any conditional sale
agreement, capital lease or other title retention agreement relating to such asset.

          “Major Member” means, as of any time of determination, any Member that holds five
percent (5%) or more of the then total outstanding Units (excluding any Incentive Units) held by
all Members.

          “Majority-in-Interest of the Members” means, as of any time of determination, Members
holding more than fifty percent (50%) of the then total outstanding Units (excluding any Incentive
Units) held by all Members.

          “Management Agreement” means that certain Management Agreement, dated as of the date
hereof, by and among Aliante Gaming and the Management Company, or any agreement entered into any
successor Management Company after the date hereof, pursuant to which the Management Company will
provide management services to Aliante Gaming in connection with the operation of the Hotel.

          “Management Company” means Station Casinos, LLC, a Nevada limited liability company,
or any successor thereto, in its capacity as the management company for the Hotel pursuant to the
Management Agreement.

          “Member” means, collectively, the Persons set forth on Schedule I on the date
hereof and shall include any Person who is hereafter admitted as a Member from and after the date
hereof pursuant to this Agreement and becomes bound by the terms of this Agreement. The Members
shall constitute the “Members” (as such term is defined in the Act) of the Company.

          “Member Nonrecourse Debt Minimum Gain” means “partner nonrecourse debt minimum gain,”
as defined in section 1.704-2(i)(2) of the Treasury Regulations, and shall be determined in
accordance with section 1.704-2(i)(3) of the Treasury Regulations.

          “Membership Interest” means a Member’s ownership interest in the Company including any
and all benefits to which the holder of such Membership Interest may be entitled as provided in
this Agreement or under the Act, including such Member’s Economic Interest and to the extent
provided in this Agreement, the right to vote on or participate in the management of the Company
and its Subsidiaries and the right to receive information concerning the business and affairs, of
the Company and its Subsidiaries, together with all obligations of a Member to comply with the
terms and provisions of this Agreement.

          “Net Income” and “Net Loss” mean, for any Fiscal Year (or portion thereof),
the taxable income or loss of the Company, or particular items thereof, determined in accordance
with the accounting method used by the Company for United States federal income tax purposes in
accordance with Section 703(a) of the Code with the following adjustments: (a) all items of
income, gain, loss, or deduction allocated pursuant to Section 6.4(d)) shall not be taken
into

8

Table of Contents

account in computing such taxable income or loss; (b) any income of the Company that is exempt
from United States federal income taxation and not otherwise taken into account in computing Net
Income and Net Loss shall be added to such taxable income or loss; (c) if the Carrying Value of any
asset differs from its adjusted tax basis for United States federal income tax purposes, any gain
or loss resulting from a disposition of such asset shall be calculated with reference to such
Carrying Value; (d) if the Carrying Value of any asset differs from its adjusted tax basis for
United States federal income tax purposes at the beginning of such Fiscal Year (or portion thereof)
the amount of depreciation, amortization or cost recovery deductions with respect to such asset
shall for purposes of determining Net Income and Net Loss be an amount which bears the same ratio
to such beginning Carrying Value as the United States federal income tax depreciation, amortization
or other cost recovery deductions bears to such beginning adjusted tax basis (provided,
that if the United States federal income tax depreciation, amortization or other cost recovery
deduction is zero, the Board of Managers may use any reasonable method for purposes of determining
depreciation, amortization or other cost recovery deductions in calculating Net Income and Net
Loss); (e) any expenditures of the Company that are described in Section 705(a)(2)(B) of the Code
or are treated as described in Section 705(a)(2)(B) of the Code pursuant to Treasury Regulation
§ 1.704-1(b)(2)(iv)(i) and not otherwise taken into account in computing Net Income and Net Loss
shall be treated as deductible items; and (f) if the Carrying Value of any property of the Company
is adjusted as provided in the definition of Carrying Value, the amount of such adjustment shall be
taken into account, immediately prior to the event giving rise to such adjustment, as gain or loss
from the disposition of such property.

          “Non-Principal Member” means, as of any time of determination, any Member that holds
less than ten percent (10%) of the then total outstanding Units (excluding any Incentive Units)
held by all Members, and it is understood and agreed that Members who cease to be Principal Members
shall thereafter be Non-Principal Members.

          “NYSE” means the New York Stock Exchange.

          “Percentage Interest” means, with respect to any Member (or group of Members) as of
any date, the fraction (expressed as a percentage), the numerator of which is the number of Units
held by such Member on such date and the denominator of which is the sum of the aggregate number of
Units owned by all Members (or the relevant Members if the calculation is made with respect to a
specified group of Members) on such date, excluding, for the purpose of calculating any
Percentage Interest pursuant to Section 3.8 or Section 6.1(a), any Incentive Units.
The Percentage Interests of the Members are set forth on Schedule I.

          “Permitted Transferee” means, (i) with respect to any Member who is an individual, a
member of such Member’s immediate family, which shall include and be limited to such Member’s
spouse, children or grandchildren, or a trust, corporation, partnership or limited liability
company all of the beneficial interests of which shall be held by such Member or one or more
members of such Member’s immediate family, and shall include such Member’s heirs, successors,
administrators and executors; or (ii) with respect to any Member that is an entity, any Affiliate
of such Member.

9

Table of Contents

          “Person” means any individual, firm, corporation, partnership, trust, incorporated or
unincorporated association, joint venture, joint stock company, limited liability company,
enterprise or other entity of any kind.

          “Prime Rate” means the prime rate (the base rate on corporate loans at large U.S.
money center commercial banks) as published in the Money Rates section of the Wall Street Journal
or other equivalent publication if the Wall Street Journal no longer publishes such information;
provided, that if more one such prime rate is published on any given day, the lowest of
such published rates shall be the Prime Rate for purposes of this Agreement.

          “Principal Member” means, as of any time of determination, any Member that holds ten
percent (10%) or more of the then total outstanding Units (excluding any Incentive Units) held by
all Members.

          “Profits Interest” means an interest in the future profits of the Company satisfying
the requirements for a partnership profits interest transferred in connection with the performance
of services, as set forth in IRS Revenue Procedures 93-27 and 2001-43, unless superseded by any
current or future IRS guidance or other authority, including but not limited to, IRS Notice
2005-43, in which case, as set forth in Proposed Treasury Regulations Section 1.83-3(l), Notice
2005-43 and any similar or related authority.

          “Public Offering” means the sale of equity securities of the IPO Corporation to the
public pursuant to an effective registration statement (other than Form S-4 or Form S-8 or any
similar or successor form) filed under the Securities Act or any comparable law or regulatory
scheme of any foreign jurisdiction.

          “Qualified IPO” means an Initial Public Offering (i) for which cash proceeds to be
received by the IPO Corporation and the Shareholders in such offering ((or series of related
offerings) without deducting underwriter discounts, expenses and commissions) are at least
$50,000,000 and (ii) where the implied valuation of the Company and its Subsidiaries (on a
consolidated basis) in such offering (or series of related offerings) is at least two (2) times the
valuation of the Company and its Subsidiaries (on a consolidated basis) immediately following the
consummation of the Restructuring.

          “Registration Rights Addendum Agreement” means an Addendum Agreement in the form set
forth in Exhibit A to the Registration Rights Agreement.

          “Representatives” means with respect to any Member, (i) such Member’s officers,
directors, managers, shareholders, partners, members, equity holders, parents, agents, employees,
representatives (including attorneys, accountants, consultants, bankers and financial advisors of
such Member or its Affiliates) and Affiliates (including any Managers designated by such Member)
and (ii) with respect to each Member that is a limited partnership or limited liability company,
such Member’s former partners or members who retained an economic interest in such Member, and
current or prospective partners, limited partners, members, general partners or management
companies (or any employee, attorney, accountant, consultant, banker or financial advisor or
representative of any of the foregoing Persons described in this clause (ii)).

10

Table of Contents

          “Securities Act” means the Securities Act of 1933 and the rules and regulations of the
United States Securities and Exchange Commission promulgated thereunder.

          “Subsequent Incentive Unit” means each Incentive Unit which is issued subsequent to
the Initial Incentive Units.

          “Subsidiary” means (i) any corporation or other entity a majority of the capital stock
of which having ordinary voting power to elect a majority of the board of directors or other
Persons performing similar functions is at the time owned, directly or indirectly, with power to
vote, by the Company or any direct or indirect Subsidiary; or (ii) a partnership in which the
Company or any direct or indirect Subsidiary is a general partner.

          “Tax Distribution Date” means January 10, April 10, June 10 and September 10 of each
fiscal year.

          “Treasury Regulations” means the proposed, temporary and final regulations promulgated
under the Code by the U.S. Department of Treasury.

          “Units” means the units of Membership Interests designated as “Units” and having the
rights and preferences established by the Board of Managers pursuant to Section 3.1.

          “Unrecovered Capital” means, with respect to any Member, the total Capital
Contributions made by such Member, reduced by the total amount distributed to such Member pursuant
to Section 6.1(a) and Section 6.1(b).

          Section 1.2 Other Definitions. The following capitalized terms are defined in the following
Sections of this Agreement:

	 	 	 
	Term	 	Section
	Acquired Units

	 	Recitals
	Agreement

	 	Preamble
	Aliante Gaming

	 	Recitals
	Asset Manager Engagement Letter

	 	Section 4.5(a)
	Board of Managers

	 	Section 5.1
	Capital Account

	 	Section 3.6(a)
	Certificate of Formation

	 	Recitals
	Company

	 	Preamble
	Covered Investor

	 	Section 4.5(a)
	Covered Person

	 	Section 10.1
	Dissolution Event

	 	Section 9.1
	Distribution

	 	Section 6.1
	Excess Tax Distribution

	 	Section 6.2(a)
	Gaming Event

	 	Section 11.19(a)(ii)
	Initial Manager

	 	Recitals
	Initial Member

	 	Recitals
	IPO Corporation

	 	Section 7.9(b)

11

Table of Contents

	 	 	 
	Term	 	Section
	IPO Restructuring

	 	Section 7.9(b)
	Liabilities

	 	Section 10.1
	Liquidator

	 	Section 9.3
	Manager

	 	Section 5.2(a)
	North LV HoldCo

	 	Recitals
	Notice Period

	 	Section 7.2
	Offered Units

	 	Section 7.2
	Original Agreement

	 	Recitals
	Owner License

	 	Section 8.10
	Owner Persons

	 	Section 8.10
	Parties

	 	Preamble
	Party

	 	Preamble
	Permitted Transfer

	 	Section 7.1(a)(ii)
	Plan

	 	Recitals
	Preemptive Percentage

	 	Section 3.8(b)
	Promissory Note

	 	Section 11.19(a)(iv)
	Registered Agent

	 	Section 2.4
	Registration Rights Agreement

	 	Recitals
	Restructuring

	 	Recitals
	Subscription Period

	 	Section 3.8(a)
	Tax Distribution

	 	Section 6.2(a)
	Tax Liability Amount

	 	Section 6.2(a)
	Tax Matters Member

	 	Section 8.7(b)
	Transfer

	 	Section 7.1(a)(i)
	Transfer Notice

	 	Section 7.2
	Transferring Member

	 	Section 7.2
	Unsuitable Member

	 	Section 11.19(a)(ii)
	Withholding Advances

	 	Section 6.3(b)

          Section 1.3 Interpretation. For purposes of this Agreement, except as otherwise expressly
provided herein or unless the context otherwise requires: (a) words using the singular or plural
number shall also include the plural or singular number, respectively, and the use of any gender
herein shall be deemed to include the other genders; (b) references herein to “Articles,”
“Sections,” “subsections” and other subdivisions, and to Exhibits, Annexes and other attachments,
without reference to a document are to the specified Articles, Sections, subsections and other
subdivisions of, and Exhibits, Annexes and other attachments to, this Agreement; (c) a reference to
a subsection without further reference to a Section is a reference to such subsection as contained
in the same Section in which the reference appears, and this rule shall also apply to other
subdivisions within a Section or subsection; (d) the words “herein,” “hereof,” “hereunder,”
“hereby” and other words of similar import refer to this Agreement as a whole and not to any
particular provision; (e) the words “include,” “includes” and “including” are deemed to be followed
by the phrase “without limitation”; (f) any reference to the Code, the Treasury Regulations, the
Act or other statutes or laws will include all amendments, modifications or replacements of the
specified sections and provisions concerned; (g) “or” is not exclusive; (h) any statute or laws
defined or referred to herein shall include any rules, regulations

12

Table of Contents

or forms promulgated thereunder
from time to time and as from time to time amended, amended and restated, modified or supplemented,
including by succession of comparable successor rules, regulations or forms; and (i) the number of
Units owned or held by a Member and its Affiliates receiving Units in a Permitted Transfer shall be
aggregated solely for the purpose of determining whether such Member satisfies any ownership
threshold (whether expressed as a number, percentage, fraction or otherwise) set forth in this
Agreement.

ARTICLE II

ORGANIZATIONAL MATTERS

          Section 2.1 Formation.

               (a) The Company was formed pursuant to the Act by the filing of the Certificate of Formation
with the Secretary of State of the State of Delaware on May 11, 2011. The Members hereby agree
that the Company shall be governed by, and the rights, duties and liabilities of the Members shall
be as provided in, the Act and this Agreement. To the extent that the rights or obligations of any
Member are different by reason of any provision of this Agreement than they would be in the absence
of such provision, this Agreement shall, to the extent permitted by the Act, control.

               (b) Takuyo Furukawa, as an “authorized person” within the meaning of the Act, has executed,
delivered and filed the Certificate of Formation with the Secretary of State of the State of
Delaware. Upon the filing of the Certificate of Formation with the Secretary of State of the State
of Delaware, his powers as an authorized person ceased and any officer of the Company is hereby
authorized, as an “authorized person” within the meaning of the Act, at any time that the requisite
Managers (as defined below), and if required pursuant to this Agreement, Members, have approved an
amendment to the Certificate of Formation in accordance with Section 11.13(a), to promptly
execute, deliver and file such amendment in accordance with the Act.

               (c) The Members hereby ratify and approve the Initial Manager’s, Initial Member’s and North LV
HoldCo’s execution of consents, agreements, documents and instruments, as applicable, on the
Company’s behalf (including the authorization of the issuance of limited liability company
interests of the Company) and the filing of forms and documents with governmental authorities and
agencies, including the U.S. Securities and Exchange Commission, prior to the date hereof. The
Initial Manager shall cease to hold the office of initial manager and all of the attendant powers
thereto following the selection of the Company’s Board of Managers, the initial composition of
which is set forth in Section 5.2(a), on the date hereof.

          Section 2.2 Name. The name of the Company is currently ALST Casino Holdco, LLC. The business of
the Company may be conducted under that name or, upon compliance with applicable Law, any other
name that the Board of Managers deems appropriate or advisable.

          Section 2.3 Term. The Company shall continue in existence perpetually, unless sooner dissolved as
provided by this Agreement or required by the Act.

13

Table of Contents

          Section 2.4 Registered Agent and Registered Office. The registered agent for service of process
on the Company shall be Corporation Service Company, or any successor registered agent appointed by
the Board of Managers in accordance with the Act (the “Registered Agent”) and the
Registered Agent shall maintain the registered office of the Company as required by the Act. The
address of the Company’s initial registered office shall be 2711 Centerville Road, Suite 400, City
of Wilmington, County of New Castle, State of Delaware 19808 or such other place within the State
of Delaware as may be determined by the Board of Managers.

          Section 2.5 Place of Business. The principal place of business of the Company will be located at,
and the Company’s business will be conducted from, such place or places within or outside the State
of Delaware as the Board of Managers may from time to time designate.

          Section 2.6 Purpose and Business of the Company. Subject to the limitations on the activities of
the Company otherwise specified in this Agreement, the purpose and business of the Company shall be
the conduct of any business, purpose or activity that may be conducted by a limited liability
company organized pursuant to the Act. In connection therewith, the Company shall have authority
to engage in any lawful business, purpose or activity permitted by the Act, and it shall possess
and may exercise all of the powers and privileges granted by the Act or which may be exercised by
any limited liability company organized pursuant to the Act, together with any powers incidental
thereto, so far as such powers or privileges are necessary or convenient to the conduct, promotion
or attainment of the business, purposes or activities of the Company.

          Section 2.7 Foreign Qualification. Prior to the Company’s conducting business in any jurisdiction
other than Delaware, the Board of Managers shall cause the Company to comply, to the extent
procedures are available and those matters are reasonably within the control of the Board of
Managers, with all requirements necessary to qualify the Company as a foreign entity in that
jurisdiction if such qualification is required. At the request of the Board of Managers, each
Member shall execute, acknowledge, swear to, and deliver all certificates and other instruments
conforming with this Agreement that are necessary or appropriate to qualify, continue, and
terminate the Company as a foreign entity in all such jurisdictions in which the Company may
conduct business; provided, that no Member shall be required to file any general consent to
service of process or to qualify as a foreign corporation, limited liability company, partnership
or other entity in any jurisdiction in which it is not already so qualified.

          Section 2.8 Title to Assets. Title to Company assets shall be in the name of the Company. The
Members shall not have any interest in any specific assets of the Company. The interest of the
Members in the Company is personal property.

          Section 2.9 Value Determinations. With respect to any matters provided hereunder as to which a
Member’s rights are determined based upon the value of its Units or otherwise, the Board of
Managers shall, in good faith, make such determinations of value with respect thereto as if the
Company were dissolved, its affairs wound up and its assets sold for cash equal to their fair
market value, all Company liabilities were satisfied and the net assets of the

14

Table of Contents

Company were
distributed in accordance with Section 9.3, and may cause the Company to engage from time
to time an internationally recognized financial advisory or valuation firm to advise with respect
to such determinations of fair market value with respect thereto. The Company shall pay all
expenses incurred in connection with such valuations.

ARTICLE III

UNITS; CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS AND

PREEMPTIVE RIGHTS

          Section 3.1 Units. Subject to Section 3.8 and the last paragraph of Section 4.12,
the Company is authorized to issue Membership Interests designated as “Units,” which shall
constitute limited liability company interests under the Act at such prices per Unit as may be
determined by the Board of Managers and in exchange for contributions of cash or property, the
provision of services or such other consideration, as may be determined by the Board of Managers.
The number of Units issued to Members shall be listed in Schedule I, which may be amended
from time to time as required to reflect issuances of Units to new Members, changes in the number
of Units held by Members and to reflect the addition or cessation or withdrawal of Members. The
number of Units held by each Member shall not be affected by (a) any issuance by the Company of
Units to other Members or (b) any change in the Capital Account of such Member (other than such
changes to reflect additional Capital Contributions from such Member in exchange for new Units).
Holders of Units shall (i) share in each item of Company income, gain, loss, deduction and credit
as provided in this Agreement, (ii) be entitled to all distributions made pursuant to this
Agreement, and (iii) be entitled to such other voting and participation rights as are set forth in
this Agreement and provided under the Act.

          Section 3.2 Additional Classes. Subject to Section 3.8 and the last paragraph of
Section 4.12, in addition to the Units, the Company may issue additional classes of
securities or other interests in the Company as the Board of Managers shall determine in good faith
with such designations, preferences, rights, powers and duties, as shall be fixed by the Board of
Managers and which may include (but shall not be limited to), additional classes of Units or
Membership Interests reflecting additional Capital Contributions, to which the assets and
liabilities and income and expenditure attributable or allocated to such class shall be applied or
charged.

          Section 3.3 Certificates. In the sole discretion of the Board of Managers, the issued and
outstanding Units may be represented by certificates. In addition to any other legend which the
Company may deem advisable under the Securities Act, certain state securities Laws and Gaming Laws
and subject to this Section 3.3, all certificates representing issued and outstanding Units
shall be endorsed as follows:

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
CERTAIN RESTRICTIONS ON TRANSFER AND OTHER TERMS AND CONDITIONS SET
FORTH IN THE AMENDED AND RESTATED OPERATING AGREEMENT, BY AND

15

Table of Contents

AMONG
ALST CASINO HOLDCO, LLC (THE “COMPANY”) AND ITS MEMBERS, AS
AMENDED FROM TIME TO TIME. A COPY OF THE ABOVE REFERENCED AGREEMENT
IS ON FILE AT THE PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY. THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”) OR UNDER THE SECURITIES LAWS OF ANY STATE OR FOREIGN
JURISDICTION, AND MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND
APPLICABLE STATE OF FOREIGN SECURITIES LAWS OR PURSUANT TO AN
APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT AND SUCH LAWS (AND, IN SUCH CASE, AN OPINION OF
COUNSEL REASONABLY SATISFACTORY TO THE BOARD OF MANAGERS OF THE
COMPANY SHALL HAVE BEEN DELIVERED TO THE COMPANY TO THE EFFECT THAT
SUCH OFFER OR SALE IS NOT REQUIRED TO BE REGISTERED UNDER THE
SECURITIES ACT OR ANY OTHER APPLICABLE FEDERAL, FOREIGN, STATE,
PROVINCIAL, SECURITIES OR OTHER SIMILAR LAWS).

THE OFFERING, SALE, ASSIGNMENT, TRANSFER, PLEDGE OR OTHER
DISPOSITION OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE SHALL
BE INEFFECTIVE UNLESS APPROVED IN ADVANCE BY THE NEVADA GAMING
COMMISSION. IF AT ANY TIME THE NEVADA GAMING COMMISSION FINDS THAT
AN OWNER OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE IS
UNSUITABLE TO CONTINUE TO HAVE AN INVOLVEMENT IN GAMING IN NEVADA,
SUCH OWNER MUST DISPOSE OF THE SECURITIES AS PROVIDED BY THE LAWS OF
THE STATE OF NEVADA AND THE REGULATIONS OF THE NEVADA GAMING
COMMISSION THEREUNDER. SUCH LAWS AND REGULATIONS RESTRICT THE RIGHT
UNDER CERTAIN CIRCUMSTANCES TO: (A) PAY OR RECEIVE ANY DIVIDEND OR
INTEREST UPON ANY SUCH SECURITIES; (B) EXERCISE, DIRECTLY OR THROUGH
ANY TRUSTEE OR NOMINEE, ANY VOTING RIGHT CONFERRED BY SUCH
SECURITIES; OR (C) RECEIVE ANY REMUNERATION IN ANY FORM FROM THE
CORPORATION FOR SERVICES RENDERED OR OTHERWISE.”

16

Table of Contents

          Except as otherwise expressly provided in this Agreement, all certificates or other
instruments representing Units hereafter issued to or acquired by any of the Members or their
successors, assigns or transferees shall bear the legends set forth above (unless the Company’s
counsel advises that such legends are not required), and the Units represented by such certificates
or instruments shall be subject to the applicable provisions of this Agreement. Whenever the
restrictions imposed by this Agreement shall terminate as to any particular Units (including
pursuant to Article IX), the holder thereof shall be entitled to receive from the Company,
without expense, upon delivery to the Company of the existing certificate representing such Units,
a new certificate not bearing the respective legends otherwise required pursuant to this
Section 3.3. At any time when any particular Units are permitted to be Transferred without
restriction pursuant to Rule 144(d) promulgated under the Securities Act and/or without restriction
pursuant to applicable Gaming Laws, the holder thereof shall be entitled to receive from the
Company, without expense, upon delivery to the Company of the existing certificate representing
such Units, a new certificate not bearing the corresponding legend(s) otherwise required pursuant
to this Section 3.3.

          Section 3.4 Issuance of Units. The Company is hereby authorized to issue an unlimited number of
Units. On the date hereof, the Company shall issue to each Member, the number of Units and the
Percentage Interest in the Company as set forth opposite its name on Schedule I.

          Section 3.5 Capital Contributions. Each Member as of the date hereof shall be deemed to have made
a Capital Contribution to the Company in the amount designated as such Member’s “Capital
Contribution” opposite such Member’s name on Schedule I. Any Member admitted to the
Company after the date hereof will be assigned such Percentage Interest (and the Percentage
Interests of each other Member shall be reduced by the Percentage Interest of such newly admitted
Member in proportion to their respective Percentage Interests) and will make such Capital
Contributions, if any, as the Board of Managers deems appropriate.

          Section 3.6 Capital Accounts.

               (a) The Company shall establish a separate capital account (a “Capital Account”) for
each Member on the books of the Company in accordance with the following provisions:

                    (i) Each Member’s Capital Account shall be increased by the amount of: (A) such Member’s
Capital Contributions; (B) any Net Income or other item of income or gain allocated to such Member
pursuant to Article VI; and (C) Company liabilities, if any, assumed by such Member or
secured, in whole or in part, by any Company assets that are distributed to such Member.

                    (ii) Each Member’s Capital Account shall be decreased by the amount of: (A) cash and the Fair
Market Value on the date of distribution of any other Company

17

Table of Contents

property distributed to such Member
pursuant to Article VI and Article IX; (B) any Net Loss or other item of loss or
deduction allocated to such Member pursuant to Article VI; and (C) liabilities, if any, of
such Member assumed by the Company.

                    (iii) The Company shall revalue the Capital Accounts of the Members in accordance with
Treasury Regulation § 1.704-1(b)(2)(iv)(f) at the times specified in the definition of “Carrying
Value.”

               (b) No Member shall be entitled to interest on any portion of such Member’s Capital Account.
No Member shall be required to restore by way of contribution any deficit in such Member’s Capital
Account. Except as set forth herein, no Member, regardless of the nature of such Member’s Capital
Contribution, shall have any right to demand to withdraw capital, demand or receive distributions
or other returns of any portion of such Member’s Capital Account, except as expressly provided in
this Agreement. No Member shall have the right to receive property other than cash except as may
be specifically provided herein.

               (c) If any Person becomes a substituted Member in accordance with the provisions of
Article VII, such substituted Member shall succeed to the Capital Account of the
transferor Member to the extent such Capital Account relates to the transferred Units (or portion
thereof).

               (d) The foregoing provisions and the other provisions of this Agreement relating to the
maintenance of Capital Accounts are intended to comply with Treasury Regulation
§ 1.704-1(b)(2)(iv), and shall be interpreted and applied in a manner consistent with such intent.

          Section 3.7 No Obligation for Additional Capital Contributions. No Member or Affiliate of a
Member will be required to make a Capital Contribution, loan or advance to the Company or guaranty
or make any other financial commitment with respect to any debt or other obligation of the Company,
including to fund operations of the Company or meet any tax liabilities of the Members (including
tax liabilities arising from phantom income). No Member or Affiliate of a Member shall make any
additional Capital Contribution without the prior written approval of the Board of Managers.

          Section 3.8 Preemptive Rights.

               (a) Prior to the earlier of a Qualified IPO and a Change of Control Transaction, if the
Company proposes to issue additional equity securities of the Company (including securities
exercisable for or convertible into equity securities), the Company shall deliver to each Major
Member a written notice of such proposed issuance at least thirty (30) days prior to the date of
the proposed issuance (the period from the effectiveness pursuant to Section 11.12 of such
notice until the expiration of such thirty (30) day period, the “Subscription Period”).
Such notice shall include, to the extent applicable, (i) the amount, kind and terms of the equity
securities to be included in the issuance, (ii) the price of the equity securities to be included
in the issuance, and (iii) the proposed issuance date, if known.

18

Table of Contents

               (b) Each Major Member shall have the option, exercisable at any time during the first twenty
(20) days of the Subscription Period by delivering an irrevocable written notice to the Company
(except as otherwise provided in this Section 3.8) and on the same terms as those of the
proposed issuance of such additional equity securities (including the number or amount, as
applicable, of equity securities issuable upon exercise or conversion of any security), to
irrevocably subscribe for such number or amount, as applicable, of equity securities as is equal to
the product of (A) the number or amount of any such additional equity securities (including
securities exercisable for or convertible into equity securities) to be offered and (B) a fraction
the numerator of which is the number of Units (excluding Incentive Units) owned by such Major
Member and its Affiliates and the denominator of which is the total number of Units (excluding
Incentive Units) owned by all Major Members and their Affiliates (the “Preemptive
Percentage”), in each case, on the same terms and conditions as are to be provided to the
proposed purchaser in the issuance in question. Each Major Member who does not exercise such
option in accordance with the above requirements shall be deemed to have waived all of such Major
Member’s rights with respect to such issuance. In the event that any Major Member does not elect
to purchase its aggregate Preemptive Percentage of the additional equity securities (including
securities exercisable for or convertible into equity securities), the Company shall deliver to
each Major Member (other than declining Major Members or Major Members who elect to purchase less
than the amount offered to it) a written notice thereof no later than the 25th day of
the Subscription Period, including the number or amount, as applicable, of equity securities which
were subject to the purchase right of such declining Major Member(s), and each other Major Member
may subscribe for not more than its Preemptive Percentage (calculated using the Percentage Interest
of such Major Member relative to all non-declining Major Members) of such declined equity
securities before the expiration of the Subscription Period.

               (c) If at the end of the 90th day after the date of the effectiveness of the notice
contemplated by clause (a) above, as such period may be extended to obtain any required regulatory
approvals, the Company has not completed the issuance, each Major Member shall be released from
such Major Member’s obligations under the written commitment, the notice shall be null and void,
and it shall be necessary for a separate notice to be furnished, and the terms and provisions of
this Section 3.8 separately complied with, in order to consummate such issuance.

               (d) In the event that the participation in the issuance by a Major Member as a purchaser would
require under applicable Law (i) the registration or qualification of such securities or of any
Person as a broker or dealer or agent with respect to such securities where such registration or
qualification is not otherwise required for the issuance, or (ii) the provision to any Major Member
of any specified information regarding the Company or the securities to be issued that is not
otherwise required to be provided for the issuance, such Major Member shall not have the right to
participate in the issuance.

               (e) Each Major Member shall take or cause to be taken all such reasonable actions as may be
necessary or reasonably desirable in order expeditiously to consummate each issuance pursuant to
this Section 3.8; provided, however, that, in no event shall any Major
Member be required to provided non-public financial or other information regarding such Major
Member or any of its Affiliates, other than information solely with respect to the Major Member’s
status as a Member and an accredited investor.

19

Table of Contents

               (f) Notwithstanding the requirements of this Section 3.8, the Company may proceed with
any issuance that would otherwise be subject to this Section 3.8 prior to having complied
with the provisions of this Section 3.8; provided, that the Company shall:

     (i) provide to each Major Member in connection with such issuance (A) prompt
notice of such issuance and (B) the notice described in clause (a) above in which
the actual price of the equity securities shall be set forth;

     (ii) within a reasonable period of time following the issuance, offer to
issue (or have Transferred) to each Major Member such number or amount of equity
securities of the type issued in the issuance as may be requested by such Major
Member (not to exceed the number or amount of such securities which is sufficient
to give such Major Member the same fractional interest in the Company, giving
effect to such issuance and any further issuances pursuant to this clause (f), as
it would have had if the Company had served a notice pursuant to, and such Major
Member had exercised its rights in full under, Section 3.8(a) and
3.8(b) prior to the issuance) on the same terms and conditions with
respect to such securities as the subscribers in the issuance received; and

     (iii) keep such offer open for a period of thirty (30) Business Days, during
which period, each such Major Member may accept such offer by sending an
irrevocable written acceptance to the Company committing to purchase in accordance
with the procedures set forth in Section 3.8(b), an amount of such
securities (not to exceed the amount specified in the offer made pursuant to
Section 3.8(f)(ii)).

               (g) The provisions of this Section 3.8 shall not apply to issuances by the Company as
follows:

     (i) any issuance of securities upon the exercise or conversion of any stock,
options, warrants or convertible securities outstanding on the date hereof or
issued after the date hereof in a transaction that complied with the provisions of
this Section 3.8;

     (ii) any issuance of equity securities, options, warrants or convertible
securities to officers, employees, directors or consultants (other than a Member
or an Affiliate thereof) of the Company or its Subsidiaries in connection with
such Person’s employment or consulting arrangements with the Company or its
Subsidiaries, in each case to the extent approved by the Board of Managers or
pursuant to an employment benefit plan, incentive award program or other
compensation arrangement;

     (iii) any issuance of equity securities, options, warrants or convertible
securities, in each case to the extent approved by the Board of Managers, (A) in
any direct or indirect business combination or acquisition

20

Table of Contents

transaction involving
the Company or any of its Subsidiaries, including with respect to a Change of
Control Transaction, (B) in connection with any joint venture or strategic
partnership entered into primarily for purposes other than raising capital (as
determined by the Board of Managers (or such other governing body of any
Subsidiary of the Company) in its sole discretion) or (C) to financial
institutions, commercial lenders, broker/finders or any similar party, or their
respective designees, as an “equity kicker” in connection with a transaction that
is primarily the incurrence or guarantee of Indebtedness by the Company or any of
its Subsidiaries;

     (iv) any issuance of securities in connection with any stock split, stock
dividend paid on a proportionate basis to all holders of the affected class of
equity interest or recapitalization approved by the Board of Managers; or

     (v) any issuance of equity securities, options, warrants or convertible
securities pursuant to a Public Offering or in connection with an Initial Public
Offering.

               (h) If the Company proposes to issue Indebtedness of the Company in a private issuance solely
to one or more Major Members, the Company shall deliver to each other Major Member notice of such
issuance and an opportunity to participate in such issuance pro rata with the other participating
Major Member(s) based on the Percentage Interest of such Major Member relative to all participating
Major Members.

               (i) The closing of a purchase of equity securities or Indebtedness of the Company by a Major
Member pursuant to this Section 3.8 shall take place at the principal office of the Company
on the closing date for the issuance, grant or sale of such equity securities or Indebtedness of
the Company (as applicable) as mutually agreed upon by the Company and the Major Members that have
elected to purchase such equity securities or Indebtedness of the Company (as applicable). At such
closing, such Major Members shall deliver bank checks or wire transfer of immediately available
funds to the Company in the amount of the purchase prices applicable to the equity securities or
Indebtedness of the Company (as applicable) being purchased by such Major Members. The Company
shall amend Schedule I to reflect the additional Capital Contribution by such Major Members
in connection with the exercise of their preemptive rights with respect to newly issued equity
securities of the Company in accordance with this Section 3.8.

          Section 3.9 Capital Structure Adjustments. No Unit splits, Unit combinations, distributions of
Units or other similar events involving any class of equity securities of the Company may be
effected unless such splits, combinations, distributions or similar events are effected
simultaneously and proportionately with respect to all other classes of equity securities of the
Company.

          Section 3.10 Regulatory Approvals. No Units, Membership Interests or other securities of the
Company shall be issued and no Units, Membership Interests or other securities

21

Table of Contents

of the Company or
Capital Account shall be Transferred, adjusted or subject to any other disposition without the
receipt of all approvals required under Gaming Laws.

          Section 3.11 Incentive Units.

               (a) The Board of Managers is authorized to issue one or more series of Incentive Units from
the authorized Units to Managers, officers, employees, consultants or other service providers of
the Company or its Subsidiaries; provided, that forty-three thousand two hundred (43,200)
Units are hereby authorized and shall be reserved for issuance as Incentive Units and shall be
issued at the discretion of the Board of Managers. The Board of Managers is further authorized to
adopt a plan pursuant to which the Incentive Units may be granted, if appropriate and compliant
with Rule 701 of the Securities Act or another applicable exemption. The Company and each Person
receiving Incentive Units hereby acknowledge and agree that the Board of Managers may designate
Incentive Units as Profits Interests and may vary the other rights and preferences thereof;
provided, that, notwithstanding anything in this Agreement to the contrary, all Incentive
Units shall be non-voting and non-transferable, except that Incentive Units may be transferred in
connection with a Capital Transaction entered into by the Company. The Board of Managers shall
determine in good faith the Incremental Distribution Threshold for any series of Subsequent
Incentive Units.

               (b) The Board of Managers may from time to time establish such vesting criteria for any series
of Incentive Units as the Board of Managers in its discretion determines.

               (c) All Members, whether parties hereto as of the date hereof or admitted after the date
hereof, consent to the taking of all actions, including amending this Agreement, that are approved
by the Board of Managers to the extent necessary or appropriate to cause the Incentive Units to be
treated as Profits Interests for all United States federal income tax purposes, to be valued based
on liquidation value or similar principles and to permit allocations of income to be made to each
Member to be respected even if such interests are subject to risk of forfeiture, including any
action required by the Company under Revenue Procedure 2001-43, unless superseded by IRS Notice
2005-43, in which case, such consent shall allow the Company to take any and all actions as may be
necessary or desirable pursuant to such notice, final or temporary regulations that may be
promulgated to bring into effect the Proposed Treasury Regulations Sections 1.83-3, 1.704-1,
1.706-3, 1.707-1, 1.721-1, 1.761-1 set forth in the notice of proposed rulemaking (REG–105346–03 ),
and any similar or related authority.

               (d) Unless otherwise determined by the Board of Managers, it shall be a condition subsequent
to any Person’s receipt of any Incentive Unit subject to vesting that such Person make an election
under Section 83(b) of the Code within thirty (30) days of the receipt of such Incentive Unit.

               (e) No Incentive Units shall have any preemptive rights pursuant to Section 3.8 and
the number of issued and outstanding Incentive Units shall be excluded from the calculation of the
total outstanding Units and Percentage Interest provided in Section 3.8.

22

Table of Contents

               (f) The Company shall amend Schedule I upon any issuance or forfeiture of Incentive
Units.

ARTICLE IV

MEMBERS

          Section 4.1 Limited Liability. Except as expressly set forth in this Agreement or required by any
non-waivable provision of applicable Law, no Member shall be personally liable for any Indebtedness
or other obligation or liability of the Company, whether such Indebtedness or other liability or
obligation arises in contract, tort, or otherwise.

          Section 4.2 Admission of Additional Members.

               (a) The Board of Managers may, subject to the receipt of all required Gaming Licenses under
applicable Gaming Laws, admit one or more additional Members to the Company from time to time in
accordance with the following provisions:

                    (i) Except in connection with the admission of any recipient of (x) Units as compensation for
his/her service on the Board of Managers or (y) Incentive Units, each such additional Member shall
have made a Capital Contribution in such amount and on such terms as the Board of Managers
determines to be appropriate based upon the needs of the Company, the net value of the Company’s
business, the Company’s financial condition, and other such factors used to determine the
then-prevailing private market value of the Company at the date of such admission of such
additional Member;

                    (ii) No additional Members shall be admitted if the effect of such admission would be to
terminate the Company within the meaning of Section 708(b) of the Code;

                    (iii) Each such additional Member executes an Addendum Agreement and a Registration Rights
Addendum Agreement; and

                    (iv) Each such additional Member pays any reasonable expenses as determined by the Board of
Managers in connection with his, her or its admission as a new Member.

          Notwithstanding the foregoing, Assignees may only be admitted as substitute Members in
accordance with Article VII.

               (b) The Company shall amend Schedule I to reflect the admission of additional Members.

               (c) Notwithstanding the provisions of this Section 4.2, no Person may be admitted as a
Member unless it has been found suitable to hold Units of the Company by all applicable Gaming
Authorities in circumstances where such approval is required and has obtained all necessary Gaming
Licenses.

23

Table of Contents

          Section 4.3 Termination of Membership Interest. Upon any attempted Transfer of all or a portion
of a Member’s Units in violation of Article VII, all rights associated with such Member’s
Membership Interest, other than such Member’s Economic Interest, held by such Member shall be
terminated by the Board of Managers and thereafter such Member shall be deemed an Assignee only.
Each Member acknowledges and agrees that such termination of the Membership Interests upon the
occurrence of the foregoing events is not unreasonable under the circumstances existing as of the
date hereof.

          Section 4.4 Withdrawal or Resignation; Death of a Member.

               (a) Withdrawal or Resignation. A Member shall not cease to be a Member as a result of
the Bankruptcy of such Member. So long as a Member continues to hold Units, such Member shall not
have the ability to withdraw or resign as a Member prior to the dissolution and winding up of the
Company and any such withdrawal or resignation or attempted withdrawal or resignation by a Member
prior to the dissolution or winding up of the Company shall be null and void. As soon as any
Person who is a Member ceases to hold any Units, such Person shall no longer be a Member.

               (b) Death of a Member. The death of any Member shall not cause the dissolution of the
Company. In such event the Company and its business shall be continued by the remaining Member or
Members.

          Section 4.5 Fiduciary Duties; Competing Activities.

               (a) Fiduciary Duties. To the fullest extent permitted by Law and notwithstanding any
other provision of this Agreement, the Members hereto hereby agree that pursuant to the authority
of Sections 18-1101(c)-(e) of the Act, the Members hereby eliminate any and all fiduciary duties of
the Members and their respective officers, directors, managers, shareholders, partners, members,
equity holders, parents, agents, employees, representatives and Affiliates (including the Managers
designated by such Members) (each, a “Covered Investor”), other than those Persons who are
employees of the Company or its Subsidiaries, that are owed to the Company, the Company’s
Subsidiaries and the other Members and hereby agree that such Persons shall have no fiduciary duty
to the Company, the Company’s Subsidiaries or any other Member; provided, however,
that the foregoing shall not eliminate the implied contractual covenant of good faith and fair
dealing.

               (b) Competing Activities. In furtherance of the foregoing, the Members hereby agree
that each Covered Investor may engage or invest in, independently or with others, any business
activity of any type or description, including those that might be in the same business as or
similar to the Company’s business and that might be in direct or indirect competition with the
Company or its Subsidiaries. Neither the Company, its Subsidiaries nor any other Members shall
have any right in or to such other ventures or activities or to the income or proceeds derived
therefrom. The pursuit of any such ventures or activities by a Covered Investor, even if
competitive with the business of the Company and its Subsidiaries, shall not be deemed wrongful or
improper and shall not constitute a conflict of interest or breach of fiduciary or other duty by
such Covered Investor with respect to the Company, its Subsidiaries or the other Members. No
Covered Investor, who is not an employee of the Company or its Subsidiaries

24

Table of Contents

shall be obligated to
present any investment opportunity or prospective economic advantage to the Company or its
Subsidiaries, even if the opportunity is of the character that, if presented to the Company or its
Subsidiaries, could be taken by the Company or its Subsidiaries and such Covered Investor shall
have the right to hold such investment opportunity or prospective economic advantage for its own
account or to recommend such opportunity to Persons other than the Company, its Subsidiaries and
the other Members. In addition, to the maximum extent permitted from time to time under applicable
Law, the Company, its Subsidiaries and the other Members renounce any interest or expectancy in
being offered an opportunity to participate in, business opportunities that are from time to time
presented to any Covered Investor who is not an employee of the Company or its Subsidiaries, and
the Company, its Subsidiaries and the Members waive any claim related to the foregoing. Each
Member acknowledges that the Covered Investors may own and/or manage other businesses, including
businesses that may compete directly or indirectly with the Company or the Company’s Subsidiaries
and for such Covered Investors’ time, and each such Member hereby waives any and all rights and
claims which it may otherwise have against the Covered Investors as a result of any such
activities.

          Section 4.6 Power of Members. The Members shall have the power to exercise any and all rights or
powers granted to Members pursuant to the express terms of this Agreement and the Act. Except as
otherwise specifically provided by this Agreement or required by the Act, no Member, other than in
its capacity as a member of the Board of Managers or as an officer of the Company, shall have the
power to act for or on behalf of, or to bind, the Company. Notwithstanding the foregoing sentence,
except as otherwise expressly provided herein, all Members shall constitute one class or group of
members for purposes of the Act and this Agreement.

          Section 4.7 No Interest in Company Property. No real or personal property of the Company or any
of its Subsidiaries shall be deemed to be owned by any Member individually, but shall be owned by,
and title shall be vested solely in, the Company.

          Section 4.8 Remuneration of Members. Except as otherwise specifically provided in this Agreement,
no Member is entitled to remuneration (including in respect of any management fees) other than, if
applicable, customary Manager fees as established by the Board of Managers and reimbursement of
costs associated with travel and lodging related to Board of Managers activities or other
activities directly related to the business that have been approved in advance by the Board of
Managers; provided, that any fees approved and paid in respect of any Member shall be
approved and paid in respect of all Members equally and no Member shall be entitled to any
remuneration under this Section 4.8 to a greater extent than any other Member.

          Section 4.9 Members Are Not Agents. Pursuant to Section 5.1, the management of the
Company is vested in the Board of Managers. The Members shall have no power to participate in the
management of the Company except as expressly authorized by this Agreement and except as expressly
required by the Act. No Member, acting solely in the capacity of a Member, is an agent of the
Company nor does any Member, unless expressly and duly authorized in writing to do so by the Board
of Managers, have any power or authority to bind or act on behalf of the Company in any way, to
pledge its credit, to execute any instrument on its behalf or to render it liable for any purpose.

25

Table of Contents

          Section 4.10 Voting Rights and Action by Members. Except as expressly provided in this Agreement,
for all matters requiring the approval of Members provided in this Agreement or otherwise required
by the Act, the Members shall be entitled to cast one (1) vote for each Unit (but not Incentive
Unit) held by such Member. Except as otherwise provided herein, all matters in which a vote,
approval or consent of the Members is required, a vote, consent or approval of the Members shall
require the approval of a Majority-in-Interest of the Members by (A) resolution at a duly convened
meeting of the Members or (B) written consent of the Members having not less than the minimum
number of votes that would be necessary to authorize or take such action at a meeting at which all
Members entitled to vote thereto were present and voted. In the case of any such approval, the
Company or a Majority-in-Interest of the Members, collectively (directly or by direction to the
Secretary of the Company), may call a meeting of the Members at such time and place in New York,
New York or by means of telephone or other communications facility that permits all persons
participating in such meeting to hear and speak to each other for the purpose of a vote thereon and
a Majority-in-Interest of the Members shall constitute a quorum for the purpose of such meeting.
Notice of any such meeting shall be required, which notice shall include a brief description of the
action or actions to be considered by the Members. Unless waived by any such Member in writing,
notice of any such meeting shall be given to each such Member at least five (5) days prior thereto.
Attendance or participation of a Member at a meeting shall constitute a waiver of notice of such
meeting, except when the Member attends or participates in the meeting for the express purpose of
objecting at the beginning thereof to the transaction of any business because the meeting is not
properly called or convened.

          Section 4.11 Approval Standard. Except as otherwise specifically provided in this Agreement, all
votes, approvals or consents of the Members may be given or withheld, conditioned or delayed as
each Member may determine in their sole and absolute discretion.

          Section 4.12 Approval of Specified Events. Notwithstanding anything to the contrary in this
Agreement, the following actions by the Company and its Subsidiaries shall require the approval by
a vote or the written consent of the Members that hold at least two-thirds
(2¤3) of the then total outstanding Units (excluding any
Incentive Units) held by all Members and none of the Company, the Members, the Board of Managers,
any Subsidiary of the Company, the board of directors (or similar governing body) of any such
Subsidiary of the Company or any member or stockholder of any such Subsidiary of the Company, shall
approve, consent to or ratify any of the following actions (whether directly or indirectly, through
a merger, consolidation or otherwise) without such approval:

               (a) any Change of Control Transaction; provided, that, solely for the purpose of this
Section 4.12(a), any transaction or series of transactions that would otherwise constitute
a Change of Control Transaction but for the acquiring Person or group of Persons in such
transaction being a Member or group of Members that are Principal Members as of the date hereof
shall be deemed a Change of Control Transaction;

               (b) incurring an aggregate amount of Indebtedness of the Company and its Subsidiaries taken as
a whole (including the refinancing of existing Indebtedness of the Company and its Subsidiaries
taken as a whole) in excess of Fifty Million Dollars ($50,000,000)

26

Table of Contents

in one transaction or a series
of related transactions, other than (i) trade payables arising in the ordinary course of operating
the business, and (ii) capital leases contemplated by an Annual Budget approved by the Board of
Managers;

               (c) declaring, setting aside, making or paying any dividend or other distribution, payable in
cash, securities, property or otherwise, with respect to the Units or other equity securities
(other than (i) Tax Distributions to all Members on a pro rata basis based on their respective
Percentage Interests, (ii) distributions or dividends made by wholly-owned Subsidiaries of the
Company to the Company or other wholly-owned Subsidiaries of the Company, or (iii) distributions or
dividends made by Subsidiaries of the Company to all Members on a pro rata basis based on their
respective Percentage Interests) or entering into a recapitalization or restructuring transaction
the primary purpose of which is to pay a dividend or other distribution;

               (d) establishing, adopting, entering into, amending or terminating any employee equity,
profits interest or option plan, program, policy, practice or arrangement with respect to the
employees of the Company or any of its Subsidiaries, or with respect to which the Company or any of
its Subsidiaries has any material liability, except, in each case, in connection with (i) the
issuance of up to an aggregate amount of forty-three thousand two hundred (43,200) Incentive Units
pursuant to Section 3.11 and (ii) the issuance on an annual basis of Units to members of
the Board of Managers who are not employees of the Company or any of its Subsidiaries as
compensation for their service on the Board of Managers;

               (e) any acquisition of the equity or assets of any Person, or the acquisition by merger,
consolidation or other means, of any business, properties, assets or Persons, in any single
transaction or series of related transactions or any disposition of the equity or assets of any
Person or any business, properties, assets or Persons, in any single transaction or series of
related transactions, that in each case, would involve aggregate consideration payable by the
Company or its Subsidiaries in excess of Fifty Million Dollars ($50,000,000) in respect of any
single transaction or series of related transactions;

               (f) any transaction involving the Company or any Subsidiary of the Company, on the one hand,
and any Member or any Affiliate of such Member (including any Manager designated to the Board of
Managers by such Member), on the other hand, other than (i) a transaction that is consummated in
the ordinary course of business of the Company or such Subsidiary of the Company (as applicable),
(ii) a transaction that is de minimis in nature, (iii) the entry by the Company into an engagement
letter agreement with the Asset Manager with respect to the provision of asset management services
by the Asset Manager to the Company (the “Asset Manager Engagement Letter”), and any
amendment, restatement or other modification of the Asset Management Engagement Letter or any
successor agreement entered into on arm’s length terms after the date hereof to replace the
then-current Asset Manager with a new Asset Manager, (iv) an acquisition by a Member of newly
issued equity securities of the Company pursuant to an exercise of preemptive rights pursuant to
Section 3.8, or (v) the issuance of Units and/or Incentive Units to members of the Board of
Managers who are not employees of the Company or any of its Subsidiaries as compensation for their
service on the Board of Managers; and

27

Table of Contents

               (g) making or entering into any agreement, arrangement, commitment or understanding to do or
cause to be done any of the foregoing.

Notwithstanding anything to the contrary set forth in this Agreement and in addition to the
foregoing clauses (a) through (g) of this Section 4.12, the Company and the
Members hereby agree that Section 312.03(c) of the NYSE Listed Company Manual shall be deemed to
apply to the Company and the Members and the Company and the Members shall be bound by the
provisions thereof as if the Units were shares of common stock of the Company listed on the NYSE;
provided, that such provision shall not apply with respect to any issuance of Incentive
Units pursuant to Section 3.11. In furtherance of the foregoing sentence, the Company and
the Members agree that the shareholder approval required by Section 312.03(c) of the NYSE Listed
Company Manual shall be deemed satisfied upon the receipt of the approval by a vote or the written
consent of the Members that hold at least fifty percent (50%) of the then total outstanding Units
(excluding any Incentive Units) held by all Members.

          Section 4.13 Representations and Warranties of the Members. By the execution and delivery of this
Agreement, each Member (severally and not jointly, as to itself) represents and warrants to, and
agrees with, the Company and the other Members that the following statements are true and correct
as of the date hereof and will be true and correct as of each date on which such Member makes any
additional Capital Contributions:

               (a) Such Member’s Units are being acquired for its own account solely for investment and not
with a view to resale or distribution thereof other than in compliance with all applicable
securities Laws.

               (b) If such Member is an entity, such Member is duly organized and validly existing under the
Laws of its jurisdiction of organization.

               (c) Such Member (i) has been found suitable to hold Units of the Company by all applicable
Gaming Authorities in circumstances where such approval is required, (ii) has obtained all
necessary Gaming Licenses, and (iii) is in compliance with all applicable Gaming Laws.

               (d) The execution, delivery and performance by such Member of this Agreement are within such
Member’s corporate or other powers, as applicable, have been duly authorized by all necessary
corporate or other action on its behalf (or, if such Member is an individual, are within such
Member’s legal right, power and capacity), require no consent, approval, permit, license, order or
authorization of, notice to, action by or in respect of, or filing with, any Governmental Authority
(except as expressly disclosed in writing to the Board of Managers prior to the date hereof), and
do not and will not result in a breach of any of the terms, conditions or provisions of, or
constitute a default under, any provision of applicable Law or of any judgment, order, writ,
injunction or decree or any agreement or other instrument to which such Member is a party or by
which such Member or any of such Member’s properties is bound. This Agreement has been duly
executed and delivered by such Member and constitutes a valid and binding agreement of such Member,
enforceable against such Member in accordance with its terms.

28

Table of Contents

               (e) Such Member acknowledges that the offering and sale of the Units have not been and will
not be registered under the Securities Act, and are being made in reliance upon federal and state
exemptions for transactions not involving a public offering. In furtherance thereof, such Member
represents and warrants that it is an “accredited investor” (as defined in Regulation D promulgated
under the Securities Act) and such Member has sufficient knowledge and experience in financial and
business matters so as to be capable of evaluating the risks of its investment in the Units. Such
Member agrees that it will not take any action that could have an adverse effect on the
availability of the exemption from registration provided by Regulation D promulgated under the
Securities Act with respect to the offer and sale of the interests in the Company. In connection
with the purchase of Units, such Member meets all suitability standards imposed on it by applicable
Law.

               (f) Such Member has been given the opportunity to (i) ask questions of, and receive answers
from, the Company concerning the terms and conditions of the Units and other matters pertaining to
an investment in the Company and (ii) obtain any additional information necessary to evaluate the
merits and risks of an investment in the Company that the Company can acquire without unreasonable
effort or expense. In considering its investment in the Units, such Member has evaluated for
itself the risks and merits of such investment, and is able to bear the economic risk of such
investment, including a complete loss of capital, and in addition has not relied upon any
representations made by, or other information (whether oral or written) furnished by or on behalf
of, the Company or its Subsidiaries or any director, officer, employee, agent or Affiliate of such
Persons, other than as set forth in this Agreement. Such Member has carefully considered and has,
to the extent it believes necessary, discussed with legal, tax, accounting and financial advisors
the suitability of an investment in the Company in light of its particular tax and financial
situation, and has determined that the Units are a suitable investment for such Member.

          Section 4.14 No Recourse Agreement. Neither the Company nor any of its Subsidiaries shall enter
into any agreement which shall provide for recourse to any Member. No recourse to (a) any assets
or properties of any members, partners, shareholders or equity holders of any Member (or any Person
that controls such member, partner, shareholder or equity holder within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act), (b) any Affiliate of any Member or (c)
any former, current or future officer, director, agent, general or limited partner, member,
manager, shareholder, equity holder, employee or Affiliate of any Member or any former, current or
future officer, director, agent, general or limited partner, member, manager, shareholder, equity
holder, employee or Affiliate of the foregoing shall be had and no judgment relating to the
obligations of any Member under this Agreement (except to the extent any such Person expressly is
individually liable thereunder) or for any payment obligations under this Agreement (except to the
extent any such Person expressly is individually liable thereunder), or any part thereof, or for
any claim based thereon or otherwise in respect thereof or related thereto, shall be obtainable by
the Company or any Member against any direct or indirect member, partner, shareholder, equity
holder, incorporator, employee or Affiliate, past, present or future, of any Member.

29

Table of Contents

ARTICLE V

MANAGEMENT AND GOVERNANCE OF THE COMPANY

          Section 5.1 Management of the Company by Board of Managers. The management of the Company is
vested in a Board of Managers (the “Board of Managers”), which may delegate its power to
the executive officers of the Company, including the power and authority to manage and direct the
day-to-day business and affairs of the Company pursuant to Section 5.10(a) and is hereby
granted, the full and complete, power, authority and discretion for, on behalf of and in the name
of the Company, to take such actions and manage and direct the business and affairs of the Company,
as it may in its sole discretion deem necessary or advisable to carry out any and all of the
objectives and purposes of the Company, subject only to the terms of this Agreement (including the
Member approval rights set forth in Section 4.12 and Section 11.13(a)). Except as
otherwise expressly provided in this Agreement (including the Member approval rights set forth in
Section 4.12 and Section 11.13(a)), the Members (in their capacity as Members) will
not participate in the control of the Company and will have no right, power or authority to act for
or on behalf of or otherwise bind, the Company and will have no right to vote on or consent to any
other matter, act, decision or document involving the Company or its business. Without limiting
the generality of the foregoing, the Board of Managers shall, and subject to Section 3.8
and Section 4.12 (to the extent applicable), have the power and authority to issue and
sell, at any time, any Units or equity securities of the Company with whatever rights, powers,
preferences and privileges as the Board of Managers may determine in its sole and absolute
discretion, whether such Units or equity securities of the Company have rights, powers, preferences
and privileges, junior to, senior to, or pari passu with any existing Units or equity securities of
the Company.

          Section 5.2 Board of Managers Composition.

               (a) The Board of Managers shall initially be comprised of four (4) members (each, a
“Manager”) and the initial Managers as of the date hereof shall be Soohyung Kim, James
Coulter, Ellis Landau and Eugene Davis. Each Principal Member shall be entitled to designate one
(1) Manager; provided, however, that in the event that such Principal Member ceases
to hold at least ten percent (10%) of the then total outstanding Units (excluding any Incentive
Units) held by all Members, such Member shall no longer have the right to designate any Manager or
be represented on any committee of the Board. The Non-Principal Members that hold fifty percent
(50%) or more of the then total outstanding Units (excluding any Incentive Units) held by all
Non-Principal Members shall have the right to elect (i) one (1) Manager, and (ii) such additional
number of Managers that are no longer eligible to be designated by the Principal Members, such that
the Board shall comprise of at least four (4) Managers. In the event that any Person becomes a
Principal Member from and after the date hereof (other than in connection with a Transfer of Units
from a Principal Member to such Person pursuant to which such Principal Member ceases to hold at
least ten percent (10%) of the then total outstanding Units (excluding any Incentive Units) held by
all Members), the size of the Board of Managers shall be increased by one (1) Manager.

               (b) The Company shall not decrease the size of the Board of Managers to less than the
aggregate number of Managers that the Members have the right to appoint

30

Table of Contents

pursuant to this
Section 5.2(a). The size of the Board of Managers may be increased or decreased by amending
this Agreement pursuant to Section 11.13.

          Section 5.3 Manager Term and Replacement. Each Manager will serve on the Board of Managers until
the earlier of such Manager’s resignation, retirement, death, disability or removal in accordance
with the terms of this Agreement. A Manager that is appointed by a Principal Member may be removed
and replaced at any time and for any reason (or no reason) only at the direction and upon the
approval of the Principal Member that designated such Manager to the Board of Managers and upon the
resignation, retirement, death, disability or removal of such Manager, the Principal Member who
appointed such Manager may designate a replacement Manager. A Manager that is elected by the
Non-Principal Members may be removed and replaced at any time and for any reason (or no reason)
only at the direction and upon the approval of the Non-Principal Members that hold fifty percent
(50%) or more of the then total outstanding Units (excluding any Incentive Units) held by all
Non-Principal Members and upon the resignation, retirement, death, disability or removal of such
Manager, such Non-Principal Members may elect a replacement Manager. In the event that any
Principal Member loses its right to appoint a Manager pursuant to Section 5.2(a) as a
result of such Principal Member ceasing to satisfy the required ownership threshold set forth in
Section 5.2(a) and thereby becoming a Non-Principal Member, such Manager shall be
immediately removed and the resulting vacancy filled by the affirmative vote or consent of the
Non-Principal Members that hold fifty percent (50%) or more of the then total outstanding Units
(excluding any Incentive Units) held by all Non-Principal Members; provided, that if the
right to appoint such Manager is lost as a result of a Transfer of Units by such Principal Member
pursuant to this Agreement, where the transferee would be entitled to designate a Manager pursuant
to Section 5.2(a) following the completion of such Transfer, then such Manager shall be
immediately removed and the transferee shall be entitled to designate a replacement Manager
pursuant to Section 5.2(a). Any Manager may resign at any time by giving written notice to
the Board of Managers. Any resignation shall take effect at the date of the receipt of that notice
or at any later time specified in that notice; and, unless otherwise specified in that notice, the
acceptance of the resignation shall not be necessary to make it effective. Any resignation is
without prejudice to the rights, if any, of the Company under any contract to which such Manager is
a party. Notwithstanding anything to the contrary set forth herein, all appointments of Managers
to serve on the Board of Managers shall be subject to applicable Gaming Laws and Section
11.19(b). If any such Person is found to be unsuitable by a Gaming Authority, he or she shall
be automatically be removed from such position as a Manager.

          Section 5.4 Meetings of the Board of Managers; Action by Written Consent.

               (a) The Board of Managers will meet at least quarterly (unless otherwise agreed to by all
Managers) at such time and place as determined by the Board of Managers (or by telephone or other
communications facility that permits all persons participating to hear and speak to each other),
including to discuss strategic and operational trends and issues relating to the Company and its
Subsidiaries, their business and industry, and may be called to a special meeting by any
Chairperson of the Board or by the Secretary of the Company upon the request of any two
(2) Managers. Notice shall be required for any meeting of the Board of Managers, which notice
shall include a brief description of the action or actions to be considered

31

Table of Contents

by the Board of
Managers. Unless waived by all Managers in writing (before or after a meeting), prior notice shall
be given to each Manager (i) thirty (30) days before the date of any regularly scheduled meeting of
the Board and (ii) one (1) Business Day prior notice to all Managers before the date of any special
meeting.

               (b) Each Manager shall be entitled to cast one (1) vote on any matter which Managers are
entitled to vote thereon and the affirmative vote of a majority of the Managers present at a
meeting at which a quorum is present will be the act of the Board of Managers, except as otherwise
expressly provided in this Agreement (including the Member approval rights set forth in Section
4.12 and Section 11.13(a)). Any Manager may be represented at a meeting of the Board
of Managers by another Manager or, in the case of a Manager designated by a Principal Member,
another employee of such Principal Member or any Affiliate of such Principal Member, in each case
designated by proxy, which proxy must be notified to the Board of Managers by letter or facsimile,
signed by the Manager giving the proxy, addressed to the Secretary of the Company and delivered
prior to the commencement of the meeting. A quorum will consist of a majority of the Managers then
in office. The Board of Managers shall cause to be kept a book of minutes of all its actions by
written consent and its meetings in which there shall be recorded the time and place of such
meetings, whether it is a regular meeting or a special meeting, the notice thereof given, the names
of those present and the proceedings thereof.

               (c) Any action required or permitted to be taken at any meeting of the Board of Managers may
be taken without a meeting, if a consent in writing, setting forth the actions so taken, shall be
signed by Managers having not less than the minimum number of votes that would be necessary to
authorize or take such action at a meeting at which all Managers entitled to vote thereon were
present and voted, except as otherwise expressly provided in this Agreement (including the Member
approval rights set forth in Section 4.12 and Section 11.13(a)).

          Section 5.5 Committees; Subsidiaries. The Board of Managers may establish committees as it sees
fit and delegate to such committees or to any officers such power, authority and responsibility as
the Board of Managers determines is appropriate, subject to the limitations below and on the Board
of Managers generally and neither the Board nor any Manager shall have the power or authority to
form a committee without the consent of each of the Managers designated by the Principal Members.
Each committee will contain combinations of Managers as determined by the Board of Managers;
provided, that each committee other than the Gaming Compliance Committee (which,
notwithstanding anything to the contrary set forth herein, will be composed as required by the
Compliance Plan and may include members that are not Managers), shall consist of at least two (2)
Managers designated by the Principal Members and one (1) Manager elected by the Non-Principal
Members. In addition, the Members shall have the representation and rights on the boards (and
committees thereof) of each Subsidiary of the Company in the same manner and in the same
proportions as they have in respect of the Board of Managers as provided for herein.

          Section 5.6 Agency Authority of Managers or Officers. The Board of Managers may authorize any
Manager or officer to endorse checks, drafts, and other evidences of Indebtedness made payable to
the order of the Company (but only for the purpose of deposit

32

Table of Contents

into the Company’s accounts) or to
sign contracts and obligations on behalf of the Company, in each case, to the same extent the Board
of Managers could do the same under this Agreement.

          Section 5.7 Performance of Duties; Liability of Managers.

               (a) The Managers shall perform their duties in good faith, in a manner they reasonably believe
to be in the best interest of the Company and its Members, and with such care, including reasonable
inquiry, as an ordinarily prudent person in a like position would use under similar circumstances.
No Manager shall be personally liable to the Company or to any Member for any loss or damage
sustained by the Company or any Member to the extent provided in Article X. No Manager
shall be liable, responsible, or accountable, in damages or otherwise, to any Member or to the
Company, and the Company shall indemnify each Manager, in each case, to the extent provided in
Article X.

               (b) In performing his or her duties, each Manager shall be entitled to rely on information,
opinions, reports, or statements, including financial statements and other financial data, of the
following persons or groups unless they have knowledge concerning the matter in question that would
cause such reliance to be unwarranted and provided that such Manager acts in good faith and after
reasonable inquiry when the need therefor is indicated by the circumstances:

                    (i) One or more officers, employees, representatives or other agents of the Company or its
Subsidiaries whom such Manager reasonably believes to be reliable and competent in the matters
presented;

                    (ii) Any attorney, independent accountant, or other Person as to matters which such Manager
reasonably believes to be within such person’s professional or expert competence; or

                    (iii) A committee of the Board of Managers upon which such Manager does not serve, duly
designated in accordance with a provision of this Agreement, as to matters within its designated
authority, which committee such Manager reasonably believes to merit competence.

          Section 5.8 Devotion of Time. No Manager (other than a Manager who is also an employee of the
Company or any of its Subsidiaries, in which case, such Manager’s employment agreement shall
prevail) is obligated to devote all or substantially all of his or her time or business efforts to
the affairs of the Company; provided, however, that such Manager shall devote such
time and effort as appropriate for the discharge of such Manager’s duties and responsibilities to
the Company and the Members pursuant to the terms of this Agreement and as required by the Act.

          Section 5.9 Reimbursement of Expenses to Managers.

               (a) Except with respect to any Manager who is employed by the Company and as otherwise
specified in this Agreement, no Manager is entitled to remuneration for services rendered or goods
provided to the Company.

33

Table of Contents

               (b) The Company shall reimburse the Managers designated by the Members for all reasonable
travel and accommodation expenses incurred in connection with attendance at meetings of the Board
of Managers upon presentation of appropriate documentation therefor.

          Section 5.10 Officers.

               (a) Appointment of Officers. The Board of Managers may appoint officers at any time.
The officers of the Company may include a Chairperson, a Secretary, or other positions as the Board
of Managers deems necessary. The officers shall serve at the pleasure of the Board of Managers,
subject to all rights, if any, of an officer under any contract of employment. Any individual may
hold any number of offices or titles. The officers shall exercise such powers and perform such
duties as specified in this Agreement and as shall be determined from time to time by the Board of
Managers. In furtherance of the foregoing, and subject to the direction and control of the Board
of Managers described in Section 5.1, the officers of the Company shall have the authority
to manage the day-to-day affairs of the Company.

               (b) Removal, Resignation and Filling of Vacancy of Officers. Subject to the rights,
if any, of an officer under a contract of employment, any officer may be removed, either with or
without cause, by the Board of Managers at any time. Any officer may resign at any time by giving
written notice to the Board of Managers. Any resignation shall take effect at the date of the
receipt of that notice or at any later time specified in that notice; and, unless otherwise
specified in that notice, the acceptance of the resignation shall not be necessary to make it
effective. Any resignation is without prejudice to the rights, if any, of the Company under any
contract to which the officer is a party. A vacancy in any office because of death, resignation,
removal, disqualification or any other cause shall be filled in the manner prescribed in this
Agreement for regular appointments to that office. Notwithstanding anything to the contrary set
forth herein, all appointments of officers of the Company shall be subject to applicable Gaming
Laws and Section 11.19(b). If any such Person is found to be unsuitable by a Gaming
Authority, he or she shall be automatically be removed from such position as an officer of the
Company.

               (c) Salaries of Officers. Any salary of any officers or agents of the Company shall
be fixed by a resolution of the Board of Managers.

               (d) Duties and Powers of the Chairperson. If appointed, the Chairperson’s sole power
and duty shall be, if present, to preside at meetings of the Members and the Board of Managers, and
exercise and perform such other powers and duties as may be from time to time assigned to him by
the Board of Managers. Notwithstanding anything to the contrary contained in this Agreement, the
Chairperson shall not be an officer of the Company or have any authority to bind the Company unless
the Board of Managers specifically provides that the Chairperson is an officer of the Company, with
the power to bind the Company.

               (e) Duties and Powers of Secretary. The Secretary shall attend all meetings of the
Board of Managers and all meetings of the Members, and shall record all the proceedings of the
meetings in a book to be kept for that purpose, and shall perform like duties

34

Table of Contents

for the standing
committees of the Board of Managers when required. The Secretary shall give, or cause to be given,
notice of all meetings of the Members and the Board of Managers and shall perform such other duties
as may be prescribed by the Board of Managers. The Secretary shall have custody of the seal, if
any, and the Secretary shall have authority to affix the same to any instrument requiring it, and
when so affixed, it may be attested by his or her signature. The Board of Managers may, in lieu of
a Secretary, convey general authority to any other officer or agent to affix the seal of the
Company, if any, and to attest the affixing by his or her signature. The Secretary shall keep, or
cause to be kept, at the principal executive office or at the office of the Company, a register, or
a duplicate register, showing the names of all Members and their addresses, the number and class of
their Units, their Percentage Interests and their Capital Account balance. The Secretary shall
also keep all documents described in Section 8.1 and such other documents as may be
required under the Act. The Secretary shall perform such other duties and have such other
authority as may be prescribed elsewhere in this Agreement or from time to time by the Board of
Managers. The Secretary shall have the general duties, powers and responsibilities of a secretary
of a corporation.

          Section 5.11 Limited Liability. Subject to Article X, no person who is a Manager or an
officer of the Company shall be personally liable under any judgment of a court, or in any other
manner, for any debt, obligation, or liability of the Company, whether that liability or obligation
arises in contract, tort, or otherwise, solely by reason of being a Manager or an officer of the
Company.

ARTICLE VI

DISTRIBUTIONS;

ALLOCATIONS OF NET INCOME AND NET LOSS

          Section 6.1 Distributions. The Company may, in the discretion of the Board of Managers, distribute
Distributable Cash (a “Distribution”) at such time or times and in such amounts, as the
Board of Managers may determine, among the Members in accordance with the provisions of this
Section 6.1; provided, however, that nothing in this Section 6.1
shall impair the right of the Board of Managers to establish reasonable cash reserves or not to
distribute cash for any legitimate business reason.

               (a) Distributions of Available Cash Flow. At such times and in such amounts as the
Board of Managers, in its sole discretion, shall determine, distributions of Available Cash Flow
shall be made to the holders of Units (other than Incentive Units) pro rata in accordance with the
Units (other than Incentive Units) held by each such Member.

               (b) Distributions of Capital Proceeds. Upon the occurrence of a Capital Transaction,
distributions of proceeds received by the Company in a Capital Transaction shall be allocated and
distributed in the following order of priority promptly following the consummation of such Capital
Transaction:

                    (i) First, to the holders of Units (other than Incentive Units) pro rata in accordance with
the Units (other than Incentive Units) held by each such Member until the Incentive Unit
Distribution Threshold is reduced to zero.

35

Table of Contents

                    (ii) Second, to the Units (including, subject to the second proviso of this Section
6.1(b)(ii) with respect to any Incentive Units), pro rata in accordance with each Member’s
then-current Percentage Interest; provided, however that any Subsequent Incentive
Unit shall only be entitled to participate in Distributions pursuant to this Section
6.1(b)(ii) pari passu pro rata in proportion to the Units after each Initial Incentive Unit has
received (or, if there are no Initial Incentive Units then outstanding, would have received had at
least one Initial Incentive Unit remained outstanding) pursuant to this Section 6.1(b)(ii)
(and after the issuance of such Subsequent Incentive Unit) an amount equal to such Incremental
Distribution Threshold; provided, further, that distributions pursuant to this
Section 6.1(b)(ii) to any member in respect of unvested Incentive Units issued pursuant to
any profits interest award agreements shall be retained by the Company and distributed in
accordance with the terms of the applicable profits interest award agreement. Solely for the
purposes of this Section 6.1(b)(ii) and Section 9.3(c) each such Subsequent
Incentive Unit shall not be counted for the purposes of calculating the Percentage Interest, until
the applicable Incremental Distribution Threshold attributable to such Subsequent Incentive Unit is
met.

               (c) For the avoidance of doubt, none of the following shall be a Distribution: (i) any
redemption or repurchase by the Company or any Member of any Units; (ii) any recapitalization or
exchange of securities of the Company; (iii) any Unit splits, Unit combinations, distributions of
Units or other similar events; or (iv) any fees or remuneration paid to any Member in such Member’s
capacity as a consultant or other provider of services to the Company.

               (d) Notwithstanding anything to the contrary in this Agreement, no Member shall be entitled to
receive any distributions in respect of any income or gain arising: (i) in the case of a new
Member, prior to such Member’s admission as a Member; and (ii) in the case of a Member that
receives a new or increased Membership Interest, prior to such issuance or increase to the extent
attributable to such issuance or increase (in each case, as reasonably determined by the Board of
Managers). Distributions in respect of any income or gain arising prior to such admission,
issuance or increase shall be made based upon the Membership Interests of the Members at the time
such income or gain arises, net of any deductions or losses, as reasonably determined by the Board
of Managers. This Section 6.1(d) shall be interpreted and implemented consistently with
the principles set forth in Treasury Regulations Section 1.704-1(b)(2)(iv)(g).

          Section 6.2 Tax Distributions.

               (a) To the extent it has legally sufficient funds to do so and the Board of Managers
determines appropriate, the Company may distribute to each Member with respect to each Fiscal Year
of the Company (excluding the Fiscal Year in which the Company is being liquidated) an amount of
cash equal to such Member’s Tax Liability Amount (a “Tax Distribution”). For this purpose,
“Tax Liability Amount” for any given Fiscal Year of the Company means an amount equal to
(x) the Assumed Tax Rate multiplied by (y) the difference between (1) the taxable income (including
separately stated items) and gain allocated to such Member for such Fiscal Year of the Company (as
shown on the applicable Internal Revenue Service Form 1065—Schedule K-1 filed by the Company),
excluding partner-level taxable income adjustments made under Section 743(b) of the Code, and
(2) the cumulative losses that

36

Table of Contents

have been allocated to such Member to the extent such losses have
not previously reduced taxable income and gain pursuant to this provision, minus (z) such Member’s
pro rata share of any taxes imposed on and paid by the Company to a non-U.S. governmental authority
to the extent the Board of Managers determines appropriate. To the extent deemed feasible and
appropriate by the Board of Managers, Tax Distributions may be made on each Tax Distribution Date
based on estimates of the Company’s income to facilitate the Members’ ability to make quarterly
estimated tax payments with respect to their income from the Company. The computation of the
amounts to be distributed pursuant to this Section 6.2(a) for any year shall be adjusted
(i) prior to each distribution for such year, (ii) upon the filing of the Company’s federal income
tax return for such year, (iii) upon any final determination of the Company’s taxable income for
such year and (iv) at any other time when in the good faith determination of the Board of Managers
that it appears that a prior estimate has been incorrect, in each case so as to take into account
actual determinations and/or revised estimates of the Members’ shares of taxable income for such
year for United States federal income tax purposes. Following any such adjustment, the amounts to
be distributed pursuant to this Section 6.2(a) shall be adjusted appropriately, or
additional distributions shall be made, so as to give effect to such actual determinations and/or
revised estimates. If the aggregate of the installment distributions of such amount to any Member
with respect to a Fiscal Year exceeds the amount finally so determined by the Company for the
Fiscal Year (such excess amount being such Member’s “Excess Tax Distribution”), such Member
shall return to the Company an amount equal to such Excess Tax Distribution upon thirty (30) days’
prior notice from the Board of Managers.

               (b) If the Board of Managers determines to make Tax Distributions and there is insufficient
cash to distribute to each Member an amount equal to each Member’s Tax Liability Amount, the
Company will make Tax Distributions pursuant to this Section 6.2 to the Members with Tax
Liability Amounts pro rata in accordance with such Members’ Tax Liability Amounts.

               (c) Tax Distributions are advances that shall reduce the amount of the contemporaneous or next
succeeding Distribution or Distributions which would have otherwise been made to such Member, or if
such Distributions are not sufficient for that purpose, by so reducing the proceeds of liquidation
otherwise payable to such Member. In the event that the Company is liquidated and a liability is
asserted against the Board of Managers or any Member for Tax Distributions or any taxes, the Board
of Managers or such Member, as applicable, will have the right to be reimbursed from any Member on
whose behalf Tax Distributions were made to the extent such Member has received cumulative
Distributions in excess of what it would have received as if this Section 6.2 were not in
effect.

          Section 6.3 Tax Withholding; Withholding Advances.

               (a) Tax Withholding. The Company shall comply with withholding requirements under
applicable Law and shall remit amounts withheld to and file required forms with the applicable
jurisdictions. If requested by the Board of Managers, each Member shall, if able to do so, deliver
to the Board of Managers at such times as reasonably requested by the Board of Managers: (A) an
affidavit in form reasonably satisfactory to the Board of Managers that the applicable Member (or
its members, as the case may be) is not subject to withholding under the provisions of any federal,
state, local, foreign or other Law; (B) any certificate that the

37

Table of Contents

Board of Managers may reasonably
request with respect to any such Laws; and/or (C) any other form or instrument reasonably requested
by the Board of Managers relating to any Member’s status under such Law. If a Member fails or is
unable to deliver to the Board of Managers an affidavit described in subclause (A) of this
Section 6.3(a), the Board of Managers may withhold amounts from such Member in accordance
with Section 6.3(b).

               (b) Withholding Advances. To the extent the Company is required by Law to withhold or
to make tax payments on behalf of or with respect to any Member (e.g., backup withholding)
(“Withholding Advances”), the Board of Managers may withhold such amounts and make such tax
payments as so required.

               (c) Repayment of Withholding Advances. All Withholding Advances made on behalf of a
Member, plus interest thereon from the date of the demand for repayment at a rate equal to the
Prime Rate as of the date of such Withholding Advances plus 2% per annum, shall (i) be repaid on
demand by the Member on whose behalf such Withholding Advances were made, or (ii) with the consent
of the Board of Managers, in its sole discretion, be repaid by reducing the amount of the current
or next succeeding Distribution or Distributions which would otherwise have been made to such
Member or, if such Distributions are not sufficient for that purpose, by so reducing the proceeds
of liquidation otherwise payable to such Member. If repayment of a Withholding Advance is made by
a Member pursuant to clause (ii), such Member shall not be required to pay any interest thereon.
Notwithstanding the foregoing, whenever repayment of a Withholding Advance by a Member is made as
described in clause (ii), for all other purposes of this Agreement such Member shall be treated as
having received all Distributions (whether before or upon Dissolution) unreduced by the amount of
such Withholding Advance.

          Section 6.4 Allocations of Net Income and Net Loss; Tax Allocations; Special Allocations.

               (a) Prior to the consummation of an IPO Restructuring or a determination by the Board of
Managers to elect to be other than a partnership for United States federal income tax purposes, the
Members agree to treat the Company as a partnership and the Members as partners for United States
federal income tax purposes and shall file all tax returns accordingly.

               (b) For each Fiscal Year (or portion thereof), except as otherwise provided in this Agreement,
Net Income and Net Loss (and, to the extent necessary, individual items of income, gain, loss,
deduction or credit) of the Company shall be allocated among the Members in a manner such that,
after giving effect to the special allocations set forth in Section 6.4(d), the Capital
Account balance of each Member, immediately after making such allocation, is, as nearly as
possible, equal to (i) the distributions that would be made to such Member pursuant to Section
9.3(c) if the Company were dissolved, its affairs wound up and its assets sold for cash equal
to their Carrying Value, all Company liabilities were satisfied (limited with respect to each
nonrecourse liability to the Carrying Value of the assets securing such liability), and the net
assets of the Company were distributed, in accordance with Section 9.3(c), to the Members
immediately after making such allocation, minus (ii) such Member’s share of Company Minimum Gain
and Member Nonrecourse Debt Minimum Gain, computed

38

Table of Contents

immediately prior to the hypothetical sale of
assets. The Board of Managers shall be entitled to adjust the allocations of Net Income and Net
Loss (and items thereof) to take into account any of the economic provisions of this Agreement,
including the time and amount of actual Distributions to the Members; provided, that, any such
adjustment shall not affect the amount distributable to a Member pursuant to this Agreement.

               (c) For United States federal, state and local income tax purposes, items of income, gain,
loss, deduction and credit shall be allocated to the Members in accordance with the allocations of
the corresponding items for Capital Account purposes under Section 6.4(b), except that
items with respect to which there is a difference between tax and book basis will be allocated in
accordance with Section 704(c) of the Code, the Treasury Regulations thereunder and Treasury
Regulation § 1.704-1(b)(4)(i).

               (d) The provisions of Section 6.4(b) and the other provisions of this Section
6.4(d) relating to the maintenance of Capital Accounts are intended to comply with Treasury
Regulation § 1.704-1(b)(iv) and shall be interpreted and applied in a manner consistent with such
intent. Accordingly, Section 704 of the Code and the Treasury Regulations issued thereunder,
including, but not limited to, the provisions of such Treasury Regulations addressing qualified
income offset provisions, minimum gain chargeback requirements and allocations of deductions
attributable to nonrecourse debt and partner nonrecourse debt, are hereby incorporated by
reference. The Board of Managers shall be authorized to make appropriate amendments to the
allocations of items pursuant to Section 6.4(b), Section 6.4(d), and Section
3.6 if necessary in order to comply with Section 704 of the Code or applicable Treasury
Regulations thereunder; provided, that no such change shall have an adverse effect upon the
amount distributable to any Member pursuant to this Agreement.

          (i) If any Members are treated for United States federal income tax purposes as
realizing ordinary income because of receiving Units (whether under Section 83 of
the Code or under any similar provision of any law, rule or regulation) and the
Company is entitled to any offsetting deduction (net of any income realized by the
Company as a result of the issuance of such interests), the Company’s net deduction
shall be allocated to and among the Capital Accounts of such Members in such a
manner as to offset, as nearly as possible, the ordinary income realized by such
Members as a result of such treatment.

          (ii) To the extent an adjustment to the adjusted tax basis of any Company asset
pursuant to Section 734(b) or Section 743(b) of the Code is required pursuant to
Treasury Regulation § 1.704-1(b)(2)(iv)(m)(4) to be taken into account in
determining Capital Accounts as a result of a distribution other than in liquidation
of a Member’s interest in the Company, the amount of such adjustment shall be
treated as an item of gain (if the adjustment increases the basis of such asset) or
loss (if the adjustment decreases the basis of such asset) from the disposition of
the asset and shall be taken into account for purposes of computing Net Income and
Net Loss. To the extent an adjustment to the adjusted tax basis of any Company
asset pursuant to Section 734(b) or 743(b) of the Code is required pursuant to
Treasury Regulation § 1.704-1(b)(2)(iv)(m)(2) or (4) to be taken into account in
determining Capital Accounts as a result of a distribution in complete

39

Table of Contents

liquidation
of a Member’s Units, the amount of such adjustment shall be treated as an item of
gain (if the adjustment increases the basis of such asset) or loss (if the
adjustment decreases the basis of such asset), and such gain or loss shall be
specially allocated to the Members in accordance with their respective Percentage
Interests in the event that Treasury Regulation § 1.704-1(b)(2)(iv)(m)(2) applies or
to the Member to whom such distribution is made in the event that Treasury
Regulation § 1.704-1(b)(2)(iv)(m)(4) applies.

          Section 6.5 Restriction on Distributions.

               (a) No Distribution shall be made if, after giving effect to the Distribution, (i) the Company
would not be able to pay its debts as they become due in the usual course of business; (ii) the
Company’s total assets would be less than the sum of its total liabilities plus the amount that
would be needed, if the Company were to be dissolved at the time of such Distribution, to satisfy
any preferential rights of other Members, if any, upon dissolution that are superior to the rights
of the Member receiving such Distribution; or (iii) such Distribution would result in
non-compliance with, or a violation of, the Act, applicable Gaming Laws or any order of any Gaming
Authority binding upon or to which the Company or its Subsidiaries are subject.

               (b) The Board of Managers may base a determination that a Distribution is not prohibited on
any of the following:

                    (i) Financial statements prepared on the basis of accounting practices and principles that are
reasonable in the circumstances;

                    (ii) A fair market valuation of the Company or its assets; or

                    (iii) Any other method that is reasonable in the circumstances.

               (c) Without the approval of the Board of Managers, no distribution shall be made in any form
other than cash prior to a Dissolution Event.

          Section 6.6 Obligations of Members to Report Allocations. The Members are aware of the United
States federal income tax consequences of the allocations made by this Article VI and
hereby agree to be bound by the provisions of this Article VI in reporting their shares of
Company income and loss for United States federal income tax purposes.

          Section 6.7 Limitation on Allocations and Distributions to Incentive Units.

               (a) It is the intention of the Parties that distributions in respect of Incentive Units be
limited to the extent necessary so that the related Incentive Unit constitutes a Profits Interest.
In addition, and notwithstanding anything to the contrary in this Agreement, the Board of Managers
shall, if necessary, further limit distributions to any Member holding Incentive Units so that such
distributions do not exceed the available profits in respect of such Member’s related Profits
Interest. If a Member’s distributions are reduced pursuant to this Section 6.7, an amount
equal to such reduction shall be distributed to the remaining Members pro rata in
accordance with their Percentage Interests for the related Fiscal Year.

40

Table of Contents

               (b) If distributions to Members holding Incentive Units in respect of their Incentive Units
are reduced pursuant to Section 6.7(a), other than by reason of the Incentive Unit
Distribution Threshold or the Incremental Distribution Threshold, then the Board of Managers shall
make adjustments to future distributions to the Members as promptly as practicable so that the
Members are distributed, on a cumulative basis, the amount to which they would have been entitled
had such adjustment not been made; provided, that any distributions pursuant to this
Section 6.7(b) shall be further subject to the other provisions of Section 6.7.

ARTICLE VII

TRANSFERS OF UNITS

          Section 7.1 Transfers.

               (a) Permitted Transfers.

                    (i) Prior to a Qualified IPO, no Member may sell, encumber, mortgage, hypothecate, assign,
pledge, transfer or otherwise dispose of, directly or indirectly, all or any portion of its Units
(each, a “Transfer”), except in accordance with the terms and conditions set forth in this
Article VII. No Transfer of Units shall be effective until such time as all requirements
of this Article VII in respect thereof have been satisfied and, if consents, approvals or
waivers are required by the Board of managers, all of the same shall have been confirmed in writing
by the Board of Managers.

                    (ii) Notwithstanding anything to the contrary in Section 7.1(a)(i), no limitation or
restriction on Transfers shall apply to any Transfer by a Member (A) to one or more Permitted
Transferees of such Member, (B) to the Company pursuant to the terms of any profits interest plan
or award agreement pursuant to which Incentive Units are issued, or (C) pursuant to a Public
Offering in accordance with such Member’s registration rights set forth in the Registration Rights
Agreement, including in connection with an Initial Public Offering if the underwriter(s) managing
such Initial Public Offering do not believe such Transfer would adversely affect such Initial
Public Offering (each such Transfer described in this Section 7.1(a)(ii), a “Permitted
Transfer”). The restrictions contained in this Section 7.1(a) will continue to be
applicable to the Units after any Transfer pursuant to clauses (A) or (B) of this Section
7.1(a)(ii).

                    (iii) No Transfer of Units shall be effective without compliance by the parties to such
Transfer with all applicable Gaming Laws and all requirements imposed by any order, ruling or other
determination of any Gaming Authority, including, if applicable, receipt of all Gaming Licenses
required under applicable Gaming Laws.

                    (iv) Notwithstanding anything to the contrary in this Agreement, Transfers of Incentive Units
shall not be permitted except as set forth in the profits interest plan or award agreement pursuant
to which such Incentive Units are issued.

41

Table of Contents

               (b) Certain Restrictions.

                    (i) Notwithstanding anything to the contrary contained in this Agreement (subject only to
Section 7.1(b)(ii)) and in addition to any other restrictions on Transfer set forth in this
Article VII, no Member may Transfer any Units prior to a Qualified IPO if:

          (A) the Company is a partnership for United States federal income tax
purposes and such proposed Transfer (alone or taken together with all other
Transfers) would result in the Company being treated as anything other than
a partnership for United States federal income tax purposes;

          (B) the Company is a partnership for United States federal income tax
purpose and such proposed Transfer (alone or taken together with all other
Transfers) would cause the Company to be treated as a “publicly traded
partnership” within the meaning of Section 7704 of the Code and the Treasury
Regulations promulgated thereunder;

          (C) the Company is a partnership for United States federal income tax
purpose and such proposed Transfer (alone or taken together with all other
Transfers) would result in a termination of the Company within the meaning
of Section 708(b) of the Code and the Treasury Regulations promulgated
thereunder, unless the Board of Managers determines that such termination is
immaterial; or

          (D) such proposed Transfer would require the filing of a registration
statement under the Securities Act or any other foreign, federal, provincial
or state securities Laws by the Company.

                    (ii) Notwithstanding anything to the contrary contained in this Agreement (including
Section 7.1(b)(i)) and in addition to any other restrictions on Transfer set forth in this
Article VII, no Member may Transfer any Units at any time if:

          (A) such proposed Transfer would result in the Company being regulated
under the Investment Company Act;

          (B) such proposed Transfer would result in a violation of any
applicable Law, including Gaming Laws or applicable securities Laws;

          (C) all necessary Gaming Licenses have not been obtained immediately
prior to the date that the proposed Transfer is to be made; or

          (D) such proposed Transfer is to be made to any Person who lacks the
legal right, power or capacity to own such interest.

               (c) Transfers Requiring the Approval of the Board of Managers. Notwithstanding
anything to the contrary contained in this Agreement, and in addition to any

42

Table of Contents

other restrictions on
Transfer set forth in this Article VII, prior to the occurrence of a Qualified IPO, each
Transfer of Units by one or more Members in a single Transfer or series of related Transfers shall
require the approval of a majority of the Managers then in office (such approval not to be
unreasonably withheld), if (i) such Transfer or series of related Transfers would result in the
transferee(s) holding ten percent (10%) or more of the then outstanding Units (excluding any
Incentive Units) held by all Members (other than a Transfer or series of related Transfers of Units
to a Person that is a Principal Member on the date hereof or a group of Persons that are Principal
Members on the date hereof), or (ii) the transferee(s) is not an institutional investor (including,
an investment bank, a hedge fund, private equity fund or other investment fund or other entity
whose primary purpose is to provide investment management or advisory services on behalf of its
clients) or is a Person that operates in the gaming industry or holds a controlling stake in
another Person that operates in the gaming industry.

          Section 7.2 Notice of Intent to Transfer Units. Prior to the earlier of a Qualified IPO and a
Change of Control Transaction, if any Member (the “Transferring Member”) desires to
Transfer all or any portion of its Units (other than pursuant to a Permitted Transfer) to any
Person (other than a Permitted Transferee) (such Units, the “Offered Units”), the
Transferring Member shall deliver a written notice to the Secretary of the Company with a copy to
the Company’s legal counsel in accordance with the provisions of Section 11.12 (the
“Transfer Notice”) no less than three (3) Business Days and no more than ten (10) Business
Days prior to entering into a trade to Transfer the Offered Units to such Person. The Transferring
Member shall not Transfer, or enter into a trade to Transfer, the Offered Units for a period of
three (3) Business Days immediately following the receipt of the Transfer Notice by the Company
(the “Notice Period”). From and after the Notice Period, the Transferring Member may enter
into a trade to Transfer the Offered units; provided, that if no trade is entered into with
respect to such Transfer within ten (10) Business Days following the expiration of the Notice
Period, then the Transferring Member shall be required to deliver a new Transfer Notice to the
Company within the time period specified in this Section 7.2 and in accordance with the
other provisions of this Section 7.2 in order to enter into such trade to Transfer the
Offered Units and the Notice Period shall restart.

          Section 7.3 Rights of Assignees. Until such time, if any, as a transferee of Units pursuant to
any Transfer permitted by this Article VII is admitted to the Company as a substitute
Member pursuant to Section 7.4, such transferee will be deemed to be an Assignee only.

          Section 7.4 Substitution of Members. An Assignee shall have the right to become a substitute
Member only if (i) the requirements of Section 7.1 and, if applicable, Section 7.2
have been met, (ii) such Assignee executes an Addendum Agreement and a Registration Rights Addendum
Agreement, (iii) such Assignee pays any reasonable expenses as determined by the Board of Managers
in connection with its admission as a new Member, and (iv) such Assignee has been found suitable to
hold Units of the Company by all applicable Gaming Authorities in circumstances where such approval
is required and has obtained all necessary Gaming Licenses.

          Section 7.5 Effective Date of Permitted Transfers. Any Transfers permitted by this Article
VII shall be effective upon the consummation of a transaction in compliance with

43

Table of Contents

Section 7.1 and, if applicable, Section 7.2. The Board of Managers shall provide the Members
with written notice of such Transfer as promptly as possible after the consummation thereof. Any
transferee of Units shall be subject to the restrictions on Transfer imposed by this Agreement.

          Section 7.6 Rights of Legal Representatives. If a Member who is an individual dies or is adjudged
by a court of competent jurisdiction to be incompetent to manage the Member’s person or property,
the Member’s executor, administrator, guardian, conservator, or other legal representative may
exercise all of the Member’s rights for the purpose of settling the Member’s estate or
administering the Member’s property, including any power the Member has under this Agreement to
give an assignee the right to become a Member. If a Member is a corporation, trust, or other
entity and is dissolved or terminated, the powers of that Member may be exercised by its legal
representative or successor.

          Section 7.7 No Effect of Transfers in Violation of Agreement. No Transfer of any Units in
violation of any provision of this Agreement will be effective to pass any title to, or create any
interest in favor of, any Person, but the Member which attempted to so effect such Transfer will be
deemed to have committed a material breach of its obligations to the other Members and to the
Company hereunder, and the Membership Interest held by such Member shall be treated in accordance
with Section 4.3. For the avoidance of doubt and notwithstanding anything to the contrary
set forth herein, no Transfer of Units shall be effective unless the transferee has been found
suitable to hold Units of the Company by all applicable Gaming Authorities in circumstances where
such approval is required and has obtained all necessary Gaming Licenses.

          Section 7.8 Amendment to Schedule I. The Company shall amend Schedule I, as appropriate,
to reflect a Transfer of any Units pursuant to this Article VII.

          Section 7.9 Right to Force a Qualified IPO; IPO Restructuring.

               (a) If, after the second (2nd) anniversary of the date of this Agreement, the
Company has not completed a Qualified IPO, the Principal Members that hold fifty percent (50%) or
more of the then total outstanding Units (excluding any Incentive Units) held by all Principal
Members shall have the right to cause the Company to commence a Qualified IPO without the approval
or consent of the other Members or the Board of Managers.

               (b) In connection with any proposed Initial Public Offering approved by the Board of Managers
or a Qualified IPO commenced by the Principal Members pursuant to Section 7.9(a), the Board
of Managers, at its election, may without the consent of any Member: (i) amend this Agreement to
provide for a conversion or a restructuring of the Company in accordance with the Laws of the State
of Delaware to a corporation or such other capital structure as the Board of Managers may
determine; (ii) distribute shares of common stock or other equivalent equity securities of the
resulting entity to the Members (provided, however, that Incentive Units may be
converted into common stock or similar securities representing an interest in the IPO Corporation
that provides the Members holding Incentive Units with an equity interest in the IPO Corporation
that is economically equivalent to the interests the Members holding Incentive Units would have
received with respect to those Incentive Units if the

44

Table of Contents

Company was dissolved, its affairs wound up
and distributions were made to Members in accordance with Section 9.3 (valuing such stock
at Fair Market Value) after all Company liabilities were satisfied); (iii) form a Subsidiary
holding company and distribute its shares of common stock or other equivalent equity securities of
such entity to the Members (including Members holding Incentive Units); (iv) move the Company or
any successor to another jurisdiction to facilitate any of the foregoing; (v) wind up, dissolve or
liquidate the Company pursuant to this Agreement, (vi) cause the resulting entity to enter into a
stockholders, operating or similar agreement with the Members containing such rights and
obligations as are provided in this Agreement with respect to the Units, including with respect to
the board of directors or other similar governing body of such entity or (vii) take such other
steps as it deems necessary or appropriate to create a suitable vehicle for an offering or sale, in
each such case in accordance with the Act and applicable Law (the Company, in its capacity as the
entity which undertakes the Initial Public Offering or such other resulting entity, as determined
by the Board of Managers, the “IPO Corporation”), and in each case for the express purpose
of consummating an Initial Public Offering (an “IPO Restructuring”). Notwithstanding the
foregoing, the Board of Managers shall not approve the IPO Restructuring unless it shall have
determined in good faith that a Public Offering can reasonably be expected to be consummated within
sixty (60) days of the IPO Restructuring and the IPO Restructuring shall only occur on the day
prior to the closing of the Public Offering.

               (c) If the Board of Managers elects to exercise its rights under Section 7.9(b), the
Members shall take such actions as may be reasonably required and otherwise cooperate in good faith
with the Board of Managers, including taking all actions required by the Board of Managers in
connection with consummating the IPO Restructuring (including the voting of any Units (including
any voting as Members as may be necessary to effect a Transfer by continuation or to authorize a
share capital, whether by liquidation of the Company and creation of a new entity, amendment to
this Agreement or otherwise) to approve such IPO Restructuring, entering into a stockholders,
operating or similar agreement with the IPO Corporation containing such rights and obligations as
are provided in this Agreement with respect to the Units, including with respect to the board of
directors or other similar governing body of the IPO Corporation and to take any other actions
required in order to effectuate an IPO Conversion). Without limiting the generality of the
foregoing, the Board of Managers and the Members shall use reasonable efforts to cooperate to
ensure that any IPO Restructuring is undertaken in a tax efficient manner for all Members and their
respective direct or indirect members, partners, shareholders, or other equity holders.

               (d) Notwithstanding anything to the contrary contained in this Agreement, (i) the shares,
membership interests or other ownership interests of the IPO Corporation shall be divided into
classes and series and shall be allocated to and among the Members (including Members holding
Incentive Units in respect of their Incentive Units) in such manner as shall result in each Member
having substantially the same relative economic, governance and other rights, privileges,
preferences, priorities and obligations in respect of the IPO Corporation as such Member had in
respect of the Company immediately prior to the IPO Restructuring (including the right to sell
securities of the IPO Corporation held by such Member upon the expiration of the applicable lock-up
period (which in any case shall be applicable to all Members equally and subject to the provisions
of the Registration Rights Agreement)), (ii) the Board of Managers shall establish the terms of the
organizational documents of any IPO

45

Table of Contents

Corporation and any stockholders, operating or similar
agreement by and among the IPO Corporation and the Members in a manner consistent with the terms of
this Section 7.9, and (iii) the Members shall bear the costs and expenses associated with
an IPO Conversion in the same relative proportions that they bear the costs and expenses of the
Company under this Agreement as in effect prior to any action taken by the Board of Managers under
this Section 7.9.

ARTICLE VIII

BOOKS & RECORDS;

FINANCIAL & OTHER INFORMATION;

OTHER MATTERS

          Section 8.1 Books and Records. The books and records of the Company shall be kept, and the
financial position and the results of its operations recorded, in accordance with GAAP applied on a
consistent basis. The books and records of the Company shall reflect all of the transactions of
the Company and its Subsidiaries and shall be appropriate and adequate for the operation of the
business of the Company and its Subsidiaries. In addition to any records required by the Act or
applicable Gaming Laws, the Company shall maintain or cause to be maintained at its principal
executive office (and such other locations as may be required by the Act or applicable Gaming Laws)
each of the following:

               (a) A current list of the full name and last known business or residence address of each
Member and Assignee set forth in alphabetical order, together with the Capital Contributions,
Capital Account, number and class of Units and Percentage Interest of each Member and Assignee;

               (b) A current list of the full name and business or residence address of each Manager;

               (c) A copy of the Certificate of Formation and any and all amendments thereto together with
executed copies of any powers of attorney pursuant to which the Certificate of Formation or any
amendments thereto have been executed;

               (d) Copies of the Company’s and its Subsidiaries’ federal, state and local income tax or
information returns and reports;

               (e) A copy of this Agreement and any and all amendments thereto together with executed copies
of any powers of attorney pursuant to which this Agreement or any amendments thereto have been
executed;

               (f) Copies of the financial statements of the Company and its Subsidiaries, if any; and

               (g) The Company’s books and records as they relate to the internal affairs of the Company and
its Subsidiaries.

46

Table of Contents

          Section 8.2 Delivery to Members and Inspection.

               (a) The Company shall promptly furnish to each Member a copy of any amendment to the
Certificate of Formation or this Agreement, which obligation shall be deemed to have been satisfied
if the Company files such amendment with the United States Securities and Exchange Commission.

               (b) Each Member has the right upon reasonable request for purposes reasonably related to the
interest of that Person as a Member, to obtain from the Company, promptly after their becoming
available, a copy of the Company’s and its Subsidiaries’ United States federal, state, and local,
and, if applicable, foreign income tax or information returns for each Fiscal Year;
provided, that the right to obtain the information referred to in this Section 8.2 shall
not extend to any Member who or that was an employee, consultant or other service provider to the
Company or its Subsidiaries who or that is no longer employed or retained by the Company or its
Subsidiaries in any capacity for the provision of such services; provided, further,
however, that the foregoing proviso shall not apply to the information referred to in this
Section 8.2(b) that any such Person needs for purposes of preparing and filing its tax
returns.

               (c) Upon the request of any Member for purposes reasonably related to the interest of that
Person as a Member, the Company shall promptly deliver to the requesting Member, at the expense of
the Company, a copy of the information required to be maintained under Section
8.1(a)-8.1(f).

               (d) The Company and its Subsidiaries shall afford each Major Member the right, upon reasonable
request for purposes reasonably related to the interest of that Person as a Member, to inspect
during regular business hours any of the books and records of the Company and its Subsidiaries
described in Section 8.1 or access, during regular business hours, upon reasonable advance
notice, the facilities, properties and personnel of the Company and its Subsidiaries, including the
opportunity to discuss the affairs of the Company and its Subsidiaries with management, in each
case, in a manner that will not unreasonably interfere with the business of the Company and its
Subsidiaries; provided, that (i) such information and access right shall not extend to any
Major Member who or that was an employee, consultant or other service provider to the Company or
the Company Subsidiaries who or that is no longer employed or retained by the Company or the
Company Subsidiaries in any capacity for the provision of such services if the Board of Managers
determines that the exercise of such right will result, is likely to result or may potentially
result in any consequence that is adverse or disadvantageous to the Company or its Subsidiaries;
(ii) such information and access right shall not be available to any Major Member, if based on the
advice of the Company’s counsel, such information and access right, would (A) reasonably be
expected to create liability under applicable Law or waive any material legal privilege
(provided, that in such latter event the Company shall use commercially reasonable efforts
to cooperate to permit disclosure of such information in a manner consistent with the preservation
of such legal privilege); (B) result in the disclosure of any trade secrets of third parties; or
(C) violate any obligation of the Company with respect to confidentiality so long as, with respect
to confidentiality, to the extent specifically requested by such Major Member, the Company has made
commercially reasonable efforts to obtain a waiver regarding the possible disclosure from the third
party to whom it owes an obligation of confidentiality; and (iii) to the extent that the Asset
Manager has the right to access the Hotel, the

47

Table of Contents

executive officers of the Management Company and the
books and records and any other information or data pertaining to the Hotel pursuant to the
Management Agreement, the Major Members shall not have the right to such information and access and
the Company and its Subsidiaries shall not have any obligation to afford the Major Members such
information and access; provided, however, that, solely with respect to this clause
(iii), the Company shall cause the Asset Manager to share with the Major Members any and all
information and documents obtained by the Asset Manager pursuant to its exercise of such access
right pursuant to the Management Agreement.

               (e) Any request, inspection or copying by a Member under this Section 8.2 may be made
by that Person or that Person’s agent or attorney.

          Section 8.3 Financial and Other Information.

               (a) The Company shall provide to the Members: (i) audited annual consolidated financial
statements (including a balance sheet, statement of operations and statement of cash flows) of the
Company and its Subsidiaries within ninety (90) days after the end of the Company’s Fiscal Year;
and (ii) unaudited quarterly and year-to-date consolidated financial statements (including a
balance sheet, statement of operations and statement of cash flows) of the Company and its
Subsidiaries within forty-five (45) days after the end of each fiscal quarter of the Company;
provided, however, that the obligations of the Company under this Section
8.3(a) shall be deemed to have been satisfied by the filing of a quarterly report on Form 10-Q
or an annual report on Form 10-K for the applicable period made by the Company with the United
States Securities and Exchange Commission; provided, further, that such periods
shall be reasonably extended to the extent it is not reasonably practicable to provide the
materials specified in this Section 8.3(a) as and when required by this Section
8.3(a).

               (b) In addition to the financial statements to be provided to the Members described in
Section 8.3(a), the Company shall provide to each Member that holds two percent (2%) or
more of the then total outstanding Units (excluding any Incentive Units) held by all Members: (i)
monthly reports of the operations of the Company and its Subsidiaries within fifteen (15) days
after the end of each month; and (ii) the Annual Budget within five (5) Business Days after such
Annual Budget has been approved by the Board of Managers or any dispute with respect to such Annual
Budget is finally resolved pursuant to the Management Agreement; provided, that such
periods shall be reasonably extended to the extent it is not reasonably practicable to provide the
materials specified in this Section 8.3(b) as and when required by this Section
8.3(b).

               (c) The Company shall cause to be prepared at least annually, at Company expense, information
necessary for the preparation of the Members’ United States federal, state and local tax or
information returns, and, if applicable, foreign tax or information returns. The Company shall
send or cause to be sent to each Member within ninety (90) days after the end of each taxable year
such information as is necessary to complete such Member’s United States federal, state and local
tax or information returns, and, if applicable, foreign tax or information returns and a copy of
the Company’s and its Subsidiaries’ United States federal, state and local tax or information
returns, and, if applicable, foreign tax or information returns for that year.

48

Table of Contents

          Section 8.4 Filings. The Board of Managers, at the Company’s expense, shall (a) cause all tax and
information returns for the Company and its Subsidiaries to be prepared and timely filed with the
appropriate authorities; and (b) cause to be prepared and timely filed, with appropriate federal
and state regulatory and administrative bodies, (i) any amendments to, or restatements of, the
Certificate of Formation and all reports required to be filed by the Company and its Subsidiaries
with those entities under the Act or other then current applicable Law; and (ii) any Exchange Act
Reports, so long as the Company remains subject to the reporting requirements of the Exchange Act,
and each Manager shall be furnished with a copy of each filing or Exchange Report filed pursuant to
this Section 8.4(b). If a Manager that is required by the Act to execute or file any
document fails, after demand, to do so within a reasonable period of time or refuses to do so, any
other Manager or Member may prepare, execute and file that document with the Secretary of State of
the State of Delaware.

          Section 8.5 Bank Accounts. The Company shall maintain the funds of the Company in one or more
separate bank accounts in the name of the Company, and shall not permit the funds of the Company to
be commingled in any fashion with the funds of any other Person.

          Section 8.6 Accounting Decisions and Reliance on Others. All decisions as to accounting matters,
except as otherwise specifically set forth herein, shall be made by the Board of Managers. The
Board of Managers may rely upon the advice of the Company’s independent accountants as to whether
such decisions are in accordance with GAAP.

          Section 8.7 Tax Matters for the Company Handled by Board of Managers; Tax Matters Member.

               (a) The Board of Managers shall from time to time cause the Company to make such tax elections
as they deem to be in the best interests of the Company. Unless otherwise required under the Code
or applicable Treasury Regulations, the Board of Managers or their designated agent shall represent
the Company (at the Company’s expense) in connection with all examinations of the Company’s affairs
by tax authorities, including resulting judicial and administrative proceedings, and shall expend
the Company funds for professional services and costs associated therewith. Each Member agrees to
cooperate with the Board of Managers, and, at the Company’s expense, to do or refrain from doing
any or all things reasonably requested by the Board of Managers in conjunction with any examination
of the Company’s affairs by tax authorities. The Board of Managers shall oversee the Company’s tax
affairs in the overall best interests of the Company.

               (b) North LV HoldCo, LLC is hereby designated as the “tax matters partner” (the “Tax
Matters Member”) of the Company as provided in Section 6231(a)(7) of the Code and the Treasury
Regulations promulgated thereunder (and any similar provisions under any state or local tax Laws)
and shall be so designated in each information return filed on behalf of the Company. The Tax
Matters Member shall use its reasonable efforts to comply with the responsibilities outlined in
Sections 6221 through 6233 of the Code (including the Treasury Regulations promulgated thereunder)
and shall have any powers necessary to perform fully in such capacity. Any Member who enters into
a settlement agreement with respect to any Company item shall notify the Tax Matters Member of such
settlement agreement and its terms

49

Table of Contents

within thirty (30) days after the date of settlement. In
addition, if the Tax Matters Member reasonably determines that it is necessary for the Company to
comply with new or existing tax Laws, the Members shall use their reasonable efforts to provide the
partnership with all information reasonably necessary for compliance with such tax Laws. The Tax
Matters Member shall not be liable to the Company or any Member to the extent provided in
Article X and shall be treated as an agent of the Company for purposes of Article
X. This provision shall survive any termination of this Agreement.

               (c) North LV HoldCo, LLC is hereby designated as the “notice partner,” as that term is defined
in Section 6231(a)(8) of the Code, for so long as it is a Member, and it shall have all the rights
granted to a notice partner under the Code and applicable Treasury Regulations.

          Section 8.8 Confidentiality Obligations.

               (a) Each Member agrees that from and after the date hereof until the date that is two (2)
years from the date on which such Member ceases to hold any Units, all Confidential Information
shall be kept confidential by such Member and its Representatives and shall not be disclosed, in
whole or in part, by such Member or its Representatives in any manner whatsoever to any third
party; provided, that (i) any of such Confidential Information may be disclosed (A) by a
Member to its Representatives who need to be provided with such Confidential Information to assist
such Member in evaluating or reviewing its investment in the Company; and (B) by a Member to its
Representatives that are current or prospective partners or members of such Member or are former
partners or members who retained an economic interest in such Member to the extent such disclosure
is limited to customary disclosures made in the ordinary course of business by an investment fund
to its current, prospective or former investors or equity holders in respect of investments made
thereby, including in connection with the disposition thereof, each of which Representatives shall
be deemed to be bound by the provisions of this Section 8.8 (provided, that with
respect to Representatives who are partners or members of any Member, such Representatives shall
instead be deemed to be bound by any confidentiality agreement or obligation with such Member
having restrictions substantially similar to this Section 8.8) and such Member shall be
responsible for any breach of this provision by any such Representative; (ii) any disclosure of
Confidential Information may be made by a Member or its Representatives to the extent a majority of
the Managers then in office consents in writing; (iii) a Member may disclose Confidential
Information to a potential third party purchaser of all or any portion of such Member’s Units in
connection with a potential sale of such Units; provided, that such Member shall cause such
potential third party purchaser to enter into a confidentiality agreement approved by the Company
(such approval not to be unreasonably withheld and in any event, shall be given by the Company to
such Member at least two (2) Business Days after the Company’s approval is sought by such Member;
provided, that if the Company has not explicitly approved or rejected such confidentiality
agreement upon the expiration of such period, the Company shall be deemed to have approved such
confidentiality agreement) and as to which the Company is an express third party beneficiary; and
(iv) Confidential Information may be disclosed by any Member or its Representative to the extent
that such Member or its Representative has received advice from its counsel that it is legally
compelled to do so or is required to do so to comply with applicable Law or legal process or
Governmental Authority request; provided, that prior to making such disclosure, such Member
or Representative, as the

50

Table of Contents

case may be, shall, to the extent permitted by applicable Law and unless
such disclosure is pursuant to a Governmental Authority request, use commercially reasonable
efforts to preserve the confidentiality of the Confidential Information, including consulting with
the Board of Managers and assisting the Company, at the Company’s expense, in seeking a protective
order to prevent the requested disclosure; provided, however, that in no event
shall a Member or its Representatives be required to directly initiate or participate in any legal
proceedings in connection with such efforts; provided, further, that such Member of
Representative, as the case may be, discloses only that portion of the Confidential Information as
is, based on the advice of its counsel, legally required.

               (b) Notwithstanding anything to the contrary herein, the confidentiality obligations of the
Members under this Section 8.8 shall not apply to the disclosure of the fact that the
disclosing Member has an indirect investment in Aliante Gaming or the Hotel (or their respective
successors) in name only (it being understood that this disclosure shall not include the investment
amount, valuation information or any other information related thereto); provided, that and
for the avoidance of doubt, such information may otherwise be disclosed by the Members to their
respective Representatives in accordance with clause (i) of Section 8.8(a).

               (c) The Company and its Subsidiaries shall not, and the Board of Managers shall cause the
Company and its Subsidiaries not to, make a public announcement disclosing the name of any Member
without the consent of such Member (not to be unreasonably withheld, conditioned or delayed);
provided, that any such disclosure may be made without such consent to the extent required
by applicable Law or legal process or Governmental Authority request.

          Section 8.9 Annual Budget. Pursuant to the Management Agreement, the Management Company will
prepare and present to the Board of Managers for its approval, an Annual Budget for each Fiscal
Year following the Fiscal Year ending December 31, 2011. If, after reviewing such Annual Budget, a
majority of the Managers then in office approve such Annual Budget, the Company and its
Subsidiaries shall be deemed to have adopted such Annual Budget. If such Annual Budget does not
receive the approval of a majority of the Managers then in office following its review by the Board
of Managers, any dispute between the Board of Managers and the Company and its Subsidiaries, on the
one hand, and the Management Company, on the other hand, shall be resolved pursuant to the terms of
the Management Agreement.

          Section 8.10 Termination of Management Agreement. In connection with the provision of management
services by the Management Company to Aliante Gaming, a wholly-owned Subsidiary of the Company,
pursuant to the Management Agreement with respect to the Hotel, any Principal Member or any of its
officers, directors, managers, direct or indirect shareholders, direct or indirect partners, direct
or indirect members, direct or indirect equity holders, direct or indirect parents, agents,
employees, representatives or any of its Affiliates, any Manager or any Affiliate of the foregoing
Persons (collectively, the “Owner Persons”) may at any time, in its sole, exclusive and
nonreviewable discretion, give notice to the Company that the commencement or continuation of the
Management Agreement could adversely affect one or more of the actual or potential licenses,
certificates of suitability, suitability findings, permits or

51

Table of Contents

the like of one or more of the Owner
Persons (an “Owner License”), whether such Owner License is, or may be, issued by the State
of Nevada or any other Governmental Authority. Upon the Company’s receipt of any such notice from
an Owner Person, the Company shall immediately cause Aliante Gaming to give notice to the
Management Company terminating the Management Agreement pursuant to the terms set forth therein.

ARTICLE IX

DISSOLUTION AND WINDING UP

          Section 9.1 Dissolution. The Company shall be dissolved, its assets shall be disposed of, and its
affairs wound up on the first to occur of the following (each, a “Dissolution Event”):

               (a) The entry of a decree of judicial dissolution under Section 18-802 of the Act;

               (b) A determination by the Board of Managers to dissolve the Company; or

               (c) The sale, transfer or other disposition of substantially all of the assets of the Company
in accordance with this Agreement.

Each Member hereby irrevocably waives any and all rights it may have to obtain a dissolution of the
Company in any way other than as specified above. The Board of Managers shall, within thirty (30)
days, notify the other Members of the occurrence of a Dissolution Event.

          Section 9.2 Winding Up. Upon the occurrence of any event specified in Section 9.1, the
Company shall continue solely for the purpose of winding up its affairs in an orderly manner,
liquidating its assets, and satisfying the claims of its creditors. The Board of Managers shall be
responsible for overseeing the winding up and liquidation of the Company, shall take full account
of the assets and liabilities of Company, shall either cause its assets to be sold or distributed,
and if sold as promptly as is consistent with avoiding a loss and obtaining the fair market value
thereof, shall cause the proceeds therefrom, to the extent sufficient therefor, to be applied and
distributed as provided in Section 9.3. The Persons winding up the affairs of the Company
shall give written notice of the commencement of winding up by mail to all known creditors and
claimants whose addresses appear on the records of the Company to the extent such Persons are
required to do so.

          Section 9.3 Order of Payment Upon Dissolution. Upon the occurrence of a Dissolution Event, the
Board of Managers shall designate one or more Persons to act as a liquidating agent (the
“Liquidator”). The Liquidator shall proceed diligently to wind up the affairs of the
Company and make final distributions as provided herein and in the Act. The costs of liquidation
shall be borne as a Company expense. Until the final winding up of the Company, the Liquidator
shall continue to operate the Company’s properties with all of the power and authority of the Board
of Managers, subject to the power of the Board of Managers to remove and replace such Liquidator.
The steps to be accomplished by the Liquidator are as follows:

52

Table of Contents

               (a) As promptly as possible after a Dissolution Event and again after final winding up of the
Company, the Liquidator shall cause a proper accounting to be made, and where practicable by a
recognized firm of certified public accountants, of the Company’s assets, liabilities and
operations through the last day of the calendar month in which the Dissolution Event occurs or the
final liquidation is completed, as applicable.

               (b) The Liquidator shall cause the Company’s property to be liquidated as promptly as is
consistent with avoiding a loss and obtaining the fair market value thereof.

               (c) The Liquidator shall distribute the proceeds of such liquidation and any other assets of
the Company (subject to any requirement under the Act) in the following order of priority:

                    (i) first, to payment of all of the Indebtedness and other liabilities and obligations
of the Company (including all expenses incurred in liquidation);

                    (ii) second, to the establishment of adequate reserves for the payment and discharge
of all Indebtedness and other liabilities and obligations of the Company to the extent not then
due, including contingent, conditional or unmatured liabilities, in such amount and for such term
as the Liquidator may reasonably determine;

                    (iii) third, any remaining proceeds of liquidation, and any assets that are to be
distributed in kind, shall be distributed to the Members in accordance with Section 6.1,
subject to the limitations of Article VI, as promptly as practicable.

               (d) The Liquidator shall use all reasonable efforts to reduce the assets of the Company to
cash and to distribute cash upon liquidation to the Members. Subject to the foregoing, if any
assets of the Company are not reduced to cash, then the Members (i) shall value the non-cash assets
of the Company at Fair Market Value, (ii) shall allocate any unrealized gain or loss to the
Members’ Capital Accounts as though the non-cash assets had been sold on the date of distribution
and (iii) shall, after giving effect to any such adjustment, treat the distribution of such
non-cash assets as equivalent to a distribution of cash in the amount of the Fair Market Value of
such assets (net of any liabilities secured by such assets that any Member assumes or takes subject
to). No Member shall have any right to any specific assets of the Company except as otherwise
herein specifically provided. In making distributions of non-cash assets under this Section
9.3(d), such assets may be distributed unequally among the Members only to the extent necessary
to avoid any Member receiving an asset that it is prohibited from holding or that could result in
adverse tax consequences to such Member; provided, that such unequal distribution shall not
affect the aggregate amount of distributions to any Member.

               (e) Each of the Members shall be furnished with a statement prepared by, or under the
supervision of, the Liquidator, which shall set forth the assets and liabilities of the Company as
of the date of complete liquidation and each Member’s portion of distributions pursuant to this
Section 9.3.

53

Table of Contents

          Section 9.4 Limitations on Payments Made in Dissolution. Except as otherwise specifically
provided in this Agreement, each Member shall only be entitled to look solely to the assets of the
Company for the payment of his, her or its Unrecovered Capital and shall have no recourse for any
such or other amounts against any Manager or any other Member.

          Section 9.5 Termination. The Company shall cause to be filed in the office of, and on a form
prescribed by, the Secretary of State of the State of Delaware, a Certificate of Cancellation of
the Certificate of Formation, upon the completion of the winding up of the affairs of the Company.
The Company shall terminate when all property owned by the Company shall have been disposed of and
the assets shall have been distributed as provided in Section 9.3 and a Certificate of
Cancellation of the Certificate of Formation have been filed with the Secretary of State of the
State of Nevada.

          Section 9.6 No Action for Dissolution. Except as expressly permitted in this Agreement, no Member
shall take any voluntary action that directly causes a Dissolution Event. The Members acknowledge
that irreparable damage would be done to the goodwill and reputation of the Company if any Member
should bring an action in court to dissolve the Company under circumstances where dissolution is
not required by Section 9.1.

ARTICLE X

INDEMNIFICATION AND INSURANCE

          Section 10.1 Indemnification. To the fullest extent permitted by applicable Law in effect on the
date hereof and to such greater extent as applicable Law may hereafter from time to time permit,
the Company shall defend, indemnify and hold harmless any present or former Member or Manager (and
any officers, directors, managers, shareholders, partners, members, equity holders, parents,
agents, employees, representatives and Affiliates of any Member or Manager) (each, a “Covered
Person”) from and against any and all losses, claims, fines, penalties, damages or liabilities,
including reasonable legal fees or other expenses incurred in investigating or defending against
such losses, claims, fines, penalties, damages or liabilities, and any amounts expended in
settlement of any claims (collectively, “Liabilities”) incurred or suffered by such Person
by reason of: (a) any act or omission or alleged act or omission performed or omitted to be
performed on behalf of the Company or its Subsidiaries or any Member or otherwise in connection
with the business of the Company or its Subsidiaries; (b) the fact that he or she is or was a
Covered Person, or that such Covered Person is or was serving at the request of the Company as a
manager, director, officer, member, partner, parent, representative, employee or other agent of any
other Person; or (c) any other act or omission or alleged act or omission arising out of or in
connection with the Company or its Subsidiaries or the business of the Company or its Subsidiaries,
to the extent not reimbursed by insurance or other coverage, in each case, if: (i) such Covered
Person acted or omitted to act in good faith and in the belief that such act or omission was in, or
was not opposed to, the best interests of the Company and, with respect to any criminal proceeding,
had no reason to believe his or her conduct was unlawful, and (ii) such Covered Person’s conduct
did not constitute fraud, gross negligence or willful misconduct. In the event of any Change of
Control Transaction, the Company or Member(s) effecting such transaction shall ensure that the
successor to the Company shall assume the Company’s indemnification obligations with respect to
this Section 10.1.

54

Table of Contents

          Section 10.2 Reimbursements; Advancements. To the fullest extent permitted by applicable Law in
effect on the date hereof and to such greater extent as applicable Law may hereafter from time to
time permit the Company (a) shall promptly reimburse (and/or advance to the extent reasonably
required) each Covered Person for reasonable legal or other expenses (as incurred) of such Covered
Person in connection with investigating, preparing to defend or defending any threatened, pending
or completed lawsuit, action, investigation, suit or proceeding to which such Covered Person is a
party to or is threatened to be made a party to, relating to any Liabilities for which such Covered
Person may be indemnified pursuant to Section 10.1; and (b) reimburse the Tax Matters
Member for all reasonable costs and expenses incurred by it in performing in its capacity as the
Tax Matters Member or in connection with any administrative or judicial proceeding affecting tax
matters of the Company and the Members in their capacity as such; provided, in each case,
that such reimbursement and/or advancement shall only be provided to such Covered Person upon
receipt by the Company of an undertaking by or on behalf of such Covered Person that if it is
finally judicially determined that such person is not entitled to the indemnification provided by
Section 10.1, then such Covered Person shall promptly reimburse the Company for any
reimbursed or advanced expenses.

          Section 10.3 Insurance. The Company shall have the power to purchase and maintain insurance on
behalf of any Covered Person against any Liability asserted against such Covered Person and
incurred by such Covered Person in any such capacity, or arising out of such Person’s status as a
Covered Person, whether or not the Company would have the power to indemnify such Covered Person
against such liability under the provisions of Section 10.1 or under applicable Law.

ARTICLE XI

MISCELLANEOUS

          Section 11.1 Entire Agreement. This Agreement, the Registration Rights Agreement and the
Certificate of Formation constitute the entire agreement of the Parties with respect to the subject
matter hereof and supersede any prior understandings, agreements or representations by or between
the Parties, written or oral, with respect to such subject matter.

          Section 11.2 Binding Effect. Subject to the provisions of this Agreement relating to
transferability, this Agreement will be binding upon, shall inure to the benefit of and shall be
enforceable by the respective successors and assigns of the Parties. No Member may assign any of
such Member’s rights hereunder to any Person other than in connection with a Transfer of Units that
is made in compliance with this Agreement to a transferee that has complied in all respects with
the requirements of this Agreement (including Section 4.2 and Article VII). Each
transferee of Units shall hold such Transferred Units subject to all of the terms of this Agreement
and such transferee shall be deemed to be bound by and shall comply with all of the terms and
provisions of this Agreement to the same extent and as applicable to the transferor.

55

Table of Contents

          Section 11.3 Parties in Interest. Except as expressly provided in the Act and except as provided
in Article X, nothing in this Agreement shall confer any rights or remedies under or by
reason of this Agreement on any Persons other than the Parties and their respective successors and
assigns, nor shall anything in this Agreement relieve or discharge the obligation or liability of
any third party to any Party, nor shall any provision give any third party any right of subrogation
or action over or against any Party.

          Section 11.4 Headings. The headings used in this Agreement have been inserted for convenience of
reference only and do not define or limit the provisions hereof.

          Section 11.5 Representation by Counsel. Each of the Parties has been represented by and has had an
opportunity to consult legal counsel in connection with the negotiation and execution of this
Agreement. No provision of this Agreement shall be construed against or interpreted to the
disadvantage of any Party by any court or arbitrator or any Governmental Authority by reason of
such Party having drafted or being deemed to have drafted such provision.

          Section 11.6 Governing Law. This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware, without giving effect to any choice of law or conflict of law
provision or rule that would cause the application of the laws of any jurisdiction other than the
State of Delaware.

          Section 11.7 Consent to Jurisdiction; Service of Process. The Parties agree that any suit, action
or proceeding seeking to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby shall be brought
exclusively in federal or state courts located in Wilmington, Delaware, and each of the Parties
hereby irrevocably consents to the jurisdiction of such courts (and of the appropriate appellate
courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest
extent permitted by Law, any objection that it may now or hereafter have to the laying of the venue
of any such suit, action or proceeding in any such court or that any such suit, action or
proceeding brought in any such court has been brought in an inconvenient forum. Process in any
such suit, action or proceeding may be served on any Party anywhere in the world, whether within or
without the jurisdiction of any such court. Without limiting the foregoing, each Party agrees that
service of any process, summons, notice or document by U.S. registered mail to its address set
forth in Schedule I shall be deemed effective service of process for any suit, action or
proceeding seeking to enforce any provision of, or based on any matter arising out of or in
connection with, this Agreement or the transactions contemplated hereby brought against such party
in any such court as set forth in this Section 11.7.

          Section 11.8 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES ANY AND
ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY.

          Section 11.9 Exhibits and Schedules. All Exhibits and Schedules attached to this Agreement are
incorporated and shall be treated as if set forth herein.

56

Table of Contents

          Section 11.10 Invalid Provisions. If any provision of this Agreement is held to be illegal, invalid
or unenforceable under any present or future Law, and if the rights or obligations of any Party
under this Agreement shall not be materially and adversely affected thereby, (a) such provision
shall be fully severable, (b) this Agreement shall be construed and enforced as if such illegal,
invalid or unenforceable provision had never comprised a part hereof, (c) the remaining provisions
of this Agreement shall remain in full force and effect and shall not be affected by the illegal,
invalid or unenforceable provision or by its severance herefrom and (d) in lieu of such illegal,
invalid or unenforceable provision, there shall be added automatically as a part of this Agreement
a legal, valid and enforceable provision as similar in terms to such illegal, invalid or
unenforceable provision as may be possible.

          Section 11.11 Further Assurances. Each Party shall cooperate and shall take such further action and
shall execute and deliver such further documents as may be reasonably requested by the other party
in order to carry out the provisions and purposes of this Agreement.

          Section 11.12 Notices. All notices, requests and other communications hereunder must be in writing
and shall be deemed to have been duly given only if delivered personally against written receipt or
by facsimile transmission or mailed by prepaid first class mail, return receipt requested, or
mailed by overnight courier prepaid (a) to a Member at the address specified in Schedule I;
and (b) to the Company at ALST Casino Holdco, LLC, 650 Madison Avenue, 23rd Floor, New York, NY
10022, Facsimile: 212-610-9171, Attention: Secretary, and a copy, which shall not constitute
notice, to: Paul, Weiss Rifkind, Wharton & Garrison LLP, 1285 Avenue of the Americas, New York, NY
10019-6064, Facsimile: 212-757-3990, Attention: Jeffrey D. Marell. All such notices, requests and
other communications shall (i) if delivered personally to the address as provided on Schedule
I, be deemed given upon delivery; (ii) if delivered by mail in the manner described above to
the address as provided on Schedule I, upon the earlier of the third (3rd)
Business Day following mailing or upon receipt; and (iii) if delivered by overnight courier to the
address as provided on Schedule I, be deemed given on the earlier of the first
(1st) Business Day following the date sent by such overnight courier or upon receipt.
Any Party may, at any time by giving five (5) days’ prior written notice to the other Parties,
designate any other address in substitution of the foregoing address to which such notice will be
given.

          Section 11.13 Amendment and Waiver.

               (a) Except as otherwise expressly provided in this Agreement, this Agreement and/or the
Certificate of Formation may be amended or modified, and any provision hereof and/or thereof may be
waived, only by a written instrument duly approved by a majority of the Managers then in office and
the Members that hold at least two-thirds
(2¤3) of the then
total outstanding Units (excluding any Incentive Units) held by all Members, and duly executed by
the Company; provided, however, that the Company may, without the consent of any
Member, amend or modify this Agreement or waive any provision of this Agreement (other than this
Section 11.13(a)) and/or the Certificate of Formation pursuant to a written instrument duly
approved by a majority of the Managers then in office to the extent necessary or (as determined by
the Board of Managers) desirable to (i) issue new Units (including Incentive Units), Membership
Interests or other securities of the Company in accordance with, and subject to the

57

Table of Contents

limitations
contained in, Section 3.2, whether ranking senior to, junior to or pari passu with the
Units or that have economic, voting or other rights, preferences and obligations that are different
from those of the Units and incorporate the terms thereof, herein and/or therein (as applicable),
including equitably adjusting any ownership threshold (whether expressed as a number, percentage,
fraction or otherwise) set forth in this Agreement; (ii) effect the admission of new Members
pursuant to Section 4.2 or any Transfer of Units pursuant to the terms of this Agreement;
(iii) amend or modify Schedule I or any other provision of this Agreement to reflect any
new issuance, redemption, repurchase, reallocation or Transfer of Units (including any Incentive
Units) in accordance with this Agreement; (iv) to comply with any applicable Law (including Gaming
Laws) or to protect the limited liability of the Members; (v) to avoid any adverse income tax
consequences resulting from any additional Capital Contribution made to the Company; (vi) effect an
IPO Restructuring; or (vii) to make technical or clarifying changes to this Agreement and/or the
Certificate of Formation that are of an inconsequential or immaterial nature (as reasonably
determined by the Board of Managers) or that have economic, voting or other rights, preferences and
obligations that are different from those of the Units; provided, further, that no
amendment, modification or waiver which would disproportionately and adversely affect the interests
of any Member hereunder and/or thereunder (as applicable) shall be effective without the written
approval of such Member. In the event of the amendment or modification of this Agreement in
accordance with its terms, the Board of Managers shall meet within thirty (30) days following such
amendment or modification (or as soon thereafter as is practicable) for the purpose of adopting any
amendment to the Certificate of Formation that may be advisable as a result of such amendment or
modification to this Agreement, and, to the extent the Company is not permitted to effect such
amendment to the Certificate of Formation without the approval of the Members, proposing such
amendments to the Certificate of Formation to the Members entitled to vote thereon. The Members
hereby agree to vote in favor of such amendments to the Certificate of Formation.

               (b) Except as otherwise provided in this Agreement, any failure of any of the Parties to
comply with any obligation, covenant, agreement, term or condition herein may be waived by the
Party entitled to the benefits thereof only by a written instrument signed by the Party granting
such waiver, but such waiver or failure to insist upon strict compliance with such obligation,
covenant, agreement, term or condition shall not operate as a waiver of, or estoppel with respect
to, any subsequent or other failure.

          Section 11.14 Reliance on Authority of Person Signing Agreement. If a Member is not a natural
person, neither the Company nor any Member will (a) be required to determine the authority of the
individual signing this Agreement to make any commitment or undertaking on behalf of such entity or
to determine any fact or circumstance bearing upon the existence of the authority of such
individual or (b) be responsible for the application or distribution of proceeds paid or credited
to individuals signing this Agreement on behalf of such entity.

          Section 11.15 No Interest in Company Property; Waiver of Action for Partition. No Member or
Assignee has any interest in specific property of the Company. Without limiting the foregoing,
each Member irrevocably waives during the term of the Company any right that such Member may have
to maintain any action for partition with respect to the property of the Company.

58

Table of Contents

          Section 11.16 Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Agreement by facsimile
or a pdf attachment to electronic email shall be effective as delivery of a manually executed
counterpart to this Agreement.

          Section 11.17 Attorney Fees. In any action or proceeding brought to enforce any provision of this
Agreement or any other document or instrument contemplated hereby, or where any provision thereof
is validly asserted as a defense, the successful party shall be entitled to recover reasonable
attorneys’ fees, charges and disbursements in addition to any other available remedy.

          Section 11.18 Remedies Cumulative. The remedies under this Agreement are cumulative and shall not
exclude any other remedies to which any Party may be entitled in law or equity.

          Section 11.19 Gaming Suitability.

               (a) Mandatory Termination of Investment.

                    (i) As the investment of each Member is subject to regulation by the Gaming Authorities,
Members are subject to ongoing oversight in connection with their ownership of Units. The Company
shall submit to the Gaming Authorities from time to time certain information regarding the Members
to permit the Gaming Authorities to determine or confirm the Members’ suitability to own Units.
Such information may include the full name and other names used (oral or written), social security
number, tax payer identification number, birth date, place of birth, jurisdiction of formation,
citizenship and gender of each Member. Each Member hereby authorizes the Company to
submit such information to, as well as other information requested by, the Gaming Authorities.

                    (ii) If (A) any Member is required by any Gaming Authority to be found suitable and such
Member does not apply for a finding of suitability within thirty (30) days after the request if
such Gaming Authority (an “Unsuitable Member”); or (B) any Gaming Authority determines that
any Member is not suitable to continue to own Units (whether due to such Member’s failure to
respond to a background investigation request or for any other reason) (also, an “Unsuitable
Member”) and notifies the Company that such Unsuitable Member must be removed from its
investment in Company (each of (A) and (B), a “Gaming Event”), then (x) such Unsuitable
Member, at the request of the Company, shall dispose of such Unsuitable Member’s interest within
thirty (30) days or such other period of time as is prescribed by the Gaming Authorities; or (B) at
the election of the Company, such Unsuitable Member’s Membership Interest shall be terminated and
redeemed.

                    (iii) Following the occurrence of a Gaming Event, the Company may deliver to such Unsuitable
Member a written notification of such Gaming Event stating (A) the election of the Company to
terminate the Unsuitable Member’s Membership Interest and to exercise its removal rights pursuant
to this Section 11.19(a), and (B) the effective date of the termination of the Unsuitable
Member’s Membership Interest and removal from the Company.

59

Table of Contents

Upon the receipt of any notification
from a Gaming Authority that it is reviewing the suitability of a Member or considering requiring
the removal of a Member, the Company shall promptly notify such Member and keep such Member
apprised of such matter such that the Member can address such matter directly with such Gaming
Authority.

                    (iv) Beginning on the date on which a Gaming Authority serves a notice to the Company that any
Member is not suitable to continue to own Units (whether due to such Unsuitable Member’s failure to
respond to a background investigation request or for any other reason), the Company may and, to the
extent required by the applicable Gaming Authority, shall, prohibit the Unsuitable Member from: (A)
receiving any share of the distribution of profits or cash or any other property of, or payments
upon dissolution of, the Company, other than the payments described in this Section
11.19(a)(iv); (B) exercising directly or through a trustee or nominee, any voting right
conferred by such Unsuitable Member’s Membership Interest; (C) participating in the management of
the business and affairs of the Company and its Subsidiaries; or (D) receiving remuneration in any
form from the Company for services rendered or otherwise. Following the termination of such
Unsuitable Member’s Interest and removal from the membership of the Company, such Unsuitable Member
shall be entitled to receive in consideration for its Membership Interest an amount equal to the
Fair Market Value of its Membership Interest as determined by the Board of Managers or such other
amount as shall be prescribed by the applicable Gaming Authority, such amount being payable, in the
sole discretion of the Board of Managers and to the extent permitted by the applicable Gaming
Authority, either (x) in cash on the date that is no later than thirty (30) days after the
determination of such fair value; or (y) in the form of a promissory note containing the terms set
forth in Section 11.19(a)(v) (the “Promissory Note”). In connection therewith, the
Company shall be permitted to make such adjustments to the Unsuitable Member’s Capital Account as
it deems equitable under the circumstances.

                    (v) The principal amount owing under the Promissory Note shall bear interest at a rate equal
to the lesser of (A) the lesser of (x) the highest rate permitted by Law; and (y) the greater of
(1) the highest rate that the Company can reasonably obtain from a money market fund; and (2) that
rate necessary to avoid imputation of interest under any applicable provision of the Code; or
(B) such other rate as shall be prescribed by the applicable Gaming Authority. The Promissory Note
shall mature and become due and payable in full on (x) the earlier to occur of (1) the dissolution
and winding up of the Company; and (2) ten (10) years from the date of issuance; or (y) such other
date as shall be prescribed by the applicable Gaming Authority. The Company may, upon the
direction of the Board of Managers, prepay in whole or in part, the principal amount and/or any
interest outstanding under Promissory Note at any time without penalty.

                    (vi) Any removal of an Unsuitable Member from the membership of the Company and the
termination of the Unsuitable Member’s Membership Interest as provided in this Section
11.19(a) shall occur promptly after the occurrence of a Gaming Event, subject to applicable
Gaming Laws.

60

Table of Contents

               (b) Qualification of Managers and Officers under Gaming Laws. The election of an
individual to serve as a Manager or officer of the Company is subject to any qualifications or
approvals required under any Gaming Laws. For purposes of this Agreement, an individual shall be
qualified to serve as a Manager or officer for so long as that individual is determined to be, and
continues to be, licensed, qualified and found suitable by all Gaming Authorities having
jurisdiction over the Company, or any manager or officer and under all applicable Gaming Laws.

[Remainder of Page Intentionally Left Blank]

61

Table of Contents

IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the date
first above written.

	 	 	 	 	 
	 	ALST CASINO HOLDCO, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	Soohyung Kim 	 
	 	 	Title:  	Initial Manager 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	NORTH LV HOLDCO, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	APOLLO ALST HOLDCO, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	TPG ALST HOLDCO, L.L.C.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	HALCYON ALST LLC

 	 
	 	By:  	Halcyon Asset Management LLC, its Manager
 	 
	 
	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	NYBEQ LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	

CREDIT AGRICOLE LEASING (USA) CORPORATION

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	MERRILL LYNCH, PIERCE, FENNER & SMITH INC.

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	CITY NATIONAL BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	MANUFACTURERS BANK

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	BARCLAYS CAPITAL INC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

	 	 	 	 	 
	 	SERVICE 1ST BANK OF NEVADA

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Amended and Restated Operating Agreement of ALST Casino Holdco, LLC

 

Table of Contents

SCHEDULE I

MEMBERS, CAPITAL CONTRIBUTIONS AND UNITS

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Member	 	Capital Contributions	 	 	Capital Account Balance	 	 	Number of Units	 	 	Percentage Interest	 	 	Class of 
Units	 
	North LV HoldCo, LLC 

650 Madison Avenue, 23rd Floor 

New York, NY 10022	 	$	123,828,431	 	 	$	123,828,431	 	 	 	123,828	 	 	 	28.663	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Apollo ALST Holdco, LLC 

c/o Apollo Management, L.P. 

9 West 57th Street, 43rd Floor 

New York, 10019	 	$	85,085,951	 	 	$	85,085,951	 	 	 	85,086	 	 	 	19.696	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TPG ALST HoldCo, L.L.C. 

301 Commerce Street, Suite 3300

Fort Worth, TX 76102	 	$	85,085,951	 	 	$	85,085,951	 	 	 	85,086	 	 	 	19.696	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Halcyon ALST LLC 

477 Madison Avenue, 8th Floor 

New York, NY 10022	 	$	38,726,632	 	 	$	38,726,632	 	 	 	38,727	 	 	 	8.964	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	NYBEQ LLC 

c/o Natixis 

9 West 57th Street, 15th Floor 

New York, NY 10019	 	$	35,133,671	 	 	$	35,133,671	 	 	 	35,134	 	 	 	8.133	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Credit Agricole Leasing (USA) Corporation 

1301 Avenue of the Americas 

New York, NY 10019-6022	 	$	25,095,479	 	 	$	25,095,479	 	 	 	25,095	 	 	 	5.809	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Merrill Lynch, Pierce, Fenner & Smith Inc. 

214 N. Tryon St., NC1-027-15-01

Charlotte, NC 28255

Attn: Information Manager	 	$	22,800,230	 	 	$	22,800,230	 	 	 	22,800	 	 	 	5.278	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

Table of Contents

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Capital	 	 	Capital Account	 	 	 	 	 	 	Percentage	 	 	 	 	 
	Member	 	Contributions	 	 	Balance	 	 	Number of Units	 	 	Interest	 	 	Class of Units	 
	City National Bank 

Special Assets Department 

555 S. Flower Street, 16th Floor 

Los Angeles, CA 90071

Attn: Jane E. McKelvie, Vice President	 	$	10,038,192	 	 	$	10,038,192	 	 	 	10,038	 	 	 	2.324	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Manufacturers Bank 

515 South Figueroa Street 

Los Angeles, CA 90071

Attn: Karen Kearney	 	$	5,019,096	 	 	$	5,019,096	 	 	 	5,019	 	 	 	1.162	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Barclays Capital Inc 

1301 6th Avenue 

New York, NY 10166

Attn: Jenna Yoo	 	$	1,149,259	 	 	$	1,149,259	 	 	 	1,149	 	 	 	0.266	%	 	Units
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Service 1st Bank of Nevada 

8363 W. Sunset Road — Suite 350

Las Vegas, NV 89113	 	$	41,195	 	 	$	41,195	 	 	 	41	 	 	 	0.010	%	 	Units
	Total
	 	$	432,004,087	 	 	$	432,004,087	 	 	 	432,004	 	 	 	100.000	%	 	 	 	 

 

Table of Contents

EXHIBIT A

ADDENDUM AGREEMENT

     This Addendum Agreement (this “Addendum Agreement”) is made this [___] day of
[_____________], 20[__], by and between [_____________________] (the “Transferee”)[,
[_____________________] (the “Transferor”)]1 and ALST Casino Holdco, LLC, a
Delaware limited liability company (the “Company”), pursuant to the terms of that certain
Amended and Restated Operating Agreement of the Company dated as of [_____], 2011, including all
exhibits and schedules thereto (the “Agreement”). Capitalized terms used but not otherwise
defined herein shall have the meanings ascribed to them in the Agreement.

WITNESSETH:

     WHEREAS, the Company and the Members entered into the Agreement to impose certain restrictions
and obligations upon themselves, and to provide certain rights, with respect to the Company, the
Members and the Units;

     WHEREAS, the Transferee is acquiring Units issued by the Company or pursuant to a Transfer, in
either case in accordance with the Agreement and in such amount as set forth in Section 4
below (the “Acquired Units”); and

     WHEREAS, the Company and the Members have required in the Agreement that any Person to whom
Units are transferred and any other Person acquiring Units must enter into an Addendum Agreement
binding the Transferee to the Agreement to the same extent as if it were an original party thereto
and imposing the same restrictions and obligations on the Transferee and the Acquired Units as are
imposed upon the Members and the Units under the Agreement.

     NOW, THEREFORE, in consideration of the mutual promises of the parties hereto and as a
condition of the purchase or receipt by the Transferee of the Acquired Units, the Transferee
acknowledges and agrees as follows:

     1. The Transferee has received and read the Agreement and acknowledges that the Transferee is
acquiring the Acquired Units in accordance with and subject to the terms and conditions of the
Agreement.

     2. By the execution and delivery of this Addendum Agreement, the Transferee represents and
warrants to, and agrees with the Company that the following statements are true and correct as of
the date hereof:

 

			
	1	 	Remove the Transferor as a party to this
Addendum Agreement if the Acquired Units are being issued to the Transferee by
the Company.

A-1

Table of Contents

     (a) The Transferee is acquiring the Acquired Units for its own account solely for
investment and not with a view to resale or distribution thereof other than in compliance
with all applicable securities Laws.

     (b) If the Transferee is an entity, the Transferee is duly organized and validly
existing under the Laws of its jurisdiction of organization.

     (c) The Transferee (i) has been found suitable to hold Units of the Company by all
applicable Gaming Authorities in circumstances where such approval is required, (ii) has
obtained all necessary Gaming Licenses, and (iii) is in compliance with all applicable
Gaming Laws.

     (d) The execution, delivery and performance by the Transferee of this Addendum
Agreement are within the Transferee’s corporate or other powers, as applicable, have been
duly authorized by all necessary corporate or other action on its behalf (or, if the
Transferee is an individual, are within such Transferee’s legal right, power and capacity),
require no consent, approval, permit, license, order or authorization of, notice to, action
by or in respect of, or filing with, any Governmental Authority (except as expressly
disclosed in writing to the Board of Managers prior to the date hereof), and do not and
will not result in a breach of any of the terms, conditions or provisions of, or constitute
a default under, any provision of applicable Law or of any judgment, order, writ,
injunction or decree or any agreement or other instrument to which the Transferee is a
party or by which the Transferee or any of the Transferee’s properties is bound. This
Addendum Agreement has been duly executed and delivered by the Transferee and constitutes a
valid and binding agreement of the Transferee, enforceable against the Transferee in
accordance with its terms.

     (e) The Transferee acknowledges that the offering and sale of the Acquired Units have
not been and will not be registered under the Securities Act, and are being made in
reliance upon federal and state exemptions for transactions not involving a public
offering. In furtherance thereof, the Transferee represents and warrants that it is an
“accredited investor” (as defined in Regulation D promulgated under the Securities Act) and
the Transferee has sufficient knowledge and experience in financial and business matters so
as to be capable of evaluating the risks of its investment in the Acquired Units. The
Transferee agrees that it will not take any action that could have an adverse effect on the
availability of the exemption from registration provided by Regulation D promulgated under
the Securities Act with respect to the offer and sale of the interests in the Company. In
connection with its acquisition of the Acquired Units, the Transferee meets all suitability
standards imposed on it by applicable Law.

     (f) The Transferee has been given the opportunity to (i) ask questions of, and receive
answers from, the Company concerning the terms and conditions of the Acquired Units and
other matters pertaining to an investment in the Company and (ii) obtain any additional
information necessary to evaluate the

A-2

Table of Contents

merits and risks of an investment in the Company that
the Company can acquire without unreasonable effort or expense. In considering its
investment in the Acquired Units, the Transferee has evaluated for itself the risks and
merits of such investment, and is able to bear the economic risk of such investment,
including a complete loss of capital, and in addition has not relied upon any
representations made by, or other information (whether oral or written) furnished by or on
behalf of, the Company or its Subsidiaries or any director, officer, employee, agent or
Affiliate of such Persons, other than as set forth in this Agreement. The Transferee has
carefully considered and has, to the extent it believes necessary, discussed with legal,
tax, accounting and financial advisors the suitability of an investment in the Company in
light of its particular tax and financial situation, and has determined that the Acquired
Units are a suitable investment for such Member.

     (g) The Transferee does not have any liability or obligation to pay an fees or
commissions to any broker, finder, or agent with respect to the execution, delivery or
performance of this Addendum Agreement by the Transferee.

     3. The Transferee agrees that the Acquired Units are bound by and subject to all of the terms
and conditions of the Agreement, and hereby joins in, and agrees to be bound, by, and shall have
the benefit of, all of the terms and conditions of the Agreement to the same extent as if the
Transferee were an original party to the Agreement or an initial Member, as the case may be;
provided, however, that the Transferee’s joinder in the Agreement shall not
constitute admission of the Transferee as a Member unless and until the Company executes this
Addendum Agreement confirming the due admission of the Transferee. This Addendum Agreement shall
be attached to and become a part of the Agreement.

     4. [For good and valuable consideration, the sufficiency of which is hereby acknowledged by
the Transferor and the Transferee, the Transferor hereby transfers and assigns absolutely to the
Transferee the Acquired Units, including, for the avoidance of doubt, all rights, title and
interest in and to the Acquired Units, with effect from the date hereof. It is hereby confirmed by
the Transferor that the Transferor has complied in all respects with the provisions of the
Agreement with respect to the transfer of the Acquired Units. The number of Units currently held
by the Transferor, and the number of Acquired Units to be transferred and assigned pursuant to this
Addendum Agreement, are as follows:]2

	 	 	 

	Number of Units Held by the Transferor

	 	Number of Acquired Units

 

			
	2	 	Delete the text and the table and replace
them with the following language if the Acquired Units are being issued to
the Transferee by the Company:

     “In exchange for a Capital Contribution of $[_____], the sufficiency of
which is hereby acknowledged by the Company and the Transferee, the Company
hereby issues [___] Units to the Transferee.”

A-3

Table of Contents

[          ]           [          ]

 

			
	5.	 	The Transferee hereby agrees to accept the Acquired Units and hereby agrees and consents to
become a Member.
	 
	6.	 	Any notice required as permitted by the Agreement shall be given to Transferee at the
address listed beneath the Transferee’s signature below.
	 
	7.	 	This Addendum Agreement shall be governed by and construed in accordance with the Laws of
the State of Delaware.

[Remainder of Page Intentionally Left Blank]

A-4

Table of Contents

     IN WITNESS WHEREOF, the parties hereto have executed and delivered this Agreement as of the
date first above written.

	 	 	 	 	 
	THE COMPANY:	

 ALST CASINO HOLDCO, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	TRANSFEROR:	 [INSERT NAME]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	]3 	 
	 
	TRANSFEREE: 	[INSERT NAME]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	[INSERT TRANSFEREE’S ADDRESS] 	 
	 

 

			
	3	 	Delete the Transferor’s signature block if
the Acquired Units are being issued to the Transferee by the Company.

A-5exv10w2

Exhibit 10.2

MANAGEMENT AGREEMENT

     This MANAGEMENT AGREEMENT (this “Agreement”) is entered into as of November 1, 2011
(the “Effective Date”) by and between Station Casinos LLC, a Nevada limited liability
company (“Manager”), and Aliante Gaming, LLC, a Nevada limited liability company
(“Owner”).

     WHEREAS, the Prepackaged Joint Chapter 11 Plan of Reorganization for Subsidiary Debtors,
Aliante Debtors and Green Valley Ranch Gaming, LLC dated March 22, 2011 (as the same may be amended
from time to time, the “Plan”) was filed with the United States Bankruptcy Court for the
District of Nevada (the “Court”) on April 12, 2011, and confirmed by the Court on May 25,
2011;

     WHEREAS, the Plan contemplates that Manager and Owner will enter into an agreement pursuant to
which Manager will provide certain management services, operating services, and transition services
to Owner in connection with the Hotel (as defined below);

     WHEREAS, Manager desires to provide to Owner, and Owner desires to obtain from Manager, such
management, operating, and transition services as more fully set forth herein and on the terms and
conditions herein.

     NOW, THEREFORE, in consideration of the premises and the agreements contained herein and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, and intending to be legally bound, Manager and Owner hereby agree as follows:

ARTICLE 1

INTERPRETATION; DEFINITIONS

     1.1 Interpretation. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation.” The word “will”
shall be construed to have the same meaning and effect as the word “shall,” and vice versa. Except
as otherwise stated herein, (a) any reference to a section or schedule shall be deemed to be a
reference to the corresponding section or schedule of this Agreement, and (b) the word “herein”,
“hereof” or “hereunder” shall be construed to refer to this Agreement as a whole and not to the
specific provision, section or article in which such word is used.

     1.2 Definitions. The following terms, when used herein with initial capital letters,
shall have the meanings ascribed to such terms in this Article 1.

          “Accounts” has the meaning set forth in Section 15.4.

          “Accounting Month” means a full calendar month (or partial calendar month, if
applicable at the beginning of the initial Operating Year or end of the final Operating Year).

 

 

          “Accounting Quarter” means a full calendar quarter (or partial calendar quarter, if
applicable at the beginning of the initial Operating Year or end of the final Operating Year).

          “Actual Cost” means the verifiable direct and indirect cost of (i) goods and services
procured by a Party from outside vendors (without mark-up), (ii) spare parts and inventory on hand
allocated and deployed to the Hotel, and (iii) third party labor costs charged by outside vendors
and actually incurred by such Party. For avoidance of doubt, a given function performed under this
Agreement may require use of both third party vendors, whose invoices shall be a recoverable Actual
Cost, and Shared Services provided by Manager’s personnel, the cost of which shall be recoverable
Shared Expenses, in each case subject to the terms of this Agreement. Shared Expenses shall be
computed as provided on Schedule A.

          “Affected Person” has the meaning set forth in Section 8.7.

          “Agreement” has the meaning set forth in the preamble.

          “Affiliate” means, with respect to a specified Person, any other Person that, directly
or indirectly, controls, is controlled by, or is under common control with, such specified Person.
For purposes hereof, the term “control” shall mean the possession, directly or indirectly, of the
power to direct or cause the direction of the management or policies of any Person, or the power to
veto major policy decisions of any Person, whether through the ownership of voting securities, by
agreement, or otherwise.

          “Annual Budget” has the meaning set forth in Section 11.2.

          “Applicable Law” means all (i) statutes, laws, rules, regulations, ordinances, codes
or other legal requirements of any federal, state or local Governmental Authority, board of fire
underwriters and similar quasi-Governmental Authority, including any legal requirements under any
Approvals, including Gaming Laws, and (ii) judgments, injunctions, orders or other similar
requirements of any court, administrative agency or other legal adjudicatory authority, in each
case in effect at the time in question and to the extent the Hotel or the Person in question, as
applicable, is subject to the same. Without limiting the generality of the foregoing, references
to Applicable Law shall include any of the matters described in clause (i) or (ii) above relating
to employees, zoning, building, health, safety and environmental matters and accessibility of
public facilities.

          “Approvals” means all licenses, permits, approvals, certificates and other
authorizations granted or issued by any Governmental Authority for the matter or item in question.

          “Asset Manager” means any Person appointed by Owner from time to time to act as
Owner’s asset manager for the Hotel and to report to Owner in such capacity.

          “Bank Accounts” has the meaning set forth in Section 15.1.

          “Base Management Fee” means, with respect to any period during the Operating Term or
Transition Period, a fee payable to Manager in accordance with Section 9.1, which fee shall
be in an amount equal to one percent (1%) of Gross Operating Revenue for such period.

2

 

          “Boarding Pass Program” means the Station Casinos, Inc. “Boarding Pass” player rewards
program.

          “Building Capital Improvements” means all repairs, alterations, improvements,
renewals, replacements or additions of or to the structure or exterior façade of the Hotel, or to
the mechanical, electrical, plumbing, HVAC (heating, ventilation and air conditioning), vertical
transport and similar components of the Hotel building, that are capitalized under GAAP and
depreciated as real property, but expressly excluding ROI Capital Improvements.

          “Capital Budget” has the meaning set forth in Section 11.1(c).

          “CC&R’s” means Covenants, Conditions and Restrictions.

          “Certified Financial Statements” has the meaning set forth in Section 10.4.

          “Condemnation” means a taking of all or any portion of the Hotel by any Governmental
Authority by condemnation or power of eminent domain for any purpose whatsoever, or a conveyance by
Owner in lieu or under threat of such taking.

          “Confidential Information” has the meaning set forth in Section 6.2.

          “CPI” means the Consumer Price Index for All Urban Consumers (CPI-U) for the West
Region, as published by the United States Bureau of Labor Statistics, using the period 1982-84 as a
base of one hundred (100), or, if such index is discontinued, the most comparable index published
by any United States Governmental Authority and acceptable to Owner and Manager.

          “EBITDA” means, with respect to any period, the consolidated Net Income of the Hotel
for such period plus, without duplication, to the extent the same was deducted in calculating Net
Income: (i) interest expense and income taxes; plus (ii) depreciation and amortization expense.

          “Effective Date” has the meaning set forth in the preamble.

          “Entity” means a partnership, a corporation, a limited liability company, a
Governmental Authority, a trust, an unincorporated organization or any other legal entity of any
kind.

          “Exclusive Hotel Data” means any and all (i) business, accounting, personnel and other
similar records and data related exclusively to the operation and management of the Hotel, and (ii)
customer data and player-tracking data (including aggregate customer/player spend or activity at
the Hotel) that is specific to customers of the Hotel vis-à-vis other properties that Manager or
any of its Affiliates, at least in part, owns, has owned, manages, or has managed (other than any
account balance history, status level and redemption history information that is generated by, or
contained in, the Boarding Pass Program, all of which shall remain the sole property of Manager or
such Affiliates), and includes in each case records and data that are commingled with records and
data not related to the Hotel but that can be segregated as Hotel-specific records and data.
Manager shall use commercially reasonable efforts to so segregate

3

 

such records and data. In all events, Exclusive Hotel Data shall include all available data
on all “rated” play at the Hotel and all available data on the players who engaged in such “rated”
play, other than data relating to such players’ activity at properties other than the Hotel.

          “FF&E” means furniture, fixtures, equipment (including slot machine equipment), and
interior and exterior signs, as well as other improvements and personal property used in the
Operation of the Hotel that are not Operating Supplies or Operating Consumables.

          “Financing” means any debt financing secured (in whole or in part) by a Mortgage or
Security Interest.

          “Financing Documents” means all loan agreements, promissory notes, mortgages, deeds of
trust, security agreements and other documents and instruments (including all amendments,
modifications, side letters and similar ancillary agreements) relating to any Financing.

          “Force Majeure Event” means, with respect to any Party, any event that is beyond the
reasonable control of such Party, including (i) any fire, flood, storm, earthquake, hurricane,
tornado, flood or other act of God, (ii) any war, act of terrorism, insurrection, rebellion, riots
or other civil unrest, (iii) any epidemic, quarantine restriction or other public health
restriction or advisory, (iv) any strike or lockout or other labor interruption, (v) any disruption
to local, national or international transport services and (vi) any embargo or lack of materials,
water, power or telephone transmissions.

          “GAAP” means those conventions, rules, procedures and practices, consistently applied,
affecting all aspects of recording and reporting financial transactions which are generally
accepted by major independent accounting firms in the United States at the time in question. Any
financial or accounting terms not otherwise defined herein shall be construed and applied according
to GAAP.

          “Gaming Laws” means any Applicable Law regulating or otherwise pertaining to casinos,
gaming or gambling, including Applicable Laws of the Nevada State Gaming Control Board and the
Nevada Gaming Commission.

          “Governmental Authority” means any government or political subdivision, or an agency
or instrumentality thereof.

          “Gross Operating Revenue” or “GOR” means, with respect to any period, all
revenue and income of any kind derived from the Operation of the Hotel (including any banquet and
catering functions at the Hotel and any parking facilities at the Hotel) and properly attributable
to such period (including rentals or other payments from licensees, lessees or concessionaires of
retail space in the Hotel, but not gross receipts of such licensees, lessees or concessionaires),
determined in accordance with GAAP; provided, however, with respect to gaming activities at the
casino, GOR shall only include the net difference between gaming wins and gaming losses from
guests, occupants or users of the casino less any revenue recorded on account of Promotional
Allowances. GOR expressly excludes the following: (i) Taxes and utility and other charges
collectible from patrons, guests or other users or occupants of Hotel, with respect to businesses
conducted at the Hotel, or as a part of the sales price of any goods,

4

 

services or displays at the Hotel, in each case to the extent such Taxes and charges are paid
over to Governmental Authorities or other third Persons; (ii) receipts from the financing, sale or
other disposition of capital assets and other items not in the ordinary course of the Hotel
operations, and other extraordinary capital receipts, (iii) interest earned on bank accounts
maintained in connection with the Hotel, and income derived from securities and other property
acquired and held for investment; (iv) receipts in connection with any Condemnation; (v) proceeds
of any insurance; (vi) rebates, discounts or credits for any goods or services provided by Manager
(not including charge or credit card discounts, which shall not constitute a deduction from
revenues in determining Gross Operating Revenue); (vii) tips, gratuities and other service charges
paid to Hotel Personnel; (viii) recoveries in legal actions for tortious conduct or awards for
punitive damages; (ix) receipts from vending and similar machines to the extent such receipts are
paid over to the Persons owning such machines; (x) any security deposits refundable to Hotel
tenants, subtenants, licensees or concessionaires and any payments by such tenants, subtenants,
licensees or concessionaires for repairs and maintenance, except to the extent paid in
reimbursement of costs included in Operating Costs; (xi) investment tax credits or other income tax
benefits; (xii) amounts collected or received in connection with any signage placed on the Hotel by
Owner; and (xiii) any revenue recorded in connection with redemptions under the Boarding Pass
Program.

          “Hotel” means the real property, improvements and personalty constituting the Aliante
Station Casino + Hotel (including all assets used in connection with the hotel and gaming business
at such hotel).

          “Hotel Personnel” means all Individuals performing services in the name of the Hotel
at the Hotel, whether such Individuals are employed by Owner, Manager or an Affiliate of Owner or
Manager, including the Senior Executive Personnel.

          “Hotel Personnel Costs” means (i) all salaries paid to Hotel Personnel employed by
Manager or an Affiliate of Manager and (ii) all costs and expenses associated with the employment
or termination of all Hotel Personnel employed by Owner or an Affiliate of Owner, including
recruitment expenses, the costs of moving any such executive-level Hotel Personnel, their families
and their belongings to the area in which the Hotel is located at the commencement of their
employment at the Hotel, compensation and benefits (including the value of any equity based
benefits), employment Taxes, training expenses and severance payments, all in accordance with
Applicable Laws and such other policies as may be established pursuant to this Agreement.

          “Hotel Standard” means the standard and level of quality at which Manager or its
Affiliates have provided the Management Services with respect to the Hotel, and at which similar
services have been provided with respect to other properties operated or managed by Manager or its
Affiliates, during the Lookback Period.

          “Implied Fiduciary Duties” has the meaning set forth in Section 2.8(b).

          “Impositions” means all taxes (including but not limited to all hotel occupancy,
personal property, sales, use and real property taxes), assessments, water, sewer or other rents,
rates and charges, levies, license fees, permit fees, inspection fees, and any other authorization
fees and charges, which at any time may be assessed, levied, confirmed or imposed on or with
respect to the Hotel (including any portion or department thereof) or the furnishing, equipping,

5

 

use or operation thereof, but expressly excluding income, franchise or similar taxes imposed
on Owner and any taxes, assessments, rents, rates, charges, levies or fees imposed on Manager or
with respect to the Management Fee.

          “Incentive Management Fee” means, with respect to any period during the Operating Term
or (as applicable) the Transition Period, a fee payable to Manager in accordance with Section
9.2, which fee shall be in an amount equal to seven and one-half percent (7.5%) of EBITDA for
such period up to and including Seven Million Five Hundred Thousand Dollars ($7,500,000) and ten
percent (10%) of EBITDA for such period in excess of Seven Million Five Hundred Thousand Dollars
($7,500,000).

          “Individual” means a natural person, whether acting for himself or herself, or in a
representative capacity.

          “Initial Operating Term” means the period commencing on the Effective Date and
continuing for a period of five (5) years after the Effective Date.

          “Insurance Requirements” means all terms of each insurance policy and all orders,
rules, regulations and other requirements of the National Board of Fire Underwriters applicable to
the Hotel (including any portion or department thereof) or the construction, furnishing, equipping
or operation thereof, excluding recommendations of the insurance carriers.

          “Lender” means a Person providing any Financing or any designated agent on behalf of
Persons providing any Financing, as applicable.

          “License” has the meaning set forth in Section 8.7.

          “License Agreement” means that certain Station to Aliante License Agreement, dated as
of the Effective Date, by and between Manager, as licensor, and Owner, as licensee.

          “Lookback Period” means the twelve (12) month period prior to the Effective Date.

          “Management Fee” means collectively, the Base Management Fee and Incentive Management
Fee.

          “Manager” has the meaning set forth in the preamble.

          “Manager Confidential Information” has the meaning set forth in Section 6.2.

          “Manager Group Hotels” has the meaning set forth in Section 2.10.

          “Management Services” means (i) those management and operating services which are
reasonably necessary and advisable actions to operate the Hotel in accordance with the standards
set forth in Section 2.1 (including, subject to the terms of this Agreement, the
determination of operating policy, standards of operations, quality of service and maintenance and
physical appearance of the Hotel, the supervision and direction of advertising, sales and promotion
of the Hotel, and any other matters affecting Operation of the Hotel) and Shared

6

 

Services, (ii) those services specified on Schedule C, (iii) any other services that
were actually provided by or on behalf of Manager or any of its Affiliates for the benefit of Owner
during the Lookback Period, and (iv) all subtasks that are an inherent, necessary or customary part
of, or otherwise reasonably necessary for the proper performance of, any of the foregoing.

          “Monthly Debt Service Schedule” means any schedule provided by Owner to Manager from
time to time of all principal and interest payments due with respect to any Financing and the
method for calculating interest with respect to such Financing.

          “Monthly Reports” has the meaning set forth in Section 10.2.

          “Mortgage” means any real estate, leasehold or chattel mortgage, pledge, security
agreement, deed of trust, security deed or similar document or instrument encumbering the Hotel or
any part thereof, together with all promissory notes, loan agreements or other documents relating
thereto.

          “Net Income” shall mean, with respect to the Hotel, for any period, the consolidated
net income (or loss) (determined in accordance with GAAP) for such period, adjusted to exclude
(only to the extent included in computing such net income (or loss) and without duplication) all
gains or losses which are extraordinary (as determined in accordance with GAAP) and excluding any
goodwill, asset impairment or write-down of asset charges and any items excluded from Gross
Operating Revenue in the definition of such term above.

          “Non-Recourse Parties” has the meaning set forth in Section 17.20.

          “Operate”, “Operating” or “Operation” means to manage, operate, use,
maintain, market, promote, and provide other management or operations services to the Hotel, all as
more particularly described in this Agreement.

          “Operating Assets” has the meaning set forth in Section 2.6(b).

          “Operating Costs” has the meaning set forth in Schedule A hereto.

          “Operating Reports” has the meaning set forth in Section 10.3.

          “Operating Term” means the Initial Operating Term, together with any Renewal Term, as
applicable.

          “Operating Year” means each calendar year during (i) the Operating Term and (ii) for
so long as Manager is required to provide Management Services hereunder, the Transition Period,
except that the first Operating Year shall be a partial year beginning on the Effective Date and
ending on the following December 31, and if the date on which Manager is no longer required to
provide Management Service hereunder is a date other than December 31 in any year, then the last
Operating Year shall also be a partial year commencing on January 1 of the year in which such date
occurs and ending on such date.

          “Owner” has the meaning set forth in the preamble.

7

 

          “Owner Confidential Information” has the meaning set forth in Section 6.1.

          “Owner Termination Amount” means (i) all fees, expenses and other amounts that may
have accrued as of the effective date of Owner’s termination of this Agreement and (ii) if and when
the same would have been due and payable under this Agreement if this Agreement had not been
terminated early, all fees that would otherwise be due and payable under this Agreement for the
unexpired portion of the first year of the Initial Operating Term based on the projections set
forth in the Annual Budget for such year; provided, however, that the fees described under clause
(ii) of this definition will be credited against the amount of the fees, expenses and other amounts
to be earned by Manager for its services during the Transition Period.

          “Owner’s Expenses” has the meaning set forth in Section 9.3.

          “Party” means each of Manager and Owner.

          “Person” means an Individual and/or Entity, as the case may be.

          “Project Manager” has the meaning set forth in Section 2.9.

          “Promotional Allowances” are goods and services, such as complimentary food,
beverages, entertainment and parking, given to customers of the Hotel as an inducement to gamble at
the Hotel.

          “Proprietary Rights” has the meaning set forth in Section 3.3.

          “Quarterly Reports” has the meaning set forth in Section 10.3.

          “Renewal Term” shall have the meaning set forth in Section 8.2.

          “Restructuring Agreement” has the meaning set forth in the preamble.

          “ROI Capital Improvements” means all alterations, improvements, replacements, renewals
and additions of or to the Hotel that are capitalized under GAAP and involve a material change in
the primary use of, or a material physical expansion or alteration of, the Hotel (including adding
or removing guest rooms or meeting rooms, or changing the configuration of the Hotel).

          “Routine Capital Improvements” means all maintenance, repairs, alterations,
improvements, replacements, renewals and additions of or to the Hotel (including replacements and
renewals of FF&E and Supplies, exterior and interior painting, resurfacing walls and floors,
resurfacing parking areas and replacing folding walls) that are capitalized under GAAP and not
depreciated as real property. For avoidance of doubt, Routine Capital Improvements expressly
exclude Building Capital Improvements and ROI Capital Improvements.

     “Security Interest” means any security interest, collateral assignment, pledge or
similar document or instrument that encumbers any assets relating to the Hotel (or any portion
thereof or interest therein) that constitutes a personal property interest (including all Supplies

8

 

located at or used in the Operation of the Hotel and Owner’s rights under this Agreement).

          “Senior Executive Personnel” means the Individuals employed from time to time in the
positions listed on Schedule B, or serving such functions, regardless of the specific
titles given to such Individuals.

          “Services” means the Management Services, together with the Transition Services and
any additional services to be provided by Manager to Owner that the Parties mutually agree upon
during the Transition Period.

          “Shared Expenses” has the meaning set forth in Schedule A.

          “Shared Services” has the meaning set forth on Schedule D.

          “Station IP” means the “Licensed IP” (as defined in the License Agreement).

          “Sub-Accounts” has the meaning set forth in Section 15.1.

          “Successor Owner” means any successor owner of the Hotel.

          “Supplies” means all Operating Supplies and equipment used in the Operation of the
Hotel.

          “Taxes” means all taxes, assessments, duties, levies and charges, including ad valorem
taxes on real property, personal property taxes, gaming taxes, fees and charges and business and
occupation taxes, imposed by any Governmental Authority against Owner or the Hotel in connection
with the ownership or Operation of the Hotel, but expressly excluding income, franchise or similar
taxes imposed on Owner.

          “Third-Party Agreement” means any agreement between Manager or any of its Affiliates,
on the one hand, and any third party, on the other hand, that is related to, or used in connection
with, the provision of the Services.

          “Third-Party Managers” has the meaning set forth in Section 11.11(b).

          “Third-Party Operated Areas” has the meaning set forth in Section 11.11(b).

          “Transition Period” has the meaning set forth in Section 2.2.

          “Transition Services” has the meaning set forth in Section 2.2.

ARTICLE 2

SERVICES

     2.1 Provision of Management Services. On and subject to the terms and conditions of
this Agreement, from and after the Effective Date until the termination of this Agreement, Owner
hereby grants to Manager, and Manager accepts, the sole and exclusive right and authority during
the Operating Term to supervise, direct and control the management,

9

 

operation and promotion of the Hotel, as the agent of Owner, in accordance with the Hotel
Standard. Manager shall Operate the Hotel and provide the Management Services to Owner in
accordance with the Hotel Standard. In addition, Manager shall provide all Management Services
which constitute Shared Services in a first-class manner and on terms which are not less favorable
than those on which similar services are then provided at any other properties owned or managed by
Manager or its Affiliates. In the performance of its obligations under this Agreement, Manager
shall Operate the Hotel for the account and benefit and in the best interest of Owner and in
accordance with this Agreement. In furtherance of the foregoing grant of authority, Manager shall
(subject to the rights of Owner, the limitations and restrictions on Manager, and Manager’s
compliance with the terms and covenants contained in this Agreement and the Annual Budget) have
authority, control and discretion in the management and operation of the Hotel, without
interference, or disturbance in all operating matters.

2.2 Scope of Authority. Without limiting the generality of Section 2.1, Owner’s
grant of authority to Manager pursuant to Section 2.1 shall specifically include the
exclusive power and authority, subject to and consistent with the provisions of this Agreement
(including Sections 2.5 and 11.5 and any other rights of Owner and limitations on Manager’s
authority and duty hereunder), to:

     (a) determine the terms of admittance, charges for rooms and commercial space, charges
for entertainment, charges for use of facilities, food and beverages, which rights shall
specifically allow Manager to charge varying rates to different customers or groups of
customers and allow Manager, in its reasonable discretion and consistent with industry
custom, to permit persons to occupy rooms or suites at the Hotel at rates lower than
published rates or free of charge or permit persons to dine at the restaurants or lounges
located at the Hotel free of charge;

     (b) establish credit policies (including arrangements with credit card organizations
and catering operations);

     (c) arrange for all phases of advertising, promotion and publicity relating to the
Hotel;

     (d) arrange for, and establish policies concerning, the receipt, holding and
disbursement of funds, the establishment and maintenance of bank accounts and appropriate
records management and retention, the procurement of inventories, supplies and services and
generally all activities necessary for the operation and management of the Hotel;

     (e) supervise and purchase, or arrange for the purchase of, all FF&E, Operating
Supplies, Operating Consumables and other goods and services as are necessary to Operate the
Hotel;

     (f) negotiate and enter into such reasonable contracts, leases, licenses, arrangements,
concessions and other agreements for any hotel operations, parking, restaurant, bar, or food
service operations, retail space, or any other commercial operation in or about the Hotel in
the name of Owner, and as an Operating Cost, as Manager

10

 

reasonably deems necessary or advisable in connection with the operation of the Hotel,
it being agreed that every such contract, lease, license, arrangement, concession or other
agreement for the Hotel shall be entered into in Owner’s name and, if for more than one
year, shall be executed by Owner;

     (g) use commercially reasonable efforts to perform, as Owner’s representative, the
obligations of Owner, as landlord, licensor, or concessionaire, under leases, licenses, and
contracts made or granted with respect to the Hotel;

     (h) use commercially reasonable efforts to collect income of any nature from the Hotel,
including all rents and other sums collectible under leases, licenses, or contracts made or
granted with respect to the Hotel;

     (i) subject to Section 11.6, hire, promote, discharge, supervise, train and
determine the terms of employment for the Senior Executive Personnel and, through them, all
other Hotel Personnel for operating, service, administrative, restaurant, bar and food
service positions;

     (j) institute, prosecute, and settle, in its name or (if necessary) in the name of
Owner, any and all legal actions or proceedings required to collect charges, rent or other
income for the Hotel, to dispossess guests, tenants or other persons in possession
therefrom, or to cancel or terminate any lease, license or concession agreement, and Owner
shall cooperate with Manager in connection therewith, it being acknowledged and agreed that
(a) Manager shall promptly notify Owner of legal disputes for which a summons, complaint, or
other correspondence from an attorney has been received, and shall promptly forward notice
of any such claims to the appropriate insurer, and (b) Owner shall be notified promptly
regarding any proceedings involving union disputes or collective bargaining;

     (k) perform all such acts in and about the Hotel, in the name of Owner, as shall be
necessary to comply with Applicable Laws; provided, however, that (a) if Owner shall
adequately defend and indemnify and hold Manager harmless against any claim, loss, cost,
damage or expense arising out of or in connection therewith (but not arising out of
Manager’s willful misconduct, gross negligence or breach hereunder), Owner shall have the
right to contest the validity of any Applicable Law if such contest shall not result in
suspension of operation of the Hotel, and (b) subject to the foregoing indemnity, Owner may
postpone compliance with any such Applicable Law to the extent and in the manner provided by
law until final determination of such Applicable Law, unless the failure to promptly comply
with any such Applicable Law would result in the imminent suspension of operations of the
Hotel or expose Owner or Manager, or any of their employees to the threat of criminal
liability;

     (l) cause appropriate officers and employees of Manager to visit and inspect the Hotel
and the operation thereof with reasonable frequency, and in any event no less frequently
than once every 90 days;

11

 

     (m) subject to Schedule F, provide the Hotel with such advertising, public
relations, and promotional services as are judged by it to be reasonably necessary and
appropriate in order to promote the name and facilities of the Hotel including, but not
limited to, providing assistance in the following areas:

	 	(i)	 	developing and implementing the Hotel’s
individual marketing plan following Manager’s guidelines with Owner’s
input and consultation, including planning, publicity and internal
communications, and organizing and budgeting the Hotel’s advertising
and public relations programs;

	 	(ii)	 	selecting and providing guidance as required
for the public relations personnel;

	 	(iii)	 	preparing and disseminating news releases for
trade and consumer publications, both national and international, it
being agreed that Owner and Manager shall coordinate with one another
on all public statements, whether written or oral and no matter how
disseminated, regarding their contractual relationship as set forth in
this Agreement and/or the performance by either of them of their
respective obligations hereunder; and

	 	(iv)	 	selecting an advertising agency, if any; and

     (n) coordinate the Hotel’s marketing program with Manager’s corporate marketing program
and include the Hotel in the same as appropriate.

     2.3 Transition Services. (1) At Owner’s election, exercisable at any time by written
notice to Manager, Manager shall continue to Operate the Hotel in order to minimize any potential
disruption to the Operation of the Hotel and facilitate the orderly transition of its operations to
a third party for a period of up to three hundred sixty-five (365) days following the effective
date of termination of this Agreement (the “Transition Period”); provided, however, that
Owner shall have the right to (i) terminate the Transition Period at any time on notice to Manager
of not less than thirty (30) days (or such shorter period as shall be necessary or advisable in
Owner’s sole, exclusive and nonreviewable discretion to prevent an adverse effect on any License of
Owner) and (ii) extend the Transition Period for an additional one hundred eighty (180) days if
Owner has not secured the requisite Approvals to permit Owner or a replacement manager to continue
to Operate the Hotel in a manner consistent with past practices. In addition to providing the
Management Services and provided that Owner pays the applicable Management Fees to Manager in
accordance with Article 9, Manager shall cooperate with Owner and the Successor Owner in
transitioning management of the Hotel to a replacement manager as described below by providing the
following services (the “Transition Services”) during the applicable Transition Period:

     (a) Promptly upon a request by Owner, or in any event at the end of the Transition
Period, Manager shall assign and deliver (and cause its Affiliates to assign and

12

 

deliver) to Owner or its designee all material permits, licenses, contracts and other
instruments relating to the Hotel which are in the name of Manager and/or any of its
Affiliates;

     (b) Promptly upon a request by Owner, or in any event at the end of the Transition
Period, Manager shall deliver (and cause its Affiliates to deliver) to Owner or its designee
all books and records relating exclusively to the Hotel, subject to the provisions of
Section 3.3;

     (c) Manager shall facilitate (and cause its Affiliates to facilitate) Owner’s efforts
to obtain all regulatory and other Approvals in connection with the Operation of the Hotel
(including the gaming components);

     (d) Manager shall facilitate (and cause its Affiliates to facilitate) the
implementation of such operational and systems changes as may be reasonably necessary to
permit the Hotel to operate as a stand-alone unit without continued reliance on any
centralized services provided by Manager or its Affiliates;

     (e) Manager hereby irrevocably consents (on behalf of itself and its Affiliates),
following Owner’s engagement of a replacement manager or commencement of self-managing of
the Hotel, to the extension by Owner or the Successor Owner of an offer of employment to any
person who (i) provides services exclusively to the Hotel, and (ii) is not a party to an
employment contract with Manager or its Affiliates;

     (f) Following Owner’s engagement of a replacement manager or commencement of
self-managing of the Hotel, Manager (i) shall cooperate with Owner or such replacement
manager in connection with the collection of any outstanding receiveables and remit to Owner
or such replacement manager any amounts collected directly by Manager with respect to such
receivables and (ii) if Owner’s share of premiums under any insurance policies maintained
through any group insurance program administered by Manager and its Affiliates shall have
been paid in advance, cause any unused portion thereof to be refunded to Owner;

     (g) Manager shall take and shall cause its Affiliates to take (subject to reimbursement
of Manager’s or its Affiliates’ Shared Expenses (or allocable portion thereof, as
applicable) and Actual Cost for doing so) such other and further preparatory steps as may be
reasonably requested by Owner to be performed by Manager or its Affiliates while Transition
Services are being provided to Owner by such entity or entities as may be reasonably
required to facilitate the continuation of operations from and after the Effective Date; and

     (h) Manager shall reasonably cooperate (and shall cause its Affiliates reasonably to
cooperate) with Owner and the Successor Owner in carrying out a transition to a replacement
manager of the Hotel (including (i) providing such transition-related cooperation and
assistance that has not been historically provided by Manager but that is reasonably
necessary to effect a transition to a replacement manager of the Hotel and that is within
the capabilities of Manager or its Affiliates to provide using

13

 

commercially reasonable efforts and (ii) performing such transition-related tasks, in
such manner, as may be reasonably requested by Owner), subject to limitations on Manager’s
and its Affiliates’ obligations to provide certain information to any such successor manager
as set forth in Section 3.3.

               (2) Notwithstanding anything contained herein to the contrary, upon Owner’s engagement of a
replacement manager or commencement of self-managing of the Hotel, (i) Manager will no longer be
responsible for provision of the Management Services and instead will provide only the
Transition Services during the remaining portion of the Transition Period (as the same may be
extended or terminated as hereinabove provided in this Section 2.2) and (ii) the
Management Fee payable to Manager shall be deemed to include only the Base Management Fee.

     2.4 Additional Provisions During Transition Period.

     (a) Migration, Segregation and Consulting Services. Manager shall (and shall cause
its Affiliates to), until the termination of the Transition Period, reasonably cooperate with Owner
and the Successor Owner in carrying out a transition to a replacement manager of the Hotel, subject
to limitations on Manager’s or its Affiliates’ obligations to provide information to any such
successor manager as set forth in Section 3.3.

     (b) Requests for Modification. During the Transition Period, Owner may propose but
may not require (a) modifications or improvements to the Services to address any deficiency
therein, including to reflect changes in Applicable Law, or (b) reasonable changes to the scope of
the Services hereunder that are reasonably related to the then-current scope of the Services or
reasonably required to accomplish the transition of the management of the Hotel to a replacement
manager of the Hotel; provided, however, that nothing in this Section
2.4(b) shall relieve Owner of its obligations to make any payments otherwise required pursuant
to Article 9. Notwithstanding the foregoing, Manager and its Affiliates shall not have any
obligation to modify, upgrade, improve, or otherwise change any computer hardware systems or
software (including code and data), except as expressly contemplated herein.

     2.5 Matters Requiring Owner Approval. Notwithstanding the grant of authority given to
Manager in this Agreement, and without limiting any of the other circumstances under which Owner’s
approval is specifically required under this Agreement, Manager shall not take or permit any of the
following actions without Owner’s prior written approval (which shall be deemed to have been given
if Owner has approved an Annual Budget that specifically contemplates the matter in question):

     (a) Settle any claim, (i) regardless of the amount, admitting intentional misconduct or fraud,
or (ii) arising out of the of the Hotel which involves an amount in excess of $50,000, adjusted by
CPI.

     (b) Prosecute or defend any claim arising out of the Operation of the Hotel (except to
dispossess guests) which involves an amount in excess of $50,000, adjusted by CPI, that is not
covered by insurance or as to which the insurance company denies coverage or “reserves rights” as
to coverage; it being agreed that (i) any counsel to be engaged to prosecute or defend

14

 

any such claim shall also require Owner’s approval and (ii) Owner shall have the right to
elect, by written notice to Manager, to control any such prosecution or defense;

     (c) Execute any lease or other contract having a term in excess of one year unless the
contract is terminable within one year from the date of its execution and at any time thereafter
without cause and without premium or penalty upon not more than 30 days’ prior notice;

     (d) Execute any equipment lease (or series of leases relating to the same or similar
equipment) or other lease, license or contract (or series of contracts relating to the same or
similar property, goods or services) that requires aggregate annual payments in excess of $50,000,
adjusted for CPI, other than leases, licenses or contracts which are set forth in the Annual
Budget;

     (e) Other than trade payables incurred in accordance with this Agreement and other obligations
expressly authorized hereunder, borrow any money, or incur indebtedness or issue any guaranty in
respect of borrowed money, or issue any indemnity or surety obligation, in the name or on behalf of
Owner;

     (f) Grant or create any lien or security interest on the Hotel or any part thereof or interest
therein;

     (g) Sell or otherwise dispose of the Hotel or any part thereof or interest therein, including
FF&E, except for the sale of inventory and the disposal of obsolete or worn-out or damaged items,
each in the ordinary course of business, or as contemplated in the Annual Budget;

     (h) Except as directed by Owner or included in the Capital Budget, commence any ROI Capital
Improvements, Routine Capital Improvements or Building Capital Improvements;

     (i) Hire or replace any Individual for a Senior Executive Personnel position; provided that
(i) Owner approves for each of such positions the Individual serving in such position as of the
Effective Date, as set forth on Schedule B, (ii) Owner shall be deemed to have approved the
appointment of any Individual for a Senior Executive Staff position unless Owner delivers notice of
its disapproval of such appointment within five (5) business days after Owner has received a resume
or written summary of such Individual’s professional experience and qualifications and a reasonable
opportunity to interview such Individual, and (iii) Owner may not reject more than three (3)
consecutive candidates which Manager, in its reasonable judgment, determines are qualified to fill
any Senior Executive Personnel position based, at a minimum, on the fact that such candidate has
experience performing the functions anticipated to be performed by such candidate in such position;

     (j) Submit, settle, adjust or otherwise resolve any casualty insurance claim related to the
Hotel involving losses or casualties in excess of $50,000, adjusted by CPI;

     (k) Enter into any contract or transaction with an Affiliate of Manager relating to the Hotel
except for any delegation to an Affiliate of services to be provided by Manager hereunder that does
not result in additional fees or charges payable by Owner and does not

15

 

release Manger from any of its obligations hereunder, or as otherwise expressly provided for
in this Agreement;

     (l) Initiate or settle any real or personal property tax appeals or claims involving property
of Owner, unless directed by Owner;

     (m) Acquire any land or interest in land in the name of Owner;

     (n) Consent to any condemnation relating to the Hotel;

     (o) File with any Governmental Authority any federal or state income tax return applicable to
Owner;

     (p) Develop or implement policies, strategies or plans regarding (i) the negotiation of
collective bargaining, recognition, neutrality or other material labor agreements involving Hotel
Personnel, (ii) lobbying efforts with respect to matters affecting the Hotel; or (iii) the issuance
of press releases or public statements regarding labor or political matters; and/or

     (q) Challenge or protest any Applicable Law affecting the Hotel.

     2.6 Cooperation with Asset Manager. Manager shall continuously share all relevant
information and results pertaining to the Hotel with the Asset Manager. Without limiting the
foregoing, Manager shall provide the Asset Manager with access to (i) the Hotel (including the
Senior Executive Personnel and the other Hotel Personnel); (ii) the executive officers of Manager;
and (iii) the books and records and any other information or data pertaining to the Hotel, in each
case so long as such access does not unreasonably interfere with Manager’s ability to Operate the
Hotel. Manager shall meet with the Asset Manager weekly and the board of directors of Owner
monthly to discuss the Operating Report for the prior month and other matters pertaining to the
Hotel. Except as otherwise set forth below in this Section 2.4, Asset Manager shall have
no authority to make final decisions on behalf of Owner with respect to operating plans and budgets
or any other matters pertaining to the Hotel. Notwithstanding the foregoing, in the event that
Owner delivers written notice to Manager that the Asset Manager has the right, on behalf of Owner,
to make final decisions or approvals with respect to certain matter(s) under this Agreement,
Manager may conclusively rely on, and shall be protected from acting or refraining from acting on,
any instruction or direction of the Asset Manager with respect to such matter(s) designated by
Owner in such written notice.

     2.7 Limitations on Manager’s Duties. Notwithstanding any obligation imposed upon Manager
pursuant to any other provision of this Agreement:

     (a) No Representations. Owner acknowledges and agrees that Manager is not making any
representation, warranty or claim that the operation of the Hotel will necessarily be profitable or
that any budgets, forecasts, or projections will be achieved; provided that nothing in this
Section 2.7(a) shall relieve Operator of its obligation to Operate the Hotel and provide
the Services in accordance with the provisions of this Agreement.

     (b) Manager Not Liable for Recommendations. Owner acknowledges and agrees that (a) Manager
is not an architect, contractor, engineer, insurance, loan or real estate broker,

16

 

attorney, CPA, or other licensed professional, and (b) all matters to be submitted by Owner or by
the applicable professional to Manager for review, consent, advice, recommendations, assistance or
approval hereunder will be presumed to have been competently prepared by such professionals.
Accordingly, although Manager will offer such assistance and make such recommendations hereunder as
it deems appropriate, Manager shall not be responsible to Owner or any third party with respect to
construction means, supplies, methods, techniques, sequences, and procedures employed by Owner or
its consultants or contractors, nor shall Manager be responsible or liable for the adequacy or
quality of the plans and specifications (or any samples or shop drawings), contracts, or other
matters prepared by Owner, its consultants, or any contractors, or with respect to the adequacy or
quality of the Hotel or its construction or the ultimate cost of the Hotel; nor shall Manager be
responsible or liable for advising Owner or its consultants of any Applicable Laws, including but
not limited to permit or licensing requirements, or Insurance Requirements. Except in the case of
willful misconduct, gross negligence or breach on the part of Manager hereunder, no
recommendations, advice or approvals given, or inspections made, by Manager hereunder shall be
construed to create any such responsibility or liability.

     2.8 Relationship and Limitation on Fiduciary Duties.

     (a) Nature of Relationship. The relationship between the parties hereto shall be that of
principal, in the case of Owner, and agent, in the case of Manager. Nothing contained in this
Agreement shall constitute, or be construed to constitute or create, a partnership, joint venture
or similar relationship between Owner and Manager with respect to the Hotel. This Agreement is for
the benefit of Owner and Manager and shall not create third-party beneficiary rights. Consistent
with the foregoing, the Parties acknowledge and agree that, in all aspects of Operating the Hotel,
including entering into contracts, accepting reservations, and conducting financial transactions
for the Hotel, (i) Manager acts on behalf of and as agent for Owner and assumes no independent
contractual liability to third parties and (ii) Manager shall have no obligation to extend its own
credit with respect to any obligation incurred in Operating the Hotel or performing its obligations
under this Agreement.

     (b) Agreement to Define Scope of Duties. It is the intent and desire of the Parties that
any liability between them shall be based solely on general principles of contract law and the
express provisions of this Agreement, without regard to the common law principles (or any statutory
principles) of agency (except as expressly provided for in this Agreement). Accordingly, the
Parties acknowledge and agree that (a) the terms and provisions of this Agreement and the duties
and obligations specifically set forth herein are intended to satisfy any fiduciary duties which
may exist between the Parties, and (b) to the extent any fiduciary duties or other
extra-contractual duties that might otherwise exist or be implied for any reason whatsoever,
including without limitation those resulting from the principal-agent relationship between the
Parties, are inconsistent with, or would have the effect of modifying, limiting or restricting, the
express provisions of this Agreement, the terms of this Agreement shall prevail. The Parties
further acknowledge and agree that the foregoing is intended as, and shall be construed as, an
express and knowing waiver of any and all duties of loyalty, good faith, fair dealing, care, and
full disclosure, and any other duty that might now or in the future be deemed to exist under the
common law principles (or any statutory principles) of agency (collectively, the “Implied
Fiduciary Duties”), except in each case, for duties expressly set forth in this Agreement and

17

 

except for the ordinary covenant of good faith and fair dealing implied in all contracts under
general principals of contract law. The Parties also hereby unconditionally and irrevocably waive
and release any right, power or privilege either may have to claim or receive from the other party
any punitive, exemplary, statutory, or treble damages or any incidental or consequential damages,
whether with respect to any breach of the Implied Fiduciary Duties or otherwise. Both Parties
acknowledge that they are experienced in negotiating agreements of this sort, have had the advice
of counsel in connection herewith, and have been advised as to, and fully understand, the nature of
the waivers contained in this Section 2.8(b).

     (c) Waiver of Implied Fiduciary Duties; Consent to Manager Actions. In furtherance of, and
without limiting the generality of, Section 2.8(b), Owner specifically consents to, and
waives any Implied Fiduciary Duties (subject to the exceptions therefrom contained in Section
2.8(b)) that Manager may owe to Owner in connection with, any transactions or conduct by
Manager and its Affiliates authorized by this Agreement, in each case subject only to any express
limitations set forth in this Agreement. Owner acknowledges and agrees that its consent to the
transactions and conduct by Manager described in this Agreement, and its waiver of any Implied
Fiduciary Duties (subject to the exceptions therefrom contained in Section 2.8(b))
otherwise owed by Manager: (i) has been obtained by Manager in good faith; (ii) is made knowingly
by Owner based on its adequate informed judgment as a sophisticated party after seeking the advice
of competent and informed counsel; and (iii) arises from Owner’s knowledge and understanding of the
specific transactions and actions or inactions of hotel operators that are normal, customary, and
reasonably expected in the hotel industry generally for hotels similar to the Hotel.

     2.9 No Pledge of Credit by Owner. Owner shall not pledge Manager’s credit nor shall Owner,
in the name of or on behalf of Manager, borrow any money or issue any promissory notes or bills of
exchange or any other financial obligation.

     2.10 Other Hotels. Subject to the provisions of Section 2.6(c) and Manager’s
obligation to operate the Hotel in compliance with the standards and other provisions set forth in
this Agreement, Owner acknowledges that (i) Manager is currently managing other hotels and may in
the future undertake to manage additional hotels, (ii) it has selected Manager for the supervision,
direction, control, management and operation of the Hotel in part because of Manager’s management
and operation of the Manager Group Hotels and the benefits which Owner expects to derive by
including the Hotel as part the group of hotels managed by Manager and/or its Affiliates
(“Manager Group Hotels”), and (iii) the hotels in the Manager Group Hotels compete with one
another and conflicts may, from time to time, arise between the Hotel and other Manager Group
Hotels, and all of such circumstances are contemplated herein and none of them constitute a breach
of Manager’s obligations hereunder; provided that Manager shall undertake to minimize conflict and
proceed in a good faith manner intended to maximize the long-term profitability of the Hotel.
Neither Manager (or its Affiliates) nor Owner will be subject to any restrictions on the
geographical areas within which it (or they) may elect to conduct marketing activities for its (or
their) respective owned or managed properties, subject to the marketing restrictions and protocols
set forth in Schedule F.

18

 

     2.11 Transfer of Assets and Data.

          (a) Transfer of Owner Property. If Manager or any of its Affiliates is in possession
or control on the Effective Date of any property owned by Owner, then upon the execution and
delivery of this Agreement Manager shall turn over (or cause such Affiliates to turn over, as
applicable) all such property to Owner.

          (b) Transfer of Certain Assets Owned by Manager or its Affiliates. Upon execution and
delivery of this Agreement, Manager shall transfer (and shall cause its Affiliates to transfer) to
Owner all ownership interests of Manager and its Affiliates in any property or assets owned by
Manager or its Affiliates that relate to and are associated exclusively with Owner or the Hotel,
which may include, but not be limited to: (A) the trademarks which are used exclusively at
the Hotel, and (to the extent assignable) licenses to use trademarks which are owned by third
parties (other than Manager or its Affiliates) and used non-exclusively at the Hotel; (B) those
contracts, warranties, non-proprietary operating software, and other equipment operating records
that are used exclusively at the Hotel, subject in all cases to the limitations (including
with respect to non-delivery of trade secrets or proprietary software) set forth in this Agreement;
(C) any prepaid goods, services or premiums that are exclusively for the use or benefit of
the Hotel; and (D) to the extent assignable, any tangible personal property, including all computer
hardware and non-proprietary software necessary to access and use the electronic records owned or
being acquired by Owner hereunder, that is used exclusively in the operation of the Hotel
(all of the foregoing, collectively, the “Operating Assets”). Manager represents and
warrants to Owner that there is no inventory or equipment owned by Manager or its Affiliates which
is stored at, but is not in use and not contemplated by Manager or its Affiliates or Owner to be
used by, the Hotel. Manager shall allow (and cause its Affiliates to allow) Owner to use the
Operating Assets, at no cost and expense and without any license fee to Manager or its Affiliates,
in the Operation of the Hotel, from and after the Effective Date until Owner has taken title to the
Operating Assets, and Manager and its Affiliates shall maintain and not remove any Operating Assets
from the Hotel, other than to replace worn, obsolete, damaged or defective Operating Assets with
suitable replacements therefor in the ordinary course of business.

          (c) Data. As promptly as possible after the Effective Date (but in no event more than
five (5) days after the Effective Date), to the extent not heretofore transferred to Owner, Manager
shall transfer (and cause each of its Affiliates to transfer) to Owner its interest in all
Exclusive Hotel Data. Manager and/or its Affiliates, as the case may be, (A) shall not, during the
Operating Term and/or the Transition Period, make any use of Exclusive Hotel Data or Operating
Assets for any reason other than to provide Services hereunder and shall be expressly prohibited
from using such Exclusive Hotel Data in connection with any business operations or properties other
than the Hotel, and (B) at the conclusion of the Transition Period, shall delete all copies of
Exclusive Hotel Data from Manager’s and its Affiliates’ systems and databases (and shall provide a
certification from an officer of Manager and/or its Affiliates that such Exclusive Hotel Data has
been deleted) and shall not make any further use of such Exclusive Hotel Data. Manager’s and its
Affiliates’ obligation to transfer such Exclusive Hotel Data is absolute and unconditional,
regardless of whether any Services are performed or paid for pursuant to this Agreement. During
the Operating Term and the Transition Period, the Exclusive Hotel Data shall be stored and
continuously updated in a manner satisfactory to Owner. Promptly upon a request by Owner at any
time, Manager shall provide the Exclusive Hotel Data to Owner in such form and by such means as may
be requested by Owner so as to permit Owner (or any successor manager or designee of Owner) to
store, update and use the Exclusive Hotel

19

 

Data to the same extent and in the same manner as it was stored, updated and used by Manager.
For the avoidance of doubt, neither Manager nor its Affiliates, as the case may be, shall be
required to delete any aggregate customer or player data or information generated by, or contained
in, the Boarding Pass Program (including all account balance history or status level information),
and such data and information shall remain the sole property of Manager and/or its Affiliates;
provided, however, that Manager shall (and shall cause its Affiliates to) remove
and delete any identifiable or traceable Exclusive Hotel Data, from the Boarding Pass Program. For
avoidance of doubt, no account balance history, status level, or redemption history information
will be deleted for any customer in the Boarding Pass Program, nor shall Manager or its Affiliates
be required to delete any such information.

     2.12 Third-Party Agreements. Manager shall, upon the request of Owner or the
Successor Owner, provide Owner or the Successor Owner reasonable assistance in identifying and
contacting third-party licensors, vendors and providers of goods or services under Third-Party
Agreements.

     2.13 Project Managers. Each of Manager (for the Operating Term and Transition Period)
and Owner (for the full Transition Period) shall designate a project manager, who shall serve as
that Party’s principal representative with respect to all issues relating to the Services (each, a
“Project Manager”). Each Party may change its Project Manager by written notice to the
other Party. Owner’s Project Manager may also be the Asset Manager.

ARTICLE 3

USE OF CERTAIN INTELLECTUAL PROPERTY

     3.1 Temporary Non-Exclusive License to Use Station IP. The Parties acknowledge that
Owner has a temporary, non-exclusive, royalty-free license to use the Station IP during the
Operating Term and the Transition Period, pursuant and subject to the License Agreement.

     3.2 Intentionally Omitted.

     3.3 Excluded Property; Centralized Services. Except as otherwise provided in
Section 2.6(c) or elsewhere in this Agreement, Manager shall not be required to, directly
or indirectly, provide to Owner any information, data or inspection of any of the following which
is used both at the Hotel and at other properties managed by Manager or its Affiliates, as
applicable, and not used at properties which are not so managed, all of which is and shall remain
property of Manager or its Affiliates, as applicable: proprietary operating practices; proprietary
software; trade secrets; proprietary player tracking systems (including the Boarding Pass Program);
brand-wide customer promotions; employee compensation (unless Owner is responsible for paying all
or any part of the same) or other similar competitive information (the rights of Manager and its
Affiliates to any of the foregoing, “Proprietary Rights”). Except to the extent (a)
required in order for Manager to perform its obligations under this Agreement to provide Services
to Owner, or (b) expressly provided in this Agreement or the License Agreement, Owner shall not
have any use of or rights in any trademarks (including any Licensed Marks (as defined in the
License Agreement)), other intellectual property, general intangibles,

20

 

player tracking or reservation services used by Manager in connection with the management of
the Hotel, all of which shall remain the sole property of Manager or its Affiliates, as applicable.
Without limiting Manager’s obligations to provide Exclusive Hotel Data under Section
2.6(c) and to provide the Services (including Shared Services), Owner agrees that neither
Manager’s obligations under Section 2.2, nor Manager’s obligations to provide Services
creates in favor of Owner any rights in, and Owner shall not at any time have any rights in, use of
or access to the Boarding Pass Program, any other customer-affinity programs operated by Manager
and/or its Affiliates, any brand-wide promotions operated by Manager and/or its Affiliates, any
brand-wide progressive games operated by Manager and/or its Affiliates, or any other proprietary
promotions or systems, that are used commonly by other hotels and casinos operated by Manager
and/or its Affiliates and are not used by hotels and casinos which are not so operated; provided,
however, that (i) Owner may, at its election, continue to participate in the Boarding Pass Program
during the Operating Term (and, if Owner so elects, Manager and/or its Affiliates shall make the
Boarding Pass Program available throughout the applicable Transition Period or such shorter period
that Owner requests), and (ii) during the Operating Term and, at Owner’s election, during the
Transition Period, the Hotel shall participate in the sharing of services designated as Shared
Services in accordance with Schedule D.

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF MANAGER

     Manager represents and warrants to Owner as follows:

     4.1 Power and Authority. Manager has the requisite corporate power and authority to
execute and deliver this Agreement and to provide the Services, whether by itself or through
authorized service providers. All corporate action on the part of Manager necessary to approve or
to authorize the execution and delivery of this Agreement and the performance of the transactions
contemplated hereby to be performed by it has been duly taken. This Agreement is a valid and
binding agreement enforceable against Manager in accordance with its terms, subject to the effect
of principles of equity and the applicable bankruptcy, insolvency or other similar laws, now or
hereafter in effect, affecting creditors’ rights generally and other customary qualifications.

     4.2 Non-Infringement. The software, assets, processes and procedures used by Manager
to provide the Services do not and will not infringe, or constitute an infringement or
misappropriation of, any intellectual property rights of any third party. Without limiting Owner’s
remedies, if any such software, asset, process or procedure becomes, or is, in Manager’s reasonable
opinion, likely to become, the subject of any claim of infringement or misappropriation of
intellectual property rights of a third party, Manager may, at Manager’s option and expense,
either: (a) modify the Services so as not to so infringe or misappropriate while continuing to
serve the same purpose; or (b) obtain the right to use such software, asset, process or procedure.

     4.3 Passthrough. Manager shall pass through to Owner or the Successor Owner the
benefits of any indemnifications and warranties made by third parties in Third-Party Agreements to
the fullest extent that Manager is permitted to do so under such Third-Party Agreements.

21

 

     4.4 Completeness. Manager intends that the Management Services shall constitute all
services that have been provided by Manager or its Affiliates or its or its Affiliates’ service
providers or designees to the Hotel during the Lookback Period. In the event that during the
Transition Period either Party discovers any service that Manager or its service providers or
designees periodically provides in the ordinary course of business and such service was last
periodically provided prior to the Lookback Period that is reasonably necessary for the operation
or management of the Hotel (e.g., assistance with periodic tax returns or regulatory filings) and
that has not been replaced or superseded by new or modified services or suspended across Manager’s
and its Affiliates’ owned or managed properties generally, the Management Services shall, at
Owner’s election and notice, be automatically deemed to be amended to include any services that
Manager actually provided to the Hotel during the Lookback Period and Manager shall (subject to the
terms and conditions of this Agreement) be entitled to recover Manager’s Actual Cost and the
allocable portion of its Shared Expense (in each case as applicable) for providing the services
that are subject to such amendment.

     4.5 Manager Capabilities and Resources. Manager will have continuous access to all
strategic management capacity currently used by Manager and its Affiliates to operate the Hotel.
Manager will be familiar with all of the Hotel’s day-to-day operations. Manager will have on the
Effective Date, the capabilities, operating methods, systems and resources reasonably necessary to
assume management responsibility for the Hotel in a manner reasonably consistent with the Services
contemplated by this Agreement.

     4.6 Lawsuits. Manager represents and warrants that there are no actions, suits or
proceedings pending, or, so far as Manager has actual knowledge, threatened against Manager which
might result in any inability of Manager to perform its obligations pursuant to this Agreement.

     4.7 Brokers, Finders, Etc. Manager represents and warrants to Owner that it has
engaged no broker, agency or finder in connection with this transaction.

ARTICLE 5

REPRESENTATIONS AND WARRANTIES OF OWNER

Owner represents and warrants to Manager as follows:

     5.1 Power and Authority. Owner has the requisite power and authority to execute and
deliver this Agreement and to perform the transactions contemplated hereby. All corporate action
on the part of Owner necessary to approve or to authorize the execution and delivery of this
Agreement and the performance of the transactions contemplated hereby to be performed by it has
been duly taken. This Agreement is a valid and binding obligation of Owner, enforceable in
accordance with its terms, subject to the effect of principles of equity and the applicable
bankruptcy, insolvency or other similar laws, now or hereafter in effect, affecting creditors’
rights generally and other customary qualifications.

     5.2 Brokers, Finders, Etc. Owner represents and warrants to Manager that it has
engaged no broker, agency or finder in connection with this transaction.

22

 

     5.3 Financing and Sales; Disclosures of Non-Participation by Manager. Owner shall not
represent to the Lender under any proposed Mortgage, or to any joint venturer, investor, partner or
purchaser of securities in a private or public offering of securities of Owner, or to any
transferee of the Hotel or to any other person or entity, that Manager or its Affiliates are or
shall be in any way responsible for Owner’s obligations under such Mortgage, offering or transfer,
and, shall, if requested by Manager, affirmatively disclose in writing to any such Lender, joint
venturer, investor, partner, purchaser of securities, transferee or other person or entity, that
Manager is not participating in such offering, borrowing or transfer, and is not making any
representations, warranties, or guaranties in connection therewith, other than to state that the
Hotel will be managed by Manager as provided in this Agreement. Owner may make use of any
forecasts, annual plans, or projections prepared only in Owner’s name or the name of Manager or the
names of any of their respective Affiliates in connection with any proposed financing arrangement,
loan or public or private offering, and Owner shall indemnify Manager from claims of reliance by
any Lender, joint venturer, investor, partner, purchaser of securities, transferee or other person
or entity on such forecasts, annual plans, or projections prepared by Manager. Furthermore, and
without limiting Owner’s indemnification obligations under this Section 5.3, Owner
covenants to notify in writing any such Lender, joint venturer, investor, partner, purchaser of
securities, transferee or other person or entity that such forecasts, annual plans, or projections
prepared by Manager are confidential and should not be disseminated in any manner, subject to
customary exceptions and exclusions.

     5.4 Lawsuits. Owner represents and warrants that there are no actions, suits or
proceedings pending, or, so far as Owner has actual knowledge, threatened against Owner which might
result in any inability of Owner to perform its obligations pursuant to this Agreement.

ARTICLE 6

CONFIDENTIALITY

     6.1 Confidentiality Agreement of Managers. Except as expressly contemplated by this
Agreement or as required by Applicable Law (including with respect to any bankruptcy or other legal
proceeding), Manager shall hold, and shall cause its Affiliates and their respective officers,
directors and employees to hold, in strict confidence and not disclose to any other person or
entity, any Exclusive Hotel Data and any other data or information relating to Owner’s business
that is identified as confidential or should reasonably be understood to be confidential and which
Owner has used reasonable steps under the circumstances to maintain in confidence (collectively,
“Owner Confidential Information”). Each of Manager and its Affiliates may disclose Owner
Confidential Information to their respective service providers and designees who have a need to
know such information in order to provide the Services required under this Agreement, provided such
parties are bound to confidentiality obligations of even scope with those in this Agreement and
provided that Manager shall be responsible for such service providers’ and designees’ compliance
with such obligations.

     6.2 Confidentiality Agreement of Owner. Except as expressly contemplated by this
Agreement or as required by Applicable Law (including with respect to any bankruptcy or

23

 

other legal proceeding), Owner and Successor Owner shall hold, and shall cause their
respective Affiliates and their and their Affiliates’ respective officers, directors, employees,
representatives, agents and advisors (including attorneys, accountants, consultants, bankers,
current or prospective purchasers or lenders, and financial advisors) to hold, in strict confidence
and not disclose to any other person or entity, all data and information relating to Manager’s
business that is identified as confidential or should reasonably be understood to be confidential
in which Manager, its Affiliates or their respective customers or suppliers have rights, and which
the Manager and its Affiliates have used reasonable steps under the circumstances to maintain in
confidence (collectively, “Manager Confidential Information” and, together with Owner
Confidential Information, the “Confidential Information”).

     6.3 Exceptions. Confidential Information shall not include information that: (a) is
or becomes generally available to the public other than as a result of disclosure directly or
indirectly by (i) Manager or any of its Affiliates, officers, directors, employees,
representatives, agents and advisors, in the case of Owner Confidential Information, or (ii) Owner
or Successor Owner or any of their respective Affiliates, officers, directors, employees,
representatives, agents and advisors, in the case of Manager Confidential Information; (b) was,
after the Effective Date, independently acquired or developed by (i) Manager or its Affiliates, in
the case of Owner Confidential Information, without using any Owner Confidential Information and
without violating any of its obligations hereunder, or (ii) the Owner or Successor Owner, in the
case of Manager Confidential Information, without using any Manager Confidential Information and
without violating any of its obligations hereunder; or (c) is or becomes available to (i) Manager
or its Affiliates, in the case of Owner Confidential Information, on a non-confidential basis from
a person or entity (other than Owner or its Affiliates, officers, directors, employees,
representatives, agents or advisors) who, to Manager’s or its Affiliates’ actual knowledge after
due inquiry, is not and was not bound by a confidentiality agreement with Owner or otherwise
prohibited from transmitting the information to Manager or its Affiliates, or (ii) Owner or
Successor Owner, in the case of Manager Confidential Information, on a non-confidential basis from
a person or entity (other than Manager or its Affiliates, officers, directors, employees,
representatives, agents or advisors) who, to Owner’s or Successor Owner’s actual knowledge after
due inquiry, is not and was not bound by a confidentiality agreement with Manager or its Affiliates
or otherwise prohibited from transmitting the information to Owner or Successor Owner.

     6.4 Permitted Uses. The foregoing shall not prohibit use of Confidential Information
(a) as is required by Applicable Law (including any gaming regulations), (b) as is necessary to
prepare tax returns or other required filings with any governmental authorities or to defend or
object to any reassessment of taxes, (c) as is necessary to prepare and disclose, as may be
required, accounting statements, (d) as is necessary or advisable to avoid committing a violation
of any rule or regulation of any domestic or foreign securities association, stock exchange or
national securities quotation system on which a Party’s or its Affiliate’s securities are listed or
traded, or (e) as is necessary to enforce the terms of this Agreement; provided,
however, that the party using or disclosing such Confidential Information in any of the
preceding scenarios must take reasonable steps to protect the confidentiality of the information to
the extent permitted by Applicable Law.

24

 

     6.5 Return and Destruction. Upon termination or expiration of this Agreement,
or at any time with respect to particular Confidential Information not required by a Party to
perform its obligations or receive its benefits under this Agreement, upon request by the other
Party, such Party shall (a) return to such other Party all Confidential Information and all copies
thereof that are in such Party’s possession or control, and (b) delete from its computers,
databases, and servers any electronic copies of all such Confidential Information.

     6.6 Use of Residual Manager Knowledge. Owner acknowledges that Manager has been
engaged pursuant to this Agreement to provide Owner with access to data and information other
than proprietary or confidential systems, methods, programs and strategies developed and
utilized exclusively by Manager and its Affiliates in the management and operation of numerous
casino and hotel properties and that all such proprietary or confidential systems, methods,
programs and strategies are and shall remain the sole and exclusive property of Manager and/or its
Affiliates, as applicable. Owner acknowledges that nothing in this Agreement shall be deemed to
limit the use by Manager and its Affiliates and their respective personnel of all data and
information other than Owner Confidential Information and Exclusive Hotel Data, and of all
systems, methods, programs and strategies exclusively developed by Manager and its Affiliates
(including those developed by Manager and its Affiliates in connection with the management of the
Hotel).

     6.7 Use of Residual Owner Knowledge. Manager acknowledges that Owner or a Successor
Owner may, by virtue of receipt of the Services, learn or become aware of general, non-proprietary
and non-confidential operating and management processes, methods and strategies used with
properties similar to the Hotel generally. Manager acknowledges that nothing in this Agreement
shall be deemed to limit the use by Owner and its Affiliates and their respective personnel of all
such general, non-proprietary and non-confidential operating and management processes, methods and
strategies.

     6.8 Survival. Without limiting any Party’s obligations with respect to the return and
destruction of the Confidential Information of any other Party hereunder, the provisions of this
Article 6 shall survive for two (2) years following any expiration or termination of this
Agreement.

ARTICLE 7

SURVIVAL

     7.1 Survival. The obligations of the Parties under this Agreement that the Parties
have expressly agreed shall survive expiration or termination of this Agreement or that, by their
nature, would continue beyond the expiration or termination of this Agreement, shall survive the
expiration or termination of this Agreement for any reason. Without limiting the foregoing,
Article 1, Article 6 (to the extent provided in Section 6.8), this
Article 7 and Article 16 of this Agreement, and all provisions of this Agreement
relating to the Transition Period, shall survive expiration or termination.

25

 

ARTICLE 8

TERM AND TERMINATION

     8.1 Initial Term. This Agreement shall commence on the Effective Date and shall
continue in full force and effect through the end of the Initial Operating Term unless terminated
earlier in accordance with the terms of this Agreement or renewed in accordance with Section
8.2.

     8.2 Renewal Options. Owner shall have the right (but not the obligation) to extend
the Initial Operating Term of this Agreement for successive periods of one (1) year each (each, a
“Renewal Term”) by giving Manager written notice of its desire to extend not later than
ninety (90) days prior to the expiration of the Initial Operating Term (or, if applicable, the
expiration of the then-current Renewal Term). If this Agreement is renewed for any Renewal Term,
this Agreement shall be automatically extended to the expiration of such Renewal Term.

     8.3 Early Termination. Owner may terminate this Agreement at any time upon ninety
(90) days’ prior written notice to Manager, and Manager may terminate this Agreement at any time
following the first year of the Initial Operating Term upon ninety (90) days’ prior written notice
to Owner. If Owner elects to terminate this Agreement as provided for in this Section 8.3
at any time prior to one (1) year after the Effective Date, then Owner shall pay the Owner
Termination Amount to Manager. The Owner Termination Amount, to the extent actually paid by Owner,
shall be credited against the Management Fee and any expenses and other amounts that may be payable
to Manager for its services during the Transition Period, as and when such fees, expenses and other
amounts become due. The effective date of either such termination shall be extended to the extent
(if any) necessary for Owner and Manager to comply with Applicable Law.

     8.4 Termination upon Default. In the event that either Party materially breaches any
of its material representations, warranties or covenants under this Agreement and (in the case of
any breach of a covenant hereunder) fails to cure such breach within thirty (30) days after
receiving written notice of such breach from the other Party, such other Party may, without
limiting its other rights and remedies under this Agreement, at law or in equity, terminate this
Agreement by written notice to the breaching Party, subject to Manager’s obligation to perform
Transition Services hereunder. Without limiting any liability on the part of Owner if Owner is the
breaching Party, no Owner Termination Amount shall be payable, and Owner shall incur no other cost,
expense or liability, as a result of any such termination.

     8.5 Termination by Manager for Non-Payment. If Owner fails to make when due any
payment required under Section 9.6, Manager may terminate this Agreement upon ten (10)
business days’ notice, subject to Manager’s obligation to perform Transition Services hereunder. If
any such failure by Owner occurs during the Transition Period, Manager may terminate the Transition
Period upon ten (10) business days’ notice, in which case Manager shall no longer be obligated to
perform any Transition Services hereunder. Without limiting any liability on the part of Owner
with respect to such failure, no Owner Termination Amount shall be payable, and Owner shall incur
no other cost, expense or liability, as a result of any termination in accordance with this
Section 8.5.

     8.6 Termination by Owner for Cause. Owner may terminate this Agreement by written
notice to Manager if at any time (a) Manager engages in fraud or willful misconduct under this
Agreement, (b) Manager or any of its Affiliates suffers the revocation, suspension,

26

 

expiration or other loss of any Approval required for the provision by Manager of the
Services, (c) any Approval held by Manager or any of its Affiliates under any Gaming Laws could, in
Owner’s good-faith judgment, be revoked, suspended or jeopardized, or (d) Manager or any of its
Affiliates has been found unsuitable by a gaming regulator or could (in Owner’s good-faith
judgment) be found unsuitable if Manager (or such Affiliate) were called forward by a gaming
regulator. Except as may be otherwise stated therein, any such termination notice shall be
effective upon the date it is received by Manager. No Owner Termination Amount shall be payable,
and Owner shall incur no other cost, expense or liability, as a result of any termination in
accordance with this Section 8.6 other than those costs and expenses that would otherwise
be borne by Owner under this Agreement following any termination or expiration hereof.

     8.7 Termination by Owner Relating to Licenses. Either Party shall have the right to
terminate this Agreement by written notice to other Party if at any time the notifying Party, any
of its members or managers, any of their respective Affiliates or any of the shareholders,
partners, managers, members, parents, officers, directors, Affiliates or employees of any of the
foregoing (each, an “Affected Person”) determines, in its sole, exclusive and nonreviewable
discretion, that the commencement or continuation of this Agreement could adversely affect one or
more of the actual or potential licenses, certificates of suitability, suitability findings,
permits or the like (each, a “License”) of one or more of the Affected Persons, whether any
such License is, or may be, issued by the State of Nevada or any federal, state, local or foreign
governmental or regulatory authority. Except as may be otherwise stated therein, any such
termination notice shall be effective upon the date it is received by the Party to which it is
delivered, subject to Manager’s obligation to perform Transition Services hereunder. No Owner
Termination Amount shall be payable as a result of any termination in accordance with this
Section 8.7, and any such termination shall be at no cost, expense or liability to Owner or
any other Related Person.

ARTICLE 9

FEES AND PAYMENT

     9.1 Base Management Fee. The Base Management Fee shall be payable to Manager in
monthly installments in arrears five (5) days after the delivery to Owner of the Monthly Report for
the prior Accounting Month, with each such monthly installments being calculated on the actual
Gross Operating Revenue for such prior Accounting Month. The Base Management Fee shall be paid by
Manager by withdrawing the same from the Bank Accounts. Each such installment shall equal the
Base Management Fee for the related month and (if applicable) each preceding month in the same
Operating Year, less the sum of all prior installments of the Base Management Fee paid for such
Operating Year. At the time of submission of each Monthly Report, Manager shall provide to Owner a
computation of the applicable installment of the Base Management Fee in reasonable detail and
certified by Manager.

     9.2 Incentive Management Fee. The Incentive Management Fee shall be payable to
Manager in quarterly installments in arrears within five (5) days after the delivery to Owner of
the Quarterly Report for the prior Accounting Quarter. Each such installment shall equal the
Incentive Management Fee for the applicable Accounting Quarter and (if applicable) each

27

 

preceding Accounting Quarter in the same Operating Year, less the sum of all prior
installments of the Incentive Management Fee paid for such Operating Year. At the time of
submission of each Quarterly Report, Manager shall provide to Owner a computation of the applicable
installment of the Incentive Management Fee in reasonable detail and certified by Manager. For the
avoidance of doubt, all Management Fee installments and Owner’s Expenses payable with respect to
any Accounting Quarter (whether due and payable during or after such Accounting Quarter) shall be
deducted in the calculation of Net Income for such quarter for purposes of such computation.

     9.3 Costs and Expenses Incurred. In addition to the Base Management Fee and the
Incentive Management Fee, the Hotel’s allocable portion of Shared Expenses and additional Actual
Costs incurred by Manager as a result of providing Shared Services to the Hotel (collectively,
“Owner’s Expenses”) shall constitute costs and expenses of Owner under this Agreement and
as such shall be fully reimbursable to Manager hereunder (without duplication), provided that (a)
such Owner’s Expenses shall have been approved by Owner (in connection with the Annual Budget or
otherwise) and actually incurred by Manager or its Affiliates, (b) any such Owner’s Expenses
constituting costs and expenses for Senior Executive Personnel and shared employees shall not
exceed $100,000 in the aggregate in any calendar month and any other Owner’s Expenses shall not
exceed $358,333 in the aggregate in any calendar month, and (c) any such Owner’s Expenses to be
reimbursed to Manager are set forth in a Monthly Report. The Parties acknowledge that the limits
set forth in clause (b) of the immediately preceding sentence are based on the costs and expenses
that were treated as Shared Expenses and allocated as such to the Hotel from January 2010 through
July 2011, and Manager agrees to treat as Shared Expenses the same categories of costs and expenses
that were so treated, and to use the same methods of calculation and allocation of Shared Expenses
that were used, during such period. Owner’s Expenses shall be reimbursed within five (5) days
after the delivery to Owner of the Monthly Report detailing such Owner’s Expenses. Whenever any
reimbursement due Manager under this Section or any other provision of this Agreement shall be
subject to a gross receipts or similar tax under Applicable Law, Manager shall be entitled to such
reimbursement, together with such tax payable thereon, so that Manager shall receive such
reimbursement net of any taxes or similar charges

     9.4 Payment Disputes; Audits. If Owner disputes in good faith any amounts charged by
Manager hereunder, Owner shall provide prompt notice thereof to Manager and the Parties shall
promptly and in good faith attempt to resolve such dispute. If any such dispute is not resolved
prior to the payment due date for such fee or expense, Owner may withhold (or direct Manager to
withhold) any disputed amounts from the payment of such fee or expense; provided that
Manager shall be entitled to receive the undisputed portion of the same and Manager shall be
entitled to receive any remainder promptly upon the resolution of the dispute. Manager and its
Affiliates shall keep reasonably detailed books and records related to the amounts charged
hereunder, together with third party invoices and reasonable supporting documentation. Owner or
its designated third party auditor may, from time to time, as an expense of the Hotel and upon
reasonable notice to Manager and/or its Affiliates, request copies of, inspect and conduct audits
of, such books, records, invoices and documentation as reasonably necessary to verify and confirm
the amounts charged hereunder. If any such audit reveals an overcharge of Owner with respect to
any amounts charged hereunder, Manager or its Affiliates, as the case may be, shall issue a refund
to Owner or, at Owner’s election, extend a credit to

28

 

Owner to be applied against future amounts charged hereunder. If any such audit reveals an
underpayment by Owner with respect to any such charges, Manager shall be entitled to withdraw from
the Bank Accounts the net amount of any such underpayment.

     9.5 Reconciliation of Management Fees. Within ten (10) days after Manager delivers to
Owner the Certified Financial Statements for any Operating Year, Manager shall cause to be prepared
and delivered to Owner a reconciliation statement for such Operating Year showing the calculation
and payment of the Management Fees for such Operating Year, and appropriate adjustments shall be
made for any overpayment or underpayment of the Management Fees during such Operating Year. If any
reconciliation statement reflects an overpayment of Management Fees to Manager, Manager shall,
within fifteen (15) days after such reconciliation statement has been delivered by Manager to
Owner, remit to Owner the amount of such overpayment. If the reconciliation statement reflects an
underpayment of Management Fees to Manager, Manager shall be entitled to withdraw from the Bank
Accounts within thirty (30) days after such reconciliation statement has been delivered by Manager
to Owner the net amount of any such underpayment.

     9.6 Payment by Owner. Subject to Section 9.4, if at any time there are
insufficient funds in the Bank Accounts to pay any installment of the Base Management Fee or the
Incentive Management Fee or any expense or other amount which is then due and payable to Manager,
Owner shall, within ten (10) business days after receiving a written request therefor from Manager,
pay the amount of such installment, expense or amount to Manager.

ARTICLE 10

BOOKS AND RECORDS

     10.1 Maintenance of Books and Records. Manager shall keep and maintain in accordance
with GAAP complete and accurate records and books of account reflecting all financial affairs
(including all items of income and expense) in connection with the Operation of the Hotel. All
books of account and other financial records of the Hotel shall be available to Owner, any Lender
and their respective agents, representatives and designees (subject to Article 6) at all
reasonable times for examination, audit, inspection and copying, at no cost or expense to Manager.
Such inspections and examinations shall be made with as little disruption to the business
operations of the Hotel as reasonably practicable. All of the financial books and records of the
Hotel, including books of account and front office records (but excluding any Proprietary Rights),
shall be the property of Owner; provided, however, after the termination of this Agreement, all
such books and records with respect to the period during which Manger provided Services hereunder
shall thereafter be available for a period of five years to Manager at the Hotel for inspection,
audit, examination and extracting, at all reasonable times, upon two business days’ prior notice.

     10.2 Monthly Financial Reports. Manager shall cause to be prepared and delivered to
Owner reasonably detailed unaudited monthly operating reports (the “Monthly Reports”) that
reflect the operational results of the Hotel for each Accounting Month of each Operating Year.
Manager shall deliver each Monthly Report to Owner within fifteen (15) days after the end of the
Accounting Month to which such Monthly Report relates. At a minimum, the Monthly Reports

29

 

shall include: (a) a balance sheet including comparisons against the prior Accounting Month
and prior year-end and outlining differences in reasonable detail; (b) an income and expense
statement (including GOR, Operating Costs (including Owner’s Expenses) (broken out into categories
which are no less specific than the categories enumerated in clauses (i) through (ix) of the first
paragraph of Schedule A), Net Income and EBITDA) for such Accounting Month and for the
elapsed portion of the current Operating Year through the end of such Accounting Month (with a
comparison to the previous year); (c) a statement of cash flows for such Accounting Month and for
the elapsed portion of the current Operating Year through the end of such Accounting Month (with a
comparison to the previous year) in reasonable detail to allow Owner to identify and ascertain
sources and uses thereof; (d) a computation of any installment of the Base Management Fees due
following delivery of such Monthly Report; (e) a statement of all amounts reimbursable to Manager
following delivery of such Monthly Report; (f) a statement of all employees then shared or proposed
to be shared by the Hotel and one or more other properties owned or operated by Manager or any of
its Affiliates, and the current or proposed allocation of the time, services and costs of such
employees; (g) a statement of all current and proposed Shared Services, and the current or proposed
allocation of the costs of such Shared Services; (h) descriptions of all variances from the Annual
Budget for the current Operating Year, updated forecasts and any proposed changes to the Annual
Budget; and (i) such other reports or information as may be otherwise specified in this Agreement
to be provided to Owner on a monthly basis or as Owner may reasonably specify from time to time.

     10.3 Quarterly Financial Reports. Manager shall cause to be prepared and delivered to
Owner reasonably detailed unaudited quarterly operating reports (the “Quarterly Reports”,
and together with the Monthly Reports, the “Operating Reports”). Manager shall deliver
each Quarterly Report to Owner within forty-five (45) days following the end of the Accounting
Quarter to which such Quarterly Report relates. At a minimum, the Quarterly Reports shall include:
(a) a narrative report on the Hotel’s actual performance relative to the Annual Budget; (b) a
computation of any installment of the Incentive Management Fees due following delivery of such
Quarterly Report; (c) a schedule comparing the financial performance of the Hotel to the financial
covenants under Financing Documents to the extent that the applicable Financing relates to the
Hotel only; and (d) such other reports or information as Owner may reasonably specify from time to
time.

     10.4 Annual Financial Reports. Manager shall cause to be prepared and delivered to
Owner, no later than ninety (90) days after the end of each Operating Year, financial statements
for such Operating Year (including a balance sheet, a statement of earnings and retained earnings
and a statement of cash flows), which statements shall be audited by an accounting firm selected by
Owner and approved by Manager (provided that Manager shall not withhold its approval of one of the
“Big Four” accounting firms), shall include a certification by such firm that, subject to any
qualifications therein, such statements fairly present, in conformity with GAAP, the financial
position, results of operations and cash flows of the Hotel for the preceding Operating Year, and
shall be prepared in accordance with GAAP (“Certified Financial Statements”). Owner and
Manager shall cooperate in all respects in the preparation of such financial statements, including
the delivery by Manager of any financial information generated by Manager pursuant to the terms of
this Agreement and reasonably required to prepare such Certified Financial Statements.

30

 

     10.5 Other Reports and Schedules. In addition to the Monthly Reports, Quarterly
Reports and Certified Financial Statements required to be delivered to Owner hereunder, Manager
shall cause to be prepared and delivered to Owner any additional reports and schedules as Owner may
reasonably request from time to time, and copies of such leases, contracts and documents as Owner
may reasonably request from time to time.

     10.6 Cost of Reports. The cost of preparing the statements and reports described in
this Article 10 shall be charged as an Operating Cost of the Hotel for the applicable Operating
Year. If the opinion of the independent certified public accounting firm that prepared the
Certified Financial Statements for any Operating Year with respect to the matters set forth in such
Certified Financial Statements shall be an unqualified opinion, then such Certified Financial
Statements shall be conclusive upon the Parties hereto with respect to such matters and shall be
deemed to be a final determination of the GOR, Net Income, Operating Costs, Base Management Fee and
Incentive Management Fee for such Operating Year, absent fraud, gross or manifest error, or breach
of this Agreement.

     10.7 Public Filings. Manager acknowledges that Owner or an Affiliate of Owner may be
a public company, and Manager agrees to cooperate with Owner in maintaining the books and records
of the Hotel, and by preparing and delivering to Owner reports and statements hereunder and public
filings to be filed by Owner or its Affiliates, in a manner that (a) is customary for a third-party
manager of a hotel and casino owned by a public company and (b) will permit Owner and its
Affiliates to comply with any and all public filing requirements.

ARTICLE 11

OPERATION OF THE MANAGED FACILITIES

     11.1 Proposed Annual Budget. On or before November 1 of each Operating Year, Manager
shall prepare and deliver to Owner, for its review and approval, a proposed operating plan and
budget for the next Operating Year. All operating plans and budgets proposed by Manager shall
include projections of Gross Operating Revenue and Operating Costs by department for such Operating
Year for the Hotel and shall be prepared in good faith in accordance with budgeting and planning
procedures typically employed by operating subsidiaries of Manager and its Affiliates. Each
operating plan and budget shall include monthly and annual projections of each of the following
items, as applicable, for the Hotel:

          (a) results of operations (including itemized Gross Operating Revenue, Promotional Allowances,
Operating Costs and EBITDA), together with the following supporting data: (a) total labor costs
(broken down by department and aggregated), including both fixed and variable labor; (b) the
Management Fee, Shared Expenses and Owner’s Expenses; (c) estimates of average daily rate and
occupancy; (d) estimates of food, beverage and other sales; (e) estimates of gaming receipts and
losses; and (f) a description of the category and nature of Shared Services to be provided,
together with a budget for each such category;

          (b) a description of proposed Routine Capital Improvements, Building Capital Improvements and
ROI Capital Improvements to be made during such Operating Year and estimated capital expenditures
related thereto, including capitalized lease expenses and a

31

 

contingency line item, and proposed monthly funding for such costs, and project schedules for
such capital improvements (the “Capital Budget”);

          (c) a statement of cash flow, including a schedule of any anticipated cash shortfalls;

          (d) a schedule of debt service payments and reserves required under any Financing Documents;
and

          (e) a marketing plan and budget for the activities to be undertaken by Manager, including
promotional activities and Promotional Allowances for the Hotel.

     11.2 Approval of Annual Budget. Except as expressly provided herein, all final
decisions with respect to the operating plans and budgets shall be made by Owner in its sole
discretion. If Owner objects to any portion of the proposed annual operating plan or budgets
(other than portions to the extent they relate exclusively to discretionary capital expenditures
(i.e., capital expenditures not required to comply with law or for life safety reasons)) and Owner
and Manager fail to agree on such portion before the end of the first calendar month of the
Operating Year to which the proposed annual operating plan and budgets relate, then the dispute
will be resolved by an independent internationally recognized hotel and gaming consultant, selected
and retained jointly by Manager and Owner. Any such consultant will (i) have no fewer than ten
(10) years of experience in the casino/hotel business, (ii) not be an Affiliate of or a person who
has any past, present or currently contemplated future business or personal relationship with
either Owner or Manager and (iii) not have its compensation fixed based on the results of the issue
at dispute. If the Parties are unable to agree on such consultant, the dispute shall be resolved
in accordance with Section 17.10. If the consultant agrees with Manager’s proposal with
respect to any Owner Controlled Issue (as defined below), the applicable budget or plan shall
nevertheless incorporate Owner’s proposal with respect to such issue, but the Base Management Fee
and Incentive Management Fee for the period covered by such budget or plan shall be adjusted after
such period to reflect the consultant’s best estimate as to what Gross Operating Revenue and EBITDA
would have been if Manager’s proposal had been implemented. As used herein, “Owner Controlled
Issues” shall mean all issues submitted to the consultant other than (a) issues relating to life
safety or legal and regulatory compliance and (b) issues as to which the Manager asserts in good
faith that its proposal is necessary in order for the Hotel to comply with the brand standards of
Manager and its Affiliates applied to all properties branded as “Station” casinos. The proposed
operating plan and budget, including the Capital Budget, as modified to reflect the revisions, if
any, either agreed to by the Parties or determined by resolution pursuant to this section shall
become the “Annual Budget” for the next Operating Year.

     11.3 Initial Annual Budget. The Parties acknowledge and agree that the operating plan
and operating and capital budgets attached as Schedule G have been agreed to by the Parties
and shall constitute the Annual Budget for the initial Operating Year.

     11.4 Modification to Annual Budget. Manager shall have the right from time to time
during each Operating Year (but not more frequently than quarterly) to propose modifications to the
Annual Budget then in effect based on actual operations during the elapsed

32

 

                    .

portion of the applicable Operating Year and Manager’s judgment as to what will transpire
during the remainder of such Operating Year. Any such modifications shall be subject to Owner’s
approval (in the same manner as any Annual Budget) in accordance with Section 11.2.

     11.5 Compliance with Annual Budget. Manager shall use best efforts to Operate the
Hotel in accordance with the Annual Budget for the applicable Operating Year. In no event shall
Manager (i) incur costs or expenses or make expenditures that would cause the expenditures during
any quarter for any line item in an Annual Budget to exceed the amount budgeted for such line item
in such Annual Budget for such quarter by more than 10% or, in the case of (x) costs or expenses
relating to marketing, advertising or promotion of the Hotel or (y) Shared Expenses, by more than
5%, in each case without Owner’s prior approval, or (ii) exceed the Capital Budget for any Building
Capital Improvements or ROI Capital Improvements by any amount without Owner’s prior approval.
Notwithstanding the foregoing, Manager shall have the right, without Owner’s prior approval and
without reference to the amounts provided for with respect thereto in the applicable Annual Budget,
(A) to pay expenses that are not within the ability of Manager to control, including property
taxes, the rates applied to (rather than the level of consumption of) utility services, insurance
premiums, and license and permit fees, and (B) to make expenditures required on an emergency basis
to avoid or mitigate potential injury to persons at the Hotel or damage to the Hotel or other
property located at or used in the Operation of the Hotel, provided, that Manager shall endeavor to
consult with Owner prior to making any such expenditures and, where such consultation is
impracticable under the circumstances, shall notify Owner of the expenditures as promptly
thereafter as reasonably possible.

     11.6 Personnel.

     (a) Manager Control. Except as otherwise provided herein, Manager shall manage and
have sole and exclusive control of all aspects of the Hotel Personnel, including the recruitment,
screening, hiring, payment (including processing of payroll and benefits), training, supervision,
instruction and direction of all Hotel Personnel. No Hotel Personnel shall perform services for
the benefit of Manager or any of its Affiliates or any property owned or managed by Manager or any
of its Affiliates other than the Hotel.

     (b) Personnel Costs. All Hotel Personnel other than Senior Executive Personnel shall
be employees of Owner, and (subject to Sections 9.3 and 11.5 and the other provisions of
this Agreement) all Hotel Personnel Costs shall be the sole responsibility of Owner and may be paid
by Manager from the Bank Accounts as Operating Costs. Owner shall have no right to supervise,
discharge or direct any Hotel Personnel, except as otherwise set forth herein, and covenants and
agrees not to attempt to so supervise, direct or discharge. Owner shall not interfere with or give
orders or instructions to Hotel Personnel, but Owner may contact Manager or the Hotel’s general
manager for purposes of evaluating or commenting upon Hotel Personnel, Hotel operations and/or
financial performance. Subject to compliance with Gaming Laws, the Operation of the Hotel in
compliance with the standards set forth herein, and Owner’s review and approval of the sharing
arrangement on a monthly basis, Manager may cause certain Hotel Personnel to provide services to
other facilities owned or operated by Manager or an Affiliate of Manager, in which event the costs
associated with such personnel shall be equitably allocated between the Hotel and such other
facilities pursuant and subject to a reimbursement arrangement satisfactory to Owner.

33

 

     (c) Senior Executive Personnel. The Senior Executive Personnel shall report to
Manager and shall have the authority and powers normally given to persons holding the positions
occupied by them, subject to the authority and powers given to Owner and the Asset Manager in this
Agreement.

     (d) Acts of Hotel Personnel. Manager shall not be deemed in breach of any provision of
this Agreement, or otherwise (as between Owner and Manager) at fault, by reason of any act or
omission of any of the Hotel Personnel, except in connection with its screening, hiring, training,
supervision, instruction and direction of such Hotel Personnel.

     (e) Temporary Assignments. Manager may, if necessary in its reasonable judgment,
assign one or more of its other supervisory employees to the Hotel on a temporary or part-time
basis, and the costs and expenses of such assignment shall be Operating Costs of the Hotel,
provided that such assignment and the costs and expenses thereof shall be subject to Owner’s prior
written approval (as part of the Annual Budget or otherwise).

     11.7 Licenses and Permits; Owner’s Covenant. All liquor licenses, and all other licenses
that are not readily transferable or re-issuable upon termination of this Agreement, shall be
obtained and held in Owner’s name, to the extent permitted under Applicable Law. Owner shall also
make, execute and deliver such agreements, contracts, leases, applications, verifications,
instruments and other documents as are permitted hereunder, and shall otherwise cooperate
reasonably with Manager, in connection with Manager’s exercise of its rights and authority, and
performance of its obligations, under this Agreement, in each case subject to the terms and
provisions of this Agreement.

     11.8 Maintenance, Repairs, Alterations and Reserves

     (a) Repairs, Maintenance and Alterations. Manager shall, subject to the applicable Annual
Budget (and the availability of sufficient funds), repair and maintain the Hotel (other than such
portions thereof as are leased to tenants who undertake a duty of repair and maintenance, in which
case Manager shall use commercially reasonable and diligent efforts to cause such tenants to comply
with such duty) in good order and condition and make all repairs thereto as may be necessary to
operate at the Hotel Standard, and shall coordinate and provide general oversight in respect of the
installation of FF&E in the ordinary course.

     (b) Emergency Repairs. If Manager shall, at any time, reasonably believe that (i) a
dangerous condition exists at the Hotel, (ii) repairs are required to comply with any applicable
Applicable Laws or Insurance Requirements in any material respect, or (iii) expenditures are
required to eliminate a dangerous condition or to prevent further property damage following a fire,
act of God, flood, earthquake or other like or unlike casualty or other emergency, Manager may take
all steps and make, on behalf of Owner utilizing the funds in the Bank Accounts, all reasonable
expenditures necessary to cure such condition or make such repairs, or which are otherwise so
required, whether or not provided for in the applicable Annual Budget; provided, however, that
Manager shall not make any such expenditures in excess of $50,000 with respect to any single
condition or occurrence or related series of conditions or occurrences without Owner’s prior
approval, except to the extent required to avoid an imminent peril to human life or imminent risk
of material property damage or liability, to avoid a criminal violation, or to avoid

34

 

cancellation of any required insurance. Manager agrees to notify Owner in writing as soon as
reasonably possible of any such emergency condition or situation, the cost of which exceeds
$15,000, adjusted annually with CPI, and of the action taken or proposed to be taken by Manager.

     11.9 Purchasing. In purchasing FF&E, Operating Supplies, Operating Consumables and other
goods and services for the Hotel, Manager shall use commercially reasonable efforts to secure
competitive prices for goods and services consistent with the Hotel Standard. When taking bids or
issuing purchase orders, Manager shall use commercially reasonable efforts to secure for, and shall
credit to, Owner any discounts, commissions, or rebates obtainable as a result of such purchase.
Manager shall promptly remit to Owner’s benefit in the Bank Accounts all discounts, rebates,
profits, or commissions received by Manager or by any Affiliate of Manager, in connection with any
purchases described above, in connection with any purchase contracts or agreements entered into on
behalf of Owner or in connection with the Hotel. This clause is intended to ensure that neither
Manager nor any Affiliate of Manager shall receive, directly or indirectly, any remuneration other
than that to be paid by Owner to Manager hereunder.

     11.10 Payment of Hotel Expenses

     (a) Manager shall in no event be required or obligated to advance any of its funds for the
Operation of the Hotel, nor shall Manager be required to incur any liability in connection
therewith unless Owner shall have furnished Manager with funds necessary for the discharge thereof.
For avoidance of doubt, the cost, fees, compensation or other expenses of any persons, such as
attorneys, independent asset managers, independent accountants and the like engaged by Owner to
perform duties pertaining to the ownership (as opposed to Operation) of the Hotel, shall be an
expense of Owner and shall not be an Operating Cost of the Hotel or deducted from Gross Operating
Revenue for calculation of the Incentive Management Fee.

     (b) Subject to the terms of this Agreement, Manager shall, prior to delinquency, and as long
as Manager has been supplied with bills and invoices, pay from the Bank Accounts or Sub-Accounts,
to the extent of funds available therein, all Impositions assessed against the Hotel, and all
insurance premiums on all policies of insurance maintained with respect to the Hotel and its
operations.

     11.11 Coordination and Planning.

     (a) Cooperation with Transactions. Manager shall cooperate reasonably (at Owner’s request
and at Owner’s cost and expense) with any actual or prospective purchaser, underwriter, lender or
other person in connection with any actual or proposed sale, investment, offering, debt placement
or financing of or related to the Hotel (provided that Manager shall not be required to release to
any such person any of Manager’s Proprietary Rights or by reason of such cooperation incur any
underwriting liability). Such cooperation may include the preparation of customary lists and
schedules (such as, for example, inventories) and other information relating to the Hotel, to the
extent regularly maintained or compiled, or if the requested information is reasonably available to
Manager, as may be reasonably requested by a prospective purchaser, underwriter, lender or other
person.

35

 

     (b) Third-Party Operated Areas. Owner and Manager acknowledge that certain areas of the
Hotel, such as the spa, fitness center or restaurant may be operated by third parties (the
“Third-Party Managers”) under a lease, operating agreement, franchise agreement or similar
agreement. Any areas of the Hotel operated by Third-Party Managers are referred to in this
Agreement as “Third-Party Operated Areas”. The operation of any Third-Party Operated Areas
by a Third-Party Manager, and the selection of a Third-Party Manager for such Third-Party Operated
Areas, shall be subject to approval of both Owner and Manager; provided, that Manager, at its
option, shall have the right to control the process of selecting any Third-Party Managers,
including the right to conduct a request for proposals to select the Third-Party Managers, which
selection shall be subject to the approval by Owner. Any lease, operating agreement, franchise
agreement or similar agreement with a Third-Party Manager shall: (i) be consistent with the terms
of this Agreement; (ii) allow Manager to operate the Hotel in accordance with the Hotel Standard
and the terms of this Agreement; (iii) require the Third-Party Managers to operate the Third-Party
Operated Areas in accordance with the Hotel Standard and all other terms of this Agreement; and
(iv) be subject to the review and prior written approval of both Owner and Manager. All rents,
fees and other amounts received by or on behalf of Owner from the operation of Third-Party Operated
Areas shall be included in Gross Operating Revenue.

ARTICLE 12

GAMING LAW PROVISIONS

     12.1 Regulatory Cooperation. Manager shall cooperate and support Owner in connection
with the preparation and prosecution of all applications required or deemed prudent by Owner for
regulatory licenses, permits, registrations and other Approvals in connection with licensing and
suitability determinations for the new equity owners of Owner, the implementation of any aspect of
this Agreement and the transition of the Operation of the Hotel to a third party during the
Transition Period.

ARTICLE 13

FINANCING

     13.1 Mortgages; Collateral Assignments. Owner shall have the right to grant a Mortgage
or Security Interest to a Lender in connection with any Financing, and to assign to any Lender as
collateral security for any Financing, all of Owner’s right, title and interest in and to this
Agreement. In connection therewith, the Parties shall enter into a subordination and
non-disturbance and attornment agreement incorporating customary and market terms and reasonably
satisfactory to Manager and the Lender, provided that such form shall provide that (a) this
Agreement shall survive any foreclosure or deed-in-lieu of foreclosure of the Hotel at the sole
option of Owner and (b) Manager’s right to payment of fees and other amounts under this Agreement
shall be subject and subordinate to the Lender’s right to payment under the Financing Documents, to
the extent provided in Section 13.2.

     13.2 Subordination of Fees. The Base Management Fee and the Incentive Management Fee
shall not be subordinated to the secured and/or unsecured financing in place at

36

 

the exit of the Company from bankruptcy or any other financing with respect to which any
Affiliates of Owner hold interests that are sufficient (or more than sufficient) in the aggregate
to give them voting control of the outstanding obligations and/or commitments thereunder, and all
fees, expenses and other amounts that would otherwise be due and payable under this Agreement shall
continue to be payable to Manager during any default or event of default under any such financing.
Notwithstanding the foregoing, the Base Management Fee and the Incentive Management Fee shall be
subordinated to any future secured and/or unsecured financing with respect to which, at the time of
origination, either no Affiliates of Owner hold any interest or Affiliates of Owner hold interests
that are not sufficient in the aggregate to give them voting control of the outstanding obligations
and/or commitments thereunder, provided that so long as there is no event of default under any such
financing such fees shall be paid when due.

     13.3 Lender’s Right of Access. Upon reasonable advance notice from a Lender (which
notice may be given verbally in connection with an emergency or upon the occurrence of an event of
default under any Financing Documents), Manager shall permit and cooperate with such Lender and its
agents and representatives to enter any part of the Hotel at any reasonable time for the purposes
of examining or inspecting the Hotel, or examining or copying the books and records of the Hotel;
provided, however, that any expenses incurred in connection with such activities shall be Operating
Costs of the Hotel.

     13.4 Estoppel Certificates. Within ten (10) days after a written request therefor by
Owner, Manager shall issue to Owner or any Lender an estoppel certificate, comfort letter or such
other document as may be reasonably requested by Owner: (a) certifying that this Agreement has not
been modified and is in full force and effect (or, if there have been modifications, specifying the
modifications and certifying that the same is in full force and effect as modified); and (b)
stating whether, to the knowledge of Manager, any default by Owner exists, and if so, specifying
each default of which Manager has knowledge. Within ten (10) days after a written request therefor
by Manager, Owner shall issue to Manager an estoppel certificate, comfort letter or such other
document as may be reasonably requested by Manager: (i) certifying that this Agreement has not been
modified and is in full force and effect (or, if there have been modifications, specifying the
modifications and certifying that the same is in full force and effect as modified); and (ii)
stating whether, to the knowledge of Owner, any default by Manager exists, and if so, specifying
each default of which Owner has knowledge.

     13.5 Required Amendments. In the event any Lender or proposed Lender, directly or
indirectly as a condition of closing the proposed Financing, requires any commercially reasonable
modification of any terms or provisions of this Agreement, the Parties shall comply with such
request; provided, however, Manager shall be under no obligation to consent to any requested
modification or amendment to this Agreement that would increase Manager’s obligations under this
Agreement or diminish the fees or reimbursements becoming due to Manager hereunder.

     13.6 Title; Compliance with Mortgage, Ground Lease and CC&R’s. Manager, to the extent
it or any of its Affiliates has or has been provided true and accurate copies of any Mortgage,
ground lease or CC&R’s encumbering the Hotel, shall use commercially reasonable and diligent
efforts not to cause any violation of the covenants and conditions thereof.

37

 

ARTICLE 14

INSURANCE

     14.1 Insurance Requirements. Manager shall procure and maintain the policies of
insurance, in the names and with the coverages and limits, described in Schedule E or such
other policies, in such other names or with such other coverages or limits, as may hereafter be
designated by Owner from time to time. All premiums and other costs of such insurance, and any
applicable deductibles or co-insurance requirements, shall be the responsibility of Owner and shall
be paid in accordance with Section 15.1.

ARTICLE 15

BANK ACCOUNTS

     15.1 Administration of Bank Accounts. Manager shall establish, as agent for Owner, a
bank account or accounts at a bank or other financial institution designated by Owner and approved
by Manager (“Bank Accounts”). The Bank Accounts shall be in the name of Owner, doing
business as the Hotel, shall be owned by Owner and shall use the taxpayer identification number of
Owner. Manager shall not commingle the funds in any such Bank Account with any funds of Manager or
any Affiliate of Manager. The Bank Accounts shall be interest-bearing accounts if such accounts
are reasonably available and shall be maintained in accordance with the Financing Documents.
Manager shall deposit into the Bank Accounts all moneys received by Manager from the operations of
the Hotel. The Bank Accounts may include sub-accounts for specific purposes, such as restaurant
and bar, parking and travel agent commission accounts (all such sub-accounts opened by Manager for
specific purposes shall be referred to as the “Sub-Accounts”) into which Manager may
deposit or transfer funds for payment to third parties. Manager, on behalf of Owner, shall have
sole control of the Bank Accounts and Sub-Accounts and shall pay out of the same, to the extent of
the funds from time to time therein, all costs and Operating Costs incurred in connection with the
Operation of the Hotel and in accordance with this Agreement, including, without limitation, Hotel
Personnel Costs, the Base Management Fee and Incentive Management Fee, and the Owner’s Expenses,
any other amounts due Manager or its Affiliates under this Agreement; and all other costs and
expenditures which Manager is permitted or required to make pursuant to this Agreement. If
permitted by the operating system of the depository bank and requested by Owner, Owner shall be
provided with “read-only” internet access to the Bank Accounts permitting Owner to examine balances
and activity in the Bank Accounts but not permitting actions affecting or relating to the deposit
or withdrawal of funds in such Bank Accounts. Manager shall establish controls intended to ensure
accurate reporting, safety and security of all transactions involving the Bank Accounts.

     15.2 Authorized Signatories. Individuals designated by Manager and specifically
approved by Owner shall be the only Persons authorized to make deposits into, and draw funds from,
the Bank Accounts in accordance with this Agreement. Manager shall establish such reasonable
controls to ensure accurate reporting of all transactions involving the Bank Accounts as Manager,
consistent with commercially reasonable business procedures and practices in light of the size and
nature of the operations at the Hotel, reasonably deems necessary or advisable.

38

 

Manager shall provide Owner, on a monthly basis and as requested by Owner, copies of bank
statements with respect to the Bank Accounts.

     15.3 Deposit and Disbursement of Funds. All revenues from the Operation of the Hotel
shall be deposited by Manager in the Bank Accounts. Unless the Parties agree otherwise, Manager
shall disburse to Owner each day, as directed by Owner, any funds remaining in the Bank Accounts
and the Accounts in excess of the sum of (a) all Operating Costs (including any installments of the
Base Management Fee and Incentive Management Fee) then due and unpaid and (b) $10,000,000.

     15.4 Cash Accounts. In addition to the Bank Accounts and Sub-Accounts, Manager shall
be entitled to maintain such funds as it reasonably deems proper in house banks or in petty cash
funds at the Hotel (all such accounts being referred to collectively as the “Accounts”).
All of the funds in the Accounts shall belong to Owner and Manager shall not commingle its own, or
any third party’s funds, with the funds in any of the Accounts.

ARTICLE 16

EXCUSED NON-PERFORMANCE

16.1 Excused Non-Performance. Notwithstanding any contrary provision of this Agreement,
each Party shall be excused from the performance of any obligation hereunder (including Manager’s
obligation to Operate the Hotel in conformity with the Hotel Standard), and shall not be deemed in
default, for such period of time as such performance is prevented by a Force Majeure Event, a
breach of this Agreement by the other Party or (in the case of Manager) a limitation imposed on
Manager’s ability to expend funds in respect of the Hotel, due to Owner’s act or a shortage of
funds in the Bank Accounts and the Accounts (provided Manager has provided Owner with reasonably
timely notice of the need for additional funds and that the failure to expend funds by reason of
the operation of such limitation shall reasonably prevent Manager from meeting such obligation).

ARTICLE 17

MISCELLANEOUS

     17.1 Entire Agreement. This Agreement constitutes the complete agreement of the
Parties with respect to the subject matter hereof and supersede all prior discussions, negotiations
and understandings.

     17.2 Amendment. Except with respect to any automatic amendment of this Agreement as
set forth in Section 4.4, this Agreement may be amended, modified or supplemented only in a
written document signed by each of the Parties.

     17.3 Notices. Any written notice to be given hereunder shall be deemed given: (a)
when received if given in person or by courier; (b) on the date of transmission if sent by
telecopy, e-mail or other wire transmission (receipt confirmed); (c) three days after being
deposited in the U.S. mail, certified or registered mail, postage prepaid; and (d) if sent by an
internationally recognized overnight delivery service, the second day following the date given to

39

 

such overnight delivery service (specified for overnight delivery). All notices shall be
addressed as follows:

If to Manager, addressed as follows:

Station Casinos LLC

1505 South Pavilion Center Drive

Las Vegas, Nevada 89135

Attention: General Counsel

Telephone: (702) 495-4256

Facsimile: (702) 495-4252

with a copy (which shall not constitute notice) to:

Milbank, Tweed, Hadley & McCloy, LLP

601 South Figueroa Street, 30th Floor

Los Angeles, California 90017

Attention: Ken Baronsky

Telephone: (213) 892-4000

Facsimile: (213) 629-5063

If to Owner, addressed as follows:

Aliante Gaming, LLC

1505 South Pavilion Center Drive

Las Vegas, Nevada 89135

Attention: General Counsel

Telephone: (702) 495-4256

Facsimile: (702) 495-4252

with a copy (which shall not constitute notice) to:

Paul, Weiss, Rifkind, Wharton & Garrison LLP

1285 Avenue of the Americas

New York, NY 10019-6064

Attention: Alan W. Kornberg and Jeffrey D. Saferstein

Telephone: (212) 373-3000

Facsimile: (212) 757-3990

and to:

Lionel Sawyer & Collins

1100 Bank of America Plaza

50 West Liberty St.

Reno, NV 89501

Attention: Dan R. Reaser

Telephone: (775) 788-8619

Facsímile: (775) 788-8682

40

 

     17.4 Waivers. The failure of a Party to require performance of any provision hereof
shall not affect its right at a later time to enforce the same. No waiver by a Party of any term,
covenant, representation or warranty contained herein shall be effective unless in writing. No
such waiver in any one instance shall be deemed a further or continuing waiver of any such term,
covenant, representation or warranty in any other instance.

     17.5 Assignment. This Agreement shall inure to the benefit of, and shall be binding
upon, the successors and permitted assigns of each of the Parties hereto, including any committee,
trustee or examiner with extended powers that is subsequently appointed in a bankruptcy case of any
of the Parties, and the Successor Owner whether or not in contractual privity with Owner, and in
particular no successor or assign of any Party may object or otherwise collaterally attack the
relief provided to the Parties hereunder under any theory and in particular may not object to,
withdraw or modify any claim allowed or limited herein or any waiver herein granted by any Party.
Owner may not assign the benefits of this Agreement separately from the obligations hereunder and
shall only assign this Agreement (and the benefits and obligations hereunder) to a transferee of
Owner’s right, title and interest in and to the Hotel who agrees in writing to assume this
Agreement. Any transferee of the Hotel, including any lenders or any designee thereof pursuant to
a deed in lieu of foreclosure, or any person purchasing at a foreclosure sale or sale pursuant to
Section 363 of the bankruptcy code, shall agree as a condition to acquiring the Hotel to perform
all payment obligations in favor of Manager hereunder, including payment of the Management Fee
after early termination of Manager (to the extent a payment obligation exists pursuant to the terms
hereof), regardless of whether such termination occurred before or after the Hotel is transferred.
Manager may not assign any benefits or burdens hereunder without Owner’s prior written consent.

     17.6 Counterparts. This Agreement may be executed and delivered in any number of
counterparts, each of which, when executed and delivered, shall be deemed an original, and all of
which together shall constitute the same Agreement. This Agreement may also be executed by
facsimile or electronic signature.

     17.7 Headings. The headings of all sections of this Agreement are inserted solely for
the convenience of reference and are not a part of and are not intended to govern, limit, or aid in
the construction or interpretation of any term or provision hereof.

     17.8 Time of the Essence. To the extent that performance is to be governed by time,
time shall be deemed to be of the essence hereof.

     17.9 Applicable Law. This Agreement shall be governed by and construed and enforced
in accordance with the internal laws, and not the laws of conflicts, of the State of Nevada.

     17.10 Dispute Resolution.

          (a) In the event of a dispute between the Parties arising out of this Agreement, the Parties
shall attempt in good faith to resolve the same within fifteen (15) days after one Party gives
written notice thereof to the other Party.

41

 

          (b) If the Parties are unable to resolve a dispute as aforesaid, either Party shall have the
right to submit such dispute to arbitration by giving the other Party a written notice (an
“Arbitration Notice”) specifying the nature of the dispute and stating that such dispute
shall be determined in accordance with this Section 17.10(b). Any such arbitration shall
be conducted in Las Vegas, Nevada, in accordance with the Commercial Arbitration Rules (Expedited
Procedures) of the American Arbitration Association (the “AAA”), except that the provisions
of this Section 17.10(b) shall supersede any conflicting provision of such rules. Each
Party shall appoint an arbitrator within five (5) days after the delivery of an Arbitration Notice,
and if either Party shall fail timely to appoint an arbitrator the arbitrator appointed by the
other Party shall select an unrelated Person as the second arbitrator within four (4) days after
the expiration of such five (5) day period. The two arbitrators so appointed shall, if possible,
determine such matter within ten (10) after both of them are appointed. If such arbitrators are
unable for any reason to agree on such matter within such ten (10) day period, then any Party may
request JAMS/Endispute or any other arbitration organization, including the AAA, agreed to by the
Parties to provide an impartial third arbitrator and the Parties shall be bound by any appointment
so made. Within five (5) days after the third arbitrator has been appointed, each of the first two
arbitrators shall submit their respective determinations to the third arbitrator, who must select
one or the other of such determinations (whichever the third arbitrator believes to be closest to a
correct determination) within ten (10) days after the expiration of such five (5) day period, and
the selection so made shall in all cases be binding upon the Parties, and judgment upon such
selection may be entered in any court having jurisdiction. During such ten (10) day period, the
third arbitrator may schedule a hearing where the Parties and their advocates present evidence,
call witnesses and experts and cross-examine the other Party’s witnesses and experts. In the event
of the failure of an arbitrator to act for any reason, a successor shall be appointed within ten
(10) days of such failure using the same process by which such arbitrator was appointed. The
arbitrators conducting any arbitration shall be bound by the terms of this Agreement and shall not
have the power to add to, subtract from or otherwise modify any provision in this Agreement. Each
Party agrees to sign all documents and to do all other things necessary to submit any such matter
to arbitration and hereby waives any right it may at any time have to revoke its agreement
hereunder that it shall submit to arbitration and shall abide by the decision rendered thereunder.
The substantially prevailing Party shall be entitled to receive from the other Party payment of all
fees and expenses (including reasonable attorneys’ fees and expenses) incurred by the substantially
prevailing Party in connection with such arbitration.

     17.11 Enforcement. Notwithstanding anything to the contrary contained in Section
17.10, either Party shall be entitled to commence legal proceedings in a court of competent
jurisdiction (a) seeking such mandatory, declaratory or injunctive relief as may be necessary to
define or protect the rights and enforce the obligations contained in this Agreement pending the
resolution of any dispute in accordance with Section 17.10 or (b) involving the enforcement
of an arbitration decision or award arising out of this Agreement. The substantially prevailing
Party shall be entitled to receive from the other Party payment of all fees and expenses (including
reasonable attorneys’ fees and expenses) incurred by the substantially prevailing Party in
connection with such proceedings.

     17.12 No Third-Party Beneficiaries. This Agreement is solely for the benefit of the
Parties and those other persons or entities specifically described herein, and, except as
aforesaid, no provision of this Agreement shall be deemed to confer any remedy, claim or right upon
any third party.

42

 

     17.13 Incorporation. Any Schedules and Appendices attached hereto and
referred to herein are incorporated into and form a part of this Agreement.

     17.14 Negotiated Agreement. This Agreement is the product of negotiations of the
Parties, and in the enforcement or interpretation hereof, is to be interpreted in a neutral manner,
and any presumption with regard to interpretation for or against any Party by reason of that Party
having drafted or caused to be drafted this Agreement, or any portion hereof, shall not be
effective in regard to the interpretation hereof.

     17.15 Currency. All amounts due hereunder shall be invoiced and paid in United States
Dollars.

     17.16 Further Assurances. The Parties agree to execute and deliver such other
instruments and perform such acts, in addition to the matters herein specified, as may be
appropriate or reasonably necessary, from time to time, to effectuate the agreements and
understandings of the Parties, whether the same occur before or after the date of this Agreement.

     17.17 Compliance with Laws. Each Party shall comply with all applicable laws, rules,
regulations and orders of the United States, all other jurisdictions and any agency or court
thereof relating to the performance of such Party’s obligations under this Agreement.

     17.18 Relationship of the Parties. The relationship between the Parties to this
Agreement is that of independent contractors. Under no circumstances shall either Party be deemed
an agent or representative of the other Party. Neither Party shall have authority to act for or
bind any other Party in any way, or represent that it is in any way responsible for acts of any
other Party. Nothing in this Agreement shall be construed or interpreted to create a relationship
between the Parties (or their designees, contractors, employees or representatives) of partner,
joint venturer, principal and agent, or employer and employee.

     17.19 Expenses. Except as otherwise expressly set forth in this Agreement, each Party
hereto shall bear its own expenses incurred in connection with the negotiation, documentation,
execution of this Agreement and with respect to the transactions contemplated by this Agreement.
For avoidance of doubt, this provision shall not limit the reimbursement of legal expenses incurred
by Manager in connection with the discharge of its duties as manager hereunder that are incurred in
connection with the performance or delivery of Services.

     17.20 Non-Recourse. The Parties acknowledge that none of the members of Owner and no
past, present or future director, officer, committee member, employee, incorporator, member,
partner or direct or indirect equity holder of Owner (such Persons, the “Non-Recourse
Parties”) is a party to this Agreement. The Parties further acknowledge that none of the
Non-Recourse Parties, whether individually or collectively, shall have any liability whatsoever of
any kind or description for any obligations or liabilities of Owner under this Agreement or for any
claim based on, in respect of, or by reason of, the transactions contemplated hereby or thereby.
Accordingly, the Parties hereby agree that in the event (i) there is any alleged breach or alleged
default or breach or default by any Party under this Agreement, or (ii) any Party has or may have
any claim arising from or relating to the terms of this Agreement, no Party shall, or shall have

43

 

any right to, commence any proceedings or otherwise seek to impose any liability or obligation
whatsoever of any kind or description on or against the Non-Recourse Parties, whether collectively
or individually, by reason of such alleged breach, default or claim.

*   *   *   *   *

[Signature Page Follows]

44

 

     IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and delivered
as of the Effective Date.

	 	 	 	 	 
	 	Manager:

STATION CASINOS LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Management Agreement

 

 

	 	 	 	 	 
	 	Owner:

ALIANTE GAMING, LLC

a Nevada limited liability company

By: ALST Casino Holdco, LLC,

       its Managing Member

 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Signature Page to Management Agreement

 

 

SCHEDULE A

Operating Costs

“Operating Costs” means all costs and expenses of maintaining, conducting and supervising
the operation of the Hotel which are properly attributable to the period of determination,
including:

     (i) the cost of sales of all food, beverages, other goods and services sold or consumed by the
Hotel and of all Operating Supplies and Operating Consumables, with the exception of the cost of
food, beverages, services and other items sold or consumed by concessionaires and other third party
vendors leasing space in the Hotel;

     (ii) salaries, wages and other benefits of the personnel employed by Owner with respect to the
Hotel, including costs of payroll taxes and employee benefits, and the fees and expenses, including
travel expenses, of third-party consultants;

     (iii) the cost of all other materials, supplies, goods and services used in connection with
the operation of the Hotel including heat and utilities, trash removal, office supplies, security
and all other services performed by third parties, telephone and data processing equipment and
other equipment;

     (iv) the cost of repairs to and maintenance of the Hotel, to the extent not paid from the
actual cash proceeds of any fire or casualty insurance after deducting necessary expenses in
connection with the adjustment or collection of such proceeds;

     (v) insurance and bonding premiums with respect to the Hotel, including property damage
insurance, public liability insurance, workers’ compensation insurance, or insurance required by
similar employee benefits acts and such business interruption or other insurance as may be provided
for protection against claims, liabilities and losses incurred with respect to deductibles
applicable to the foregoing types of insurance;

     (vi) all taxes, assessments, water/sewer charges, and other fees and charges (other than
federal, state or local income taxes and franchise taxes or the equivalent) payable by or assessed
against the Hotel with respect to the operation of the Hotel;

     (vii) legal, consulting, lobbying, political and charitable contributions, accounting and
other fees for professionals for services related to the operation of the Hotel and to transition
services provided to a new owner and/or manager of the Hotel;

     (viii) all expenses for marketing the Hotel, including all expenses of advertising, sales,
promotion and public relations activities; and

     (ix) all excise, sales, gross receipts, admission, entertainment, tourist or use taxes, gaming
taxes and device fees, real estate taxes, ad valorem taxes, personal property

A-1

 

taxes, utility taxes and other taxes (as those terms are defined by GAAP), assessments for
public improvements, and municipal, county and state license and permit fees.

Operating Costs shall include Owner’s Allocation of Shared Expenses. The method of
calculating Shared Expenses shall be that used during the Lookback Period and shall fairly
distribute the costs of shared employees and services among all properties for which Manager or its
Affiliates provides such employees and performs such services, provided, however, that such
allocation will be fair and equitable and will not discriminate against the Hotel as compared with
the allocation of such expenses among other properties operated by Manager and its Affiliates, as
applicable.

“Operating Consumables” means all food, beverages and other immediately consumable items
utilized in operating the Hotel, such as soap, cleaning materials, matches, stationery, brochures,
folios, and other similar items.

“Operating Supplies” means all non-capital equipment necessary for the day-to-day operation
of the Project, including chips, tokens, uniforms, playing cards, glassware, linens, silverware,
utensils and dishware.

“Shared Expenses” means Manager’s or its Affiliates’ (as the case may be) allocated
out-of-pocket costs (not including any mark-up or other profit margin) for Senior Executive
Personnel and shared employees and for Shared Services related to the Hotel. Shared Expenses may
include the costs incurred by the Manager or its Affiliates for group purchasing items and/or
direct salary and wages (including, without limitation, employer’s contributions under FICA,
unemployment compensation or other employment taxes, and regular pension fund contributions,
worker’s compensation, group life, accident, health and other health insurance premiums, profit
sharing, and retirement plans, disability and other similar benefits) paid to or accrued for the
benefit of Senior Executive Personnel and of employees that are assigned to perform a function for
Owner that otherwise would be filled by an employee of, or third party provider to, Owner, prorated
to the extent actually attributable to each such employee’s actual time incurred for the benefit of
Owner. The method of computing various Shared Expenses is proprietary and confidential information
of Manager and its Affiliates and has been provided to Owner in confidence in a separate
confidential writing.

A-2

 

SCHEDULE B

Senior Executive Personnel

	 	 	 
	Position	 	Individual Occupying Position as of Effective Date
	Director of Hotel Operations

	 	HERRERA, CHRISTIANE LEIGH
	VP/General Manager

	 	THOMPSON, CAROL A.
	Table Games Shift Manager

	 	TAIT, JAMES B.
	Executive Chef

	 	TRETIAK, CHAD A.
	Director of Facilities

	 	HICKEN, WILLIAM R.
	Director of Table Games

	 	NOVAK, TERRY W.
	Table Games Shift Manager

	 	GELLNER, CHRISTOPHER R.
	Director of Marketing

	 	GERAMI, KRISTEN JOYCE
	Director of Sales

	 	BOWERS, LINDA MARIE
	Director of F&B

	 	BRAY, JOHN
	Director of Human Resources

	 	HILTON, TERESA LOUISE
	Director of Slots

	 	LITTLE, BRANDON M.
	National Sales Manager

	 	WOODS, JERAMY M.
	Director of Finance

	 	DORSEY, JERRY GENE
	Director of R&S

	 	MEEKER, JACKSON
	Controller

	 	MARTELLARO, GARY
	Director of Surveillance

	 	WAGNER, MARC
	Director of Security

	 	EDER, PAUL
	Controller

	 	WILLIAMS, MELANIE
	Assistant Director F&B

	 	DELACRUZ, WINNJAY
	Room Manager — Restaurant

	 	GUTIERREZ, RON

B-1

 

SCHEDULE C

The computer systems, reservation systems and other support services (proprietary and
non-proprietary) used in connection with the operation of the Hotel and regularly provided by
Manager and/or its Affiliates to Owner.

C-1

 

SCHEDULE D

Shared Services

“Shared Services” means any of the following activities in connection with maintaining, and
conducting and supervising the operation of, the Hotel which are properly attributable to the Hotel
during the period of determination, except in each case to the extent that Owner elects in
accordance with the further provisions of this Schedule not to have the Hotel share services with
respect to such activities with other properties owned or operated by Manager or any of its
Affiliates:

procurement and management of all food, beverages, other goods and services sold or consumed by the
Hotel and of all Operating Supplies and Operating Consumables, with the exception of the cost of
food, beverages, services and other items sold or consumed by concessionaires and other third party
vendors leasing space in the Hotel;

procurement of all other materials, supplies, goods and services used in connection with the
operation of the Hotel including heat and utilities, trash removal, office supplies, security
telephone and data processing equipment and other equipment;

repairs to and maintenance of the Hotel, to the extent not paid from the actual cash proceeds of
any fire or casualty insurance after deducting necessary expenses in connection with the adjustment
or collection of such proceeds;

risk management, procurement of insurance and bonds with respect to the Hotel, including property
damage insurance, public liability insurance, workers’ compensation insurance, or insurance
required by similar employee benefits acts and such business interruption or other insurance as may
be provided for protection against claims, liabilities and losses incurred with respect to
deductibles applicable to the foregoing types of insurance;

management and accounting for all taxes, assessments, water/sewer charges, and other fees and
charges (other than federal, state or local income taxes and franchise taxes or the equivalent)
payable by or assessed against the Hotel with respect to the operation of the Hotel;

legal, consulting, lobbying, political and charitable contributions, accounting and other fees for
professionals for services related exclusively to the operation of the Hotel and to transition
services provided to a new owner and/or manager of the Hotel;

centralized record keeping, data processing, payroll, switchboard, reservations, live entertainment
and other booking, banking, human resources, personnel benefits (provided by an Affiliate of
Manager only, Manager shall not provide personnel benefits), information technology, race and
sports book, regulatory compliance, operations

D-1

 

management, security management, room rate management, purchasing, design and construction;

marketing the Hotel, including media purchases, advertising, brand development, sales, special
promotions, database marketing, and public relations activities;

in-house production activities, including publications for human resources, video production,
commercials, sign animation, web-site, etc.;

management and accounting for all excise, sales, gross receipts, admission, entertainment, tourist
or use taxes, gaming taxes and device fees, real estate taxes, ad valorem taxes, personal property
taxes, utility taxes and other taxes (as those terms are defined by GAAP), assessments for public
improvements, and municipal, county and state license and permit fees;

processing of direct mail; and

any other activities with respect to which Manager and/or its Affiliates may offer from time to
time to provide services on a shared basis for the Hotel and one or more other properties owned or
operated by Manager or any of its Affiliates.

Owner shall have the right from to time to elect, by giving not less than 30 days’ written notice
thereof to Manager, (a) not to have the Hotel share services with respect to any of the foregoing
activities with other properties owned or operated by Manager or any of its Affiliates, in which
event such activities shall no longer constitute “Shared Services” hereunder and shall be performed
separately for the Hotel in the same manner as Management Services which do not constitute Shared
Services hereunder, or (b) to have the Hotel share services with respect to any of the foregoing
activities with other properties owned or operated by Manager or any of its Affiliates, in which
event such activities shall constitute “Shared Services” hereunder.

D-2

 

SCHEDULE E

Insurance Requirements

(See attached.)

E-1

 

SCHEDULE F

Marketing Restrictions

1. Marketing in Restricted Area.

     (a) Owner and Manager (and their respective Affiliates) shall have the right to distribute or
cause to be distributed (whether by mail, courier, facsimile transmission, personal delivery,
television, radio, internet, electronic mail or otherwise) marketing or similar content or
materials (“Marketing Materials”) to specific Persons known or believed to reside in any of
zip codes 89115, 89131, 89156, 89165, 89191, 89031, 89033, 89081, 89084, 89085 and 89086
(collectively, the “Restricted Area”) only if such Marketing Materials (i) relate
exclusively to the Hotel (and not to any other properties) or (ii) in the case of distributions by
or on behalf of Manager or any of its Affiliates, (x) relate to all properties owned or managed by
Manager and its Affiliates, (y) feature the Hotel more prominently than the other such properties
(the “Other Properties”), and (z) include no offers or solicitations applicable to any
Other Property which are more favorable than those applicable to the Hotel.

     (b) Without limiting the provisions of Section 1(a) of this Schedule, for every
distribution within the Restricted Area of Marketing Materials relating to Other Properties,
Manager shall distribute or cause to distributed outside the Restricted Area to targets designated
or approved by Owner Marketing Materials relating to the Hotel of substantially the same volume or
circulation and in substantially the same form and medium. Owner acknowledges and agrees that such
Marketing Materials may also feature (with greater, lesser or equal prominence) Other Properties;
provided, that such Marketing Materials shall include no offers or solicitations applicable
to any Other Property which are more favorable than those applicable to the Hotel.

     (c) Notwithstanding anything in this Section 1 or elsewhere to the contrary, Manager
shall not (and shall cause its Affiliates not to) install, maintain or arrange, directly or
indirectly, any billboard, sign or other similar advertisement within the Restricted Area for any
Other Property.

2. In-Hotel Marketing.

     (a) Manager shall not (and shall cause its Affiliates not to) permit marketing or similar
content or materials within the Hotel (including without limitation in directories or in television
programming generated by or on behalf of the Hotel) for any Other Property, unless such materials
(i) relate to all properties owned or managed by Manager and its Affiliates (including the Hotel)
and (ii) include no offers or solicitations applicable to any Other Property.

     (b) In the event that Manager or any of its Affiliates conducts any promotional or like
activity, event or other program (including, by way of illustration only and without

F-1

 

limitation, progressive jackpots and “car-a-day” promotions) at any of the properties owned or
managed by it, then Manager and its Affiliates shall be required to offer to conduct such activity,
event or program at the Hotel on terms and conditions that are reasonably satisfactory to the
parties and that are no less favorable to the Hotel than those offered to other properties managed
by Manager or any of its Affiliates for third parties.

F-2

 

SCHEDULE G

Initial Annual Budget

(See attached.)

G-1

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00195-of-00352.parquet"}]]