Document:

Exhibit 4.1

 

EXECUTION COPY

 

 

HARRAH’S OPERATING COMPANY,

INC.

Issuer

 

HARRAH’S ENTERTAINMENT, INC.

Guarantor

 

INDENTURE

 

Dated as of May 27, 2005

 

 

U.S. BANK NATIONAL ASSOCIATION

 

Trustee

 

 

 

TABLE CONTENTS

 

	
  ARTICLE I.
  DEFINITIONS AND INCORPORATION BY REFERENCE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 1.1

  	
  Definitions

  	
   

  
	
   

  	
  Section 1.2

  	
  Incorporation
  by Reference of Trust Indenture Act

  	
   

  
	
   

  	
  Section 1.3

  	
  Rules of
  Construction

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II. THE NOTES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 2.1

  	
  Terms
  of the Notes

  	
   

  
	
   

  	
  Section 2.2

  	
  Execution
  and Authentication

  	
   

  
	
   

  	
  Section 2.3

  	
  Registrar
  and Paying Agent

  	
   

  
	
   

  	
  Section 2.4

  	
  Paying
  Agent to Hold Money in Trust

  	
   

  
	
   

  	
  Section 2.5

  	
  Noteholder
  Lists

  	
   

  
	
   

  	
  Section 2.6

  	
  Intentionally
  Omitted

  	
   

  
	
   

  	
  Section 2.7

  	
  Mutilated,
  Destroyed, Lost and Stolen Notes

  	
   

  
	
   

  	
  Section 2.8

  	
  Outstanding
  Notes

  	
   

  
	
   

  	
  Section 2.9

  	
  Treasury
  Notes

  	
   

  
	
   

  	
  Section 2.10

  	
  Temporary
  Notes

  	
   

  
	
   

  	
  Section 2.11

  	
  Cancellation

  	
   

  
	
   

  	
  Section 2.12

  	
  Defaulted
  Interest

  	
   

  
	
   

  	
  Section 2.13

  	
  Global
  Notes

  	
   

  
	
   

  	
  Section 2.14

  	
  Transfer
  and Exchange

  	
   

  
	
   

  	
  Section 2.15

  	
  Payments

  	
   

  
	
   

  	
  Section 2.16

  	
  CUSIP Numbers

  	
   

  
	
   

  	
  Section 2.17

  	
  Mandatory Disposition of Notes
  Pursuant to Gaming Laws

  	
   

  
	
   

  	
  Section 2.18

  	
  Additional Notes

  	
   

  
	
   

  	
  Section 2.19

  	
  Additional Interest Under Registration
  Rights Agreements

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III.
  REDEMPTION

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 3.1

  	
  Optional Redemption

  	
   

  
	
   

  	
  Section 3.2

  	
  Notice to Trustee

  	
   

  
	
   

  	
  Section 3.3

  	
  Selection of Notes to be Redeemed

  	
   

  
	
   

  	
  Section 3.4

  	
  Notice of Redemption

  	
   

  
	
   

  	
  Section 3.5

  	
  Effect of Notice of Redemption

  	
   

  
	
   

  	
  Section 3.6

  	
  Deposit of Redemption Price

  	
   

  
	
   

  	
  Section 3.7

  	
  Notes Redeemed in Part

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV. COVENANTS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 4.1

  	
  Payment of Principal and Interest

  	
   

  
	
   

  	
  Section 4.2

  	
  SEC Reports

  	
   

  
	
   

  	
  Section 4.3

  	
  Compliance Certificate

  	
   

  
	
   

  	
  Section 4.4

  	
  Stay, Extension and Usury Laws

  	
   

  
	
   

  	
  Section 4.5

  	
  Corporate
  Existence

  	
   

  
	
   

  	
  Section 4.6

  	
  Taxes

  	
   

  

 

i

 

	
   

  	
  Section 4.7

  	
  Limitation
  on Liens

  	
   

  
	
   

  	
  Section 4.8

  	
  Limitation on Sale-Lease Back
  Transactions

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V. SUCCESSORS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 5.1

  	
  When Company May Merge, Etc

  	
   

  
	
   

  	
  Section 5.2

  	
  Successor Corporation Substituted

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI.
  DEFAULTS AND REMEDIES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 6.1

  	
  Events of Default

  	
   

  
	
   

  	
  Section 6.2

  	
  Acceleration of Maturity; Rescission
  and Annulment

  	
   

  
	
   

  	
  Section 6.3

  	
  Collection of Indebtedness and Suits
  for Enforcement by Trustee

  	
   

  
	
   

  	
  Section 6.4

  	
  Trustee May File Proofs of Claim

  	
   

  
	
   

  	
  Section 6.5

  	
  Trustee May Enforce Claims
  Without Possession of Notes

  	
   

  
	
   

  	
  Section 6.6

  	
  Application of Money Collected

  	
   

  
	
   

  	
  Section 6.7

  	
  Limitation on Suits

  	
   

  
	
   

  	
  Section 6.8

  	
  Unconditional Right of Holders to
  Receive Principal and Interest

  	
   

  
	
   

  	
  Section 6.9

  	
  Restoration of Rights and Remedies

  	
   

  
	
   

  	
  Section 6.10

  	
  Rights and Remedies Cumulative

  	
   

  
	
   

  	
  Section 6.11

  	
  Delay or Omission Not Waiver

  	
   

  
	
   

  	
  Section 6.12

  	
  Control by Holders

  	
   

  
	
   

  	
  Section 6.13

  	
  Waiver of Past Defaults

  	
   

  
	
   

  	
  Section 6.14

  	
  Undertaking for Costs

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII. TRUSTEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 7.1

  	
  Duties of Trustee

  	
   

  
	
   

  	
  Section 7.2

  	
  Rights of Trustee

  	
   

  
	
   

  	
  Section 7.3

  	
  Individual Rights of Trustee

  	
   

  
	
   

  	
  Section 7.4

  	
  Trustee’s Disclaimer

  	
   

  
	
   

  	
  Section 7.5

  	
  Notice of Defaults

  	
   

  
	
   

  	
  Section 7.6

  	
  Reports by Trustee to Holders

  	
   

  
	
   

  	
  Section 7.7

  	
  Compensation and Indemnity

  	
   

  
	
   

  	
  Section 7.8

  	
  Replacement of Trustee

  	
   

  
	
   

  	
  Section 7.9

  	
  Successor Trustee by Merger, etc

  	
   

  
	
   

  	
  Section 7.10

  	
  Eligibility; Disqualification

  	
   

  
	
   

  	
  Section 7.11

  	
  Preferential Collection of Claims
  Against Company

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.
  SATISFACTION AND DISCHARGE; DEFEASANCE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 8.1

  	
  Satisfaction and Discharge of
  Indenture

  	
   

  
	
   

  	
  Section 8.2

  	
  Application of Trust Funds;
  Indemnification

  	
   

  
	
   

  	
  Section 8.3

  	
  Legal Defeasance of Notes

  	
   

  
	
   

  	
  Section 8.4

  	
  Covenant Defeasance

  	
   

  
	
   

  	
  Section 8.5

  	
  Repayment to Company

  	
   

  

 

ii

 

	
  ARTICLE IX.
  AMENDMENTS AND WAIVERS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 9.1

  	
  Without Consent of Holders

  	
   

  
	
   

  	
  Section 9.2

  	
  With Consent of Holders

  	
   

  
	
   

  	
  Section 9.3

  	
  Limitations

  	
   

  
	
   

  	
  Section 9.4

  	
  Compliance with Trust Indenture Act

  	
   

  
	
   

  	
  Section 9.5

  	
  Revocation and Effect of Consents

  	
   

  
	
   

  	
  Section 9.6

  	
  Notation on or Exchange of Notes

  	
   

  
	
   

  	
  Section 9.7

  	
  Trustee Protected

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X.
  MISCELLANEOUS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 10.1

  	
  Trust Indenture Act Controls

  	
   

  
	
   

  	
  Section 10.2

  	
  Notices

  	
   

  
	
   

  	
  Section 10.3

  	
  Communication by Holders with Other
  Holders

  	
   

  
	
   

  	
  Section 10.4

  	
  Certificate and Opinion as to
  Conditions Precedent

  	
   

  
	
   

  	
  Section 10.5

  	
  Statements Required in Certificate or
  Opinion

  	
   

  
	
   

  	
  Section 10.6

  	
  Rules by Trustee and Agents

  	
   

  
	
   

  	
  Section 10.7

  	
  Legal Holidays

  	
   

  
	
   

  	
  Section 10.8

  	
  No Recourse
  Against Others

  	
   

  
	
   

  	
  Section 10.9

  	
  Counterparts

  	
   

  
	
   

  	
  Section 10.10

  	
  Governing Laws

  	
   

  
	
   

  	
  Section 10.11

  	
  No
  Adverse Interpretation of Other Agreements

  	
   

  
	
   

  	
  Section 10.12

  	
  Successors

  	
   

  
	
   

  	
  Section 10.13

  	
  Severability

  	
   

  
	
   

  	
  Section 10.14

  	
  Table
  of Contents, Headings, Etc

  	
   

  
	
   

  	
  Section 10.15

  	
  Judgment Currency

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI. SINKING
  FUNDS

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 11.1

  	
  No Sinking Funds

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII. GUARANTEE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Section 12.1

  	
  Guarantee

  	
   

  
	
   

  	
  Section 12.2

  	
  Execution
  and Delivery of Guarantee

  	
   

  
	
   

  	
  Section 12.3

  	
  Release of Guarantor

  	
   

  
	
   

  	
  Section 12.4

  	
  When
  Guarantor May Merge, etc

  	
   

  

 

iii

 

HARRAH’S OPERATING COMPANY, INC.

 

Reconciliation and tie between Trust Indenture Act of 1939 and

Indenture, dated as of May 27, 2005

 

	
  § 310(a)(1)

  	
   

  	
   

  	
   

  	
  7.10

  	
   

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  7.10

  	
   

  
	
  (a)(3)

  	
   

  	
   

  	
   

  	
  Not Applicable

  	
   

  
	
  (a)(4)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  	
   

  
	
  (a)(5)

  	
   

  	
   

  	
   

  	
  7.10

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.10

  	
   

  
	
  § 311(a)

  	
   

  	
   

  	
   

  	
  7.11

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.11

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  	
   

  
	
  § 312(a)

  	
   

  	
   

  	
   

  	
  2.5

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  10.3

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  10.3

  	
   

  
	
  § 313(a)

  	
   

  	
   

  	
   

  	
  7.6

  	
   

  
	
  (b)(1)

  	
   

  	
   

  	
   

  	
  7.6

  	
   

  
	
  (b)(2)

  	
   

  	
   

  	
   

  	
  7.6

  	
   

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  7.6

  	
   

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.6

  	
   

  
	
  § 314(a)

  	
   

  	
   

  	
   

  	
  4.2,
  10.5

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  	
   

  
	
  (c)(1)

  	
   

  	
   

  	
   

  	
  10.4

  	
   

  
	
  (c)(2)

  	
   

  	
   

  	
   

  	
  10.4

  	
   

  
	
  (c)(3)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  	
   

  
	
  (d)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  	
   

  
	
  (e)

  	
   

  	
   

  	
   

  	
  10.5

  	
   

  
	
  (f)

  	
   

  	
   

  	
   

  	
  Not
  Applicable

  	
   

  
	
  § 315(a)

  	
   

  	
   

  	
   

  	
  7.1

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  7.5

  	
   

  
	
  (c)

  	
   

  	
   

  	
   

  	
  7.1

  	
   

  
	
  (d)

  	
   

  	
   

  	
   

  	
  7.1

  	
   

  
	
  (e)

  	
   

  	
   

  	
   

  	
  6.14

  	
   

  
	
  § 316(a)

  	
   

  	
   

  	
   

  	
  2.9

  	
   

  
	
  (a)(1)(A)

  	
   

  	
   

  	
   

  	
  6.12

  	
   

  
	
  (a)(1)(B)

  	
   

  	
   

  	
   

  	
  6.13

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  6.8

  	
   

  
	
  § 317(a)(1)

  	
   

  	
   

  	
   

  	
  6.3

  	
   

  
	
  (a)(2)

  	
   

  	
   

  	
   

  	
  6.4

  	
   

  
	
  (b)

  	
   

  	
   

  	
   

  	
  2.4

  	
   

  
	
  § 318(a)

  	
   

  	
   

  	
   

  	
  10.1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Note:  This reconciliation and tie shall not, for
any purpose, be deemed to be part of the Indenture.

 

iv

 

INDENTURE

 

Indenture dated as of May 27, 2005 between Harrah’s
Operating Company, Inc., a Delaware corporation (the “Company”),
Harrah’s Entertainment, Inc., a Delaware corporation (the “Guarantor”),
and U.S. Bank National Association, a national banking association (the “Trustee”).

 

Each party agrees as follows for the benefit of the
other party and for the equal and ratable benefit of the Holders of the 5.625%
Senior Notes due 2015 (the “Notes”):

 

ARTICLE I.

DEFINITIONS AND INCORPORATION BY REFERENCE

 

Section 1.1             Definitions.

 

“Additional Interest” means all additional
interest then owing pursuant to Section 5 of the Registration Rights
Agreement.

 

“Additional Notes” means an unlimited
additional aggregate principal amount of Notes (other than Initial Notes)
issued after the date hereof pursuant to Section 2.18 as part of the same
series as the Initial Notes.

 

“Additional Note Board Resolutions” means
resolutions duly adopted by the Board of Directors of the Company and delivered
to the Trustee in an Officer’s Certificate providing for the issuance of
Additional Notes.

 

“Additional Note Supplemental Indenture” means
a supplement to this Indenture duly executed and delivered by the Company and
the Trustee pursuant to Article IX hereof providing for the issuance of
Additional Notes.

 

“Affiliate” of any specified Person means any
other Person directly or indirectly controlling or controlled by or under
direct or indirect common control with such specified Person.   For the purposes of this definition, “control”
(including, with correlative meanings, the terms “controlled by” and “under
common control with”), as used with respect to any Person, shall mean the
possession, directly or indirectly, of the power to direct or cause the direction
of the management or policies of such Person, whether through the ownership of
voting securities or by agreement or otherwise.

 

“Agent” means any Registrar, Paying Agent or
Service Agent.

 

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

 

“Bankruptcy Law” shall have the meaning set
forth in Section 6.1.

 

 

“Board of Directors” means the Board of
Directors of the Company or any duly authorized committee thereof.

 

“Board Resolution” means a copy of a resolution
certified by the Secretary or an Assistant Secretary of the Company to have
been adopted by the Board of Directors or pursuant to authorization by the
Board of Directors and to be in full force and effect on the date of the
certificate and delivered to the Trustee.

 

“Business Day” means, unless otherwise provided
by Board Resolution, Officer’s Certificate or supplemental indenture hereto,
any day except a Saturday, Sunday or a legal holiday in the City of New York on
which banking institutions are authorized or required by law, regulation or
executive order to close.

 

“Certificated Note” means a certificated Note
registered in the name of the Holder thereof and issued in accordance with Section 2.14.3
hereof, substantially in the form of Exhibit A hereto except that such
note shall not bear the Global Notes Legend and shall not have the “Schedule of
Interests in the Global Note” attached thereto.

 

“Clearstream” means Clearstream Banking,
Societé Anonyme.

 

“Company” means the party named as such above
until a successor replaces it and thereafter means the successor.

 

“Company Order” means a written order signed in
the name of the Company by an Officer.

 

“Company Request” means a written request
signed in the name of the Company by an Officer.

 

“Comparable Treasury Issue” means the United
States Treasury security selected by the Reference Treasury Dealer as having a
maturity comparable to the remaining term of the Notes to be redeemed, that
would be utilized, at the time of selection and in accordance with customary
financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of the Notes.

 

“Comparable Treasury Price” means, with respect
to any Redemption Date, the Reference Treasury Dealer Quotations for that
Redemption Date.

 

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

 

2

 

consolidated balance
sheet of the Company for the most recently completed fiscal quarter for which
financial statements are available and computed in accordance with generally
accepted accounting principles.

 

“Consolidated Property” means any property of
the Company or any of its Subsidiaries.

 

“Corporate Trust Office” means the office of
the Trustee at which at any particular time this Indenture shall be principally
administered, which initially shall be 60 Livingston Avenue, St. Paul, MN 55107-1419,
Attention: Corporate Trust Services.

 

“Custodian” shall have the meaning set forth in
Section 6.1.

 

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

 

“Depositary” means, with respect to the Notes
issuable or issued in whole or in part in the form of one or more Global Notes,
the person designated as Depositary by the Company, which Depositary shall be a
clearing agency registered under the Exchange Act; and if at any time there is
more than one such person, “Depositary” as used with respect to the Notes shall
mean the Depositary with respect to the Notes.

 

“Dollars” means the currency of the United
States of America.

 

“DTC” means The Depository Trust Company.

 

“Euroclear” means Euroclear Bank S.A./N.V., as
operator of the Euroclear Clearance System.

 

“Event of Default” shall have the meaning set
forth in Section 6.1.

 

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

 

“Exchange Offer Registration Statement” has the
meaning set forth in the Registration Rights Agreement.

 

“Foreign Currency” means any currency or
currency unit issued by a government other than the government of the United
States of America.

 

“Foreign Government Obligations” means with
respect to Notes that are denominated in a Foreign Currency, (i) direct
obligations of the government that issued or caused to be issued such currency
for the payment of which obligations its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by or acting as an agency or
instrumentality of such government the timely payment of which is
unconditionally guaranteed as a full faith and credit obligation by such
government, which, in either case under clauses (i) or (ii), are not
callable or redeemable at the option of the issuer thereof.

 

3

 

“Funded Debt” means all Indebtedness of the
Company which (i) matures by its terms on, or is renewable at the option
of any obligor thereon to, a date more than one year after the date of original
issuance of such Indebtedness and (ii) ranks at least pari passu with the
notes.

 

“Gaming Laws” means the gaming laws of a
jurisdiction or jurisdictions to which the Company or a subsidiary of the
Company is, or may at any time after the date of this Indenture be, subject.

 

“Gaming Authority” means the Nevada Gaming
Commission, the Nevada State Gaming Control Board, the New Jersey Casino
Control Commission or any similar commission or agency which has, or may at any
time after the date of this Indenture have, jurisdiction over the gaming
activities of the Company or a subsidiary of the Company or any successor
thereto.

 

“Global Note” or “Global Notes” means a
Note or Notes, as the case may be, in the form established pursuant to Section 2.13
evidencing all or part of the Notes, issued to the Depositary or its nominee,
and registered in the name of such Depositary or nominee.

 

“Global Notes Legend” means the legend set
forth in Section 2.13.2, which is required to be placed on all Global
Notes issued under this Indenture.

 

“Guarantee” shall have the meaning set forth in
Section 12.1 hereof.

 

“Guarantor” means the party named as such above
until a successor replaces it and thereafter means the successor.

 

“Holder” or “Noteholder” means a Person
in whose name a Note is registered.

 

“Indebtedness” of any Person means (a) any
indebtedness of such Person, contingent or otherwise, in respect of borrowed
money (whether or not the recourse of the lender is to the whole of the assets
of such Person or only to a portion thereof), or evidenced by notes, bonds, debentures
or similar instruments or letters of credit, or representing the balance
deferred and unpaid of the purchase price of any property, including any such
indebtedness incurred in connection with the acquisition by such Person or any
of its Subsidiaries of any other business or entity, if and to the extent such
indebtedness would appear as a liability upon a balance sheet of such Person
prepared in accordance with generally accepted accounting principles, including
for such purpose obligations under capitalized leases, and (b) any
guarantee, endorsement (other than for collection or deposit in the ordinary
course of business), discount with recourse, agreement (contingent or
otherwise) to purchase, repurchase or otherwise acquire or to supply or advance
funds with respect to, or to become liable with respect to (directly or
indirectly) any indebtedness, obligation, liability or dividend of any Person,
but shall not include indebtedness or amounts owed for compensation to
employees, or for goods or materials purchased, or services utilized, in the
ordinary course of business of such Person. 
Notwithstanding anything to the contrary in the foregoing, “Indebtedness”
shall not include (i) any contracts providing for the completion of
construction or other payment or performance with respect to the construction,
maintenance or improvement of, or payment of taxes, revenue share payments or
other fees to governmental entities with respect to, property or equipment of
the Company or its Affiliates or

 

4

 

(ii) any contracts
providing for the obligation to advance funds, property or services on behalf
of an Affiliate of the Company in order to maintain the financial condition of
such Affiliate.  For purposes of this
definition of Indebtedness, a “capitalized lease” shall be deemed to mean a
lease of real or personal property which, in accordance with generally accepted
accounting principles, is required to be capitalized.

 

“Indenture” means this Indenture as amended
from time to time and shall include the form and terms of the Notes established
as contemplated hereunder.

 

“Initial Notes” means the first $750,000,000
aggregate principal amount of Notes issued under this Indenture on the date
hereof.

 

“Initial Purchasers” shall have the meaning set
forth in the purchase agreement dated as of May 19, 2005 among the
Company, the Guarantor, and the Initial Purchasers listed therein.

 

“Institutional Accredited Investor” means an
institution that is an “accredited investor” as defined in Rule 501(a)(1),
(2), (3) or (7) under the Securities Act, who are not also QIBs.

 

“Interest Payment Date,” when used with respect
to any Notes, means the date an installment of interest is due and payable on
such Notes.

 

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

 

“Judgment Currency” shall have the meaning set
forth in Section 10.15.

 

“Legal Holiday” shall have the meaning set
forth in Section 10.7.

 

“Lien” means any mortgage, pledge,
hypothecation, assignment, deposit, arrangement, encumbrance, security
interest, lien (statutory or otherwise), or preference, priority or other
security or similar agreement or preferential arrangement of any kind or nature
whatsoever (including, without limitation, any conditional sale or other title
retention agreement having substantially the same economic effect as any of the
foregoing).

 

“Maturity” means the date on which the
principal of the Notes becomes due and payable as therein or herein provided,
whether at the Stated Maturity or by declaration of acceleration, call for
redemption, notice of option to elect repayment or otherwise.

 

“Maturity Date” shall have the meaning set
forth in Section 2.1.1.

 

“New Notes” means the Notes issued in the
Registered Exchange Offer pursuant to Section 2.14.4 hereof.

 

“New York Banking Day” shall have the meaning
set forth in Section 10.15.

 

5

 

“Non-recourse Indebtedness” means indebtedness
with terms providing that the lender’s claim for repayment of such indebtedness
is limited solely to a claim against the property which secures the
indebtedness.

 

“Non-U.S. Person” means a Person who is not a
U.S. Person as defined in Rule 902(k) under the Securities Act.

 

“Notes” has the meaning assigned to it in the
preamble to this Indenture.  The Initial
Notes and the Additional Notes shall be treated as a single class for all
purposes under this Indenture.

 

“Obligations” means any principal, interest,
premium, if any, penalties, fees, indemnifications, reimbursements, damages or
other liabilities or amounts payable under the documentation governing or
otherwise in respect of any Indebtedness.

 

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

 

“Officer’s Certificate” means a certificate
signed by an Officer.

 

“Opinion of Counsel” means a written opinion of
legal counsel who is acceptable to the Trustee. 
The counsel may be an employee of or counsel to the Company.

 

“Paying Agent” shall have the meaning set forth
in Section 2.3.

 

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

 

“Private Placement Legend” means the legend set
forth in Section 2.14.5(a) to be placed on all Notes issued under
this Indenture except where otherwise permitted by the provisions of this
Indenture.

 

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

 

“Redemption Date” means the date of redemption
of the Notes.

 

“Reference Treasury Dealer” means Citigroup
Global Markets Inc. and its successor; provided that, if Citigroup
Global Markets Inc. ceases to be a primary U.S. Government securities dealer,
the Company shall substitute another nationally recognized investment banking
firm that is a primary U.S. Government securities dealer.

 

“Reference Treasury Dealer Quotations” means,
with respect to the Reference Treasury Dealer and any Redemption Date, the
average, as determined by the Trustee, of the bid and asked prices for the
Comparable Treasury Issue (expressed in each case as a percentage of its
principal amount) quoted in writing to the Trustee by the Reference Treasury
Dealer at 3:30 p.m., New York City time, on the third Business Day
preceding that Redemption Date.

 

6

 

“Registered Exchange Offer” has the meaning set
forth in the Registration Rights Agreement.

 

“Registrar” shall have the meaning set forth in
Section 2.3.

 

“Registration Rights Agreement” means the
Registration Rights Agreement, dated as of May 27, 2005, by and among the
Company, the Guarantor and the other parties named on the signature pages thereof,
as such agreement may be amended, modified or supplemented from time to time,
and, with respect to any Additional Notes, one or more registration rights
agreements between the Company and the other parties thereto, as such
agreement(s) may be amended, modified or supplemented from time to time,
relating to rights given by the Company to the purchasers of Additional Notes
to register such Additional Notes under the Securities Act.

 

“Regular Record Date” shall have the meaning
set forth in Section 2.1.3.

 

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

 

“Regulation S Global Note” means a Global Note
bearing the Private Placement Legend and deposited with or on behalf of the
Depositary and registered in the name of the Depositary or its nominee, issued
in a denomination equal to the outstanding principal amount of the Notes
initially sold in reliance on Rule 903 of Regulation S.

 

“Remaining Scheduled Payments” means the
remaining scheduled payments of principal of and interest on the Notes that
would be due after the related Redemption Date but for that redemption.  If that Redemption Date is not an Interest
Payment Date, the amount of the next succeeding scheduled interest payment on
the Notes will be reduced by the amount of interest accrued on the Notes to
such Redemption Date.

 

“Required Currency” shall have the meaning set
forth in Section 10.15.

 

“Responsible Officer” means any officer of the
Trustee assigned to administer corporate trust matters and also means, with
respect to a particular corporate trust matter, any other officer to whom any
corporate trust matter is referred because of his or her knowledge of and
familiarity with a particular subject.

 

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

 

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

 

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

 

“Rule 144” means Rule 144 promulgated
under the Securities Act.

 

“Rule 144A” means Rule 144A
promulgated under the Securities Act.

 

7

 

“Rule 144A Global Note” means a Global
Note bearing the Private Placement Legend and deposited with or on behalf of
the Depositary and registered in the name of the Depositary or its nominee,
issued in a denomination equal to the outstanding principal amount of the Notes
initially sold in reliance on Rule 144A.

 

“Rule 903” means Rule 903 promulgated
under the Securities Act.

 

“Rule 904” means Rule 904 promulgated
under the Securities Act.

 

“Sale and Lease-Back Transaction” means any
arrangement with a Person (other than the Company or any of its Subsidiaries),
or to which any such Person is a party, providing for the leasing to the
Company or any of its Subsidiaries for a period of more than three years of any
Consolidated Property which has been or is to be sold or transferred by the
Company or any of its Subsidiaries to such Person or to any other Person (other
than the Company of any of its Subsidiaries), to which funds have been or are
to be advanced by such Person on the security of the leased property.

 

“SEC” means the Securities and Exchange
Commission.

 

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

 

“Service Agent” shall have the meaning set
forth in Section 2.3.

 

“Significant Subsidiary” means (i) any
direct or indirect Subsidiary of the Company that would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation
S-X, promulgated pursuant to the Securities Act, as such regulation is in
effect on the date hereof, or (ii) any group of direct or indirect
Subsidiaries of the Company that, taken together as a group, would be a “significant
subsidiary” as defined in Article 1, Rule 1-02 of Regulation
S-X, promulgated pursuant to the Securities Act, as such regulation is in
effect on the date hereof.

 

“Stated Maturity” means, when used with respect
to the Notes or any installment of interest thereon, the date specified in the
Notes as the fixed date on which the principal of the Notes or such installment
of principal or interest is due and payable.

 

“Subsidiary” of any specified Person means any
corporation of which at least a majority of the outstanding stock having by the
terms thereof ordinary voting power for the election of directors of such
corporation (irrespective of whether or not at the time stock of any other
class or classes of such corporation shall have or might have voting power by
reason of the happening of any contingency) is at the time directly or indirectly
owned by such Person, or by one or more other Subsidiaries, or by such Person
and one or more other Subsidiaries.

 

“successor person” shall have the meaning set
forth in Section 5.1.

 

“TIA” means the Trust Indenture Act of 1939 (15
U.S. Code §§ 77aaa-77bbbb) as in effect on the date of this
Indenture; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, “TIA” means, to the extent
required by any such amendment, the Trust Indenture Act as so amended.

 

8

 

“Treasury Rate” means, with respect to any
Redemption Date for the Notes, the rate per annum equal to the semi-annual
equivalent yield to maturity (computed as of the third Business Day immediately
preceding that Redemption Date) of the Comparable Treasury Issue, assuming a
price for the Comparable Treasury Issue (expressed as a percentage of its
principal amount) equal to the Comparable Treasury Price for that Redemption
Date.

 

“Trustee” means the Person named as the “Trustee”
in the first paragraph of this instrument until a successor Trustee shall have
become such pursuant to the applicable provisions of this Indenture, and
thereafter “Trustee” shall mean or include each Person who is then a Trustee
hereunder.

 

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

 

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

 

“U.S. Government Obligations” means securities
which are (i) direct obligations of the United States of America for the
payment of which its full faith and credit is pledged or (ii) obligations
of a Person controlled or supervised by and acting as an agency or
instrumentality of the United States of America the payment of which is
unconditionally guaranteed as a full faith and credit obligation by the United
States of America, and which in the case of (i) and (ii) are not callable
or redeemable at the option of the issuer thereof, and shall also include a
depositary receipt issued by a bank or trust company as custodian with respect
to any such U.S. Government Obligation or a specific payment of interest on or
principal of any such U.S. Government Obligation held by such custodian for the
account of the holder of a depositary receipt, provided that (except as required by law) such custodian is
not authorized to make any deduction from the amount payable to the holder of
such depositary receipt from any amount received by the custodian in respect of
the U.S. Government Obligation evidenced by such depositary receipt.

 

“Value” means, with respect to a Sale and
Lease-Back Transaction, as of any particular time, the amount equal to the
greater of (i) the net proceeds of the sale or transfer of property leased
pursuant to such Sale and Lease-Back Transaction or (ii) the fair value,
in the opinion of the Board of Directors as evidenced by a board resolution, of
such property at the time of entering into such Sale and Lease-Back
Transaction.

 

9

 

Section 1.2             Incorporation by Reference of Trust
Indenture Act.

 

Whenever this Indenture refers to a provision of the
TIA, the provision is incorporated by reference in and made a part of this
Indenture.  The following TIA terms
correspond to the following terms used in this Indenture:

 

“indenture
securities” means the Notes.

 

“indenture
security holder” means a Noteholder.

 

“indenture
to be qualified” means this Indenture.

 

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

 

“obligor”
on the indenture securities means the Company and any successor obligor upon
the Notes.

 

All other terms used in this Indenture that are
defined by the TIA, defined by TIA reference to another statute or defined by
SEC rule under the TIA and not otherwise defined herein are used herein as
so defined.

 

Section 1.3             Rules of Construction.

 

Unless the context otherwise requires:

 

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

 

(b)           an accounting term not otherwise
defined has the meaning assigned to it in accordance with generally accepted
accounting principles;

 

(c)           references to “generally accepted
accounting principles” shall mean generally accepted accounting principles in
effect as of the time when and for the period as to which such accounting
principles are to be applied;

 

(d)           “or” is not exclusive;

 

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

 

(f)            provisions apply to successive
events and transactions.

 

ARTICLE II.

THE NOTES

 

Section 2.1             Terms of the Notes.

 

The entire outstanding principal of
the Notes will mature on June 1, 2015 (the “Maturity Date”).

 

The Notes shall be in denominations of $2,000 and any
integral multiple thereof.  The Notes
shall be denominated in U.S. dollars and all payments of principal and interest
on the Notes shall be made in U.S. dollars.

 

10

 

The Notes shall bear interest at a rate of 5.625% per
annum; the date from which interest shall accrue shall be May 27, 2005;
the Interest Payment Dates for the Notes on which interest shall be payable
shall be June 1 and December 1 in each year, beginning December 1,
2005; the Regular Record Dates for the interest payable on the Notes on any
Interest Payment Date shall be the May 15 or November 15 (whether or
not a Business Day), as the case may be, immediately preceding such Interest
Payment Date (each a “Regular Record Date”).  Interest shall accrue on the basis of a 360-day
year, consisting of twelve 30-day months. 
Interest on any Note shall be payable only to the Person in whose name
that Note is registered at the close of business on the Regular Record Date for
such interest payment.  If any Interest
Payment Date, Redemption Date or Maturity Date of any of the Notes is not a
Business Day, then payment of principal and interest will be made on the next
succeeding Business Day.  No interest
will accrue on the amount so payable for the period from such Interest Payment
Date, Redemption Date or Maturity Date, as the case may be, to the date payment
is made.

 

The place of payment where the principal of and
interest on the Notes shall be payable and the Notes may be surrendered for the
registration of transfer or exchange shall be the Corporate Trust Office of the
Trustee.  The place where notices or
demands to or upon the Company in respect of the Notes and this Indenture may
be served shall be the Corporate Trust Office of the Trustee.

 

The Notes will be redeemable at the option of the
Company pursuant to Article III.

 

Section 2.2             Execution and Authentication.

 

An Officer shall sign the Notes for the Company by
manual or facsimile signature.

 

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

 

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

 

Subject to the provisions of this Section 2.2,
the Trustee shall, at any time, and from time to time, authenticate Notes for
original issue upon receipt by the Trustee of a Company Order.  Such Company Order may authorize
authentication pursuant to written or electronic instructions from the Company
or its duly authorized agent or agents.

 

Prior to the issuance of the Notes, the Trustee shall
have received and (subject to Section 7.1) shall be fully protected in
relying on: (a) a Board Resolution, supplemental indenture hereto or
Officer’s Certificate establishing the form and terms of the Notes, (b) an
Officer’s Certificate complying with Section 10.4, and (c) an Opinion
of Counsel complying with Section 10.4.

 

11

 

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

 

Section 2.3             Registrar and Paying Agent.

 

The Company shall maintain, with respect to the Notes,
at the place or places specified pursuant to Section 2.1.4, an office or
agency where the Notes may be presented or surrendered for payment (“Paying
Agent”), where the Notes may be surrendered for registration of transfer or
exchange (“Registrar”) and where notices and demands to or upon the
Company in respect of the Notes and this Indenture may be served (“Service
Agent”).  The Registrar shall keep a
register with respect to the Notes and to their transfer and exchange.  The Company will give prompt written notice
to the Trustee of the name and address, and any change in the name or address,
of each Registrar, Paying Agent or Service Agent.  If at any time the Company shall fail to maintain
any such required Registrar, Paying Agent or Service Agent or shall fail to
furnish the Trustee with the name and address thereof, such presentations,
surrenders, notices and demands may be made or served at the Corporate Trust
Office of the Trustee, and the Company hereby appoints the Trustee as its agent
to receive all such presentations, surrenders, notices and demands.

 

The Company may also from time to time designate one
or more co-registrars, additional paying agents or additional service agents
and may from time to time rescind such designations; provided, however,
that no such designation or rescission shall in any manner relieve the Company
of its obligations to maintain a Registrar, Paying Agent and Service Agent in
each place so specified pursuant to Section 2.1.4 for the Notes for such
purposes.  The Company will give prompt
written notice to the Trustee of any such designation or rescission and of any
change in the name or address of any such co-registrar, additional paying agent
or additional service agent.  The term “Registrar”
includes any co-registrar; the term “Paying Agent” includes any additional
paying agent; and the term “Service Agent” includes any additional service
agent.

 

The Company hereby appoints the Trustee as the initial
Registrar, Paying Agent and Service Agent for the Notes.  The Company hereby appoints DTC to act as
Depositary with respect to the Global Notes.

 

Section 2.4             Paying Agent to Hold Money in Trust.

 

The Company shall require each Paying Agent other than
the Trustee to agree in writing that the Paying Agent will hold in trust, for
the benefit of Noteholders, or the Trustee, all money held by the Paying Agent
for the payment of principal of or interest on the Notes, and will notify the
Trustee of any default by the Company in making any such payment.  While any such default continues, the Trustee
may require a Paying Agent to pay all money held by it to the Trustee.  The Company at any time may require a Paying
Agent to pay all money held by it to the Trustee.  Upon payment over to the Trustee, the Paying
Agent (if other than the Company or

 

12

 

a Subsidiary) shall
have no further liability for the money. 
If the Company or a Subsidiary acts as Paying Agent, it shall segregate
and hold in a separate trust fund for the benefit of Noteholders all money held
by it as Paying Agent.

 

Section 2.5             Noteholder Lists.

 

The Trustee shall preserve in as current a form as is
reasonably practicable the most recent list available to it of the names and
addresses of Noteholders and shall otherwise comply with TIA § 312(a).  If the Trustee is not the Registrar, the
Company shall furnish to the Trustee at least ten days before each interest
payment date and at such other times as the Trustee may request in writing a
list, in such form and as of such date as the Trustee may reasonably require,
of the names and addresses of Noteholders.

 

Section 2.6             Intentionally Omitted.

 

Section 2.7             Mutilated, Destroyed, Lost and
Stolen Notes.

 

If any mutilated Note is surrendered to the Trustee,
the Company shall execute and the Trustee shall authenticate and deliver in
exchange therefor a new Note of like tenor and principal amount and bearing a
number not contemporaneously outstanding.

 

If there shall be delivered to the Company and the
Trustee (i) evidence to their satisfaction of the destruction, loss or
theft of any Note and (ii) such security or indemnity as may be required
by them to save each of them and any agent of either of them harmless, then, in
the absence of notice to the Company or the Trustee that such Note has been
acquired by a bona fide purchaser, the Company shall execute and upon its
request the Trustee shall authenticate and make available for delivery, in lieu
of any such destroyed, lost or stolen Note, a new Note of like tenor and
principal amount and bearing a number not contemporaneously outstanding.

 

In case any such mutilated, destroyed, lost or stolen
Note has become or is about to become due and payable, the Company in its
discretion may, instead of issuing a new Note, pay such Note.

 

Upon the issuance of any new Note under this Section,
the Company may require the payment of a sum sufficient to cover any tax or
other governmental charge that may be imposed in relation thereto and any other
expenses (including the fees and expenses of the Trustee) connected therewith.

 

Every new Note issued pursuant to this Section in
lieu of any destroyed, lost or stolen Note shall constitute an original
additional contractual obligation of the Company, whether or not the destroyed,
lost or stolen Note shall be at any time enforceable by anyone, and shall be
entitled to all the benefits of this Indenture equally and proportionately with
any and all other Notes duly issued hereunder.

 

13

 

The provisions of this Section are exclusive and
shall preclude (to the extent lawful) all other rights and remedies with
respect to the replacement or payment of mutilated, destroyed, lost or stolen
Notes.

 

Section 2.8             Outstanding Notes.

 

The Notes outstanding at any time are all the Notes
authenticated by the Trustee except for those canceled by it, those delivered
to it for cancellation, those reductions in the amount outstanding on a Global
Note effected by the Trustee in accordance with the provisions hereof and those
described in this Section as not outstanding.

 

If a Note is replaced pursuant to Section 2.7, it
ceases to be outstanding until the Trustee receives proof satisfactory to it
that the replaced Note is held by a bona fide purchaser.

 

If the Paying Agent (other than the Company, a
Subsidiary or an Affiliate of any thereof) holds on the Maturity Date
money sufficient to pay such Notes payable on that date, then on and after that
date such Notes cease to be outstanding and interest on them ceases to accrue.

 

A Note does not cease to be outstanding because the
Company or an Affiliate holds the Note.

 

Section 2.9             Treasury Notes.

 

In determining whether the Holders of the required
principal amount of Notes have concurred in any request, demand, authorization,
direction, notice, consent or waiver Notes owned by the Company or an Affiliate
shall be disregarded, except that for the purposes of determining whether the
Trustee shall be protected in relying on any such request, demand,
authorization, direction, notice, consent or waiver only Notes that the Trustee
knows are so owned shall be so disregarded.

 

Section 2.10           Temporary Notes.

 

Until definitive Notes are ready for delivery, the
Company may prepare and the Trustee shall, subject to Section 2.2, (in the
case of original issuance), authenticate temporary Notes upon a Company
Order.  Temporary Notes shall be
substantially in the form of definitive Notes but may have variations that the
Company considers appropriate for temporary Notes.  Without unreasonable delay, the Company shall
prepare and the Trustee upon request shall authenticate definitive Notes and
date of maturity in exchange for temporary Notes.  Until so exchanged, temporary securities
shall have the same rights under this Indenture as the definitive Notes.

 

Section 2.11           Cancellation.

 

The Company at any time may deliver Notes to the
Trustee for cancellation.  The Registrar
and the Paying Agent shall forward to the Trustee any Notes surrendered to them
for

 

14

 

registration of transfer,
exchange or payment.  The Trustee shall
cancel all Notes surrendered for transfer, exchange, payment, replacement or
cancellation and shall destroy such canceled Notes (subject to the record
retention requirement of the Exchange Act) and deliver a certificate of
such destruction to the Company, unless the Company otherwise directs.  The Company may not issue new Notes to
replace Notes that it has paid or delivered to the Trustee for cancellation.

 

Section 2.12           Defaulted Interest.

 

If the Company defaults in a payment of interest on
the Notes, it shall pay the defaulted interest, plus, to the extent permitted
by law, any interest payable on the defaulted interest, to the Persons who are
Noteholders on a subsequent special record date.  The Company shall fix the record date and
payment date.  At least 30 days before
the record date, the Company shall mail to the Trustee and to each Noteholder a
notice that states the record date, the payment date and the amount of interest
to be paid.  The Company may pay
defaulted interest in any other lawful manner.

 

Section 2.13           Global Notes.

 

2.13.1      Form of Notes.  Notes shall
be issued in global form substantially in the form of Exhibit A hereto.

 

2.13.2      Legend.  Any Global
Note issued hereunder shall bear a legend in substantially the following form:

 

“THIS NOTE IS A GLOBAL NOTE WITHIN THE MEANING OF THE
INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF THE
DEPOSITARY OR A NOMINEE OF THE DEPOSITARY. 
THIS NOTE IS EXCHANGEABLE FOR NOTES REGISTERED IN THE NAME OF A PERSON
OTHER THAN THE DEPOSITARY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES
DESCRIBED IN THE INDENTURE, AND MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE
BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY, BY A NOMINEE OF THE
DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH A
SUCCESSOR DEPOSITARY.”

 

2.13.3      Acts of Holders.  The
Depositary, as a Holder, may appoint agents and otherwise authorize
participants to give or take any request, demand, authorization, direction,
notice, consent, waiver or other action which a Holder is entitled to give or
take under the Indenture.

 

2.13.4      Consents,
Declaration and Directions.  Except
as provided in Section 2.15, the Company, the Trustee and any Agent shall
treat a person as the Holder of such principal amount of outstanding Notes
represented by a Global Note as shall be specified in a written statement of
the Depositary with respect to such Global Note, for purposes of obtaining any consents,
declarations, waivers or directions required to be given by the Holders
pursuant to this Indenture.

 

15

 

Section 2.14           Transfer and Exchange.

 

2.14.1      Transfer and Exchange of
Global Notes.  A Global Note may not be transferred as a
whole except by the Depositary to a nominee of the Depositary, by a nominee of
the Depositary to the Depositary or to another nominee of the Depositary, or by
the Depositary or any such nominee to a successor Depositary or a nominee of
such successor Depositary.  All Global
Notes will be exchanged by the Company for Certificated Notes if (i) the
Company delivers to the Trustee notice from the Depositary that it is unwilling
or unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor
Depositary is not appointed by the Company within 120 days after the date of
such notice from the Depositary or (ii) the Company in its sole discretion
determines that the Global Notes (in whole but not in part) should be exchanged
for Certificated Notes and delivers a written notice to such effect to the
Trustee.  Upon the occurrence of either
of the preceding events in (i) or (ii) above, Certificated Notes
shall be issued in such names as the Depositary shall instruct the
Trustee.  Global Notes also may be
exchanged or replaced, in whole or in part, as provided in Sections 2.7 and
2.10 hereof.  Every Note authenticated
and delivered in exchange for, or in lieu of, a Global Note or any portion
thereof, pursuant to this Section 2.14 or Section 2.7 or 2.10 hereof,
shall be authenticated and delivered in the form of, and shall be, a Global
Note.  A Global Note may not be exchanged
for another Note other than as provided in this Section 2.14.1, however,
beneficial interests in a Global Note may be transferred and exchanged as
provided in Section 2.14.2, 2.14.3, and 2.14.4 hereof.

 

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

 

(a)           Transfer of Beneficial Interests
in the Same Global Note.  Beneficial
interests in any Restricted Global Note may be transferred to Persons who take
delivery thereof in the form of a beneficial interest in the same Restricted
Global Note in accordance with the transfer restrictions set forth in the
Private Placement Legend; provided, however, that prior to the
expiration of the Restricted Period, transfers of beneficial interests in the
Regulation S Global Note may not be made to a U.S. Person or for the account or
benefit of a U.S. Person (other than an Initial Purchaser).  Beneficial interests in any Unrestricted
Global Note may be transferred to Persons who take delivery thereof in the form
of a beneficial interest in an Unrestricted Global Note.  No written orders or instructions shall be
required to be delivered to the Registrar to effect the transfers described in
this Section 2.14.2(a).

 

16

 

(b)           All Other Transfers and Exchanges
of Beneficial Interests in Global Notes.  In connection
with all transfers and exchanges of beneficial interests that are not subject to
Section 2.14.2(a) above, the transferor of such beneficial interest
must deliver to the Registrar either (A) (1) a written order from a
participant or an indirect participant in the Depositary given to the
Depositary in accordance with the Applicable Procedures directing the
Depositary to credit or cause to be credited a beneficial interest in another
Global Note in an amount equal to the beneficial interest to be transferred or
exchanged and (2) instructions given in accordance with the Applicable
Procedures containing information regarding the participant account to be
credited with such increase or (B) (1) a written order from a
participant or an indirect participant given to the Depositary in accordance
with the Applicable Procedures directing the Depositary to cause to be issued a
Certificated Note in an amount equal to the beneficial interest to be
transferred or exchanged and (2) instructions given by the Depositary to
the Registrar containing information regarding the Person in whose name such
Certificated Note shall be registered to effect the transfer or exchange
referred to in (1) above.  Upon
consummation of a Registered Exchange Offer by the Company in accordance with Section 2.14.4
hereof, the requirements of this Section 2.14.2(b) shall be deemed to
have been satisfied upon receipt by the Registrar of the instructions contained
in the Letter of Transmittal delivered by the Holder of such beneficial
interests in the Restricted Global Notes. 
Upon satisfaction of all of the requirements for transfer or exchange of
beneficial interests in Global Notes contained in this Indenture and the Notes
or otherwise applicable under the Securities Act, the Trustee shall adjust the
principal amount of the relevant Global Note(s) pursuant to Section 2.14.6
hereof.

 

(c)           Transfer of Beneficial Interests
to Another Restricted Global Note.  A beneficial
interest in any Restricted Global Note may be transferred to a Person who takes
delivery thereof in the form of a beneficial interest in another Restricted
Global Note if the transfer complies with the requirements of Section 2.14.2(b) above
and the Registrar receives the following:

 

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

 

(ii)           if the transferee will take delivery
in the form of a beneficial interest in the Regulation S Global Note, then the
transferor must deliver a certificate in the form of Exhibit D hereto.

 

(d)           Transfer and Exchange of
Beneficial Interests in a Restricted Global Note for Beneficial Interests in
the Unrestricted Global Note.  A beneficial
interest in any Restricted Global Note may be exchanged by any holder thereof
for a beneficial interest in an Unrestricted Global Note or transferred to a
Person who takes delivery thereof in the form of a beneficial interest in an
Unrestricted Global Note if the exchange or transfer complies with the
requirements of Section 2.14.2(b) above and:

 

17

 

(i)            such exchange or transfer is
effected pursuant to the Registered Exchange Offer in accordance with the
Registration Rights Agreement and the holder of the beneficial interest to be
transferred, in the case of an exchange, or the transferee, in the case of a
transfer, certifies in the applicable Letter of Transmittal that it is not (1) a
broker-dealer, (2) a Person participating in the distribution of the New
Notes or (3) a Person who is an affiliate (as defined in Rule 144) of
the Company;

 

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

 

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

 

(iv)          the Registrar receives a certificate
and/or any other information reasonably required by and satisfactory to it in
order to ensure compliance with the Securities Act and, if the Registrar so requests
or if the Applicable Procedures so require, an Opinion of Counsel in form
reasonably acceptable to the Registrar to the effect that such exchange or
transfer is in compliance with the Securities Act and that the restrictions on
transfer contained herein and in the Private Placement Legend are no longer
required in order to maintain compliance with the Securities Act.

 

If any such transfer is effected pursuant to
subparagraph (ii) or (iv) above at a time when an Unrestricted Global
Note has not yet been issued, the Company shall issue and, upon receipt of a
Company Order in accordance with Section 2.2 hereof, the Trustee shall
authenticate one or more Unrestricted Global Notes in an aggregate principal
amount equal to the aggregate principal amount of beneficial interests
transferred pursuant to subparagraph (ii) or (iv) above.

 

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

 

2.14.3      Transfer or Exchange of
Beneficial Interests for Certificated Notes.

 

(a)           Beneficial Interests in
Restricted Global Notes to Restricted Certificated Notes. 
If any holder of a beneficial interest in a Restricted Global Note proposes
to exchange such beneficial interest for a Restricted Certificated Note or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Restricted Certificated Note, then, upon receipt by the Registrar of
an Opinion of Counsel and/or a certificate and/or any other information
reasonably required by and satisfactory to it in order to ensure compliance
with the Securities Act, the Trustee shall cause the aggregate principal amount
of the applicable Global Note to be reduced accordingly pursuant to Section 2.14.6
hereof, and the Company shall execute and the Trustee shall authenticate

 

18

 

and
deliver to the Person designated in the instructions a Certificated Note in the
appropriate principal amount.  Any
Certificated Note issued in exchange for a beneficial interest in a Restricted
Global Note pursuant to this Section 2.14.3 shall be registered in such
name or names and in such authorized denomination or denominations as the holder
of such beneficial interest shall instruct the Registrar through instructions
from the Depositary and the participant or indirect participant in the
Depositary.  The Trustee shall deliver
such Certificated Notes to the Persons in whose names such Notes are so
registered.  Any Certificated Note issued
in exchange for a beneficial interest in a Restricted Global Note pursuant to
this Section 2.14.3(a) shall bear the Private Placement Legend and
shall be subject to all restrictions on transfer contained therein.

 

(b)           Beneficial Interests in
Restricted Global Notes to Unrestricted Certificated Notes. 
A holder of a beneficial interest in a Restricted Global Note may
exchange such beneficial interest for an Unrestricted Certificated Note or may
transfer such beneficial interest to a Person who takes delivery thereof in the
form of an Unrestricted Certificated Note only if:

 

(i)            such exchange or transfer is
effected pursuant to the Registered Exchange Offer in accordance with the
Registration Rights Agreement and the holder of such beneficial interest, in
the case of an exchange, or the transferee, in the case of a transfer,
certifies in the applicable Letter of Transmittal that it is not (1) a
broker-dealer, (2) a Person participating in the distribution of the New
Notes or (3) a Person who is an affiliate (as defined in Rule 144) of
the Company;

 

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

 

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

 

(iv)          the Registrar receives an Opinion of
Counsel and/or a certificate and/or any other information reasonably required
by and satisfactory to it in order to maintain compliance with the Securities
Act and to ensure that the restrictions on transfer contained herein and in the
Private Placement Legend are no longer required.

 

(c)           Beneficial Interests in
Unrestricted Global Notes to Unrestricted Certificated Notes. 
If any holder of a beneficial interest in an Unrestricted Global Note
proposes to exchange such beneficial interest for a Certificated Note or to
transfer such beneficial interest to a Person who takes delivery thereof in the
form of a Certificated Note, then, upon satisfaction of the conditions set
forth in Section 2.14.2(b) hereof, the Trustee shall cause the
aggregate principal amount of the applicable Global Note to be reduced
accordingly pursuant to Section 2.14.6 hereof, and the Company shall
execute and the Trustee shall authenticate and deliver to the Person designated
in the instructions

 

19

 

a
Certificated Note in the appropriate principal amount.  Any Certificated Note issued in exchange for
a beneficial interest pursuant to this Section 2.14.3(c) shall be
registered in such name or names and in such authorized denomination or
denominations as the holder of such beneficial interest shall instruct the
Registrar through instructions from the Depositary and the participant or
indirect participant in the Depositary. 
The Trustee shall deliver such Certificated Notes to the Persons in
whose names such Notes are so registered. 
Any Certificated Note issued in exchange for a beneficial interest
pursuant to this Section 2.14.3(c) shall not bear the Private
Placement Legend.

 

2.14.4      Registered Exchange Offer. 
Upon the occurrence of the Registered Exchange Offer in accordance with
the Registration Rights Agreement, the Company shall issue and, upon receipt of
a Company Order in accordance with Section 2.2, the Trustee shall
authenticate (i) one or more Unrestricted Global Notes in an aggregate
principal amount equal to the principal amount of the beneficial interests in
the Restricted Global Notes tendered for acceptance by Persons that certify in
the applicable letters of transmittal that (x) they are not broker-dealers, (y)
they are not participating in a distribution of the New Notes and (z) they are
not affiliates (as defined in Rule 144) of the Company, and accepted for
exchange in the Registered Exchange Offer and (ii) Certificated Notes in
an aggregate principal amount equal to the principal amount of the Restricted
Certificated Notes accepted for exchange in the Registered Exchange Offer.  Concurrently with the issuance of such Notes,
the Trustee shall cause the aggregate principal amount of the applicable
Restricted Global Notes to be reduced accordingly, and the Company shall execute
and the Trustee shall authenticate and deliver to the Persons designated by the
Holders of Certificated Notes so accepted Unrestricted Certificated Notes in
the appropriate principal amount.

 

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

 

(a)           Private Placement Legend.  Except as permitted by subparagraph (b) below,
each Global Note and each Certificated Note (and all Notes issued in exchange
therefor or substitution thereof) shall bear the legend in substantially the
following form:

 

“THIS
NOTE HAS NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”) AND MAY NOT BE OFFERED, SOLD, PLEDGED OR
OTHERWISE TRANSFERRED EXCEPT (A) BY THE INITIAL INVESTORS (1) TO A
PERSON WHO THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER
WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT PURCHASING FOR ITS OWN
ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER IN A TRANSACTION
MEETING THE REQUIREMENTS OF RULE 144A, (2) IN AN OFFSHORE TRANSACTION
COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S UNDER THE SECURITIES ACT,
OR (3) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT
PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE) OR

 

20

 

(4) PURSUANT
TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT AND (B) BY
SUBSEQUENT INVESTORS, AS SET FORTH IN (A) ABOVE, AND, IN ADDITION, TO AN
INSTITUTIONAL INVESTOR THAT IS AN ACCREDITED INVESTOR WITHIN THE MEANING OF
RULE 501 OF REGULATION D UNDER THE SECURITIES ACT PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT AND, IN THE CASE OF EACH OF CLAUSES (A) AND
(B), IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE
UNITED STATES AND OTHER JURISDICTIONS. IN CONNECTION WITH ANY TRANSFER OF THIS
NOTE WITHIN TWO YEARS AFTER THE ORIGINAL ISSUANCE OF THIS NOTE, THE HOLDER
MUST, PRIOR TO SUCH TRANSFER, FURNISH TO THE TRUSTEE AND THE ISSUER SUCH
CERTIFICATIONS, LEGAL OPINIONS OR OTHER INFORMATION AS MAY BE REQUIRED
PURSUANT TO THE INDENTURE TO CONFIRM THAT SUCH TRANSFER IS BEING MADE PURSUANT
TO AN EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT.”

 

(b)           Notwithstanding the foregoing, any
Global Note or Certificated Note issued pursuant to Sections 2.14.2(d),
2.14.3(b), 2.14.3(c), 2.14.4 (and all Notes issued in exchange therefor or
substitution thereof) shall not bear the Private Placement Legend.

 

(c)           Global Notes Legend. 
Each Global Note shall bear the Global Notes Legend in addition to the
Private Placement Legend.

 

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

 

2.14.7      General Provisions Relating
to Transfers and Exchanges.

 

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

 

21

 

(b)           No service charge shall be made to a
Holder of a beneficial interest in a Global Note or to a Holder of a
Certificated Note for any registration of transfer or exchange, but the Company
may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such
transfer taxes or similar governmental charge payable upon exchange or transfer
pursuant to Sections 2.10, 3.7, and 9.6 hereof).

 

(c)           The Registrar shall not be required
to register the transfer of or exchange any Note selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part.

 

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

 

(e)           Neither the Company nor the
Registrar shall be required (A) to issue, to register the transfer of or
to exchange any Notes during a period beginning at the opening of business 15
days before the day of any selection of Notes for redemption under Section 3.2
hereof and ending at the close of business on the day of selection, (B) to
register the transfer of or to exchange any Note so selected for redemption in
whole or in part, except the unredeemed portion of any Note being redeemed in
part or (C) to register the transfer of or to exchange a Note between a
record date and the next succeeding Interest Payment Date.

 

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

 

(g)           The Trustee shall authenticate
Global Notes and Certificated Notes in accordance with the provisions of Section 2.2
hereof.

 

(h)           All certifications, certificates and
Opinions of Counsel required to be submitted to the Registrar pursuant to this Section 2.14
to effect a registration of transfer or exchange may be submitted by facsimile.

 

Section 2.15           Payments.

 

Notwithstanding the other provisions of this
Indenture, unless otherwise specified, payment of the principal of and
interest, if any, on any Global Note shall be made to the Holder thereof.

 

22

 

Section 2.16           CUSIP Numbers.

 

The Company in issuing the Notes may use “CUSIP”
numbers (if then generally in use), and, if so, the Trustee shall use “CUSIP”
numbers in notices of redemption as a convenience to Holders; provided
that any such notice may state that no representation is made as to the
correctness of such numbers either as printed on the Notes or as contained in
any notice of a redemption and that reliance may be placed only on the other
elements of identification printed on the Notes, and any such redemption shall
not be affected by any defect in or omission of such numbers.

 

Section 2.17           Mandatory Disposition of Notes
Pursuant to Gaming Laws.

 

Each Holder and beneficial owner, by accepting or
otherwise acquiring an interest in the Notes, shall be deemed to have agreed
that if the Gaming Authority of any jurisdiction in which the Company or any of
its subsidiaries conducts or proposes to conduct gaming requires that a Person
who is a Holder or beneficial owner must be licensed, qualified or found suitable
under the applicable Gaming Laws, such Holder or beneficial owner shall apply
for a license, qualification or a finding of suitability within the required
time period.  If such Person fails to
apply or become licensed or qualified or is found unsuitable, then the Company
shall have the right, at its option, (i) to require such Person to dispose
of its Notes or beneficial interest therein within 30 days of receipt of notice
of the Company’s election or such earlier date as may be requested or
prescribed by such Gaming Authority or (ii) to redeem such Notes at a
redemption price equal to the lesser of (a) such Person’s cost or (b) 100%
of the principal amount thereof, plus accrued and unpaid interest to the
earlier of the redemption date and the date of the finding of unsuitability,
which may be less than 30 days following the notice of redemption if so
requested or prescribed by the Gaming Authority.  The Company shall notify the Trustee in
writing of any such redemption as soon as practicable.  The Company shall not be responsible for any
costs or expenses any such Holder or beneficial owner may incur in connection
with its application for a license, qualification or a finding of suitability.

 

Section 2.18           Additional Notes.

 

The Company may, from time to time, subject to
compliance with any other applicable provisions of this Indenture, without the
consent of the Holders, create and issue pursuant to this Indenture Additional
Notes having terms and conditions identical to those of the Initial Notes,
except that Additional Notes:

 

(i)  may have a different issue date from
the Initial Notes;

 

(ii)  may have a different amount of
interest payable than is payable on the Initial Notes;

 

(iii)  may have terms specified in the
Additional Note Board Resolution or Additional Note Supplemental Indenture for
such Additional Notes making appropriate adjustments applicable to such
Additional Notes in order to conform to and ensure compliance with the
Securities Act (or other applicable securities laws) and any registration
rights or similar agreement applicable to such Additional Notes, which are not
adverse in any material respect to the Holder of any Initial Notes; and

 

23

 

(iv)  may be entitled to
additional interest as contemplated in Section 2.19 not applicable to
Initial Notes and may not be entitled to such additional interest applicable to
Initial Notes.

 

Section 2.19           Additional Interest Under
Registration Rights Agreements.

 

Under certain circumstances, the Company may be
obligated to pay Additional Interest to Holders, all as and to the extent set
forth in the Registration Rights Agreement or any registration rights agreement
applicable to Additional Notes.  The
terms thereof are hereby incorporated herein by reference and such Additional
Interest, if required to be paid, is deemed to be interest for purposes of this
Indenture.

 

ARTICLE III.

REDEMPTION

 

Section 3.1             Optional Redemption.

 

The Notes shall not be redeemable at the option of any
Holder thereof, upon the occurrence of any particular circumstances or
otherwise.  The Notes will be redeemable,
as a whole or in part, at the option of the Company, at any time or from time
to time, at a redemption price equal to the greater of (a) 100% of the
principal amount of the Notes to be redeemed and (b) the sum of the
present values of the Remaining Scheduled Payments on such Notes discounted to
the Redemption Date, on a semiannual basis (assuming a 360-day year consisting
of twelve 30-day months) at a rate equal to the sum of the applicable Treasury
Rate plus 30 basis points.  Accrued and
unpaid interest will be paid to the Redemption Date.

 

Section 3.2             Notice to Trustee.

 

If the Company elects to redeem Notes pursuant to the
optional redemption provisions of Section 3.1, it shall notify the Trustee
of the Redemption Date and the principal amount of Notes to be redeemed.

 

Section 3.3             Selection of Notes to be Redeemed.

 

If less than all the Notes are to be redeemed, the
Trustee shall select the Notes to be redeemed in any manner that the Trustee
deems fair and appropriate.  The Trustee
shall make the selection from Notes outstanding not previously called for
redemption.  The Trustee may select for
redemption portions of the principal of Notes that have denominations larger
than $2,000.  Notes and portions of them
it selects shall be in amounts of $2,000 or whole multiples of $2,000.

 

24

 

Section 3.4             Notice of Redemption.

 

At least 30 days but not more than 60 days before a
redemption date, the Company shall mail a notice of redemption by first-class
mail to each Holder whose Notes are to be redeemed (and provide a copy of such
notice to the Trustee).

 

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

 

(a)           the redemption date;

 

(b)           the redemption price;

 

(c)           if any Note is being redeemed in
part, the portion of the principal amount of such Note to be redeemed and that
after the Redemption Date upon surrender of such Note a new Note or Notes in
principal amount equal to the unredeemed portion will be issued upon
cancellation of the original Notes;

 

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

 

(e)           that Notes called for redemption
must be surrendered to the Paying Agent to collect the redemption price;

 

(f)            that interest on Notes called for
redemption ceases to accrue on and after the redemption date; and

 

(g)           that no representation is made as to
the correctness or accuracy of the CUSIP number, if any, listed in such notice
or printed on the Notes.

 

At the Company’s request, the Trustee shall give the
notice of redemption in the Company’s name and at its expense, provided that
the Company makes such request at least two Business Days (or such shorter time
as is reasonably acceptable to the Trustee) prior to the date by which such
notice of redemption must be given to Holders in accordance with this Section 3.4
and provides the Trustee with all information required for such notice of
redemption.

 

Section 3.5             Effect of Notice of Redemption.

 

Once notice of redemption is mailed as provided in Section 3.4,
Notes called for redemption become due and payable on the redemption date and
at the redemption price.  A notice of
redemption may not be conditional.  Upon
surrender to the Paying Agent, such Notes shall be paid at the redemption price
plus accrued interest to the redemption date.

 

Section 3.6             Deposit of Redemption Price.

 

On or before the redemption date, the Company shall
deposit with the Paying Agent money sufficient to pay the redemption price of
and accrued interest, if any, on all Notes to be redeemed on that date.  If the Company complies with the provisions
of this Section, on and after the Redemption Date, interest will cease to
accrue on the Note or the portions of the Notes called for redemption.

 

25

 

Section 3.7             Notes Redeemed in Part.

 

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

 

ARTICLE IV.

COVENANTS

 

Section 4.1             Payment of Principal and Interest.

 

The Company covenants and agrees for the benefit of
the Holders of the Notes that it will duly and punctually pay the principal of
and interest, if any, on the Notes in accordance with the terms of the Notes
and this Indenture.

 

Section 4.2             SEC Reports.

 

The Company shall deliver to the Trustee within 15
days after it files them with the SEC copies of the annual reports and the
information, documents, and other reports (or copies of such portions of any of
the foregoing as the SEC may by rules and regulations
prescribe) which the Company is required to file with the SEC pursuant to Section 13
or 15(d) of the Exchange Act.  The
Company also shall comply with the other provisions of TIA § 314(a).

 

Section 4.3             Compliance Certificate.

 

The Company shall deliver to the Trustee, within 90
days after the end of each fiscal year of the Company, an Officer’s Certificate
stating that a review of the activities of the Company and its Subsidiaries
during the preceding fiscal year has been made under the supervision of the
signing Officers with a view to determining whether the Company has kept,
observed, performed and fulfilled its obligations under this Indenture, and
further stating, as to each such Officer signing such certificate, that to the
best of his knowledge the Company has kept, observed, performed and fulfilled
each and every covenant contained in this Indenture and is not in default in
the performance or observance of any of the terms, provisions and conditions
hereof (or, if a Default or Event of Default shall have occurred, describing
all such Defaults or Events of Default of which he may have knowledge).

 

The Company will, so long as any of the Notes are
outstanding, deliver to the Trustee, forthwith upon any Officer becoming aware
of any Default or Event of Default, an Officer’s Certificate specifying such
Default or Event of Default and what action the Company is taking or proposes
to take with respect thereto.

 

Section 4.4             Stay, Extension and Usury Laws.

 

The Company covenants (to the extent that it may
lawfully do so) that it will not at any time insist upon, plead, or in any
manner whatsoever claim or take the benefit or advantage of, any stay,
extension or usury law wherever enacted, now or at any time hereafter in

 

26

 

force, which may affect
the covenants or the performance of this Indenture or the Notes; and the
Company (to the extent it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law and covenants that it will not, by resort
to any such law, hinder, delay or impede the execution of any power herein
granted to the Trustee, but will suffer and permit the execution of every such
power as though no such law has been enacted.

 

Section 4.5             Corporate Existence.

 

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

 

Section 4.6             Taxes.

 

The Company shall, and shall cause each of its
Significant Subsidiaries to, pay prior to delinquency all material taxes,
assessments and governmental levies, except as contested in good faith and by
appropriate proceedings or where the failure to effect such payment is not
adverse in any material respect to the Holder of the Notes.

 

Section 4.7             Limitation on Liens.

 

Neither the Company nor any of its Subsidiaries may
issue, assume or guarantee any Indebtedness secured by a Lien upon any Consolidated
Property or on any Indebtedness or shares of capital stock of, or other
ownership interests in, any Subsidiaries (regardless of whether the
Consolidated Property, Indebtedness, capital stock or ownership interests were
acquired before or after the date of the Indenture) without effectively
providing that the Notes shall be secured equally and ratably with (or prior
to) such Indebtedness so long as such Indebtedness shall be so secured, except
that this restriction will not apply to: (a) Liens existing on the date of
original issuance of the Notes; (b) Liens affecting property of a
corporation or other entity existing at the time it becomes a Subsidiary of the
Company or at the time it is merged into or consolidated with the Company or a
Subsidiary of the Company; (c) Liens on property existing at the time of
acquisition thereof or to secure Indebtedness incurred prior to, at the time
of, or within 24 months after the acquisition for the purpose of financing all
or part of the purchase price thereof; (d) Liens on any property to secure
all or part of the cost of improvements or construction thereon or Indebtedness
incurred to provide funds for such purpose in a principal amount not exceeding
the cost of such improvements or construction; (e) Liens which secure
Indebtedness owing by a Subsidiary of the Company to the Company or to another
Subsidiary of the Company; (f) Liens securing Indebtedness of the Company 

 

27

 

the proceeds of which are used substantially
simultaneously with the incurrence of such Indebtedness to retire Funded Debt;
(g) purchase money security Liens on personal property; (h) Liens securing
Indebtedness of the Company or any of its Subsidiaries the proceeds of which
are used within 24 months of the incurrence of such Indebtedness for the cost
of the construction and development or improvement of property of the Company
or any of its Subsidiaries; (i) Liens on the stock, partnership or other
equity interest of the Company or any of its Subsidiaries in any Joint Venture
or any such Subsidiary which owns an equity interest in such Joint Venture to
secure Indebtedness, provided the amount of such Indebtedness is
contributed and/or advanced solely to such Joint Venture; (j) Liens to government
entities, including pollution control or industrial revenue bond financing; (k)
Liens required by any contract or statute in order to permit the Company or a
Subsidiary of the Company to perform any contract or subcontract made by it
with or at the request of a governmental entity; (l) mechanic’s, materialman’s,
carrier’s or other like Liens, arising in the ordinary course of business; (m)
Liens for taxes or assessments and similar charges; (n) zoning restrictions,
easements, licenses, covenants, reservations, restrictions on the use of real
property and certain other minor irregularities of title; and (o) any
extension, renewal, replacement or refinancing of any Indebtedness secured by a
Lien permitted by any of the foregoing clauses (a) through (n).  Notwithstanding the foregoing, the Company
and any one or more of its Subsidiaries may, without securing the Notes, issue,
assume or guarantee Indebtedness which would otherwise be subject to the
foregoing restrictions in an aggregate principal amount which, together with
all other such Indebtedness of the Company and its Subsidiaries which would
otherwise be subject to the foregoing restrictions (not including Indebtedness
permitted by the preceding paragraph) and the aggregate Value of Sale and
Lease-Back Transactions (other than those in connection with which the Company
has voluntarily retired Funded Debt), does not at any one time exceed 15% of
Consolidated Net Tangible Assets of the Company and its consolidated
Subsidiaries.

 

Section 4.8             Limitation on Sale and Lease-Back
Transactions.

 

Neither the Company nor any of its Subsidiaries shall
enter into any Sale and Lease-Back Transaction unless either (a) the
Company or such Subsidiary would be entitled, pursuant to the above provisions,
to incur Indebtedness in a principal amount equal to or exceeding the Value of
such Sale and Lease-Back Transaction, secured by a Lien on the property to be
leased, without equally and ratably securing the Notes or (b) the Company
within 120 days after the effective date of such Sale and Lease-Back
Transaction applies to the voluntary retirement of its Funded Debt an amount
equal to the Value of the Sale and Lease-Back Transaction (subject to credits
for certain voluntary retirements of Funded Debt).

 

ARTICLE V.

SUCCESSORS

 

Section 5.1             When Company May Merge, Etc.

 

Other than the proposed merger with Caesars
Entertainment, Inc., the Company shall not consolidate with or merge with
or into any other Person or, directly or indirectly, sell, lease or convey all
or substantially all of its assets to another Person, and may not permit any
Person to, directly or indirectly, sell, lease or convey all or substantially
all of its assets to the Company, whether in a single transaction or a series
of related transactions, unless:

 

28

 

(a)           either the Company shall be the
continuing person, or the Person (if other than the Company) formed by such
consolidation or into or with which the Company is merged or to which the
assets of the Company are transferred shall be a corporation organized and
validly existing under the laws of the United States or any State thereof or
the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all the obligations of the Company on the Notes
and under this Indenture;

 

(b)           immediately after giving effect to
such transaction, no Event of Default, and no event or condition which, after
notice or lapse of time or both, would become an Event of Default, shall have
occurred and be continuing; and

 

(c)           the Company has delivered to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, sale, conveyance or lease and such supplemental
indenture comply with this Section 5.1 and that all conditions precedent
herein provided for relating to such transaction have been complied with.

 

Section 5.2             Successor Corporation Substituted.

 

Upon any consolidation or merger, or any sale, lease,
conveyance or other disposition of all or substantially all of the assets of
the Company in accordance with Section 5.1, the successor corporation
formed by such consolidation or into or with which the Company is merged or to
which such sale, lease, conveyance or other disposition is made shall succeed
to, and be substituted for (so that from and after the date of such
consolidation, merger, sale, lease, conveyance or other disposition, the
provisions of this Indenture referring to the “Company” shall refer instead to
the successor corporation and not to the Company), and may exercise every right
and power of, the Company under this Indenture with the same effect as if such
successor person has been named as the Company herein; provided, however,
that the predecessor Company in the case of a sale, lease, conveyance or other
disposition shall not be released from the obligation to pay the principal of
and interest, if any, on the Notes.

 

ARTICLE VI.

DEFAULTS AND REMEDIES

 

Section 6.1             Events of Default.

 

“Event of Default,” wherever used herein with
respect to the Notes, means any one of the following events:

 

(a)           default in the payment of any
interest on any Note when it becomes due and payable, and continuance of such
default for a period of 30 days (unless the entire amount of such payment is
deposited by the Company with the Trustee or with a Paying Agent prior to the
expiration of such period of 30 days); or

 

29

 

(b)           default in the payment of the principal
of any Note at its Maturity, upon redemption or otherwise; or

 

(c)           default in the performance or breach
of any covenant or warranty of the Company or the Guarantor in this Indenture,
which default continues uncured for a period of 60 days after there has been
given, by registered or certified mail, to the Company or the Guarantor by the
Trustee or to the Company, the Guarantor and the Trustee by the Holders of at
least 25% in principal amount of the outstanding Notes (including Additional
Notes, if any) a written notice specifying such default or breach and requiring
it to be remedied and stating that such notice is a “Notice of Default”
hereunder; or

 

(d)           the acceleration of the maturity of
any Indebtedness of the Company (other than Non-recourse Indebtedness), at any
one time, in an amount in excess of the greater of (i) $25 million and (ii) 5%
of Consolidated Net Tangible Assets, if such acceleration is not annulled
within 30 days after written notice to the Company by the Trustee and the
Holders of at least 25% in principal amount of the outstanding Notes (including
Additional Notes, if any); or

 

(e)           the Company or any of its
Significant Subsidiaries pursuant to or within the meaning of any Bankruptcy
Law:

 

(i)            commences a voluntary case,

 

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

 

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

 

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

 

(v)           generally is not paying its debts as
the same become due; or

 

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

 

(i)            is for relief against the Company or
any of its Significant Subsidiaries in an involuntary case,

 

(ii)           appoints a Custodian of the Company
or any of its Significant Subsidiaries or for all or substantially all of its
property, or

 

(iii)          orders the liquidation of the
Company or any of its Significant Subsidiaries, and the order or decree remains
unstayed and in effect for 60 consecutive days.

 

30

 

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

 

Section 6.2             Acceleration of Maturity; Rescission
and Annulment.

 

If an Event of Default with respect to the Notes at
the time outstanding occurs and is continuing (other than an Event of Default
referred to in Section 6.1(e) or (f)) then in every such case the
Trustee or the Holders of not less than 25% in principal amount of the
outstanding Notes (including Additional Notes, if any) may declare the
principal amount of and accrued and unpaid interest, if any, on all of the
Notes to be due and payable immediately, by a notice in writing to the Company
(and to the Trustee if given by Holders), and upon any such declaration such
principal amount (or specified amount) and accrued and unpaid interest, if
any, shall become immediately due and payable. 
If an Event of Default specified in Section 6.1(e) or (f) shall
occur, the principal amount (or specified amount) of and accrued and
unpaid interest, if any, on all outstanding Notes shall ipso facto
become and be immediately due and payable without any declaration or other act
on the part of the Trustee or any Holder.

 

At any time after such a declaration of acceleration
with respect to the Notes has been made and before a judgment or decree for
payment of the money due has been obtained by the Trustee as hereinafter in
this Article provided, the Holders of a majority in aggregate principal
amount of the then outstanding Notes, by written notice to the Company and the
Trustee, may, on behalf of all the Holders, rescind and annul such declaration
and its consequences if:

 

(a)           the Company has paid or deposited
with the Trustee a sum sufficient to pay

 

(i)            all overdue interest, if any, on all
Notes,

 

(ii)           the principal of any Notes which
have become due otherwise than by such declaration of acceleration and interest
thereon,

 

(iii)          to the extent that payment of such
interest is lawful, interest upon any overdue principal and overdue interest at
the rate or rates prescribed therefor in such Notes, and

 

(iv)          all sums paid or advanced by the
Trustee hereunder and the reasonable compensation, expenses, disbursements and
advances of the Trustee, its agents and counsel; and

 

(b)           all Events of Default with respect
to the Notes, other than the non-payment of the principal of the Notes which
have become due solely by such declaration of acceleration, have been cured or
waived as provided in Section 6.13.

 

31

 

No such rescission shall affect any subsequent Default
or impair any right consequent thereon.

 

Section 6.3             Collection of Indebtedness and Suits
for Enforcement by Trustee.

 

The Company covenants that if:

 

(a)           default is made in the payment of
any interest on any Note when such interest becomes due and payable and such
default continues for a period of 30 days, or

 

(b)           default is made in the payment of
principal of any Note at the Maturity thereof,

 

then, the Company will, upon
demand of the Trustee, pay to it, for the benefit of the Holders of the Notes,
the whole amount then due and payable on the Notes for principal and interest
and, to the extent that payment of such interest shall be legally enforceable,
interest on any overdue principal or any overdue interest, at the rate or rates
prescribed therefor in the Notes, and, in addition thereto, such further amount
as shall be sufficient to cover the costs and expenses of collection, including
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel.

 

If the Company fails to pay such amounts forthwith
upon such demand, the Trustee, in its own name and as trustee of an express
trust, may institute a judicial proceeding for the collection of the sums so
due and unpaid, may prosecute such proceeding to judgment or final decree and
may enforce the same against the Company or any other obligor upon such Notes
and collect the moneys adjudged or deemed to be payable in the manner provided
by law out of the property of the Company or any other obligor upon the Notes,
wherever situated.

 

If an Event of Default with respect to any Note occurs
and is continuing, the Trustee may in its discretion proceed to protect and
enforce its rights and the rights of the Holders of the Notes by such
appropriate judicial proceedings as the Trustee shall deem most effectual to
protect and enforce any such rights, whether for the specific enforcement of
any covenant or agreement in this Indenture or in aid of the exercise of any
power granted herein, or to enforce any other proper remedy.

 

Section 6.4             Trustee May File Proofs of
Claim.

 

In case of the pendency of any receivership,
insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment,
composition or other judicial proceeding relative to the Company or any other
obligor upon the Notes or the property of the Company or of such other obligor
or their creditors, the Trustee (irrespective of whether the principal of the
Notes shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Trustee shall have made any demand on
the Company for the payment of overdue principal or interest) shall be
entitled and empowered, by intervention in such proceeding or otherwise,

 

32

 

(a)           to file and prove a claim for the
whole amount of principal and interest owing and unpaid in respect of the Notes
and to file such other papers or documents as may be necessary or advisable in
order to have the claims of the Trustee (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Trustee, its agents
and counsel) and of the Holders allowed in such judicial proceeding, and

 

(b)           to collect and receive any moneys or
other property payable or deliverable on any such claims and to distribute the
same,

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.7.

 

Nothing herein contained shall be deemed to authorize
the Trustee to authorize or consent to or accept or adopt on behalf of any
Holder any plan of reorganization, arrangement, adjustment or composition
affecting the Notes or the rights of any Holder thereof or to authorize the
Trustee to vote in respect of the claim of any Holder in any such proceeding.

 

Section 6.5             Trustee May Enforce Claims
Without Possession of Notes.

 

All rights of action and claims under this Indenture
or the Notes may be prosecuted and enforced by the Trustee without the
possession of any of the Notes or the production thereof in any proceeding
relating thereto, and any such proceeding instituted by the Trustee shall be
brought in its own name as trustee of an express trust, and any recovery of
judgment shall, after provision for the payment of the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel, be
for the ratable benefit of the Holders of the Notes in respect of which such
judgment has been recovered.

 

Section 6.6             Application of Money Collected.

 

Any money collected by the Trustee pursuant to this Article shall
be applied in the following order, at the date or dates fixed by the Trustee
and, in case of the distribution of such money on account of principal or
interest, upon presentation of the Notes and the notation thereon of the
payment if only partially paid and upon surrender thereof if fully paid:

 

First:                       To
the payment of all amounts due the Trustee under Section 7.7; and

 

Second:                  To
the payment of the amounts then due and unpaid for principal of and interest on
the Notes in respect of which or for the benefit of which such money has been
collected, ratably, without preference or priority of any kind, according to
the amounts due and payable on such Notes for principal and interest,
respectively; and

 

33

 

Third:                     To
the Company.

 

Section 6.7             Limitation on Suits.

 

No Holder of any Note shall have any right to
institute any proceeding, judicial or otherwise, with respect to this
Indenture, or for the appointment of a receiver or trustee, or for any other
remedy hereunder, unless

 

(a)           such Holder has previously given
written notice to the Trustee of a continuing Event of Default with respect to
the Notes;

 

(b)           the Holders of not less than 25% in
principal amount of the outstanding Notes shall have made written request to
the Trustee to institute proceedings in respect of such Event of Default in its
own name as Trustee hereunder;

 

(c)           such Holder or Holders have offered
to the Trustee reasonable indemnity against the costs, expenses and liabilities
to be incurred in compliance with such request;

 

(d)           the Trustee for 60 days after its
receipt of such notice, request and offer of indemnity has failed to institute
any such proceeding; and

 

(e)           no direction inconsistent with such
written request has been given to the Trustee during such 60-day period by the
Holders of a majority in principal amount of the outstanding Notes;

 

it being understood and intended that no one or more
of such Holders shall have any right in any manner whatever by virtue of, or by
availing of, any provision of this Indenture to affect, disturb or prejudice
the rights of any other of such Holders, or to obtain or to seek to obtain
priority or preference over any other of such Holders or to enforce any right
under this Indenture, except in the manner herein provided and for the equal
and ratable benefit of all such Holders.

 

Section 6.8             Unconditional Right of Holders to
Receive Principal and Interest.

 

Notwithstanding any other provision in this Indenture,
the Holder of any Notes shall have the right, which is absolute and
unconditional, to receive payment of the principal of and interest, if any, on
the Notes on the Stated Maturity (or, in the case of redemption, on the
Redemption Date) and to institute suit for the enforcement of any such
payment, and such rights shall not be impaired without the consent of such
Holder.

 

Section 6.9             Restoration of Rights and Remedies.

 

If the Trustee or any Holder has instituted any
proceeding to enforce any right or remedy under this Indenture and such
proceeding has been discontinued or abandoned for any reason, or has been
determined adversely to the Trustee or to such Holder, then and in every such
case, subject to any determination in such proceeding, the Company, the Trustee
and the Holders shall be restored severally and respectively to their former
positions hereunder and thereafter all rights and remedies of the Trustee and
the Holders shall continue as though no such proceeding had been instituted.

 

34

 

Section 6.10           Rights and Remedies Cumulative.

 

Except as otherwise provided with respect to the replacement
or payment of mutilated, destroyed, lost or stolen Notes in Section 2.7,
no right or remedy herein conferred upon or reserved to the Trustee or to the
Holders is intended to be exclusive of any other right or remedy, and every
right and remedy shall, to the extent permitted by law, be cumulative and in
addition to every other right and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

Section 6.11           Delay or Omission Not Waiver.

 

No delay or omission of the Trustee or of any Holder
of any Notes to exercise any right or remedy accruing upon any Event of Default
shall impair any such right or remedy or constitute a waiver of any such Event
of Default or an acquiescence therein. 
Every right and remedy given by this Article or by law to the
Trustee or to the Holders may be exercised from time to time, and as often as
may be deemed expedient, by the Trustee or by the Holders, as the case may be.

 

Section 6.12           Control by Holders.

 

The Holders of a majority in principal amount of the
outstanding Notes shall have the right to direct the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred on the Trustee, with respect to the
Notes, provided that:

 

(a)           such direction shall not be in
conflict with any rule of law or with this Indenture,

 

(b)           the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction, and

 

(c)           subject to the provisions of Section 6.1,
the Trustee shall have the right to decline to follow any such direction if the
Trustee in good faith shall, by a Responsible Officer of the Trustee, determine
that the proceeding so directed would involve the Trustee in personal
liability, cost or expense.

 

Section 6.13           Waiver of Past Defaults.

 

The Holders of not less than a majority in principal
amount of the outstanding Notes may on behalf of the Holders of all the Notes
waive any past Default hereunder with respect to the Notes and its
consequences, except a Default in the payment of the principal of or

 

35

 

interest on any Notes (provided,
however, that the Holders of a majority in principal amount of the
outstanding Notes may rescind an acceleration and its consequences, including
any related payment default that resulted from such acceleration).  Upon any such waiver, such Default shall
cease to exist, and any Event of Default arising therefrom shall be deemed to
have been cured, for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other Default or impair any right consequent
thereon.

 

Section 6.14           Undertaking for Costs.

 

All parties to this Indenture agree, and each Holder
of any Notes by his acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any
right or remedy under this Indenture, or in any suit against the Trustee for
any action taken, suffered or omitted by it as Trustee, the filing by any party
litigant in such suit of an undertaking to pay the costs of such suit, and that
such court may in its discretion assess reasonable costs, including reasonable
attorneys’ fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant;
but the provisions of this Section shall not apply to any suit instituted
by the Company, to any suit instituted by the Trustee, to any suit instituted
by any Holder, or group of Holders, holding in the aggregate more than 10% in
principal amount of the outstanding Notes, or to any suit instituted by any
Holder for the enforcement of the payment of the principal of or interest on
any Notes on or after the Stated Maturity or Stated Maturities expressed in
such Note (or, in the case of redemption, on the redemption date).

 

ARTICLE VII.

TRUSTEE

 

Section 7.1             Duties of Trustee.

 

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

 

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

 

(i)            The Trustee need perform only those
duties that are specifically set forth in this Indenture and no others.

 

(ii)           In
the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed
therein, upon Officer’s Certificates or Opinions of Counsel furnished to the
Trustee and conforming to the requirements of this Indenture; however,
in the case of any such Officer’s Certificates or Opinions of Counsel which by
any provisions hereof are specifically required to be furnished to the Trustee,
the Trustee shall examine such Officer’s
Certificates and Opinions of Counsel to determine whether or not they conform
to the requirements of this Indenture.

 

36

 

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

 

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

 

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

 

(iii)          The Trustee shall not be liable with
respect to any action taken, suffered or omitted to be taken by it with respect
to the Notes in good faith in accordance with the direction of the Holders of a
majority in principal amount of the outstanding Notes relating to the time,
method and place of conducting any proceeding for any remedy available to the
Trustee, or exercising any trust or power conferred upon the Trustee, under
this Indenture with respect to the Notes.

 

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

 

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

 

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

 

(g)           No provision of this Indenture shall
require the Trustee to risk its own funds or otherwise incur any financial
liability in the performance of any of its duties, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk is not
reasonably assured to it.

 

(h)           The Paying Agent, the Registrar and
any authenticating agent shall be entitled to the protections, immunities and
standard of care as are set forth in paragraphs (a), (b) and (c) of
this Section with respect to the Trustee.

 

Section 7.2             Rights of Trustee.

 

(a)           The
Trustee may rely on and shall be protected in acting or refraining from acting
upon any document believed by it to be genuine and to have been signed or presented by the proper Person.  The Trustee need not investigate any fact or
matter stated in the document.

 

37

 

(b)           Before the Trustee acts or refrains
from acting, it may require an Officer’s Certificate or an Opinion of
Counsel.  The Trustee shall not be liable
for any action it takes or omits to take in good faith in reliance on such
Officer’s Certificate or Opinion of Counsel.

 

(c)           The Trustee may act through agents
and shall not be responsible for the misconduct or negligence of any agent
appointed with due care.  No Depositary
shall be deemed an agent of the Trustee and the Trustee shall not be
responsible for any act or omission by any Depositary.

 

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

 

(e)           The Trustee may consult with counsel
and the advice of such counsel or any Opinion of Counsel shall be full and
complete authorization and protection in respect of any action taken, suffered
or omitted by it hereunder in good faith and in reliance thereon.

 

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

 

(g)           The Trustee shall be entitled to
rely on faxed or telecopy documents in the same manner and to the same extent
that it may rely on original, manually signed documents.

 

(h)           Except with respect to Section 4.1,
the Trustee shall have no duty to inquire as to the performance of the Company
with respect to the covenants contained in Article 4.  In addition, the Trustee shall not be deemed
to have notice of any Default or Event of Default unless (i) any Default
or Event of Default has occurred pursuant to Sections 4.1, 6.1(a) or
6.1(b), (ii) a trust officer of the Trustee has actual knowledge thereof
or (iii) written notice of any event which is in fact such a default is
received by the Trustee at the Corporate Trust Office, and such notice
references the Notes and this Indenture.

 

(i)            Delivery of reports, information and
documents to the Trustee under Section 4.2 is for informational purposes
only and the Trustee’s receipt of the foregoing shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Company’s compliance with any of
their covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officer’s Certificates).

 

38

 

Section 7.3             Individual Rights of Trustee.

 

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

 

Section 7.4             Trustee’s Disclaimer.

 

The Trustee makes no representation as to the validity
or adequacy of this Indenture or the Notes, it shall not be accountable for the
Company’s use of the proceeds from the Notes, and it shall not be responsible
for any statement in the Notes other than its authentication.

 

Section 7.5             Notice of Defaults.

 

If a Default or Event of Default occurs and is
continuing with respect to the Notes and if it is known to a Responsible
Officer of the Trustee, the Trustee shall mail to each Noteholder, notice of a
Default or Event of Default within 90 days after it occurs or, if later, after
a Responsible Officer of the Trustee has knowledge of such Default or Event of
Default.  Except in the case of a Default
or Event of Default in payment of principal of or interest on the Notes, the
Trustee may withhold the notice if and so long as its corporate trust committee
or a committee of its Responsible Officers in good faith determines that
withholding the notice is in the interests of Noteholders.

 

Section 7.6             Reports by Trustee to Holders.

 

Within 60 days after May 15 in each year, the
Trustee shall transmit by mail to all Noteholders, as their names and addresses
appear on the register kept by the Registrar, a brief report dated as of such May 15,
in accordance with, and to the extent required under, TIA § 313.

 

A copy of each report at the time of its mailing to
Noteholders shall be filed with the SEC and each stock exchange on which the
Notes are listed.  The Company shall
promptly notify the Trustee when the Notes are listed on any stock exchange.

 

Section 7.7             Compensation and Indemnity.

 

The Company shall pay to the Trustee from time to time
reasonable compensation for its services as shall be agreed upon pursuant to a
separate agreement dated not later than the date hereof.  The Trustee’s compensation shall not be
limited by any law on compensation of a trustee of an express trust.  The Company shall reimburse the Trustee upon
request for all reasonable out-of-pocket expenses incurred by it.  Such expenses shall include the reasonable
compensation and expenses of the Trustee’s agents and counsel.

 

The Company shall indemnify the Trustee (including the
cost of defending itself) against any loss, liability or expense incurred by it
except as set forth in the next paragraph in the

 

39

 

performance of its duties
under this Indenture as Trustee or Agent. 
The Trustee shall notify the Company promptly of any claim for which it may
seek indemnity.  The Company shall defend
the claim and the Trustee shall cooperate in the defense.  The Trustee may have separate counsel and the
Company shall pay the reasonable fees and expenses of such counsel.  The Company need not pay for any settlement
made without its consent, which consent shall not be unreasonably
withheld.  This indemnification shall
apply to officers, directors, employees, shareholders and agents of the
Trustee.

 

The Company need not reimburse any expense or
indemnify against any loss or liability incurred by the Trustee or by any
officer, director, employee, shareholder or agent of the Trustee through gross
negligence or bad faith.

 

To secure the Company’s payment obligations in this
Section, the Trustee shall have a lien prior to the Notes on all money or
property held or collected by the Trustee, except that held in trust to pay
principal and interest on particular Notes.

 

When
the Trustee incurs expenses or renders services after an Event of Default
specified in Section 6.1(e) or (f) occurs, the expenses and the
compensation for the services are intended to constitute expenses of
administration under any Bankruptcy Law.

 

The
obligations of the Company pursuant to this Section 7.7 shall survive the
resignation or removal of the Trustee and the termination of this Indenture.

 

Section 7.8             Replacement of Trustee.

 

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

 

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

 

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

 

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

 

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

 

(d)           the Trustee becomes incapable of
acting.

 

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

 

40

 

If a successor Trustee with respect to the Notes does
not take office within 60 days after the retiring Trustee resigns or is
removed, the retiring Trustee, the Company or the Holders of at least 10% in
principal amount of the Notes may petition any court of competent jurisdiction
for the appointment of a successor Trustee.

 

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

 

A successor Trustee shall deliver a written acceptance
of its appointment to the retiring Trustee and to the Company.  Immediately after that, the retiring Trustee
shall transfer all property held by it as Trustee to the successor Trustee
subject to the lien provided for in Section 7.7, the resignation or
removal of the retiring Trustee shall become effective, and the successor
Trustee shall have all the rights, powers and duties of the Trustee with
respect to the Notes.  A successor
Trustee shall mail a notice of its succession to each Noteholder.  Notwithstanding replacement of the Trustee
pursuant to this Section 7.8, the Company’s obligations under Section 7.7
hereof shall continue for the benefit of the retiring trustee with respect to
expenses and liabilities incurred by it prior to such replacement.

 

Section 7.9             Successor Trustee by Merger, etc.

 

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

 

Section 7.10           Eligibility; Disqualification.

 

This Indenture shall always have a Trustee who
satisfies the requirements of TIA § 310(a)(1), (2) and (5).  The Trustee shall always have a combined
capital and surplus of at least $50,000,000 as set forth in its most recent
published annual report of condition. 
The Trustee shall comply with TIA § 310(b).

 

Section 7.11           Preferential Collection of Claims
Against Company.

 

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

 

41

 

ARTICLE VIII.

SATISFACTION AND DISCHARGE; DEFEASANCE

 

Section 8.1             Satisfaction and Discharge of
Indenture.

 

This Indenture shall upon Company Order cease to be of
further effect (except as hereinafter provided in this Section 8.1), and
the Trustee, at the expense of the Company, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture, when

 

(a)           either

 

(i)            all Notes theretofore authenticated
and delivered (other than Notes that have been destroyed, lost or stolen and
that have been replaced or paid) have been delivered to the Trustee for
cancellation; or

 

(ii)           all such Notes not theretofore
delivered to the Trustee for cancellation

 

(1)                       have
become due and payable, or

 

(2)                       will
become due and payable at their Stated Maturity within one year, or

 

(3)                       are
to be called for redemption within one year under arrangements satisfactory to
the Trustee for the giving of notice of redemption by the Trustee in the name,
and at the expense, of the Company, or

 

(4)                       are
deemed paid and discharged pursuant to Section 8.3, as applicable;

 

and the Company, in the case of (1), (2) or (3) above,
has deposited or caused to be deposited with the Trustee as trust funds in
trust an amount sufficient for the purpose of paying and discharging the entire
indebtedness on such Notes not theretofore delivered to the Trustee for
cancellation, for principal and interest to the date of such deposit (in the
case of Notes which have become due and payable on or prior to the date of such
deposit) or to the Stated Maturity or redemption date, as the case may be;

 

(b)           the Company has paid or caused to be
paid all other sums payable hereunder by the Company; and

 

(c)           the Company has delivered to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture have been complied with.

 

Notwithstanding the satisfaction and discharge of this
Indenture, the obligations of the Company to the Trustee under Section 7.7,
and, if money shall have been deposited with the Trustee pursuant to clause (a) of
this Section, the provisions of Sections 2.3, 2.7, 2.14, 8.1,  8.2
and 8.5 shall survive.

 

42

 

Section 8.2             Application of Trust Funds;
Indemnification.

 

(a)           Subject to the provisions of Section 8.5,
all money deposited with the Trustee pursuant to Section 8.1, all money
and U.S. Government Obligations or Foreign Government Obligations deposited
with the Trustee pursuant to Section 8.3 or 8.4 and all money received by
the Trustee in respect of U.S. Government Obligations or Foreign Government
Obligations deposited with the Trustee pursuant to Section 8.3 or 8.4,
shall be held in trust and applied by it, in accordance with the provisions of
the Notes and this Indenture, to the payment, either directly or through any
Paying Agent (including the Company acting as its own Paying Agent) as the
Trustee may determine, to the persons entitled thereto, of the principal and
interest for whose payment such money has been deposited with or received by
the Trustee or to make payments as contemplated by Sections 8.3 or 8.4.

 

(b)           The Company shall pay and shall
indemnify the Trustee against any tax, fee or other charge imposed on or
assessed against U.S. Government Obligations or Foreign Government Obligations
deposited pursuant to Sections 8.3 or 8.4 or the interest and principal
received in respect of such obligations other than any payable by or on behalf
of Holders.

 

(c)           The Trustee shall deliver or pay to
the Company from time to time upon Company Request any U.S. Government
Obligations or Foreign Government Obligations or money held by it as provided
in Sections 8.3 or 8.4 which, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written certification
thereof delivered to the Trustee, are then in excess of the amount thereof
which then would have been required to be deposited for the purpose for which
such U.S. Government Obligations or Foreign Government Obligations or money
were deposited or received.  This
provision shall not authorize the sale by the Trustee of any U.S. Government
Obligations or Foreign Government Obligations held under this Indenture.

 

Section 8.3             Legal Defeasance of Notes.

 

The Company shall be deemed to have paid and
discharged the entire indebtedness on all the outstanding Notes on the 91st day
after the date of the deposit referred to in subparagraph (d) hereof, and
the provisions of this Indenture, as it relates to such outstanding Notes,
shall no longer be in effect (and the Trustee, at the expense of the Company,
shall, at Company Request, execute proper instruments acknowledging the same),
except as to:

 

(a)           the rights of Noteholders to
receive, from the trust funds described in subparagraph (d) hereof,
payment of the principal of and each installment of principal of and interest
on the outstanding Notes on the Stated Maturity of such principal or
installment of principal or interest;

 

(b)           the provisions of Sections 2.3, 2.7,
2.14, 8.2, 8.3 and 8.5; and

 

(c)           the rights, powers, trust and
immunities of the Trustee hereunder;

 

43

 

provided that, the following
conditions shall have been satisfied:

 

(d)           the Company shall have deposited or
caused to be deposited irrevocably with the Trustee as trust funds in trust for
the purpose of making the following payments, specifically pledged as security
for and dedicated solely to the benefit of the Noteholders, cash in Dollars (or
such other money or currencies as shall then be legal tender in the United
States) and/or U.S. Government Obligations, which through the payment of interest
and principal in respect thereof, in accordance with their terms, will provide
(and without reinvestment and assuming no tax liability will be imposed on such
Trustee), not later than one day before the due date of any payment of money,
an amount in cash, sufficient, in the opinion of a nationally recognized firm
of independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge each installment of principal of
and interest, if any, on all the Notes on the dates such installments of
interest or principal are due;

 

(e)           such deposit will not result in a
breach or violation of, or constitute a default under, this Indenture or any
other agreement or instrument to which the Company is a party or by which it is
bound;

 

(f)            no Default or Event of Default with
respect to the Notes shall have occurred and be continuing on the date of such
deposit or during the period ending on the 91st day after such date;

 

(g)           the Company shall have delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel to the effect
that (i) the Company has received from, or there has been published by,
the Internal Revenue Service a ruling, or (ii) since the date of execution
of this Indenture, there has been a change in the applicable Federal income tax
law, in either case to the effect that, and based thereon such Opinion of
Counsel shall confirm that, the Holders of the Notes will not recognize income,
gain or loss for Federal income tax purposes as a result of such deposit,
defeasance and discharge and will be subject to Federal income tax on the same
amount and in the same manner and at the same times as would have been the case
if such deposit, defeasance and discharge had not occurred;

 

(h)           the Company shall have delivered to
the Trustee an Officer’s Certificate stating that the deposit was not made by
the Company with the intent of preferring the Holders of the Notes over any
other creditors of the company or with the intent of defeating, hindering,
delaying or defrauding any other creditors of the Company;

 

(i)            such deposit shall not result in the
trust arising from such deposit constituting an investment company (as defined
in the Investment Company Act of 1940, as amended), or such trust shall be
qualified under such Act or exempt from regulation thereunder; and

 

44

 

(j)            the Company shall have delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating
that all conditions precedent provided for relating to the defeasance
contemplated by this Section have been complied with.

 

Section 8.4             Covenant Defeasance.

 

On and after the 91st day after the date of the
deposit referred to in subparagraph (a) hereof, the Company may omit to
comply with any term, provision or condition set forth under Sections 4.2, 4.3,
4.4, 4.5, 4.6, 4.7, 4.8 and 5.1 (and the failure to comply with any such
covenants shall not constitute a Default or Event of Default under Section 6.1) and
the occurrence of any event described in clause (e) of Section 6.1
shall not constitute a Default or Event of Default hereunder, with respect to
the Notes, provided that the following conditions shall have been satisfied:

 

(a)           With reference to this Section 8.4,
the Company has deposited or caused to be irrevocably deposited (except as
provided in Section 8.2(c)) with the Trustee as trust funds in trust,
specifically pledged as security for, and dedicated solely to, the benefit of
the Noteholders, cash in Dollars (or such other money or currencies as shall
then be legal tender in the United States) and/or U.S. Government
Obligations, which through the payment of interest and principal in respect
thereof, in accordance with their terms, will provide (and without reinvestment
and assuming no tax liability will be imposed on such Trustee), not later than
one day before the due date of any payment of money, an amount in cash,
sufficient, in the opinion of a nationally recognized firm of independent
certified public accountants expressed in a written certification thereof
delivered to the Trustee, to pay principal and interest, if any, on the Notes
on the dates such installments of interest or principal are due;

 

(b)           Such deposit will not result in a
breach or violation of, or constitute a default under, this Indenture or any
other agreement or instrument to which the Company is a party or by which it is
bound;

 

(c)           No Default or Event of Default with
respect to the Notes shall have occurred and be continuing on the date of such
deposit or during the period ending on the 91st day after such date;

 

(d)           the Company shall have delivered to
the Trustee an Opinion of Counsel confirming that Holders of the Notes will not
recognize income, gain or loss for federal income tax purposes as a result of
such deposit and defeasance and will be subject to federal income tax on the
same amounts, in the same manner and at the same times as would have been the
case if such deposit and defeasance had not occurred;

 

(e)           the Company shall have delivered to
the Trustee an Officer’s Certificate stating the deposit was not made by the
Company with the intent of preferring the Holders of the Notes over any other
creditors of the Company or with the intent of defeating, hindering, delaying
or defrauding any other creditors of the Company; and

 

45

 

(f)            The Company shall have delivered to
the Trustee an Officer’s Certificate and an Opinion of Counsel, each stating
that all conditions precedent herein provided for relating to the defeasance
contemplated by this Section have been complied with.

 

Section 8.5             Repayment to Company.

 

The Trustee and the Paying Agent shall pay to the
Company upon request any money held by them for the payment of principal and
interest that remains unclaimed for two years. 
After that, Noteholders entitled to the money must look to the Company
for payment as general creditors unless an applicable abandoned property law
designates another Person.

 

ARTICLE IX.

AMENDMENTS AND WAIVERS

 

Section 9.1             Without Consent of Holders.

 

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

 

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

 

(b)           to comply with Article V;

 

(c)           to make any change that does not
adversely affect the rights of any Noteholder;

 

(d)           to provide for the issuance of
Additional Notes as permitted by this Indenture; or

 

(e)           to comply with requirements of the
SEC in order to effect or maintain the qualification of this Indenture under the
TIA.

 

The Company may also provide for the issuance of New
Notes, which will have terms substantially identical to the other outstanding
Notes except that (i) a Private Placement Legend shall not be required and
(ii) the related transfer restrictions under the Securities Act and this
Indenture and the payment of Additional Interest shall not be applicable to
such New Notes.  The New Notes shall be
treated, together with any outstanding Notes, as a single issue of securities.

 

Section 9.2             With Consent of Holders.

 

The Company and the Trustee may enter into a
supplemental indenture with the written consent of the Holders of at least a
majority in principal amount of the outstanding Notes affected by such
supplemental indenture (including consents obtained in connection with a tender
offer or exchange offer for the Notes), for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Indenture or of any supplemental indenture or of modifying in any manner the
rights of the Noteholders.  Except as

 

46

 

provided in Section 6.13,
the Holders of at least a majority in principal amount of the outstanding Notes
by notice to the Trustee (including consents obtained in connection with a
tender offer or exchange offer for the Notes) may waive compliance by the
Company with any provision of this Indenture or the Notes.

 

It shall not be necessary for the consent of the
Noteholders under this Section 9.2 to approve the particular form of any
proposed supplemental indenture or waiver, but it shall be sufficient if such
consent approves the substance thereof. 
After a supplemental indenture or waiver under this Article becomes
effective, the Company shall mail to the Noteholders a notice briefly
describing the supplemental indenture or waiver.  Any failure by the Company to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture or waiver.

 

Section 9.3             Limitations.

 

Without the consent of each Noteholder affected, an
amendment or waiver may not:

 

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

 

(b)           reduce the rate of or extend the
time for payment of interest (including default interest) on the Notes;

 

(c)           reduce the principal or change the
Stated Maturity of the Notes or reduce the amount of, or postpone the date
fixed for, redemption;

 

(d)           reduce the principal amount of
discount securities payable upon acceleration of Maturity;

 

(e)           waive a Default or Event of Default
in the payment of the principal of or interest, if any, on the Notes (except a
rescission of acceleration of the Notes by the Holders of at least a majority
in aggregate principal amount of the then outstanding Notes and a waiver of the
payment default that resulted from such acceleration);

 

(f)            make the principal of or interest,
if any, on the Notes payable in any currency other than that stated in the
Note; or

 

(g)           make any change in Sections 6.8,
6.13, 9.3 (this sentence), or 10.15.

 

Section 9.4             Compliance with Trust Indenture Act.

 

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

 

47

 

Section 9.5             Revocation and Effect of Consents.

 

Until an amendment or waiver becomes effective, a
consent to it by a Holder of a Note is a continuing consent by the Holder and
every subsequent Holder of a Note or portion of a Note that evidences the same
debt as the consenting Holder’s Note, even if notation of the consent is not
made on any Note.  However, any such
Holder or subsequent Holder may revoke the consent as to his Note or portion of
a Note if the Trustee receives the notice of revocation before the date the
amendment or waiver becomes effective.

 

Any amendment or waiver once effective shall bind
every Noteholder unless it is of the type described in any of clauses (a) through
(f) of Section 9.3.  In that
case, the amendment or waiver shall bind each Holder of a Note who has
consented to it and every subsequent Holder of a Note or portion of a Note that
evidences the same debt as the consenting Holder’s Note.

 

Section 9.6             Notation on or Exchange of Notes.

 

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

 

Section 9.7             Trustee Protected.

 

In executing, or accepting the additional trusts
created by, any supplemental indenture permitted by this Article or the
modifications thereby of the trusts created by this Indenture, the Trustee
shall be entitled to receive, and (subject to Section 7.1) shall be fully
protected in relying upon, an Officer’s Certificate and an Opinion of Counsel
each stating that the execution of such supplemental indenture is authorized or
permitted by this Indenture.  The Trustee
shall sign all supplemental indentures, except that the Trustee need not sign
any supplemental indenture that adversely affects its rights.

 

ARTICLE X.

MISCELLANEOUS

 

Section 10.1           Trust Indenture Act Controls.

 

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

 

Section 10.2           Notices.

 

Any notice or communication by the Company or the
Trustee to the other is duly given if in writing and delivered in person or
mailed by first-class mail, telecopier or overnight air carrier guaranteeing
next day delivery:

 

48

 

if to the Company:

 

	
   

  	
   

  	
  Harrah’s
  Operating Company, Inc.

  
	
   

  	
   

  	
  One Harrah’s
  Court

  
	
   

  	
   

  	
  Las Vegas,
  Nevada 89119

  
	
   

  	
   

  	
  Telecopier No.:
  (702) 407-6022

  
	
   

  	
   

  	
  Attention:
  General Counsel

  
	
   

  	
   

  	
   

  
	
  with a copy to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Latham &
  Watkins LLP

  
	
   

  	
   

  	
  650 Town Center
  Dr.

  
	
   

  	
   

  	
  20th Floor

  
	
   

  	
   

  	
  Costa Mesa,
  California 92626

  
	
   

  	
   

  	
  Telecopier No.:
  (714) 755-8290

  
	
   

  	
   

  	
  Attention:
  Charles Ruck, Esq.

  
	
   

  	
   

  	
   

  
	
  if to the
  Trustee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. Bank
  National Association

  
	
   

  	
   

  	
  60 Livingston
  Avenue

  
	
   

  	
   

  	
  St. Paul,
  Minnesota 55107

  
	
   

  	
   

  	
  Telecopier No.:
  (651) 495-8097

  
	
   

  	
   

  	
  Attention:
  Corporate Trust Services

  

 

All notices and communications (other than those sent
to Holders) will be deemed to have been duly given: at the time delivered by
hand, if personally delivered; five Business Days after being deposited in the
mail, postage prepaid, if mailed; when receipt acknowledged, if telecopied; and
the next Business Day after timely delivery to the courier, if sent by
overnight air courier guaranteeing next day delivery.

 

The Company or the Trustee by notice to the other may
designate additional or different addresses for subsequent notices or
communications.

 

Any notice or communication to a Noteholder shall be
mailed by first-class mail overnight air courier guaranteeing next day delivery
to the Noteholder’s address shown on the register kept by the Registrar.  Failure to mail a notice or communication to
a Noteholder or any defect in it shall not affect its sufficiency with respect
to other Noteholders.

 

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

 

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

 

49

 

Section 10.3           Communication by Holders with Other
Holders.

 

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

 

Section 10.4           Certificate and Opinion as to
Conditions Precedent.

 

Upon any request or application by the Company to the
Trustee to take any action under this Indenture, the Company shall furnish to
the Trustee:

 

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

 

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

 

Section 10.5           Statements Required in Certificate
or Opinion.

 

Each certificate or opinion with respect to compliance
with a condition or covenant provided for in this Indenture (other than a
certificate provided pursuant to TIA § 314(a)(4)) shall comply with
the provisions of TIA § 314(e) and shall include:

 

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

 

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

 

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

 

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

 

Section 10.6           Rules by Trustee and Agents.

 

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

 

Section 10.7           Legal Holidays.

 

A “Legal Holiday” is any day that is not a Business
Day.  If a payment date is a Legal
Holiday at a place of payment, payment may be made at that place on the next
succeeding day that is not a Legal Holiday, and no interest shall accrue for
the intervening period.

 

50

 

Section 10.8                                No Recourse Against Others.

 

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

 

Section 10.9                                Counterparts.

 

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

 

Section 10.10                          Governing Laws.

 

This
Indenture and the Notes shall be governed by the law of the State of New York
without regard to the conflict of law principles that would result in the
application of any law other than the law of the State of New York.

 

Section 10.11                          No Adverse Interpretation of Other
Agreements.

 

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

 

Section 10.12                          Successors.

 

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

 

Section 10.13                          Severability.

 

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

 

Section 10.14                          Table of Contents, Headings, Etc.

 

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

 

51

 

Section 10.15                          Judgment Currency.

 

The Company agrees, to the fullest extent that it may
effectively do so under applicable law, that (a) if for the purpose of
obtaining judgment in any court it is necessary to convert the sum due in
respect of the principal of or interest or other amount on the Notes (the “Required
Currency”) into a currency in which a judgment will be rendered (the “Judgment
Currency”), the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The
City of New York the Required Currency with the Judgment Currency on the day on
which final unappealable judgment is entered, unless such day is not a New York
Banking Day, then, the rate of exchange used shall be the rate at which in
accordance with normal banking procedures the Trustee could purchase in The
City of New York the Required Currency with the Judgment Currency on the New
York Banking Day preceding the day on which final unappealable judgment is
entered and (b) its obligations under this Indenture to make payments in
the Required Currency (i) shall not be discharged or satisfied by any
tender, any recovery pursuant to any judgment (whether or not entered in
accordance with subsection (a)), in any currency other than the Required
Currency, except to the extent that such tender or recovery shall result in the
actual receipt, by the payee, of the full amount of the Required Currency
expressed to be payable in respect of such payments, (ii) shall be
enforceable as an alternative or additional cause of action for the purpose of
recovering in the Required Currency the amount, if any, by which such actual
receipt shall fall short of the full amount of the Required Currency so
expressed to be payable, and (iii) shall not be affected by judgment being
obtained for any other sum due under this Indenture.  For purposes of the foregoing, “New York
Banking Day” means any day except a Saturday, Sunday or a legal holiday in
The City of New York on which banking institutions are authorized or required
by law, regulation or executive order to close.

 

ARTICLE XI.

SINKING FUNDS

 

Section 11.1                                No Sinking Funds.

 

The Notes shall not be entitled to the benefit of any
sinking fund.

 

ARTICLE XII.

GUARANTEE

 

Section 12.1                                Guarantee.

 

12.1.1                  Subject to Section 12.1.2,
below, the Guarantor hereby irrevocably and unconditionally guarantees (such
guarantee being the “Guarantee”) to each Holder of a Note authenticated
and delivered by the Trustee and to the Trustee and its successors and assigns,
irrespective of the validity and enforceability of this Indenture and the Notes
hereunder, that: (i) the principal of, premium, if any, and interest on
the Notes promptly will be paid in full when due, whether at the Maturity, by
acceleration, call for redemption or otherwise, and interest on the overdue
principal, premium, if any, and interest, if any, of the Notes, if lawful, and
all other obligations of the Company to the

 

52

 

Holders and the Trustee hereunder or
thereunder will be promptly paid in full or performed, all in accordance with
the terms hereof and thereof, and (ii) in case of any extension of time of
payment or renewal of any Notes or any of such other obligations, the same will
be promptly paid in full when due or performed in accordance with the terms of
the extension or renewal, whether at Stated Maturity, by acceleration or
otherwise. Failing payment when due by the Company of any amount so guaranteed
for whatever reason, the Guarantor shall be obligated to pay the same
immediately.  The Guarantor hereby agrees
that its obligations hereunder shall be unconditional, irrespective of the
validity, regularity or enforceability of the Notes or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
of the Notes with respect to any provisions hereof or thereof, the recovery of
any judgment against the Company, any action to enforce the same or any other
circumstance which might otherwise constitute a legal or equitable discharge or
defense of a guarantor.  The Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with
a court in the event of insolvency or bankruptcy of the Company, any right to
require a proceeding first against the Company, protest, notice and all demands
whatsoever and covenants that this Guarantee shall not be discharged except by
complete performance of the obligations contained in the Notes and this
Indenture. If any Holder or the Trustee is required by any court or otherwise
to return to the Company or any custodian, Trustee, liquidator or other similar
official acting in relation to the Company, any amount paid by the Company to
the Trustee or such Holder, this Guarantee, to the extent theretofore
discharged, shall be reinstated in full force and effect. The Guarantor agrees
that it shall not be entitled to any right of subrogation in relation to the
Holders in respect of any obligations guaranteed hereby until payment in full
of all obligations is guaranteed hereby.

 

12.1.2                  It is the intention of the Guarantor
and the Company that the obligations of the Guarantor hereunder shall be, but
not in excess of, the maximum amount permitted by applicable law.  Accordingly, if the obligations in respect of
the Guarantee would be annulled, avoided or subordinated to the creditors of
the Guarantor by a court of competent jurisdiction in a proceeding actually
pending before such court as a result of a determination both that such
Guarantee was made without fair consideration and, immediately after giving
effect thereto, the Guarantor was insolvent or unable to pay its debts as they
mature or left with an unreasonably small capital, then the obligations of the
Guarantor under the Guarantee shall be reduced by such court if such reduction
would result in the avoidance of such annulment, avoidance or subordination;
provided, however, that any reduction pursuant to this paragraph shall be made
in the smallest amount as is strictly necessary to reach such result.  For purposes of this paragraph, “fair
consideration,” “insolvency,” “unable to pay its debts as they mature,” “unreasonably
small capital” and the effective times of reductions, if any, required by this
paragraph shall be determined in accordance with applicable law.

 

12.1.3                  The Guarantor shall be subrogated to
all rights of the Holders against the Company in respect of any amounts paid by
Guarantor pursuant to the provisions of the Guarantee or this Indenture;
provided, however, that the Guarantor shall

 

53

 

not be entitled to enforce or to
receive any payments arising out of, or based upon, such right of subrogation
until the principal of, premium, if any, and interest on all Notes issued
hereunder shall have been paid in full.

 

Section 12.2                                Execution and Delivery of Guarantee.

 

To
evidence the Guarantee set forth in Section 12.1, the Company and the
Guarantor hereby agree that a notation of such Guarantee shall be endorsed on
each Note authenticated and delivered by the Trustee, that such notation of
such Guarantee shall be in the form attached hereto as Exhibit B, and
shall be executed on behalf of the Guarantor by its Chairman of the Board, one
of its Vice Chairmen of the Board, its President or one of its Vice Presidents.

 

The
Guarantor hereby agrees that the Guarantee set forth in Section 12.1 shall
remain in full force and effect notwithstanding any failure to endorse on each
Note a notation of the Guarantee.

 

If
an officer whose signature is on this Indenture no longer holds that office at
the time the Trustee authenticates the Note on which the Guarantee is endorsed,
the Guarantee shall be valid nevertheless.

 

The
delivery of any Note by the Trustee, after the authentication thereof
hereunder, shall constitute due delivery of the Guarantee set forth in this
Indenture on behalf of the Guarantor.

 

Section 12.3                                Release of Guarantor.

 

The
Guarantor shall be released from all of its obligations under the Guarantee and
under this Indenture if:

 

(a)                                  the Company or the Guarantor has
transferred all or substantially all of its properties and assets to any Person
(whether by sale, merger or consolidation or otherwise), or has merged into or
consolidated with another Person, pursuant to a transaction in compliance with
this Indenture and:

 

(i)                                     the corporation to whom all or
substantially all of the properties and assets of the Company or the Guarantor
are transferred, or whom the Company or the Guarantor has merged into or
consolidated with, has expressly assumed, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form satisfactory to the Trustee, all
the obligations of the Guarantor under the Guarantee and this Indenture;

 

(ii)                                  immediately
before and immediately after giving effect to such transaction, no Event of
Default, and no event or condition which, after notice or lapse of time or both, would become an
Event of Default, shall have occurred and be continuing; and

 

54

 

(iii)                               the Guarantor has delivered to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that such
consolidation, merger or transfer and such supplemental indenture comply with
this Section 12.3 and that all conditions precedent herein provided for
relating to such transaction have been complied with;

 

(b)                                 the Guarantor liquidates (other than
pursuant to any Bankruptcy Law) and complies, if applicable, with the
provisions of this Indenture; provided that if a Person and its
Affiliates, if any, shall acquire all or substantially all of the assets of the
Guarantor upon such liquidation the Guarantor shall liquidate only if:

 

(i)                                     the Person and each such Affiliate
(or the common corporate parent of such Person and its Affiliates, if such
Person and its Affiliates are wholly owned by such parent) which acquire or
will acquire all or a portion of the assets of the Guarantor shall expressly
assume, by an indenture supplemental hereto, executed and delivered to the
Trustee, in form satisfactory to the Trustee, all the obligations of the
Guarantor, under the Guarantee and this Indenture and such Person or any of
such Affiliates (or such parent) shall be a corporation organized and existing
under the laws of the United States or any State thereof or the District of
Columbia;

 

(ii)                                  immediately after giving effect to
such transaction, no Event of Default, and no event or condition which, after
notice or lapse of time or both, would become an Event of Default, shall have
occurred and be continuing; and

 

(iii)                               the Guarantor has delivered to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
such liquidation and such supplemental indenture comply with this Section 12.3
and that all conditions precedent herein provided for relating to such
transaction have been complied with; or

 

(c)                                  the Company ceases for any reason to
be a “wholly owned subsidiary” of the Guarantor (as such term is defined in Rule 1-02(z)
of the Regulation S-X promulgated by the SEC).

 

Upon any assumption of the Guarantee by any Person
pursuant to this Section 12.3, such Person may exercise every right and
power of the Guarantor under this Indenture with the same effect as if such
successor corporation had been named as the Guarantor herein, and all the
obligations of the Guarantor, hereunder and under the Guarantee and the
Indenture shall terminate.

 

55

 

Section 12.4                                When Guarantor May Merge, etc. 

 

Other than the proposed merger with Caesars
Entertainment, Inc., the Guarantor shall not consolidate with or merge
with or into any other Person or, directly or indirectly, sell, lease or convey
all or substantially all of its assets (computed on a consolidated basis) to
another Person, and may not permit any Person to, directly or indirectly, sell,
lease or convey all or substantially all of its assets to the Guarantor,
whether in a single transaction or a series of related transactions, unless:

 

(a)                                  either the Guarantor shall be the
continuing person, or the Person (if other than the Guarantor) formed by such
consolidation or into or with which the Guarantor is merged or to which the
assets of the Guarantor are transferred shall be a corporation organized and
validly existing under the laws of the United States or any State thereof or
the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form
satisfactory to the Trustee, all the obligations of the Guarantor under the
Guarantee and this Indenture;

 

(b)                                 immediately after giving effect to
such transaction, no Event of Default, and no event or condition which, after
notice or lapse of time or both, would become an Event of Default, shall have
occurred and be continuing; and

 

(c)                                  the Guarantor has delivered to the
Trustee an Officer’s Certificate and an Opinion of Counsel, each stating that
such consolidation, merger, sale, conveyance or lease and such supplemental
indenture comply with this Section 12.4 and that all conditions precedent
herein provided for relating to such transaction have been complied with.

 

Upon
any consolidation or merger, or any sale, conveyance or lease of all or
substantially all of the assets of the Guarantor, in accordance with this Section 12.4,
the successor corporation formed by such consolidation or into or with which
the Guarantor is merged or to which such transfer is made shall succeed to, and
be substituted for, and may exercise every right and power of, the Guarantor
under this Indenture with the same effect as if such successor corporation had
been named as the Guarantor herein, and all the obligations of the predecessor
Guarantor hereunder and under the Guarantee and the Indenture shall terminate.

 

56

 

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

 

	
   

  	
  HARRAH’S
  OPERATING COMPANY, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen H.
  Brammell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stephen H.
  Brammell

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President, General

  
	
   

  	
   

  	
   

  	
  Counsel and
  Corporate Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HARRAH’S
  ENTERTAINMENT, INC.

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen H.
  Brammell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stephen H.
  Brammell

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President, General

  
	
   

  	
   

  	
   

  	
  Counsel and
  Corporate Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  U.S. BANK
  NATIONAL ASSOCIATION

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard H.
  Prokosch

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Richard H.
  Prokosch

  
	
   

  	
   

  	
  Title:

  	
  Vice President

  
					

 

57

 

EXHIBIT A

 

FORM OF
NOTE

 

[Insert Global Notes Legend, if applicable to the
provisions of the Indenture]

 

[Insert Private Placement Legend, if applicable
pursuant to the provisions of the Indenture]

 

No.:          

 

	
  CUSIP No.:

  	
   

  	
  Principal
  Amount:

  	
   

  	
  $                         

  	
   

  

 

 

HARRAH’S OPERATING
COMPANY, INC.

 

5.625% Senior Notes due
2015

Payment of principal, interest and premium, if any, unconditionally guaranteed
by

 

HARRAH’S ENTERTAINMENT,
INC.

 

Harrah’s Operating Company, Inc., a Delaware
corporation (hereinafter called the “Company”, which term includes any
successor under the Indenture referred to below), for value received, hereby
promises to pay to Cede & Co., or registered assigns, the principal
sum of                                 
DOLLARS ($                                )
on June 1, 2015 (“Maturity”), and to pay interest thereon from May 27,
2005 or from the most recent date to which interest has been paid or duly
provided for, semi-annually on June 1 and December 1 of each year
(each, an “Interest Payment Date”), commencing December 1, 2005 and
at Maturity, at the rate of 5.625% per annum, until the principal hereof is
paid or duly made available for payment. 
Interest on this Note shall be calculated on the basis of a 360-day
year consisting of twelve 30-day months. 
The interest so payable and punctually paid or duly provided for on any
Interest Payment Date will, as provided in such Indenture, be paid to the
Person in whose name this Note is registered at the close of business on the
Regular Record Date for such interest, which shall be the May 15 or November 15
(whether or not a Business Day), as the case may be, immediately preceding such
Interest Payment Date.  If the Company
defaults in a payment of interest on the Notes, it shall pay the defaulted
interest plus, to the extent permitted by law, any interest payable on the
defaulted interest, to the Persons who are the registered Holders of the Notes
on a subsequent special record date.  The
Company shall fix the record date and the payment date.  At least 30 days before the record date, the
Company shall mail to the Trustee and to each Holder a notice that states the
record date, the payment date and the amount of interest to be paid.  The Company may pay defaulted interest in any
other lawful manner.

 

If any Interest Payment Date, Redemption Date or
Maturity Date of any of the Notes is not a Business Day, then payment of
principal and interest will be made on the next succeeding Business Day.  No interest will accrue on the amount so
payable for the period from such Interest Payment Date, Redemption Date or
Maturity Date, as the case may be, to the date payment is made.

 

A-1

 

Under certain circumstances the Company may be
required to pay Additional Interest as provided in the Indenture.

 

Payment of the principal of and the interest on this
Note will be made at the office or agency of the Company maintained for that
purpose in the Borough of Manhattan, The City of New York, in such coin or
currency of the United States of America as at the time of payment is legal
tender for payment of public and private debts; provided, however,
that, at the option of the Company, interest may be paid by check mailed to the
address of the Person entitled thereto as such address shall appear in the
register or by wire transfer to an account maintained by the payee located in
the United States of America.

 

This Note is one of a duly authorized issue of Notes
of the Company (herein called the “Notes”) issued and to be issued under
an Indenture dated as of May 27, 2005 (herein called, together with all
indentures supplemental thereto, the “Indenture”) among, the Company,
Harrah’s Entertainment, Inc. and U.S. Bank National Association, as
trustee (herein called the “Trustee”, which term includes any successor
trustee under the Indenture), to which the Indenture and all indentures
supplemental thereto reference is hereby made for a statement of the respective
rights, limitations of rights, duties and immunities thereunder of the Company,
the Trustee and the Holders of the Notes, and the terms upon which the Notes
are, and are to be, authenticated and delivered.  This Note is one of the Notes of the series
designated on the face hereof, limited in aggregate principal amount to
$750,000,000, subject to the Company’s ability to issue additional notes as
provided in the Indenture.

 

The Notes are senior obligations of the Company.  The Indenture imposes certain limitations on
the ability of the Company to, among other things, create or incur liens and
make certain sale-leaseback transactions. 
The Indenture also imposes limitations on the ability of the Company to
consolidate or merge with or into any other Person or convey, transfer or lease
substantially all of the property of the Company.

 

The Notes are subject to redemption prior to the
Maturity Date of the principal thereof as provided in the Indenture.

 

If an Event of Default with respect to the Notes shall
occur and be continuing, the principal of the Notes may be declared due and
payable in the manner and with the effect provided in the Indenture.

 

The Indenture permits, with certain exceptions as
therein provided, the amendment thereof and the modification of the rights and
obligations of the Company and the rights of the Holders of the Notes issued
under the Indenture at any time by the Company and the Trustee with the consent
of the Holders of not less than a majority in aggregate principal amount of the
Notes at the time outstanding of each series affected thereby.  The Indenture also contains provisions
permitting the Holders of specified percentages in aggregate principal amount
of the Notes at the time outstanding, on behalf of the Holders of all Notes, to
waive compliance by the Company with certain provisions of the Indenture and
certain past defaults under the Indenture and their consequences.  Any such consent or waiver by the holder of
this Note shall be conclusive and binding upon such Holder and upon all future Holders
of this Note and of any

 

A-2

 

Notes issued upon the registration of transfer hereof
or in exchange herefor or in lieu hereof, whether or not notation of such
consent or waiver is made upon this Note.

 

No reference herein to the Indenture and no provision
of this Note or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and
interest on this Note, at the time, place and rate, and in the coin or
currency, herein and in the Indenture prescribed.

 

As provided in the Indenture and subject to certain
limitations set forth therein, the transfer of this Note may be registered on
the register upon surrender of this Note for registration of transfer at the
office or agency of the Company maintained for the purpose in any place where
the principal of and interest on this Note are payable, duly endorsed, or
accompanied by a written instrument of transfer in form satisfactory to the Company
and the Registrar duly executed by the Holder hereof or by his attorney duly
authorized in writing, and thereupon one or more new Notes, of authorized
denominations and for the same aggregate principal amount, will be issued to
the designated transferee or transferees. 
The Notes are issuable only in registered form without coupons in the
denominations of $2,000 and integral multiples of $2,000.  As provided in the Indenture and subject to
certain limitations set forth therein, the Notes are exchangeable for a like
aggregate principal amount of Notes of authorized denominations as requested by
the Holders surrendering the same.

 

No service charge shall be made for any such
registration of transfer or exchange, but the Company may require payment of a
sum sufficient to cover any transfer tax or similar governmental charge payable
in connection therewith, other than in certain cases provided in the Indenture.

 

Prior to due presentment of this Note for registration
of transfer, the Company, the Trustee and any agent of the Company or the
Trustee may treat the Person in whose name this Note is registered as the owner
hereof for all purposes, whether or not this Note be overdue, and neither the
Company, the Trustee nor any such agent shall be affected by notice to the
contrary.

 

The indenture contains provisions whereby (i) the
Company may be discharged from its obligations with respect to the Notes
(subject to certain exceptions) or (ii) the Company may be released from
its obligations under specified covenants and agreements in the Indenture, in
each case if the Company irrevocably deposits with the Trustee money or U.S.
Government Obligations sufficient to pay and discharge the entire indebtedness
on all Notes, and satisfies certain other conditions, all as more fully
provided in the Indenture.

 

This Note shall be governed by the
law of the State of New York without regard to the conflict of law principles
that would result in the application of any law other than the law of the State
of New York.

 

Capitalized terms used in this Note which are not
defined herein shall have the meanings assigned to them in the Indenture.

 

A-3

 

Unless the certificate of authentication hereon has
been executed by or on behalf of the Trustee under the Indenture by the manual
signature of one of its authorized signatories, this Note shall not be entitled
to any benefits under the Indenture or be valid or obligatory for any purpose.

 

[REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK]

 

A-4

 

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

 

	
  Dated:

  	
   

  
	
   

  	
   

  
	
   

  	
  HARRAH’S
  OPERATING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

This is one of the Notes of the series designated

therein referred to in the within-mentioned Indenture.

 

	
  U.S. BANK NATIONAL ASSOCIATION, as Trustee

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Authorized Signatory

  	
   

  

 

A-5

 

ASSIGNMENT FORM

 

FOR, VALUE RECEIVED, the undersigned registered holder
hereby sell(s), assign(s) and transfer(s) unto

 

PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING
NUMBER OF ASSIGNEE

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

 

PLEASE PRINT OR TYPEWRITE
NAME AND ADDRESS OF ASSIGNEE

 

	
   

  	
   

  

 

the within Note and all rights thereunder, hereby
irrevocably constituting and appointing

 

                                                                                                                                           Attorney
to transfer said Note on the books of the Company with full power of
substitution in the premises.

 

	
  Dated:

  	
   

  	
   

  

 

Notice: The
signature to this assignment must correspond with the name as it appears upon
the face of the Note in every particular, without alteration or enlargement or
any change whatever.

 

	
   

  	
   

  	
   

  
	
  Signature must be guaranteed by a participant in a
  recognized signature guaranty medallion program or other signature guarantor
  acceptable to the Trustee

  	
   

  	
  Signature
  of Signature Guarantor

  

 

A-6 

 

ABBREVIATIONS

 

The following abbreviations, when used in the
inscription on the face of this instrument, shall be construed as though they
were written out in full according to applicable laws or regulations:

 

	
  TEN COM—as
  tenants in common UNIF GIFT MIN ACT—

  	
   

  	
  Custodian

  	
   

  

 

	
  TEN ENT—as
  tenants by the entireties

  	
  (Cust)

  	
  (Minor)

  	
   

  

 

	
  JT TEN—as joint
  tenants with right of

  	
   

  	
  Under Uniform
  Gifts to Minors

  	
   

  
	
  survivorship and not as

  	
   

  	
  Act 

  	
   

  	
   

  
	
  tenants in common

  	
   

  	
  (State)

  	
   

  
					

 

Additional
abbreviations may also be used though not in the above list.

 

A-7 

 

SCHEDULE OF
EXCHANGES OF INTERESTS IN THE GLOBAL NOTE

 

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

 

	
  Date of Exchange

  	
   

  	
  Amount of decrease in

  Principal Amount of

  this Global Note

  	
   

  	
  Amount of increase in

  Principal Amount of

  this Global Note

  	
   

  	
  Principal Amount

  of this Global Note

  following such

  decrease (or increase)

  	
   

  	
  Signature of authorized

  officer of Trustee or

  Custodian

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

A-8 

 

EXHIBIT B

 

FORM OF
NOTATION OF GUARANTEE

 

NOTATION OF
GUARANTEE OF HARRAH’S ENTERTAINMENT, INC.

 

For value received, the undersigned, Harrah’s
Entertainment, Inc. (the “Guarantor”)(which term includes any
successor person under the Indenture), has unconditionally guaranteed, to the
extent set forth in the Indenture and subject to the provisions in the
Indenture, dated as of May 27, 2005 (the “Indenture”), among Harrah’s Operating Company, Inc.
(the “Company”), the Guarantor and U.S. Bank National Association, as
trustee (the “Trustee”), (a) the due and punctual payment of the
principal of, premium, if any, and interest on, the Notes, whether at maturity,
by acceleration, redemption or otherwise, the due and punctual payment of
interest on overdue principal of and interest on the Notes, if any, if lawful,
and the due and punctual performance of all other obligations of the Company to
the Holders or the Trustee all in accordance with the terms of the Indenture
and (b) in case of any extension of time of payment or renewal of any
Notes or any of such other obligations, that the same will be promptly paid in
full when due or performed in accordance with the terms of the extension or
renewal, whether at stated maturity, by acceleration or otherwise. The
obligations of the Guarantor to the Holders of Notes and to the Trustee
pursuant to the Guarantee and the Indenture are expressly set forth in Article 12
of the Indenture and reference is hereby made to the Indenture for the precise
terms of the Guarantee. Each Holder of a Note, by accepting the same, (a) agrees
to and shall be bound by such provisions, (b) authorizes and directs the
Trustee, on behalf of such Holder, to take such action as may be necessary or
appropriate to effectuate the subordination as provided in the Indenture and (c) appoints
the Trustee attorney-in-fact of such Holder for such purpose; provided, however, that the Indebtedness evidenced by this
Note Guarantee shall cease to be so subordinated and subject in right of
payment upon any defeasance of this Note in accordance with the provisions of
the Indenture.

 

Capitalized terms used but not defined herein have the
meanings given to them in the Indenture.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

B-1

 

IN
WITNESS WHEREOF, the undersigned has caused this notation of Guarantee to be
duly executed.

 

Date:

 

 

	
   

  	
  HARRAH’S
  ENTERTAINMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
				

 

B-2

 

EXHIBIT C

 

FORM OF CERTIFICATE FOR TRANSFER PURSUANT TO RULE
144A

 

[Date]

 

U.S. Bank National Association

60 Livingston Avenue

St. Paul, Minnesota 55107

 

 

Re:                               5.625%
Senior Notes due 2015

 

Ladies and Gentlemen:

 

Reference is hereby made to the Indenture, dated as of
May 27, 2005 (as amended and supplemented from time to time, the “Indenture”),
among Harrah’s Operating Company, Inc. (the “Company”), Harrah’s
Entertainment, Inc. (the “Guarantor”) and U.S. Bank National Association
as trustee (the “Trustee”). Capitalized terms used but not defined herein shall
have the meanings given them in the Indenture.

 

This letter relates to $                      
aggregate principal amount of Notes, which represents an interest in a
Regulation S Global Note beneficially owned by the undersigned (the “Transferor”),
to effect the transfer of such Notes in exchange for an equivalent beneficial
interest in the Rule 144A Global Note.

 

In connection with such request, and with respect to
such Notes, the Transferor does hereby certify that such Notes are being
transferred in accordance with Rule 144A, to a transferee that the
Transferor reasonably believes is purchasing the Notes for its own account or
an account with respect to which the transferee exercises sole investment
discretion, and the transferee, as well as any such account, is a “qualified institutional
buyer” within the meaning of Rule 144A, in a transaction meeting the
requirements of Rule 144A and in accordance with applicable securities
laws of any state of the United States or any other jurisdiction.

 

C-1

 

You, the Company
and the Guarantor are entitled to rely upon this letter and are
irrevocably authorized to produce this letter or a copy hereof to any
interested party in any administrative or legal proceedings or official inquiry
with respect to the matters covered hereby.

 

	
  Very truly yours,

  
	
   

  
	
  [Name of Transferor]

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
   

  	
   

  
	
  Authorized Signature

  	
   

  

 

C-2

 

EXHIBIT D

 

FORM OF CERTIFICATE FOR TRANSFER PURSUANT TO
REGULATION S

 

[Date]

 

U.S. Bank National
Association

60 Livingston Avenue

St. Paul, Minnesota 55107

 

Re:                               5.625%
Senior Notes due 2015

 

Ladies and Gentlemen:

 

Reference is hereby made to the Indenture, dated as of
May 27, 2005 (as amended and supplemented from time to time, the “Indenture”),
among Harrah’s Operating Company, Inc. (the “Company”), Harrah’s Entertainment, Inc. (the “Guarantor”) and
U.S. Bank National Association, as trustee (the “Trustee”). Capitalized terms
used but not defined herein shall have the meanings given them in the
Indenture.

 

In connection with our proposed sale of $                      aggregate
principal amount of Notes, which represents an interest in the Rule 144A
Global Note beneficially owned by the undersigned (the “Transferor”), we
confirm that such sale has been effected pursuant to and in accordance with
Regulation S, and, accordingly, we represent that:

 

(a) the offer of such Notes was not made to a
person in the United States;

 

(b) either (i) at the time the buy order was
originated, the transferee was outside the United States or we and any person
acting on our behalf reasonably believed that the transferee was outside the
United States or (ii) the transaction was executed in, on or through the
facilities of a designated off-shore securities market and neither we nor any
person acting on our behalf knows that the transaction has been pre-arranged
with a buyer in the United States;

 

(c) no directed selling efforts have been made in
the United States in contravention of the requirements of Rule 903(b) or
Rule 904(b) of Regulation S, as applicable;

 

(d) the transaction is not part of a plan or
scheme to evade the registration requirements of the Securities Act; and

 

(e) we are the beneficial owner of the principal
amount of such Notes being transferred.

 

D-2

 

In addition, if the sale is made during the Restricted
Period and the provisions of Rule 904(b)(1) or Rule 904(b)(2) of
Regulation S are applicable thereto, we confirm that such sale has been made
in accordance with the applicable provisions of Rule 904(b)(1) or Rule 904(b)(2),
as the case may be.

 

You, the Company
and the Guarantor are entitled to rely upon this letter and are irrevocably
authorized to produce this letter or a copy hereof to any interested party in
any administrative or legal proceedings or official inquiry with respect to the
matters covered hereby. Terms used in this letter have the meanings set forth
in Regulation S.

 

	
  Very truly yours,

  	
   

  
	
   

  	
   

  
	
  [Name of Transferor]

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signature

  	
   

  
			

 

D-2Exhibit 4.2

 

EXECUTION COPY

 

HARRAH’S OPERATING COMPANY, INC.

 

$750,000,000

 

5.625% Senior Notes due 2015

 

REGISTRATION RIGHTS AGREEMENT

 

New York, New York

May 27, 2005

Citigroup Global Markets
Inc.

Greenwich Capital
Markets, Inc.

As
Representatives of the Initial Purchasers

c/o Citigroup Global
Markets Inc.

388 Greenwich Street,
37th Floor

New York, New York  10013

 

Ladies and Gentlemen:

 

Harrah’s Operating Company, Inc., a corporation
organized under the laws of Delaware (the “Company”), proposes to issue
and sell to certain purchasers (the “Initial Purchasers”), upon the
terms set forth in a purchase agreement dated as of May 19, 2005 (the “Purchase
Agreement”), its 5.625% Senior Notes due 2015 (the “Notes”) relating
to the initial placement of the Notes (the “Initial Placement”), which
Notes are to be guaranteed by Harrah’s Entertainment, Inc., a corporation
organized under the laws of Delaware (the “Guarantor”).  The Notes are to be issued under an indenture
(the “Indenture”) to be dated as of May 27, 2005, between the
Company, the Guarantor and U.S. Bank National Association, as trustee (the “Trustee”).  To induce the Initial Purchasers to enter
into the Purchase Agreement and to satisfy a condition of your obligations
thereunder, the Company and the Guarantor agree with you for your benefit and
the benefit of the holders from time to time of the Notes (including the
Initial Purchasers) (each a “Holder” and, together, the “Holders”),
as follows:

 

1.                                       Definitions.  Capitalized terms used herein without definition
shall have their respective meanings set forth in the Purchase Agreement.  As used in this Agreement, the following
capitalized defined terms shall have the following meanings:

 

“Additional Interest” shall have the meaning
set forth in Section 5 hereto.

 

“Affiliate” of any specified Person shall mean
any other Person that, directly or indirectly, is in control of, is controlled
by, or is under common control with, such specified Person.  For purposes of this definition, control of a
Person shall mean the power, direct or indirect, to direct or cause the
direction of the management and policies of such Person whether by contract or
otherwise; and the terms “controlling” and “controlled” shall
have meanings correlative to the foregoing.

 

“Broker-Dealer” shall mean any broker or dealer
registered as such under the Exchange Act.

 

 

“Business Day” shall mean any day other than a
Saturday, a Sunday or a legal holiday or a day on which banking institutions or
trust companies are authorized or obligated by law to close in New York City.

 

“Commission” shall mean the Securities and
Exchange Commission.

 

“Company” shall have the meaning set forth in
the preamble hereto.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the
Commission promulgated thereunder.

 

“Exchange Offer Registration Period” shall mean
the 180-day period following the consummation of the Registered Exchange
Offer, exclusive of any period during which any stop order shall be in effect suspending
the effectiveness of the Exchange Offer Registration Statement.

 

“Exchange Offer Registration Statement” shall
mean a registration
statement of the Company on an appropriate form under the Securities Act with
respect to the Registered Exchange Offer, all amendments and supplements to
such registration statement, including post-effective amendments
thereto, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

 

“Exchanging Dealer” shall
mean any Holder
(which may include the Initial Purchaser) that is a Broker-Dealer and elects to
exchange for New Notes any Notes that it acquired for its own account as a result of
market-making activities or other trading activities (but not directly from the
Company or any Affiliate of the Company) for New Notes.

 

“Expiration Date” shall have the meaning set
forth in Section 2(c)(ii) hereof.

 

“Guarantor” shall have the meaning set forth in
the preamble hereto.

 

“Holder” shall have the meaning set forth in the preamble
hereto.

 

“Indenture” shall
have the meaning set forth in the preamble hereto.

 

“Initial Placement” shall
have the meaning set forth in the preamble hereto.

 

“Initial Purchaser” shall have the meaning set
forth in the preamble hereto.

 

“Losses” shall have the meaning set forth in Section 7(d) hereof.

 

“Majority Holders” shall
mean the Holders of a
majority of the aggregate principal amount of Notes registered under a
Registration Statement.

 

“Managing Underwriters” shall
mean the investment
banker or investment bankers and manager or managers that shall administer an
underwritten offering.

 

“New Notes” shall mean debt securities of the Company,
guaranteed by the Guarantor, identical in all material respects to the Notes (except that the
cash interest and interest

 

2

 

rate
step-up provisions and the transfer restrictions shall be modified or eliminated, as appropriate) and
to be issued under the Indenture or the New Notes Indenture.

 

“New Notes Indenture” shall
mean an indenture
between the Company and the New Notes Trustee, identical in all material
respects to the Indenture (except that the cash interest and interest rate
step-up provisions and the transfer restrictions shall be modified or eliminated, as appropriate).

 

“New Notes Trustee” shall
mean a bank or trust
company reasonably satisfactory to the Initial Purchasers, as trustee with respect to the New Notes
under the New Notes Indenture.

 

“Notes” shall have the meaning set forth in the preamble hereto.

 

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

 

“Person” shall mean any individual,
partnership, corporation, trust, or unincorporated organization, or a
government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in any
Registration Statement (including, without limitation, a prospectus that
discloses information previously omitted from a prospectus filed as part of an
effective registration statement in reliance upon Rule 430A under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Notes or the New
Notes covered by such Registration Statement, and all amendments and
supplements thereto and all material incorporated by
reference therein.

 

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

 

“Registered Exchange Offer” shall
mean the proposed
offer of the Company to issue and deliver to the Holders of the Notes
that are not prohibited by any law or policy of the Commission from
participating in such offer, in exchange for the Notes, a like aggregate principal amount of the New Notes.

 

“Registration Default” shall have the meaning
set forth in Section 5(a) hereof.

 

“Registration Statement” shall
mean any Exchange
Offer Registration Statement or Shelf Registration Statement that covers any of
the Notes or the New Notes pursuant to the provisions of this Agreement, any
amendments and
supplements to such registration statement, including post-effective amendments
(in each case including the Prospectus contained therein), all exhibits thereto and all material
incorporated by reference therein.

 

“Securities Act” shall mean the Securities Act
of 1933, as amended, and the rules and regulations of the Commission
promulgated thereunder.

 

“Shelf Registration” shall
mean a registration
effected pursuant to Section 3 hereof.

 

3

 

“Shelf Registration Period” has the
meaning set forth in Section 3(b)(ii) hereof.

 

“Shelf Registration Statement” shall
mean a “shelf”
registration statement of the Company pursuant to the provisions of Section 3
hereof which covers some or all of the Notes or New Notes, as applicable, on an
appropriate form under Rule 415 under the Securities Act, or any similar rule that
may be adopted by the Commission, amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

 

“Trust Indenture Act” shall mean the Trust
Indenture Act of 1939, as amended and as in effect on the date of the
Indenture.

 

“Trustee” shall mean the trustee with respect to the Notes
under the Indenture.

 

“underwriter” shall
mean any underwriter
of Notes in connection with an offering thereof under a Shelf Registration
Statement.

 

2.                                       Registered Exchange
Offer.  (a)  Unless the Registered
Exchange Offer shall not be permissible under applicable law or Commission
policy, the Company and
the Guarantor shall prepare and,
not later than 90 days following the date of the original
issuance of the Notes (or if such 90th day is not a Business Day, the next
succeeding Business Day), shall file with the Commission the Exchange Offer Registration Statement with respect to
the Registered Exchange Offer.  The
Company shall use its best efforts to cause the Exchange Offer Registration Statement to
become effective under the Securities Act within 180 days of the date
of the original issuance of the Notes (or if such 180th day is not a Business
Day, the next succeeding Business Day).

 

(b)                                 Upon the effectiveness of the Exchange Offer
Registration Statement, the Company and the Guarantor shall promptly commence the Registered Exchange
Offer, it being the objective of such Registered Exchange Offer to enable each
Holder electing to exchange Notes for New Notes (assuming that such Holder is
not an Affiliate of the Company, acquires the New Notes in the ordinary
course of such Holder’s
business, has no arrangements with any Person to participate in the
distribution of the New Notes and is not prohibited by any
law or policy of the Commission from participating in the Registered Exchange Offer) to trade such New Notes from and after their
receipt without any limitations or restrictions under the Securities Act and
without material restrictions under the securities laws of a substantial
proportion of the several states of the United States.

 

(c)                                  In connection with the Registered Exchange
Offer, the Company and the Guarantor shall:

 

(i)                                     mail to each Holder a copy of the Prospectus
forming part of the Exchange Offer Registration Statement, together with an
appropriate letter of transmittal and related documents;

 

(ii)                                  keep the Registered Exchange Offer open for not
less than 20 Business Days and not more than 30
Business Days after the date
notice thereof is mailed  to the Holders (or, in each case, longer if required by applicable law)
(the “Expiration Date”);

 

4

 

(iii)                               use their best efforts to keep the Exchange Offer
Registration Statement continuously effective under the
Securities Act, supplemented and amended as required, under the Securities Act to
ensure that it is available for sales of New Notes by Exchanging Dealers during
the Exchange Offer Registration Period;

 

(iv)                              utilize the services of a depositary for the
Registered Exchange Offer with an address in the Borough of Manhattan
in New York
City, which may be the Trustee, the New Notes Trustee or an Affiliate of either
of them;

 

(v)                                 permit
Holders to withdraw tendered Notes at any time prior to the close of business,
New York time, on the last Business Day on which the Registered Exchange Offer
is open;

 

(vi)                              prior
to effectiveness of the Exchange Offer Registration Statement, provide a
supplemental letter to the Commission (A) stating that the Company and the
Guarantor, are conducting the Registered Exchange Offer in reliance on the position
of the Commission in Exxon Capital Holdings Corporation (pub. avail. May 13,
1988), Morgan Stanley and Co., Inc. (pub. avail. June 5,
1991); and (B) including a representation that the Company and the
Guarantor have not entered into any arrangement or understanding with any
Person to distribute the New Notes to be received in the Registered Exchange
Offer and that, to the best of the Company’s and the Guarantor’s information
and belief, each Holder participating in the Registered Exchange Offer is acquiring
the New Notes in the ordinary course of business and has no arrangement or
understanding with any Person to participate in the distribution of the New
Notes; and

 

(vii)                           comply in all respects with all applicable
laws.

 

(d)                                 As soon as practicable after the close of the
Registered Exchange Offer, the Company and the Guarantor shall:

 

(i)                                     accept for exchange all Notes tendered and not
validly withdrawn pursuant to the Registered Exchange Offer;

 

(ii)                                  deliver to the Trustee for cancellation in
accordance with Section 4(s) all Notes so accepted for exchange; and

 

(iii)                               cause the New Notes Trustee promptly to
authenticate and deliver to each Holder of Notes a
principal amount of New Notes equal to the principal amount of the Notes of such Holder so accepted for exchange.

 

(e)                                  Each
Holder hereby acknowledges and agrees that any Broker-Dealer and any such
Holder using the Registered Exchange Offer to participate in a distribution of
the New Notes (x) could not under Commission policy as in effect on the date of
this Agreement rely on the position of the Commission in Morgan Stanley and
Co., Inc. (pub. avail. June 5, 1991) and

 

5

 

Exxon Capital
Holdings Corporation (pub. avail. May 13, 1988), as
interpreted in the Commission’s letter to Shearman & Sterling dated July 2,
1993 and similar no-action letters; and (y) must comply with the registration
and prospectus delivery requirements of the Securities Act in connection with
any secondary resale transaction and (z) that secondary resale transactions by
such Holder must be covered by an effective registration statement containing
the selling note holder information required by Item 507 or 508, as applicable,
of Regulation S-K under the Securities Act if the resales are of New Notes
obtained by such Holder in exchange for Notes acquired by such Holder directly
from the Company or one of its Affiliates. 
Accordingly, each Holder participating in the Registered Exchange Offer
shall be required to represent to the Company and the Guarantor that, at the
time of the consummation of the Registered Exchange Offer:

 

(i)                                     any
New Notes received by such Holder will be acquired in the ordinary course of
business;

 

(ii)                                  such
Holder will have no arrangement or understanding with any Person to participate
in the distribution of the Notes or the New Notes within the meaning of the
Securities Act; and

 

(iii)                               such
Holder is not an Affiliate of the Company.

 

(f)                                    If any Initial Purchaser determines that it is not eligible to
participate in the Registered Exchange Offer with respect to the exchange of
Notes constituting any portion of an unsold allotment, at the request of such
Initial Purchaser within 20 days after the consummation of
the Exchange Offer, the Company shall
issue and deliver to the Person purchasing Notes registered under a Shelf
Registration Statement as contemplated by Section 3 hereof from such
Initial Purchaser, in exchange for such Notes, a like principal amount of New
Notes.  The Company and
the Guarantor shall use
their best efforts to cause the CUSIP
Service Bureau to issue the same CUSIP number for such New Notes as for New
Notes issued pursuant to the Registered Exchange Offer.

 

3.                                       Shelf Registration.  (a) 
If (i) due
to any change in law or
applicable interpretations thereof by the Commission’s staff, the Company
determines upon advice of its outside counsel that it is not permitted to
effect the Registered Exchange Offer as contemplated by Section 2 hereof;
or (ii) for any other reason the Registered Exchange Offer is not
consummated within 210 days of the date hereof; or (iii) any Initial Purchaser so requests,
within 20 days after the consummation of the Registered Exchange Offer, with respect to Notes that
are not eligible to be exchanged for New Notes in the Registered Exchange Offer
and that are held by it following
consummation of the Registered Exchange Offer; or (iv) any Holder (other than an Initial
Purchaser) who notifies the Company within 20 days after
the consummation of the Registered Exchange Offer that it is not eligible to participate in the
Registered Exchange Offer so requests; or (v) in the case of any Initial
Purchaser participating in the Registered Exchange Offer, such Initial
Purchaser does not receive freely tradeable New Notes in exchange for Notes
constituting any portion of an unsold allotment (it being understood that
(x) the requirement
that an Initial Purchaser deliver a Prospectus containing the information
required by Item 507 or 508 of Regulation S-K under the Securities Act in
connection with sales of New Notes acquired in exchange 

 

6

 

for
such Notes shall not result in such New Notes being not “freely tradeable”;
and (y)
the requirement that
an Exchanging Dealer deliver a Prospectus in connection with sales of New Notes
acquired in the Registered Exchange Offer in exchange for Notes acquired as a
result of market-making activities or other trading activities shall not result
in such New Notes being not “freely tradeable”), the Company
and the Guarantor shall effect a Shelf Registration Statement in accordance
with subsection (b) below.

 

(b)                                 (i)                                     The Company and the
Guarantor shall as promptly as
practicable (but in no event more than 30 days after so required or requested
pursuant to this Section 3), file with the Commission and thereafter shall
use its best efforts to cause to be declared effective under the Securities Act
a Shelf Registration Statement relating to the offer and sale of the Notes or
the New Notes, as applicable, by the Holders thereof from time to time in accordance with the
methods of distribution elected by such Holders and set forth in such Shelf
Registration Statement; provided, however, that no Holder (other than
an Initial Purchaser) shall be entitled to have the Notes held by it covered by
such Shelf Registration Statement unless such Holder agrees in writing to be
bound by all of the provisions of this Agreement applicable to such Holder; and
provided  further, that with respect to New Notes received by an Initial Purchaser in
exchange for Notes constituting any portion of an unsold allotment, the Company
and the Guarantor may, if permitted by current interpretations by the Commission’s
staff, file a post-effective amendment to the Exchange Offer Registration
Statement containing the information required by Item 507 or 508
of Regulation S-K, as applicable, in
satisfaction of its obligations under this subsection with respect
thereto, and any such Exchange Offer Registration Statement, as so amended,
shall be referred to herein as, and governed by the provisions herein
applicable to, a Shelf Registration Statement.

 

(ii)                                  The Company and the
Guarantor shall use their best efforts to keep the Shelf Registration
Statement continuously effective, supplemented and amended
as required by the Securities Act, in order to permit the Prospectus forming part thereof to be usable
by Holders for a period of two years from the date the Shelf Registration
Statement is declared effective by the Commission or such shorter period that
will terminate when all the Notes or New Notes, as applicable, covered by the
Shelf Registration Statement have been sold pursuant to the Shelf Registration
Statement (in any such case, such period being called the “Shelf
Registration Period”).  The Company and
the Guarantor shall be deemed not
to have used their best efforts to keep the Shelf Registration Statement effective
during the requisite period if it voluntarily takes any action that would
result in Holders of Notes covered thereby not being able to offer and sell
such Notes during that period, unless (A) such action is required by
applicable law; or (B) such action is taken by the Company and
the Guarantor in good faith and
for valid business reasons (not including avoidance of the Company’s and
the Guarantor’s obligations
hereunder), including the acquisition or divestiture of assets, so long as the
Company and the Guarantor promptly thereafter comply with the requirements of Section 4(k)
hereof, if applicable.

 

(iii)                               The
Company shall cause the Shelf Registration Statement and the related Prospectus
and any amendment or supplement thereto, as of the effective date of the Shelf
Registration Statement or such amendment or supplement, (A) to comply in
all material respects with the applicable requirements of the Securities Act
and the rules and regulations of the Commission; and (B) not to
contain any untrue statement of a material

 

7

 

fact or omit to state a
material fact required to be stated therein or necessary in order to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

 

4.                                       Additional
Registration
Procedures.  In connection with any Shelf
Registration Statement and, to the extent applicable, any Exchange Offer
Registration Statement, the following provisions shall apply.

 

(a)                                  The Company and the
Guarantor shall:

 

(i)                                     furnish to you, not less
than five Business Days prior to the filing thereof with the Commission, a copy of any
Exchange Offer Registration Statement and any Shelf Registration Statement, and each
amendment thereof and each amendment or supplement, if any, to the Prospectus
included therein (including all documents incorporated by
reference therein after the initial filing) and shall use their best efforts to reflect in each such document,
when so filed with the Commission, such comments as you reasonably propose;

 

(ii)                                  include the information set forth in Annex A
hereto on the facing page of the Exchange Offer Registration Statement,
in Annex B hereto in the forepart of the Exchange Offer Registration Statement
in a section setting forth details of the Exchange Offer,
in Annex C hereto in
the underwriting or plan of distribution section of the Prospectus contained
in the Exchange Offer
Registration Statement, and in Annex D hereto in the letter of transmittal
delivered pursuant to the Registered Exchange Offer;

 

(iii)                               if requested by an Initial Purchaser, include
the information required by Item 507 or 508 of Regulation S-K, as applicable,
in the Prospectus contained in the Exchange Offer Registration Statement; and

 

(iv)                              in
the case of a Shelf Registration Statement, include the names of the Holders
that propose to sell Notes pursuant to the Shelf Registration Statement as
selling Note holders.

 

(b)                                 The Company and the
Guarantor shall ensure that:

 

(i)                                     any Registration Statement and any amendment
thereto and any Prospectus forming part thereof and any amendment or supplement
thereto complies in all material respects with the Securities Act and the rules and
regulations thereunder; and

 

(ii)                                  any Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

 

(c)                                  The Company and the
Guarantor shall advise you,
the Holders of Notes covered by any Shelf Registration Statement
and any Exchanging
Dealer under any Exchange Offer Registration Statement
that has provided in
writing to the Company or the Guarantor a telephone or facsimile number and address
for notices, and, if requested by you or any such

 

8

 

Holder
or Exchanging Dealer, shall confirm such advice in writing
(which notice pursuant to clauses (ii)-(v) hereof shall be accompanied by
an instruction to suspend the use of the Prospectus until the Company and the
Guarantor shall have remedied the basis for such suspension):

 

(i)                                     when a Registration Statement and any amendment
thereto has been filed with the Commission and when the Registration Statement
or any post-effective amendment thereto has become effective;

 

(ii)                                  of any request by the Commission for any
amendment or
supplement to the Registration Statement or the Prospectus or for additional
information;

 

(iii)                               of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose;

 

(iv)                              of the receipt by the Company and
the Guarantor of any notification
with respect to the suspension of the qualification of the Notes included
therein for sale in any jurisdiction or the initiation of any proceeding for
such purpose; and

 

(v)                                 of the happening of any event that requires any
change in the Registration Statement or the Prospectus so that, as of such
date, the statements therein are not misleading and do not omit to state a
material fact required to be stated therein or necessary to make the statements
therein (in the case of the Prospectus, in the light of the circumstances under which they
were made) not misleading.

 

(d)                                 The Company and the
Guarantor shall use their best efforts to obtain the withdrawal of any
order suspending the effectiveness of any Registration Statement or
the qualification of the Notes therein for sale in any jurisdiction at the earliest possible time.

 

(e)                                  The Company and the
Guarantor shall furnish to
each Holder of Notes covered by any Shelf Registration Statement, without
charge, at least one copy of such Shelf Registration Statement and any
post-effective amendment thereto, including all material
incorporated therein by reference, and, if the Holder so requests in writing, all exhibits thereto
(including exhibits
incorporated by
reference therein).

 

(f)                                    The Company and the
Guarantor shall, during the
Shelf Registration Period, deliver to each Holder of Notes covered
by any Shelf
Registration Statement, without charge, as many copies of the Prospectus
(including each preliminary Prospectus) included in such Shelf Registration
Statement and any amendment or supplement thereto as such Holder may reasonably
request.  The Company and the
Guarantor consent,
subject to the provisions of this Agreement, to the use of the Prospectus or any amendment or supplement thereto
by each of the selling Holders of Notes in connection with the offering and
sale of the Notes covered by the Prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

 

9

 

(g)                                 The Company and the
Guarantor shall furnish to
each Exchanging Dealer which so requests, without charge, at least one copy of
the Exchange Offer Registration Statement and any post-effective amendment
thereto, including all material incorporated by reference
therein, and, if the
Exchanging Dealer so requests in writing, all exhibits thereto
(including exhibits
incorporated by reference therein).

 

(h)                                 The Company and the
Guarantor shall promptly
deliver to each Initial Purchaser, each Exchanging Dealer and each
other Person required to deliver a Prospectus during the Exchange Offer
Registration Period, without charge, as many copies of the Prospectus included in such
Exchange Offer Registration Statement and any amendment or supplement thereto
as any such Person may reasonably request.  The Company and the Guarantor, subject to the
provisions of this Agreement, consent to the use of the Prospectus or any amendment or supplement
thereto by any Initial Purchaser, any Exchanging  Dealer and any such other Person that may
be required to deliver a
Prospectus following the Registered Exchange Offer in connection with
the offering and sale of the New Notes covered by the Prospectus, or any
amendment or supplement thereto, included in the Exchange Offer Registration Statement.

 

(i)                                     Prior to the Registered Exchange Offer or any
other offering of Notes pursuant to any Registration Statement, the Company and
the Guarantor shall arrange, if
necessary, for the qualification of the Notes or the New Notes for sale under
the laws of such jurisdictions as any Holder  shall reasonably request and will
maintain such qualification in effect so long as required; provided that in no event shall the Company and the
Guarantor be obligated to qualify to do business in any jurisdiction
where it is not then so qualified or to take any action
that would subject it to
service of process in suits, other than those arising out
of the Initial Placement, the Registered Exchange Offer or any offering
pursuant to a Shelf Registration Statement, in any such jurisdiction where it is not then so subject.

 

(j)                                     The Company and the
Guarantor shall cooperate with
the Holders of Notes to facilitate the timely preparation and delivery of
certificates representing New Notes or Notes to be issued or sold pursuant to any Registration Statement
free of any restrictive legends and in such denominations and registered in
such names as Holders may request.

 

(k)                                  Upon the occurrence of any event contemplated
by subsections (c)(ii) through (v) above, the Company and the
Guarantor shall promptly
prepare a post-effective amendment to the applicable Registration Statement or
an amendment or supplement to the related Prospectus or file any other required
document so that, as thereafter delivered to Initial Purchasers of the Notes
included therein, the Prospectus will not include an untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. 
In such circumstances, the period of effectiveness of the Exchange Offer
Registration Statement provided for in Section 2 and the Shelf
Registration Statement provided for in Section 3(b) shall each be
extended by the number of days from and including the date of the giving of a
notice of suspension pursuant to Section 4(c) to and including the
date when the Initial Purchasers, the Holders of the Notes and any known
Exchanging Dealer shall have received such amended or supplemented Prospectus pursuant
to this Section.

 

10

 

(l)                                     Not later than the effective date of any
Registration Statement, the Company and the Guarantor shall provide a CUSIP number for the Notes or the
New Notes, as the
case may be, registered under such Registration Statement and provide the Trustee with printed certificates for such Notes
or New Notes, in a form eligible for deposit with The Depository Trust Company.

 

(m)                               The Company and the
Guarantor shall comply with
all applicable rules and regulations of the Commission and shall make
generally available to its Note holders as soon as practicable after the
effective date of the applicable Registration Statement an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act.

 

(n)                                 The Company and the
Guarantor shall cause the
Indenture or the New Notes Indenture, as the case may be, to be qualified under
the Trust Indenture Act in a timely manner.

 

(o)                                 The Company and the
Guarantor may require each
Holder of Notes to be sold pursuant to any Shelf Registration Statement to
furnish to the Company and the Guarantor such information regarding the Holder and the distribution of such Notes
or New Notes as the Company and
the Guarantor may from time to
time reasonably require for inclusion in such Registration Statement.
 The  Company and the Guarantor
may exclude from such Shelf Registration Statement the Notes of any Holder that
unreasonably fails to furnish such information within a reasonable time after
receiving such request.

 

(p)                                 In
the case of any Shelf Registration Statement, the Company and the
Guarantor shall enter into
such and take all other appropriate actions (including if
requested an underwriting agreement in customary form) in order to expedite or facilitate the
registration or the disposition of the Notes, and in connection therewith, if
an underwriting agreement is entered into, cause the same to contain
indemnification provisions and procedures no less favorable than those set
forth in Section 7 (or such other provisions and procedures acceptable to the Majority
Holders and the Managing Underwriters, if any, with respect to all parties to
be indemnified pursuant to Section 7).

 

(q)                                 In the case of any Shelf Registration
Statement, the Company and the Guarantor shall:

 

(i)                                     make reasonably available for inspection by the
Holders of Notes to be registered thereunder, any underwriter participating in
any disposition pursuant to such Registration Statement, and any attorney,
accountant or other agent retained by the Holders or any such underwriter, all relevant financial and other records,
pertinent corporate documents and properties of the Company,
the Guarantor and their respective
subsidiaries;

 

(ii)                                  cause the Company’s officers, directors and
employees to supply all relevant information reasonably requested by the
Holders or any such underwriter, attorney, accountant or agent in connection
with any such Registration Statement as is customary for similar due diligence
examinations; provided, however, that any information that is
designated in writing by the Company, in good faith, as confidential at

 

11

 

the time of delivery of such information shall
be kept confidential by the Holders or any such underwriter, attorney,
accountant or agent, unless such disclosure is made in connection with a court
proceeding or required by law, or such information becomes available to the
public generally or through a third party without an accompanying obligation of
confidentiality;  provided, further, that the
foregoing due diligence examination shall be coordinated on behalf of the
Initial Purchasers by Citigroup Global Markets Inc. and Greenwich Capital Markets,
Inc. and on behalf of other parties by one counsel designated by and on behalf
of such other parties;

 

(iii)                               if
requested by any Holder, make such representations and warranties to the Holders of Notes
registered thereunder and the underwriters, if any, in form, substance and
scope as are customarily made by issuers to underwriters in primary
underwritten offerings and covering matters including, but not limited to,
those set forth in the Purchase Agreement;

 

(iv)                              if
requested by any Holder, obtain opinions of counsel to the Company and
the Guarantor and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the Managing Underwriters, if any) addressed to each selling
Holder and the underwriters, if any, in form, substance and scope as are
customarily addressed to underwriters in primary underwritten offerings and
covering such other matters as may be reasonably requested by such Holders and
underwriters;

 

(v)                                 if
requested by any Holder, obtain “cold comfort” letters and updates thereof from the
independent certified public accountants of the Company (and, if necessary, any
other independent certified public accountants of any subsidiary of the Company
or of any business acquired by the Company for which financial statements and
financial data are, or are required to be, included in the Registration
Statement), addressed to each selling Holder of Notes registered thereunder and
the underwriters, if any, in customary form and covering matters of the type
customarily covered in “cold comfort” letters in connection with primary
underwritten offerings; and

 

(vi)                              deliver such documents and certificates as may
be reasonably requested by the Majority Holders and the Managing Underwriters,
if any, including those to evidence compliance with Section 4(k) and with
any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company.

 

The actions set forth in clauses (iii), (iv), (v) and
(vi) of this Section shall be performed at (A) the effectiveness
of such Registration Statement and each post-effective amendment thereto; and (B) each closing under any
underwriting or similar agreement as and to the extent required thereunder.

 

(r)                                    In the case of any Exchange Offer Registration
Statement, the Company and the Guarantor shall:

 

12

 

(i)                                     make reasonably available for inspection by any
Initial Purchaser, and any attorney, accountant or other agent retained by such
Initial Purchaser, all relevant financial and other records, pertinent
corporate documents and properties of the Company, the Guarantor, and their respective subsidiaries;

 

(ii)                                  cause the Company’s officers, directors and
employees to supply all relevant information reasonably requested by such
Initial Purchaser or any such attorney, accountant or agent in connection with
any such Registration Statement as is customary for similar due diligence
examinations; provided, however, that any information that is
designated in writing by the Company, in good faith, as confidential at the
time of delivery of such information shall be kept confidential by such Initial
Purchaser or any such attorney, accountant or agent, unless such disclosure is
made in connection with a court proceeding or required by law, or such
information becomes available to the public generally or through a third party
without an accompanying obligation of confidentiality;  provided,
further, that the foregoing due diligence examination shall be
coordinated on behalf of the Initial Purchasers by Citigroup Global Markets
Inc. and Greenwich Capital Markets, Inc. and on behalf of other parties by one
counsel designated by and on behalf of such other parties;

 

(iii)                               if
requested by an Initial Purchaser, make such representations and warranties to such Initial Purchaser,
in form, substance and scope as are customarily made by issuers to underwriters
in primary underwritten offerings and covering matters including, but not
limited to, those set forth in the Purchase Agreement;

 

(iv)                              if
requested by an Initial Purchaser, obtain opinions of counsel to the Company and
the Guarantor and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to such Initial Purchaser and its counsel, addressed to such
Initial Purchaser, in form, substance and scope, as are
customarily addressed to underwriters in primary underwritten offerings and covering such other matters as may be
reasonably requested by such Initial Purchaser or its counsel;

 

(v)                                 if
requested by an Initial Purchaser, obtain “cold comfort” letters and updates thereof from the
independent certified public accountants of the Company (and, if necessary, any
other independent certified public accountants of any subsidiary of the Company
or of any business acquired by the Company for which financial statements and
financial data are, or are required to be, included in the Registration
Statement), addressed to such Initial Purchaser, in customary form and covering
matters of the type customarily covered in “cold comfort” letters in connection
with primary underwritten offerings, or if requested by such Initial Purchaser
or its counsel in lieu of a “cold comfort” letter, an agreed-upon procedures
letter under Statement on Auditing Standards No. 35, covering matters
requested by such Initial Purchaser or its counsel; and

 

(vi)                              deliver such documents and certificates as may
be reasonably requested by such Initial Purchaser or its counsel, including
those to evidence compliance with Section 4(k) and with conditions
customarily contained in underwriting agreements.

 

13

 

The foregoing actions set forth in clauses (iii),
(iv), (v), and (vi) of this Section shall be performed at the close
of the Registered Exchange Offer and the effective date of any post-effective
amendment to the Exchange Offer Registration Statement.

 

(s)                                  If
a Registered Exchange Offer is to be consummated, upon delivery of the Notes by
Holders to the Company (or to such other Person as directed by the Company) in
exchange for the New Notes, the Company shall mark, or caused to be marked, on
the Notes so exchanged that such Notes are being canceled in exchange for the
New Notes.  In no event shall the Notes
be marked as paid or otherwise satisfied.

 

(t)                                    The
Company will use its best efforts (i) if the Notes have been rated prior
to the initial sale of such Notes by one or more nationally recognized
statistical rating agencies, to confirm that a rating (which need not be the
same rating from each such agency) will apply to the Notes or the New Notes, as
the case may be, covered by a Registration Statement; or (ii) if the Notes
were not previously rated, to cause the Notes covered by a Registration
Statement to be rated with at least one nationally recognized statistical
rating agency, if so requested by Majority Holders with respect to the related
Registration Statement or by any Managing Underwriters.

 

(u)                                 In
the case of any Shelf Registration Statement, if any Broker-Dealer shall
underwrite any Notes or participate as a member of an underwriting syndicate or
selling group or “assist in the distribution” (within the meaning of the Rules of
Fair Practice and the By-Laws of the National Association of Securities Dealers, Inc.)
thereof, whether as a Holder of such Notes or as an underwriter, a placement or
sales agent or a broker or dealer in respect thereof, or otherwise, assist such
Broker-Dealer in complying with the requirements of such Rules and
By-Laws, including, without limitation, by:

 

(i)                                     if
such Rules or By-Laws shall so require, engaging a “qualified independent
underwriter” (as defined in such Rules) to participate in the preparation of
the Registration Statement, to exercise usual standards of due diligence with
respect thereto and, if any portion of the offering contemplated by such Registration
Statement is an underwritten offering or is made through a placement or sales
agent, to recommend the yield of such Notes;

 

(ii)                                  indemnifying
any such qualified independent underwriter to the extent of the indemnification
of underwriters provided in Section 7 hereof; and

 

(iii)                               providing
such information to such Broker-Dealer as may be required in order for such
Broker-Dealer to comply with the requirements of such Rules.

 

(v)                                 The
Company and the Guarantor shall use their best efforts to take all other steps
necessary to effect the registration of the Notes or the New Notes, as the case
may be, covered by a Registration Statement.

 

5.                                       Additional
Interest

 

(a)                                  The
parties hereto agree that the Holders of Notes or New Notes, as the case may
be, will suffer damages if the Company and the Guarantor fail to perform their

 

14

 

obligations under Section 2
or 3 hereof and that it would not be feasible to ascertain the extent of such
damages.  Accordingly, in the event that:

 

(i)                                     neither
the Exchange Offer Registration Statement nor the Shelf Registration Statement
have been filed on or prior to the 90th day following the original
issuance of the Notes;

 

(ii)                                  neither
the Exchange Offer Registration Statement nor the Shelf Registration Statement
have been declared effective on or prior to the 180th day following
the original issuance of the Notes;

 

(iii)                               neither
the Exchange Offer has been completed nor the Shelf Registration Statement has
been declared effective on or prior to the 210th day following the
original issuance of the Notes; or

 

(iv)                              either
the Exchange Offer Registration Statement or Shelf Registration Statement cease
to be effective or usable in connection with the resales of the Notes or New
Notes during a period in which it is required to be effective hereunder without
being succeeded immediately by any additional Registration Statement or
post-effective amendment covering the Notes or the New Notes, as the case may
be, which has been filed and declared effective;

 

(each such event referred to in the foregoing clauses (i) through
(iv), a “Registration Default”), then additional interest (“Additional
Interest”) will accrue on the principal amount of the Notes and the New
Notes, respectively (in addition to the stated interest on the Notes and the
New Notes), from and including the date on which any Registration Default first
occurs and while any such Registration Default has occurred and is continuing,
to but excluding the date on which all filings, declarations of effectiveness
and consummations, as the case may be, have been achieved which, if achieved on
a timely basis, would have prevented the occurrence of all of the then existing
Registration Defaults.  Additional
Interest will accrue at a rate of 0.25% per annum during the 90-day
period immediately following such first occurrence of a Registration Default
and while any such Registration Default has occurred and is continuing, and
shall increase by 0.25% per annum at the end of each subsequent 90-day
period up to a maximum of 0.50% per annum with respect to all Registration
Defaults, until the date on which all of the filings, declarations of
effectiveness and consummations referred to in the preceding sentence have been
achieved, on which date the interest rate on the Notes or the New Notes,
respectively, will revert to the interest rate originally borne by such notes.

 

(b)                                 The
Company and the Guarantor shall notify the Trustee under the Indenture (or the
trustee under any New Notes Indenture) immediately upon the happening of each
and every Registration Default.  The
Company and the Guarantor shall pay the Additional Interest due on the Notes or
New Notes, as the case may be, by depositing with the Trustee (which shall not
be the Company for these purposes) for the Notes or the New Notes, in trust,
for the benefit of the Holders thereof, prior to 11:00 A.M. on the next
interest payment date specified in the Indenture (or such New Notes Indenture),
sums sufficient to pay the Additional Interest then due.  The Additional Interest due shall be payable
on each interest payment date specified by the Indenture (or such New Notes
Indenture) to the record holders entitled to receive the interest payment to be
made on such date.

 

15

 

(c)                                  The
parties hereto agree that the Additional Interest provided for in this Section 5
constitutes a reasonable estimate of the damages that will be suffered by
Holders of Notes or New Notes by reason of the happening of any Registration
Default.

 

(d)                                 All
of the Company’s and the Guarantor’s obligations set forth in this Section 5
shall survive the termination of this Agreement.

 

6.                                       Registration Expenses.  The
Company and the Guarantor shall be jointly and severally responsible to bear all expenses incurred in connection with
the performance of its obligations under Sections 2, 3 and 4 hereof and,
in the event of any Shelf Registration Statement, will reimburse the Holders
for the reasonable fees and disbursements of one firm or counsel designated by
the Majority Holders to act as counsel for the Holders in connection therewith,
and, in the case of any Exchange Offer Registration Statement, will reimburse
the Initial Purchasers for the reasonable fees and disbursements of one
firm or counsel designated as counsel acting in connection therewith.

 

7.                                       Indemnification and
Contribution.  (a) 
The Company and
the Guarantor, jointly and severally, agree to indemnify and hold harmless each Holder of Notes or
New Notes, as the case may be, covered by any Registration Statement (including each Initial Purchaser and, with
respect to any Prospectus delivery as contemplated in Section 4(h) hereof,
each Exchanging Dealer), the directors, officers, employees and agents of each
such Holder and each Person who controls any such Holder within the meaning of
either the Securities Act or the Exchange Act against any and all losses,
claims, damages or liabilities, joint or several, to which they or any of them
may become subject under the Securities Act, the Exchange Act or other federal
or state statutory law or regulation, at common law or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement as originally filed
or in any amendment thereof, or in any preliminary Prospectus or the
Prospectus, or in any
amendment thereof or supplement thereto, or arise out of or are based upon the omission
or alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading, and agrees
to reimburse each such indemnified party, as incurred, for any legal or other
expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company and the Guarantor will not be liable in any case to the extent
that any such loss, claim, damage or liability arises out of or is based upon
any such untrue statement or alleged untrue statement or omission or alleged
omission made therein in reliance upon and in conformity with written
information furnished to the Company and the Guarantor by or on behalf of any such Holder
specifically for inclusion therein; provided  further,
that with respect to any untrue statement or omission of material fact made in
any Registration Statement, the indemnity agreement contained in this Section 7(a) shall
not inure to the benefit of any Holder from whom the person asserting any such
losses, claims, damages, liabilities or expenses purchased Notes or New Notes
concerned, or any person controlling such Holders, if a copy of the Prospectus
(as then amended or supplemented if the Company and the Guarantor shall have
furnished any amendments or supplements thereto) was not sent or given by or on
behalf of such Holder to

 

16

 

such person, if
required by laws so to have been delivered, at or prior to the written
confirmation of the sale of the New Notes or the Notes to such person, and if
the Prospectus (as so amended or supplemented) would have cured the defect
giving rise to such losses, claims, damages, liabilities or expenses, unless
such failure is the result of noncompliance by the Company and the Guarantor
with Section 4(e)-(h) hereof.  This indemnity agreement will be in addition to
any liability which the Company and the Guarantor may otherwise have.

 

The Company and the Guarantor,
jointly and severally, also agree to indemnify or contribute as provided in Section 7(d) to Losses of each underwriter of Notes
or New Notes, as the case may be, registered under a Shelf Registration
Statement, their directors, officers, employees or
agents and each Person who
controls such underwriter on substantially the same basis as that of the
indemnification of the Initial Purchasers and the selling Holders provided in this Section 7(a) and shall, if requested by any Holder,
enter into an underwriting agreement reflecting such agreement, as provided in Section 4(p)
hereof.

 

(b)                                 Each Holder of notes covered by a Registration
Statement (including each Initial Purchaser and, with respect to any Prospectus
delivery as contemplated in Section 4(h) hereof, each Exchanging
Dealer) severally agrees to indemnify and hold harmless the Company
and the Guarantor, and their respective directors and officers who signs such Registration Statement and each
Person who controls the Company and the Guarantor within the meaning of either the Securities
Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company and
the Guarantor to each such Holder,
but only with reference to written information relating to such Holder
furnished to the Company and the Guarantor by or on behalf of such Holder specifically
for inclusion in the documents referred to in the foregoing indemnity.  This indemnity agreement will be in addition
to any liability which any such Holder may otherwise have.

 

(c)                                  Promptly after receipt by an indemnified party
under this Section 7 or notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section, notify the indemnifying party in writing
of the commencement thereof; but the failure so to notify the indemnifying
party (i) will not relieve it from liability under paragraph (a) or
(b) above unless and to the extent it did not otherwise learn of such
action and such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses; and (ii) will not, in any event, relieve
the indemnifying party from any obligations to any indemnified party other than
the indemnification obligation provided in paragraph (a) or (b) above.  The indemnifying party shall be entitled to
appoint counsel of the indemnifying party’s choice at the indemnifying party’s
expense to represent the indemnified party in any action for which
indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be
satisfactory to the indemnified party. 
Notwithstanding the indemnifying party’s election to appoint counsel to
represent the indemnified party in an action, the indemnified party shall have
the right to employ separate counsel (including local counsel), and the
indemnifying party shall bear the reasonable fees, costs and expenses of such
separate counsel if (i) the use of counsel chosen by the indemnifying
party to represent the indemnified party would present such counsel with a
conflict of interest; (ii) the actual or potential defendants in, or
targets of, any such action include both the indemnified party and the
indemnifying party

 

17

 

and
the indemnified party shall have reasonably concluded that there may be legal
defenses available to it and/or other indemnified parties which are different
from or additional to those available to the indemnifying party; (iii) the
indemnifying party shall not have employed counsel  satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action; or (iv) the indemnifying party shall
authorize the indemnified party to employ separate counsel at the expense of
the indemnifying party.  An indemnifying
party will not, without the prior written consent (which
consent shall not be unreasonably withheld) of the indemnified parties, settle or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding.

 

(d)                                 In the event that the indemnity provided in
paragraph (a) or (b) of this Section is unavailable to or
insufficient to hold harmless an indemnified party for any reason, then each
applicable indemnifying party shall have a joint and several obligation to
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or
defending same) (collectively “Losses”) to which such indemnified party
may be subject in such proportion as is appropriate to reflect the relative
benefits received by such indemnifying party, on the one hand, and such
indemnified party, on the other hand, from the Initial Placement and the
Registration Statement which resulted in such Losses; provided, however,
that in no case shall any Initial Purchaser or any subsequent Holder of any
Note or New Note be responsible, in the aggregate, for any amount in excess of
the purchase discount or commission applicable to such Note, or in the case of
a New Note, applicable to the Note that was exchangeable into such New Note,
nor shall any underwriter be responsible for any amount in excess of the
underwriting discount or commission applicable to the notes purchased by such
underwriter under the Registration Statement which resulted in such
Losses.  If the allocation provided by
the immediately preceding sentence is unavailable for any reason, the
indemnifying party and the indemnified party shall contribute in such
proportion as is appropriate to reflect not only such relative benefits but
also the relative fault of such indemnifying party, on the one hand, and such
indemnified party, on the other hand, in connection with the statements or
omissions which resulted in such Losses as well as any other relevant equitable
considerations.  Benefits received by the
Company and the Guarantor shall be deemed to be equal to the total net proceeds from the
Initial Placement (before deducting expenses). 
Benefits received by the Initial Purchasers shall be deemed to be equal to the total
purchase discounts and commissions, and benefits received by any other Holders
shall be deemed to be equal to the value of receiving Notes or New Notes, as applicable,
registered under the Securities Act. 
Benefits received by any underwriter shall be deemed to be equal to the
total underwriting discounts and commissions, as set forth on the cover page of
the Prospectus forming a part of the Registration Statement which resulted in
such Losses.  Relative fault shall be
determined by reference to, among other things, whether any alleged untrue
statement or omission relates to information provided by the indemnifying
party, on the one hand, or by the indemnified party, on the other hand,
the intent of the parties and their relative knowledge, access to information
and opportunity to correct or prevent such untrue statement or omission.  The
parties agree that it would not be just and equitable if contribution were
determined by pro rata allocation (even if the Holders
were treated as one entity for such purpose) or any other

 

18

 

method
of allocation which does not take account of the equitable considerations
referred to above.  Notwithstanding the
provisions of this paragraph (d), no Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation. 
For purposes of this Section, each Person who controls a Holder within
the meaning of either the Securities Act or the Exchange Act and each director,
officer, employee and agent of such Holder shall have the same rights to contribution
as such Holder, and each Person who controls the Company and
the Guarantor within the meaning
of either the Securities Act or the Exchange Act, each officer of the Company and
the Guarantor who shall have
signed the Registration Statement and each director of the Company and
the Guarantor shall have the same
rights to contribution as the Company, subject in each case to the applicable
terms and conditions of this paragraph (d).

 

(e)                                  The provisions of this Section will remain
in full force and effect, regardless of any investigation made by or on behalf
of any Holder or the Company or the Guarantor or any of the officers, directors or
controlling Persons referred to in this Section hereof, and will survive the sale
by a Holder of Notes covered by a Registration Statement.

 

8.                                       Underwritten
Registrations.  (a)  If any of
the Notes or New Notes, as the case may be, covered by any Shelf Registration
Statement are to be sold in an underwritten offering, the Managing Underwriters
shall be selected by the Majority Holders.

 

(b)                                 No
Person may participate in any underwritten offering pursuant to any Shelf
Registration Statement, unless such Person (i) agrees to sell such Person’s
Notes or New Notes, as the case may be, on the basis reasonably provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements; and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

 

9.                                       No Inconsistent
Agreements.  Neither
the Company nor
the Guarantor has, as of the date
hereof, entered into, nor shall they, on or after the date hereof, enter into, any
agreement with respect to Notes of the Company that is inconsistent with the rights granted to
the Holders herein or otherwise conflicts with the provisions hereof.

 

10.                                 Amendments and
Waivers.  The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, unless the Company has obtained the
written consent of the Majority Holders (or, after the consummation of any Registered
Exchange Offer in accordance
with Section 2 hereof, of New Notes); provided that, with respect
to any matter that directly or indirectly affects the rights of any Initial
Purchaser hereunder, the Company shall obtain the written consent of each such
Initial Purchaser against which such amendment, qualification, supplement,
waiver or consent is to be effective. 
Notwithstanding the foregoing (except the foregoing proviso), a waiver
or consent to departure from the provisions hereof with respect to a matter
that relates exclusively to the rights of Holders whose Notes or
New Notes, as the case may be, are being sold pursuant to a Registration Statement and that does not
directly or indirectly affect the rights of other Holders may be given

 

19

 

by the
Majority Holders,
determined on the basis of Notes or New Notes, as the case
may be, being sold rather
than registered under such Registration Statement.

 

11.                                 Notices.  All
notices and other communications provided for or permitted hereunder shall be
made in writing by hand-delivery, first-class mail, telex, telecopier or air
courier guaranteeing overnight delivery:

 

(a)                                  if to a Holder, at the most current address
given by such holder to the Company in accordance with the provisions of this Section 11, which address initially is, with respect to
each Holder, the address of such Holder maintained by the Registrar under the
Indenture, with a copy in like manner to Citigroup Global Markets Inc. and Greenwich
Capital Markets, Inc.;

 

(b)                                 if to you, initially at the address set forth
in the Purchase Agreement; and

 

(c)                                  if to the Company or the
Guarantor, initially at its
address:

 

	
   

  	
  Harrah’s
  Entertainment, Inc.

  	
   

  
	
   

  	
  Harrah’s
  Operating Company, Inc.

  	
   

  
	
   

  	
  One Harrah’s
  Court

  	
   

  
	
   

  	
  Las Vegas,
  Nevada 89119

  	
   

  
	
   

  	
   

  
	
   

  	
  Attn:

  	
  Treasurer

  
	
   

  	
  With a copy to:

  	
  General Counsel

  
				

 

All such notices and communications shall be
deemed to have been duly given when received.

 

The Initial Purchasers or the Company or the
Guarantor by notice to the
other parties may designate additional or different addresses for subsequent
notices or communications.

 

12.                                 Successors.  This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties, including, without the need for an express
assignment or any consent by the Company and the Guarantor thereto, subsequent Holders of Notes and
the New Notes.  The Company and the
Guarantor hereby agree to
extend the benefits of this Agreement to any Holder of Notes and
the New Notes, and any such Holder may specifically enforce
the provisions of this Agreement as if an original party hereto.

 

13.                                 Counterparts.  This
agreement may be in signed counterparts, each of which shall an original
and all of which together shall constitute one and the same agreement.

 

14.                                 Headings.  The
headings used herein are for convenience only and shall not affect the construction hereof.

 

15.                                 Applicable Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York applicable to contracts made and to be performed in the State
of New York.

 

20

 

16.                                 Severability.  In the
event that any one of more of the provisions contained herein, or the
application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
shall be enforceable to the fullest extent permitted by law.

 

17.                                 Notes Held by the
Company, etc.  Whenever the consent or
approval of Holders of a specified percentage of principal amount of Notes or
New Notes is required hereunder, Notes or New Notes, as applicable, held by the
Company or its Affiliates (other than subsequent Holders of Notes or New Notes
if such subsequent Holders are deemed to be Affiliates solely by reason of
their holdings of such Notes or New Notes) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

 

21

 

If the foregoing is in accordance with your
understanding of our agreement, please sign and return to us the enclosed
duplicate hereof, whereupon this letter and your acceptance shall represent a
binding agreement among the Company, the Guarantor and the Initial Purchasers.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  HARRAH’S
  OPERATING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen H. Brammell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stephen H. Brammell

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President,
  General Counsel

  
	
   

  	
   

  	
   

  	
  and Corporate Secretary

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  HARRAH’S
  ENTERTAINMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephen H. Brammell

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Stephen H. Brammell

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President,
  General Counsel

  
	
   

  	
   

  	
   

  	
  and Corporate Secretary

  
							

 

22

 

The foregoing Agreement is hereby confirmed and

accepted as of the date first above written.

 

 

	
  By:

  	
  CITIGROUP GLOBAL
  MARKETS INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Evan Ladouceur

  	
   

  
	
   

  	
  Name:

  	
  Evan Ladouceur

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  GREENWICH
  CAPITAL MARKETS, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   /s/ Donald Devine

  	
   

  
	
   

  	
  Name:

  	
  Donald Devine

  
	
   

  	
  Title:

  	
  Managing Director

  
					

 

23

 

ANNEX A

 

Each Broker-Dealer that receives New Notes for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Notes.  The Letter of Transmittal states that by so
acknowledging and by delivering a prospectus, a Broker-Dealer will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.  This Prospectus, as it
may be amended or supplemented from time to time, may be used by a
Broker-Dealer in connection with resales of New Notes received in exchange for
Notes where such Notes were acquired by such Broker-Dealer as a result of
market-making activities or other trading activities.  The Company and the Guarantor have agreed
that, starting on the Expiration Date (as defined herein) and ending on the
close of business 180 days after the Expiration Date, they will make this
Prospectus available to any Broker-Dealer for use in connection with any such
resale.  See “Plan of Distribution.”

 

A-1

 

ANNEX B

 

Each Broker-Dealer that receives New Notes for its own
account in exchange for Notes, where such Notes were acquired by such
Broker-Dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such New Notes.  See “Plan
of Distribution.”

 

B-1

 

ANNEX C

 

PLAN OF
DISTRIBUTION

 

Each Broker-Dealer that receives New Notes for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Notes.  This Prospectus, as it may be amended or
supplemented from time to time, may be used by a Broker-Dealer in connection
with resales of New Notes received in exchange for Notes where such Notes were
acquired as a result of market-making activities or other trading
activities.  The Company and the
Guarantor have agreed that, starting on the Expiration Date and ending on the
close of business 180 days after the Expiration Date, it will make this
Prospectus, as amended or supplemented, available to any Broker-Dealer for use
in connection with any such resale.  In
addition, until [•] all dealers effecting transactions in the New Notes
may be required to deliver a prospectus.

 

The Company and the Guarantor will not receive any
proceeds from any sale of New Notes by brokers-dealers.  New Notes received by Broker-Dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the New Notes or a combination
of such methods of resale, at market prices prevailing at the time of resale,
at prices related to such prevailing market prices or negotiated prices.  Any such resale may be made directly to
purchasers or to or through brokers or dealers who may receive compensation in
the form of commissions or concessions from any such Broker-Dealer and/or the
purchasers of any such New Notes.  Any
Broker-Dealer that resells New Notes that were received by it for its own
account pursuant to the Exchange Offer and any broker or dealer that
participates in a distribution of such New Notes may be deemed to be an “underwriter”
within the meaning of the Securities Act and any profit of any such resale of
New Notes and any commissions or concessions received by any such Persons may
be deemed to be underwriting compensation under the Securities Act.  The Letter of Transmittal states that by
acknowledging that it will deliver and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act.

 

For a period of 180 days after
the Expiration Date, the Company and the Guarantor will promptly send
additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any Broker-Dealer that requests such documents in the Letter of
Transmittal.  The Company and the
Guarantor have agreed to pay all expenses incident to the Exchange Offer
(including the expenses of one counsel for the holder of the Notes) other than
commissions or concessions of any brokers or dealers and will indemnify the
holders of the Notes (including any Broker-Dealers) against certain
liabilities, including liabilities under the Securities Act.

 

[If applicable, add information
required by Regulation S-K Items 507 and/or 508.]

 

C-1

 

ANNEX D

 

Rider A

 

CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO
RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS
OR SUPPLEMENTS THERETO.

 

	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Address:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  

 

Rider B

 

If the undersigned is not a Broker-Dealer, the
undersigned represents that it acquired the New Notes in the ordinary course of
its business, it is not engaged in, and does not intend to engage in, a
distribution of New Notes and it has no arrangements or understandings with any
Person to participate in a distribution of the New Notes.  If the undersigned is a Broker-Dealer that
will receive New Notes for its own account in exchange for Notes, it represents
that the Notes to be exchanged for New Notes were acquired by it as a result of
market-making activities or other trading activities and acknowledges that it
will deliver a prospectus in connection with any resale of such New Notes;
however, by so acknowledging and by delivering a prospectus, the undersigned
will not be deemed to admit that it is an “underwriter” within the meaning of
the Securities Act.

 

D-1

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