Document:

Amendment and Restatement of Harrah's Executive Supplemental Savings Plan II

 Exhibit 10.73 
 AMENDMENT AND RESTATEMENT OF 
 THE HARRAH’S ENTERTAINMENT, INC. 
 EXECUTIVE SUPPLEMENTAL SAVINGS PLAN II 
 Effective as of August 3, 2007 

 AMENDMENT AND RESTATEMENT OF 
 THE HARRAH’S ENTERTAINMENT, INC. 
 EXECUTIVE SUPPLEMENTAL SAVINGS PLAN II

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page
	 ARTICLE ONE PREAMBLE
	  	1
		
	 ARTICLE TWO DEFINITIONS
	  	2
			
	 2.1
	  	 “Account” or “Accounts”
	  	2
	 2.2
	  	 “Affiliate”
	  	2
	 2.3
	  	 “Beneficiary”
	  	2
	 2.4
	  	 “Board”
	  	2
	 2.5
	  	 “Bonus”
	  	2
	 2.5A
	  	 “Caesars Company Contribution Account”
	  	2
	 2.5B
	  	 “Caesars Participant”
	  	3
	 2.5C
	  	 “Caesars Plan”
	  	3
	 2.5D
	  	 “Caesars Plan Transfer Date”
	  	3
	 2.6
	  	 “Change of Control”
	  	3
	 2.7
	  	 “Code”
	  	4
	 2.8
	  	 “Company”
	  	4
	 2.9
	  	 “Compensation”
	  	5
	 2.10
	  	 “Deferral Contribution”
	  	5
	 2.11
	  	 “Deferral Contribution Account”
	  	5
	 2.12
	  	 “Deferral Period”
	  	5
	 2.13
	  	 “Disability”
	  	5
	 2.14
	  	 “Discretionary Contribution”
	  	5
	 2.15
	  	 “Discretionary Contribution Account”
	  	5
	 2.16
	  	 “Distribution Year”
	  	5
	 2.17
	  	 “EDCP Committee”
	  	5
	 2.18
	  	 “EDCP Investment Committee”
	  	5
	 2.19
	  	 “Effective Date”
	  	6
	 2.20
	  	 “Employee”
	  	6
	 2.21
	  	 “Employer”
	  	6
	 2.22
	  	 “ERISA”
	  	6

 AMENDMENT AND RESTATEMENT OF 
 THE HARRAH’S ENTERTAINMENT, INC. 
 EXECUTIVE SUPPLEMENTAL SAVINGS PLAN II

 TABLE OF CONTENTS 

					
	 	  	 	  	Page
	 2.23
	  	 “401(k) Compensation”
	  	6
	 2.24
	  	 “401(k) Contributions”
	  	6
	 2.25
	  	 “401(k) Matchable Deferrals”
	  	6
	 2.26
	  	 “401(k) Matching Contributions”
	  	6
	 2.26A
	  	 “Harrah’s ESSP”
	  	6
	 2.26B
	  	 “Harrah’s ESSP Participant”
	  	7
	 2.26C
	  	 “Harrah’s ESSP First Transfer Date”
	  	7
	 2.26D
	  	 “Harrah’s ESSP Second Transfer Date”
	  	7
	 2.27
	  	 “HRC”
	  	7
	 2.28
	  	 “Investment Fund”
	  	7
	 2.29
	  	 “Matching Contribution”
	  	7
	 2.30
	  	 “Matching Contribution Account”
	  	7
	 2.31
	  	 “Matching Formula”
	  	7
	 2.32
	  	 “Matching Limit”
	  	7
	 2.33
	  	 “Participant”
	  	7
	 2.34
	  	 “Participation Agreement”
	  	7
	 2.35
	  	 “Plan”
	  	8
	 2.36
	  	 “Salary”
	  	8
	 2.37
	  	 “Savings and Retirement Plan”
	  	8
	 2.38
	  	 “Separation from Service”
	  	8
	 2.39
	  	 “Service Provider”
	  	8
	 2.40
	  	 “Service Recipient”
	  	8
	 2.41
	  	 “Special Distribution Election Period”
	  	8
	 2.42
	  	 “Specified Employee”
	  	9
	 2.43
	  	 “Specified Employee Effective Date”
	  	9
	 2.44
	  	 “Specified Employee Identification Date”
	  	9
	 2.45
	  	 “Testing Year”
	  	9

  

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 AMENDMENT AND RESTATEMENT OF 
 THE HARRAH’S ENTERTAINMENT, INC. 
 EXECUTIVE SUPPLEMENTAL SAVINGS PLAN II

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	 	  	 	  	Page
	 2.46
	  	 “Transferred Caesars Accounts”
	  	9
	 2.47
	  	 “Transferred Caesars Company Contribution Account”
	  	9
	 2.48
	  	 “Transferred Caesars Deferral Account”
	  	9
	 2.49
	  	 “Transferred Harrah’s ESSP Accounts”
	  	10
	 2.50
	  	 “Transferred Harrah’s ESSP Deferral Contribution Account”
	  	10
	 2.51
	  	 “Transferred Harrah’s ESSP Matching Contribution Account”
	  	10
	 2.52
	  	 “Trust”
	  	10
	 2.53
	  	 “Trust Agreement”
	  	10
	 2.54
	  	 “Trust Fund”
	  	10
	 2.55
	  	 “Trustee”
	  	10
	 2.56
	  	 “Valuation Date”
	  	10
	 2.57
	  	 “Years of Vesting Service”
	  	10
		
	 ARTICLE THREE ELIGIBILITY
	  	11
			
	 3.1
	  	 Selection of Participants
	  	11
	 3.2
	  	 Participation Agreement
	  	14
	 3.3
	  	 Discontinuance of Participation
	  	15
	 3.4
	  	 Reemployment
	  	15
	 3.5
	  	 Adoption by Affiliates
	  	16
		
	 ARTICLE FOUR CONTRIBUTIONS
	  	16
			
	 4.1
	  	 Participant Contributions.
	  	16
	 4.2
	  	 Matching Contributions.
	  	17
	 4.3
	  	 Change or Suspension of Contributions
	  	20
	 4.4
	  	 Discretionary Contributions
	  	22
	 4.5
	  	 2005 Contributions under the Caesars Plan.
	  	22
	 4.6
	  	 Second Enhancement Contributions
	  	23
	 4.7
	  	 Transfers from Caesars Plan.
	  	23
	 4.8
	  	 Transfers from Harrah’s ESSP.
	  	24

  

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 AMENDMENT AND RESTATEMENT OF 
 THE HARRAH’S ENTERTAINMENT, INC. 
 EXECUTIVE SUPPLEMENTAL SAVINGS PLAN II

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	 	  	 	  	Page
	 ARTICLE FIVE WITHDRAWALS UPON UNFORESEEABLE EMERGENCY
	  	26
			
	 5.1
	  	 Unforeseeable Emergency Withdrawals.
	  	26
	 5.2
	  	 Account Adjustments
	  	27
	 5.3
	  	 Cancellation of Participation in the Event of Hardship Withdrawal
	  	27
		
	 ARTICLE SIX CREDITING OF CONTRIBUTIONS AND INCOME
	  	27
			
	 6.1
	  	 Account Allocations
	  	27
	 6.2
	  	 Subaccounts
	  	28
	 6.3
	  	 Hypothetical Investment Funds
	  	28
	 6.4
	  	 Investment Direction
	  	28
	 6.5
	  	 Rate of Return
	  	28
	 6.6
	  	 Application to Beneficiaries
	  	29
	 6.7
	  	 EDCP Investment Committee
	  	29
		
	 ARTICLE SEVEN VESTING
	  	29
			
	 7.1
	  	 Vesting of Accounts
	  	29
	 7.2
	  	 Changes in Vesting Schedule
	  	33
		
	 ARTICLE EIGHT DISTRIBUTION ELECTIONS; PAYMENT OF BENEFITS
	  	33
			
	 8.1
	  	 Distribution Elections
	  	33
	 8.2
	  	 Changes of Distribution Year Election
	  	36
	 8.3
	  	 Time of Payment
	  	38
	 8.4
	  	 Form of Payments
	  	39
	 8.5
	  	 Beneficiary Designations
	  	40
	 8.6
	  	 Prohibition on Acceleration of Distributions
	  	41
	 8.7
	  	 Withholding and Payroll Taxes
	  	41
	 8.8
	  	 [Reserved]
	  	41
	 8.9
	  	 Special Lump Sum Distribution.
	  	42
	 8.10
	  	 Special Distribution Elections.
	  	42
	 8.11
	  	 Compliance with Section 409A of the Code.
	  	44

  

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 AMENDMENT AND RESTATEMENT OF 
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 EXECUTIVE SUPPLEMENTAL SAVINGS PLAN II

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	 	  	 	  	Page
	 ARTICLE NINE ADMINISTRATION OF THE PLAN
	  	44
			
	 9.1
	  	 Adoption of Trust
	  	44
	 9.2
	  	 Powers of the EDCP Committee
	  	44
	 9.3
	  	 Creation of Committee
	  	45
	 9.4
	  	 Appointment of Agents
	  	45
	 9.5
	  	 Majority Vote and Execution of Instruments
	  	45
	 9.6
	  	 Allocation of Responsibilities
	  	45
	 9.7
	  	 Conflict of Interest
	  	45
	 9.8
	  	 Indemnification
	  	45
	 9.9
	  	 Action Taken by Employer
	  	45
	 9.10
	  	 Discretionary Authority
	  	46
	 9.11
	  	 Participant Statements
	  	46
	 9.12
	  	 Compliance with Section 409A of the Code
	  	46
		
	 ARTICLE TEN CLAIMS REVIEW PROCEDURE
	  	46
			
	 10.1
	  	 General
	  	46
	 10.2
	  	 Benefit Determination
	  	46
	 10.3
	  	 Appeals
	  	47
	 10.4
	  	 Notice of Denials
	  	48
		
	 ARTICLE ELEVEN LIMITATION ON ASSIGNMENT; PAYMENTS TO LEGALLY INCOMPETENT DISTRIBUTEE
	  	48
			
	 11.1
	  	 Anti-Alienation Clause
	  	48
	 11.2
	  	 Permitted Arrangements
	  	49
	 11.3
	  	 Payment to Minor or Incompetent
	  	49
		
	 ARTICLE TWELVE AMENDMENT, MERGER AND TERMINATION
	  	49
			
	 12.1
	  	 Amendment
	  	49
	 12.2
	  	 Merger or Consolidation of Company
	  	49
	 12.3
	  	 Termination of Plan or Discontinuance of Contributions
	  	50
	 12.4
	  	 Continuation of Plan following a Change of Control
	  	50

  

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 AMENDMENT AND RESTATEMENT OF 
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 EXECUTIVE SUPPLEMENTAL SAVINGS PLAN II

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	 	  	 	  	Page
	 12.5
	  	 Limitation of Company’s Liability
	  	50
	 12.6
	  	 Limitation on Distributions
	  	50
		
	 ARTICLE THIRTEEN GENERAL PROVISIONS
	  	50
			
	 13.1
	  	 Limitation of Rights
	  	50
	 13.2
	  	 Construction
	  	51
	 13.3
	  	 Status of Participants as Unsecured Creditors
	  	51
	 13.4
	  	 Status of Trust Fund
	  	51
	 13.5
	  	 Funding upon a Change of Control
	  	51
	 13.6
	  	 Uniform Administration
	  	51
	 13.7
	  	 Heirs and Successors
	  	52
	 13.8
	  	 Electronic Administration.
	  	52

  

 vi 

 AMENDMENT AND RESTATEMENT OF 
 THE HARRAH’S ENTERTAINMENT, INC. 
 EXECUTIVE SUPPLEMENTAL SAVINGS PLAN II

 ARTICLE ONE 
 PREAMBLE 
 HARRAH’S ENTERTAINMENT, INC., a Delaware corporation (the “Company”), previously adopted
this Harrah’s Entertainment, Inc. Executive Supplemental Savings Plan II (the “Plan”), effective as of January 1, 2005, in order to provide key executives and senior management employees with an opportunity and incentive to save
for retirement and other purposes. 
 The purpose of this Plan is to provide a select group of management or highly compensated employees of
the Company and certain of its affiliates with the opportunity to defer a portion of their compensation and to receive contributions from their employers. As a result, the Plan is intended to be a “top hat plan,” exempt from certain
requirements of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), pursuant to Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. This Plan is not intended to qualify for favorable tax treatment pursuant to
Section 401(a) of the Internal Revenue Code of 1986, as amended (the “Code”), or any successor section or statute. This Plan is intended to comply with the requirements of Section 409A(a)(2), (3) and (4) of the Code.

 The Plan was subsequently amended by the First and Second Amendments to the Plan and was amended and restated generally effective as of
January 1, 2005. 
 The Human Resources Committee of the Board of Directors of Harrah’s Entertainment, Inc. now wishes to amend the
Plan to provide each Participant and each Beneficiary of a deceased Participant with an opportunity to elect to receive a special lump sum distribution from his or her Accounts under the Plan during 2008, and an opportunity to make special
distribution elections, in accordance with the transitional relief under Internal Revenue Service Notice 2005-1, Q/A-19(c), the Proposed Regulations under Section 409A of the Code and Internal Revenue Service Notice 2006-79. 
 The Company has adopted this Amendment and Restatement of the Plan, effective as of August 3, 2007. This Amendment and Restatement of the Plan
incorporates the prior amendment and restatement of the Plan and constitutes a complete amendment, restatement and continuation of the Plan. This Amendment and Restatement of the Plan is intended to comply with the requirements of Sections
409A(a)(2), (3) and (4) of the Code and the Treasury Regulations thereunder. As provided in Notice 2006-79, with respect to an election or amendment to change a time and form of payment under the Plan made on or after January 1, 2007
and on or before December 31, 2007, the election or amendment shall apply only to amounts that would not otherwise be payable in 2007 and shall not cause an amount to be paid in 2007 but would not otherwise be payable in 2007. The Plan, as in
effect prior to this Amendment and Restatement of the Plan, shall govern distributions under the Plan prior to August 3, 2007. 

 ARTICLE TWO 
 DEFINITIONS 
 When a word or phrase appears in this Plan with the initial letter capitalized,
and the word or phrase does not begin a sentence, the word or phrase shall generally be a term defined in this Article Two or in the Preamble. The following words and phrases used in the Plan with the initial letter capitalized shall have the
meanings set forth in this Article Two, unless a clearly different meaning is required by the context in which the word or phrase is used: 
 2.1 “Account” or “Accounts” means the accounts which may be maintained by the EDCP Committee to reflect the interest of a Participant or the Beneficiary of a deceased Participant under the Plan.

 2.2 “Affiliate” means: (a) a corporation which is a member of the same controlled group of corporations
(within the meaning of Section 414(b) of the Code) as is the Company, (b) any other trade or business (whether or not incorporated) controlling, controlled by, or under common control (within the meaning of Section 414(c) of the Code)
with the Company, and (c) any other corporation, partnership, or other organization which is a member of an affiliated service group (within the meaning of Section 414(m) of the Code) with the Company or which is otherwise required to be
aggregated with the Company pursuant to Section 414(o) of the Code. 
 2.3 “Beneficiary” means the person or
trust that a Participant, in his or her most recent written designation filed with the EDCP Committee, shall have designated to receive his or her benefit under the Plan in the event of his or her death or, if applicable, the person or entity
determined in accordance with Section 8.5 (Beneficiary Designations). 
 2.4 “Board” means the Board of
Directors of the Company. 
 2.5 “Bonus” means the incentive payment or payments earned by a Participant during a
Deferral Period pursuant to the Company’s Annual Management Bonus Plan, the Company’s Senior Executive Incentive Plan, the Company’s Player Development Bonus Program and/or the Horseshoe Gaming Holding Corp. 2004 Annual Bonus
Incentive Plan, as such plans may be amended from time to time, and those short-term cash incentive plans that are approved by the EDCP Committee or its delegate, the Senior Vice President of Human Resources of the Company. 
 2.5A “Caesars Company Contribution Account” means the Account maintained to record the amounts that otherwise would be credited
to a Caesars Participant’s “Company Contribution Account” under the Caesars Plan, determined in accordance with Section 4.5(c) (Caesars Matching Contributions), on behalf of such Caesars Participant, as adjusted to reflect the
rate of return on the hypothetical Investment Funds selected by the Caesars Participant in accordance with Section 6.4 (Investment Direction) and other credits or charges in accordance with this Plan. A Caesars Participant’s Caesars
Company Contribution Account shall be divided into subaccounts as determined by the EDCP Committee. 
  

 2 

 2.5B “Caesars Participant” means: 
 (a) an Employee who is a “Participant” (as defined in the Caesars Plan) and becomes a Participant in accordance with
Section 3.1(e)(1), or 
 (b) any other “Participant” (as defined in the Caesars Plan) or former
“Participant” who has an “Account” (as defined in the Caesars Plan) or “Accounts” under the Caesars Plan, effective as of the Caesars Plan Transfer Date. 
 2.5C “Caesars Plan” means the Park Place Entertainment Corporation Executive Deferred Compensation Plan, as amended. 

2.5D “Caesars Plan Transfer Date” means August 1, 2006. 
 2.6 “Change of Control” means and includes each of the following events or transactions described in subsection (a), (b),
(c) or (d): 
 (a) the acquisition, directly or indirectly, by any "person" or "group" (as those terms are defined
in Sections 3(a)(9), 13(d) and 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act") and the rules thereunder) of "beneficial ownership" (as determined pursuant to Rule 13d-3 under the Exchange Act) of securities entitled to vote
generally in the election of directors ("voting securities") of the Company that represent twenty-five percent (25%) or more of the combined voting power of the Company's then outstanding voting securities, other than 
 (1) an acquisition by a trustee or other fiduciary holding securities under any employee benefit plan (or related trust) sponsored
or maintained by the Company or any person controlled by the Company or by any employee benefit plan (or related trust) sponsored or maintained by the Company or any person controlled by the Company, or 
 (2) an acquisition of voting securities by the Company or a corporation owned, directly or indirectly by the stockholders of the
Company in substantially the same proportions as their ownership of the stock of the Company, or 
 (3) an acquisition
of voting securities pursuant to a transaction described in subsection (c) below that would not be a Change of Control under subsection (c); 
 Notwithstanding the foregoing, neither of the following events shall constitute an "acquisition" by any person or group for purposes of this subsection (a): an acquisition of the Company's securities by the Company which causes the
Company's voting securities beneficially owned by a person or group to represent twenty-five percent (25%) or more of the combined voting power of the Company's then outstanding voting securities; provided, however, that if a person or group
shall become the beneficial owner of twenty-five percent (25%) or more of the combined voting power of the Company's then outstanding voting securities by reason of share acquisitions by the Company as described above and shall, after such
share acquisitions by the Company, become the beneficial owner of any additional voting securities of the Company, then such acquisition shall constitute a Change of Control; or 
  

 3 

 (b) during any period of two consecutive years, individuals who, at the beginning
of such period, constitute the Board together with any new director(s) (other than a director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in subsection (a) or (c)) whose
election by the Board or nomination for election by the Company's stockholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the two year period or whose election or
nomination for election was previously so approved, cease for any reason to constitute a majority thereof; or 
 (c)
the consummation by the Company (whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of a merger, consolidation, reorganization, or business combination, or a sale or other disposition
of all or substantially all of the Company's assets, or the acquisition of assets or stock of another entity, in each case other than a transaction 
 (1) which results in the Company's voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the
Company or the person that, as a result of the transaction, controls, directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company's assets or otherwise succeeds to the business of the Company (the
Company or such person, the "Successor Entity")) directly or indirectly, at least a majority of the combined voting power of the Successor Entity's outstanding voting securities immediately after the transaction, and 
 (2) after which no person or group beneficially owns voting securities representing twenty-five percent (25%) or more of the
combined voting power of the Successor Entity; provided, however, that no person or group shall be treated for purposes of this paragraph (2) as beneficially owning twenty-five percent (25%) or more of combined voting power of the
Successor Entity solely as a result of the voting power held in the Company prior to the consummation of the transaction; or 
 (d) the Company's stockholders approve a liquidation or dissolution of the Company. 
 The HRC shall have full and final authority, which
shall be exercised in its discretion, to determine conclusively whether a “Change of Control” has occurred pursuant to the above definition, and the date of the occurrence of such “Change of Control” and any incidental matters
relating thereto. 
 2.7 “Code” means the Internal Revenue Code of 1986, as amended from time to time. 
 2.8 “Company” means Harrah’s Entertainment, Inc., a Delaware corporation. 
  

 4 

 2.9 “Compensation” means, for each Deferral Period, the total Salary earned to
the Participant and the Bonus earned by the Participant. 
 2.10 “Deferral Contribution” means a contribution by a
Participant pursuant to Section 4.1 (Participant Contributions) of this Plan. 
 2.11 “Deferral Contribution
Account” means the Account maintained to record the Deferral Contributions made by a Participant pursuant to Section 4.1 (Participant Contributions) (and, in the case of a Caesars Participant, the deferral contributions made under
Sections 4.5(a) and (b) (Caesars Base Compensation Deferral Contributions and Caesars Bonus Deferral Contributions)) as adjusted to reflect the rate of return on the hypothetical Investment Funds selected by the Participant in accordance with
Section 6.4 (Investment Direction) and other credits or charges in accordance with this Plan. A Participant’s Deferral Contribution Account shall be divided into subaccounts as determined by the EDCP Committee. 
 2.12 “Deferral Period” means, the twelve (12) month period beginning on each January 1 and ending on the next following
December 31. The initial Deferral Period shall commence as of the Effective Date and shall end on the next following December 31. 
 2.13 “Disability” means, for purposes of this Plan, that the Participant qualifies to receive long term disability payments under the Employer’s long term disability insurance program, as it may be amended from
time to time. 
 2.14 “Discretionary Contribution” means an Employer contribution determined in accordance with
Section 4.4 (Discretionary Contributions) of this Plan, which may, in the discretion of the Employer, be transferred to the Trust. 
 2.15 “Discretionary Contribution Account” means the Account maintained to record the Discretionary Contributions calculated in accordance with Section 4.4 (Discretionary Contributions) on behalf of a
Participant, as adjusted to reflect the rate of return on the hypothetical Investment Funds selected by the Participant in accordance with Section 6.4 (Investment Direction) and other credits or charges in accordance with this Plan. A
Participant’s Discretionary Contribution Account shall be divided into subaccounts as determined by the EDCP Committee. 
 2.16
“Distribution Year” means the calendar year selected by a Participant for purposes of distributions from the subaccounts of such Participant’s Accounts for a Deferral Period. 
 2.17 “EDCP Committee” means the committee designated in accordance with Section 9.3 (Creation of Committee) to carry out the
administrative responsibilities under the Plan. 
 2.18 “EDCP Investment Committee” means the committee that has the
responsibility for selecting and monitoring performance of the Investment Funds. 
  

 5 

 2.19 “Effective Date” means January 1, 2005. With respect to each Affiliate
that adopts this Plan after January 1, 2005, the term “Effective Date” means the date designated by the adopting Affiliate. 
 2.20 “Employee” means any individual classified by an Employer as a common law employee of the Employer. For this purpose, the classification that is relevant is the classification in which such individual is placed
by the Employer for purposes of this Plan and the classification of such individual for any other purpose (e.g., employment tax or withholding purposes) shall be irrelevant. If an individual is characterized as a common law employee of the Employer
by a governmental agency or court but not by the Employer, such individual shall be treated as an employee who has not been designated for participation in this Plan. 
 2.21 “Employer” means the Company and any Affiliate that has adopted this Plan pursuant to Section 3.5 (Adoption by Affiliates). 
 2.22 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time. 
 2.23 “401(k) Compensation” means, with respect to a Participant, such Participant’s compensation (as defined in the Savings
and Retirement Plan) for purposes of determining the Employer’s matching contribution (if any) for such Participant under the Savings and Retirement Plan. 
 2.24 “401(k) Contributions” means a Participant’s “elective contributions,” as defined in the Treasury Regulations under Section 401(k) of the Code, made to the Savings and
Retirement Plan in which such Participant is a participant. 
 2.25 “401(k) Matchable Deferrals” means, with respect
to a Participant, such Participant’s assumed 401(k) Contributions subject to the Employer’s matching contribution under the Savings and Retirement Plan, which shall equal: 
 (a) the Matching Limit, multiplied by 
 (b) such Participant’s 401(k) Compensation. 
 A Participant’s “401(k) Matchable Deferrals” for a
Deferral Period shall be determined without regard to such Participant’s actual 401(k) Contributions for such Deferral Period. 
 2.26 “401(k) Matching Contributions” means, with respect to a Participant, the Employer’s matching contributions assumed to be made for such Participant under the Savings and Retirement Plan, determined under
the Matching Formula, based on such Participant’s 401(k) Matchable Deferrals. A Participant’s “401(k) Matching Contributions” for a Deferral Period shall be determined without regard to the Employer’s actual matching
contributions made for such Participant for such Deferral Period. 
 2.26A “Harrah’s ESSP” means the
Harrah’s Entertainment, Inc. Executive Supplemental Savings Plan, as amended. 
  

 6 

 2.26B “Harrah’s ESSP Participant” means a “Participant” in the
Harrah’s ESSP. 
 2.26C “Harrah’s ESSP First Transfer Date” means January 1, 2005. 
 2.26D “Harrah’s ESSP Second Transfer Date” means January 1, 2006. 
 2.27 “HRC” means the Human Resources Committee of the Board. 
 2.28 “Investment Fund” means the hypothetical investment fund or funds established by the EDCP Investment Committee pursuant to
Section 6.4 (Investment Direction). 
 2.29 “Matching Contribution” means an Employer contribution calculated in
accordance with Section 4.2 (Matching Contributions) of this Plan, which may, in the discretion of the Employer, be transferred to the Trust. 
 2.30 “Matching Contribution Account” means the Account maintained to record the Matching Contributions calculated in accordance with Section 4.2 (Matching Contributions) on behalf of a Participant, as adjusted
to reflect the rate of return on the hypothetical Investment Funds selected by the Participant in accordance with Section 6.4 (Investment Direction) and other credits or charges in accordance with this Plan. A Participant’s Matching
Contribution Account shall be divided into subaccounts as determined by the EDCP Committee. 
 2.31 “Matching
Formula” means, with respect to a Participant, the formula under which matching contributions in the Savings and Retirement Plan under which such Participant is eligible to make contributions are determined for such Participant,
determined without regard to any limitations on such matching contributions under Section 401(m) or 415 of the Code, or any limitation of compensation taken into account in determining such matching contributions under Section 401(a)(17)
of the Code. The “Matching Formula” for a Participant for a Deferral Period shall be determined as of the first day of such Deferral Period (or, if such Participant first becomes eligible to participate in the Plan during such Deferral
Period, the date as of which he or she first becomes eligible to participate). 
 2.32 “Matching Limit” means, with
respect to a Participant, the maximum designated percentage of 401(k) Compensation of such Participant that, if contributed by such Participant to the Savings and Retirement Plan, is eligible for a matching contribution under the Matching Formula of
the Savings and Retirement Plan under which such Participant is eligible to make contributions. 
 2.33 “Participant”
means any Employee who has been selected for participation in the Plan. The term “Participant” also shall include former Participants whose benefits under the Plan have not been fully distributed pursuant to the provisions of the Plan. The
term “Participant” shall also include: (a) with respect to Transferred Harrah’s ESSP Accounts, a Harrah’s ESSP Participant, (b) a Caesars Participant described in Section 2.5B(a), and (c) with respect to
Transferred Caesars Accounts, a Caesars Participant described in Section 2.5B(b). 
 2.34 “Participation Agreement”
means the agreement to defer Salary and/or Bonus submitted by a Participant to the EDCP Committee in accordance with Section 3.2 (Participation Agreement). The term “Participation Agreement” shall also include the agreement of a
Caesars Participant in accordance with Section 3.2(b). Such agreement shall be in written or electronic form, as determined by the EDCP Committee. 
  

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 2.35 “Plan” means this Harrah’s Entertainment, Inc. Executive Supplemental
Savings Plan II, as it may be amended from time to time. 
 2.36 “Salary” means the annual base salary earned by the
Participant from the Employer during the Deferral Period, before reduction for amounts deferred pursuant to this Plan, the Savings and Retirement Plan, any plan maintained under Section 125 of the Code or any other plan maintained by the
Company or an Employer. Salary does not include expense reimbursements, salary continuation payments except as otherwise provided by an employment agreement or separation agreement, or any form of non-cash compensation and benefits. 
 2.37 “Savings and Retirement Plan” means the Harrah’s Entertainment, Inc. Savings and Retirement Plan, as it may be amended
from time to time, the Horseshoe Gaming Holding Corp. 401(k) Plan, as it may be amended from time to time, and such other profit-sharing plans qualified under Sections 401(a) and 401(k) of the Code that are maintained by an Employer and designated
from time to time by the EDCP Committee. For purposes of the Plan, with respect to any Participant, “Savings and Retirement Plan” shall mean, for the Deferral Period or any portion thereof, the plan to which such Participant is eligible to
make elective deferral contributions during such Deferral Period or portion thereof; provided, however, for purposes of Sections 4.2(c)(1)(C) and 4.2(c)(2)(C), the “Savings and Retirement Plan” shall mean the Harrah’s
Entertainment, Inc. Savings and Retirement Plan, as it may be amended from time to time (without regard to whether the Caesars Participant is eligible to make elective deferral contributions under the Harrah’s Entertainment, Inc. Savings and
Retirement Plan). 
 2.38 “Separation from Service” of a Service Provider means his or her “separation from
service,” as defined in Treasury Regulation Section 1.409A-1(h), with respect to the Service Recipient. 
 2.39 “Service
Provider” means a Participant or any other “service provider”, as defined in Treasury Regulation Section 1.409A-1(f). 
 2.40 “Service Recipient”, with respect to any Service Provider, means the “service recipient,” as defined in Treasury Regulation Section 1.409A-1(g), as determined from time to time. As provided in
Treasury Regulation Section 1.409A-1(g), the “service recipient” shall mean the person for whom the Service Provider’s services are performed and with respect to whom the legally binding right to compensation arises, and all
persons with whom such person would be considered a single employer under Section 414(b) or 414(c) of the Code; provided, however, that, for purposes of Section 2.38, the “service recipient” shall be determined as
provided in Treasury Regulation Section 1.409A-1(h)(3). 
 2.41 “Special Distribution Election Period” means the
period designated by the EDCP Committee during which the elections under Sections 8.9 and 8.10 may be made. The “Special Distribution Election Period” shall commence not earlier than August 3, 2007 and end not later than
October 15, 2007. 
  

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 2.42 “Specified Employee” means a Service Provider who, as of the date of the
Service Provider’s Separation from Service, is a “Key Employee” of the Service Recipient any stock of which is publicly traded on an established securities market or otherwise. For purposes of this definition, a Service Provider is a
“Key Employee” if the Service Provider meets the requirements of Section 416(i)(1)(A)(i), (ii) or (iii) of the Code (applied in accordance with the Treasury Regulations thereunder and disregarding Section 416(i)(5) of
the Code) at any time during the Testing Year. If a Service Provider is a “Key Employee” (as defined above) as of a Specified Employee Identification Date, the Service Provider shall be treated as “Key Employee” for the entire 12
month period beginning on the Specified Employee Effective Date. For purposes of this Section 2.42, a Service Provider’s compensation for a Testing Year shall mean such Service Provider’s compensation, as determined under Treasury
Regulation Section 1.415(c)-2(d)(4), from the Service Recipient for such Testing Year. The “Specified Employees” shall be determined in accordance with Section 409A(a)(2)(B)(i) of the Code and Treasury Regulation
Section 1.409A-1(i). 
 2.43 “Specified Employee Effective Date” means the first day of the fourth month
following the Specified Employee Identification Date. The Specified Employee Effective Date may be changed by the HRC, in its discretion, in accordance with Treasury Regulation Section 1.409A-1(i)(4). 
 2.44 “Specified Employee Identification Date”, for purposes of Treasury Regulation Section 1.409A-1(i)(3), means
December 31. The “Specified Employee Identification Date” shall apply to all “nonqualified deferred compensation plans” (as defined in Treasury Regulation Section 1.409A-1(a)) of the Service Recipient and all affected
Service Providers. The “Specified Employee Identification Date” may be changed by the HRC, in its discretion, in accordance with Treasury Regulation Section 1.409A-1(i)(3). 
 2.45 “Testing Year” shall mean the 12 month period ending on the Specified Employee Identification Date, as determined from time
to time. 
 2.46 “Transferred Caesars Accounts” means a Caesars Participant’s Transferred Caesars Company
Contribution Account and Transferred Caesars Deferral Account. 
 2.47 “Transferred Caesars Company Contribution
Account” means the Account maintained to record the amounts transferred from the Caesars Plan, which are described in Section 4.7(d) and (e), as adjusted to reflect the rate of return on the hypothetical Investment Funds selected
by the Caesars Participant in accordance with Section 6.4 (Investment Direction) and other credits or charges in accordance with this Plan. A Caesars Participant’s Transferred Caesars Company Contribution Account shall be divided into
subaccounts as determined by the EDCP Committee. 
 2.48 “Transferred Caesars Deferral Account” means the Account
maintained to record the amounts transferred from the Caesars Plan, which are described in Section 4.7(b) and (c), as adjusted to reflect the rate of return on the hypothetical Investment Funds selected by the Caesars Participant in accordance
with Section 6.4 (Investment Direction) and other credits or charges in accordance with accordance with this Plan. A Caesars Participant’s Transferred Caesars Deferral Account shall be divided into subaccounts as determined by the EDCP
Committee. 
  

 9 

 2.49 “Transferred Harrah’s ESSP Accounts” means a Harrah’s ESSP
Participant’s Transferred Harrah’s ESSP Deferral Contribution Account and Transferred Harrah’s ESSP Matching Contribution Account. 
 2.50 “Transferred Harrah’s ESSP Deferral Contribution Account” means the Account maintained to record the amounts credited pursuant to Section 4.6, and the amounts transferred from the Harrah’s ESSP,
which are described in Section 4.8(b), as adjusted to reflect the rate of return on the hypothetical Investment Funds selected by the Harrah’s ESSP Participant in accordance with Section 6.4 (Investment Direction) and other credits or
charges in accordance with this Plan. A Harrah’s ESSP Participant’s Transferred ESSP Deferral Contribution Account shall be divided into subaccounts as determined by the EDCP Committee. 
 2.51 “Transferred Harrah’s ESSP Matching Contribution Account” means the Account maintained to record the amounts
transferred from the Harrah’s ESSP, which are described in Section 4.8(c), as adjusted to reflect the rate of return on the hypothetical Investment Funds selected by the Harrah’s ESSP Participant in accordance with Section 6.4
(Investment Direction) and other credits or charges in accordance with this Plan. A Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Matching Contribution Account shall be divided into subaccounts as determined by the EDCP
Committee. 
 2.52 “Trust” means the trust established under the Trust Agreement. 
 2.53 “Trust Agreement” means that certain trust agreement established pursuant to the Plan between the Company and the Trustee or
any trust agreement hereafter established, the provisions of which are incorporated herein by reference. 
 2.54 “Trust
Fund” means all assets of whatsoever kind or nature held from time to time by the Trustee pursuant to the Trust Agreement and forming a part of this Plan, without distinction as to income and principal and without regard to source,
i.e., Employer or Participant contributions or earnings. 
 2.55 “Trustee” means the Trustee under the Trust
Agreement. 
 2.56 “Valuation Date” means the date for valuing the hypothetical Investment Funds maintained under the
Plan, which shall be each business day of the Deferral Period. 
 2.57 “Years of Vesting Service” means the years of
service credited to an individual for vesting purposes under the Savings and Retirement Plan, determined in accordance with all applicable provisions of the Savings and Retirement Plan. 
  

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 ARTICLE THREE 
 ELIGIBILITY 
 3.1 Selection of Participants. 
 (a) General. For purposes of Title I of ERISA, the Plan is intended to be an unfunded plan of deferred compensation covering
a select group of management or highly compensated employees of an Employer, within the meaning of Sections 201(1), 301(a)(3) and 401(a)(1) of ERISA. As a result, participation in the Plan shall be limited to Employees employed in a position
classified by the Company as a Director-level position or above, and any other Employees employed by an Employer who are selected for participation in the Plan by the EDCP Committee. To further ensure compliance with the ERISA participation
requirements applicable to this Plan, the Company, in the exercise of its discretion, may exclude from participation in the Plan an individual who otherwise meets the requirements this Section 3.1(a) for any reason, or for no reason, as the
Company deems to be appropriate. 
 (b) Eligibility Date. An Employee who, as of the Effective Date, is employed
in a position classified by the Company as a Director-level position or above, or has been selected for participation in the Plan by the EDCP Committee, shall become eligible to participate in the Plan as of the Effective Date. Any other Employee
shall become eligible to participate in the Plan as of the first day of the Deferral Period on or next following the date on which such Employee is employed in a position classified by the Company as a Director level position or above (or as of such
earlier or later date as is designated by the EDCP Committee), or if such Employee is selected for participation in the Plan by the EDCP Committee, the date of participation designated by the EDCP Committee. The date as of which an Employee first
becomes eligible to participate in the Plan shall be referred to as such Employee’s “Eligibility Date.” 
 (c) Entry into Plan. 
 (1) Entry on Effective Date. An Employee who is eligible to participate in the
Plan as of the Effective Date shall enter the Plan as of the Effective Date. If such Participant’s initial Participation Agreement is completed and delivered to the EDCP Committee prior to the Effective Date, the Participant’s Deferral
Contributions shall be determined with reference to Compensation earned on or after the Effective Date. 
 (2) Entry after Effective
Date. Except as provided in paragraph (3), if a Participant becomes eligible to participate in the Plan after the Effective Date, such Participant may elect to begin Plan participation as of the first day of any subsequent Deferral Period.
Such Participant shall complete and deliver his or her Participation Agreement in accordance with the rules and procedures adopted by the EDCP Committee for such purpose before the first day of such Deferral Period, and such Participant’s
Deferral Contributions shall be determined with reference to Compensation earned on or after the first day of such Deferral Period. 
  

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 (3) Exception to Entry Requirement. If a Participant first becomes eligible to participate
in the Plan after the Effective Date, such Participant may elect to begin Plan participation during a Deferral Period, if such Participant elects to begin Plan participation within thirty (30) days after his or her Eligibility Date in
accordance with Treasury Regulation Section 1.409A-2(a)(7). Such Participant shall complete and deliver his or her Participation Agreement in accordance with the rules and procedures adopted by the EDCP Committee for such purpose within thirty
(30) days after his or her Eligibility Date, and such Participation Agreement shall be effective as of such date following completion and delivery as is determined by the EDCP Committee. Such Participation Agreement shall apply only with
respect to such Participant’s Salary earned on or after the first day of the first full payroll period in the Deferral Period following the effective date of such Participation Agreement, and that portion of the Bonus earned during the portion
of the Deferral Period commencing on the effective date of such Participation Agreement. For purposes of this paragraph (3), the portion of such Participant’s Bonus earned during the portion of the Deferral Period commencing on the effective
date of such Deferral Period shall equal the Bonus earned with respect to the Deferral Period, multiplied by a fraction, the numerator of which is the number of days remaining in the performance period with respect to such Bonus after the effective
date of the Participation Agreement, and the denominator of which is the total number of days in the performance period with respect to such Bonus, as provided in Treasury Regulation Section 1.409A-2(a)(7)(i). 
 (4) Exception for Administrative Error. 
 (A) Notwithstanding Section 3.1(c)(1), in the event that an Employee who is eligible to participate in the Plan as of the Effective Date was not afforded an opportunity to submit a Participation Agreement
prior to the Effective Date due to administrative or clerical error, such Employee may complete and deliver a Participation Agreement to the EDCP Committee on or before March 15, 2005, and such Employee shall enter the Plan as of the date of
the delivery of such Participation Agreement to the EDCP Committee. The Participant’s Deferral Contributions shall be determined with reference to Compensation earned on or after the Effective Date to the extent payable after the date of such
Participant’s entry into the Plan. 
 (B) Notwithstanding Section 3.1(c)(1), in the event that an Employee
who is eligible to participate in the Plan as of the Effective Date failed to provide a confirmed electronic Participation Agreement prior to the Effective Date, such Employee may complete and deliver a Participation Agreement to the EDCP Committee,
in written or electronic form, on or before March 15, 2005, and such Employee shall enter the Plan as of the date of the delivery of such Participation Agreement to the EDCP Committee. The Participant’s Deferral Contributions shall be
determined with reference to Compensation earned on or after the Effective Date to the extent payable after the date of such Participant’s entry into the Plan. 
 (d) No Waiting Periods. A Participant need not complete any particular period of service in order to be eligible to make
Deferral Contributions or to receive Discretionary Contributions. Except as otherwise provided in Section 4.2(c), in order to receive Matching Contributions for a Deferral Period, however, a Participant also must be eligible to receive matching
contributions under the Savings and Retirement Plan for that Deferral Period, as determined in accordance with the provisions of the Savings and Retirement Plan. 
  

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 (e) Participants in the Caesars Plan. 
 (1) Eligibility Date. An Employee who is a “Participant” in the Caesars Plan as of the first day of the first payroll period for
such Employee beginning on or after July 1, 2005 shall become eligible to participate in the Plan as of the first day of such payroll period. Such an Employee shall be referred to as “Caesars Participant.” 
 (2) 2005 Contributions for a Caesars Participant. As provided in Section 4.5, a Caesars Participant shall be eligible to participate
in the Plan with respect to the 2005 Deferral Period solely for purposes of the crediting of: 
 (A) the “Base
Compensation” (as defined in the Caesars Plan) deferred by such Caesars Participant under the Caesars Plan for any payroll period for such Participant commencing on or after July 1, 2005 and before January 1, 2006, 
 (B) the “Bonus Compensation” (as defined in the Caesars Plan) earned for services performed during 2005, and otherwise
payable on or after July 1, 2005 and deferred by such Participant under the Caesars Plan, 
 (C) the “Base
Compensation Company Contribution Amounts” (as defined in the Caesars Plan) with respect to any payroll period for such Caesars Participant commencing on or after July 1, 2005 and before January 1, 2006, and 
 (D) the “Bonus Compensation Company Contribution Amounts” (as defined in the Caesars Plan), with respect to such Caesars
Participant’s “Bonus Compensation” (as defined in the Caesars Plan) earned for services performed during 2005, and otherwise payable on or after July 1, 2005 and deferred by such Caesars Participant under the Caesars Plan.

 (3) Other Deferrals and Matching Contributions Prohibited. A Caesars Participant shall not be eligible to make Deferral
Contributions under Section 4.1 with respect to the 2005 Deferral Period, and shall not be eligible to receive Matching Contribution credits under Section 4.2 with respect to the 2005 Deferral Period. A Caesars Participant shall be
eligible to receive Discretionary Contribution credits (if any) under Section 4.4 with respect to the 2005 Deferral Period, subject to such terms and conditions as are prescribed by the Employer. 
 (4) Eligibility for Subsequent Years. A Caesars Participant shall be eligible to make Deferral Contributions under Section 4.1, and
shall be eligible for Matching Contribution credits and Discretionary Contribution credits under Sections 4.2 and 4.4, with respect to the 2006 Deferral Period and subsequent Deferral Periods, subject to the terms and conditions thereof, if such
Caesars Participant satisfies the eligibility requirements of subsection (b). 
  

 13 

 3.2 Participation Agreement. 
 (a) Content of Participation Agreement. 
 (1) Authorization of Deferral Contributions. A Participant shall complete and deliver a Participation Agreement evidencing his or her election to participate in the Plan with respect to a Deferral
Period, in the manner and at such time as the EDCP Committee shall require. Except as otherwise provided in Section 3.1(c)(3) (Selection of Participants – Entry into Plan – Exception to Entry Requirement), a Participant must complete
and deliver his or her Participation Agreement with respect to the Deferral Period prior to such Deferral Period. In the Participation Agreement with respect to a Deferral Period, the Participant shall select the amount or rate of his or her
Deferral Contributions and authorize the reduction of his or her Compensation in an amount equal to his or her Deferral Contributions. A Participant’s Participation Agreement shall set forth such other information as the EDCP Committee shall
require. Except as provided in Section 4.3(c)(2) (Change or Suspension of Contributions – Bonus Deferral Contribution), the Participant’s selection of the amount or rate of his or her Deferral Contributions and authorization of the
reduction of Compensation with respect to a Deferral Period shall become irrevocable as provided by the EDCP Committee (and in any event not later than the last day of the next preceding Deferral Period); provided, however, that, in
the case of a Participant described in Section 3.1(c)(3), such Participant’s selection of the amount or rate of his or her Deferral Contributions and authorization of the reductions of Compensation shall be irrevocable when made.

 (2) Distribution Elections. A Participant shall make a Separation from Service Election, or a Distribution Year Election,
in his or her Participation Agreement in accordance with Section 8.1 (Distribution Elections). Except as provided in Subsection 8.2 (Change of Distribution Year Election), the Participant’s Separation from Service Election or Distribution
Year Election, as applicable, with respect to a Deferral Period shall become irrevocable as provided by the EDCP Committee (and in any event not later than the last day of the next preceding Deferral Period); provided, however, that,
in the case of a Participant described in Section 3.1(c)(3), such Participant’s Separation from Service Election or Distribution Year Election, as applicable, shall be irrevocable when made. 
 (3) Subsequent Deferral Periods. The Participation Agreement made by the Participant for a Deferral Period shall apply to such Deferral
Period, and shall apply to each subsequent Deferral Period, except to the extent such Participant completes and delivers a new Participation Agreement prior to the first day of such subsequent Deferral Period, as follows: 
 (A) such Participant’s election to defer such Participant’s Salary and Bonus under Sections 4.1 (Participant
Contributions) shall be effective for such subsequent Deferral Period, 
 (B) in the event such Participant made a
Separation from Service Election, such Participant’s Separation from Service Election (including the form of distribution thereunder) shall be effective for such subsequent Deferral Period, and 
  

 14 

 (C) in the event such Participant made a Distribution Year Election, such
Distribution Year Election shall not be effective for such subsequent Deferral Period, and such Participant shall be deemed to have made a Separation from Service Election (and elected distribution in the form of a lump sum payment) for such
subsequent Deferral Period. 
 A Participant may, but shall not be required to, complete and deliver a new Participation Agreement for each subsequent
Deferral Period. Except as provided in Section 4.3(c)(2) (Change or Suspension of Contributions – Bonus Deferral Contributions), the Participant’s new Participation Agreement with respect to a Deferral Period, including the
Participant’s selection of the amount or rate of his or her Deferral Contributions and authorization of the reduction of Compensation with respect to such Deferral Period, and the Participant’s Separation from Service Election or
Distribution Year Election, as applicable, shall become irrevocable as provided by the EDCP Committee (and in any event not later than the last day of the next preceding Deferral Period). 
 (b) Initial Participant Agreement for Caesars Participants. 
 (1) Distribution Elections. A Caesars Participant shall complete and deliver a Participation Agreement evidencing his or her distribution election with respect to the amounts credited to his or her
Accounts under Section 4.5. A Caesars Participant must complete and deliver his or her Participation Agreement with respect to the 2005 Deferral Period not later than June 30, 2005. A Caesars Participant shall make a Separation from
Service Election, or a Distribution Year Election, in his or her Participation Agreement in accordance with Section 8.1 (Distribution Elections). A Caesars Participant’s Participation Agreement shall set forth such other information as the
EDCP Committee shall require. 
 (2) Other Deferrals and Matching Contributions Prohibited. Notwithstanding Sections 4.1 and
4.2, a Caesars Participant shall not be eligible to elect to defer such Participant’s Salary or Bonus earned during the 2005 Deferral Period, and the Employer shall not make Matching Contributions on behalf of a Caesars Participant with respect
to the 2005 Deferral Period. 
 3.3 Discontinuance of Participation. Once an Employee is designated as a Participant, he or she
shall continue as such for all future Deferral Periods unless and until: (a) the Participant has a Separation from Service and receives a full distribution of his Accounts, or (b) is no longer categorized as an individual entitled to
participate in the Plan pursuant to Section 3.1 (Selection of Participants) above. If a Participant’s participation is discontinued, the Participant shall no longer be eligible to make Deferral Contributions and shall no longer be eligible
for Matching Contributions or Discretionary Contributions. The Participant shall not be entitled to receive a distribution, however, until the occurrence of one of the events listed in Article Five (Withdrawals upon Unforeseeable Emergency) or
Article Eight (Distribution Elections; Payment of Benefits). 
 3.4 Reemployment. If a former Employee is rehired by an
Employer and is eligible to participate in the Plan, he or she shall reenter the Plan on the first day of any Deferral Period commencing after the date he or she is rehired in accordance with the provisions of Section 3.1 

  

 15 

 
(Selection of Participants). Such Employee’s reentry into the Plan shall have no impact on any distributions that have been made or are being made in
accordance with Article Eight (Distribution Elections; Payment of Benefits). Any amounts previously forfeited from the Participant’s Accounts pursuant to Section 7.1 (Vesting of Benefits) shall not be restored or reinstated upon the
Participant’s subsequent reentry into the Plan. 
 3.5 Adoption by Affiliates. Any Affiliate of the Company may adopt this
Plan with the approval of the EDCP Committee. Any Affiliate that permits an individual to make Deferral Contributions pursuant to Section 4.1 (Participant Contributions) shall be deemed to have adopted the Plan without any further action. The
EDCP Committee’s acceptance of such Deferral Contributions shall evidence the consent of the EDCP Committee to the adoption of the Plan by the Affiliate. Notwithstanding the foregoing, at the request of the EDCP Committee, the Affiliate shall
evidence its adoption of the Plan by an appropriate resolution of its Board of Directors or in such other manner as may be authorized by the EDCP Committee. By adopting this Plan, the Affiliate shall be deemed to have agreed to make the
contributions called for by Article Four (Contributions), agreed to comply with all of the other terms and provisions of this Plan, delegated to the EDCP Committee the power and responsibility to administer this Plan with respect to the
Affiliate’s employees, and delegated to the Company the full power to amend or terminate this Plan with respect to the Affiliate’s Employees. 
 ARTICLE FOUR 
 CONTRIBUTIONS 
 4.1 Participant Contributions. 
 (a) Salary Deferral Contributions. Subject to subsection (d), a Participant may elect to defer any whole percentage of such Participant’s Salary earned by him or her during the Deferral Period up to a maximum of
seventy-five percent (75%), or such other maximum amount as may be prescribed by the EDCP Committee as the Salary Deferral Contribution limit for all Participants or pursuant to subsection (c). 
 (b) Bonus Deferral Contributions. A Participant may elect to defer any whole percentage of any Bonus earned by him or her during the
Deferral Period (which may be paid during the applicable Deferral Period or after the close of the applicable Deferral Period), up to a maximum of ninety percent (90%), or such other maximum amount as may be prescribed by the EDCP Committee as the
Bonus Deferral Contribution limit for all Participants or pursuant to subsection (c). 
 (c) Excess Deferral Contributions. The
EDCP Committee may, in its discretion, permit an individual Participant to make Deferral Contributions in excess of the limitations set forth in or established in accordance with this Section 4.1, or place additional restrictions on an
individual Participant’s Deferral Contributions, prior to the first day of the Deferral Period for which such permission or additional restriction is to be effective. All Deferral Contributions under this Plan shall be made in accordance with
such rules and procedures regarding Participant deferrals as may be promulgated by the EDCP Committee from time to time. All Participant elections are subject to the timing requirements set forth in Section 3.2 (Participation Agreement).

  

 16 

 (d) Mandatory Salary Deferral Contributions. If, with respect to a Deferral Period, a
Participant is required under the terms of such Participant’s employment agreement with the Employer, as in effect as the last day of the next preceding Deferral Period, to defer that portion of such Participant’s Salary in excess of one
million dollars ($1,000,000) (or such other amount as specified in such agreement), the portion of such Participant’s Salary earned during such Deferral Period in excess of such amount shall be deferred pursuant to this subsection (d). The
deferral of such Participant’s Salary with respect to such Deferral Period pursuant to the terms of such employment agreement shall become irrevocable as of the last day of the next preceding Deferral Period. The EDCP Committee shall determine
the amount required to be deferred from such Participant’s Salary for each pay period during the Deferral Period. Such Participant may elect to defer the remainder of his or her Salary in accordance with subsection (a). 
 4.2 Matching Contributions. 
 (a) Eligible Participants. Subject to subsection (c), each Employer shall make a Matching Contribution on behalf of each of its Participants who has elected to make Salary Deferral Contributions during the Deferral Period
under Section 4.1 (Participant Contributions), and is eligible to receive a matching contribution under the Savings and Retirement Plan, in accordance with subsection (b). No Matching Contributions shall be made with respect to Bonus Deferral
Contributions. The Matching Contribution shall be credited to each eligible Participant’s Matching Contribution Account as of the year-end Valuation Date or date of termination. 
 (b) Matching Contribution Formula. The Matching Contribution for each eligible Participant shall equal the excess (if any) of: 

(1) the matching contributions that would have been made for such Participant under the Savings and Retirement Plan, determined
under the Matching Formula, based on the sum of 
 (A) the Participant’s 401(k) Matchable Deferrals for the plan
year of the Savings and Retirement Plan coinciding with the Deferral Period, plus 
 (B) the Participant’s Salary
Deferral Contributions in the Deferral Period, 
 up to the Matching Limit as applied to the Participant’s Salary, less 
 (2) the Participant’s 401(k) Matching Contributions for the plan year of the Savings and Retirement Plan coinciding with such
Deferral Period. 
 (c) Special Matching Contributions for Caesars Participants. 
 (1) Caesars Participants Eligible for Matching Contributions under the Caesars Plan. If a Caesars Participant was eligible to receive
“Base Compensation Company Contribution Amounts” (as defined in the Caesars Plan) and “Bonus Compensation Company Contribution Amounts” (as defined in the Caesars Plan) under the Caesars Plan 

  

 17 

 
effective as of June 13, 2005, an Employer shall make special Matching Contributions on behalf of each such Caesars Participant who has elected to make
Deferral Contributions during the 2006 Deferral Period under Section 4.1 (Participant Contributions), in accordance with this paragraph (1). Such special Matching Contributions shall be in lieu of the Matching Contributions that otherwise would
have been made by the Employer for such Caesars Participant under subsections (a) and (b) for the 2006 Deferral Period. The special Matching Contributions under subparagraph (A) shall be credited to an eligible Caesars
Participant’s Caesars Company Contribution Account as soon as practicable after the last day of each payroll period for such Salary, the special Matching Contribution under subparagraph (B) shall be credited to an eligible Caesars
Participant’s Caesars Company Contribution Account as soon as practicable after the day the Bonus otherwise would be payable, and the special Matching Contribution under subparagraph (C) shall be credited to an eligible Caesars
Participant’s Matching Contribution Account as of the year-end Valuation Date or date of termination. The special Matching Contributions with respect to a Caesars Participant for the 2006 Deferral Period shall be determined as follows:

 (A) with respect to each payroll period for such Caesars Participant commencing on or after January 1, 2006
and before June 13, 2006, such Employer shall make a special Matching Contribution on behalf of such Caesars Participant in an amount equal to 50% of the Caesars Participant’s Salary Deferral Contributions for such payroll period,
disregarding any such Salary Deferral Contributions in excess of 10% of such Caesars Participant’s Salary for such payroll period, 
 (B) with respect to each Bonus of such Caesars Participant earned for services performed in 2006, and payable on or after January 1, 2006 and before June 13, 2006, such Employer shall make a special
Matching Contribution on behalf of such Caesars Participant in an amount equal to 50% of the Caesars Participant’s Bonus Deferral Contributions, disregarding any such Bonus Deferral Contributions in excess of 10% of such Caesars
Participant’s Bonus, and 
 (C) with respect to the payroll periods for such Caesars Participant commencing on or
after June 13, 2006 and before January 1, 2007, such Employer shall make a special Matching Contribution on behalf of such Caesars Participant equal to the excess (if any) of: 
 (I) the matching contributions that would have been made for such Caesars Participant under the Savings and Retirement Plan
(assuming such Caesars Participant had been a participant therein), determined under the Matching Formula, based on the sum of 
 (i) the Caesars Participant’s 401(k) Matchable Deferrals for the plan year of the Savings and Retirement Plan coinciding with the 2006 Deferral Period, multiplied by the Caesars Fraction (as defined in paragraph (3)), plus

  

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 (ii) the total of the Caesars Participant’s Salary Deferral Contributions
that are deferred for the payroll periods of the Caesars Participant commencing on or after June 13, 2006 and before January 1, 2007, 
 up to the Matching Limit as applied to the Caesars Participant’s total Salary for the payroll periods commencing on or after June 13, 2006 and before January 1, 2007, less 
 (II) the Caesars Participant’s 401(k) Matching Contributions for the plan year of the Savings and Retirement Plan coinciding
with the 2006 Deferral Period, multiplied by the Caesars Fraction. 
 (2) Caesars Participants Not Eligible for Matching Contributions
under the Caesars Plan. If a Caesars Participant was not eligible to receive “Base Compensation Company Contribution Amounts” (as defined in the Caesars Plan) and “Bonus Compensation Company Contribution Amounts” (as
defined in the Caesars Plan) effective as of June 13, 2005, an Employer shall make special Matching Contributions on behalf of each such Caesars Participant who has elected to make Deferral Contributions during the 2006 Deferral Period under
Section 4.1 (Participant Contributions), in accordance with this paragraph (2). Such special Matching Contributions shall be in lieu of the Matching Contributions that otherwise would have been made by the Employer for such Caesars Participant
under subsections (a) and (b) for the 2006 Deferral Period. The special Matching Contribution under subparagraph (C) shall be credited to an eligible Caesars Participant’s Matching Contribution Account as of the year-end
Valuation Date or date of termination. The special Matching Contributions with respect to a Caesars Participant for the 2006 Deferral Period shall be determined as follows: 
 (A) No special Matching Contributions shall be made for such Caesars Participant’s Salary Deferral Contributions with respect
to each payroll period for such Caesars Participant commencing on or after January 1, 2006 and before June 13, 2006, 
 (B) No special Matching Contributions shall be made for such Caesars Participant’s Bonus earned for services performed in 2006, and 
 (C) with respect to the payroll periods for such Caesars Participant commencing on or after June 13, 2006 and before January 1, 2007, such Employer shall make a special Matching Contribution on
behalf of such Caesars Participant equal to the excess (if any) of: 
 (I) the matching contributions that would have
been made for such Caesars Participant under the Savings and Retirement Plan (assuming such Caesars Participant had been a participant therein), determined under the Matching Formula, based on the sum of 
  

 19 

 (i) the Caesars Participant’s 401(k) Matchable Deferrals for the plan year
of the Savings and Retirement Plan coinciding with the 2006 Deferral Period, multiplied by the Caesars Fraction (as defined in paragraph (3)), plus 
 (ii) the total of the Caesars Participant’s Salary Deferral Contributions that are deferred for the payroll periods of the Caesars Participant commencing on or after June 13, 2006 and before
January 1, 2007, 
 up to the Matching Limit as applied to the Caesars Participant’s total Salary for the payroll periods commencing
on or after June 13, 2006 and before January 1, 2007, less 
 (II) the Caesars Participant’s 401(k)
Matching Contributions for the plan year of the Savings and Retirement Plan coinciding with the 2006 Deferral Period, multiplied by the Caesars Fraction. 
 (3) Caesars Fraction. For purposes of subparagraph (1)(C) or (2)(C), as applicable, the “Caesars Fraction” of a Caesars Participant shall mean the fraction, (A) the numerator of which
is the number of days during the period commencing June 13, 2006 and ending on December 31, 2006 (or, if earlier, the date of the termination of such Caesars Participant’s employment with the Employers and all Affiliates), and
(B) the denominator is 365 days. 
 (4) Caesars Participants Eligible for Special Matching Contributions. The EDCP
Committee shall maintain a list of each Caesars Participant who is eligible for the special Matching Contributions under paragraph (1) or (2). 
 4.3 Change or Suspension of Contributions. 
 (a) Rules. Any and all changes or suspensions of Deferral
Contributions made pursuant to this Section 4.3 shall be made in accordance with rules promulgated by the EDCP Committee. 
 (b)
Salary Deferral Contributions. 
 (1) A Participant may change the amount or percentage of his or her Salary
Deferral Contributions under Section 4.1(a) (Participant Contributions – Salary Deferral Contributions), or suspend his or her Salary Deferral Contributions under Section 4.1(a), prior to the beginning of any Deferral Period. Any
change in the amount or percentage of the Salary Deferral Contributions to be made from any Salary, or suspension of Salary Deferral Contributions, shall be effective with respect to Salary earned on or after the first day of the first full pay
period of the next following Deferral Period. The Participant’s change in the amount or percentage of his or her Salary Deferral Contributions, or suspension of his or her Salary Deferral Contributions, with respect to a Deferral Period shall
become irrevocable as provided by the EDCP Committee (and in any event not later than the last day of the next preceding Deferral Period). 
  

 20 

 (2) A Participant may not change or suspend the amount of his or her Salary
Deferral Contributions for a Deferral Period under Section 4.1(d) (Participant Contributions – Mandatory Salary Deferral Contributions). 
 (c) Bonus Deferral Contributions. 
 (1) A Participant may change the amount or percentage of
his or her Bonus Deferral Contributions under Section 4.1(b) (Participant Contributions – Bonus Deferral Contributions), or suspend his or her Bonus Deferral Contributions under Section 4.1(b), prior to the beginning of any Deferral
Period. Any change in the amount or percentage of the Bonus Deferral Contributions to be made from any Bonus shall be effective with respect to Bonus earned on or after the first day of the next following Deferral Period. The Participant’s
change in the amount or percentage of his or her Bonus Deferral Contributions, or suspension of his or her Bonus Deferral Contributions, with respect to such Deferral Period shall become irrevocable as provided by the EDCP Committee (and in any
event not later than the last day of the next preceding Deferral Period). 
 (2) Notwithstanding paragraph (1), the
EDCP Committee, in its discretion, may permit a Participant to change the amount or percentage of his or her Bonus Deferral Contributions under Section 4.1(b), or suspend his or her Bonus Deferral Contributions under Section 4.1(b), to the
extent such Participant’s Bonus constitutes performance-based compensation based on services performed over a period of at least twelve (12) consecutive months (within the meaning of Section 409A(a)(4)(B)(iii) of the Code and Treasury
Regulation Section 1.409A-1(e)), not later than six months before the end of the performance period with respect to such Bonus, in accordance with Section 409A(a)(4)(B)(iii) of the Code and Treasury Regulation Section 1.409A-2(a)(8);
provided, that the Participant performs services continuously from the later of the beginning of the performance period with respect to such Bonus or the date the performance criteria are established through the change or suspension of Bonus
Deferral Contributions is made, and provided, further, that in no event may the change or suspension be made after such Bonus (or any portion thereof) is readily ascertainable. The Participant’s change in the amount or percentage
of his or her Bonus Deferral Contributions, or suspension of his or her Bonus Deferral Contributions, with respect to a Deferral Period under this paragraph (2) shall become irrevocable as provided by the EDCP Committee (and in any event not
later than six months before the end of the performance period of such Bonus). 
 (d) Future Participation. A
Participant’s election to make no Deferral Contributions to the Plan during one or more Deferral Periods, or to suspend his or her Deferral Contributions, shall not affect his or her continued participation in the Plan or his or her ability to
resume his Deferral Contributions to the Plan in a future Deferral Period. 
  

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 4.4 Discretionary Contributions. With the approval of the EDCP Committee, each Employer, in
its sole discretion, may make a Discretionary Contribution on behalf of such Participants as it designates. The amount of the Discretionary Contribution shall be determined by the Employer in its sole discretion, and approved by the EDCP Committee.
All Discretionary Contributions shall be credited to the Participant’s Discretionary Contribution Account as of the time designated by the Employer or the EDCP Committee. Discretionary Contributions may be subject to additional requirements,
including vesting and withdrawal limitations (which shall be in addition to the withdrawal and distribution limitations of Articles Five (Withdrawals upon Unforeseeable Emergency) and Eight (Distribution Elections; Payment of Benefits), as
established by the Company or the EDCP Committee. Any Discretionary Contributions made under this Section 4.4 shall be made in accordance with the requirements of Sections 409A(a)(2), (3) and (4) of the Code and the Treasury
Regulations thereunder. 
 4.5 2005 Contributions under the Caesars Plan. 
 (a) Caesars Base Compensation Deferral Contributions. A Caesars Participant’s “Base Compensation” (as defined in the Caesars
Plan) deferred by such Caesars Participant for any payroll period of such Caesars Participant commencing on or after July 1, 2005 and before January 1, 2006 in accordance with Section 3.1(a) of the Caesars Plan shall be credited to
such Caesars Participant’s Deferral Contribution Account (and shall not be credited to such Caesars Participant’s “Deferral Account” (as defined in the Caesars Plan) or the subaccounts thereunder). 
 (b) Caesars Bonus Deferral Contributions. A Caesars Participant’s “Bonus Compensation” (as defined in the Caesars Plan)
earned for services performed during 2005, and otherwise payable on or after July 1, 2005, and deferred in accordance with Section 3.2 of the Caesars Plan shall be credited to such Caesars Participant’s Deferral Contribution Account
(and shall not be credited to such Caesars Participant’s “Deferral Account” (as defined in the Caesars Plan) or the subaccounts thereunder). 
 (c) Caesars Matching Contributions. 
 (1) Base Compensation Company
Contribution Amount. A Caesars Participant’s “Base Compensation Company Contribution Amount” (as defined in the Caesars Plan), if any, for any payroll period for such Caesars Participant commencing on or after July 1,
2005 and before January 1, 2006, determined in accordance with Section 4.2 of the Caesars Plan, shall be credited to such Caesars Participant’s Caesars Company Contribution Account (and shall not be credited to such Caesars
Participant’s “Company Contribution Account” (as defined in the Caesars Plan) or the subaccounts thereunder). 
 (2) Bonus Compensation Company Contribution Amount. A Caesars Participant’s “Bonus Compensation Company Contribution Amount” (as defined in the Caesars Plan), if any, with respect to such Caesars
Participant’s “Bonus Compensation” (as defined in the Caesars Plan) earned for services performed during 2005, and otherwise payable after July 1, 2005, and deferred under the Caesars Plan, determined in accordance with
Section 4.2 of the Caesars Plan, shall be credited to such 

  

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Caesars Participant’s Caesars Company Contribution Account (and shall not be credited to such Caesars Participant’s “Company Contribution
Account” (as defined in the Caesars Plan) or the subaccounts thereunder). 
 4.6 Second Enhancement Contributions. If a
Harrah’s ESSP Participant becomes entitled to an “Enhancement Contribution” (as defined in the Harrah’s ESSP) under Section 4.7(b) of the Harrah’s ESSP on or after the Harrah’s ESSP Second Transfer Date, such
“Enhancement Contribution” shall be credited to such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Deferral Contribution Account under this Plan (and shall not be credited to such Harrah’s ESSP
Participant’s “Deferral Contribution Account” (as defined in the Harrah’s ESSP) under the Harrah’s ESSP or the subaccounts thereunder). 
 4.7 Transfers from Caesars Plan. 
 (a) (1) Amounts to be
Transferred. Effective as of the Caesars Plan Transfer Date, in the case of a Caesars Participant, the amounts credited to such Caesars Participant’s “Accounts” (as defined in the Caesars Plan) that are described in this
Section 4.7 shall be transferred from such “Accounts” to such Caesars Participant’s Transferred Caesars Deferral Account and Transferred Caesars Company Contribution Account, as provided in subsections (b), (c), (d) and (e).
The amounts described in this Section 4.7 include compensation deferred by such Caesars Participant under the Caesars Plan during 2005, and matching contribution credits under the Caesars Plan related thereto, and amounts credited to such
Caesars Participant’s “Accounts” under the Caesars Plan as of December 31, 2004 that were not earned and vested as of December 31, 2004, in each case as adjusted for any earnings credited thereto or any losses debited
therefrom under the Caesars Plan. The amounts transferred pursuant to Section 4.7 shall be debited from such Caesars Participant’s “Accounts” under the Caesars Plan, and shall be credited to such Caesars Participant’s
Transferred Caesars Deferral Account and Transferred Caesars Company Contribution Account, as applicable, effective as of the Caesars Plan Transfer Date. 
 (2) [Reserved]. 
 (b) Caesars Base Compensation Deferral Contributions.
The Caesars Participant’s “Base Compensation” (as defined in the Caesars Plan) deferred by such Caesars Participant for any payroll period of such Caesars Participant commencing on or after January 1, 2005 and commencing before
July 1, 2005 in accordance with Section 3.1(a) of the Caesars Plan, as adjusted for any earnings credited thereto and any losses debited therefrom under the Caesars Plan, shall be transferred from such Caesars Participant’s
“Deferral Account” (as defined in the Caesars Plan) to such Caesars Participant’s Transferred Caesars Deferral Account, effective as of the Caesars Plan Transfer Date. 
 (c) Caesars Bonus Deferral Contributions. The Caesars Participant’s “Bonus Compensation” (as defined in the
Caesars Plan) otherwise payable on or after January 1, 2005 and payable before July 1, 2005 and deferred by such Caesars Participant in accordance with Section 3.2(a) of the Caesars Plan, as adjusted for any 

  

 23 

 
earnings credited thereto and any losses debited therefrom under the Caesars Plan, shall be transferred from such Caesars Participant’s “Deferral
Account” (as defined in the Caesars Plan) to such Caesars Participant’s Transferred Caesars Deferral Account, effective as of the Caesars Plan Transfer Date. 
 (d) Caesars Matching Contributions. The Caesars Participant’s “Base Compensation Company Contribution Amount”
(as defined in the Caesars Plan) for any payroll period for such Caesars Participant commencing on or after January 1, 2005 and commencing before July 1, 2005, determined in accordance with Section 4.2(b) of the Caesars Plan, as
adjusted for any earnings credited thereto and any losses debited therefrom under the Caesars Plan, and a Caesars Participant’s “Bonus Compensation Company Contribution Amount” (as defined in the Caesars Plan) with respect to such
Caesars Participant’s “Bonus Compensation” (as defined in the Caesars Plan) otherwise payable after January 1, 2005 and deferred under the Caesars Plan, determined in accordance with Section 4.2(c) of the Caesars Plan, as
adjusted for any earnings credited thereto and any losses debited therefrom under the Caesars Plan, shall be transferred from such Caesars Participant’s “Company Contribution Account” (as defined in the Caesars Plan) to such Caesars
Participant’s Transferred Caesars Company Contribution Account, effective as of the Caesars Plan Transfer Date. 
 (e)
Non-Grandfathered Company Contribution Account Balances. The portion of the amount credited to the Caesars Participant’s “Company Contribution Account” (as defined in the Caesars Plan), determined as of December 31,
2004, that was not earned and vested for purposes of Section 409A of the Code, as of December 31, 2004, adjusted for any earnings credited thereto and losses debited therefrom under the Caesars Plan, shall be transferred from such Caesars
Participant’s “Company Contribution Account” (as defined in the Caesars Plan) to such Caesars Participant’s Transferred Caesars Company Contribution Account, effective as of the Caesars Plan Transfer Date. 
 4.8 Transfers from Harrah’s ESSP. 
 (a) (1) First Amounts to be Transferred. Effective as of the Harrah’s ESSP First Transfer Date, in the case of a Harrah’s ESSP Participant, the amount credited to such Harrah’s ESSP
Participant’s “Matching Contribution Account” (as defined in the Harrah’s ESSP) that is described in subsection (b) shall be transferred from such “Matching Contribution Account” to such Harrah’s ESSP
Participant’s Transferred Harrah’s ESSP Matching Account, as provided in subsection (b). 
 (2) Second
Amounts to be Transferred. Effective as of the Harrah’s ESSP Second Transfer Date, in the case of a Harrah’s ESSP Participant, the amount credited to such Harrah’s ESSP Participant’s “Deferral Contribution
Account” (as defined in the Harrah’s ESSP) that is described in subsection (c) shall be transferred from such “Deferral Contribution Account” to such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP
Deferral Contribution Account, as provided in subsection (c). 
  

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 (3) Transferred Amounts. The amounts described in this Section 4.8
include amounts credited to such Harrah’s ESSP Participant’s “Accounts” under the Harrah’s ESSP as of December 31, 2004 that were not earned and vested as of December 31, 2004, as adjusted for any earnings credited
thereto or any losses debited therefrom under the Harrah’s ESSP, and amounts credited under the Harrah’s ESSP after December 31, 2004, as adjusted for any earnings credited thereto or any losses debited therefrom under the
Harrah’s ESSP. The amounts transferred pursuant to this Section 4.8 shall be debited from such Harrah’s ESSP Participant’s “Accounts” under the Harrah’s ESSP, and shall be credited to such Harrah’s ESSP
Participant’s Transferred Harrah’s ESSP Accounts, effective as of Harrah’s ESSP First Transfer Date, or the Harrah’s ESSP Second Transfer Date, as applicable. 
 (4) [Reserved]. 
 (b) Harrah’s ESSP Matching Contributions. In the event that all or any portion of a Harrah’s ESSP Participant’s “Matching Contribution Account” (as defined in the Harrah’s
ESSP) was not fully vested as of December 31, 2004 under the Harrah’s ESSP, the portion of the total balance in such Harrah’s ESSP Participant’s “Matching Contribution Account” (as defined in the Harrah’s ESSP)
that was not vested as of December 31, 2004 under the Harrah’s ESSP, as adjusted for any earnings credited thereto or any losses debited therefrom under the Harrah’s ESSP, shall be transferred from such Harrah’s ESSP
Participant’s “Matching Contribution Account” (as defined in the Harrah’s ESSP) to such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Matching Contribution Account, effective as of the Harrah’s ESSP
First Transfer Date. The portion of the balance in such Harrah’s ESSP Participant’s “Matching Contribution Account” that was vested as of December 31, 2004, as adjusted for any earnings credited thereto or any losses debited
therefrom under the Harrah’s ESSP, shall not be transferred and shall remain credited to such Harrah’s ESSP Participant’s “Matching Contribution Account.” 
 (c) Harrah’s ESSP Bonus Deferral Contributions. The Harrah’s ESSP Participant’s “Bonus” (as defined
in the Harrah’s ESSP) earned by such Harrah’s ESSP Participant during the 2004 “Deferral Period” (as defined in the Harrah’s ESSP), and otherwise payable after December 31, 2004, and deferred by such Harrah’s ESSP
Participant in accordance with Section 4.1(b) of the Harrah’s ESSP, as adjusted for any earnings credited thereto or any losses debited therefrom under the Harrah’s ESSP, shall be transferred from such Harrah’s ESSP
Participant’s “Deferral Contribution Account” (as defined in the Harrah’s ESSP) to such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Deferral Contribution Account, effective as of the Harrah’s ESSP
Second Transfer Date. 
  

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 ARTICLE FIVE 
 WITHDRAWALS UPON UNFORESEEABLE EMERGENCY 
 5.1 Unforeseeable Emergency
Withdrawals. 
 (a) General. 
 (1) A Participant may elect to receive a withdrawal from his or her Accounts upon the occurrence of an Unforeseeable Emergency. Such Participant
may elect to receive a withdrawal by completing and delivering an election with the EDCP Committee in accordance with the uniform procedures promulgated by the EDCP Committee. 
 (2) The election to receive a withdrawal upon the occurrence of an Unforeseeable Emergency by a Participant who is entitled to a distribution
under Article Eight (Distribution Elections; Payment of Benefits) shall override the distribution election in effect for such Participant under Article Eight with respect to the amount to be withdrawn, both as to form of payment and timing of
payment. If installment payments to such Participant have begun at the time an election for a withdrawal upon the occurrence of an Unforeseeable Emergency is made, the election shall apply only with respect to the unpaid balance of such
Participant’s Accounts. 
 (3) The amount to be distributed to a Participant who elects a withdrawal upon the occurrence of an
Unforeseeable Emergency shall not exceed the amounts reasonably necessary to satisfy such Unforeseeable Emergency (and shall include amounts necessary to pay federal, state, local or foreign taxes and penalties reasonably anticipated as a result of
the withdrawal), after taking into account the extent to which such Unforeseeable Emergency is or may be relieved through reimbursement or compensation through insurance or otherwise, by liquidation of the Participant’s assets (to the extent
the liquidation of such assets would not itself cause severe financial hardship), or by cessation of Deferral Contributions, as determined by the EDCP Committee in accordance with Section 409A(a)(2)(B)(ii)(II) of the Code and the Treasury
Regulation Section 1.409A-3(i)(3)(ii). 
 (4) For purposes of this Section 5.1, “Unforeseeable Emergency” with
respect to a Participant shall mean a severe financial hardship to the Participant resulting from an illness or accident of the Participant, or the Participant’s spouse, Beneficiary or dependent (as defined in Section 152 of the Code,
without regard to Sections 152(b)(1), (b)(2) and (d)(1)(B) of the Code) of the Participant, loss of the Participant’s property due to casualty, or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond
the control of the Participant, as determined by the EDCP Committee in accordance with Section 409A(a)(2)(B)(ii)(I) of the Code and the Treasury Regulation Section 1.409A-3(i)(3)(i). 
 (5) For purposes of determining the amount to be distributed to such Participant, the Participant’s Accounts shall be valued as of the
Valuation Date immediately preceding the date the withdrawal election is approved by the EDCP Committee. The amount to be distributed to a Participant who elects a withdrawal upon the occurrence of an Unforeseeable Emergency shall not exceed such
Participant’s vested interest in his or her Accounts. The Participant’s vested interest in his or her Matching Contribution Account and Discretionary Contribution Account shall be determined as of the Valuation Date immediately preceding
the date the withdrawal election is approved by the EDCP Committee. 
  

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 (6) The amount to be distributed to the Participant pursuant to such Participant’s election
to receive a withdrawal upon the occurrence of Unforeseeable Emergency shall be paid in a lump sum payment within sixty (60) days following the approval of the Participant’s withdrawal election by the EDCP Committee. 
 (b) Cancellation of Deferral Contributions. If a Participant receives a withdrawal upon the occurrence of Unforeseeable Emergency, the
Participant’s Deferral Contributions to the Plan shall be cancelled for the remainder of the Deferral Period during which the withdrawal is distributed to the Participant, to the extent required under Section 409A(a)(2)(B)(ii) of the Code
and the Treasury Regulation Section 1.409A-3(i)(3)(ii), in accordance with Treasury Regulation Section 1.409A-3(j)(4)(viii). Upon expiration of the cancellation period described in the preceding sentence, the Participant shall be permitted
to submit a new Participation Agreement in accordance with Section 3.2 (Participation Agreement) and to begin making Deferral Contributions with respect to Compensation earned on or after the first day of the first payroll period of the next
following Deferral Period. 
 5.2 Account Adjustments. A Participant’s withdrawal upon the occurrence of Unforeseeable
Emergency shall be charged on a pro rata basis to the Participant’s vested interests in the subaccounts in such Participant’s Accounts. 
 5.3 Cancellation of Participation in the Event of Hardship Withdrawal. If a Participant receives a hardship distribution pursuant to Treasury Regulation Section 1.401(k)-1(d)(3) under the Savings and Retirement Plan, if
required under the terms of the Savings and Retirement Plan, the Participant’s Deferral Contributions to the Plan shall be cancelled for the remainder of the Deferral Period during which the hardship distribution is distributed to the
Participant, to the extent permitted under Section 409A of the Code and the Treasury Regulation Section 1.409A-3(j)(4)(viii). Upon expiration of the cancellation period described in the preceding sentence, the Participant shall be
permitted to submit a new Participation Agreement in accordance with Section 3.2 (Participation Agreement) and to begin making Deferral Contributions with respect to Compensation earned on or after the first day of the first payroll period of
the next following Deferral Period. 
 ARTICLE SIX 
 CREDITING OF CONTRIBUTIONS AND INCOME 
 6.1 Account Allocations. All Deferral
Contributions shall be credited to the Participant’s Deferral Contribution Account. All Matching Contributions shall be credited to the Participant’s Matching Contribution Account, and all Discretionary Contributions shall be credited to
the Participant’s Discretionary Contribution Account. With respect to a Caesars Participant, all deferral contributions under Sections 4.5(a) and (b) shall be credited to the Caesars Participant’s Deferral Contribution Account, and
all matching contributions under Section 4.5(c) shall be credited to such Caesars Participant’s Caesars Company Contribution Account, and all special Matching Contributions under Section 4.2(c) shall be credited to such Caesars
Participant’s Caesars Company Contribution Account or Matching Contribution 

  

 27 

 
Account, as provided therein. All credits and charges to all Participants’ Accounts shall be done in accordance with the policies and procedures of the
EDCP Committee. All transfers to payments from and charges against an Account shall be charged against the Account as of the Valuation Date on which the transaction occurs. The Accounts are bookkeeping accounts only, and the EDCP Committee is not in
any way obligated to segregate assets for the benefit of any Participant. 
 6.2 Subaccounts. The EDCP Committee may divide any
Account into such subaccounts as it deems necessary and desirable. 
 6.3 Hypothetical Investment Funds. The EDCP Investment
Committee shall establish a series of hypothetical Investment Funds for use pursuant to this Article Six. 
 6.4 Investment
Direction. A Participant shall direct the hypothetical investment of his Deferral Contribution Account, Matching Contribution Account, and Discretionary Contribution Account (and, in the case of a Harrah’s ESSP Participant, his or her
Transferred Harrah’s ESSP Accounts (if any), and, in the case of a Caesars Participant, his or her Caesars Company Contribution Account and Transferred Caesars Accounts (if any)) among the Investment Funds in the manner (including, but not
limited to, writing, electronic, internet, intranet, voice response or telephonic) established by the EDCP Committee. The Participant’s Deferral Contribution Account, Matching Contribution Account, and Discretionary Contribution Account (and
Transferred Harrah’s ESSP Accounts (if any), and Caesars Company Contribution Account and Transferred Caesars Accounts (if any)) shall not be invested in the Investment Funds, but the value of the Participant’s Accounts shall be measured
by the performance of the Investment Funds selected. Any and all changes to a Participant’s Investment Fund allocation shall be made in accordance with the uniform procedures of the EDCP Committee, which shall permit changes in Investment Fund
allocations on a quarterly or more frequent basis. Notwithstanding the foregoing provisions of this Section 6.4, the EDCP Investment Committee may retain the overriding discretion regarding the Participant’s selection of Investment Funds
under this Section 6.4. If a Participant fails to direct the hypothetical investment of his or her Accounts in the manner established by the EDCP Committee, the Participant shall be deemed to have selected the default hypothetical Investment
Fund(s) selected by the EDCP Investment Committee for such purpose, in the discretion of the EDCP Committee and in accordance with its uniform policies and procedures. 
 6.5 Rate of Return. A Participant’s Accounts shall be adjusted on each Valuation Date to reflect investment gains and losses as if the Accounts were invested in the hypothetical Investment Funds
selected by the Participant in accordance with Section 6.4 (Investment Direction) and charged with any and all reasonable expenses related to the administration of the Plan including, but not limited to, the reasonable expenses of carrying out
the hypothetical investment directions related to each Account. The earnings and losses allocated to any Account shall be allocated among the subaccounts of that Account in the same manner. The earnings and losses determined by the EDCP Investment
Committee in good faith and in its discretion pursuant to this Article Six shall be binding and conclusive on the Participant, the Participant’s Beneficiary and all parties claiming through them. 
  

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 6.6 Application to Beneficiaries. The provisions of this Article Six shall also apply to
the Beneficiaries of a deceased Participant. 
 6.7 EDCP Investment Committee. 
 (a) Membership. The EDCP Investment Committee shall be appointed by action of the HRC. The EDCP Investment Committee members
shall serve without compensation but shall be reimbursed for all expenses by the Company. The EDCP Investment Committee shall conduct itself in accordance with the provisions of this Section. The members of the EDCP Investment Committee may resign
with thirty (30) days notice in writing to the Company and may be removed immediately at any time by written notice from the HRC. The EDCP Investment Committee may have duties with respect to other plans of the Company that are similar or
identical to its duties under the Plan. 
 (b) Appointment of Agents. The EDCP Investment Committee may appoint
such other agents, who need not be members of the EDCP Investment Committee, as it may deem necessary for the effective performance of its duties, whether ministerial or discretionary, as the EDCP Investment Committee may deem expedient or
appropriate. The compensation of any agents who are not employees of the Company shall be fixed by the committee within any limitations set by the HRC. 
 (c) Majority Vote. On all matters, questions and decisions, the action of the EDCP Investment Committee shall be determined by a majority vote of its members. They may meet informally or take any
ordinary action without the necessity of meeting as a group. All instruments executed by the EDCP Investment Committee shall be executed by a majority of its members or by any member of the EDCP Investment Committee designated to act on its behalf.

 (d) Allocation of Responsibilities. The EDCP Investment Committee may allocate responsibilities among its
members or designate other persons to act on its behalf. Any allocation or designation, however, must be set forth in writing and must be retained in the permanent records of the EDCP Investment Committee. 
 (e) Indemnification. The Company shall indemnify and hold harmless the members of the EDCP Investment Committee against any
and all claims, loss, damage, expense or liability arising from any action or failure to act with respect to this Plan on account of such member’s service on the EDCP Investment Committee, except in the case of gross negligence or willful
misconduct. 
 ARTICLE SEVEN 
 VESTING 
 7.1 Vesting of Accounts. 
 (a) Deferral Contributions. Each Participant shall at all times have a fully vested interest in his or her Deferral
Contribution Account, his or her Transferred Caesars Deferral Account (if any), and his or her Transferred Harrah’s ESSP Deferral Contribution Account (if any), and a Participant’s rights and interests therein shall not be forfeitable for
any reason. 
  

 29 

 (b) Matching Contributions. 
 (1) Full Vesting. Each Participant shall have a fully vested interest in his or her Matching Contribution Account on and
after the first to occur of the following events: 
 (A) the Participant’s attainment of age 60; 
 (B) the Participant’s date of death; 
 (C) the Participant’s Disability; 
 (D) a Change of Control; 
 (E) termination of the Plan; or 
 (F) the completion of five Years of Vesting
Service. 
 (2) Vesting Schedule. If a Participant terminates employment with an Employer at a time when the
Participant does not have a fully vested interest in his or her Matching Contribution Account, the Participant’s vested interest shall be determined in accordance with the applicable vesting schedule for matching contributions in effect under
the Savings and Retirement Plan in which such Participant was last eligible to make 401(k) Contributions. 
 (3)
Forfeiture. A Participant’s vested interest in his or her Matching Contribution Account shall be determined as of the Valuation Date immediately preceding his or her termination of employment with the Company and all Affiliates. Any
portion of a Participant’s Matching Contribution Account which is not vested shall be forfeited in the first Deferral Period in which his or her termination of employment with the Company and all Affiliates occurs. 
 (c) Discretionary Contributions. Except as provided by the Employer or EDCP Committee at the time a Discretionary Contribution is made,
each Participant shall vest in his or her Discretionary Contribution Account in the same manner he or she vests in his or her Matching Contribution Account. A Participant’s vested interest in his or her Discretionary Contribution Account shall
be determined as of the Valuation Date immediately preceding his or her termination of employment with the Company and all Affiliates. Any portion of a Participant’s Discretionary Contribution Account which is not vested shall be forfeited in
the first Deferral Period in which his or her termination of employment with the Company and all Affiliates occurs. 
 (d) Caesars
Company Contribution Accounts and Transferred Caesars Company Contribution Accounts. Each Caesars Participant shall have a vested interest in his or her Caesars Company Contribution Account and Transferred Caesars Company Contribution
Account, which is determined as follows: 
  

 30 

 (1) Vesting of Caesars Company Contribution Accounts. 
 (A) Vesting Schedule. A Caesars Participant shall vest in the “Base Compensation Company Contribution Amount”
under Section 4.5(c)(1), the “Bonus Compensation Company Contribution Amount” under Section 4.5(c)(2) and the special Matching Contributions under Sections 4.2(c)(1)(A) and (B) (if any) (collectively, the “Caesars
Company Contribution Amount”) that are credited to the Caesars Participant’s Caesars Company Contribution Account in a Plan Year (plus investment gains and losses thereon under Article Six), upon completion of the applicable vesting period
for such portion of the Caesars Company Contribution Account. The vesting period for the Caesars Participant’s Caesars Company Contribution Account shall commence with the Plan Year in which the Caesars Company Contribution Amount is credited
under Section 4.5(c) or Sections 4.2(c)(1)(A) and (B), as applicable, with the Caesars Participant vesting in: (I) 33 1/3% of the Caesars Company Contribution Amount upon being credited with a “Year of Vesting Service” (as
defined in the Caesars Plan) for the Plan Year for which such Caesars Company Contribution Amount is credited, (II) 33 1/3% of the Caesars Company Contribution Amount upon being credited with a “Year of Vesting Service” for the immediately
following Plan Year, and (III) 33 1/3% of the Caesars Company Contribution Amount upon being credited with a “Year of Vesting Service” for the next following Plan Year. 
 (B) Accelerated Vesting. Notwithstanding paragraph (1), a Caesars Participant’s Caesars Company Contribution Account
shall become fully vested should: (I) the Caesars Participant die while employed by the Company or an Affiliate, (II) the Caesars Participant become “Disabled” (as defined in the Caesars Plan) while employed by the Company or an
Affiliate, or (III) there occur a “Change of Control.” 
 (C) Forfeiture. 
 (I) If a Caesars Participant who is not fully vested in his or her Caesars Company Contribution Account retires on or after
attaining age 55 and becomes employed by a “Competitor” during the Six Month Period, the portion of such Caesars Participant’s Caesars Company Contribution Account which is not vested shall immediately be forever forfeited and the
Company and the Affiliates shall have no obligation to the Caesars Participant (or his or her Beneficiary) with respect to such forfeited amount. 
 (II) Subject to subparagraph (B) and clause (I) of this subparagraph, if a Caesars Participant who is not fully vested in his or her Caesars Company Contribution Account receives or commences to
receive the distribution of the amount credited to his or her Caesars Company 

  

 31 

 
Contribution Account, the portion of such Caesars Participant’s Caesars Company Contribution Account which is not vested shall immediately be forever
forfeited and the Company and the Affiliates shall have no obligation to the Caesars Participant (or his or her Beneficiary) with respect to such forfeited amount. 
 (D) [Reserved] 
 (2) Vesting of Transferred Caesars Company Contribution Account. Each Caesars Participant shall at all times have a full vested interest in his or her Transferred Caesars Company Contribution Account, and a
Caesars Participant’s rights and interests therein shall not be forfeitable for any reason. 
 (e) Transferred Harrah’s ESSP
Matching Contribution Account. Each Harrah’s ESSP Participant shall have a vested interest in his or her Transferred Harrah’s ESSP Matching Contribution Account, which is determined as follows: 
 (1) Full Vesting. Each Participant shall have a fully vested interest in his Transferred Harrah’s ESSP Matching
Contribution Account on and after the first to occur of the following events: 
 (A) the Participant’s attainment
of age 60; 
 (B) the Participant’s date of death; 
 (C) the Participant’s Disability; 
 (D) a Change of Control; 
 (E) termination of the Plan; or 
 (F) the completion of five Years of Vesting
Service. 
 (2) Vesting Schedule. If a Harrah’s ESSP Participant terminates service with an Employer at a
time when the Harrah’s ESSP Participant does not have a fully vested interest in his Transferred Harrah’s ESSP Matching Contribution Account, the Harrah’s ESSP Participant’s vested interest shall be determined as follows:
(A) the excess, if any, of (I) the percentage determined in accordance with the applicable vesting schedule for matching contributions in effect under the Savings and Retirement Plan, over (II) the Transfer Vested Percentage, divided by
(B) the Transfer Unvested Percentage. As of the Harrah’s ESSP First Transfer Date, the vesting schedule under the Savings and Retirement Plan is as follows: 
  

 32 

			
	 Completed Years
 of Vesting Service
	  	Percentage Vested
	 Less than 1
	  	0%
	 1 but less than 2
	  	20%
	 2 but less than 3
	  	40%
	 3 but less than 4
	  	60%
	 4 but less than 5
	  	80%
	 5 or more
	  	100%

 For purposes of this paragraph (2), a Harrah’s ESSP Participant’s “Transfer Vested
Percentage” shall mean his or her vested interest percentage in his or her “Matching Contribution Account” (as defined in the Harrah’s ESSP), determined as of December 31, 2004, and a Harrah’s ESSP Participant’s
“Transfer Unvested Percentage” shall mean 100%, less his or her “Transfer Vested Percentage”. 
 (3)
A Harrah’s ESSP Participant’s vested interest in his Transferred Harrah’s ESSP Matching Contribution Account shall be determined as of the Valuation Date immediately preceding the first distribution to the Harrah’s ESSP
Participant from his Transferred Harrah’s ESSP Matching Contribution Account following his Separation from Service. Any portion of a Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Matching Contribution Account which is not
vested shall be forfeited in the first Deferral Period in which the Harrah’s ESSP Participant or his Beneficiary receives a distribution from this Plan under Article Eight. 
 7.2 Changes in Vesting Schedule. In the event that an amendment to this Plan or the Savings and Retirement Plan directly or indirectly
changes the vesting provisions of Section 7.1 (Vesting of Benefits), the vested percentage for each Participant in his or her benefit accumulated to the date when the amendment is adopted shall not be reduced as a result of the amendment.

 ARTICLE EIGHT 
 DISTRIBUTION ELECTIONS; PAYMENT OF BENEFITS 
 8.1 Distribution Elections. A Participant shall make, in
his or her Participation Agreement with respect to a Deferral Period, either: a Separation from Service Election under subsection (b), or a Distribution Year Election under subsection (c). Such Separation from Service Election or Distribution Year
Election shall apply to the distribution of the subaccounts of such Participant’s Account to which his or her Deferral Contributions, Matching Contributions and Discretionary Contributions for such Deferral Period are credited. In the case of a
Caesars Participant, a special Separation from Service Election shall apply with respect to the distribution of such Caesars Participant’s Transferred Caesars Accounts, as provided in subsection (e). In the case of a Harrah’s ESSP
Participant, a special Separation from Service Election shall apply with respect to the distribution of such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Accounts, as provided in subsection (f). 
 (a) Subaccounts. A Participant’s Deferral Contributions for a Deferral Period (and, in the case of a Caesars Participant, such Caesars
Participant’s deferral contributions 

  

 33 

 
under Sections 4.5(a) and (b) for the Deferral Period) shall be credited to the subaccount for such Deferral Period under such Participant’s
Deferral Contribution Account. Such Participant’s Matching Contributions for a Deferral Period (if any) shall be credited to the subaccount for such Deferral Period under such Participant’s Matching Contribution Account. Such
Participant’s Discretionary Contributions for a Deferral Period (if any) shall be credited to the subaccount for such Deferral Period under such Participant’s Discretionary Contribution Account. Such Participant’s Separation from
Service Election or Distribution Year Election for such Deferral Period shall apply to distributions from the subaccounts of such Participant’s Accounts for such Deferral Period. 
 (b) Separation from Service Election. Subject to Section 8.3 (Time of Payment), a Participant’s Separation from Service Election
with respect to a Deferral Period shall provide for the distribution of the subaccounts of such Participant’s Accounts for such Deferral Period upon such Participant’s Separation from Service. 
 (1) Form of Distribution. Such Participant may select the form of distribution for purposes of distributions from the
subaccounts of such Participant’s Accounts for such Deferral Period. Such Participant may select distribution in the form of a lump sum payment, or monthly installment payments over a period of years. If such Participant selects distribution in
the form of monthly installment payments, such Participant shall designate the period of years (which shall be not less than one and not more than fifteen (15)) over which such monthly installment payments shall be made. If such Participant
fails to select a form of distribution for purposes of distributions from the subaccounts of such Participant’s Accounts for a Deferral Period, such distributions shall be made in a lump sum payment. 
 (2) Prohibition on Change of Separation from Service Election. Such Participant may not change his or her Separation from
Service Election with respect to a Deferral Period, or the form of distribution of the subaccounts of such Participant’s Accounts for such Deferral Period. As provided in Section 3.2 and subsection (d), such Participant may elect a new
Separation from Service Election with respect to a future Deferral Period in accordance with this Section 8.1. 
 (c) Distribution
Year Election. Subject to Section 8.2 (Changes of Distribution Year Election) and Section 8.3 (Time of Payment), a Participant’s Distribution Year Election with respect to a Deferral Period shall provide for the distribution
of the subaccounts of such Participant’s Accounts for such Deferral Period upon the earlier of: the first day of the Distribution Year (as selected by the Participant), or the Participant’s Separation from Service. 
 (1) Distribution Year. Such Participant shall select the Distribution Year for purposes of distributions from the
subaccounts of such Participant’s Accounts for a Deferral Period. The Distribution Year shall be not earlier than the second calendar year following the Deferral Period, and shall be not later than the twentieth calendar year following the
Deferral Period. 
 (2) Form of Distribution. The distribution of the subaccounts of such Participant’s
Accounts for such Deferral Period shall be made in a lump sum payment. 
  

 34 

 (3) Change to Distribution Year Election. A Participant may change such
Participant’s Distribution Year Election with respect to a Deferral Period in accordance with Section 8.2. 
 (d) Separate
Elections. A Participant may make a separate Separation of Service Election or Distribution Year Election with respect to each Deferral Period. 
 (e) Distribution of Transferred Caesars Accounts. A Caesars Participant’s Transferred Caesars Accounts shall be distributed upon such Participant’s Separation from Service in accordance with
this subsection (e), and shall not be distributed in accordance with such Caesars Participant’s Separation from Service Election with respect to any Deferral Period. Such distribution shall be made commencing upon such Caesars
Participant’s Separation from Service, except as otherwise provided under Section 8.3(b). Such Caesars Participant may not make a Distribution Year Election with respect to his or her Transferred Caesars Accounts. 
 (1) Form of Distribution. Such Caesars Participant’s Transferred Caesars Accounts shall be distributed in the form of
distribution elected by such Caesars Participant for the distribution of his or her “Accounts” (as defined in the Caesars Plan), in accordance with the Caesars Plan, as in effect as of the Caesars Plan Transfer Date. Such distribution form
shall be a lump sum payment, or installment payments over a period of five, ten or fifteen years. If such Caesars Participant’s Transferred Caesars Accounts are to be distributed in the form of installment payments, such distribution shall be
made in the form of monthly installment payments; provided, however, that, if such Caesars Participant’s Transferred Caesars Accounts are to be distributed commencing in 2006, the first installment payment shall be determined on the basis of
annual installment payments, as provided in accordance with the Caesars Plan (and in accordance with the transition relief under Q/A 19(c) of Internal Revenue Service Notice 2005-1), and monthly installment payments from such Caesars
Participant’s Transferred Caesars Accounts shall commence on January 1, 2007. If such Caesars Participant has failed to select a form of distribution for purposes of the distribution of his or her “Accounts” (as defined in the
Caesars Plan), in accordance with the Caesars Plan, as of the Caesars Plan Transfer Date, such Caesars Participant’s Transferred Caesars Accounts shall be distributed in the form of a lump sum payment. The distribution of such Caesars
Participant’s Transferred Caesars Accounts shall be made in accordance with Sections 8.3 and 8.4. 
 (2)
Prohibition on Change of Separation from Service Election. Such Caesars Participant may not change his or her special Separation from Service Election applicable to the distribution of his or her Transferred Caesars Accounts, or the form
of distribution of such Transferred Caesars Accounts. 
 (f) Distribution of Transferred Harrah’s ESSP Accounts. A
Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Accounts shall be distributed upon such Participant’s Separation from Service in accordance with this subsection (f), and shall not be distributed in accordance with such
Harrah’s ESSP Participant’s Separation from Service Election with respect to any Deferral Period. Such distribution shall be made commencing upon such Harrah’s ESSP Participant’s Separation from Service, except as otherwise
provided under Section 8.3(b). Such Harrah’s ESSP Participant may not make a Distribution Year Election with respect to his or her Transferred Harrah’s ESSP Accounts. 
  

 35 

 (1) Form of Distribution. Such Harrah’s ESSP Participant’s
Transferred Harrah’s ESSP Matching Contribution Account shall be distributed in the form of distribution elected by such Harrah’s ESSP Participant for the distribution of his or her “Accounts” (as defined in the Harrah’s
ESSP), in accordance with the Harrah’s ESSP, as in effect as of the Harrah’s ESSP First Transfer Date. The distribution of such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Deferral Contribution Account shall be
made in accordance with Sections 8.3 and 8.4. 
 (2) Form of Distribution. Such Harrah’s ESSP
Participant’s Transferred Harrah’s ESSP Deferral Contribution Account shall be distributed in the form of distribution elected by such Harrah’s ESSP Participant for the distribution of his or her “Accounts” (as defined in
the Harrah’s ESSP), in accordance with the Harrah’s ESSP, as in effect as of the Harrah’s ESSP Second Transfer Date. The distribution of such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Deferral Contribution
Account shall be made in accordance with Sections 8.3 and 8.4. 
 (3) Prohibition on Change of Separation from Service
Election. Such Harrah’s ESSP Participant may not change his or her special Separation from Service Election applicable to the distribution of his or her Transferred Harrah’s ESSP Accounts, or the form of distribution of such
Transferred Harrah’s ESSP Accounts. 
 8.2 Changes of Distribution Year Election. 
 (a) Election to Change Distribution Selections. A Participant may change a Distribution Year Election with respect to a Deferral Period (as
set forth in such Participant’s Participation Agreement in effect for such Deferral Period), following the commencement of such Deferral Period, in accordance with this Section 8.2. Such Participant shall complete and deliver an election
to change his or her Distribution Year Election with respect to a Deferral Period in accordance with the rules and procedures adopted by the EDCP Committee for such purpose. The Participant’s election to change a Distribution Year Election with
respect to a Deferral Period under this subsection (a) shall be irrevocable when made. 
 (b) Change of Distribution Year.

 (1) Such Participant may make a new Distribution Year Election with respect to a Deferral Period, subject to the requirements of
subsection (d), for purposes of such distributions of the subaccounts of such Participant’s Accounts for such Deferral Period by electing a new Distribution Year that is not less than five years later than the Distribution Year previously
selected by such Participant under the prior Distribution Year Election with respect to such Deferral Period; provided, however, that the new Distribution Year shall not be later than the twentieth calendar year following such Deferral
Period. 
 (2) In the event a Participant makes a new Distribution Year Election with respect to a Deferral Period, and such new
Distribution Year Election becomes effective, the distribution of the subaccounts of Participant’s Accounts for such Deferral Period shall be made upon the earlier of: (A) the first day of the new Distribution Year, or (B) such
Participant’s Separation from Service. 
  

 36 

 (c) Additional Changes. A Participant may make subsequent new Distribution Year Elections
with respect to a Deferral Period, subject to the requirements of paragraph (b)(1) and subsection (d), and the distribution of the subaccounts of such Participant’s Accounts for such Deferral Period shall be made upon the earlier of:
(A) the first day of the new Distribution Year (selected by the Participant), or (B) such Participant’s Separation from Service. The Participant’s election to change a Distribution Year Election with respect to a Deferral Period
under this subsection (c) shall be irrevocable when made. 
 (d) Limitations on Distribution Changes. A Participant may
not change his or her Separation from Service Election with respect to a Deferral Period. A Participant may change his or her Distribution Year Election applicable to the subaccounts of such Participant’s Accounts for a Deferral Period in
accordance with subsection (b) or (c), subject to this subsection (d). A Participant’s new Distribution Year Election shall be subject to the following limitations: 
 (1) The Participant’s election of a new Distribution Year Election applicable to the subaccounts of such Participant’s
Accounts for a Deferral Period shall not take effect until at least twelve (12) months after the new Distribution Year Election is made in accordance with Section 409A(a)(4)(C)(i) of the Code and the Treasury Regulation
Section 1.409A-2(b)(1)(i). If the distribution from the subaccounts of such Participant’s Accounts for such Deferral Period is made before the new Distribution Year Election becomes effective, the new Distribution Year Election shall not
thereafter become effective, and the distribution from the subaccounts of such Participant’s Accounts for such Deferral Period shall be made in accordance with the Distribution Year Election, as in effect prior to the new Distribution Year
Election. 
 (2) The Participant’s election of a new Distribution Year, in accordance with subsection (b) or
(c) for the subaccounts of such Participant’s Accounts for a Deferral Period shall provide that each payment with respect to which such new Distribution Year Election is made be deferred for a period of not less than five years from the
date such payment would otherwise have been made, as determined in accordance with Section 409A(a)(4)(C)(ii) of the Code and the Treasury Regulation Section 1.409A-2(b)(1)(ii). 
 (3) The Participant’s election of a new Distribution Year Election in accordance with subsection (b) or (c) for the
subaccounts of such Participant’s Accounts for a Deferral Period shall not be made less than twelve (12) months prior to the date of the first scheduled distribution payment under the Distribution Year Election in effect for the
subaccounts of such Participant’s Accounts for such Deferral Period in accordance with Section 409A(a)(4)(C)(iii) of the Code and the Treasury Regulation Section 1.409A-2(b)(1)(iii). 
 (e) Compliance with Section 409A of the Code. Any change to a Participant’s Distribution Year Election shall be made in
accordance with Section 409A(a)(4)(C) of the Code and the Treasury Regulation Section 1.409A-2(b). 
  

 37 

 8.3 Time of Payment. 
 (a) A Participant’s Accounts shall be distributed in accordance with the Separation from Service Election or Distribution Year Election for
the subaccounts of such Participant’s Accounts for each Deferral Period; provided, however, that, in the case of a Caesars Participant, such Caesars Participant’s Transferred Caesars Accounts shall be distributed in accordance with
the special Separation from Service Election, as provided under Section 8.1(e); and, provided, further, that in the case of a Harrah’s ESSP Participant, such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP
Accounts shall be distributed in accordance with the special Separation from Service Election, as provided under Section 8.1(f). 
 (b) The distributions from the subaccounts of a Participant’s Accounts for a Deferral Period shall be made or commence upon the earliest of: 
 (1) the first day of the Distribution Year (if any) selected by such Participant (in the case of subaccounts subject to such
Participant’s Distribution Year Election), or 
 (2) the Participant’s Separation from Service; or

 (3) the Participant’s death; 
 provided, however, that, in the case of a Participant who is a Specified Employee as of the date of such Participant’s Separation from Service, the distributions of the subaccounts of such
Participant’s Accounts for such Deferral Period upon such Participant’s Separation from Service shall be made or commence on the date which is six months after the date of such Participant’s Separation from Service (or, if earlier,
the date of such Participant’s death) in accordance with Section 409A(a)(2)(B)(i) of the Code and the Treasury Regulation Section 1.409A-3(i)(2). 
 (c) Subject to subsection (d), if the subaccounts of a Participant’s Accounts for any Deferral Period are to be distributed in the form of monthly installment payments, and such Participant is a Specified
Employee as of the date of such Participant’s Separation from Service, the monthly installment payments that otherwise would be made to such Participant prior to the date which is six months after the date of such Participant’s Separation
from Service (or, if earlier, the date of such Participant’s death) shall be accumulated in the subaccounts of such Participant’s Accounts for such Deferral Period and paid commencing on such date in accordance with
Section 409A(a)(2)(B)(i) of the Code and Treasury Regulation Section 1.409A-3(i)(2), as adjusted to reflect the rate of return on the hypothetical Investment Funds selected by the Participant in accordance with Section 6.4. The
subaccounts of such Participant’s Accounts for such Deferral Period shall be distributed in installment payments, commencing on the date which is six months after the date of such Participant’s Separation from Service (or, if earlier, the
date of such Participant’s death), over the installment payment period designated under the Separation from Service Election for the subaccounts of such Participant’s Accounts for the Deferral Period. 
 (d) In the case of a Participant who was a Specified Employee as of the date of such Participant’s Separation from Service, and whose monthly
installment payments commenced during 2005 in accordance with Section 8.3 of the Plan, monthly installment 

  

 38 

 
payments shall be paid during 2005 in accordance with the transitional relief under Internal Revenue Service Notice 2005 Q/A 20, and such monthly
installments shall be suspended effective as of January 1, 2006 and until the date which is six months after the date of such Participant’s Separation from Service in accordance with Section 409A(a)(2)(B)(i) of the Code and the
Treasury Regulations thereunder and recommenced after the date which was six months after the date of such Participant’s Separation from Service (or, if earlier, the date of such Participant’s death). Any monthly installment payments
subject to such suspension shall be accumulated and paid after such date in accordance with Section 409A(a)(2)(B)(i) of the Code and the Treasury Regulations thereunder, as adjusted to reflect the rate of return on the hypothetical Investment
Funds selected by the Participant in accordance with Section 6.4. The subaccounts of such Participant’s Accounts for such Deferral Period shall be distributed in installment payments, commencing after the date which is six months after the
date of such Participant’s Separation from Service (or, if earlier, the date of such Participant’s death), over the installment payment period designated under the Separation from Service Election for the subaccounts of such
Participant’s Accounts for the Deferral Period. 
 8.4 Form of Payments. 
 (a) Separation from Service Election Payments. In the event a Participant made a Separation from Service Election with
respect to a Deferral Period, the distribution from the subaccounts in such Participant’s Accounts for such Deferral Period shall be made in a lump sum payment, or in monthly installment payments, in accordance with Section 8.1
(Distribution Elections); provided, however, that, in the case of a Caesars Participant, such Caesars Participant’s Transferred Caesars Accounts shall be distributed in accordance with the special Separation from Service Election, as
provided under Section 8.1(e); and, provided, further, that in the case of a Harrah’s ESSP Participant, such Harrah’s ESSP Participant’s Transferred Harrah’s ESSP Accounts shall be distributed in accordance with the
special Separation from Service Election, as provided under Section 8.1(f). 
 (b) Distribution Year Election
Payment. In the event a Participant made a Distribution Year Election with respect to a Deferral Period, the distribution from the subaccounts in such Participant’s Accounts for such Deferral Period shall be made to such Participant in
a lump sum payment. Such lump sum payment shall be made not later than sixty (60) days after the date determined under Section 8.3(b). 
 (c) Payments upon Death. 
 (1) In the event of a Participant’s death prior to
such Participant’s Separation from Service, the distributions from the subaccounts of such Participant’s Accounts for all Deferral Periods shall be made to his or her Beneficiary in a lump sum payment. Such lump sum payment shall be made
not later than ninety (90) days after the date determined under Section 8.3(b). 
 (2) In the event of a Participant’s
death after his or her Separation from Service, the distributions from the subaccounts of such Participant’s Accounts shall be made or continue to be made to his or her Beneficiary in accordance with the Participant’s 

  

 39 

 
Separation from Service Election or Distribution Year Election in accordance with Sections 8.1 and 8.2, and distribution payments shall be made to the
Beneficiary in the same form as such distribution payments would have been made to such Participant. 
 (d) Installment
Payments. 
 (1) In the event a Participant makes a Separation from
Service Election, and elects distribution in the form of installment payments, the amount of each monthly installment in any calendar year for the distribution of the subaccounts in a Participant’s Accounts for a Deferral Period shall be
calculated as follows. The amount of the monthly installment shall be determined before the first installment is paid and on each January 1st in all
subsequent calendar years; provided, however, that in the case of installment payments that are suspended under Section 8.3(d), the amount of the monthly installment shall be determined on the date as of which the installment payments
recommence under Section 8.3(d). The amount of each monthly installment for such calendar year shall be determined by dividing: (A) the number of remaining monthly installments into (B) the Participant’s vested balance in the
subaccounts in the Participant’s Accounts for such Deferral Period, determined as of the last Valuation Date of the prior month. A Participant’s last installment payment shall be adjusted as needed to reflect investment gains or losses. If
the total of the vested balance in the Participant’s Accounts (and the vested balances in the Participant’s accounts in all other agreements, methods, programs or other arrangements with respect to which deferrals of compensation are
treated as having been deferred under a single nonqualified deferred compensation plan under Treasury Regulation Section 1.409A-1(c)(2)), determined as of any date that is on or after January 1, 2008 and on or after monthly installment
payments commence, is not greater than the applicable dollar amount under Section 402(g)(1)(B) of the Code, such vested balance in the Participant’s Accounts (and the vested balances in such other agreements, methods, programs and
arrangements) shall be paid to the Participant in a lump sum payment not later than sixty (60) days after such date in accordance with Treasury Regulation Section 1.409A-3(j)(4)(v). 
 (2) If installment payments are made, the provisions of Sections 6.3, 6.4 and 6.5 shall continue to apply to the unpaid interest in the relevant
subaccounts. 
 (3) In the event that a Caesars Participant’s special Separation from Service Election, determined under
Section 8.1(e), provides for the distribution of such Caesars Participant’s Transferred Caesars Accounts in the form of installment payments, the amount of each monthly installment payment for any calendar year for the distribution of such
Caesars Participant’s Transferred Caesars Accounts shall be calculated by applying paragraph (1) separately with respect to such Caesars Participant’s Transferred Caesars Accounts. 
 8.5 Beneficiary Designations. 
 (a) General. In the event of the death of the Participant, the Participant’s vested interest in his or her Accounts shall be paid to the Participant’s Beneficiary as described in
Section 8.4(c). Each Participant shall have the right to designate, in the manner specified by the EDCP Committee, a Beneficiary or Beneficiaries to receive his benefits hereunder in the event of the Participant’s death. 
  

 40 

 (b) Spousal Consent Requirements. If the Participant is married at the time
the Beneficiary designation is filed, the Participant must designate his spouse as the Beneficiary of at least 50% of the Participant’s Accounts or provide the spouse’s consent to the designation of a Beneficiary other than the spouse. If
a Participant marries or divorces after a Beneficiary designation is filed, the designation will no longer be effective. 
 (c) Revised Designations. Subject to the spousal consent requirements noted above, each Participant may change his Beneficiary designation from time to time in the manner described above. Upon receipt of such designation by
the EDCP Committee, such designation or change of designation shall become effective as of the date of the notice, whether or not the Participant is living at the time the notice is received. There shall be no liability on the part of the Employer,
the EDCP Committee or the Trustee with respect to any payment authorized by the EDCP Committee in accordance with the most recent Beneficiary designation of the Participant in the possession of the EDCP Committee before the EDCP Committee receives a
more recent Beneficiary designation. 
 (d) Deemed Beneficiary Designations. If no designated Beneficiary is
living when benefits become payable, or if there is no designated Beneficiary, the Beneficiary shall be the Participant’s spouse. If there is no living spouse, the Beneficiary shall be the Participant’s estate. If the designated
Beneficiary dies after the payment of benefits begin, then the Beneficiary for the remainder of the benefits payable shall be the estate of the Beneficiary. 
 8.6 Prohibition on Acceleration of Distributions. The time or schedule of payment of any withdrawal or distribution under the Plan shall not be subject to acceleration, except as provided under Treasury
Regulations promulgated in accordance with Section 409A(a)(3) of the Code, or as provided in Sections 8.9 and 8.10 in accordance with the transitional relief under Internal Revenue Service Notice 2005-1 Q/A-19(c), the Proposed Regulations under
Section 409A of the Code and Internal Revenue Service Notice 2006-79. 
 8.7 Withholding and Payroll Taxes. The Employer
shall withhold from Plan payment any taxes required to be withheld from such payments under federal, state or local law. Any withholding of taxes or other amounts required by federal, state or local law with respect to amounts credited to a
Participant’s Accounts including, without limitation to, tax due under the Federal Insurance Contributions Act, shall be withheld, to the maximum extent possible, from the portion of the Participant’s Salary or Bonus that is not
contributed to this Plan (or, in the case of a Caesars Participant, from the portion of the Caesars Participant’s “Base Compensation” and “Bonus Compensation” (each, as defined in the Caesars Plan) that is not contributed to
this Plan). Any withholding amount that cannot be withheld in accordance with the preceding sentence shall be withheld from the Participant’s Deferral Contributions (or, in the case of a Caesars Participant, from the Caesars Participant’s
deferral contributions under Sections 4.5(a) and (b)). 
 8.8 [Reserved] 
  

 41 

 8.9 Special Lump Sum Distribution. 
 (a) Subject to Section 8.11, a Participant, or a Beneficiary of a deceased Participant, may elect to receive a special lump sum distribution
from such Participant’s or Beneficiary’s Accounts on June 1, 2008 (or within thirty (30) days thereafter) in accordance with this Section 8.9. A Participant’s or Beneficiary’s special lump sum distribution shall be
made only from the Accounts in which such Participant or Beneficiary has a fully vested interest, determined as of the last day of the Special Distribution Election Period. The special lump sum distribution shall be in the amount equal to the
Participant’s or Beneficiary’s designated percentage of the Participant’s or Beneficiary’s interest in such Accounts, and such designated percentage of the Account shall be credited to a special subaccount of such Account. Such
special lump sum distribution shall be made proportionately from such Participant’s or Beneficiary’s Accounts (and the subaccounts thereunder) and shall apply only to amounts that would not otherwise be payable before January 1, 2008.

 (b) A Participant, or a Beneficiary of a deceased Participant, shall elect to receive a special lump sum distribution under
subsection (a) by completing and delivering a Special Lump Sum Distribution Agreement in accordance with the rules and procedures adopted by the EDCP Committee for such purpose. Such Participant or Beneficiary shall designate the whole
percentage (up to a maximum of 100%) of such Participant’s or Beneficiary’s interest in his or her Accounts to be distributed in such special lump sum distribution. Such Participant or Beneficiary must complete and deliver such Special
Lump Sum Distribution Agreement not later than the last day of the Special Distribution Election Period, and such Participant’s or Beneficiary’s Special Lump Sum Distribution Agreement shall become irrevocable as of the last day of the
Special Distribution Election Period. Such special Separation from Service Election, or special Distribution Year Election, shall supersede such Participant’s prior distribution election with respect to the portion of such Participant’s
Accounts subject to such special Separation from Service Election or special Distribution Year Election, except as provided in Section 8.11. 
 (c) Special distribution elections under this Section 8.9 shall be subject to such administrative rules, procedures and restrictions as are prescribed by the EDCP Committee in its discretion. No election may be made under this
Section 8.9 after the last day of the Special Distribution Election Period. 
 8.10 Special Distribution Elections.

 (a) Subject to Section 8.11, a Participant may elect in accordance with this Section 8.10 to make a special Separation
from Service Election, or a special Distribution Year Election, with respect to any Deferral Period ending on or before December 31, 2007. Such special Separation from Service Election or special Distribution Year Election shall apply to the
portion of the Participant’s Accounts attributable to compensation amounts deferred during such Deferral Period. 
 (1) Special
Separation from Service Elections. A special Separation from Service Election under this Section 8.10 with respect to a Deferral Period shall provide for the distribution of the subaccounts of such Participant’s Accounts for such
Deferral Period upon 

  

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such Participant’s Separation from Service and shall be in a form of distribution permitted under Section 8.1(b) and selected by the Participant in
such Participant’s Special Distribution Election Agreement; provided, however, that such installment period shall not extend beyond fifteen (15) years following such Participant’s Separation from Service. If such
Participant makes a special Separation from Service Election under this Section 8.10 and fails to select a form of distribution for purposes of distributions from the subaccounts of such Participant’s Accounts for a Deferral Period, such
distributions shall be made in a lump sum payment. A Participant may not change his or her special Separation from Service Election under this Section 8.10 with respect to a Deferral Period, or the form of distribution of the subaccounts of
such Participant’s Accounts for such Deferral Period. 
 (2) Special Distribution Year Elections. A special Distribution
Year Election under this Section 8.10 with respect to a Deferral Period shall provide for the distribution of the subaccounts of such Participant’s Accounts for such Deferral Period upon the earlier of the first day of the Distribution
Year (as selected by the Participant), or the Participant’s Separation from Service. Such Participant shall select the Distribution Year for purposes of distributions from the subaccounts of such Participant’s Accounts for such Deferral
Period. The Distribution Year shall be not earlier than the 2009 calendar year, and shall not be later than the 2027 calendar year. The distribution of the subaccounts of such Participant’s Accounts for such Deferral Period shall be made in a
lump sum payment. A Participant may change such Participant’s special Distribution Year Election with respect to a Deferral Period in accordance with Section 8.2. 
 (b) If a Participant elects to make a special Separation from Service Election, or a special Distribution Year Election, with respect to a
Deferral Period under this Section 8.10, such special Separation from Service Election or special Distribution Year Election shall apply to the subaccounts of such Participant’s Accounts (including, without limitation, such
Participant’s Transferred Caesars Accounts and Transferred Harrah’s ESSP Accounts, if any) for such Deferral Period and shall apply only to amounts that would not otherwise be payable before January 1, 2008 or payable in accordance
with a special lump sum distribution election under Section 8.9. 
 (c) A Participant shall make a special Separation from
Service Election, or a special Distribution Year Election, with respect to a Deferral Period under subsection (a) by completing and delivering a Special Distribution Election Agreement in accordance with rules and procedures adopted by the EDCP
Committee for such purpose. Such Participant must complete and deliver such Special Distribution Election Agreement not later than the last day of the Special Distribution Election Period, and such Participant’s Special Distribution Election
Agreement shall become irrevocable as of the last day of the Special Distribution Election Period. Such special Separation from Service Election, or Distribution Year Election, shall supersede such Participant’s prior Separation from Service
Election, or Distribution Year Election with respect to the portion of such Participant’s Accounts subject to such special Separation from Service Election or special Distribution Year Election, except as provided under Section 8.11.

 (d) Special Separation from Service Elections and special Distribution Year Elections under this Section 8.10 shall be subject
to such administrative rules, procedures and restrictions as are prescribed by the EDCP Committee in its discretion. No election may be made under this Section 8.10 after the last day of the Special Distribution Election Period. 
  

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 8.11 Compliance with Section 409A of the Code. 
 (a) The Plan shall be interpreted, construed and administered in a manner that satisfies the requirements of Sections 409A(a)(2), (3) and
(4) of the Code and the Treasury Regulations thereunder (subject to the transitional relief under Internal Revenue Service Notice 2005-1, the Proposed Regulations under Section 409A of the Code and other applicable authority issued by the
Internal Revenue Service). 
 (b) As provided in Internal Revenue Notice 2006-79, notwithstanding any other provision of the Plan,
with respect to any election under Section 8.9 or 8.10, or any other election or amendment to change a time and form of payment under the Plan made on or after January 1, 2007 and on or before December 31, 2007, the election or
amendment shall apply only to amounts that would not otherwise be payable in 2007 and shall not cause an amount to be paid in 2007 that would not otherwise be payable in 2007. 
 ARTICLE NINE 
 ADMINISTRATION OF THE PLAN 
 9.1 Adoption of Trust. The Company shall enter into a Trust Agreement with the Trustee, which Trust Agreement shall form a part of this
Plan and is hereby incorporated herein by reference. 
 9.2 Powers of the EDCP Committee. 
 (a) Plan Administrator. The EDCP Committee shall be the administrator of the Plan and shall be responsible for the
administration of the Plan. 
 (b) General Powers of the EDCP Committee. The EDCP Committee shall have the power
and discretion to perform the administrative duties described in this Plan or required for proper administration of the Plan and shall have all powers necessary to enable it to properly carry out such duties. Without limiting the generality of the
foregoing, the EDCP Committee shall have the power and discretion to construe and interpret this Plan, to hear and resolve claims relating to this Plan, and to decide all questions and disputes arising under this Plan. The EDCP Committee shall
determine, in its discretion, the service credited to the Participants, the status and rights of a Participant, and the identity of the Beneficiary or Beneficiaries entitled to receive any benefits payable hereunder on account of the death of a
Participant. The decision or action of the EDCP Committee in respect of any question arising under or in connection with the Plan and the rules and regulations promulgated hereunder shall be final and conclusive and binding upon all persons having
an interest in the Plan. 
 (c) Distributions. Except as is otherwise provided hereunder, the EDCP Committee
shall determine the manner and time of payment of benefits under this Plan. All benefit disbursements by the Trustee shall be made upon the instructions of the EDCP Committee. 
  

 44 

 (d) Decisions Conclusive. The decision of the EDCP Committee upon all
matters within the scope of its authority shall be binding and conclusive upon all persons. 
 (e) Reporting.
The EDCP Committee shall file all reports and forms lawfully required to be filed by the EDCP Committee and shall distribute any forms, reports or statements to be distributed to Participants and others. 
 (f) Trust Fund. The EDCP Committee shall keep itself advised with respect to the funded status and investment of the Trust
Fund. 
 9.3 Creation of Committee. The EDCP Committee shall be appointed by the Chief Executive Officer of the Company. The
EDCP Committee must consist of at least three members. The EDCP Committee members shall serve without compensation but shall be reimbursed for all expenses by the Company. The EDCP Committee shall conduct itself in accordance with the provisions of
this Article Nine. The members of the EDCP Committee may resign with thirty (30) days notice in writing to the Company and may be removed immediately at any time by written notice from the Company. The EDCP Committee may have duties with
respect to other plans of the Company that are or identical to its duties under the Plan. 
 9.4 Appointment of Agents. The
EDCP Committee may appoint such other agents, who need not be members of the EDCP Committee, as it may deem necessary for the effective performance of its duties, whether ministerial or discretionary, as the EDCP Committee may deem expedient or
appropriate. The compensation of any agents who are not employees of the Company shall be fixed by the committee within any limitations set by the HRC. 
 9.5 Majority Vote and Execution of Instruments. In all matters, questions and decisions, the action of the EDCP Committee shall be determined by a majority vote of its members. They may meet informally
or take any ordinary action without the necessity of meeting as a group. All instruments executed by the EDCP Committee shall be executed by a majority of its members or by any member of the EDCP Committee designated to act on its behalf.

 9.6 Allocation of Responsibilities. The EDCP Committee may allocate responsibilities among its members or designate other
persons to act on its behalf. Any allocation or designation, however, must be set forth in writing and must be retained in the permanent records of the EDCP Committee. 
 9.7 Conflict of Interest. No member of the EDCP Committee who is a Participant shall take any part in any action in connection with his participation as an individual. Such action shall be voted or
decided by the remaining members of the EDCP Committee. 
 9.8 Indemnification. The Company shall indemnify and hold harmless
the members of the EDCP Committee against any and all claims, loss, damage, expense or liability arising from any action or failure to act with respect to this Plan on account of such member’s service on the EDCP Committee, except in the case
of gross negligence or willful misconduct. 
 9.9 Action Taken by Employer. Any action to be taken by an Employer shall be
taken by resolution adopted by its board of directors or appropriate board committee; provided, 

  

 45 

 
however, that by resolution, the board of directors or appropriate board committee may delegate to any committee of the board or any officer of the Employer
the authority to take any actions under this Plan, other than the power to determine the basis of Employer contributions. 
 9.10
Discretionary Authority. All delegations of responsibility set forth in this document regarding the determination of benefits and the interpretation of the terms of the Plan confer discretionary authority upon the person delegated such
responsibility. 
 9.11 Participant Statements. The EDCP Committee shall provide a statement of Plan Accounts to each
Participant and Beneficiary on a quarterly or more frequent basis, as determined by the EDCP Committee in its discretion. Such statement of Plan Accounts shall reflect the amounts allocated to each Account maintained for the Participant, the
Participant’s vested interest in his Accounts, any distributions, withdrawals or expenses charged against the Participant’s Account, the hypothetical investment earnings and losses on the Participant’s Account, and any other
information deemed appropriate by the EDCP Committee. 
 9.12 Compliance with Section 409A of the Code. The Plan shall be
interpreted, construed and administered in a manner that satisfies the requirements of Sections 409A(a)(2), (3) and (4) of the Code and the Treasury Regulations thereunder. 
 ARTICLE TEN 
 CLAIMS REVIEW PROCEDURE 
 10.1 General. 
 (a) A
Participant or Beneficiary who believes that he or she has not received the benefits to which he or she is entitled may assert a claim for benefits under the Plan in accordance with the claims procedure of this Article Ten. The claims procedure of
this Article Ten shall be applied in accordance with Section 503 of ERISA and Department of Labor Regulation Section 2560.503-1. A Participant or Beneficiary may assert a benefit claim, or appeal the denial of a benefits claim, through
such Participant’s or Beneficiary’s authorized representative, provided that such Participant or Beneficiary has submitted a written notice evidencing the authority of such representative to the EDCP Committee. A Participant or Beneficiary
asserting a benefits claim shall be referred to as a “Claimant” under this Article Ten. 
 (b) A Claimant shall submit his
or her benefits claim under the Plan in writing to the EDCP Committee. The Claimant may include documents, records or other information relating to the benefits claim for review by the EDCP Committee in connection with such benefits claim.

 10.2 Benefit Determination. 
 (a) The EDCP Committee shall review the Claimant’s benefits claim (including any documents, records or other information submitted with such benefits claim) and determine whether such benefits claim shall
be approved or denied in accordance with the Plan. 
 (b) In the event that a Claimant’s benefits claim is wholly or partially
denied, the EDCP Committee shall provide to the Claimant with written notice of the denial within a 

  

 46 

 
reasonable period of time, but not later than ninety (90) days after the receipt of the benefits claim by the EDCP Committee, unless the EDCP Committee
determines that special circumstances require an extension of time for making a determination with respect to the benefits claim. If the EDCP Committee determines that an extension of time for making a determination with respect to the benefits
claim is required, the EDCP Committee shall provide the Claimant with written notice of such extension prior to the end of the initial ninety (90) day period. The extension of time shall not exceed a period of ninety (90) days from the end
of such initial period. The extension notice shall indicate the special circumstances requiring the extension of time and the date by which the EDCP Committee expects to render the benefit determination. 
 (c) The notice of denial of the Claimant’s benefits claim shall set forth: 
 (1) the specific reason or reasons for the denial; 
 (2) references to specific Plan provisions on which the denial is based; 
 (3) a description of any additional material or information necessary for the Claimant to perfect the claim and an explanation of
why the material or information is necessary; and 
 (4) a description of the Plan’s appeal procedures and the
time limits applicable to such procedures, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA following a denial of the appeal of the denial of the benefits claim. 
 (d) The Claimant may appeal any denial of the benefits claim in writing to the EDCP Committee within sixty (60) days after receipt of the
EDCP Committee’s notice of denial of benefits claim. The Claimant’s failure to appeal the denial of the benefits claim by the EDCP Committee in writing within the sixty (60) day period shall render the EDCP Committee’s
determination final, binding, and conclusive. 
 10.3 Appeals. 
 (a) A Claimant may appeal the denial of a benefits claim to the EDCP Committee. The EDCP Committee shall review the appeal of the denial of the
benefits claim and make a final determination as to whether the benefits claim should be approved or denied in accordance with the Plan. 
 (b) The Claimant shall be afforded the opportunity to submit written comments, documents, records, and other information relating to the benefits claim, and the Claimant shall be provided, upon request and free of charge, reasonable
access to all documents, records, and other information relevant to the Claimant’s benefits claim. A document, record or other information shall be considered “relevant” to the benefits claim, as provided in Department of Labor
Regulation Section 2560.503-1(m)(8). The review on appeal by the EDCP Committee shall take into account all comments, documents, records, and other information submitted by the Claimant, without regard to whether such information was submitted
or considered in the EDCP Committee’s initial determination with respect to the benefits claim. The EDCP Committee shall 

  

 47 

 
advise the Claimant in writing of the EDCP Committee’s determination of the appeal within sixty (60) days of the claimant’s written request
for review, unless special circumstances (such as a hearing) would make the rendering of a determination within the sixty (60) day period infeasible, but in no event shall the EDCP Committee render a determination regarding the denial of a
claim for benefits later than one hundred twenty (120) days after its receipt of a request for review. If an extension of time for review is required because of special circumstances, written notice of the extension shall be furnished to the
Claimant prior to the date the extension period commences. 
 (c) The notice of denial of the Claimant’s appeal of the denial of
the Claimant’s benefit claim shall set forth: 
 (1) the specific reason or reasons for the denial of the appeal;

 (2) reference to the specific Plan provisions on which the denial of the appeal is based; 
 (3) a statement that the Claimant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all
documents, records and other information relevant to the Claimant’s benefits claim (and a document, record or other information shall be considered “relevant” to the benefits claim, as provided in Department of Labor Regulation
Section 2560.503-1(m)(8)); and 
 (4) a statement describing Claimant’s right to bring an action under ERISA
Section 502(a). 
 (d) If, upon appeal, the EDCP Committee shall grant the relief requested by the Claimant, then, in addition,
the EDCP Committee shall award to the Claimant reasonable fees and expenses of counsel, or any other duly authorized representative of Claimant, which shall be paid by the Company. The determination as to whether such fees and expenses are
reasonable shall be made by the Company in its sole and absolute discretion and such determination shall be binding and conclusive on all parties. 
 10.4 Notice of Denials. The EDCP Committee’s notice of denial of a benefits claim shall identify the address to which the Claimant may forward his appeal. 
 ARTICLE ELEVEN 
 LIMITATION ON ASSIGNMENT; 
 PAYMENTS TO LEGALLY INCOMPETENT DISTRIBUTEE 
 11.1 Anti-Alienation Clause. No benefit which shall be payable under the Plan to any person shall be subject in any manner to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance or
charge, and any attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber, charge or otherwise dispose of the same shall be void. No benefit shall in any manner be subject to the debts, contracts, liabilities, engagements or torts of
any person, nor shall it be subject to attachment or legal process for or against any person, except to the extent as may be required by law. The benefits provided by this Plan are not subject to the qualified domestic relations order provisions of
ERISA or the Code. 
  

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 11.2 Permitted Arrangements. Section 11.1 (Anti-Alienation Clause) shall not preclude
arrangements for the withholding of taxes from benefit payments, arrangements for the recovery of benefit overpayments, arrangements for the transfer of benefit rights to another plan, or arrangements for direct deposit of benefit payments to an
account in a bank, savings and loan association or credit union (provided that such arrangement is not part of an arrangement constituting an assignment or alienation). 
 11.3 Payment to Minor or Incompetent. Whenever any benefit which shall be payable under the Plan is to be paid to or for the benefit of any person who is then a minor or determined by the EDCP Committee
to be incompetent, the EDCP Committee need not require the appointment of a guardian or custodian, but shall be authorized to cause the same to be paid over to the person having custody of the minor or incompetent, or to cause the same to be paid to
the minor or incompetent without the intervention of a guardian or custodian, or to cause the same to be paid to a legal guardian or custodian of the minor or incompetent if one has been appointed or to cause the same to be used for the benefit of
the minor or incompetent. 
 ARTICLE TWELVE 
 AMENDMENT, MERGER AND TERMINATION 
 12.1 Amendment. 
 (a) The Company shall have the right at any time, by an instrument in writing duly executed, acknowledged and delivered to the EDCP Committee, to
modify, alter or amend this Plan, in whole or in part, prospectively or retroactively (including, without limitation, to modify, alter or amend this Plan to comply with Sections 409A(a)(2), (3) and (4) of the Code and the Treasury
Regulations and applicable guidance thereunder). Additionally, the EDCP Committee shall also have the right to modify, alter or amend the Plan by written instrument provided that such amendment does not have a material adverse financial effect on
the Company or the Plan. No amendment shall substantially increase the duties and liabilities of the EDCP Committee and the Trustee hereunder without its written consent. No amendment shall reduce any Participant’s vested interest in the Plan,
calculated as of the date on which the amendment is adopted. 
 (b) Any Affiliate or other entity adopting this Plan hereby delegates
the authority to amend the Plan to the Company and the EDCP Committee. If the Plan is amended after it is adopted by an Affiliate, unless otherwise expressly provided, it shall be treated as so amended by such Affiliate without the necessity of any
action on the part of the Affiliate. An Affiliate or other entity that has adopted this Plan may terminate its future participation in the Plan at any time. 
 12.2 Merger or Consolidation of Company. The Plan shall not be automatically terminated by the Company’s acquisition by or merger into any other employer, but the Plan shall be continued after such
acquisition or merger if the successor employer elects and agrees to continue the Plan. Except as provided in Section 12.4 (Continuation of Plan following Change of Control), all rights to amend, modify, suspend, or terminate the Plan shall be
transferred to the successor employer, effective as of the date of the merger. 
  

 49 

 12.3 Termination of Plan or Discontinuance of Contributions. It is the expectation of the
Company that this Plan and the contributions hereunder shall be continued indefinitely. However, continuance of the Plan is not assumed as a contractual obligation of the Company. Except as provided in Section 12.4 (Continuation of Plan
following a Change of Control), the Company reserves the right at any time to terminate this Plan or to reduce, temporarily suspend or discontinue contributions hereunder. If this Plan is terminated, all Plan benefits shall be distributed in
accordance with Article Eight and the Separation from Service Elections and the Distribution Year Elections of the Participants, following the termination of the Plan. 
 12.4 Continuation of Plan following a Change of Control. Notwithstanding any provision of this Plan to the contrary, if a Change of Control occurs following the Effective Date of this Plan, a successor
employer shall have the power to (a) terminate this Plan, (b) amend Section 13.5 (Funding upon a Change of Control) of the Plan, or (c) amend any provision of the Plan that affects a Participant’s entitlement to a
distribution from the Plan, only if 80% of the individuals who are Participants in the Plan, both as of the date of the Change of Control and as of the date of the adoption of such amendment or termination, consent to such an amendment or
termination. The provisions of this Section 12.4 shall not limit a successor employer’s authority to take other actions with respect to the Plan, including the authority to discontinue contributions to the Plan. 
 12.5 Limitation of Company’s Liability. The adoption of this Plan is strictly a voluntary undertaking on the part of the Company and
shall not be deemed to constitute a contract between the Company and any employee or Participant or to be consideration for, an inducement to, or a condition of the employment of any employee. A Participant, employee, or Beneficiary shall not have
any right to retirement or other benefits except to the extent provided herein. 
 12.6 Limitation on Distributions. To the
extent that any payment to be made to a Participant under this Plan during a taxable year of such Participant’s Employer, when combined with all other payments received or to be received during such taxable year of the Participant’s
Employer that are subject to the limitation on deductibility under Section 162(m) of the Code, would exceed the limitation on deductibility under Section 162(m) of the Code, such payment under the Plan shall be delayed in accordance with
Treasury Regulation Section 1.409A-2(b)(7)(i) to such Participant’s Separation from Service (or, in the case of a Participant who is a Specified Employee as of the date of such Participant’s Separation from Service, the date which is
six months after the date of such Participant’s Separation from Service (or, if earlier, the date of such Participant’s death) in accordance with Section 409A(a)(2)(B)(i) of the Code and the Treasury Regulation
Section 1.409A-3(i)(2) and shall be paid in accordance with Treasury Regulation Section 1.409A-2(b)(7)(i). Any payment that is deferred in accordance with this Section 12.6 shall be credited with hypothetical investment earnings and
losses in accordance with Article Six (Crediting of Contributions and Income). 
 ARTICLE THIRTEEN 
 GENERAL PROVISIONS 
 13.1
Limitation of Rights. Neither this Plan, the Trust nor membership in the Plan shall give any employee or other person any right except to the extent that the right is 
  

 50 

 
specifically fixed under the terms of the Plan. The establishment of the Plan shall not be construed to give any individual a right to be continued in the
service of a Employer or as interfering with the right of a Employer to terminate the service of any individual at any time. 
 13.2
Construction. The masculine gender, where appearing in the Plan, shall include the feminine gender (and vice versa), and the singular shall include the plural, unless the context clearly indicates to the contrary. Headings and subheadings
are for the purpose of reference only and are not to be considered in the construction of this Plan. If any provision of this Plan is determined to be for any reason invalid or unenforceable, the remaining provisions shall continue in full force and
effect. All of the provisions of this Plan shall be construed and enforced in accordance with ERISA and, to the extent applicable, the laws of the State of Nevada. 
 13.3 Status of Participants as Unsecured Creditors. All benefits under the Plan shall be the unsecured obligations of the Company and each Employer, as applicable, and, except for those assets which will
be placed in the Trust established in connection with this Plan, no assets will be placed in trust or otherwise segregated from the general assets of the Company or each Employer, as applicable, for the payment of obligations hereunder. To the
extent that any person acquires a right to receive payments hereunder, such right shall be no greater than the right of any unsecured general creditor of the Company and each Employer, as applicable. 
 13.4 Status of Trust Fund. The Trust Fund is being established to assist the Company and the Employers in meeting their obligations to the
Participants and to provide the Participants with a measure of protection in certain limited instances. In certain circumstances described in the Trust Agreement, the assets of the Trust Fund may be used for the benefit of the Company’s or an
Affiliate’s creditors and, as a result, the Trust Fund is considered to be part of the Company’s and Employer’s general assets. Benefit payments due under this Plan shall either be paid from the Trust Fund or from the Company’s
or Affiliate’s general assets as directed by the EDCP Committee. Despite the establishment of the Trust Fund, it is intended that the Plan be considered to be “unfunded” for purposes of the ERISA and the Code. 
 13.5 Funding upon a Change of Control. Immediately before the occurrence of a Change of Control, the Company shall determine whether, for
any reason, the assets of the Trust Fund are less than the sum of: (a) the aggregate Account balances of all Participants (determined without regard to the vested interest of each Participant), and (b) the total amount of Enhancement
Contributions to which Harrah’s ESSP Participants will become entitled under Section 4.6 upon such Change of Control, and shall transfer an amount equal to the deficiency to the Trustee of the Trust. If it is discovered at any time that
the amount initially transferred is less than the total amount called for by the preceding sentence, the shortfall, including any accrued interest on the shortfall, shall be transferred to the Trustee immediately upon the discovery of such error.

 13.6 Uniform Administration. Whenever in the administration of the Plan any action is required by the EDCP Committee, such
action shall be uniform in nature as applied to all persons similarly situated, except as otherwise provided to the contrary in this Plan document or the Trust Agreement. 
  

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 13.7 Heirs and Successors. All of the provisions of this Plan shall be binding upon all
persons who shall be entitled to any benefits hereunder, and their heirs and legal representatives. 
 13.8 Electronic
Administration. The EDCP Committee shall have the authority to employ alternative means (including, but not limited to, electronic, internet, intranet, voice response or telephonic) by which Participants may submit participation
elections, directions, and forms required for participation in, and the administration of, this Plan. If the EDCP Committee chooses to use these alternative means, any elections, directions or forms submitted in accordance with the rules and
procedures promulgated by the EDCP Committee will be deemed to satisfy any provision of this Plan calling for the submission of a written election, direction or form. 
 * * * * * 
 To signify its adoption of this Amendment and Restatement of the Harrah’s Entertainment,
Inc. Executive Supplemental Savings Plan II, the Company has caused this Plan document to be executed by a duly authorized officer of the Company as of August 3, 2007. 
  

			
	 HARRAH’S ENTERTAINMENT, INC.

		
	 By:
	 	 /S/ Mary Thomas

	 Name:
	 	Mary Thomas
	 Title:
	 	Senior Vice President, Human Resources

  

 52Transition agreement

 Exhibit 10.1 
 MAXWELL TECHNOLOGIES, INC. 
 TRANSITION AGREEMENT 
 This Transition Agreement (the “Agreement”) is made as of this 23 day of July, 2007, by and between MAXWELL TECHNOLOGIES, INC., a Delaware
corporation (the “Company”), and RICHARD BALANSON (“Executive”). The parties agree with each other as follows: 
 1.
Transition. Executive’s full-time employment shall terminate as of the close of business on July 23, 2007 (the “Transition Date”). Executive further agrees to resign from the Board of Directors of the Company (the
“Board”), effective as of the Transition Date. 
 2. Future Position. 
 (i) Transition Period. Executive shall be employed by the Company on a part-time basis for the period commencing on the Transition
Date and ending on December 31, 2011 (the “Transition Period”). Subject to Section 5, the Company shall pay Executive a salary during the Transition Period. Such salary shall be paid in accordance with the Company’s standard
payroll procedures, and the amount of such salary shall be as set forth in the table below (subject to applicable withholding taxes). During the Transition Period, Executive shall not be entitled to participate in the Company’s employee benefit
plans, except as provided in Paragraph (ii) below. During the Transition Period, Executive shall have the title of Senior Technical Adviser and shall provide such services to the Company as the Board or the Company’s Chief Executive
Officer may reasonably request. Executive may be required to commit to such services up to the number of hours per week set forth in the table below. In the event of Executive’s death prior to the completion of the Transition Period, the
remaining payments that would otherwise have been made to Executive under this Paragraph (i) shall instead be paid on the same schedule to Executive’s designated beneficiary or beneficiaries or, if none, to his estate. 
  

						
	 Period
	  	Annual Salary	  	Maximum Hours per Week
	 Prior to October 1, 2007
	  	$	450,000	  	40
	 October 1 through December 31, 2007
	  	$	450,000	  	8
	 After December 31, 2007
	  	$	175,000	  	8

 (ii) Payments in Lieu of Benefits. In lieu of all group insurance coverage
and participation in other employee benefit plans, the Company shall pay Executive $15,300 per year in accordance with the Company’s standard payroll procedures (subject to applicable withholding taxes). 
 (iii) Options. The Transition Period shall be treated as employment with the Company for purposes of determining the expiration
date of all options to purchase shares of the Company’s Common Stock held by Executive, as provided in the Stock Option Agreements evidencing such options. 

 (iv) Restricted Shares. The Transition Period shall be treated as employment with
the Company for purposes of determining the vested portion of all awards of restricted shares of the Company’s Common Stock held by Executive, as provided in the Restricted Stock Agreements applicable to such shares. 
 (v) Savings Clause. Payments under this Section 2 shall in no event commence prior to the earliest date permitted by
Section 409A(a)(2) of the Code. If the commencement of such payments must be delayed, as determined by the Company, then the deferred installments shall be paid in a lump sum on the earliest practicable date permitted by Section 409A(a)(2)
of the Code. 
 (vi) Exclusive Rights. After the Transition Date, Executive shall have no claim against the Company in
respect of his employment for damages or otherwise, except in respect of the payments and other provisions specified in this Transition Agreement. 
 (vii) Cooperation. Executive shall cooperate with the Company, as reasonably requested by the Company, to effect a transition of Executive’s responsibilities and to ensure that the Company is aware of all
matters being handled by Executive. 
 3. Resolution of Disputes. The parties recognize that claims, controversies and disputes may
arise out of this Agreement with respect to Executive’s employment, termination of employment, or other terms of this Agreement or based on common law or statute, either during the existence of the employment relationship or afterwards. The
parties agree that should any such claim, controversy or dispute arise, the parties will use their best efforts to resolve such dispute informally, between them. In the event that any such claim, controversy or dispute between Company and Executive
cannot be resolved within thirty (30) days after either party first gives notice in writing that any such claim, controversy or dispute exists, either party may then refer the matter to arbitration before JAMS/ENDISPUTE pursuant to its rules
for resolution of employment disputes. 
 The parties hereby agree that referral to arbitration shall be the sole recourse of either party
under this Agreement with respect to any such claim, controversy or dispute and that the decision of the arbitrator shall be binding on the parties in accordance with applicable law; provided, however, that nothing in this Section 3 shall be
construed as precluding either party from bringing an action for injunctive relief or other equitable relief. The parties shall keep confidential from third parties (other than the arbitrator) the existence of each such claim, controversy or dispute
and the determination thereof, unless otherwise required by law. Except as provided in the following two sentences, each decision rendered by the arbitrator shall be final and conclusive and may be entered in any court having jurisdiction thereof as
a basis of judgment and of the issuance of execution for its collection. In rendering his or her decision, the arbitrator shall be bound to follow California or Federal law, as applicable, in the same manner as would a court of law. Any claim that
the arbitrator made a mistake or error in determining or applying the appropriate law shall be subject to judicial review. 
  

 2 

 The parties further agree that the party prevailing in the arbitration shall be entitled to its
reasonable attorney’s fees and that the arbitration itself shall take place within the County of San Diego, California, and that the internal laws of the State of California shall apply. 
 4. No Solicitation. Executive agrees that after the Transition Date, he shall not hire, solicit or otherwise cause to be solicited for employment
elsewhere, either directly or indirectly, any employee, officer or director of the Company or any individual who chooses not to join the Company, provided that Executive participated actively in the recruiting of such individual. This Section 4
shall apply until the close of the Transition Period. 
 5. Noncompetition. Executive agrees that the Company may immediately
discontinue all payments under Section 2 if he (a) directly or indirectly owns, manages, operates or controls, or participates in the ownership, management, operation or control of, or is connected with or has any interest in, as a
shareholder, director, officer, employee, agent, consultant, partner, creditor or otherwise, any business or activity which is competitive with any business or activity engaged in by the Company or any of its subsidiaries or affiliates anywhere
within (i) the State of California, (ii) any other state of the United States and the District of Columbia in which the Company engages in or has engaged in business during the past five years or (iii) any other country in which the
Company engages in or has engaged in business during the past five years or (b) permits any entity or other person under his control to engage in any activity prohibited under clause (a). This Section 5 shall apply until the close of
the Transition Period. 
 6. Entire Agreement. This Agreement constitutes the entire Agreement between the parties and contains all
agreements between them with the exception of the 1995 Stock Option Plan and the 2005 Omnibus Equity Incentive Plan (and the Stock Option and Restricted Stock Agreements issued to Executive thereunder), the other employee benefit and welfare
programs maintained by the Company, and the Invention and Secrecy Agreement dated August 1, 2003, and signed by Executive, which are supplementary to this Agreement and are each deemed to be incorporated herein by reference. Each party to this
Agreement acknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by any party, or anyone acting on behalf of any party, which are not embodied in this Agreement, and that no agreement,
statement or promise not contained in this Agreement shall be valid or binding. Except for the other agreements, plans and programs referred to in this Section 6, this Agreement also supersedes any and all other agreements and contracts,
whether verbal or in writing, relating to the subject matter hereof, including (without limitation) the Employment Agreement dated August 1, 2003. 
 7. Amendment. Except as otherwise specifically provided herein, the terms and conditions of this Agreement may be amended at any time by mutual agreement of the parties; provided that before any amendment shall
be valid or effective, it shall have been reduced to writing and signed by the Chairman of the Board on behalf of the Company and by Executive. 
  

 3 

 8. Invalidity. The invalidity or unenforceability of any particular provision of this Agreement
shall not affect its other provisions, and this contract shall be construed in all respects as if such invalid or unenforceable provision has been omitted. 
 9. Binding Nature. Executive’s rights and obligations under this Agreement shall not be assignable, transferable or delegable by assignment or otherwise, and any purported assignment, transfer or
delegation thereof shall be void. This Agreement shall be binding upon and shall inure to the benefit of any successor of the Company and Executive, and any such successor shall be deemed substituted for the Company or Executive under the terms of
this Agreement. The term “successor” as used in this Section 9 shall include any person, firm, corporation or other business entity that at any time, by merger, purchase or otherwise, acquires or gains control over all or
substantially all of the assets or business of the Company. 
 10. Assistance in Litigation. Executive shall, during and after
termination of employment, upon reasonable notice, furnish such information and proper assistance to the Company as may reasonably be required by the Company in connection with any litigation in which it or any of its subsidiaries or affiliates is
or may become a party. Except where Executive is a named defendant and except during the Transition Period, Executive shall be paid a reasonable hourly fee to be mutually agreed upon. 
 11. Indemnification. To the fullest extent permissible by applicable law, the Company shall indemnify and hold harmless Executive for any
liability incurred by reason of any act or omission performed by Executive while acting in good faith on behalf of the Company and within the scope of the authority of Executive. 
 12. No Duty to Mitigate. Executive shall not be required to mitigate the amount of any payment contemplated by this Agreement (whether by seeking
new employment or in any other manner), nor shall any such payment be reduced by any earnings that Executive may receive from any other source not paid for by the Company. 
 13. Choice of Law. The validity, interpretation, construction and performance of this Agreement shall be governed by the laws of the State of
California, other than their choice-of-law provisions, except that Sections 4 and 5 hereof shall be governed by, and interpreted and construed in accordance with, the internal laws (without giving effect to choice of law principles) of the
jurisdiction in which either of said Sections is being sought to be enforced. 
 14. Notices. All notices and other communications
required or permitted hereunder or necessary or convenient in connection herewith shall be in writing and, if given by telegram, telecopy or telex, shall be deemed to have been validly served, given or delivered when sent, if given by personal
delivery, shall be deemed to have been validly served, given or delivered upon actual delivery and, if mailed, shall be deemed to have been validly served, given or delivered three business days after deposit in the United States mail, as registered
or certified mail, with proper postage prepaid and addressed to the party or parties to be notified, at the following addresses: 
 If to
Executive to: 
 Richard Balanson 
  

 4 

 If to the Company to: 
 Maxwell Technologies, Inc. 
 9244 Balboa Avenue 
 San Diego, California 92123 
 Attn: Chairman
of the Board 
 Telephone: (858) 503-3300 
 Fax: (858) 503-3301 
 15. Injunctive Relief. The Company and Executive agree that a breach of
any term of this Agreement by Executive would cause irreparable damage to the Company and that, in the event of such breach, the Company shall have, in addition to any and all remedies of law, the right to any injunction, specific performance and
other equitable relief to prevent or to redress the violation of Executive’s duties or responsibilities hereunder. 
 16.
Release. As a condition to his entitlement to receive the benefits as set forth in this Agreement, Executive agrees to execute and deliver to the Company a release in the form attached hereto as Exhibit A. Such release shall be
delivered by Executive on the Transition Date and shall become effective as set forth therein. 
 17. Counterparts. This Agreement may
be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument, and either of the parties to this Agreement may execute this Agreement by signing any such counterpart. 
  

 5 

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

  

			
	“Company”
	
	MAXWELL TECHNOLOGIES, INC.
		
	By:	 	/s/ Edward B. Caudill
	
	“Executive”
	
	/s/ Richard Balanson
	Richard Balanson

  

 6 

 Exhibit A 
 GENERAL RELEASE OF ALL CLAIMS 
 This General Release of All Claims (“Release”) is made by and
between RICHARD BALANSON (“Executive”) on the one hand and Maxwell Technologies, Inc. (the “Company”) on the other. (Collectively, Executive and the Company shall be referred to as the “Parties.”) 
 1. Executive is an employee of the Company. Executive’s last day of full-time employment with the Company is July 23, 2007 (the
“Transition Date”). The Parties desire to resolve any and all differences related to Executive’s full-time employment with the Company and/or the cessation of that employment. Additionally, the Parties desire to resolve any known or
unknown claims between them, neither Party admitting any liability or fault. For these reasons, the Parties have entered into this Release. 
 2. All vacation accrual and other fringe benefits of Executive cease on the Transition Date. 
 3. If Executive enters into this
Release and does not revoke this Release within the time period provided below in Section 15, the Company will provide Executive with the payments and other benefits described in the Transition Agreement dated July 23, 2007, between the
Parties. 
 4. In consideration of and in return for the promises and covenants undertaken herein by the Company, including the payments
Executive will receive under Section 3 above, and for other good and valuable consideration, receipt of which is hereby acknowledged, Executive does hereby acknowledge full and complete satisfaction of and does hereby release, absolve and
discharge the Company and the Company’s parents, subsidiaries, affiliates, related companies and business concerns, past and present, and each of them, as well as each of their partners, trustees, directors, officers, agents, attorneys,
servants and employees, past and present, and each of them (hereinafter collectively referred to as the “Releasees”) from any and all claims, demands, liens, agreements, contracts, covenants, actions, suits, causes of action, grievances,
severance payments, obligations, debts, expenses, damages, judgments, orders and liabilities of whatever kind or nature in state or federal law, equity or otherwise, whether known or unknown to Executive that Executive now owns or holds or has at
any time owned or held as against Releasees, or any of them, including specifically but not exclusively and without limiting the generality of the foregoing, any and all claims, demands, grievances, agreements, obligations and causes of action,
known or unknown, suspected or unsuspected by Executive (a) arising out of Executive’s employment with the Company or the ending of that employment or (b) arising out of or in any way connected with any claim, loss, damage or injury
whatever, known or unknown, suspected or unsuspected, resulting from any act or omission by or on the part of the Releasees, or any of them, committed or omitted on or before the Transition Date. Also without limiting the generality of the
foregoing, Executive specifically releases the Releasees from any claim for attorneys’ fees and/or costs of suit. EXECUTIVE SPECIFICALLY AGREES AND ACKNOWLEDGES EXECUTIVE IS WAIVING ANY 

  

 1 

 
RIGHT TO RECOVERY BASED ON STATE OR FEDERAL AGE, SEX, PREGNANCY, RACE, COLOR, NATIONAL ORIGIN, MARITAL STATUS, RELIGION, VETERAN STATUS, DISABILITY, SEXUAL
ORIENTATION, MEDICAL CONDITION, OR OTHER ANTI-DISCRIMINATION LAWS, INCLUDING, WITHOUT LIMITATION, TITLE VII OF THE CIVIL RIGHTS ACT OF 1964, THE AGE DISCRIMINATION IN EMPLOYMENT ACT, THE AMERICANS WITH DISABILITIES ACT AND THE CALIFORNIA FAIR
EMPLOYMENT AND HOUSING ACT, OR BASED ON THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, ALL AS AMENDED, WHETHER SUCH CLAIM BE BASED UPON AN ACTION FILED BY EXECUTIVE OR BY A GOVERNMENTAL AGENCY. However, this Release covers only those claims
that arose prior to the execution of this Release and only those claims that may be waived by applicable law. Execution of this Release does not bar any claim that arises hereafter, including (without limitation) a claim for breach of this Release
or the Transition Agreement. Execution of this Release also does not bar any claim to indemnification under Section 2802 of the California Labor Code. 
 5. It is the intention of Executive in executing this Release that it shall be effective as a bar to each and every claim, demand, grievance and cause of action hereinabove specified. In furtherance of this intention,
Executive hereby expressly waives any and all rights and benefits conferred upon Executive by the provisions of Section 1542 of the California Civil Code and expressly consents that this Release shall be given full force and effect according to
each and all of its express terms and provisions, including those relating to unknown and unsuspected claims, demands and causes of action, if any, as well as those relating to any other claims, demands and causes of action hereinabove specified.
Section 1542 provides: 
 “A general release does not extend to claims which the creditor does not know or suspect to exist in his
or her favor at the time of executing the release, which if known by him or her must have materially affected his or her settlement with the debtor.” 
 Having been so apprised, Executive nevertheless hereby voluntarily elects to and does waive the rights described in Civil Code Section 1542 and elects to assume all risks for claims that now exist in Executive’s favor, known or
unknown, that are released under this Release. 
 6. The Company expressly denies any violation of any federal, state or local statute,
ordinance, rule, regulation, policy, order or other law. The Company also expressly denies any liability to Executive. This Release is the compromise of disputed claims and nothing contained herein is to be construed as an admission of liability on
the part of the parties hereby released, or any of them, by whom liability is expressly denied. Accordingly, while this Release resolves all issues regarding the Company referenced herein, it does not constitute an adjudication or finding on the
merits of any allegations and it is not, and shall not be construed as, an admission by the Company of any violation of federal, state or local statute, ordinance, rule, regulation, policy, order or other law, or of any liability. Moreover, neither
this Release nor anything in it shall be construed to be or shall be admissible in any proceeding as evidence of or an admission by the Company of any violation of any federal, state or local statute, ordinance, rule, regulation, policy, order or
other law, or of any liability. This Release may be introduced, however, in any proceeding to enforce this Release or the Transition Agreement. Such introduction shall be pursuant to an order protecting its confidentiality. 
  

 2 

 7. Executive agrees the terms and conditions of this Release are confidential and shall not be disclosed,
discussed or revealed by Executive to any other person or entity, excepting Executive’s spouse, tax advisor or attorney, all of whom are also obligated to maintain the confidentiality of this Release. 
 8. Each Party expressly agrees that such Party will not in any way disparage or otherwise cause to be published or disseminated any negative statements,
remarks, comments or information regarding the other Party. 
 9. This Release shall be construed in accordance with, and be deemed governed
by, the laws of the State of California. 
 10. If any provision of this Release or application thereof is held invalid, the invalidity shall
not affect other provisions or applications of this Release that can be given effect without the invalid provision or application. To this end, the provisions of this Release are severable. 
 11. The Parties hereto acknowledge each has read this Release, that each fully understands its rights, privileges and duties under this Release, and that
each enters into this Release freely and voluntarily. Each Party further acknowledges each has had the opportunity to consult with an attorney of its choice to explain the terms of this Release and the consequences of signing it. 
 12. The undersigned each acknowledge and represent that no promise or representation not contained in this Release has been made to them and acknowledge
and represent that this Release contains the entire understanding between the Parties and contains all terms and conditions pertaining to the compromise and settlement of the subjects referenced herein. The undersigned further acknowledge that the
terms of this Release are contractual and not a mere recital. 
 13. Executive acknowledges Executive may hereafter discover facts different
from, or in addition to, those Executive now knows or believes to be true with respect to the claims herein released and agrees the release herein shall be and remain in effect in all respects as a complete and general release as to all matters
released herein, notwithstanding any such different or additional facts. 
 14. The Company hereby advises Executive that this Release
includes a waiver of any rights that the Executive may have under the Age Discrimination in Employment Act. Executive is advised to discuss this Release with his attorney before executing it. Executive acknowledges that the Company has provided
Executive at least twenty-one (21) days within which to review and consider this Release before signing it. Should Executive decide not to use the full twenty-one days, then Executive knowingly and voluntarily waives any claim that Executive
was not in fact given that period of time or did not use the entire twenty-one days to consult an attorney and/or consider this Release. 
 15. Within three calendar days of signing and dating this Release, Executive shall deliver the executed original of this Release to Tim Hart, Maxwell Technologies, Inc., 9244 Balboa Avenue, San Diego, California 92123. However, Executive
acknowledges that 

  

 3 

 
Executive may revoke this Release for up to seven (7) calendar days following Executive’s execution of this Release and that it shall not become
effective or enforceable until the revocation period has expired. Executive acknowledges that such revocation must be in writing addressed to Tim Hart, Maxwell Technologies, Inc., 9244 Balboa Avenue, San Diego, California 92123, and received not
later than midnight on the seventh day following execution of this Release by Executive. If Executive revokes this Release under this Section 15, this Release shall not be effective or enforceable and Executive will not receive the payments
described in Section 3 above. 
 16. If Executive does not revoke this Release in the time frame specified in Section 15, this
Release shall be effective at 12:01 a.m. on the eighth day after it is signed by Executive. 
 17. Executive acknowledges that, despite the
cessation of Executive’s full-time employment with the Company, Executive may continue to be subject to Section 16 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”). Executive further acknowledges that the
Company has advised him to consult independent counsel regarding the applicability of Section 16 of the Exchange Act. 
 I have read
this Release and I accept and agree to the provisions contained therein and hereby execute it voluntarily and with full understanding of its consequences. 
 PLEASE READ CAREFULLY. THIS RELEASE CONTAINS A 
 GENERAL RELEASE OF ALL KNOWN AND UNKNOWN CLAIMS. 

 

					
			
	/s/ Richard Balanson	 		 	Date: July 23, 2007
	Richard Balanson	 		 	

  

									
	Maxwell Technologies, Inc.	 		 	
				
	By:	 	/s/ Edward B. Caudill	 		 	Date: July 23, 2007
	Title:	 	Chairman of the Board	 		 		 	

  

 4

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