Document:

Continuing Guaranty

  
  
 Exhibit 10.2 
  
 CONTINUING GUARANTY 
 by 
 ELANDIA INTERNATIONAL INC. 
 as Guarantor 
 ANZ AMERIKA SAMOA BANK 

 as Agent for 
 ANZ AMERIKA
SAMOA BANK and ANZ FINANCE AMERICAN SAMOA, INC 
 Lender 
 June 8, 2009 
  
  
  
  

 TABLE OF CONTENTS 
  

					
	ARTICLE 1 DEFINITIONS AND INTERPRETIVE PROVISIONS	  	1
	 Section 1.1
	  	Certain Defined Terms	  	1
	 Section 1.2
	  	Interpretive Provisions	  	5
	 Section 1.3
	  	Accounting Terms	  	5
		
	ARTICLE 2 GUARANTY	  	5
	 Section 2.1
	  	Guaranteed Obligations	  	5
	 Section 2.2
	  	Guarantors’ Consent	  	6
	 Section 2.3
	  	Guarantor’s Waiver	  	6
	 Section 2.4
	  	Guaranty Survives Foreclosure	  	7
	 Section 2.5
	  	Guarantors’ Knowledge of Borrower’s Economic Conditions	  	7
	 Section 2.6
	  	Unconditional Guaranty	  	8
	 Section 2.7
	  	Continuing Guaranty	  	8
	 Section 2.8
	  	No Reliance	  	8
	 Section 2.9
	  	Borrower Indebtedness to Guarantor	  	9
	 Section 2.10
	  	Limitations on Guarantor’s Rights	  	9
		
	ARTICLE 3 REPRESENTATIONS AND WARRANTIES	  	10
	 Section 3.1
	  	Existence and Power	  	10
	 Section 3.2
	  	Authorization	  	10
	 Section 3.3
	  	Government Approvals, Etc	  	10
	 Section 3.4
	  	Binding Obligations, Etc	  	10
	 Section 3.5
	  	Litigation	  	10
	 Section 3.6
	  	Financial Condition.	  	11
		  	 (a)    Pro forma Financial Information
	  	11
		  	 (b)    Financial Statements
	  	11
	 Section 3.7
	  	Solvency	  	11
	 Section 3.8
	  	Title and Liens	  	11
	 Section 3.9
	  	Taxes	  	11
	 Section 3.10
	  	Other Agreements	  	12
	 Section 3.11
	  	Subsidiaries	  	12
	 Section 3.12
	  	Representations as a Whole	  	12
		
	ARTICLE 4 AFFIRMATIVE COVENANTS	  	12
	 Section 4.1
	  	Preservation of Corporate Existence, Etc	  	12
	 Section 4.2
	  	Visitation Rights	  	12
	 Section 4.3
	  	Keeping of Books and Records	  	13
	 Section 4.4
	  	Maintenance of Property, Etc	  	13
	 Section 4.5
	  	Compliance With Laws, Etc	  	13
	 Section 4.6
	  	Other Obligations	  	13
	 Section 4.7
	  	Insurance	  	14

  

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	 Section 4.8
	  	Financial Information	  	14
		  	 (a)    Annual Guarantor Financial Statements
	  	14
		  	 (b)    Quarterly Guarantor Financial Statements
	  	14
		  	 (c)    Other
	  	14
	 Section 4.9
	  	Reserved.	  	14
	 Section 4.10
	  	Notification	  	14
	 Section 4.11
	  	Additional Payments; Additional Acts	  	15
		
	ARTICLE 5 NEGATIVE COVENANTS	  	15
	 Section 5.1
	  	Dividends, Management Fees, Etc	  	16
	 Section 5.2
	  	Transactions With Affiliates	  	16
	 Section 5.3
	  	Consolidations and Mergers	  	16
	 Section 5.4
	  	Dispositions of Assets	  	17
	 Section 5.5
	  	Indebtedness	  	17
	 Section 5.6
	  	Guaranties, Etc	  	17
	 Section 5.7
	  	Liens	  	17
	 Section 5.8
	  	Investments	  	18
	 Section 5.9
	  	Operations	  	18
	 Section 5.10
	  	Securities	  	18
	 Section 5.11
	  	Accounting Change	  	18
		
	ARTICLE 6 MISCELLANEOUS	  	18
	 Section 6.1
	  	No Waiver; Cumulative Remedies	  	18
	 Section 6.2
	  	Expenses; Default Interest	  	18
	 Section 6.3
	  	Notices	  	19
	 Section 6.4
	  	Assignment	  	19
	 Section 6.5
	  	Governing Law	  	20
	 Section 6.6
	  	Waiver of Right to Trial by Jury	  	20
	 Section 6.7
	  	Consent to Jurisdiction	  	20
	 Section 6.8
	  	Entire Agreement; Amendment, Etc	  	20
	 Section 6.9
	  	USA Patriot Act Notice	  	20
	 Section 6.10
	  	Set-Off	  	20
	 Section 6.11
	  	Judgment Currency	  	21
	 Section 6.12
	  	Executed in Counterparts	  	21
	 Section 6.13
	  	Severability	  	21

  

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 CONTINUING GUARANTY 
 THIS CONTINUING GUARANTY (the “Guaranty”) is made as of the 8th day of June, 2009, by ELANDIA INTERNATIONAL INC., a Delaware corporation (“Guarantor”), for the benefit of ANZ AMERIKA
SAMOA BANK, an American Samoa corporation as agent (“Agent”) for ANZ AMERIKA SAMOA BANK and ANZ FINANCE AMERICAN SAMOA, INC., an American Samoa corporation (individually and collectively, the “Lender”). 
 RECITALS 
 A. American Samoa Hawaii
Cable, LLC, a Delaware limited liability company and its wholly-owned subsidiary Samoa American Samoa Cable, LLC, a Delaware limited liability company (individually and collectively, the “Borrower”), Agent and the Lender are parties
to that certain Loan Agreement dated as of June 8, 2009 (as amended, restated, supplemented or otherwise modified, the “Loan Agreement”), pursuant to which Lender has agreed to make loans to the Borrower in an aggregate maximum
principal amount not to exceed Sixteen Million Six Hundred Seventy-two Dollars ($16,672,000). 
 B. It is a material condition precedent to
the Lender’s obligation to make the loans to the Borrower under the Loan Agreement that the Guarantor enter into this Guaranty. 
 C.
Guarantor is an affiliate of the Borrower, and the proceeds of the loans to be made by the Lender under the Loan Agreement will result in a direct or indirect material economic benefit to Guarantor. 
 NOW, THEREFORE, in consideration of the foregoing, and for other good and valuable consideration receipt of which is hereby acknowledged, Guarantor
hereby agrees as follows: 
 ARTICLE 1 
 DEFINITIONS AND INTERPRETIVE PROVISIONS 
 Section 1.1 Certain Defined Terms. As used in this
Guaranty, the following terms have the following meanings: 
 “Affiliate” means any Person who, directly or indirectly,
controls or is controlled by or is under common control with such Person. 
 “AICPA” means the American Institute of
Certified Public Accountants. 
 “Agent” means ANZ Amerika Samoa Bank, an American Samoa corporation, and any Successor.

 “Business Day” means any day other than Saturday, Sunday or other day on which banks are authorized or obligated to close
in Pago Pago, American Samoa. 
 “Business Unit” means (i) a corporation, partnership or limited liability company,
business, business unit, division or product or service line, or (ii) the assets that constitute all or substantially all of the assets of any of the entities or business units described in the preceding clause (i). 
  

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 “Capital Leases” means for any Person, all obligations of such Person under leases which
shall have been, or in accordance with GAAP, should be recorded as capital leases. 
 “Capital Stock” means all shares of
capital stock of or in a Person which is a corporation, whether voting or non-voting, and including common stock and preferred stock, all membership or other equity interests of or in a Person which is a limited liability company, all partnership
and other equity interests of or in a Person which is a partnership, and all similar equity and other interests of or in any other Person. 
 “Collateral” means the property in which any of the Security Documents creates or purports to create a security interest or other lien in favor of the Lender. 
 “Commitment” means Lender’s obligation to make Loans under the Loan Agreement. 
 “Default Rate” means a per annum rate equal to eight percent (8%) above the Prime Rate (changing as such Prime Rate changes).

 “Dollar” and “$” mean lawful money of the United States. 
 “EBIT” means, for any period, an amount equal to Net Income for such period plus, the following to the extent deducted in
calculating such Net Income, (i) Interest Expense for such period and (ii) all Federal, state, local and foreign income tax expense of Elandia and its Subsidiaries on a consolidated basis for such period. 
 “EBITDA” means, for any period, an amount equal to EBIT for such period plus, to the extent deducted in calculating Net Income
included in calculating such EBIT, all depreciation and amortization expense of Elandia and its Subsidiaries on a consolidated basis for such period. 
 “Fraudulent Transfer Law” means Section 548 of the Bankruptcy Code of the United States, the Uniform Fraudulent Transfer Act, or any applicable provisions of comparable international, foreign,
Federal, state or local law. 
 “GAAP” has the meaning given in Section 1.3. 
 “Government Approval” means an approval, permit, license, authorization, certificate, or consent of any Governmental Authority.

 “Governmental Authority” means the government of the United States or any State or any foreign country or any political
subdivision of any thereof or any branch, department, agency, instrumentality, court, tribunal or regulatory authority which constitutes a part or exercises any sovereign power of any of the foregoing. 
 “Interest Expense” means, for any period, the sum (without duplication) of (i) all interest, premium payments, debt discount, fees,
charges and related expenses in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP and (ii) the
portion of rent 

  

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expense with respect to such period under Capital Leases that is treated as interest in accordance with GAAP, in each case, of or by Elandia and its
Subsidiaries on a consolidated basis for such period. 
 “Lender” has the meaning specified in the Recitals. 
 “Lien” means, for any Person, any security interest, pledge, mortgage, charge, assignment, hypothecation, encumbrance, attachment,
garnishment, execution or other voluntary or involuntary lien upon or affecting the revenues of such Person or any real or personal property in which such Person has or hereafter acquires any interest. 
 “Net Income” means, for any period, an amount equal to the net income of Elandia and its Subsidiaries on a consolidated basis for such
period. 
 “Officer’s Certificate” means a certificate executed and delivered on behalf of Guarantor by a Responsible
Officer of Guarantor. 
 “Permitted Liens” means: (i) Liens securing Taxes which are not delinquent or which remain
payable without penalty (excluding any Liens imposed pursuant to any of the provisions of ERISA) or the validity or amount of which is being contested in good faith by appropriate proceedings, which shall have the effect of staying execution if
execution is threatened or possible; (ii) Liens imposed by law (such as mechanics’, processor’s, materialmen’s, carriers’, warehousemen’s and landlord’s liens) incurred in good faith in the ordinary course of
business which are not delinquent or which remain payable without penalty or the validity or amount of which is being contested in good faith by appropriate proceedings, which shall have the effect of staying execution if execution is threatened or
possible; (iii) Liens arising in connection with worker’s compensation, unemployment insurance and social security benefits which are not delinquent or which remain payable without penalty or the validity or amount of which is being
contested in good faith by appropriate proceedings, which shall have the effect of staying execution if execution is threatened or possible; (iv) Liens incurred or deposits made in the ordinary course of business to secure the performance of
bids tenders, statutory obligations, fee and expense arrangements with trustees and fiscal agents (exclusive of obligations incurred in connection with the borrowing of money) and customary deposits granted in the ordinary course of business under
operating leases; (v) Liens securing surety, indemnity, performance, appeal and release bonds; (vi) customary rights of set off, revocation, refund or chargeback under deposit agreements or under the UCC in favor of banks where the
Guarantors or its respective Subsidiaries maintain deposits in the ordinary course of business; and (vii) Liens constituting encumbrances in the nature of zoning restrictions, condemnations, easements, encroachments, covenants, rights of way,
minor defects, irregularities and rights or restrictions of record on the title or use of real property, which, in the reasonable judgment of the Lender, do not materially detract from the value of such property or materially impair the use thereof
in the business and operations of the Guarantors or its respective Subsidiaries. 
 “Person” means any natural person,
corporation, unincorporated organization, trust, joint stock company, joint venture, association, company, limited liability company, partnership or government, or any agency or political subdivision of any government. 
  

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 “Prime Rate” means the base rate on corporate loans posted by at least 75% of the United
States’ 30 largest banks, commonly known as the U.S. Prime Rate of Interest as published from time to time in the Wall Street Journal. 
 “Responsible Officer” means, as to Guarantor, any of the Manager, Managing Member, President, the Director, the Vice President, or the Secretary of Guarantor. 
 “Solvent” means, as to any Person at a particular time, if, at such time both (a) (i) the then fair saleable value of the
property of such Person on a going concern basis is (A) greater than the total amount of liabilities (including contingent liabilities) of such Person as they mature in the ordinary course and (B) not less than the amount that will be
required to pay the probable liabilities on such Person’s then existing debts as they become absolute and matured considering all financing alternatives and potential asset sales reasonably available to such Person; (ii) such Person’s
capital is not unreasonably small in relation to its business or any contemplated or undertaken transaction; and (iii) such Person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its
ability to pay such debts as they become due; and (b) such Person is “solvent” within the meaning given that term and similar terms under applicable laws relating to fraudulent transfers and conveyances. For purposes of this
definition, the debts and liabilities of a Person, contingent or otherwise, shall include the amount of all debts and liabilities that are relevant under applicable Fraudulent Transfer Laws, and the assets of a Person shall give effect to the value
(as determined under the applicable provisions of the Fraudulent Transfer Laws) of any rights to subrogation, reimbursement, indemnification or contribution of such Person pursuant to applicable Law or pursuant to the terms of any agreement
(including the Contribution Agreement). 
 “Subsidiary” means, for any Person, each business entity directly or indirectly
controlled by such Person. For the purposes of this definition, “controlled by” shall mean the possession, directly or indirectly of the power to direct or cause the direction of the management or policies of such Subsidiary, whether
through the ownership of partnership or limited liability company interest, voting securities, by contract, or otherwise. 
 “Tax” means, for any Person, any tax, assessment, duty, levy, impost or other charge imposed by any Governmental Authority on such Person or on any property, revenue, income, or franchise of such Person and any interest or
penalty with respect to any of the foregoing. 
 “Total Current Assets” means, for any Person, all assets of such Person
that, in accordance with GAAP, would be classified as current assets on the balance sheet of a company conducting a business the same as or similar to that of such Person. 
 “Total Current Liabilities” means, for any Person, all liabilities that, in accordance with GAAP, would be classified as current
liabilities on the balance sheet of a company conducting a business the same as or similar to that of such Person. 
 “Total
Debt” means, for any Person, all liabilities that, in accordance with GAAP, would be classified as liabilities on the balance sheet of such Person. 
 “Treasury Management Contract” means any agreement among the Borrower and its Affiliates governing the provision of treasury or cash management services, including, without limitation, deposit
accounts, funds transfers, automated clearing house (ACH) transactions, zero balance accounts, concentration accounts, controlled disbursement services and lockbox accounts. 
  

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 “United States” and “U.S.” each means the United States of America.

 Section 1.2 Interpretive Provisions. The rules of construction and interpretation specified in Section 1.2 of the Loan
Agreement also apply to this Guaranty and are incorporated herein by this reference. All capitalized terms used in this Guaranty and not otherwise defined herein have the meanings specified in the Loan Agreement. 
 Section 1.3 Accounting Terms. Except as otherwise provided herein, accounting terms not specifically defined shall be construed, and all
accounting procedures shall be performed, in accordance with generally accepted United States accounting principles consistently applied from and after the date hereof (“GAAP”) and as in effect on the date of application.

 ARTICLE 2 
 GUARANTY

 Section 2.1 Guaranteed Obligations. Guarantor hereby irrevocably, absolutely and unconditionally guarantees, jointly with any
other guarantors and severally, as a primary obligor and not merely as a surety, the full and punctual payment to the Lender when due (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and at all times
thereafter, without set off, counterclaim, recoupment or deduction of any amounts owing or alleged to be owing by the Lender to the Borrower, all of the following debts, liabilities, obligations, covenants and duties (collectively, the
“Guaranteed Obligations”): 
 (a) all debts, liabilities, obligations, covenants and duties of the Borrower owing to
the Lender now or hereafter existing, whether joint or several, direct or indirect, absolute or contingent or due or to become due, arising under or in connection with the Loan Agreement or any other Loan Document or any of the transactions
contemplated thereby and including, without limitation, any interest due thereon, all fees, costs, and expenses incurred by the Lender in connection therewith; 
 (b) all debts, liabilities, obligations, covenants and duties of the Borrower owing to the Lender now or hereafter existing, whether joint or several, direct or indirect, absolute or contingent or due or to
become due, arising under or in connection with any agreement (including any master agreement and any agreement relating to any single transaction) that is an interest rate swap agreement, credit derivative agreement, forward rate contract,
commodity swap, commodity option, forward commodity contract, interest rate option, forward foreign exchange contract, cap, floor or collar agreement, currency swap contract, cross-currency rate swap contract, currency option, spot contract, or any
other similar agreement, contract, transaction or any combination of any of the foregoing, including all schedules thereto, confirmations of transactions thereunder, and documents, definitions, and agreements incorporated therein by reference or
relating thereto and including, without limitation, any interest due thereon, all fees, costs, and expenses incurred by the Lender in connection therewith, and termination payments and indemnifications relating thereto; 
  

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 (c) all debts, liabilities, obligations, covenants and duties of the Borrower to pay or reimburse
the Lender for all reasonable expenses including, without limitation, attorneys’ fees (including allocated charges of internal legal counsel), incurred by the Lender in connection with the enforcement, attempted enforcement, or preservation of
any rights or remedies under any of the documents, instruments and agreements referred to in subsections (a) through (b) above, including, without limitation, all such costs and expenses incurred during any “workout” or
restructuring in respect of the loans made under the Loan Agreement and during any legal proceeding, including, without limitation, any proceeding under any applicable international, foreign, Federal, state or local bankruptcy, insolvency or other
similar debtor relief laws; and 
 (d) all interest and fees on any of the foregoing, whether accruing prior to or after the
commencement by or against the Borrower of any proceeding under any applicable bankruptcy, insolvency or other similar debtor relief laws naming the Borrower as the debtor in such proceeding, regardless of whether such interest and fees are allowed
claims in such proceeding. 
 This Guaranty is a guaranty of payment and not merely of collection. Guarantor agrees that its obligations hereunder are, and
shall be absolute, independent and unconditional under any and all circumstances. 
 Section 2.2 Guarantors’ Consent. Guarantor
hereby consents to all terms and conditions of agreements heretofore or hereafter made between the Lender and the Borrower (including without limitation the Loan Agreement and the other Loan Documents) and further consents that the Lender may
without further consent or disclosure and without affecting or releasing the obligations of Guarantor hereunder: (a) surrender, exchange, release, assign, or sell any collateral or waive, release, assign, sell, or subordinate any security
interest, in whole or in part; (b) waive or delay the exercise of any rights or remedies of the Lender against the Borrower; (c) waive or delay the exercise of any rights or remedies of the Lender against any surety or guarantor
(including, without limitation, rights or remedies of the Lender against Guarantor under this Guaranty); (d) waive or delay the exercise of any rights or remedies of the Lender in respect of any collateral or security interest now or hereafter
held; (e) release any surety or guarantor; (f) renew, extend, waive or modify the terms of any Guaranteed Obligation or the obligations of any surety or guarantor, or any instrument or agreement evidencing the same; (g) renew, extend,
waive or modify the terms of any Loan Document or any other security agreement, pledge, assignment, deed of trust, mortgage or other security document; (h) apply payments received from the Borrower or any surety or guarantor or from any
collateral, to any indebtedness, liability, or obligations of the Borrower or such sureties or guarantors whether or not a Guaranteed Obligation hereunder; and (i) realize on any security interest, judicially or nonjudicially, with or without
preservation of a deficiency judgment. 
 Section 2.3 Guarantor’s Waiver. Guarantor waives any action on delinquency in respect
of the Guaranteed Obligations or any part thereof, including any requirement, substantive or procedural, that (a) the Lender pursue any foreclosure action, realize or attempt to realize on any security or preserve or enforce any deficiency
claim against the Borrower or any surety or guarantor or any other Person after any realization; (b) a judgment first be sought or rendered against the Borrower or any surety or guarantor or any other 

  

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Person; (c) the Borrower or any surety or guarantor or any other Person be joined in any action; or (d) a separate action be brought against the
Borrower under the Loan Agreement or any other Loan Document. Guarantor waives and releases all right to require marshaling of assets and liabilities or sale in inverse order of alienation of any security for the Guaranteed Obligations. Guarantor
further waives notice of (a) the Lender’s acceptance of this Guaranty or its or their intention to act or its or their actions in reliance hereon; (b) the present existence or future incurring of any Guaranteed Obligations or any
terms or amounts thereof or any change therein; (c) any default by the Borrower or any surety or guarantor; (d) the obtaining of any guaranty or surety agreement (in addition to this Guaranty); (e) the obtaining of any pledge,
assignment or other security for any Guaranteed Obligations; (f) the release of any surety or guarantor; (g) the release of any collateral; (h) any change in the Borrower’s business, operations, properties, financial condition or
prospects; (i) any renewal, extension or modification of the terms of any Guaranteed Obligation or of the obligations or liabilities of any surety or guarantor or any instruments or agreements evidencing the same; (j) any acts or omissions
of the Lender consented to in Section 2.2 hereof; and (k) any other demands or notices whatsoever with respect to the Guaranteed Obligations or this Guaranty. Guarantor further waives notice of presentment, demand, protest, notice
of nonpayment and notice of protest in relation to any instrument or agreement evidencing any Guaranteed Obligation. 
 Section 2.4
Guaranty Survives Foreclosure. The Lender, at its option and in its sole discretion, may proceed against any collateral securing any of the Guaranteed Obligations by way of foreclosure or any other lawful remedy for the enforcement of its or
their rights, and the obligations of Guarantor under this Guaranty shall survive the Lender’s exercise of any such right or remedy, and shall not be extinguished or impaired thereby. Guarantor hereby waives and relinquishes any claim or defense
based upon the exercise by the Lender of any lawful remedy, election of remedies, or discharge of the Borrower’s obligation to pay and perform the Guaranteed Obligations. 
 Section 2.5 Guarantors’ Knowledge of Borrower’s Economic Conditions. Guarantor represents and warrants to the Lender that it has
reviewed such documents and other information as it has deemed appropriate in order to permit it to be fully apprised of the Borrower’s business, operations, properties, financial condition and prospects and has, in entering into this Guaranty
made its own credit analysis independently and without reliance upon any information communicated to it by the Lender. Guarantor covenants for the benefit of the Lender to remain apprised of all material economic or other developments relating to or
affecting the Borrower, its business, operations, properties, financial condition and prospects. Without limiting the foregoing, Guarantor agrees to enter into such agreements and arrangements with the Borrower as may be necessary to ensure its
receipt of notice of such material changes and of periodic financial statements. Guarantor expressly waives any requirement that the Lender advise, disclose, discuss or deliver notice to Guarantor regarding the Borrower’s business, operations,
properties, financial condition or prospects or with respect to any default by the Borrower in its performance of the Guaranteed Obligations whether or not knowledge of such condition, operations or default is or reasonably could be in the
possession of Guarantor and whether or not such knowledge is in the possession of the Lender before or after the extension of any credit giving rise to Guaranteed Obligations by the Borrower. 
  

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 Section 2.6 Unconditional Guaranty. The obligations of the Guarantor under this Guaranty are
absolute and unconditional without regard to the obligations of any other Person. The obligations of the Guarantor hereunder shall not be in any way limited or effected by any circumstance whatsoever including, without limitation, (a) any act
or omission of the Lender consented to in Section 2.2 hereof; (b) the failure to receive any notice, demand, presentment or protest waived in Section 2.4 hereof; (c) any failure by the Borrower or any surety or
guarantor or any other Person to perform or comply with the Guaranteed Obligations or the terms of any instrument or agreement relating thereto; (d) any change in the name, purpose, membership units or organization of the Borrower or any surety
or guarantor or any other Person; (e) any irregularity, defect or unauthorized action by the Lender, the Borrower or any surety or guarantor or any other Person or any of its respective officers, directors members, managers or other agents in
executing and delivering any instrument or agreements relating to the Guaranteed Obligations or in carrying out or attempting to carry out the terms of any such agreements; (f) any insolvency, bankruptcy, reorganization or similar proceeding by
or against the Borrower, Lender, Guarantor or any other surety or guarantor or other Person; (g) any setoff, counterclaim, recoupment, deduction, any defense or other right which Guarantor may have against the Lender, the Borrower or any surety
or guarantor or any other Person for any reason whatsoever whether related to the Guaranteed Obligations or otherwise; or (h) any other circumstance which might constitute a legal or equitable discharge or defense, in whole or in part, of a
surety or guarantor. By signing this Guaranty, Guarantor hereby waives all defenses of a surety to which it may be entitled by statute or otherwise. 
 Section 2.7 Continuing Guaranty. This Guaranty is a continuing guaranty and shall be binding upon Guarantor regardless of how long before or after the date hereof Guaranteed Obligation was or is incurred.
Credit may 
 be granted or continued from time to time by the Lender to the Borrower without notice to or authorization from Guarantor regardless of the
Borrower’s then-existing financial or other condition. Notwithstanding the foregoing, however, Guarantor may limit its obligations hereunder by delivery of written notice to such effect to the Lender. Such notice will limit Guarantor’s
obligations hereunder to (a) Guaranteed Obligations incurred by the Borrower, or arising out of acts or omissions of the Borrower occurring, on or prior to a date five (5) Business Days after such notice is received by Lender; (b) any
extensions, renewals, or modifications of such Guaranteed Obligations; and (c) any additional fees and expenses incurred by the Lender (including, without limitation, attorney’s fees and costs) in seeking to enforce or collect such
Guaranteed Obligations. Guarantor agrees that this Guaranty shall continue to be effective or shall be reinstated as the case may be if at any time any payment to the Lender of any of the Guaranteed Obligations is rescinded or must be restored or
returned by the Lender upon the insolvency, bankruptcy or reorganization of the Borrower, all as though such payment had not been made. In the event this Guaranty is preceded or followed by any other agreement of suretyship or guaranty by Guarantor
or others, all shall be deemed to be cumulative, and the obligations of Guarantor hereunder shall be in addition to those stated in any other suretyship or guaranty agreement. 
 Section 2.8 No Reliance. Guarantor acknowledges that the Lender intends to obtain collateral and other guaranties to secure the repayment of the
Guaranteed Obligations. Guarantor represents and warrants to the Lender, however, that in making this Guaranty it is not relying upon the Lender obtaining any guaranty agreements (other than this Guaranty) or any collateral pledged or assigned to
secure repayment of the Guaranteed Obligations. Guarantor specifically acknowledges that the Lender’s obtaining any such collateral 

  

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or guaranty agreements is not a condition to the enforcement of this Guaranty. If the Lender should simultaneously or hereafter elect to attempt to take
collateral or additional guaranty agreements to secure repayment of the Guaranteed Obligation and if its or their efforts to do so should fail in any respect including, without limitation, a determination that the agreement purporting to provide
such additional guaranty or security interest is invalid or unenforceable for any reason, this Guaranty shall, nonetheless, remain in full force and effect. 
 Section 2.9 Borrower Indebtedness to Guarantor. Guarantor agrees that if, for any reason whatsoever, the Borrower now or hereafter becomes indebted, liable or obligated to Guarantor, all debts, liabilities and
obligations, together with all interest thereon and fees and other charges in connection therewith, and all liens, security interests, charges and other security devices, shall at all times, be second, subordinate and inferior in right of payment,
in lien priority and in all other respects to the Guaranteed Obligations, and all liens, collateral assignments, security interests and other security devices securing the Guaranteed Obligations. Without the prior written consent of the Lender,
subordinated debts, liabilities and obligations of Borrower, other than intercompany loans and advances, shall not be paid in whole or in part nor will Guarantor cause or permit any Person controlled by Guarantor to accept any payment of or on
account of any debts, liabilities and obligations of Borrower, other than intercompany loans and advances, while this Guaranty is in effect; provided that, if an Event of Default under the Loan Agreement occurs and is continuing unremedied beyond
all applicable cure periods, the Guarantor agrees that it shall not be paid by Borrower in whole or in part on any intercompany loans or advances until the time when such Event of Default is cured. To the extent necessary to pay and discharge the
Guaranteed Obligations in full, Guarantor shall file, in any bankruptcy or other proceeding in which the filing of claims is required by law, all claims that Guarantor may have against the Borrower relating to any debts, liabilities and obligations
of the Borrower to Guarantor and will assign to Lender all rights of Guarantor thereunder. If Guarantor does not file any such claim, the Lender, as attorney in fact for Guarantor, is hereby authorized to do so in the name of Guarantor or, in the
Lender’s sole discretion, to assign the claim to a nominee and to cause a proof of claim to be filed in the name of the Lender’s nominee, authorization to be coupled with an interest. To the extent necessary to pay and discharge the
Guaranteed Obligations in full, in all cases, whether in administration, bankruptcy or otherwise, the Person authorized to pay claim shall pay to the Lender the full amount thereof and, to the full extent necessary for that purpose, Guarantor hereby
assigns to Lender all of Guarantor’s rights to any payments or distributions to which Guarantor would otherwise be entitled. 
 Section 2.10 Limitations on Guarantor’s Rights. Guarantor hereby agrees that it will not exercise any rights of subrogation which it may acquire by payment or performance of the Guaranteed Obligations until all of the Guaranteed
Obligations shall have been finally and indefeasibly paid in full (other than contingent indemnification obligations) and neither the Lender shall have any commitment to make loans or otherwise extend credit to the Borrower under the Loan Agreement.
In the event that the Lender or Guarantor shall receive any payment on account of such rights of subrogation while any Guaranteed Obligations remain outstanding or while the Lender remains committed to make loans or otherwise extend credit to the
Borrower under the Loan Agreement, Guarantor agrees to pay such amounts so received to the Lender for immediate application to the outstanding Guaranteed Obligations or, in the Lender’s sole discretion, to be held as cash collateral by the
Lender to secure repayment of the Guaranteed Obligations. 
  

 9 

 ARTICLE 3 
 REPRESENTATIONS AND WARRANTIES 
 Guarantor represents and warrants to the Lender as follows:

 Section 3.1 Existence and Power. Guarantor is a corporation, validly existing and in good standing under the laws of the
jurisdiction of its incorporation. Guarantor is duly qualified to do business in each jurisdiction where the failure to so qualify would be likely to have a material adverse effect on the business, operations, properties or financial condition of
Guarantor. Guarantor has full corporate power, authority and legal right to carry on its business and operations as presently conducted, to own and operate its properties and assets, and to execute, deliver and perform this Guaranty and the other
Guarantor Documents to which it is a party. 
 Section 3.2 Authorization. The execution, delivery and performance by Guarantor of this
Guaranty and the other Guarantor Documents to which Guarantor is a party, have been duly authorized by all necessary corporate action of Guarantor, do not require any shareholder approval or the approval or consent of any trustee or the holders of
any Indebtedness of Guarantor, except such as have been obtained (certified copies thereof having been delivered to the Lender), do not contravene any law, regulation, rule or order binding on it or its certificate or articles of incorporation and
bylaws and do not contravene the provisions of or constitute a default under any material indenture, mortgage, contract or other agreement or instrument to which Guarantor is a party or by which Guarantor or any of its properties may be bound or
affected. 
 Section 3.3 Government Approvals, Etc. No Government Approval or filing or registration with any Governmental Authority
is required for the making and performance by Guarantor of this Guaranty or any other Guarantor Documents to which Guarantor is a party, or in connection with any of the transactions contemplated hereby or thereby, except such as have been
heretofore obtained and are in full force and effect (certified copies thereof having been delivered to the Lender). 
 Section 3.4
Binding Obligations, Etc. This Guaranty has been duly executed and delivered by Guarantor and constitutes, and the other Guarantor Documents when duly executed and delivered will constitute, the legal, valid and binding obligations of Guarantor
enforceable against Guarantor in accordance with its respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, similar laws affecting creditors’ rights generally or general principles of equity.

 Section 3.5 Litigation. Except as specifically disclosed in Schedule 1 attached hereto, there are no material actions,
proceedings, investigations, or claims against or affecting Guarantor now pending before any court, arbitrator, or Governmental Authority (nor to Guarantor’s knowledge has any thereof been threatened nor does any basis exist therefor) which if
determined 

  

 10 

 
adversely to Guarantor would (a) have a material adverse effect on the business, operations, properties or financial condition of Guarantor and its
Subsidiaries taken as a whole, (b) impair or defeat the Lien of the Lender on any material portion of the Collateral or any material rights of Guarantor therein, or (c) result in a judgment or order against Guarantor (in excess of
insurance coverage) for more than One Hundred Thousand Dollars ($100,000) in any one case or One Hundred Fifty Thousand Dollars ($150,000) in the aggregate. 
 Section 3.6 Financial Condition. 
 (a) Pro forma Financial Information. Any pro forma
financial information, statements and projections furnished to the Lender by or on behalf of the Guarantor in connection with this Guaranty and the transactions contemplated hereby and thereby, were prepared and furnished to Lender in good faith and
were based on estimates and assumptions that were believed by the management of Guarantor to be reasonable in light of then current and foreseeable business conditions of the Guarantor and represented Guarantor’s management’s good faith
estimate of the projected financial performance of the Guarantor and its Subsidiaries based on the information available to the Responsible Officers of the Guarantor at the time so furnished. 
 (b) Financial Statements. The March 31, 2009 consolidated balance sheet of Elandia and its Subsidiaries furnished to the Agent pursuant to
Sections 4.8(a) or (b) and (the “Current Balance Sheet”), and the related statements of income and retained earnings of the Guarantor and its Subsidiaries for the fiscal year then ended, copies of which have
been furnished to Lender, fairly present the consolidated financial condition of Elandia as at such date, all determined in accordance with GAAP. Since the date of the Current Balance Sheet there has been no material adverse change in the business,
operations, properties or financial condition of the Guarantor and its Subsidiaries taken as a whole. 
 Section 3.7 Solvency.
Guarantor is Solvent and shall be Solvent immediately after the consummation of the transactions contemplated by this Guaranty and the other Loan Documents. 
 Section 3.8 Title and Liens. Guarantor and its Subsidiaries have good and marketable title to each of the properties and assets reflected in the Current Balance Sheet, except such as have been since sold or
otherwise disposed of in the ordinary course of business. Guarantor has disclosed any material Liens on its assets through disclosure in publicly-available reports filed with the Securities and Exchange Commission. 
 Section 3.9 Taxes. Guarantor has filed all tax returns and reports required of it, has paid all Taxes which are due and payable and before they
have become delinquent, except for Taxes (a) whose amount is not individually or in the aggregate a Material Amount, or (b) whose amount, applicability or validity is currently being contested in good faith by appropriate proceedings where
reserves or other appropriate provisions required by GAAP shall have been established therefor. The charges, accruals and reserves on the books of Guarantor and its Subsidiaries in respect of Taxes for all fiscal periods to date are accurate, in all
material respects. There are no material questions or disputes between Guarantor and any Governmental Authority with respect to any Taxes. As used in this Section 3.9, “Material Amount” shall mean an amount of Two Hundred
Thousand Dollars ($200,000) or more or an amount otherwise material to the business, operations, properties or financial condition of Guarantor or the Guarantors and its Subsidiaries taken as a whole. 
  

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 Section 3.10 Other Agreements. Guarantor is not in breach of or default in any material respect
under any material agreement to which it is a party or which is binding on it or any of its assets. 
 Section 3.11 Subsidiaries.
Except as specifically disclosed in Schedule 3 attached hereto, Guarantor does not own any material Subsidiaries. To the extent such information is readily available, Schedule 3 attached hereto accurately sets forth the
jurisdictions of incorporation or organization of each Subsidiary of Guarantor, and (a) in the case of a Subsidiary that is a corporation, the authorized capitalization of each Subsidiary, the number of shares of each class of capital stock
issued and outstanding of each Subsidiary and the number and percentage of outstanding shares of each such class of capital stock owned by Guarantor, or (b) in the case of a Subsidiary that is a limited liability company or partnership, the
number of partnership or membership units of each Subsidiary and the number and percentage of partnership or membership units owned by Guarantor. 
 Section 3.12 Representations as a Whole. This Guaranty, the other Loan Documents, the financial statements referred to in Section 3.6, and all other instruments, documents, certificates and statements furnished to the
Agent or Lender by or on behalf of the Borrower or Guarantor, taken as a whole, do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements contained herein or therein, in light
of the circumstances under which they were made, not misleading. Guarantor’s Securities and Exchange Commission filings disclose any and all facts which could reasonably be expected to have a material adverse effect on the business, operations,
properties or financial condition of the Guarantor or the ability of the Guarantor to perform its obligations hereunder. 
 ARTICLE 4 

 AFFIRMATIVE COVENANTS 
 So long as Lender shall have any Commitment under the Loan Agreement or there shall be any outstanding Loans and until payment in full of each Loan and performance of all other obligations of the Borrower and the Guarantors under the other
Loan Documents, Guarantor agrees that it will do all of the following unless Lender and the Agent shall otherwise consent in writing. 
 Section 4.1 Preservation of Corporate Existence, Etc. Guarantor will, and will cause its respective Subsidiaries to, preserve and maintain their existence, rights, franchises and privileges in the jurisdictions of their organization
and will, and will cause its respective Subsidiaries to, qualify and remain qualified as foreign corporations, companies or entities in each jurisdiction where qualification is necessary or advisable in view of their business and operations or the
ownership of their properties, provided, however, that Guarantor may cause certain immaterial subsidiaries to be dissolved. 
 Section 4.2
Visitation Rights. Guarantor will permit Agent and/or Lender and such Persons as Lender may designate, at any reasonable time, and from time to time, and at Lender’s expense except during the continuation of an Event of Default by Borrower

  

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under the Loan Agreement and then at Borrower’s and Guarantor’s expense, subject to execution of appropriate confidentiality agreements, to examine
and make copies of and abstracts from the records and books of account of and to visit the properties of Guarantor and its Subsidiaries and to discuss the affairs, finances and accounts of Borrower, Guarantor and its Subsidiaries with any of
Guarantor’s officers or directors. Without limiting the generality of the foregoing, the Borrower agrees to permit Persons retained by the Agent and/or Lender at any reasonable time, and from time to time, subject to execution of appropriate
confidentiality agreements, and at Lender’s expense except during the continuation of an Event of Default by Borrower under the Loan Agreement and then at Borrower’s and Guarantor’s expense, to conduct field audits of the Collateral,
to examine and make copies of and abstracts from the records and books of account of and to visit the properties of Guarantor and its Subsidiaries. 
 Section 4.3 Keeping of Books and Records. Guarantor will, and will cause its Subsidiaries to, keep adequate records and books of account in which complete entries will be made, in accordance with GAAP, reflecting in all material
respects all financial transactions of Guarantor and its Subsidiaries. 
 Section 4.4 Maintenance of Property, Etc. Guarantor will,
and will cause its respective Subsidiaries to, maintain and preserve all of its material properties in good working order and condition, ordinary wear and tear excepted, and subject to expected life expectancy applicable to particular assets, and
will from time to time make all needed repairs, renewals, or replacements so that the efficiency of such properties shall be fully maintained and preserved. Guarantor will not take or fail to take any action, or permit any action to be taken by
others that are subject to Guarantor’s control which would affect the validity and enforcement of its or its Subsidiaries’ Intellectual Property, or impair the value of such Intellectual Property. 
 Section 4.5 Compliance With Laws, Etc. Guarantor will, and will cause its respective Subsidiaries to, comply in all material respects with all
laws, regulations, rules, and orders of Governmental Authorities applicable to Guarantor, such Subsidiary or to its or their business, operations or properties, except any thereof whose validity is being contested in good faith by appropriate
proceedings upon stay of execution of the enforcement thereof and with provision having been made to the satisfaction of the Lender for the payment of any fines, charges, penalties or other costs in respect thereof in the event the contest is
determined adversely to Guarantor or its Subsidiary. 
 Section 4.6 Other Obligations. Guarantor will, and will cause its respective
Subsidiaries to, pay and discharge before the same shall become delinquent all material Indebtedness, Taxes, and other obligations for which Guarantor or its Subsidiary is liable or to which its income or property is subject and all claims for labor
and materials or supplies which, if unpaid, might become by law a lien upon assets of Guarantor or its Subsidiary, except any thereof whose validity, applicability or amount is being contested in good faith by Guarantor or its Subsidiary in
appropriate proceedings with provision having been made to the satisfaction of the Lender for the payment thereof in the event the contest is determined adversely to Guarantor or its Subsidiary. 
  

 13 

 Section 4.7 Insurance. Guarantor will, and will cause its respective Subsidiaries to, keep in
force upon all of its and their business, operations and properties, policies of insurance carried with responsible companies in such amounts and covering all such risks as shall be customary in the industry and as shall be reasonably satisfactory
to the Lender. Without limiting the generality of the foregoing, Guarantor will, and will cause its Subsidiaries to maintain or cause to be maintained all insurance required under the terms of any Security Document. 
 Section 4.8 Financial Information. The Guarantors will deliver to the Lender: 
 (a) Annual Guarantor Financial Statements. As soon as available and in any event within one hundred twenty (120) days after the end of each
fiscal year of Guarantor, the consolidated balance sheet of Guarantor and its Subsidiaries as of the end of such fiscal year and the related consolidated statements of revenue and expenses, shareholder’s equity and cash flows for such year,
prepared by independent certified public accountants selected by Guarantor and approved by the Agent (which approval shall not be unreasonably withheld or delayed) and accompanied by a review report thereon by such independent certified public
accountants which report shall be prepared in accordance with GAAP and the standards of the AICPA and shall not be qualified by reason of restricted or limited examination of any material portion of the records of the Guarantor or its Subsidiaries;
and 
 (b) Quarterly Guarantor Financial Statements. As soon as available and in any event within thirty (30) days after the end
of each fiscal quarter of Guarantor, the consolidated balance sheet of Guarantor and its Subsidiaries as of the end of such fiscal quarter and the related consolidated statements of profits and losses, revenue and expenses, shareholder’s equity
and cash flows for such fiscal quarter, prepared by Guarantor and accompanied by an Officer’s Certificate certifying that such financial statements have been prepared in conformity with GAAP and the standards of the AICPA (subject to year-end
audit adjustments and the absence of footnote disclosures) and, in all material respects, present fairly the financial position and the results of operations of Guarantor and its Subsidiaries as at the end of and for such fiscal quarter; and

 (c) Other. All other statements, reports and other information as the Lender may reasonably request concerning the financial
condition and business affairs of the Guarantor or any of its Subsidiaries. 
 Section 4.9 Reserved. 
 Section 4.10 Notification. Promptly after learning thereof, the Guarantor will notify the Lender of (a) any action, proceeding, investigation
or claim against or affecting Guarantor or any of its Subsidiaries instituted before any court, arbitrator or Governmental Authority or, to Guarantor’s knowledge threatened to be instituted, which if determined adversely to Guarantor or any of
its Subsidiaries would be likely to have a material adverse effect on the business, operations, properties or financial condition of Guarantor, its Subsidiary or the Guarantor and its Subsidiaries taken as a whole, or to impair or defeat the Lien of
the Lender on any material portion of the Collateral or the rights of Guarantor or any Subsidiary of Guarantor therein, or would reasonably be expected to result in a judgment or order against Guarantor or any Subsidiary of Guarantor (in excess of
insurance coverage) for more than Five Hundred Thousand Dollars ($500,000) or, when combined with all other pending or threatened claims, more than Seven 
  

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 Hundred Fifty Thousand Dollars ($750,000); (b) any substantial dispute between Guarantor or any Subsidiary of
Guarantor and any Governmental Authority would reasonably be expected to cause a material adverse effect; (c) any labor controversy which has resulted in or, to the Guarantor’s knowledge, threatens to result in a strike which would
materially affect the business or operations of Guarantor or any Subsidiary of Guarantor; (d) if Guarantor or any member of a Controlled Group gives or is required to give notice to the PBGC of any “reportable event” (as defined in
subsections (b)(1), (2), (5) or (6) of Section 4043 of ERISA) with respect to any Plan (or the Internal Revenue Service gives notice to the PBGC of any “reportable event” as defined in subsection (c)(2) of Section 4043
of ERISA and Guarantor obtains knowledge thereof) which might constitute grounds for a termination of such Plan under Title IV of ERISA, or knows that the plan administrator of any Plan has given or is required to give notice of any such reportable
event, a copy of the notice of such reportable event given or required to be given to the PBGC; (e) the occurrence of any Event of Default or Default; and (f) the occurrence of an event which results in a material adverse change in the
business, operations, properties or financial condition of Guarantor or its Subsidiaries taken as a whole. In the case of the occurrence of an Event of Default or Default or the occurrence of an event which results in a material adverse change in
the business, operations, properties or financial condition of Guarantor or the Guarantor and its Subsidiaries taken as a whole, the Guarantor will deliver to the Lender an Officer’s Certificate specifying the nature thereof, the period of
existence thereof, if applicable, and what action the Guarantor proposes to take with respect thereto. 
 Section 4.11 Additional
Payments; Additional Acts. From time to time, the Guarantor will (a) pay or reimburse the Lender on request for all Taxes (other than Taxes imposed on the net income of the Lender) imposed on this Guaranty and the other Guarantor Documents
to which Guarantor is a party; (b) pay or reimburse the Lender on request for all reasonable costs, expenses and fees, including, without limitation, attorneys’ fees (including allocated costs of in-house counsel), incurred by the Lender
in connection with the negotiation, preparation and execution of this Guaranty and the other Guarantor Documents to which Guarantor is a party and any and all amendments, waivers, consents and similar documents pertaining hereto and thereto;
(c) if requested by the Lender, obtain and promptly furnish to the Lender evidence of all such Government Approvals as may be required to enable Guarantor to comply with its obligations hereunder and under the other Guarantor Documents to which
Guarantor is a party and to continue its business and operations as conducted on the date hereof without material interruption or interference; and (d) execute and deliver all such instruments and to perform all such other acts as the Lender
may reasonably request to carry out the transactions contemplated by this Guaranty and the other Guarantor Documents to which Guarantor is a party and to maintain the continuous perfection and priority of the Lender’s Lien on all Collateral.
The obligations of Guarantor under this Section 4.11 shall survive the payment of the Loans and the termination of this Guaranty. 
 ARTICLE 5 
 NEGATIVE COVENANTS 
 So long as Lender shall have any Commitment under the Loan Agreement or there shall be any outstanding Loans and until payment in full of each Loan and performance of all other obligations of the Borrower and the
Guarantor under the other Loan Documents, Guarantor agrees that it will not do any of the following unless Lender shall otherwise consent in writing. The negative 

  

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covenants under this Article 5 are limited to the South Pacific Subsidiaries of the Guarantor. “South Pacific Subsidiaries” shall mean ASHC, SASC,
ASHUC, AST Telecom, Inc., American Entertainment, Inc., Datec (Fiji) Limited and Generic Technology Limited. For the avoidance of doubt, the negative covenants of this Article 5 shall not apply to Guarantor or its Subsidiaries other than its South
Pacific Subsidiaries, except as specifically set forth in Section 5.2, 5.3 or 5.4 herein. 
 Section 5.1 Dividends, Management Fees,
Etc. Guarantor shall cause its South Pacific Subsidiaries to not (a) declare or pay any dividend or distribution (except dividends or distributions payable in its Capital Stock) on any shares or units of any class of the respective South
Pacific Subsidiary’s Capital Stock or apply any assets to the purchase, redemption or other retirement of, or set aside any sum for the payment of any dividends on or for the purchase, redemption or other retirement of, or make any other
distribution by reduction of capital or otherwise in respect of, any shares of any class of Capital Stock of the respective South Pacific Subsidiary’s Capital Stock, except for dividends and distributions declared and paid by any South Pacific
Subsidiary to the Borrower, or (b) make any other distribution or transfer to such South Pacific Subsidiary’s members or stockholders, whether in the form of dividends, distributions, salaries, bonuses, management fees or otherwise, in an
amount greater than One Million Dollars ($1,000,000) in any fiscal year of Guarantor, increased annually by the percentage that the United States Department of Labor, Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers (CPI-U)
for Honolulu, Hawaii (Index 1982-84=100) has increased between the end of the 2005 calendar year and the end of the calendar year preceding the calendar year in which the salaries, benefits and bonuses are paid to such members or stockholders.

 Section 5.2 Transactions With Affiliates. Guarantor shall not and Guarantor shall cause its respective South Pacific Subsidiaries
to not, enter into any transaction with any Affiliate of the Borrower or of the Guarantor, except upon fair and reasonable terms no less favorable to Guarantor or such South Pacific Subsidiary than it would obtain in a comparable arm’s-length
transaction with a Person not an Affiliate of Guarantor or such Subsidiary; provided, however, that Guarantor or any of South Pacific Subsidiaries may enter into Treasury Management Contracts with Affiliates of Guarantor under terms
that Guarantor or such South Pacific Subsidiary deems reasonable under the circumstances. 
 Section 5.3 Consolidations and Mergers.
Guarantor shall not and Guarantor shall cause its respective South Pacific Subsidiaries to not, liquidate, dissolve or enter into any merger or consolidation with or into, or sell, transfer, lease or otherwise dispose of (whether in one transaction
or in a series of transactions) all or substantially all of its assets to or in favor of, any Person, except: (a) any South Pacific Subsidiary may liquidate, dissolve, merge, consolidate with or into, or transfer any of its assets to Guarantor
or any direct or indirect wholly-owned Subsidiary of Guarantor; provided that Guarantor or such wholly-owned Subsidiary shall be the continuing or surviving corporation or company; (b) Guarantor may enter into a merger or consolidation
or similar business transaction where Guarantor is the continuing or surviving entity; and (c) Guarantor or any of the South Pacific Subsidiaries may sell, transfer, lease or otherwise dispose of its assets as permitted under
Section 5.4. 
  

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 Section 5.4 Dispositions of Assets. Guarantor shall not and Guarantor shall cause its respective
South Pacific Subsidiaries to not, sell, transfer, lease or otherwise dispose of (whether in one or a series of transactions) all or any substantial portion of its businesses or assets or of any Collateral (including accounts and notes receivable,
with or without recourse) or enter into any agreement to do any of the foregoing, except: (a) sales of inventory in the ordinary course of business; (b) Guarantor or any South Pacific Subsidiary may sell, lease or otherwise transfer any of
its assets to Guarantor or any direct or indirect wholly-owned Subsidiary of Guarantor; provided that Guarantor or such wholly-owned Subsidiary shall be the continuing or surviving corporation or company, if applicable; (c) Guarantor or
any South Pacific Subsidiary may sell obsolete assets or assets no longer used or useful in the business of Guarantor or such South Pacific Subsidiary; provided that the net proceeds from the sale of such assets are paid to the Agent (or
Lender) to be applied against the Loans or held by the Agent as cash collateral to secure all obligations of Borrower owed to Agent and Lenders; and (d) for Guarantor and ASHUC only, any sale, lease or transfer of the Excess Cable with prior
written notice to the Agent. 
 Section 5.5 Indebtedness. Guarantor shall cause its respective South Pacific Subsidiaries to not,
create, incur or become liable for any Indebtedness except: (a) the Loans; (b) Indebtedness existing as of the date of this Guaranty and reflected on the pro forma balance sheet referred to in Section 3.6(a);
(c) current accounts payable or accrued expenses incurred by any South Pacific Subsidiaries in the ordinary course of business; (d) Indebtedness permitted under Section 5.6; (e) intercompany Indebtedness owing by any South
Pacific Subsidiaries to Guarantor or any other Subsidiary permitted under Section 5.8; (f) Indebtedness arising under Swap Contracts between Guarantor or any of South Pacific Subsidiaries and the Lender or any Affiliate of the Lender;
(g) where debt is in the form of convertible notes, or will become future equity and does not cause the breach of any affirmative covenants; (h) Indebtedness that is incurred and secured by assets held by subsidiaries acquired after
1/01/2007; and (i) for ASHUC only, any Indebtedness related to the Excess Cable with prior written notice to the Agent. 
 Section
5.6 Guaranties, Etc. Guarantor shall cause its respective South Pacific Subsidiaries to not, assume, guaranty, endorse or otherwise become directly or contingently liable for, nor obligated to purchase, pay or provide funds for payment of, any
obligation or Indebtedness of any other Person, except: (a) guaranties of any Indebtedness permitted under Section 5.5; (b) by endorsement of negotiable instruments for deposit or collection or by similar transactions in the
ordinary course of business; (c) with respect to customary indemnification obligations incurred in connection title insurance agreements; (d) with respect to performance, surety, bid, appeal or similar bonds incurred in the ordinary course
of business; and (e) obligations existing as of the date of this Guaranty, reflected on the pro forma balance sheet referred to in Section 3.6(a) and in amounts not greater than the amounts referred to therein.

 Section 5.7 Liens. Guarantor shall cause its respective South Pacific Subsidiaries to not, create, assume or suffer to exist any
Lien on any of its assets except: (a) Liens in favor of the Lender arising pursuant to the Security Documents or as otherwise permitted or required under this Guaranty; (b) Liens securing Indebtedness permitted under
Section 5.5; (c) Permitted Liens; and (d) Liens specifically disclosed in Schedule 2 attached hereto. 
  

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 Section 5.8 Investments. Guarantor shall cause its respective South Pacific Subsidiaries to not,
make any loan or advance to any Person or purchase or otherwise acquire the Capital Stock or obligations of, or any other equity or interest in, any Person, or all or substantially all of the assets of any Business Unit or any Person (collectively,
“Investments”) or enter into any agreement to do any of the foregoing, except: (a) Investments held in the form of Cash Equivalents; (b) receivables owing to Guarantor or any of its Subsidiaries arising in the ordinary
course of business; (c) Investments existing as of the date of this Guaranty, reflected on the pro forma balance sheet referred to in Section 3.6(a) and in amounts not greater than the amounts referred to therein;
(d) Investments made by such South Pacific Subsidiary to or in the Borrower; (e) Investments made by the South Pacific Subsidiary in the form of loans and advances to Affiliates of the Borrower under or in connection with Treasury
Management Contracts the ordinary course of business; provided that the aggregate principal amount of all such loans and advances does not exceed One Hundred Thousand Dollars ($100,000) at any one time outstanding; and (f) for ASHUC
only, Investments relating to the Excess Cable with prior written notice to the Agent. 
 Section 5.9 Operations. Guarantor shall
cause its respective South Pacific Subsidiaries to not, engage in any activity which is substantially different from or unrelated to the present business activities of such South Pacific Subsidiaries nor discontinue any portion of their present
business activities taken as a whole which constitutes a substantial portion thereof. 
 Section 5.10 Securities. Guarantor shall
cause its respective South Pacific Subsidiaries to not, issue, sell, or otherwise distribute any Capital Stock, bond, note, debenture or other security, except the South Pacific Subsidiaries may issue notes or other debt instruments evidencing
Indebtedness permitted by this Guaranty. 
 Section 5.11 Accounting Change. Guarantor shall not, and shall cause its respective South
Pacific Subsidiaries to not, change its fiscal year end from December 31st and shall not make any significant change in accounting policies or reporting practices other than changes required by GAAP or otherwise required by law. 
 ARTICLE 6 
 MISCELLANEOUS

 Section 6.1 No Waiver; Cumulative Remedies. No failure by the Lender to exercise, and no delay in exercising, any right, power
or remedy under this Guaranty shall operate as a waiver thereof, nor shall any single or partial exercise of any right, power or remedy hereunder preclude any other or further exercise thereof or the exercise of any other right, power, or remedy. No
failure by Guarantor to validly execute and deliver this Guaranty shall prejudice the Lender’s or the Agent’s (or any of their) right to enforce this Guaranty against Guarantor. The exercise of any right, power, or remedy shall in no event
constitute a cure or waiver of any Event of Default or prejudice the rights of the Lender in the exercise of any right hereunder. The rights and remedies provided herein are cumulative and not exclusive of any right or remedy provided by law.

 Section 6.2 Expenses; Default Interest. Guarantor agrees to pay or reimburse the Lender for all expenses, including, without
limitation, attorneys’ fees, incurred by the Lender in connection with the preparation, execution and delivery of this Guaranty and the 

  

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other Guarantor Documents to which Guarantor is a party and of the Lender in connection with its enforcement, attempted enforcement, or preservation of any
rights or remedies under this Guaranty and the other Guarantor Documents to which Guarantor is a party (including, without limitation, all such costs and expenses incurred during any “workout” or restructuring in respect of the loans made
under the Loan Agreement and during any legal proceeding, including, without limitation, any proceeding under any applicable international, foreign, Federal, state or local bankruptcy, insolvency or other similar debtor relief laws). If Guarantor
shall fail to pay any amount when due hereunder, interest shall accrue on the unpaid amount thereof at the Default Rate from the date the Lender makes demand therefor until repaid in full by the Guarantor; provided, however, that
interest shall not accrue at a rate in excess of the maximum rate permitted by applicable law. 
 Section 6.3 Notices. All notices and
other communications provided for in this Guaranty shall be in writing or (unless otherwise specified) and shall be mailed (with first class postage prepaid) or sent or delivered to each party by facsimile or courier service at the address or
facsimile number set forth below, or at such other address as shall be designated by such party in a written notice to the other parties. 
  

			
	If to Guarantor:	  	Elandia International Inc.
		  	133 Sevilla Avenue
		  	Coral Gables, Florida 33134
		  	Attn: Diana Abril
		  	Facsimile: 786-413-1913
		
	If to Lender:	  	ANZ Amerika Samoa Bank, as Agent
		  	P.O. Box 3790
		  	Pago Pago, American Samoa 96799
		  	Attn:
                                
		  	Facsimile: 684-633-5057

 All notices sent by mail, if duly given, shall be effective three (3) Business Days after deposit into the
mails, all notices sent by a nationally recognized courier service, if duly given, shall be effective one Business Day after delivery to such courier service, and all other notices and communications if duly given or made shall be effective upon
receipt. In the event Lender in its sole discretion elects to give notice of any action with respect to the sale of collateral, if any, securing the Guaranteed Obligations or any part thereof, Guarantor hereby agrees that ten (10) days prior
written notice shall be deemed reasonable notice of any matters contained in such notice. 
 Section 6.4 Assignment. This Guaranty
shall inure to the benefit of the Lender and their successors and assigns. The Lender may at any time assign or otherwise transfer all or any part of its interest under this Guaranty and to the extent of such assignment, the assignee shall have the
same rights and benefits against Guarantor and otherwise under this Guaranty (including, without limitation, the right of setoff) as if such assignee were a Lender or the Agent (as applicable). The Lender may assign any or all of the Guaranteed
Obligations (including assignments for security and sales of participations) and such assignment shall be deemed to include a corresponding assignment of all or a corresponding part of this Guaranty. This Guaranty shall be binding upon Guarantor and

  

 19 

 
Guarantor may not assign or otherwise transfer all or any part of its rights or obligations hereunder without the prior written consent of the Lender, and
any such assignment or transfer purported to be made without such consent shall be ineffective. 
 Section 6.5 Governing Law. This
Agreement shall be governed by and construed in accordance with the laws of the Territory of American Samoa, excluding its conflicts of laws rules. 
 Section 6.6 Waiver of Right to Trial by Jury. GUARANTOR WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR RELATING TO THIS GUARANTY, OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR
AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY RELATIONSHIP EXISTING IN CONNECTION WITH THIS GUARANTY, AND AGREES THAT (A) ANY SUCH ACTION OR PROCEEDING SHALL NOT BE TRIED
BEFORE A JURY AND (B) THE LENDER MAY FILE AN ORIGINAL COUNTERPART OR COPY OF THIS GUARANTY WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF GUARANTOR TO THE WAIVER OF ITS RIGHT TO A TRIAL BY JURY. 
 Section 6.7 Consent to Jurisdiction. Guarantor irrevocably submits to the nonexclusive jurisdiction of the High Court of American Samoa in any
action or proceeding brought to enforce or otherwise arising out of or relating to this Guaranty or any other Loan Document, hereby waives any objection to venue in any such court and any claim that such forum is an inconvenient forum and agrees
that a final judgment in any such action or proceeding shall be conclusive and may be enforced in any other jurisdiction by suit on the judgment or in any other manner provided by law. Nothing in this Section 6.7 shall impair the right
of the Lender to bring any action or proceeding hereunder in the courts of any other jurisdiction. 
 Section 6.8 Entire Agreement;
Amendment, Etc. This Guaranty comprises the complete, final and integrated agreement of the parties hereto on the subject matter hereof and supersedes all prior agreements, written or oral, on such subject matter. This Guaranty may not be
amended or modified except by written agreement of Lender and Guarantor, and no provision of this Guaranty may be waived except in writing and then only in the specific instance and for the specific purpose for which given. 
 Section 6.9 USA Patriot Act Notice. The Lender hereby notifies Guarantor that pursuant to the requirements of the USA Patriot Act (Title III of
Pub. L. 107-56 (signed into law October 26, 2001)) (the “Patriot Act”), it is required to obtain, verify and record information that identifies Guarantor, which information includes the name and address of the Borrower and
other information that will allow the Lender to identify Guarantor in accordance with the Patriot Act. 
 Section 6.10 Set-Off. In
addition to any rights and remedies of Lender provided by law, if an Event of Default has occurred and is continuing, the Lender is authorized at any time and from time to time, without prior notice to Guarantor, any such notice being waived by
Guarantor to the fullest extent permitted by law, to set-off and apply any and all deposits (general or special, time or 

  

 20 

 
demand, provisional or final) at any time held by, and other indebtedness at any time owing by, the Lender to or for the credit or the account of Guarantor
against any and all obligations owing to Lender, now or hereafter existing, irrespective of whether or not Lender shall have made demand under this Guaranty or any other Loan Document and although such obligations may be contingent or unmatured.

 Section 6.11 Judgment Currency. If, for the purposes of obtaining judgment in any court, it is necessary to convert a sum due
hereunder or under any other Guarantor Document to which Guarantor is a party, in one currency into another currency, the rate of exchange used shall be that at which in accordance with normal banking procedures the Lender could purchase the first
currency with such other currency on the Business Day preceding that on which final judgment is given. The obligation of Guarantor in respect of any such sum due from it to the Lender hereunder or under the other Guarantor Documents to which
Guarantor is a party shall, notwithstanding any judgment in a currency (the “Judgment Currency”) other than that in which such sum is denominated in accordance with the applicable provisions of this Guaranty (the “Agreement
Currency”), be discharged only to the extent that on the Business Day following receipt by the Lender of any sum adjudged to be so due in the Judgment Currency, the Lender may in accordance with normal banking procedures purchase the
Agreement Currency with the Judgment Currency. If the amount of the Agreement Currency so purchased is less than the sum originally due to the Lender, as applicable, from Guarantor in the Agreement Currency, the Guarantor agrees, as a separate
obligation and notwithstanding any such judgment, to indemnify the Lender, as applicable, or the Person to whom such obligation was owing against such loss. If the amount of the Agreement Currency so purchased is greater than the sum originally due
to the Lender, as applicable, in such currency, the Lender agrees to return the amount of any excess to the Guarantor (or to any other Person who may be entitled thereto under applicable laws). 
 Section 6.12 Executed in Counterparts. This Guaranty may be executed in any number of counterparts and by different parties in separate
counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. 
 Section 6.13 Severability. Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall as to such jurisdiction be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof or affecting the validity or enforceability of such provision in any other jurisdiction. To the extent permitted by applicable law, the parties waive any provision of law which
renders any provision hereof prohibited or unenforceable in any respect. 
 [SIGNATURE PAGE FOLLOWS] 
  

 21 

 IN WITNESS WHEREOF, Guarantor has caused this Guaranty to be executed by its officer or agent thereunto
duly authorized as of the date first above written. 
  

					
	 GUARANTOR:
	 	 ELANDIA INTERNATIONAL, INC., a
 Delaware
corporation

			
		 	By	 	  

		 	Name:	 	
		 	Title:	 	

 Accepted: 
 ANZ AMERIKA SAMOA BANK, an 
 American Samoa corporation, as Agent 
  

			
	By	 	  

	Name:	 	
	Title:	 	

  

 22Operating Agreement of Eldorado HoldCo LLC, dated as of April 1, 2009

 Exhibit 4.1 
 OPERATING AGREEMENT 
 OF ELDORADO HOLDCO LLC, 
 a Nevada limited liability Company 
 This OPERATING AGREEMENT (this “Operating Agreement”) is made and entered into as of this 1st day of April, 2009, by and among RECREATIONAL ENTERPRISES, INC., a Nevada corporation, HOTEL-CASINO MANAGEMENT, INC., a Nevada
corporation, HOTEL CASINO REALTY INVESTMENTS, INC., a Nevada corporation, LUDWIG J. CORRAO, a married man, GARY L. CARANO QUALIFIED S CORPORATION TRUST, GLENN T. CARANO QUALIFIED S CORPORATION TRUST, GENE R. CARANO QUALIFIED S CORPORATION TRUST,
GREGG R. CARANO QUALIFIED S CORPORATION TRUST, CINDY L. CARANO QUALIFIED S CORPORATION TRUST and NGA ACQUISITIONCO, LLC, a Nevada limited liability company (each, individually, a “Member,” and together, collectively, the
“Members”). 
 RECITAL 
 Eldorado HoldCo LLC (the “Company”) was formed on April 25, 2008, pursuant to Nevada Revised Statutes, Chapter 86, to be governed according to the terms and conditions hereinafter set forth. 
 Upon the formation of the Company, the members of Eldorado Resorts, LLC, a Nevada limited liability company (“Eldorado Resorts”), contributed
all their respective membership interests in Eldorado Resorts to the Company in return for proportionate Membership Interests in the Company (the “Contribution”). 
 AGREEMENT 
 NOW, THEREFORE, in accordance with the recitals set forth above and
AS CONSIDERATION for the representations, warranties, covenants and agreements set forth in this Operating Agreement, as well as for other good and valuable consideration the receipt and sufficiency of which hereby are acknowledged, the parties
hereto hereby agree as follows: 
 ARTICLE I 
 NAME 
 The name of the Company is “ELDORADO HOLDCO LLC.” 
 ARTICLE II 
 DEFINITIONS

 Capitalized words and phrases used in this Operating Agreement shall have the following meanings: 
 “Adjusted Capital Account Deficit” means, with respect to any Member or Interest Holder, the deficit balance, if any, in such
Member’s or Interest Holder’s capital account with the Company as of the end of the relevant fiscal year, after giving effect to the following adjustments: 
 (a) Decrease such deficit by any amount that such Member or Interest Holder is obligated to restore pursuant to this Operating Agreement
or is deemed to be obligated to restore to the Company pursuant to Regulations Section 1.704-1(b)(2)(ii)(c) or the penultimate sentence of each of Regulations Section 1.704-2(g)(1) and Regulations Section 1.704-2(i)(5); and

  

 1 

 (b) Increase such deficit by such Member’s or Interest Holder’s shares of the
items described in Regulations Sections 1.704-1(b)(2)(ii)(d)(4), (5) and (6). 
 “Affiliate” of a Member means any
other Person controlling, controlled by or under common control with such Member. For the purpose of this definition, the term “control” (including with correlative meanings, the terms “controlling,” “controlled by” and
“under common control with”), as used with respect to any Member, shall mean the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of such Person, either through the ownership
of a majority of such Person’s equity interests, by contract or otherwise. 
 “Articles of Organization” means the
Articles of Organization of ELDORADO HOLDCO LLC, as amended from time to time, and as filed with the Nevada Secretary of State. 
 “Board of Managers” means, collectively, all of the Managers of the Company. 
 “Cause” for the
removal of any Manager means such Manager has been found by the official action of any applicable gaming authority to be not suitable to serve in such capacity. 
 “Chapter 86” means Chapter 86 of Nevada Revised Statutes or any corresponding set of provisions of succeeding law. 
 “Company” means ELDORADO HOLDCO LLC, a Nevada limited liability company. 
 “Company
Minimum Gain” has the meaning set forth in Regulations Section 1.704-2(b)(2) for the term “partnership minimum gain.” 
 “Interest Holder” means the Transferee holder of a Membership Interest that has not been admitted to the Company as a Member. 
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time, or any corresponding set of provisions of succeeding law. 
 “Majority NGA Holder(s)” at any time means the holders of a majority of the NGA Interests at such time. 
 “Manager” means the Member, Members or Non-Member(s) who are referred to as the Manager(s) in ARTICLE V of this Operating Agreement and
all successors thereto. 
 “Member” means any holder of a Membership Interest or the NGA Additional Interests who has become
a Member pursuant to the terms and provisions of this Operating Agreement. 
 “Member Minimum Gain” means gain attributable
to Member Nonrecourse Debt determined in accordance with Regulations Section 1.704-2(i). 
 “Member Nonrecourse Debt”
has the meaning set forth in Regulations Section 1.704-2(b)(4) with respect to the term “partner nonrecourse debt.” 
  

 2 

 “Member Nonrecourse Deduction” has the meaning set forth in Regulations
Section 1.704-2(i)(2) with respect to the term “partner nonrecourse deduction.” 
 “Membership Interest”
means the respective right of a Member or Interest Holder to an allocative pro-rata share of the economic benefits of the Company, including net profits, net losses and distributions, based on the percentage represented by the total capital
contributed to the Company by the holder of such Membership Interest (and/or its predecessors in interest) in relation to the total capital contributed to the Company with respect to all outstanding Membership Interests. For the avoidance of doubt,
the term “Membership Interests” includes the NGA Additional Interests and the capital contributed by a Member as of the date hereof shall be determined in accordance with Section 9.1. 
 “Membership Voting Interest” means, with respect to the Members only, the right to vote on matters as to which this Operating Agreement
requires or permits the Members to vote in accordance with the terms and provisions of Section 8.3 of this Operating Agreement. Only Members who have become such in accordance with the terms and provisions of this Operating Agreement, including
holders of Membership Interests and NGA Additional Interests, shall have Membership Voting Interests. The voting power of any Membership Voting Interest shall be determined under the terms and provisions of Section 8.3 of this Operating
Agreement. 
 “Net Profits” or “Net Losses” for each fiscal year of the Company shall mean the net income
or net loss of the Company, determined by the method of accounting for the Company as selected by the Board of Managers for federal income tax purposes, including, without limitation, each item of Company income, gain, loss and deduction with the
following adjustments: 
 (a) Any income of the Company that is exempt from federal income taxation shall be included as
income; 
 (b) Any expenditure of the Company described in Internal Revenue Code Section 705(a)(2)(B) or treated as
Internal Revenue Code Section 705(a)(2)(B) expenditures pursuant to Regulations Section 1.704-1(b)(2)(iv)(i) shall be treated as current expenses; 
 (c) No effect shall be given to adjustments made pursuant to Internal Revenue Code Section 743; 
 (d) The basis of property contributed to the Company shall initially be treated as equal to the agreed upon valuation of such property,
and all gain, loss, depreciation and amortization on such property shall be determined and based on such agreed upon value in accordance with Regulations Section 1.704-1(b)(2)(iv)(g); 
 (e) If the Company distributes any property in kind, the difference between the fair market value of such property immediately before such
distribution and the basis (or, if applicable, the carrying value determined pursuant to subparagraph (d) or subparagraph (f) of this definition of “Net Profits” and “Net Losses”) of such property shall be treated as
gain or loss in accordance with Regulations Section 1.704-1(b)(2)(iv)(e); 
  

 3 

 (f) In the event of a revaluation of Company property as described in subparagraph
(d) of Section 10.1 of this Operating Agreement, “Net Profits” and “Net Losses” of the Company shall be adjusted in accordance with Regulations Section 1.704-1(b)(2)(iv)(g) (and for avoidance of doubt, such
revaluation is being effected in conjunction with NGA’s admission to the Company); and 
 (g) Any item of income or loss
that is specially allocated pursuant to Section 11.2 of this Operating Agreement shall not be taken into account. 
 “NGA
Additional Interests” means a portion of the NGA Interests, which portion totals the amount of 14.47% of all Membership Interests in the Company. 
 “NGA Interests” means, (i) any of the Membership Interests held by NGA as of the date hereof, (ii) any Membership Interests otherwise held from time to time by the NGA and (iii) any
securities issued or issuable directly or indirectly with respect to the Membership Interests referred to in clause (i) or (ii) by way of dividend or split or in connection with a combination of shares, recapitalization, merger,
consolidation or other reorganization, provided that NGA Interests shall continue to be NGA Interests only so long as such securities are owned by the NGA or any Affiliate of NGA. 
 “Nonrecourse Deductions” has the meaning set forth in Regulations Section 1.704-2A(b)(1). 
 “Operating Agreement” means this Operating Agreement of ELDORADO HOLDCO LLC, as amended from time to time. Words appearing in this
Operating Agreement such as “herein,” “hereinafter,” “hereof and “hereunder” refer to this Operating Agreement as a whole, unless the context otherwise requires. 
 “Registration Rights Agreement” means that certain Registration Rights Agreement, dated December 14, 2007, originally entered into
by and among the Eldorado Resorts and NGA, which was assigned to the Company by Eldorado Resorts in accordance with that certain Assignment and Assumption of Registrations Rights Agreement of even date herewith. 
 “Regulations” means the regulations issued by the United States Treasury Department under the Internal Revenue Code. 
 “Transferee” means a third person or entity to whom a Transferring Member sells, transfers, assigns or otherwise disposes of all or any
portion of a Membership Interest. 
 “Transferring Member” means a Member who sells, transfers, assigns or otherwise
disposes of all or any portion of such Member’s Membership Interest to any third person or entity. 
 ARTICLE III 
 PRINCIPAL OFFICE/REGISTERED OFFICE 
 Section 3.1 Principal Office. The principal office of the Company in the State of Nevada shall be located at 345 North Virginia Street, Reno, Washoe County, Nevada 89501. The Company may have such other offices, either within or
without the State of Nevada, as the Board of Managers may designate or as the business of the Company from time to time may require. 
  

 4 

 Section 3.2 Registered Office. The address of the registered office of
the Company is 100 W. Liberty Street, 10th Floor, Reno, Nevada 89501, and the
Company’s agent for service of process at such address is SIERRA CORPORATE SERVICES. The Company’s registered office and agent for service of process may be changed from time to time by action of the Board of Managers and by filing the
prescribed form with the Nevada Secretary of State. 
 ARTICLE IV 
 PURPOSES AND POWERS 
 Section 4.1 Purposes. The Company may engage
in any lawful activity except insurance. The character and general nature of the business to be conducted by the Company is (a) to hold equity, directly, or indirectly through Affiliates, in one (1) or more entities related to the gaming
industry, and to exercise the rights, and manage the distributions received, in connection therewith, and (d) to engage in such other legal and lawful purposes permitted by law except insurance. 
 Section 4.2 Powers. The Company shall have all the powers granted to a limited liability company under the laws of the State of Nevada.

 Section 4.3 Term. The Company shall have perpetual existence. 
 ARTICLE V 
 MANAGERS 
 Section 5.1 Authorized Number of Managers. The Company shall be managed by a Board of Managers. The authorized number of Managers shall be
FIVE (5) until amended or changed by a resolution amending such exact number of Managers duly adopted by the Members as provided in subparagraph (a) of Section 5.9 of this Operating Agreement. A Manager need not be a Member.

 Section 5.2 Appointment and Term of Managers. So long as Recreational Enterprises, Inc. (“REI”), or its Affiliate is
a Member, REI shall have the right to designate THREE (3) Managers to serve on the Board; so long as Hotel-Casino Management, Inc. (“HCM”), or its Affiliate is a Member, HCM shall be entitled to appoint ONE (1) person to the
Board of Managers; and so long as NGA AcquisitionCo (“NGA”) or its Affiliate is a Member, NGA shall be entitled to appoint ONE (1) person to the Board of Managers. The Members shall designate the respective Managers each year at the
annual meeting and each Manager shall hold office until the expiration of the term for which such Manager has been designated and until his successor has been designated, except in the case of death, removal or resignation. Notwithstanding any other
provision of this Operating Agreement, (i) the right NGA to designate a Manager cannot be changed or amended without the express written consent of NGA; (ii) the right of HCM to designate a Manager cannot be changed or amended without the
express written consent of HCM; and (iii) the right of REI to designate THREE (3) Managers cannot be changed or amended without the express written consent of REI. By execution of this Operating Agreement, REI, HCM and NGA shall be deemed
to have designated the following individuals to serve as the initial Board of Managers: 
  

	 	1.	Designee of REI: Donald L. Carano 

  

	 	2.	Designee of REI: Gary L. Carano 

  

 5 

	 	3.	Designee of REI: [Vacant] 

  

	 	4.	Designee of HCM: Raymond J. Poncia, Jr. 

  

	 	5.	Designee of NGA: Thomas Reeg 

 Such respective
designations of REI, HCM and NGA may be respectively changed by REI, HCM and NGA from time to time and at any time REI, HCM and NGA, or its respective Affiliate is a Member, by providing written notice of such change to the Secretary of the Company.
In the event a corporation or limited liability company is designated by a Member to the Board of Managers under this Operating Agreement, such corporation or limited liability company shall promptly designate a representative as such
organization’s representative for all determinations to be made by the Board of Managers during the term of such organization’s standing as a Manager. Any such designation of any such organization may be changed by such organization from
time to time and at any time during such organization’s standing as a Manager by providing written notice of such change to the Secretary of the Company. All acts, approvals and resolutions adopted by the Board of Managers may be implemented
and executed on behalf of a Manager that is a corporation by any officer of such corporation. 
 Section 5.3 Removal. Resignation and
Vacancies. Any Manager may be removed from office, with Cause, by the affirmative vote or written consent of the Members holding more than FIFTY PERCENT (50%) of the total outstanding Membership Voting Interests. Any Manager may resign as a
Manager at any time by giving written notice of resignation to the remaining Managers. Any such resignation shall take effect on the date of the receipt of such notice or such later date as specified therein. Unless otherwise specified in such
notice, the acceptance of such resignation shall not be necessary to make it effective. Any vacancy on the Board whether removal for Cause, death or resignation shall be filled through reappointment by the Member who appointed the departing Manager.

 Section 5.4 General Authority. Subject to the terms and provisions of Sections 5.8 and 5.9 of this Operating Agreement and all
other provisions of this Operating Agreement requiring approval of Company or Manager action by the affirmative vote or written consent of the Members holding a specified percentage of Membership Voting Interests, the Board of Managers shall have
control over the management of the business and affairs of the Company, shall have authority to do all things necessary to carry on the business and affairs of the Company and hereby is authorized to take any action of any kind and to do anything
and everything that the Board of Managers deems necessary or appropriate with respect to the business and affairs of the Company in accordance with the terms and provisions of this Operating Agreement and applicable law. Notwithstanding the
foregoing, as provided further in Section 5.11 of this Operating Agreement, the Board of Managers hereby delegates full power and authority to the, President to make all policies and decisions with respect to the day-to-day management and
operation of the business and affairs of the Company, subject to the terms and provisions of Sections 5.8 and 5.9 of this Operating Agreement and all other provisions of this Operating Agreement requiring approval of Company or Manager action by the
affirmative vote or written consent of the Members holding a specified percentage of Membership Voting Interests. With respect to each Company matter as to which the Board of Managers has decision-making authority and responsibility, each Manager
shall be entitled to ONE (1) vote. If the Board of Managers consists of more than ONE (1) Manager, then the presence of a majority of the authorized number of Managers at a meeting of the Board of Managers constitutes a quorum for the
transaction of Company business, except as otherwise 

  

 6 

 
provided in this Operating Agreement. If there is less than a quorum at any meeting of the Board of Managers, a majority of the Board of Managers present may
adjourn the meeting from time to time, provided that notice of adjournment and the time and place of the rescheduled meeting shall be given to all the Managers not in attendance. Managers may participate in a meeting through use of conference
telephone or similar communications equipment, so long as all Managers participating in such meeting can hear one another. Participation in a meeting as permitted by the immediately-preceding sentence hereof constitutes presence in person at such
meeting. The Board of Managers may fix times and places for regular meetings of the Board of Managers and no additional notice of such meetings need be given. A special meeting of the Board of Managers shall be held whenever called by any Manager
then in office, at such time and place as shall be specified in the notice or waiver thereof. Notice of each special meeting shall be given by the person calling the meeting to each Manager personally, or by faxing or emailing and telephoning the
same not later than three days before the meeting. Every act done or decision made by a majority of the Managers present at a meeting duly held at which a quorum is present shall be regarded as the act of the Board of Managers, unless a greater
number is required by law, by the Articles of Organization or by this Operating Agreement. 
 Except where expressly provided to the contrary
in this Operating Agreement, and except for policies and decisions with respect to the day-to-day management and operation of the business and affairs of the Company made or to be made by the President pursuant to the authority of the Chief
Executive Officer, President and Presiding Manager provided by this Section 5.4 and Section 5.11 of this Operating Agreement or as otherwise delegated by the Board of Managers to the President, all policies and decisions with respect to
control over the management of the business and affairs of the Company shall be made by the Board of Managers and shall be binding on all of the Members and the Interest Holders. Except as provided in Sections 5.8 and 5.9 of this Operating Agreement
and all other provisions of this Operating Agreement requiring approval of Company or Manager action by the affirmative vote or written consent of the Members holding a specified percentage of Membership Voting Interests, the Members and the
Interest Holders as such shall have no right to participate in the management or control of the business and affairs of the Company, and the Members as such shall have only the voting rights specifically set forth in this Operating Agreement or as
otherwise required and not subject to waiver under Chapter 86. In addition to the general management authority provided to the Board of Managers in this Section 5.4, the Board of Managers shall have the following specific rights, subject to
compliance with the other terms and provisions of this Operating Agreement: 
 (a) In any single transaction or series of
related transactions having a value equaling or exceeding FIVE MILLION DOLLARS ($5,000,000), to cause the Company to contract to sell, sell, lease, exchange, grant any option on, convert to condominiums or otherwise transfer or dispose of any of the
real or personal property of the Company or any portion thereof or any interest therein as from time to time may be deemed by the Board of Managers to be appropriate or expedient, including the sale of time-sharing units and/or condominiums located
on property of the Company; 
 (b) To fix, on an annual basis, compensation, if any, for each of the Managers; 
  

 7 

 (c) To approve, adopt and implement such new or additional incentive compensation
policies and plans for the benefit of the Managers, officers, agents and/or employees of the Company, such as the Performance and Appreciation Rights Plan and the Deferred Compensation Plan of the Company in effect before the date of this Operating
Agreement and as may be deemed necessary or expedient; provided, however, that, in accordance with the terms and provisions of subparagraph (c) of Section 5.9 of this Operating Agreement, any such new or additional incentive compensation
policy or plan that contemplates the issuance of any form of equity interest in the Company must be approved by the affirmative vote or written consent of the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership
Voting Interests; 
 (d) To cause the Company to keep or place title to the real property of the Company or any part thereof
on record in the name of the Company, or in the name of a nominee or nominees; 
 (e) To cause the Company to institute,
prosecute, defend and settle any legal or administrative action or proceeding on behalf of or against the Company having an actual or potential value equaling or exceeding FIVE MILLION DOLLARS ($5,000,000); 
 (f) To cause the Company to enter into and execute any agreement with other persons, firms, corporations or other entities, under the
terms of which such persons, firms, corporations or other entities become joint venturers or partners or limited liability company members with the Company in the operation of the Company’s properties, or become entitled to an interest in the
properties owned or held by the Company, if, in the opinion of the Board of Managers, the making of any such agreement is in the best interests of the Company; provided, however, that, in accordance with the terms and provisions of subparagraph
(d) of Section 5.9 of this Operating Agreement, any such joint venture or partnership or limited liability company agreement must be approved by the affirmative vote or written consent of the Members holding more than SIXTY-FIVE PERCENT
(65%) of the outstanding Membership Voting Interests; 
 (g) In any single transaction or series of related transactions
having a value equaling or exceeding FIVE MILLION DOLLARS ($5,000,000), to cause the Company to acquire such real or tangible personal property and intangible property as may be necessary or desirable to carry on the business of the Company, and to
sell, exchange or otherwise dispose of such property; 
 (h) In any single transaction or series of related transactions
having a value equaling or exceeding FIVE MILLION DOLLARS ($5,000,000), to cause the Company to enter into such loans, mortgages and other financing arrangements or rearrangements, and to grant such security interests in the assets of the Company,
as may be necessary or desirable to carry on the business of the Company and to execute all documents, including chattel and real estate mortgages and deeds of trust, promissory notes, pledge agreements, assignments and other documents in connection
with any such loan, mortgage, financing or refinancing. All of the foregoing powers may be exercised at such price, rental or amount, for cash, securities or other property, for such periods of time and under such terms as the Board of Managers
deems appropriate; provided, however, that, in accordance with the terms and provisions of subparagraph (e) of Section 5.9 of this Operating Agreement, any loan that hypothecates property of the Company and that results in assets of the
Company being hypothecated in excess of EIGHTY PERCENT (80%) of the fair market value of all assets of the Company may only be entered into upon the prior approval by the affirmative vote or written consent of the Members holding more than
SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting Interests; 
  

 8 

 (i) Notwithstanding any other term or provision of this Operating Agreement, as may be
necessary or desirable to carry on the business of the Company, to cause the Company to effect the private placement of non-convertible debt securities of the Company in any amount deemed appropriate or necessary under Section 4(2) of, and/or
Regulation D Rule 506 under, the Securities Act of 1933, as amended (the “Securities Act”), including, without limitation, sales of such non-convertible debt securities of the Company to any securities dealer or group of securities dealers
as principals in such transactions for the purpose of enabling such securities dealers to re-sell such non-convertible debt securities of the Company to “qualified institutional buyers” as defined in Rule 144A under the Securities Act in
reliance on Rule 144A under the Securities Act and to institutional “accredited investors” as defined in Regulation D under the Securities Act in reliance on Regulation D under the Securities Act; 
 (j) Notwithstanding any other term or provision of this Operating Agreement, as may be necessary or desirable to carry on the business of
the Company, to cause the Company to effect any registration, including, without limitation, any “shelf” registration, with the Securities and Exchange Commission in compliance with the Securities Act, and the registration and/or
qualification with state securities administrators in compliance with applicable state securities laws, of non-convertible debt securities of the Company, including, without limitation, non-convertible debt securities of the Company issued and sold
by the Company in any private placement under subparagraph (i) of this Section 5.4, for the purpose of effecting a public offering of such securities and/or making such securities re-saleable to the public without restriction; 

(k) Notwithstanding any other term or provision of this Operating Agreement, as may be necessary or desirable to carry on the business
of the Company, to cause the Company to effect offerings of non-convertible debt securities of the Company that are exempt from the registration requirements of the Securities Act; 
 (l) Notwithstanding any other term or provision of this Operating Agreement, as may be necessary or desirable to carry on the business of
the Company, to cause the Company to effect public offerings of non-convertible debt securities of the Company; 
 (m) To
cause the Company to effect the registration with the Securities and Exchange Commission in compliance with the Securities Act, and the registration and/or qualification with state securities administrators in compliance with applicable state
securities laws, of equity securities of the Company (or of any parent or successor entity of the Company), for the purpose of effecting public offerings of such securities, including, without limitation, secondary offerings of such securities (all
present and future Members hereby acknowledging that any such transaction may cause the Company thereafter to be taxed under the Internal Revenue Code as a corporation); provided, however, that, in accordance with the terms and provisions of
subparagraph (k) of Section 5.9 of this Operating Agreement, any such registration or qualification of equity securities of the Company (or of any parent or successor entity of the Company) must be approved by the affirmative vote or
written consent of the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting Interests; 
  

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 (n) To cause the Company to effect public offerings of equity securities of the Company
(or of any parent or successor entity of the Company), including, without limitation, secondary offerings of such securities (all present and future Members hereby acknowledging that any such transaction may cause the Company thereafter to be taxed
under the Internal Revenue Code as a corporation); provided, however, that, in accordance with the terms and provisions of subparagraph (1) of Section 5.9 of this Operating Agreement, any such public offering of equity securities of the
Company (or of any parent or successor entity of the Company) must be approved by the affirmative vote or written consent of the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting Interests; 
 (o) To cause the Company to prepay, modify, amend, renew or extend any authorized Company indebtedness; 
 (p) Other than transactions expressly contemplated by this Operating Agreement and transactions in the ordinary course of business
consistent with the past practices of the Company and which, individually exceed One Million Dollars per transaction or Five Million Dollars in the aggregate in any fiscal year, enter into any agreement or transaction between the Company or any
Subsidiary of the Company, on the one hand, and any Member of any Affiliate or a Member (other than Company and its Subsidiaries) on the other; 
 (q) To amend or waive of any of the provisions of the organizational documents of the Company or any Subsidiary; and 
 (r) To commence any liquidation, dissolution or voluntary bankruptcy, administration, recapitalization or reorganization of the Company or any Subsidiary in any form of transaction, make any arrangements with
creditors, or consent to the entry of an order for relief in an involuntary case, or take the conversion of an involuntary case to a voluntary case, or consent to the appointment or taking possession by a receiver, trustee or other custodian for all
or substantially all of its property, or otherwise seek the protection of any applicable bankruptcy or insolvency law. 
 Section 5.5
General Obligations,. The Board of Managers shall: 
 (a) Take or cause to be taken all actions that may be necessary
or appropriate for the development, maintenance, preservation and operation of the properties of the Company as first class hotel and gaming casino operations and in accordance with the terms and provisions of this Operating Agreement and applicable
laws and regulations; 
 (b) At all times conduct the affairs of the Company, or cause the affairs of the Company to be
conducted, in such a manner that the Company shall be able to service all debts and financial obligations of the Company; and 
 (c) Use reasonable best efforts to assure that the Company shall not be deemed an “Investment Company” as such term is defined in the Investment Company Act of 1940, as amended. 
  

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 Section 5.6 Scope of Duties. The Managers shall not be required to devote their full time to
the business or affairs of the Company but shall devote the time reasonably necessary to perform the duties of the Managers under this Operating Agreement and to manage and operate prudently the Company’s business and properties. 
 Section 5.7 Limitation of Liability and Indemnification of Managers. 
 (a) The Managers shall not be liable for the return of any capital contribution of any Member or Interest Holder or for any amount of
profits thereon, and any return of capital and profits shall be made, if at all, solely from the assets and business of the Company. The Managers shall not be required to pay to the Company or to any Member or Interest Holder any deficit in the
capital account of any Member or Interest Holder upon dissolution of the Company or otherwise. 
 (b) No Manager nor any of
their Affiliates nor any member, officer, agent or employee of any of the Managers or any of their Affiliates shall be liable to the Company or to the Members or to the Interest Holders for acts or omissions of such Manager in connection with the
business or affairs of the Company, including, without limitation, any breach of fiduciary duty of such Manager as a Manager, any mistake of judgment of such Manager and any business decision of such Manager (including any decision regarding the
timing of any acquisition or disposition of any property of the Company), except for acts or omissions of such Manager that a final adjudication establishes involved intentional misconduct, fraud or a knowing violation of the law that was material
to the cause of action subject to such final adjudication. 
 (c) In the event that the Board of Managers consists of more
than ONE (1) Manager when any alleged liability arises under this Operating Agreement or in favor of any Member or Interest Holder against the Board of Managers, the liability of each Manager shall be several. Multiple Managers shall have the
right separately to agree on indemnification and contribution obligations among themselves. 
 (d) Notwithstanding any other
term or provision of this Operating Agreement, but subject to the terms and provisions of Section 18.3 of this Operating Agreement, the Company and/or its successor, trustee or receiver shall indemnify, defend and hold harmless every Manager
and its Affiliates and every person who at any time was but ceased to be a Manager, and the heirs, executors and administrators of every Manager and its Affiliates and of every such person, against all claims, demands, actions, losses, liabilities,
damages, costs and expenses, which after the date of this Operating Agreement arise out of the Company or its business or affairs, including reasonable attorneys’ fees incurred in defending all such matters; provided, however, that, unless
otherwise ordered by a court pursuant to Nevada Revised Statutes Section 86.421, this indemnification provision shall not apply to any of such claims, demands, actions, losses, liabilities, damages, costs or expenses that arise or result from,
or otherwise are related to or based on, acts or omissions of a Manager that a final adjudication establishes involved intentional misconduct, fraud or a knowing violation of the law that was material to the cause of action subject to such final
adjudication. 
 (e) The satisfaction of the indemnification obligations of the Company under this Section 5.7 shall be
from and limited to the assets of the Company, and no Member or Interest Holder shall have any personal liability for the satisfaction of any such indemnification obligation. 
  

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 (f) Notwithstanding any other term or provision of this Operating Agreement, the terms
and provisions of this Section 5.7 cannot and shall not be amended or repealed under any circumstance, except as may be necessary to increase or expand (but not to reduce) the rights or protections under this Section 5.7 of Managers or
other persons referenced in this Section 5.7 to the maximum extent permitted by Chapter 86, as amended. No amendment or repeal of any term or provision of this Section 5.7 that otherwise would restrict or limit any right or protection of a
Manager or other person under this Section 5.7 shall apply to or have any effect on any such right or protection of any Manager existing at the time of such amendment or repeal or of any person who at any time before such amendment or repeal
was but ceased to be a Manager, or of the heirs, executors and administrators of any such Manager or other person. 
 Section 5.8
Restrictions on Authority of Board of Managers and Chief Executive Officer and the President. Without the affirmative vote or written consent of the Members holding ONE HUNDRED PERCENT (100%) of the outstanding Membership Voting
Interests, neither the Board of Managers nor the Chief Executive Officer, nor the President shall directly or indirectly: 
 (a) Do any act in contravention of this Operating Agreement, as amended from time to time; 
 (b) Do any act that
would make it impossible to carry on the ordinary business of the Company, provided that actions of the Managers in accordance with the purposes of the Company or rights and powers granted under this Operating Agreement shall not be considered to
breach this clause; 
 (c) Commingle funds of the Company with funds of any other person. 
 Notwithstanding any other term or provision of this Operating Agreement, the terms and provisions of this Section 5.8 cannot be amended or repealed
unless such amendment or repeal first has been approved by the affirmative vote or written consent of the Members holding ONE HUNDRED PERCENT (100%) of the outstanding Membership Voting Interests. 
 Section 5.9 Other Restrictions on Authority of Board of Managers and Chief Executive Officer and President. Without the affirmative vote or
written consent of the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting Interests, neither the Board of Managers nor the Chief Executive Officer nor the President shall directly or indirectly: 

(a) Amend the authorized number of Managers set forth in Section 5.1 of this Operating Agreement; 
 (b) Cause the Company to merge or otherwise engage in any kind of business combination or reorganization with another entity or other
person; 
 (c) Approve, adopt and implement such new or additional incentive compensation policies and plans for the benefit
of the Managers, officers, agents and/or employees of the Company that contemplate the issuance of any form of equity interest in the Company as described in subparagraph (c) of Section 5.4 of this Operating Agreement; 
  

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 (d) Cause the Company to enter into any joint venture or partnership or limited liability
company agreement as described in subparagraph (f) of Section 5.4 of this Operating Agreement; 
 (e) Cause the
Company to enter into any loan that hypothecates property of the Company and that results in assets of the Company being hypothecated in excess of EIGHTY PERCENT (80%) of the fair market value of all assets of the Company as described in
subparagraph (h) of Section 5.4 of this Operating Agreement and in subparagraph (a)(ix) of Section 5.11 of this Operating Agreement; 
 (f) Cause or permit any new issuance and sale of Membership Interests by the Company, in any ONE (1) or more related or unrelated transactions; provided, however, that no new issuance and/or sale of Membership
Interests by the Company, in any ONE (1) or more related or unrelated transactions, shall be effected or approved by the Board of Managers in any event unless with respect thereto the terms and provisions of Section 7.1 of this Operating
Agreement first have been satisfied; provided further, however, that all of the preceding terms and provisions of this subparagraph (f) of this Section 5.9 shall not apply to any new issuance and sale of Membership Interests by the Company
effected in accordance with the terms and provisions of Section 9.4 of this Operating Agreement; 
 (g) Cause or permit
any person or entity to which a new issuance and sale of Membership Interests has been made by the Company in accordance with the terms and provisions of subparagraph (f) of this Section 5.9 to become a Member by reason of or in connection
with such new issuance of Membership Interests by the Company; provided, however, that all of the preceding terms of this subparagraph (g) of this Section 5.9 shall not apply to any new issuance and sale of Membership Interests by the
Company effected in accordance with the terms and provisions of Section 9.4 of this Operating Agreement; 
 (h) Possess
Company property, or assign rights in specific Company property, for other than a Company purpose; 
 (i) Purchase or lease
Company property from the Company or sell or lease property to the Company; 
 (j) Cause the Company to guarantee the
indebtedness of any person or cause or suffer or permit any Company property to secure or become collateral for any indebtedness of any person other than the Company; 
 (k) Cause the Company (or any parent or successor entity of the Company) to effect the registration with the Securities and Exchange
Commission in compliance with the Securities Act, and/or the registration and/or qualification with state securities administrators in compliance with applicable state securities laws, of equity securities of the Company (or of any parent or
successor entity of the Company), for the purpose of effecting public offerings of such securities, including, without limitation, secondary offerings of such securities, as described in subparagraph (m) of Section 5.4 of this Operating
Agreement (all present and future Members hereby acknowledging that any such transaction may cause the Company thereafter to be taxed under the Internal Revenue Code as a corporation); 
  

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 (l) Cause the Company (or any parent or successor entity of the Company) to effect public
offerings of equity securities of the Company (or of any parent or successor entity of the Company), including, without limitation, secondary offerings of such securities, as described in subparagraph (n) of Section 5.4 of this Operating
Agreement (all present and future Members hereby acknowledging that any such transaction may cause the Company thereafter to be taxed under the Internal Revenue Code as a corporation); 
 (m) Cause or permit the Company at any time to have more than ONE HUNDRED (100) Members and/or Interest Holders (including as Members
and Interest Holders those persons indirectly owning a Membership Interest through a partnership, limited liability company, S corporation or grantor trust (such entity, a “Flow-Through Entity”) but only if substantially all of the value
of such person’s interest in the Flow-Through Entity is attributable to the Flow-Through Entity’s interest (direct or indirect) in the Company), as described in Section 21.1 of this Operating Agreement; or 
 (n) Designate a new “Tax Matters Partner” as described in ARTICLE XXI of this Operating Agreement. 
 Section 5.10 Chief Executive Officer (CEO). The Chief Executive Officer shall be elected by a majority vote of the Board of Managers and
shall have the general powers and duties of management usually vested in the office of Chief Executive Officer of a corporation and shall have such other powers and duties as may be prescribed by the Board of Managers including presiding over all
meetings of the Board of Managers and at all meetings of the Members, together with the duties and authority of the President as described in Section 5.11. 
 Section 5.11 Chief Operating Officer, President and Presiding Manager. 
 (a)
Authority. The Chief Operating Officer, President and Presiding Manager (hereinafter “President”) shall have the general powers and duties of management usually vested in the office of Chief Operating Officer/President of a
corporation and shall have such other powers and duties as may be prescribed by the Board of Managers or this Operating Agreement. Subject to the control of the Board of Managers with respect to Company matters requiring a vote of the Board of
Managers under this Operating Agreement, the President is the general manager of the Company, shall have supervising authority over and may exercise general executive power concerning the supervision, direction and control of the day-to-day business
and affairs of the Company and shall carry out the decisions voted on by the Board of Managers and/or by the Members, with the authority from time to time and at any time to delegate to any Assistant Presiding Manager or any other officer or
executive employee of the Company such executive powers and duties as the President may deem advisable. Subject to the terms and provisions of Sections 5.8 and 5.9 of this Operating Agreement and all other provisions of this Operating Agreement
requiring approval of Company or Manager action by the affirmative vote or written consent of the Members holding a specified percentage of Membership Voting Interests, the President shall have authority to do all things necessary to carry on the
day-to-day business and affairs of the Company and hereby is authorized to take any action of any kind and to do anything and everything that the President deems necessary or appropriate with 

  

 14 

 
respect to the day-to-day business and affairs of the Company in accordance with the terms and provisions of this Operating Agreement and applicable law. The
President has authority to make all policies and decisions with respect to the day-to-day management and operation of the business and affairs of the Company, subject to the terms and provisions of Sections 5.8 and 5.9 of this Operating Agreement
and all other provisions of this Operating Agreement requiring approval of Company or Manager action by the affirmative vote or written consent of the Members holding a specified percentage of Membership Voting Interests. In addition to the general
authority provided to the President in this Section 5.11, and without limiting the generality of any of the foregoing, the President shall have the following specific rights, subject to compliance with the other terms and provisions of this
Operating Agreement: 
 (i) On behalf of the Company, to acquire or lease such additional real or personal property as the
President from time to time may deem appropriate or expedient for the operation of the business of the Company; 
 (ii) On
behalf of the Company, to develop and improve, or cause to be developed and improved, the property of the Company; 
 (iii) To
maintain, operate and lease the property of the Company and in connection therewith to execute and deliver on behalf of the Company (A) licenses or other contracts, (B) checks, drafts and other orders with respect to the payment of Company
funds, (C) powers of attorney, consents, waivers and other documents necessary or desirable to procure licenses, permits, surface leases, rights of way and such other permits, licenses and leases as may be necessary to the conduct of the
business of the Company and (D) all other agreements, documents and commitments relating to the affairs of the Company; 
 (iv) In any single transaction or series of related transactions having a value of under FIVE MILLION DOLLARS ($5,000,000), on behalf of the Company, to contract to sell, sell, lease, exchange, grant any option on, convert to condominiums
or otherwise transfer or dispose of any of the real or personal property of the Company or any portion thereof or any interest therein as from time to time may be deemed by the President to be appropriate or expedient, including the sale of
time-sharing units and/or condominiums located on property of the Company; 
 (v) On behalf of the Company, to select and
remove such officers, agents and employees of the Company as may be deemed necessary or expedient and to assist with the management or operation of Company property, to prescribe such powers and duties for them as are not inconsistent with law, the
Articles of Organization or this Operating Agreement and to fix their compensation; 
 (vi) On behalf of the Company, to
employ and terminate the services of such persons, firms, corporations or other entities, including any ONE (1) or more of the Members, for or in connection with the business of the Company or the acquisition, development, improvement,
operation, maintenance, management, leasing, financing, refinancing, sale, exchange or other disposition of the property of the Company as may be deemed necessary or 

  

 15 

 
expedient and to assist with the management or operation of Company property and to perform Company administrative services, accounting services, independent
auditing services, legal services and other services for the benefit of the Company; 
 (vii) To institute, prosecute, defend
and settle any legal or administrative action or proceeding on behalf of or against the Company having an actual or potential value of under FIVE MILLION DOLLARS ($5,000,000); 
 (viii) In any single transaction or series of related transactions having a value of under FIVE MILLION DOLLARS ($5,000,000), on behalf of
the Company, to acquire such real or tangible personal property and intangible property as may be necessary or desirable to carry on the business of the Company, and to sell, exchange or otherwise dispose of the same; 
 (ix) In any single transaction or series of related transactions having a value of under FIVE MILLION DOLLARS ($5,000,000), on behalf of
the Company, to enter into such loans, mortgages and other financing arrangements or rearrangements, and to grant such security interests in the assets of the Company, as may be necessary or desirable to carry on the business of the Company and to
execute all documents, including chattel and real estate mortgages and deeds of trust, promissory notes, pledge agreements, assignments and other documents in connection with any such loan, mortgage, financing or refinancing. All of the foregoing
powers may be exercised at such price, rental or amount, for cash, securities or other property, for such periods of time and under such terms as the President deems appropriate; provided, however, that, in accordance with the terms and provisions
of subparagraph (e) of Section 5.9 of this Operating Agreement, any loan that hypothecates property of the Company and that results in assets of the Company being hypothecated in excess of EIGHTY PERCENT (80 %) of the fair market
value of all assets of the Company may only be entered into upon the prior approval by the affirmative vote or written consent of the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting Interests; 

(x) On behalf of the Company, to operate, manage and collect income from any real property owned by the Company in accordance with this
Operating Agreement; 
 (xi) On behalf of the Company, to make any reasonable expenditure for the organization, operation and
conduct of the business and affairs of the Company and to negotiate, execute, acknowledge, file, record, deliver and perform any agreement or instrument considered necessary or appropriate by the President for the conduct of the Company’s
business and affairs in accordance with this Operating Agreement or for the implementation of the powers granted to the President under this Operating Agreement; 
 (xii) On behalf of the Company, to obtain or keep in force, or cause to be obtained and kept in force, fire and extended coverage,
workmen’s compensation and public liability insurance in favor of the Company reasonably necessary to cover risks associated with the operation of the business of the Company; and 
  

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 (xiii) On behalf of the Company, to invest Company funds in commercial paper, government
securities, certificates of deposit, time deposits, bankers’ acceptances, money market funds or similar investments having a maturity generally considered to be short term. 
 (b) General Obligations. The President shall: 
 (i) In the absence of the CEO, preside at all meetings of the Board of Managers and at all meetings of the Members; 
 (ii) Take or cause to be taken all actions that may be necessary or appropriate for the development, maintenance, preservation and
operation of the properties of the Company as a first class hotel and gaming casino and in accordance with the terms and provisions of this Operating Agreement and applicable laws and regulations; 
 (iii) Execute and cause to be filed original or amended documents and take all other actions that reasonably may be necessary to perfect
and maintain the status of the Company as a limited liability company under the laws of the State of Nevada and of other states or jurisdictions in which the Company engages in business and, if required by law, execute and cause to be recorded
appropriate original or amended documents in each county in each state in which the Company owns real property; 
 (iv) Take
such actions as may be necessary or appropriate in order to qualify the Company under the laws of any jurisdiction in which the Company is doing business or owns property or in which such qualification is necessary in order to protect the limited
liability of the Members or in order to continue in effect such qualification; 
 (v) At all times conduct the affairs of the
Company in such a manner that the Company shall be able to service all debts and financial obligations of the Company; 
 (vi)
At all times use reasonable best efforts in the conduct of the business of the Company to put all suppliers and other persons with whom the Company does business on notice that the Members and the Interest Holders are not liable for the obligations
of the Company, and all agreements to which the Company is a party shall include a statement to the effect that the Company is a Nevada limited liability company organized under Chapter 86; provided, however, that the President shall not be liable
to the Members or the Interest Holders for any failure to give such notice to such suppliers or other persons or for any such agreement to fail to contain such statement; and 
 (vii) Use reasonable best efforts to assure that the Company shall not be deemed an “Investment Company” as such term is defined
in the Investment Company Act of 1940, as amended. 
  

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 Section 5.12 Assistant Presiding Managers. The Managers who are not appointed by the Board of
Managers as the Chief Executive Officer or President shall be Assistant Presiding Managers. Any action taken by any Assistant Presiding Manager acting as such on behalf of the Company shall be subject to the control and direction of the Chief
Executive Officer and the President. Each Assistant Presiding Manager individually acting as such on behalf of the Company shall have no supervising authority over and may not exercise general executive power concerning the supervision, direction
and control of the business and affairs of the Company except as authorized under contract or otherwise as may be necessary and as specifically authorized to carry out the decisions voted on by the Board of Managers and/or the decisions of the Chief
Executive Officer or the President. 
 Section 5.13 Limitations on Manager Authority. If the authorized number of Managers under
Section 5.1 (as may be amended from time to time) is ONE (1), then such sole Manager shall hold the office of Chief Executive Officer and President, and no person shall hold the office of Assistant Presiding Manager. Notwithstanding any other
term or provision of this Operating Agreement, if the authorized number of Managers under Section 5.1 is more than ONE (1), then, except as otherwise expressly provided in Chapter 86 (excluding Sections 86.301 and 86.311 of Chapter 86),
(a) no debt or liability, in any single transaction or series of related transactions having a value equaling or exceeding FIVE MILLION DOLLARS ($5,000,000), may be contracted or incurred by or on behalf of the Company except upon the execution
of the documents creating such debt or liability by both the Chief Executive Officer or the President and ONE (1) Assistant Presiding Manager; (b) instruments and documents providing for the acquisition, mortgage or disposition of property
of the Company, in any single transaction or series of related transactions having a value equaling or exceeding FIVE MILLION DOLLARS ($5,000,000), shall be valid and binding on the Company only if executed by both the Chief Executive Officer or the
President and ONE (1) Assistant Presiding Manager; (c) debt or liability, in any single transaction or series of related transactions having a value of under FIVE MILLION DOLLARS ($5,000,000), may be contracted or incurred by or on behalf
of the Company upon the execution of the documents creating such debt or liability solely by the Chief Executive Officer or the President or solely by any Assistant Presiding Manager but in such latter case only as generally authorized under
contract with the Company or otherwise as may be necessary and as specifically authorized to carry out the decisions voted on by the Board of Managers and/or the decisions or directions of the Chief Executive Officer or the President; and
(d) instruments and documents providing for the acquisition, mortgage or disposition of property of the Company, in any single transaction or series of related transactions having a value of under FIVE MILLION DOLLARS ($5,000,000), shall be
valid and binding on the Company if executed solely by the Chief Executive Officer or the President or solely by any Assistant Presiding Manager but in such latter case only as generally authorized under contract with the Company or otherwise as may
be necessary and as specifically authorized to carry out the decisions voted on by the Board of Managers and/or the decisions or directions of the Chief Executive Officer or the President. If the authorized number of Managers under Section 5.1
is ONE (1), then, except as otherwise expressly provided in Chapter 86 (excluding Sections 86.301 and 86.311 of Chapter 86), (i) no debt may be contracted or liability incurred by or on behalf of the Company except upon the execution of the
documents creating such debt or liability by the Chief Executive Officer or the President, and (ii) instruments and documents providing for the acquisition, mortgage or disposition of property of the Company shall be valid and binding on the
Company only if executed by the Chief Executive Officer or the President. 
  

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 Section 5.14 Directors’ Insurance. The Company shall maintain directors’ and
officers’ liability insurance covering the full Board of Managers in an amount not less than THREE MILLION DOLLARS ($3,000,000). 
 Section 5.15 Standard of Care. Notwithstanding anything to the contrary herein, the members of the Board of Managers shall owe the same fiduciary duties to the Members that a director of a Nevada corporation owes to the
shareholders of such corporation. 
 ARTICLE VI 
 COMPANY OFFICERS 
 Section 6.1 Authority. The terms and provisions of this ARTICLE VI
shall not limit the general authority provided to the Chief Executive Officer or the President by the terms and provisions of Section 5.10 or subparagraph (a)(v) of Section 5.11 of this Operating Agreement. Notwithstanding any term or
provision of this ARTICLE VI, no officer of the Company appointed under this ARTICLE VI shall have any authority to contract or incur any debt or liability on behalf or in the name of the Company or to execute any instrument or document providing
for the acquisition, mortgage or disposition of property of the Company, unless such officer also is a Manager of the Company, in which case such officer shall have such authority but only as provided in Section 5.13 of this Operating
Agreement. 
 Section 6.2 Appointment. Except for such officers as may be appointed in accordance with the terms and provisions
of Section 6.3 of this Operating Agreement, the Board of Managers annually may appoint persons to hold the following respective offices and have the duties associated therewith. Any such officer of the Company may, but need not, be a Manager.
Each such officer of the Company shall hold office until such officer resigns or is removed or otherwise is disqualified to serve, or until such officer’s successor is appointed. Any single person can hold TWO (2) or more of the following
offices and have the duties associated therewith. 
 (a) Vice Presidents. Each Vice President of the Company shall have
such powers and perform such duties as from time to time may be prescribed for them by the Board of Managers or the President. 
 (b) Chief Financial Officer. The Chief Financial Officer shall have the general powers and duties of management usually vested in the office of Chief Financial Officer of a corporation and shall have such other powers and duties as
may be prescribed by the Board of Managers or the President. 
 (c) Secretary. The Secretary shall have the general
powers and duties of management usually vested in the office of Secretary of a corporation and shall have such other powers and duties as may be prescribed by the Board of Managers or the President. 
 Section 6.3 Subordinate Officers, Employees and Agents. Notwithstanding the terms and provisions of Section 6.2 of this Operating
Agreement, the, President shall have the right at any time and from time to time to appoint such other officers, employees and agents of the Company as the business of the Company may require in the discretion of the President , including, without
limitation, a general manager for the Company’s gaming casino operations, each of whom shall hold office for such period, have such authority and perform such duties as the President from time to time may determine. 
  

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 Section 6.4 Removal and Resignation. Any officer may be removed, either with or without
cause, by the Board of Managers at any regular or special meeting of the Board of Managers, or, except in the case of an officer appointed by the Board of Managers, by the President (subject, in each case, to the rights, if any, of an officer under
any contract of employment). Any officer may resign at any time by giving written notice to the Board of Managers or to the President or to the Secretary, without prejudice, however, to the rights, if any, of the Company under any contract to which
such officer is a party. Any such resignation shall take effect on the date of the Company’s receipt of such notice or at any later time specified therein, and, unless otherwise specified therein, the acceptance of such resignation shall not be
necessary to make it effective. 
 Section 6.5 Vacancies. A vacancy in any office because of death, resignation, removal,
disqualification or any other cause shall be filled in the manner prescribed in this ARTICLE VI for appointments to such office. 
 Section 6.6 Limitation of Liability and Indemnification of Company Officers. 
 (a) No officer of the
Company shall be liable to the Company or to the Members or to the Interest Holders for acts or omissions of such officer of the Company in connection with the business or affairs of the Company, including, without limitation, any breach of
fiduciary duty of such officer as an officer of the Company, any mistake of judgment of such officer as an officer of the Company and any business decision of such officer as an officer of the Company, except for acts or omissions of such officer of
the Company that a final adjudication establishes involved intentional misconduct, fraud or a knowing violation of the law that was material to the cause of action subject to such final adjudication. 
 (b) Notwithstanding any other term or provision of this Operating Agreement, but subject to the terms and provisions of Section 18.3
of this Operating Agreement, the Company and/or its successor, trustee or receiver shall indemnify, defend and hold harmless every officer of the Company and every person who at any time was but ceased to be an officer of the Company, and the heirs,
executors and administrators of every officer of the Company and of every such person, against all claims, demands, actions, losses, liabilities, damages, costs and expenses, which after the date of this Operating Agreement arise out of the Company
or its business or affairs, including reasonable attorneys’ fees incurred in defending all such matters; provided, however, that, unless otherwise ordered by a court pursuant to Nevada Revised Statutes Section 86.421, this indemnification
provision shall not apply to any of such claims, demands, actions, losses, liabilities, damages, costs or expenses that arise or result from, or otherwise are related to or based on, acts or omissions of an officer of the Company that a final
adjudication establishes involved intentional misconduct, fraud or a knowing violation of the law that was material to the cause of action subject to such final adjudication. 
 (c) The satisfaction of the indemnification obligations of the Company under this Section 6.6 shall be from and limited to the assets
of the Company, and no Member or Interest Holder shall have any personal liability for the satisfaction of any such indemnification obligation. 
  

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 (d) Notwithstanding any other term or provision of this Operating Agreement, the terms
and provisions of this Section 6.6 cannot and shall not be amended or repealed under any circumstance, except as may be necessary to increase or expand (but not to reduce) the rights or protections under this Section 6.6 of officers of the
Company or other persons referenced in this Section 6.6 to the maximum extent permitted by Chapter 86, as amended. No amendment or repeal of any term or provision of this Section 6.6 that otherwise would restrict or limit any right or
protection of an officer of the Company or other person under this Section 6.6 shall apply to or have any effect on any such right or protection of any officer of the Company existing at the time of such amendment or repeal or of any person who
at any time before such amendment or repeal was but ceased to be an officer of the Company, or of the heirs, executors and administrators of any such officer of the Company or other person. 
 ARTICLE VII 
 RIGHTS AND RESTRICTIONS OF MEMBERS 
 Section 7.1 Members’ Preemptive Rights. Each Member, and only a Member, shall have a preemptive right for a period of THIRTY
(30) days to subscribe for, purchase or otherwise acquire any Membership Interest or any other equity and/or voting interest in the Company that the Company and/or the Board of Managers at any time proposes to issue and/or sell or any right or
option that the Company and/or the Board of Managers proposes to grant for the purchase of Membership Interests or any other equity and/or voting interest in the Company or for the purchase of documents, instruments, bonds, securities or obligations
of the Company that are convertible into or exchangeable for, or that carry rights to subscribe for, purchase or otherwise acquire, Membership Interests or any other equity and/or voting interest in the Company, whether now or hereafter authorized
or created, and whether the proposed issuance, sale or grant is for cash, property or any other lawful consideration. The Company shall transmit written notice (the “Preemptive Rights Notice”) to every Member of any such proposed issuance,
sale or grant of Membership Interests, other interests, rights or options (collectively, “New Securities”), stating (a) the exact amount and type of New Securities proposed to be issued, sold or granted, (b) the amount of the
purchase price per New Security and for the total number of New Securities proposed to be issued, sold or granted and (c) the terms of the proposed issuance, sale or grant. Within THIRTY (30) days after the date of the Company’s
transmission of the Preemptive Rights Notice, any of the Members that desires to acquire all or any portion of the New Securities proposed to be issued, sold or granted (as specified in the Preemptive Rights Notice) shall deliver to the Company a
written election to purchase such New Securities or a specified number thereof. If the total number of New Securities specified in such elections exceeds the number of New Securities to be issued, sold or granted (as specified in the Preemptive
Rights Notice), then each such Member shall have priority, up to the number of New Securities specified in such Member’s notice of election to purchase, to purchase such proportion of the New Securities to be issued, sold or granted (as
specified in the Preemptive Rights Notice) as the Membership Voting Interests that such Member holds bears to the total Membership Voting Interests held by all of the Members electing to purchase. If New Securities out of the total number of the New
Securities proposed to be issued, sold or granted (as specified in the Preemptive Rights Notice) remain after the application of the foregoing formula, then such remaining New Securities shall be allocated among the Members that have not received
the number of New Securities specified in their notices of election to purchase in the proportion that the number of New Securities specified in each individual Member’s notice of election to purchase less the number 

  

 21 

 
of New Securities allocated to that Member under the foregoing formula bears to the total number of New Securities in all such elections to purchase less all
New Securities allocated to Members under the foregoing formula. If the Members do not purchase the total number of New Securities to be issued, sold or granted (as specified in the Preemptive Rights Notice) within the above-referenced THIRTY
(30) day period, then, after the expiration of such THIRTY (30) day period, but subject to all of the terms and provisions of this Section 7.1 and all other applicable terms and provisions of this Operating Agreement, such New
Securities not purchased by the Members, but only such New Securities, may be issued, sold or granted by the Board of Managers, as the case may be, to such persons, entities, corporations, partnerships and associations as the Board of Managers in
its discretion may determine, but only for the purchase price per New Security and under the exact terms specified in the Preemptive Rights Notice. If any Member transfers all or any portion of such Member’s Membership Interest to a person who
by reason of such transfer becomes an Interest Holder but is not admitted as a Member in accordance with the terms and provisions of Section 14.2 or Section 14.5 of this Operating Agreement, then such Transferring Member shall continue to
be a Member and retain all of the preemptive rights provided by this Section 7.1 theretofore associated with such transferred Membership Interest until such time (if any) as the transferee Interest Holder of such transferred Membership Interest
(or such transferee Interest Holder’s successor in interest) is admitted to the Company as a Member in accordance with the terms and provisions of Section 14.2 of this Operating Agreement. In every such case, the Transferring Member shall
continue to be a Member and retain the preemptive rights provided by this Section 7.1 theretofore associated with the transferred Membership Interest of such Member even if such Member so has transferred such Member’s entire Membership
Interest to one or more assignees. The preemptive rights terms and provisions of this Section 7.1 cannot be amended or repealed unless such amendment or repeal first has been approved by the affirmative vote or written consent of the Members
holding ONE HUNDRED PERCENT (100%) of the outstanding Membership Voting Interests. The preemptive rights terms and provisions of this Section 7.1 shall not apply to any transaction that is effected or proposed to be effected by the Company
under any of subparagraphs (i) through (n), inclusive, of Section 5.4 of this Operating Agreement or under Section 9.4 of this Operating Agreement. 
 Section 7.2 Public Offerings of Securities. Provided that, in accordance with the terms and provisions of subparagraphs (k) and (l) of Section 5.9 of this Operating Agreement, it first has
been reasonably proposed (a) that the Company (or any parent or successor entity of the Company) effect the registration and/or qualification of equity securities of the Company (or of any parent or successor entity of the Company) with the
Securities and Exchange Commission and state securities administrators for the purpose of effecting an initial public offering of such securities and (b) that the Company (or any parent or successor entity of the Company) effect an initial
public offering of equity securities of the Company (or of any parent or successor entity of the Company), and the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting Interests have failed or refused to
authorize or approve such proposal within THIRTY (30) days after such proposal is made, any Member that at that time is not a publicly-traded entity shall have the unrestricted right within SIX (6) months after such THIRTY (30) day
period to commence the registration and/or qualification of equity securities of such Member with the Securities and Exchange Commission and state securities administrators for the purpose of effecting an initial public offering of such securities
and to commence an initial public offering of such securities of such Member. At any time and from time to time after the consummation of any such initial public offering of a Member’s equity securities, such Member shall have the unrestricted
right to commence and effect additional public offerings of securities of any class of such Member as such Member in its sole and absolute discretion deems appropriate. Notwithstanding any other term or provision of this 

  

 22 

 
Operating Agreement, the terms and provisions of this Section 7.2 cannot be amended or repealed unless such amendment or repeal first has been approved
by the affirmative vote or written consent of the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting Interests. 
 Section 7.3 Restrictions on Members. No Member, otherwise than in such Member’s capacity as a Manager, without the written consent of the Members holding ONE HUNDRED PERCENT (100%) of the
outstanding Membership Voting Interests, shall do any of the following: 
 (a) Borrow or lend money on behalf of the Company;

 (b) Purport to or sell, mortgage, lease or otherwise dispose of or encumber property of the Company; 
 (c) Purchase any real estate or equipment on behalf of the Company; or 
 (d) Exercise or represent to any third party that such Member as such has the right to exercise any of the powers of the Managers
described in this Operating Agreement. 
 Notwithstanding any other term or provision of this Operating Agreement, the terms and provisions
of this Section 7.3 cannot be amended or repealed unless such amendment or repeal first has been approved by the affirmative vote or written consent of the Members holding ONE HUNDRED PERCENT (100%) of the outstanding Membership Voting
Interests. 
 Section 7.4 Other Restrictions on Members. No Member, without the written consent of the Members holding more than
FIFTY PERCENT (50%) of the outstanding Membership Voting Interests, shall hypothecate all or any portion of such Member’s Membership Interest. 
 Section 7.5 Admission of New Members. Subject to all of the requirements of applicable gaming law and securities law, and in accordance with the terms and provisions of subparagraph (g) of
Section 5.9 of this Operating Agreement, new Members may be admitted to the Company from time to time in connection with the Company’s issuance and sale of Membership Interests in accordance with the terms and provisions of subparagraph
(f) of Section 5.9 of this Operating Agreement by the affirmative vote or written consent of the existing Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting Interests. Subject to all of the
requirements of applicable gaming law and securities law, new Members also may be admitted to the Company from time to time in connection with transfers of Membership Interests effected or to be effected in accordance with the terms and provisions
of ARTICLE XIV of this Operating Agreement but only in accordance with the terms and provisions of ARTICLE XIV of this Operating Agreement. Every new Member, before becoming such, shall complete, execute and deliver to the Company a securities law
suitability questionnaire for review by legal counsel in order to ensure that the admission of such new Member as such to the Company can be and is effected in compliance with all applicable securities law. Every new Member (and such new
Member’s spouse, where applicable) shall execute and deliver to the Company and the Members and the Interest Holders a counterpart of this Operating Agreement, thereby binding such Member (and such Member’s spouse, where applicable) to the
terms and provisions of this Operating Agreement, and further shall execute such other documents and instruments as the Board of Managers deems necessary or 

  

 23 

 
appropriate for admission as a Member. Notwithstanding any other term or provision of this Operating Agreement, the terms and provisions of this
Section 7.5 cannot be amended or repealed unless such amendment or repeal first has been approved by the affirmative vote or written consent of the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting
Interests. 
 Section 7.6 Resignation of Members. Subject to all of the requirements of applicable gaming and other law, a Member
may not resign from the Company as a Member before the dissolution and winding up of the Company in accordance with the terms and provisions of ARTICLE XVII of this Operating Agreement, except upon the transfer of a Member’s entire Membership
Interest to a Transferee in accordance with the terms and provisions of ARTICLE XIV in connection with which transfer such Transferee is admitted as a Member with respect to the entire Membership Interest so transferred, upon which event, the
resignation of such Member shall be deemed to have occurred automatically. 
 ARTICLE VIII 
 MEETINGS OF THE MEMBERS 
 Section 8.1 Annual Meetings. The annual meeting of the Members shall be held at the time and place designated by the Board. 
 Section 8.2 Special Meetings. Special meetings of the Members may be called at any time by any Manager or by Members holding more than SEVENTEEN PERCENT (17%) of the outstanding Membership Voting Interests by delivering
written notice of such meeting to the Managers. 
 Section 8.3 Voting Rights; Membership Voting Interests. Except as otherwise
required by Chapter 86, for the purpose of voting or approving or taking action required or permitted to be taken or approved by the Members under this Operating Agreement, each Member, upon and after becoming such, shall have voting power equaling
the percentage of all outstanding Membership Interests held by such Member and, if applicable, any assignee of such Member that has not been admitted as a Member under either Section 14.2 or Section 14.5 of this Operating Agreement,
determined as of the date of giving notice of the meeting of the Members or as of the date of the notice for proposed action by written consent without a meeting of the Members. For all purposes of this Operating Agreement, such voting power of each
Member shall constitute and be such Member’s individual Membership Voting Interest. If any Member transfers all or any portion of such Member’s Membership Interest to a person who by reason of such transfer becomes an Interest Holder but
is not admitted as a Member in accordance with the terms and provisions of Section 14.2 or Section 14.5 of this Operating Agreement, then such Transferring Member shall continue to be a Member and retain the Membership Voting Interest
theretofore associated with such transferred Membership Interest until such time (if any) as the transferee Interest Holder of such transferred Membership Interest (or such transferee Interest Holder’s successor in interest) is admitted to the
Company as a Member in accordance with the terms and provisions of Section 14.2 of this Operating Agreement, and in all events and for all purposes such Membership Voting Interest theretofore associated with such transferred Membership Interest
shall continue to be, and shall continue to be considered, outstanding. In every such case, the Transferring Member shall continue to be a Member and retain the Membership Voting Interest theretofore associated with the transferred Membership
Interest of such Member even if such Member so has transferred such Member’s entire Membership Interest to one or more assignees. If any such assignee desires to make a further assignment of any Membership Interest, then such assignee shall be
subject to all of the terms and provisions of this Operating Agreement to the same extent and in the same manner as any Member desiring to make such an assignment. 
  

 24 

 Section 8.4 Notice. The Managers shall cause written notice of the annual meeting and any
special meeting of the Members to be given to each Member entitled to vote at such meeting, either in person or by first class mail, postage pre-paid, not less than TEN (10) days nor more than SIXTY (60) days before such meeting. The
notice shall specify the place, the day and the hour of such meeting. In addition, the notice for any special meeting shall specify the purpose or purposes for which such meeting is called. Notice shall be deemed delivered by first class mail if
mailed to the address of each Member as such Member’s address appears on the Company’s records. 
 Section 8.5 Waiver of
Notice. Any meeting of the Members, however called and noticed or wherever held, shall be as valid as if duly held after regular call and notice if a quorum (as specified in Section 8.7) is present at such meeting and, either before or
after such meeting, each of the Members not present at such meeting signs a written waiver of notice or a consent to the holding of such meeting or an approval of the minutes thereof. All such waivers, consents or approvals shall be filed with the
records or made a part of the minutes of the meeting. 
 Section 8.6 Adjourned Meetings and Notice Thereof. Any meeting of the
Members, annual, regular or special, whether or not a quorum (as specified in Section 8.7) is present, may be adjourned from time to time by the vote of the Members holding more than FIFTY PERCENT (50%) of the outstanding Membership Voting
Interests present in person or represented by proxy at such meeting, but in the absence of a quorum no other business may be transacted at such meeting. Other than by announcement at the meeting at which such adjournment is taken, it shall not be
necessary to give any notice of an adjournment or of the business to be transacted at an adjourned meeting; provided, however, that when any meeting of the Members, either annual, regular or special, is adjourned for THIRTY (30) days or more,
notice of the adjourned meeting shall be given as in the case of an original meeting. 
 Section 8.7 Action by the Members; Meetings;
Quorum; Vote Required. The Members may vote only on matters as to which the Members are authorized to take action in accordance with this Operating Agreement or by applicable law and not subject to modification or waiver. Except as otherwise
specifically provided herein, Members may vote on or approve a matter or take any action by the vote of Members at a meeting, in person or by proxy, or without a meeting by written consent. For any meeting of the Members, the presence in person or
by proxy of Members holding more than FIFTY PERCENT (50%) of the outstanding Membership Voting Interests at the time of the action taken constitutes a quorum. 
 Section 8.8 Action by Written Consent. Any action may be taken by the Members without a meeting if authorized by the written consent of the Members holding more than FIFTY PERCENT (50%) of the
outstanding Membership Voting Interests or such higher percentage as required under Chapter 86 or this Operating Agreement. In no instance where action is authorized by such written consent need a meeting of the Members be called or noticed.

 Section 8.9 Place of Meetings of the Members. The meetings of the Members shall be held at the location provided for in the
notice thereof. 
  

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 ARTICLE IX 
 CAPITAL CONTRIBUTIONS AND MEMBERSHIP INTERESTS 
 Section 9.1 Capital Contributions. The
capital contributions of the Members shall be the amounts of the capital accounts of the Members as adjusted, including the adjustment referred to in Section 10.1(d) The Capital Account of the Members shall be set forth on Schedule A hereof. As
of the date of effectiveness of this Operating Agreement, the Company acknowledges having received all initial capital contributions of the Members, which, in accordance with this Section 9.1, have been or shall be credited to the Members’
respective capital accounts as current capital contributions to the capital of the Company. 
 Section 9.2 Membership Interests.
The respective Membership Interests of the Members are as follows: 
  

				
	 Member
	  	Membership Interest	 
	 RECREATIONAL ENTERPRISES, INC.
	  	47.0415	% 
	 HOTEL-CASINO MANAGEMENT, INC.
	  	24.8037	% 
	 HOTEL CASINO REALTY INVESTMENTS, INC.
	  	5.1318	% 
	 LUDWIG J. CORRAO
	  	4.2765	% 
	 NGA ACQUISITIONCO, LLC
	  	17.0359	% 
	 GARY L. CARANO QUALIFIED S CORPORATION TRUST
	  	.34212	% 
	 GLENN T. CARANO QUALIFIED S CORPORATION TRUST
	  	.34212	% 
	 GENE R. CARANO QUALIFIED S CORPORATION TRUST
	  	.34212	% 
	 GREGG R. CARANO QUALIFIED S CORPORATION TRUST
	  	.34212	% 
	 CINDY L. CARANO QUALIFIED S CORPORATION TRUST
	  	.34212	% 
		  	 	 
		  	100	% 

 Section 9.3 Subsequent Capital Contributions. Subject to the prior approval of the
vote or written consent of Members holding SEVENTY-FIVE PERCENT (75%) of the outstanding Membership Voting Interests at any time and from time to time, the Board of Managers may request, but not require, that every Member and Interest Holder
make additional contributions of capital to the Company. Each such request made to every Member and Interest Holder initially shall be for such proportion of the total additional contribution of capital requested from all of the Members and the
Interest Holders as the Membership Interest that such Member or Interest Holder holds bears to the total Membership Interests held by all of the Members and the Interest Holders. If all of the Members and the Interest Holders do not make additional
contributions of capital to the Company within TEN (10) days after being so requested, then those Members and Interest Holders who make such additional contributions of capital to the Company within that period (the “Contributing Members
and Interest Holders”) collectively and individually shall have the right and option within TEN (10) days after such initial TEN (10) day period to make more additional contributions of capital to the Company up to the total amount of
contributions of capital to the Company requested in accordance with the foregoing but not made (the “Uncontributed Amount”), each Contributing Member and Interest Holder individually (a) first in such proportion of the total
Uncontributed Amount as the Membership Interest that each Contributing Member or Interest Holder holds bears to the total 

  

 26 

 
Membership Interests held by all of the Contributing Members and Interest Holders but (b) ultimately in such proportion of the total Uncontributed
Amount as the Membership Interest that each Contributing Member or Interest Holder electing to exercise such right and option holds bears to the total Membership Interests held by all of the Contributing Members and Interest Holders electing to
exercise such right and option. The foregoing formula contemplates the possibility that, within such second TEN (10) day period, any ONE (1) of the Contributing Members or Interest Holders individually (if no other Contributing Member or
Interest Holder elects to contribute any part of the Uncontributed Amount in accordance with the foregoing formula) may make an additional contribution of capital to the Company equaling the entire Uncontributed Amount. If certain Members and
Interest Holders elect to make additional contributions of capital to the Company upon request in accordance with the foregoing terms and provisions, and certain other Members and Interest Holders elect not to make additional contributions of
capital to the Company upon request in accordance with the foregoing terms and provisions, then the Membership Interests of Members and Interest Holders who elect to make such additional contributions of capital to the Company shall increase
accordingly, and the Membership Interests of Members and Interest Holders who elect not to make such additional contributions of capital to the Company shall be diluted in accordance with the Members’ aggregate capital contributions (with the
capital contributions as of the date hereof as set forth on Schedule A attached hereto. The Board of Managers has no authority to, and shall not, request that any Member or Interest Holder make an additional contribution of capital to the Company
except in accordance with the terms and provisions of this Section 9.3. 
 Section 9.4 NGA Additional Interests. Except as
otherwise provided in this Section 9.4 and 9.5, the holder of the NGA Additional Interests shall have all rights, obligations, limitations and restrictions as all other Members and holders of Membership Interests. The Majority NGA Holder(s)
shall be entitled to designate one (1) of the five (5) Managers serving on the Board of Managers of the Company. The initial designated representative of NGA to serve on the Board of Managers of the Company is Thomas Reeg (Reeg). Except as
otherwise provided herein, Reeg shall continue to serve as the designated representative of NGA, unless replaced by NGA, so long as NGA or an Affiliate of NGA remains a Member of the Company. In the event of the death or disability of Reeg or the
termination or resignation of Reeg as a representative of NGA, NGA shall designate a replacement representative to Reeg which designation shall be subject to the Company’s consent which shall not be unreasonably withheld or delayed. If, for any
reason, the designated representative of NGA is determined by any applicable gaming authority, including without limitation the Nevada Gaming Authorities, not to be suitable or qualified to be a Manager of the Company, NGA will be entitled to
nominate a replacement Manager. 
 Section 9.5 NGA Specific Rights. All NGA’s Membership Interests shall be subject to the
buy-sell rights, the transfer restrictions and provisions as provided in this Section 9.5. The buy-sell rights become exercisable only upon the occurrence of a Material Event (as defined below) or at any time after June 14, 2015
(“Trigger Date”). 
 (a) At any time after the occurrence of a Material Event or any time following the Trigger
Date, the Majority NGA Holder shall have the right to sell (“Put”) all but not less than all of its NGA Additional Interests to Company and Company shall have the right to purchase (“Call”) all but not less than all of NGA’s
Membership Interest, at a price equal to the fair market value of the NGA Additional Interests and/or NGA’s Membership Interest without discounts for minority ownership and lack of marketability. The purchase price shall be determined by mutual
agreement of NGA and the Company. In the event that after good faith negotiations, or in any event 

  

 27 

 
THIRTY (30) days after delivery of the Option Notice (as defined below) (the “Negotiation Period”) the Company and NGA have not mutually
agreed on a purchase price for the NGA Interests, then the purchase price shall be determined by the average of two (2) appraisals by nationally recognized appraisers of private companies with one appraisal obtained and paid for by NGA and one
appraisal obtained and paid for by the Company, if and only if such appraisals are within a 5% range of value based upon the lowest of such appraisals. If the referenced two appraisals are not within a 5% range, the purchase price shall be
determined by the average of a third mutually acceptable, independent, nationally recognized appraiser of private companies (with NGA and Company to each pay one-half of costs) and the next nearest appraisal of the two appraisals engaged by each of
the parties unless the third appraisal is at the mid-point of the original two appraisals, in which event the third appraisal shall be used to established the fair market value. The selection of such appraisers shall occur no later than THIRTY
(30) days after termination of the Negotiation Period. Either NGA or the Company, as the case may be, shall deliver written notice to the other party initiating its applicable Put or Call rights under this Section 9.5 (the “Option
Notice”). 
 (b) NGA shall have the right to sell or assign the NGA Interests to an Affiliate subject to the terms of the
Operating Agreement including but not limited to the Put and Call provisions set forth in this Section 9.5 and subject to the consent of the Company which shall not be unreasonably withheld and so long as the Company’s right to exercise
its Call rights are not materially impaired. 
 (c) So long as a Material Event has not occurred, NGA or its successors and
assigns shall have the right to unilaterally extend the Trigger Date for two one-year extension periods. This right shall be exercised by giving written notice of the extension of the Trigger Date at least thirty (30) days before reaching the
then applicable Trigger Date. 
 (d) Upon exercise of either the Call or the Put as provided herein, the transaction shall
close on or before one year of the anniversary date of the Option Notice unless delayed by obtaining the necessary approvals from the applicable Gaming Authorities. All parties agree to proceed in good faith and with due diligence to close any such
transaction. Upon close, the purchase price shall be paid in full, in cash, by the Company. 
 (e) A Material Event for the
purpose of allowing Company to exercise the right to Call the NGA Interests shall mean the loss, forfeiture, surrender or termination of a material license or finding of unsuitability issued by one or more of the applicable Gaming Authorities with
respect to Reeg, NGA or any transferee of NGA or any affiliate of NGA. In the event that a Material Event occurs prior to the Trigger Date or during an extension thereof, NGA or its assignee or affiliate shall provide carry back financing to the
Company on terms and conditions reasonably acceptable to the Company. Upon the occurrence of a Material Event, the Company shall have the right at any time to Call NGA’s Membership Interest if required or ordered by any one or more of the
applicable Gaming Authorities and such Call shall be on the terms as provided for herein, unless other terms are required by any of the applicable Gaming Authorities in which event, the Call shall be on such other terms. 
  

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 (f) A Material Event for the purpose of allowing NGA or its transferee(s) to exercise the
right to Put the NGA Interests to the Company shall mean the loss, forfeiture, surrender or termination of a material license or finding of unsuitability by the applicable Gaming Authorities with respect to the Company, any affiliate of the Company
(other than NGA or its affiliates) including but not limited to the Eldorado Hotel and Casino, the Eldorado Shreveport Hotel and Casino and the Silver Legacy Hotel and Casino. 
 (g) In the event of a public offering of equity securities by the Company in which any Member of the Company is allowed to participate,
NGA shall have rights equivalent to other Members of the Company to sell such equity securities of the Company held by NGA on a pro rata basis with the other Members of such offering. In addition, NGA shall be granted registration rights to conduct
a secondary offering in accordance with the Registration Rights Agreement. The Company shall pay all expenses associated with the initial registration and public offering. Upon such initial public offering, the Put and Call provisions set forth in
this Section 9.5 shall terminate and be of no further force and effect. 
 ARTICLE X 
 CAPITAL ACCOUNTS 
 Section 10.1
Composition of Capital Accounts. Separate capital accounts shall be maintained by the Company for each Member and Interest Holder in accordance with Section 704(b) of the Internal Revenue Code and the Regulations promulgated thereunder,
representing the Members’ and the Interest Holders’ respective capital contributions to the Company. 
 (a) The
capital account of each Member and Interest Holder shall consist of the capital contribution credited by the Company to such Member’s or Interest Holder’s respective capital account in accordance with the terms and provisions of Sections
9.1 and 9.2 of this Operating Agreement, increased by the following: 
 (i) The fair market value of additional capital
contributions of property made by such Member or Interest Holder to the Company (net of liabilities secured by such contributed property to the extent that the Company under Section 752 of the Internal Revenue Code is considered to assume such
liabilities or to take the contributed property subject to such liabilities); 
 (ii) Additional cash and other forms of
capital contributions made by such Member or Interest Holder in accordance with Section 9.3 of this Operating Agreement; and 
 (iii) Such Member’s or Interest Holder’s share of the Net Profits and items of income and gain allocated to the Members and the Interest Holders in accordance with ARTICLE XI of this Operating Agreement, including income and gain
as computed for book purposes in accordance with Regulations Section 1.704-1(b)(2)(iv)(g). 
  

 29 

 (b) The capital account of each Member and Interest Holder shall be decreased by the
following: 
 (i) The amount of money distributed to such Member or Interest Holder by the Company in accordance with ARTICLE
XIII of this Operating Agreement; 
 (ii) The fair market value of property distributed to such Member or Interest Holder by
the Company (net of liabilities secured by such property to the extent that such Member or Interest Holder under Section 752 of the Internal Revenue Code is considered to assume such liabilities or to take such property subject to such
liabilities); and 
 (iii) Allocations to such Member or Interest Holder of Net Losses and Company deductions, including Net
Losses and Company deductions computed for book purposes described in Regulations Section 1.704-1(b)(2)(iv)(g). 
 (c) In
cases where Section 704(c) of the Internal Revenue Code applies to property of the Company, the Members’ and the Interest Holders’ capital accounts shall be adjusted in accordance with Regulations Section 1.704-1(b)(2)(iv)(g) for
allocations to the Members and the Interest Holders of depreciation, depletion, amortization, gain and losses, as computed for book purposes, with respect to such property. 
 (d) The capital accounts of the Members and the Interest Holders may be adjusted to reflect a revaluation of Company property (including
intangible assets such as goodwill) on the Company’s books to the extent provided in Regulations Section 1.704-1(b)(2)(iv)(f). 
 (e) The Tax Matters Partner may make all elections for federal income tax purposes, including an election to adjust the basis of the Company’s property in accordance with Sections 734, 743 and 754 of the Internal
Revenue Code, in the event of a transfer of a Membership Interest or a distribution of property by the Company and shall make such election at the request of NGA. The Members’ and Interest Holders’ capital accounts shall be adjusted to the
extent provided in Regulations Section 1.704-1(b)(2)(iv)(m). 
 (f) The terms and provisions of this Operating Agreement
regarding the maintenance of capital accounts are intended to comply with Section 704(b) of the Internal Revenue Code as amended from time to time (“Section 704(b)”) and the Regulations (especially Regulations Section 1.704-1(b))
as amended from time to time, and shall be interpreted and applied in a manner consistent with Section 704(b) and the Regulations. In the event that the Board of Managers and/or the Tax Matters Partner determines that it is necessary to modify
the manner in which the capital accounts, or debits or credits thereto, are computed in order to comply with Section 704(b) and the Regulations, the Board of Managers and/or the Tax Matters Partner may make such modification, provided that such
modification is not likely to have a material effect on the amounts distributable to any Member or Interest Holder under ARTICLE XIII of this Operating Agreement or upon the dissolution of the Company. If the Board of Managers and/or the Tax Matters
Partner determines that such adjustments are 

  

 30 

 
necessary under Regulations Section 1.704-1(b)(2)(iv), the Board of Managers and/or the Tax Matters Partner shall adjust the amounts debited or credited
to capital accounts with respect to (a) any property contributed to the Company or distributed to the Members and the Interest Holders and (b) any liability that is secured by such contributed or distributed property or that is assumed by
the Company. The Board of Managers and/or the Tax Matters Partner also shall make necessary modifications to the capital accounts if unanticipated events otherwise might cause this Operating Agreement not to comply with Regulations
Section 1.704-1(b); provided, however, that the Board of Managers and/or the Tax Matters Partner shall consult with the Members before doing so to the extent feasible. 
 Section 10.2 No Withdrawal or Return of Capital Contribution. Except as otherwise expressly provided in this Operating Agreement, no Member
or Interest Holder shall have the right to withdraw or receive any return of such Member’s or Interest Holder’s capital contribution made to the Company. 
 Section 10.3 Transfer of Membership Interest. In the event that any Membership Interest is transferred in accordance with the terms and provisions of this Operating Agreement, the Transferee shall succeed
to the capital account of the Transferring Member to the extent that such capital account relates to the transferred Membership Interest. 
 ARTICLE XI 
 PROFITS AND LOSSES 
 Section 11.1 Net Profits and Losses. After giving effect to the special allocations set forth in Sections 11.2 and 11.3 of this Operating Agreement, Net Profits and Net Losses shall be allocated and
credited to the Members’ and Interest Holders’ respective capital accounts in proportion to their respective Membership Interests. 
 Section 11.2 Special Allocations. Notwithstanding Section 11.1 of this Operating Agreement: 
 (a)
If there is a net decrease in Company Minimum Gain or Member Minimum Gain during any fiscal year of the Company, then the Members and the Interest Holders shall be allocated items of Company income and gain for such fiscal year (and, if necessary,
for subsequent fiscal years) in accordance with Regulations Section 1.704-2(f) or Section 1.704-2(i)(4), as applicable. 
 (b) Any Member Nonrecourse Deductions for any fiscal year shall be specially allocated to the Members and the Interest Holders who bear the economic risk of loss with respect to the Member Nonrecourse Debt to which such Member Nonrecourse
Deductions are attributable, in accordance with Regulations Section 1 704-2(j). 
 (c) Items of Company income and gain
shall be allocated to the Members and Interest Holders in accordance with the “qualified income offset” requirements of Regulations Section 1.704-1(b)(2)(ii)(d). 
 (d) To the extent that any allocation of losses would cause or increase an Adjusted Capital Account Deficit as to any Member or Interest
Holder, such allocation of losses shall be reallocated among the other Members and Interest Holders in proportion to their respective Membership Interests, but in a manner that will not produce an Adjusted Capital Account Deficit as to any other
Member or Interest Holder. 
  

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 Section 11.3 Curative Allocations. The allocations set forth in Section 11.2 of this
Operating Agreement (the “Regulatory Allocations”) are intended to comply with certain requirements of Section 704 of the Internal Revenue Code and the Regulations promulgated thereunder. Notwithstanding any other provision of
Section 11.1, the Regulatory Allocations shall be taken into account in allocating other profits, losses and items of income, gain, loss and deduction among the Members and the Interest Holders so that, to the extent possible, the net amount of
such Regulatory Allocations of other profits, losses and other items and the Regulatory Allocations to each Member and Interest Holder shall be equal to the net amount that would have been allocated to each such Member and Interest Holder if the
Regulatory Allocations had not occurred. 
 Section 11.4 Federal Income Tax. It is the intent of the Company and all of the
Members that the Company shall be governed by the applicable terms and provisions of Subchapter K of Chapter 1 of the Internal Revenue Code as amended from time to time (“Subchapter K”) and similar terms and provisions of state tax laws.
No election shall be made by the Company, the Board of Managers, the Tax Matters Partner, any Member or any Interest Holder to be excluded from the application of the terms and provisions of Subchapter K or from similar state tax laws. 

Section 11.5 Other Allocation Rules. For any fiscal year of the Company during which a Membership Interest is assigned by any Member or
Interest Holder, the portion of the Net Profits or Net Losses that is allocable in respect of such Membership Interest shall be apportioned between the assignor and the assignee on any basis selected by the Board of Managers, provided that such
basis is permitted by Section 706(d)(2) of the Internal Revenue Code, and provided that any transferor may request, at its expense, that the allocation be effected for all items or extraordinary items in accordance with a closing of the books.

 Section 11.6 Tax Allocations. 
 (a) Except as otherwise provided in this Section 11.6, each item of income, gain, loss and deduction shall be allocated for income tax purposes among the Members and the Interest Holders in the same manner as its
correlative item of “book” income, gain, loss or deduction is allocated pursuant to the terms and provisions of this ARTICLE XI. 
 (b) Notwithstanding subparagraph (a) of this Section 11.6, income, gain, loss and deduction with respect to property contributed to the Company by a Member shall be allocated among the Members, pursuant to
Regulations promulgated under Section 704(c) of the Internal Revenue Code, so as to take account of the variation, if any, between the adjusted basis of such property to the Company and its initial value. The Company shall account for such
variation under any method approved under Section 704(c) of the Internal Revenue Code and the applicable Regulations as chosen by the Board of Managers. If the value of any Company asset is adjusted pursuant to subparagraph (d) of
Section 10.1 of this Operating Agreement, then subsequent allocations of income, gain, loss and deduction with respect to such asset shall take account of the variation, if any, between the adjusted basis of such asset for federal income tax
purposes and its value in the same manner as under Section 704(c) 

  

 32 

 
of the Internal Revenue Code and the applicable Regulations, consistent with the requirements of Regulations Section 1.704-1(b)(2)(iv)(g), using any
method approved under Section 704(c) of the Internal Revenue Code and the applicable Regulations, as chosen by the Board of Managers. Allocations pursuant to this subparagraph (b) of this Section 11.6 are solely for the purposes of
federal, state and local income taxes and shall not affect, or in any way be taken into account in computing, the capital account of any Member or Interest Holder or any Member’s or Interest Holder’s share of Net Profits, Net Losses, other
tax items or distributions pursuant to any provision of this Operating Agreement. 
 ARTICLE XII 
 NO INTEREST 
 No Member or Interest
Holder will be credited with interest on such Member’s or Interest Holder’s capital account. 
 ARTICLE XIII 
 DISTRIBUTIONS TO MEMBERS 
 Section 13.1 Distributions. The Board of Managers shall determine the amount of cash, if any, available for distribution to the Members and the Interest Holders at such times as the Board of Managers deems advisable. The
distribution shall be based on all relevant factors, including, without limitation, the operating expenses and debt service of the Company, sums expended by the Company for capital expenditures and a reasonable reserve for working capital.

 Section 13.2 Amount of Distributions. Notwithstanding any other provision of this Operating Agreement, no distribution to the
Members or the Interest Holders or to any other person shall be made if, after the distribution is made, the assets of the Company are less than all liabilities of the Company, except liabilities to Members or Interest Holders on account of their
capital contributions. 
 Section 13.3 Allocation of Distributions. Distributions made shall be made in proportion to the
Members’ and Interest Holders’ Membership Interests as of the date of distribution, unless otherwise agreed by the vote or written consent of the Members holding ONE HUNDRED PERCENT (100%) of the outstanding Membership Voting
Interests. 
 Section 13.4 Mandatory Distributions. Except as provided in Section 13.2 of this Operating Agreement, the
Board of Managers on an annual basis shall distribute to each Member an amount equal to that Member’s allocable share of Net Profits for the applicable year multiplied by the highest marginal income tax rate applicable to individuals under the
Internal Revenue Code; provided, however, that this Section 13.4 shall have no application or force or effect upon and after any event that causes the Company thereafter to be taxed under the Internal Revenue Code as a corporation. 

/ / / 
 / / / 
 / / / 
  

 33 

 ARTICLE XIV 
 RESTRICTIONS ON TRANSFER OF MEMBERSHIP INTERESTS 
 THE TERMS AND PROVISIONS OF THIS ARTICLE XIV ARE
SUBJECT TO THE TERMS 
 AND PROVISIONS OF ARTICLE XV OF THIS OPERATING AGREEMENT. 
 Section 14.1 Options and Rights to Purchase. Except as otherwise provided in this Operating Agreement, no Transferring Member shall sell,
transfer, assign or otherwise dispose of all or any portion of such Transferring Member’s Membership Interest to any proposed Transferee (a “Proposed Transferee”) without first offering to sell such Membership Interest to the Company
and the Members in the manner provided in this Section 14.1. The Transferring Member shall send to the Company a written offer executed by the Proposed Transferee (the “Proposed Transferee’s Written Offer”) stating (a) the
exact Membership Interest to be purchased by the Proposed Transferee, (b) the amount of the purchase price, (c) the terms of the purchase and (d) the qualifications of the Proposed Transferee, if any, required to own a Membership
Interest. 
 Within THIRTY (30) days after the Company’s receipt of the Proposed Transferee’s Written Offer (the
“Company’s Option Period”), the Company shall have the option and right to purchase all, and only all, of the Membership Interest of the Transferring Member described in the Proposed Transferee’s Written Offer under the terms set
forth in the Proposed Transferee’s Written Offer; provided, however, that such option and right to purchase of the Company shall be NULL and VOID if the sale to the Company of the Membership Interest of the Transferring Member described in the
Proposed Transferee’s Written Offer would result in the Company having only ONE (1) Member. Whether or not the Company shall exercise such option and right to purchase shall be determined by the vote or written consent of the Members
holding more than FIFTY PERCENT (50%) of the outstanding Membership Voting Interests, excluding the outstanding Membership Voting Interests held by the Transferring Member. 
 Within FIVE (5) days after the Company’s failure or election not to exercise the Company’s option and right to purchase provided by this
Section 14.1 (for any reason, including that such right and option is NULL and VOID under the immediately-preceding paragraph hereof), the Board of Managers shall forward to each of the Members a copy of the Proposed Transferee’s Written
Offer together with a statement that the Company has failed or elected not to exercise the Company’s option and right to purchase (such statement of the Company, for the purposes of this Section 14.1, the “Company’s
Statement”), who collectively and individually then shall have the right and option, but no obligation, to purchase all, and only all, of the Membership Interest of the Transferring Member described in the Proposed Transferee’s Written
Offer under the terms set forth in the Proposed Transferee’s Written Offer. Any Member desiring to acquire all or a portion of the Membership Interest of the Transferring Member described in the Proposed Transferee’s Written Offer shall
deliver to the Board of Managers a written election to purchase such Membership Interest of the Transferring Member or a specified portion thereof within THIRTY (30) days after the date of the Company’s Statement (such THIRTY (30) day
period, for the purposes of this Section 14.1, the “Members’ Option Period”). If, in accordance with the immediately-preceding sentence hereof, the Company during the Members’ Option Period receives notice from Members
electing to purchase in the aggregate more than the Membership Interest of the Transferring Member described in the Proposed Transferee’s Written Offer, then each purchasing Member shall have priority, up to the amount of such Membership
Interest of the Transferring Member specified in such purchasing Member’s notice, to purchase such proportion of such Membership Interest of the Transferring Member as such purchasing Member’s Membership Interest bears to the total
Membership Interests held by Members electing to purchase. 
  

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 Within FOURTEEN (14) days after the expiration of the Members’ Option Period, the Board of
Managers shall notify each purchasing Member as to what extent, if at all, such purchasing Member’s election was effective. Each such purchasing Member shall satisfy the terms and conditions of the purchase within TWENTY ONE (21) days
after receipt of such Board of Managers’ notification. 
 If, in accordance with the foregoing terms and provisions of this
Section 14.1, neither the Company nor the Members have elected to exercise their option and right to purchase all of the Membership Interest of the Transferring Member described in the Proposed Transferee’s Written Offer, then (provided
that, in accordance with subparagraph (d) of Section 17.1 of this Operating Agreement, such sale, transfer, assignment or other disposition does not cause the Company to dissolve), subject to the remaining terms and provisions of this
Section 14.1 and the terms and provisions of Section 14.2 of this Operating Agreement, the Transferring Member may sell, transfer, assign or otherwise dispose of such Membership Interest of the Transferring Member to the Proposed
Transferee under the exact terms specified in the Proposed Transferee’s Written Offer. Notwithstanding the foregoing, the Transferring Member’s sale, transfer, assignment or other disposition of such Membership Interest of the Transferring
Member to the Proposed Transferee under the exact terms specified in the Proposed Transferee’s Written Offer shall be conditioned (the “Gaming Approval Condition”) on the receipt by the Proposed Transferee, in accordance with the
terms and provisions of ARTICLE XV of this Operating Agreement, of a license to hold an ownership interest in a gaming licensee in all jurisdictions where Company operates. Within SIXTY (60) days after the expiration of the Members’ Option
Period, the Proposed Transferee shall file with the applicable Gaming Authorities an application for a gaming license (the “Gaming License Applications”). The Proposed Transferee shall prosecute the Gaming License Applications with all
reasonable diligence and otherwise use best efforts to obtain the Gaming Licenses as expeditiously as practicable, without delay. Notwithstanding the foregoing, under no circumstance shall the Proposed Transferee have more than ONE HUNDRED EIGHTY
(180) days after the date of filing of the Gaming License Applications with the applicable Gaming Authorities to obtain the Gaming Licenses. If, in accordance with the foregoing terms and provisions of this Section 14.1, the Transferring
Member does not sell, transfer, assign or otherwise dispose of the Membership Interest of the Transferring Member described in the Proposed Transferee’s Written Offer to the Proposed Transferee under the exact terms specified in the Proposed
Transferee’s Written Offer within TWO HUNDRED FIFTY (250) days after the expiration of the Members’ Option Period, then the Transferring Member shall, before so selling, transferring, assigning or otherwise disposing of such
Membership Interest of the Transferring Member to the Proposed Transferee or any other Transferee, re-offer such Membership Interest of the Transferring Member to the Company and the Members in the manner provided in this Section 14.1.

 Section 14.2 Substitute Members; Rights of Transferees. Except as otherwise permitted by Section 14.4 hereof and
notwithstanding any other term or provision of this Operating Agreement, a Transferee upon receipt of a Membership Interest shall become a Member only if and when each of the following conditions is satisfied: 
 (a) The Transferring Member of the Membership Interest transferred shall send written notice to the other Members requesting the admission
of the Transferee as a substitute Member with respect to the Membership Interest transferred and setting 

  

 35 

 
forth the name and address of the Transferee, the Membership Interest transferred and the effective date of the transfer; provided, however, that the
foregoing shall not apply to any transfer of a Membership Interest to a Proposed Transferee under Section 14.1 of this Operating Agreement or to any transfer of all or any portion of a Membership Interest effected under Section 14.5 of
this Operating Agreement (except as otherwise provided therein); 
 (b) Not less than a “majority in interest” (as
hereinafter defined) of the Members (excluding the Transferring Member) must approve of the Transferring Member’s sale, transfer, assignment or other disposition to the Transferee of the Transferring Member’s Membership Interest so
transferred and consent in writing to the admission of such Transferee as a Member, which approval and consent may be given or withheld by any Member in the sole and absolute discretion of such Member; provided, however, that, with respect to any
sale, transfer, assignment or other disposition to a Proposed Transferee under Section 14.1 of this Operating Agreement, the Members (excluding the Transferring Member) shall vote on such sale, transfer, assignment or other disposition and the
admission of such Proposed Transferee as a Member at a special meeting or in writing by no later than TEN (10) days after the expiration of the Members’ Option Period as defined in Section 14.1 of this Operating Agreement. For the
purposes of this subparagraph (b) of this Section 14.2, the term “majority in interest” means a majority in interest in profits of the Members, which is based on Membership Interests; 
 (c) The Transferee (and such Transferee’s spouse, where applicable) shall execute and deliver to the Company and the Members and the
Interest Holders a counterpart of this Operating Agreement, thereby binding such Transferee (and such Transferee’s spouse, where applicable) to the terms and provisions of this Operating Agreement, and further shall execute such other documents
and instruments as the Board of Managers deems necessary or appropriate for admission of the Transferee as a substitute Member; and 
 (d) Unless the Board of Managers approves otherwise, the Transferee shall reimburse the Company for all reasonable accounting, legal and other expenses incurred by the Company in connection with the transfer of a Membership Interest to such
Transferee and the admission of such Transferee as a Member. 
 If a sale, transfer, assignment or other disposition of a Membership Interest
to a Transferee under this ARTICLE XIV is approved and the admission of such Transferee as a Member is consented to as required by subparagraph (b) of this Section 14.2, then such Transferee shall be admitted to all of the rights and
powers of a Member, including holding a Membership Voting Interest, and shall be subject to all of the restrictions and liabilities of the Transferring Member; provided, however, that, in accordance with Nevada Revised Statutes Section 86.351,
in every such event the Transferring Member is not released from liability to the Company. Until such time, if any, as a Transferee is admitted to the Company as a substitute Member in accordance with the terms and provisions of this
Section 14.2, (i) such Transferee shall be an assignee only, and such Transferee only shall receive, to the extent transferred, the distributions and allocations of income, gain, loss, deduction, credit or similar item to which the
Transferring Member that transferred its Membership Interest to such Transferee would be entitled, and (ii) such Transferee shall not be entitled or enabled to exercise any other right or power of a Member, all of such other rights and powers
remaining with the Transferring Member. In every such case, the Transferring Member shall continue to 

  

 36 

 
be a Member and retain all rights as such theretofore associated with the transferred Membership Interest of such Member even if such Member so has
transferred such Member’s entire Membership Interest to one or more assignees. If any such Transferee desires to make a further assignment of any Membership Interest, then such Transferee shall be subject to all of the terms and provisions of
this Operating Agreement to the same extent and in the same manner as any Member desiring to make such an assignment. 
 Section 14.3
Additional Conditions to Transfer. Notwithstanding the terms and provisions of Section 14.1 of this Operating Agreement, no Member shall have the right voluntarily or involuntarily to sell, transfer, assign or otherwise dispose of all or
any portion of any Membership Interest, and no such purported sale, transfer, assignment or other disposition need be recognized by the Company, unless all of the following conditions are satisfied or waived by the Board of Managers: 
 (a) The sale, transfer, assignment or other disposition shall not of itself cause the Company to be in default under any indebtedness of
the Company; 
 (b) The Transferring Member shall deliver to the Company an opinion in form and substance and from legal
counsel reasonably acceptable to the Board of Managers stating that such sale, transfer, assignment or other disposition does not violate any federal securities law, or any applicable gaming law, the Transferee shall deliver such additional
documents respecting the Transferee’s investor suitability and other legal or investment matters as the Board of Managers reasonably may require, including, without limitation, the suitability questionnaire referred to in Section 7.5 of
this Operating Agreement, and the Company shall have no duty to participate in, cause or pay for any registration or qualification procedure under federal or state securities law; 
 (c) The Transferring Member shall deliver to the Company a fully-executed written agreement of sale, transfer, assignment or other
disposition that sets forth the name, address and social security or taxpayer identification number of the Transferee and the terms of such sale, transfer, assignment or other disposition, provided that such terms shall not conflict with any
provision of this Operating Agreement; and 
 (d) The Transferee (and such Transferee’s spouse, where applicable),
whether or not admitted to the Company as a Member under this Operating Agreement, shall execute and deliver to the Company and the Members and the Interest Holders a counterpart of this Operating Agreement, thereby binding the Transferee (and such
Transferee’s spouse, where applicable) to the terms and provisions of this Operating Agreement. 
 Section 14.4 Permitted
Transfers. Notwithstanding Section 14.1 of this Operating Agreement which shall not be applicable, but subject to the terms and provisions of Section 14.2 of this Operating Agreement and all of the requirements of applicable gaming law
and securities law, any Member at any time and from time to time may transfer all or any portion of such Member’s Membership Interest to any of the persons or entities listed in subparagraphs (a) through (d), inclusive, of this
Section 14.4: 
 (a) To the Company; 
 (b) To any other existing Member; 
  

 37 

 (c) To any ONE (1) or more entities that directly, or indirectly through one or more
intermediaries, control, or are controlled by, or are under common control with, any ONE (1) or more of the Members, whether or not such Members, immediately before such transfer, are the owners of the Membership Interests so transferred;
and/or 
 (d) To any Affiliate of NGA as provided in Section 9.5(b). 
 Section 14.5 Special Permitted Transfers. Notwithstanding Section 14.1 of this Operating Agreement, but subject to all of the
requirements of applicable gaming law and securities law, all or any portion of the Membership Interests (individually, a “Specially-Permitted Transferable Membership Interest,” and, collectively, the “Specially-Permitted Transferable
Membership Interests”) originally issued to and held as of the date of this Operating Agreement by Ludwig J. Corrao (the “Current Individual Member ) may be transferred, subject to the limitation set forth below in this Section 14.5,
at any time and from time to time by the Current Individual Member and any of the persons or entities listed in subparagraphs (a) through (c), inclusive, of this Section 14.5 to any of the persons or entities listed in subparagraphs
(a) through (c), inclusive, of this Section 14.5 (individually, a “Specially-Permitted Transferee,” and, collectively, the “Specially-Permitted Transferees”). For the purposes of this Section 14.5, the term
“Specially-Permitted Transferable Membership Interests” (i) shall not include Membership Interests acquired by the Current Individual Member after the date of this Operating Agreement and (ii) shall not include Membership
Interests acquired by any other person or entity after the date of this Operating Agreement unless (a) such other person or entity is a Specially-Permitted Transferee, and (b) such Membership Interests consist of all or any portion of the
Membership Interests originally issued to and respectively held by the Current Individual Member as of the date of this Operating Agreement, in which case such Membership Interests so acquired by such Specially-Permitted Transferee shall be included
in the term “Specially-Permitted Transferable Membership Interests” for the purposes of this Section 14.5. Notwithstanding any other term or provision of this Operating Agreement, but subject to the limitation set forth below in this
Section 14.5, all current Members holding ONE HUNDRED PERCENT (100%) of the outstanding Membership Voting Interests, and all future Members effective immediately upon their execution and delivery to the Company of a counterpart of this
Operating Agreement, hereby irrevocably approve by their affirmative written consent (the execution and delivery of this Operating Agreement or any counterpart of this Operating Agreement constituting such written consent for this purpose) any
transfer of all or any portion of the Specially-Permitted Transferable Membership Interests effected under this Section 14.5 and the admission as Members of any or all of the persons or entities listed in subparagraphs (a) through (c),
inclusive, of this Section 14.5 upon the receipt by such persons or entities of all or any portion of such Specially-Permitted Transferable Membership Interests so transferred. In the alternative, notwithstanding any other term or provision of
this Operating Agreement, but subject to the limitation set forth below in this Section 14.5, all current Members, and all future Members effective immediately upon their execution and delivery to the Company of a counterpart of this Operating
Agreement, hereby irrevocably agree and bind themselves to be obligated, upon request at any time and from time to time by any holder of Specially-Permitted Transferable Membership Interests, such request being made in the sole and absolute
discretion of such holder of Specially-Permitted Transferable Membership Interests, to approve by their affirmative written consent any transfer of all or any portion of the Specially-Permitted Transferable Membership Interests effected under this
Section 14.5 and the admission as Members of any or all of the persons or entities listed in subparagraphs (a) through (c), inclusive, of this Section 14.5 upon the receipt by such persons or entities of all or any portion of such
Specially-Permitted Transferable Membership Interests so transferred. 
  

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 (a) To any ONE (1) or more entities that directly, or indirectly through one or more
intermediaries, control, or are controlled by, or are under common control with, any ONE (1) or more of the Members, whether or not such Members, immediately before such transfer, are the owners of the Specially-Permitted Transferable
Membership Interest so transferred; 
 (b) To any ONE (1) or more of the respective children and/or other lineal
descendants of the holder of the Specially-Permitted Transferable Membership Interest, by inter-vivos transfer, devise, bequest, declaration of trust (with the trustee of such trust being obligated under the terms of such trust to hold such
transferred Specially-Permitted Transferable Membership Interest subject to the terms and provisions of this Operating Agreement) or any other means; and/or 
 (c) To a revocable living trust for the benefit of the holder of the Specially- Permitted Transferable Membership Interest to the extent
allowed by local law (with the trustee of such revocable living trust being obligated under the terms of such trust to hold such transferred Specially-Permitted Transferable Membership Interest subject to the terms and provisions of this Operating
Agreement). 
 Notwithstanding any other term or provision of this Operating Agreement, but subject to the limitation set forth below in this
Section 14.5, effective immediately upon any sale, transfer, assignment or other disposition of all or any portion of a Specially-Permitted Transferable Membership Interest effected under this Section 14.5 to any of the persons or entities
listed in subparagraphs (a) through (c), inclusive, of this Section 14.5, such person or entity shall be admitted to all of the rights and powers of a Member, including holding a Membership Voting Interest, and shall be subject to all of
the restrictions and liabilities of the Transferring Individual Member; provided, however, that, in accordance with Nevada Revised Statutes Section 86.351, in every such event the Transferring Member is not released from liability to the
Company. 
 Section 14.6 Transfer Upon Death of Individual Member. Provided that, in accordance with subparagraph (d) of
Section 17.1 of this Operating Agreement, such event does not cause the Company to be dissolved, and subject to the terms and provisions of Section 14.2 and Section 14.5 of this Operating Agreement, within a period beginning with the
death of any individual Member (a “Decedent Individual Member”) and ending ONE HUNDRED EIGHTY (180) days after the qualification of the Decedent Individual Member’s executor or administrator, the Company shall have the right and
option, but no obligation, to purchase all, and only all, of the Decedent Individual Member’s Membership Interest for the purchase price determined under Section 14.8 of this Operating Agreement and, subject to the remaining terms and
provisions of this Section 14.6, under the terms and provisions of Section 14.9 of this Operating Agreement; provided, however, that such option and right to purchase of the Company shall be NULL and VOID if the sale to the Company of the
Membership Interest of the Decedent Individual Member would result in the Company having only ONE (1) Member. Whether or not the Company shall exercise such option and right to purchase shall be determined by the vote or written consent of the
Members holding more than FIFTY PERCENT (50%) of the outstanding Membership Voting Interests, excluding the outstanding Membership Voting Interests held by the Decedent Individual Member. 
  

 39 

 Within FIVE (5) days after the Company’s failure or election not to exercise the Company’s
option and right to purchase provided by this Section 14.6 (for any reason, including that such right and option is NULL and VOID under the immediately-preceding paragraph hereof), the Board of Managers shall forward to each of the Members a
notice of the Decedent Individual Member’s death together with a statement that the Company has failed or elected not to exercise the Company’s option and right to purchase (such statement of the Company, for the purposes of this
Section 14.6, the “Company’s Statement”), who collectively and individually then shall have the right and option, but no obligation, to purchase all, and only all, of the Decedent Individual Member’s Membership Interest for
the purchase price determined under Section 14.8 of this Operating Agreement and under the terms and provisions of Section 14.9 of this Operating Agreement. Any Member desiring to acquire all or a portion of the Membership Interest of the
Decedent Individual Member shall deliver to the Board of Managers a written election to purchase such Membership Interest of the Decedent Individual Member or a specified portion thereof within THIRTY (30) days after the date of the
Company’s Statement (such THIRTY (30) day period, for the purposes of this Section 14.6, the “Members’ Option Period”). If, in accordance with the immediately-preceding sentence hereof, the Company during the
Members’ Option Period receives notice from Members electing to purchase in the aggregate more than the Membership Interest of the Decedent Individual Member, then each purchasing Member shall have priority, up to the amount of such Membership
Interest of the Decedent Individual Member specified in such purchasing Member’s notice, to purchase such proportion of such Membership Interest of the Decedent Individual Member as such purchasing Member’s Membership Interest bears to the
total Membership Interests held by Members electing to purchase. 
 Within FOURTEEN (14) days after the expiration of the Members’
Option Period, the Board of Managers shall notify each purchasing Member as to what extent, if at all, such purchasing Member’s election was effective. Each such purchasing Member shall satisfy the terms and conditions of the purchase within
TWENTY ONE (21) days after receipt of such Board of Managers’ notification or, if precluded from doing so by probate or other similar proceedings, then as soon as practicable pursuant to such proceedings. 
 If, in accordance with the foregoing terms and provisions of this Section 14.6, neither the Company nor the Members have elected to exercise their
option and right to purchase all of the Membership Interest of the Decedent Individual Member, then (provided that, in accordance with subparagraph (d) of Section 17.1 of this Operating Agreement, such sale, transfer, assignment or other
disposition does not cause the Company to dissolve) the executor or administrator or other authorized representative of the Decedent Individual Member’s estate or any successor of the Decedent Individual Member may sell, transfer, assign or
otherwise dispose of the Membership Interest of the Decedent Individual Member, but only in accordance with the terms and provisions of Section 14.1 and Section 14.2 of this Operating Agreement. 
 If, in accordance with the foregoing terms and provisions of this Section 14.6, either the Company or the Members have elected to exercise their
option and right to purchase all of the Membership Interest of the Decedent Individual Member, then the executor or administrator or other authorized representative of the Decedent Individual Member’s estate shall apply for and obtain any
necessary court approval or confirmation of the sale of the Membership Interest of the Decedent Individual Member, and the Company shall file the necessary proofs of death and collect the proceeds of outstanding insurance policies on the life of the
Decedent Individual Member owned by the Company, if any. If the purchase price is fully funded by the proceeds of such insurance policies, then the Company shall pay the purchase price in cash from the proceeds of such insurance policies, and the
remaining proceeds, if any, shall be Company 

  

 40 

 
property. If the purchase price is not fully funded by the proceeds of such insurance policies, then the Company shall pay the purchase price in cash up to
the full amount of the proceeds of such insurance policies and shall pay any remaining portion of the purchase price in accordance with the terms and provisions of Section 14.9 of this Operating Agreement. In order to ensure that all or a
substantial part of the purchase price for the Membership Interest of an individual Member will be available immediately in cash upon such individual Member’s death, the Company may procure and make subject to this Operating Agreement insurance
on the lives of any or all of the individual Members. The Company shall be the beneficiary and sole owner of all insurance policies issued to the Company subject to this Operating Agreement. The Company shall pay all premiums falling due under such
insurance policies. The Company shall have the right at any time to procure additional insurance policies on the lives of the individual Members and make such insurance policies subject to this Operating Agreement in order to keep the value of the
insurance policies owned by the Company in parity with the value of the outstanding Membership Interests. The Company shall be the beneficiary and sole owner of all such additional insurance policies. Other insurance policies may be substituted for
insurance policies made subject to this Operating Agreement, and insurance policies subject hereto may be withdrawn. Any addition, substitution or withdrawal of insurance policies shall be endorsed and signed by the Company and all of the Managers.

 Section 14.7 Triggering Events - Involuntary Transfer. Provided that, in accordance with subparagraph (d) of
Section 17.1 of this Operating Agreement, such event does not cause the Company to be dissolved, if any of the triggering events (individually, a “Triggering Event”) listed below occurs as to any Member (an “Affected
Member”), the Company and the Members who are not Affected Members shall have the rights and options, but no obligation, to purchase the entire Membership Interest owned by the Affected Member under the remaining terms and provisions of this
Section 14.7. 
 (a) A Member is adjudicated a bankrupt, either voluntary or involuntary; 
 (b) A Member makes an assignment for the benefit of creditors; 
 (c) A Member’s Membership Interest is subject to a writ of attachment or charging order; or 
 (d) The execution of any property settlement agreement between any Member and such Member’s spouse, or the entry of any decree of
divorce or separate maintenance by a court of competent jurisdiction, wherein such spouse is awarded any Membership Interest or a trust is imposed on such Membership Interest for the benefit of such spouse. To the extent that such Membership
Interest is transferred, or to the extent that such Membership Interest is subject to the imposition of any such trust or lien, a Triggering Event as to the Membership Interest so affected shall be deemed to have occurred. 
 During the period that commences as of the date of a Triggering Event and ends ONE HUNDRED EIGHTY (180) days thereafter, the Affected Member or the
authorized representative of the Affected Member may sell, transfer, assign or otherwise dispose of the Membership Interest of the Affected Member, but only in accordance with the terms and provisions of Section 14.1 and Section 14.2 of
this Operating Agreement. If such sale does not occur within such ONE HUNDRED EIGHTY (180) day period, then as soon as reasonably practicable thereafter the Company shall give written notice to the Affected Member or the authorized
representative of the Affected Member of the rights and options of the Company and the Members who are not Affected Members to purchase the Membership Interest of the Affected Member in accordance with the terms and provisions of this
Section 14.7. 
  

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 Within THIRTY (30) days after the date of such written notice of the Company to the Affected Member
or the authorized representative of the Affected Member, the Company shall have the right and option, but no obligation, to purchase all, and only all, of the Affected Member’s Membership Interest for the purchase price determined under
Section 14.8 of this Operating Agreement and under the terms and provisions of Section 14.9 of this Operating Agreement; provided, however, that such option and right to purchase of the Company shall be NULL and VOID if the sale to the
Company of the Membership Interest of the Affected Member would result in the Company having only ONE (1) Member. Whether or not the Company shall exercise such option and right to purchase shall be determined by the vote or written consent of
the Members holding more than FIFTY PERCENT (50%) of the outstanding Membership Voting Interests, excluding the outstanding Membership Voting Interests held by the Affected Member. 
 Within FIVE (5) days after the Company’s failure or election not to exercise the Company’s option and right to purchase provided by this
Section 14.7 (for any reason, including that such right and option is NULL and VOID under the immediately-preceding paragraph hereof), the Board of Managers shall forward to each of the Members a notice of the Triggering Event and the identity
of the Affected Member together with a statement that the Company has failed or elected not to exercise the Company’s option and right to purchase (such statement of the Company, for the purposes of this Section 14.7, the
“Company’s Statement”), who collectively and individually then shall have the right and option, but no obligation, to purchase all, and only all, of the Affected Member’s Membership Interest for the purchase price determined
under Section 14.8 of this Operating Agreement and under the terms and provisions of Section 14.9 of this Operating Agreement. Any Member desiring to acquire all or a portion of the Membership Interest of the Affected Member shall deliver
to the Board of Managers a written election to purchase such Membership Interest of the Affected Member or a specified portion thereof within THIRTY (30) days after the date of the Company’s Statement (such THIRTY (30) day period, for
the purposes of this Section 14.7, the “Members’ Option Period”). If, in accordance with the immediately-preceding sentence hereof, the Company during the Members’ Option Period receives notice from Members electing to
purchase in the aggregate more than the Membership Interest of the Affected Member, then each purchasing Member shall have priority, up to the amount of such Membership Interest of the Affected Member specified in such purchasing Member’s
notice, to purchase such proportion of such Membership Interest of the Affected Member as such purchasing Member’s Membership Interest bears to the total Membership Interests held by Members electing to purchase. 
 Within FOURTEEN (14) days after the expiration of the Members’ Option Period, the Board of Managers shall notify each purchasing Member as to
what extent, if at all, such purchasing Member’s election was effective. Each such purchasing Member shall satisfy the terms and conditions of the purchase within TWENTY ONE (21) days after receipt of such Board of Managers’
notification or, if precluded from doing so by bankruptcy, divorce or other similar proceedings, then as soon as practicable pursuant to such proceedings. 
 If, in accordance with the foregoing terms and provisions of this Section 14.7, neither the Company nor the Members have elected to exercise their option and right to purchase all of the Membership Interest of
the Affected Member, then (provided that, in accordance with subparagraph (d) of Section 17.1 of this Operating Agreement, such sale, transfer, assignment or other disposition does not cause the Company to dissolve) the Affected Member or
the 

  

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authorized representative of the Affected Member may sell, transfer, assign or otherwise dispose of the Membership Interest of the Affected Member, but only
in accordance with the terms and provisions of Section 14.1 and Section 14.2 of this Operating Agreement. 
 If, in accordance with
the foregoing terms and provisions of this Section 14.7, either the Company or the Members have elected to exercise their option and right to purchase all of the Membership Interest of the Affected Member, then the Affected Member or authorized
representative of the Affected Member shall apply for and obtain any necessary court approval or confirmation of the sale of the Membership Interest of the Affected Member. 
 Section 14.8 Valuation. The date for determining the valuation of a Membership Interest for the purposes of this ARTICLE XIV (except
Section 14.1 hereof) (the “Determination Date”) shall be the last day of the month immediately preceding the month in which the event requiring a determination of the purchase price occurs. The purchase price to be paid for a
Membership Interest subject to this Operating Agreement shall be determined by appraisal and shall be equal to the appraised value of the Company and allocated among the Membership Interests outstanding in accordance with each Member’s and
Interest Holder’s capital account. All appraisals shall be undertaken by TWO (2) appraisers, ONE (1) selected by the selling party, or such party’s estate, successor or legal representative, as the case may be, and the other
selected by the purchasing party, or such party’s estate, successor or legal representative, as the case may be. The selection of such appraisers shall occur no later than THIRTY (30) days after the occurrence of the event requiring
determination of the purchase price under this Operating Agreement. The appraised value of the Company shall be the valuation arrived at by such TWO (2) appraisers within SIXTY (60) days after the appointment of the last appraiser to be
appointed. If the TWO (2) appraisers cannot agree on such appraised value of the Company within such SIXTY (60) days, then (a) if the appraisers’ valuations are within FIVE PERCENT (5%) of each other based on the lower of
such appraisals, the appraised value of the Company shall be the mean of the TWO (2) valuations, or (b) if the difference between the appraisers’ valuations is greater than FIVE PERCENT (5%) based on the lower of such appraisals,
the appraisers shall select a third appraiser who shall calculate the appraised value of the Company independently, and, except as provided in the immediately-following sentence hereof, the appraised value of the Company in each such case shall be
the average of the TWO (2) valuations arrived at by the TWO (2) out of such THREE (3) appraisers whose valuations are closest in amount. If ONE (1) appraiser’s valuation is the mean of the valuations determined by the other
TWO (2) appraisers, then the appraised value of the Company shall be such mean valuation. If the TWO (2) original appraisers cannot agree upon a third appraiser within THIRTY (30) days after the end of the SIXTY (60) day period
referred to above, then the third appraiser shall be appointed by the Chief Judge of the Second Judicial District Court, County of Washoe, in and for the State of Nevada. The selling party, or such party’s estate, successor or legal
representative, as the case may be, shall pay all fees and costs of the appraiser selected by such party. The purchasing party, or such party’s estate, successor or legal representative, as the case may be, shall pay all fees and costs of the
appraiser selected by such party. All fees and costs of any third appraiser selected in accordance with the foregoing shall be paid equally by the selling party and the purchasing party, or such parties’ estates, successors or legal
representatives, as the case may be. For the purposes of an appraisal under this Section 14.8, real estate and improvements shall be valued at fair market value; machinery and equipment shall be valued at replacement cost or fair market value,
whichever is lower; finished inventory shall be valued at cost or fair market value, whichever is lower; goods in process shall be valued at cost, using the cost accounting procedures customarily employed by the Company in preparing its financial
statements; receivables shall be valued at their face amount, less an allowance for uncollectible items that is reasonable in 

  

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view of the past experience of the Company and a recent review of their collectability; all liabilities shall be deducted at their face value; and a reserve
for contingent liabilities shall be established if appropriate. The value of other comparable companies, if known, also shall be considered. 
 Section 14.9 Payment. The consideration for a Membership Interest transferred to the Company or to other Members under Section 14.6 or Section 14.7 of this Operating Agreement shall be paid to the Transferring Member
or such Transferring Member’s representative or successor, as the case may be, as provided in this Operating Agreement. The terms for the payment of the purchase price of such a transferred Membership Interest shall be as follows: 

(a) Down Payment. A down payment in cash of not less that TWENTY PERCENT (20%) of the purchase price shall be paid within
ONE HUNDRED FIFTY (150) days of the Determination Date; and 
 (b) Promissory Note. The balance of the purchase
price shall be paid in accordance with the terms of a promissory note (the “Note”) to be executed by the Company or by the purchasing Members, as the case may be. The Note shall provide for the payment of a minimum of TWENTY PERCENT
(20%) of the balance of the purchase price, plus accrued interest, on the first anniversary date of the Note, and TWENTY PERCENT (20%) of the initial unpaid principal balance, plus accrued interest, on each anniversary date
thereafter to and including the date of payment in full. Interest shall accrue on the declining principal balance of the Note at the rate of EIGHT PERCENT (8%) per annum from the date of the Note. The Note shall be dated as of the date on which
the down payment is required to be made. The Note shall provide that its maker may prepay all or any portion of the unpaid principal balance and accrued interest at any time, without penalty. The Note shall provide that the entire unpaid principal
balance of the Note, and all accrued interest, shall become due and payable immediately upon the occurrence of any of the following events: 
 (i) Adjudication of bankruptcy of the maker of the Note; 
 (ii) Voluntary or involuntary
petition by or on behalf of the maker of the Note for arrangement or reorganization or for the protection of creditors and the debtor, under bankruptcy law; 
 (iii) Upon default in payment or of any of the terms of the Note by the maker; or 
 (iv) If the sale is to the Company, upon the sale of all or substantially all of the assets of the Company. 
 Section 14.10 Governmental and Administrative Approvals. The Company shall apply for and use its best efforts to obtain all governmental and
administrative approvals required in connection with the purchase and sale of Membership Interests under this Operating Agreement. The Members shall cooperate in obtaining such approvals and shall execute all documents that may be required to be
executed by the Members in connection with such approvals. The Transferring Member and/or the Transferee shall pay all costs and filing fees in connection with obtaining such approvals. Notwithstanding any other term or provision of this ARTICLE
XIV, any and every transaction involving the transfer of any interest in the Company sought to be consummated in accordance with the terms and provisions of this ARTICLE XIV shall be NULL AND VOID unless such transaction is approved in advance by
the applicable Gaming Authorities in accordance with the terms and provisions of ARTICLE XV of this Operating Agreement. 
  

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 Section 14.11 “Transferring Member”/Transferring Interest Holder; “Decedent
Individual Member”/Decedent Individual Interest Holder; “Affected Member”/Affected Interest Holder. For all purposes of this ARTICLE XIV, (a) the term “Transferring Member” as it appears in this ARTICLE XIV shall be
interpreted to include any Interest Holder who sells, transfers, assigns or otherwise disposes of all or any portion of such Interest Holder’s Membership Interest to any third person or entity; (b) the term “Decedent Individual
Member” as it appears in this ARTICLE XIV shall be interpreted to include any individual Interest Holder who has died; and (c) the term “Affected Member” as it appears in this ARTICLE XIV shall be interpreted to include any
Interest Holder affected by a Triggering Event. Notwithstanding the foregoing, in no event shall any term or provision of this ARTICLE XIV be interpreted to provide to any Interest Holder any option or right to purchase all or any portion of any
Membership Interest. 
 Section 14.12 Entity Member Transfers. If any Member is a closely-held corporation, limited liability
company or unincorporated association or partnership, then, in any single transaction or series of related transactions, the original issuance, sale, transfer, assignment or other disposition of any stock or interest in such corporation, limited
liability company, association or partnership constituting in the aggregate in excess of FIFTY PERCENT (50%) of all such stock or interests then outstanding shall be deemed an assignment or transfer of such Member’s Membership Interest
within the meaning of this Operating Agreement, except as provided below in this Section 14.12. If any Member is a publicly-traded corporation, limited liability company, association or partnership, meaning for the purposes of this Operating
Agreement that such corporation, limited liability company, association or partnership has effected a bona fide initial public offering of any class of its equity securities that were registered for such purpose with the Securities and Exchange
Commission under the Securities Act on Form S-l (or any successor of such form), then, in any single transaction or series of related transactions, the original issuance, sale, transfer, assignment or other disposition of any stock or interest in
such corporation, limited liability company, association or partnership constituting in the aggregate in excess of EIGHTY PERCENT (80%) of all such stock or interests then outstanding shall be deemed an assignment or transfer of such
Member’s Membership Interest within the meaning of this Operating Agreement, except as provided below in this Section 14.12. Notwithstanding the foregoing, in no event shall any public offering of securities of any class of any Member that
is registered with the Securities and Exchange Commission under the Securities Act and effected in accordance with the terms and provisions of Section 7.2 of this Operating Agreement constitute or be deemed an assignment or transfer of a
Membership Interest within the meaning of this Operating Agreement. 
 Notwithstanding any other term or provision of this
Section 14.12, in no event shall the sale, transfer, assignment or other disposition by any person or entity to any of the persons or entities listed in subparagraphs (a) through (c), inclusive, of this Section 14.12 of any stock or
interest in any corporation, limited liability company, association or partnership that is a Member, whether or not closely-held or publicly-traded, be deemed an assignment or transfer of such Member’s Membership Interest within the meaning of
this Operating Agreement. 
 (a) To any ONE (1) or more entities that directly, or indirectly through one or more
intermediaries, control, or are controlled by, or are under common control with, the current or any future record or beneficial holder of such stock or interest; 
  

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 (b) To any ONE (1) or more of the respective children and/or other lineal
descendants of the current or any future record or beneficial holder of such stock or interest, by inter-vivos transfer, devise, bequest, declaration of trust or any other means; and/or 
 (c) To a revocable living trust for the benefit of the current or any future record or beneficial holder of such stock or interest.

 Notwithstanding any other term or provision of this Operating Agreement, the terms and provisions of this Section 14.12 cannot be
amended or repealed unless such amendment or repeal first has been approved by the affirmative vote or written consent of the Members holding more than SEVENTY-FIVE PERCENT (75%) of the outstanding Membership Voting Interests. 
 Section 14.13 Restrictive Legend. In addition to any other restrictive legend that may be imposed on any certificate evidencing ownership of
any Membership Interest, such certificate shall bear the following legend: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO
RESTRICTIONS ON TRANSFER AS SET FORTH IN THE OPERATING AGREEMENT OF THE COMPANY. 
 ARTICLE XV 
 GAMING CONTROL ACT RESTRICTIONS 
 Section 15.1 Gaming Act Restrictions. Notwithstanding anything to the contrary expressed or implied in this Operating Agreement or the Articles of Organization, the sale, assignment, transfer, pledge or other disposition of any
interest in the Company when it is a Nevada gaming licensee under the Gaming Act is ineffective unless approved in advance by the Commission. If at any time the Commission finds that a member which owns any such interest is unsuitable to hold that
interest, the Commission shall immediately notify the Company of that fact. The Company shall, within ten (10) days from the date that it receives the notice from the Commission, return to the unsuitable Member the amount of his capital account
as reflected on the books of the Company. Beginning on the date when the Commission serves notice of a determination of unsuitability, pursuant to the preceding sentence, upon the Company, it is unlawful for the unsuitable Member: (a) to
receive any share of the distribution of profits or cash or any other property of, or payment upon dissolution of, the Company, other than a return of capital as required above; (b) to exercise directly or through a trustee or nominee, any
voting right conferred by such interest; (c) to participate in the management of the business and affairs of the limited liability company; or (d) to receive any remuneration in any form from the Company, for services rendered or
otherwise. 
 Section 15.2 Unsuitability of Member. Any member that is found unsuitable by the Commission shall return all
evidence of any ownership in the Company to the Company, at which time the Company shall within ten (10) days, after the Company receives notice from the Commission, return to the Member in cash, the amount of his capital account as reflected
on the books of the Company, and the unsuitable Member shall no longer have any direct or indirect interest in the Company. 
  

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 Section 15.3 Restrictive Legend. In addition to any other restrictive legend that may be
imposed on any certificate evidencing ownership of any Membership Interest, such certificate shall bear the following legend: 
 THE SALE,
ASSIGNMENT, TRANSFER, PLEDGE OR OTHER DISPOSITION OF THIS SECURITY IS INEFFECTIVE UNLESS APPROVED IN ADVANCE BY THE NEVADA GAMING COMMISSION. IF AT ANY TIME SUCH COMMISSION FINDS THAT AN OWNER OF THIS SECURITY IS UNSUITABLE TO CONTINUE TO HAVE AN
INVOLVEMENT IN GAMING IN SUCH STATE, SUCH OWNER MUST DISPOSE OF SUCH SECURITY AS PROVIDED BY THE LAWS OF THE STATE OF NEVADA AND THE REGULATIONS OF THE NEVADA GAMING COMMISSION THEREUNDER, SUCH LAWS AND REGULATIONS RESTRICT THE RIGHT UNDER CERTAIN
CIRCUMSTANCES: (A) TO RECEIVE ANY SHARE OF THE DISTRIBUTION OF PROFITS OR CASH OR ANY OTHER PROPERTY OF, OR PAYMENTS UPON DISSOLUTION OF, THE COMPANY, OTHER THAN A RETURN OF CAPITAL; (B) TO EXERCISE DIRECTLY OR THROUGH A TRUSTEE OR NOMINEE
ANY VOTING RIGHT CONFERRED BY SUCH INTEREST; (C) TO PARTICIPATE IN THE MANAGEMENT OF THE BUSINESS AND AFFAIRS OF THE COMPANY; OR (D) TO RECEIVE ANY REMUNERATION IN ANY FORM FROM THE COMPANY FOR SERVICES RENDERED OR OTHERWISE. 

Section 15.5 Acceptance of Gaming Control Act Restrictions. The Members and the Interest Holders hereby acknowledge and agree to accept
their Membership Interests subject to the restrictions contained in this ARTICLE XV for so long as such restrictions are required by law. 
 ARTICLE XVI 
 SECURITIES LAWS MATTERS 
 Section 16.1 Securities Law Representations and Warranties. Each Member hereby represents and warrants to the Company and to all of the other Members all of the following: 
 (a) Such member is acquiring such Member’s Membership Interest for investment and not with a view to the sale or distribution of any
part thereof. 
 (b) Such member has no present intention to sell or otherwise distribute any part of such Member’s
Membership Interest. 
 (c) The Company has advised such Member (i) that such Member’s Membership Interest has not
been registered under the Securities Act, as the offering and sale of such Member’s Membership Interest is to be effected in accordance with an exemption from the registration requirements of the Securities Act and similar exemptions under
applicable state securities law, and (ii) that, in this connection, the Company is relying in part on the representations and warranties of such Member set forth herein. 
  

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 (d) Such Member shall make no disposition of all or any portion of such Member’s
Membership Interest unless and until (i) such Member has notified the Company of the proposed disposition, (ii) such Member has furnished the Company with an opinion of legal counsel to the effect that such disposition will not require
registration of such Member’s Membership Interest under the Securities Act, (iii) such opinion of legal counsel has been concurred with by the Company’s legal counsel, and (iv) the Company has advised such Member of such
concurrence. 
 (e) Such Member has received all such information as such Member deems necessary and appropriate to enable
such Member to evaluate the financial risk inherent in acquiring such Member’s Membership Interest, and such Member acknowledges receipt of satisfactory and complete information covering the business and financial condition of the Company in
response to all inquiries in respect thereof. 
 (f) Such Member has had the opportunity to consult with such Member’s
investment counselors, attorneys, accountants and other advisors regarding the terms and conditions of this Operating Agreement and its tax and legal consequences. 
 (g) Such Member has either or both of the following: 
 (i) a pre-existing business or personal relationship with the Company and/or ONE (1) or more of its Managers; or 
 (ii) sufficient sophistication to make an informed investment decision based on such Member’s personal knowledge of the business and
affairs of the Company, based on such additional information as such Member may have requested and received from the Company and based on the independent inquiries and investigation undertaken by such Member. 
 (h) Such Member understands that such Member’s investment in such Member’s Membership Interest is speculative and risky.

 (i) Such Member understands that such Member has no assurance that the Company will be a financial success or that such
Member’s investment in such Member’s Membership Interest will be recovered. 
 (j) Such Member has the financial
ability to bear the economic risk of such Member’s investment in such Member’s Membership Interest, has adequate means for providing for such Member’s current needs and personal contingencies and has no need for liquidity with respect
to such Member’s Membership Interest. 
 (k) The Company used no general solicitation or general advertising in
connection with the Company’s offer to sell (if any) or the Company’s sale of such Member’s Membership Interest to such Member. 
 (l) Such Member recognizes that such Member’s Membership Interest is unregistered under the Securities Act and must be held indefinitely unless it is subsequently registered under the Securities Act or an
exemption from such registration is available. 
 (m) Except pursuant to the Registration Rights Agreement, such Member
understands that the Company is under no obligation to register such Member’s Membership Interest under the Securities Act or to comply with any exemption from such registration. 
  

 48 

 (n) Such Member understands and agrees that, in addition to any other restrictive legend
that may be imposed on any certificate evidencing ownership of such Member’s Membership Interest, such certificate shall bear the following legend: 
 THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933; THEY HAVE BEEN ACQUIRED BY THE HOLDER FOR INVESTMENT AND MAY NOT BE PLEDGED, HYPOTHECATED, SOLD, TRANSFERRED OR
OTHERWISE DISPOSED OF EXCEPT AS MAY BE AUTHORIZED UNDER THE SECURITIES ACT OF 1933 AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER. 
 (o) Such Member understands that Rule 144 under the Securities Act presently does not apply and may never apply to the Company’s securities because the Company does not now, and may never, file reports required
by the Exchange Act, and has not made, and may never make, publicly available the information required by Rule 15c2-11 of the Exchange Act. Furthermore, such Member understands that if Rule 144 were available, sales of Company securities made in
reliance thereon could be made only in certain limited amounts, after certain holding periods, and only when specified current information about the Company had been made available to the public, all in accordance with the terms and in satisfaction
of the conditions of Rule 144. Such Member understands that, in the case of Company securities to which Rule 144 is not applicable, compliance with some other exemption under the Securities Act will be required in order for any re-sale or other
transfer of such Company securities to be effected legally. 
 ARTICLE XVII 
 DISSOLUTION AND LIQUIDATION 
 Section 17.1 Events Requiring
Dissolution, The Company shall be dissolved upon the occurrence of any of the following events: 
 (a) The sale or
disposition of all or substantially all of the property and assets owned by the Company; 
 (b) The written consent of the
Members holding more than SEVENTY FIVE PERCENT (75%) of the outstanding Membership Voting Interests; or 
 (c) The death,
insanity, retirement, resignation, expulsion, bankruptcy or dissolution of a Member, or the occurrence of any other event that terminates a Member’s Membership Interest, unless at least TWO (2) Members remain upon and after such event and
within NINETY (90) days after such event not less than a “majority in interest” of all of the remaining Members (as defined in Nevada Revised Statutes Section 86.065) agree in writing to continue the Company. 
 Section 17.2 Liquidation. Upon the occurrence of any event requiring dissolution as set forth in Section 17.1 of this Operating
Agreement, if the Company is not continued as permitted under subparagraph (d) of Section 17.1 of this Operating Agreement, then the Board of Managers in accordance with Nevada Revised Statutes Section 86.491 immediately shall
commence settling and closing the Company’s business, collecting and discharging the Company’s obligations, disposing of and conveying the Company’s property and distributing the Company’s assets, but not for the purpose of
continuing the business for which the Company was established. 
  

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 Section 17.3 Distribution of Assets. During the liquidation of the Company, the Members and
the Interest Holders shall continue to share Net Profits and Net Losses in the same proportions as before dissolution. In settling accounts after dissolution, the proceeds from the liquidation of the Company’s assets (after payment of all
expenses of liquidation) shall be applied as follows: 
 (a) To creditors of the Company, including Members and Interest
Holders who are creditors of the Company (other than debts owed to Members and/or Interest Holders for their capital contributions), in the order of priority as provided by law; and then 
 (b) To the Members and the Interest Holders in accordance with their positive capital account balances, as determined after taking into
account all capital account adjustments for the taxable year of the Company during which the liquidation of the Company occurs (other than such capital account adjustments made by reason of this clause); 
 and such distributions shall be made by the end of the taxable year of the Company during which the liquidation of the Company occurs (or, if later, within NINETY
(90) days after the date of such liquidation). 
 Section 17.4 Gains or Losses. During liquidation, any gain or loss on the
disposition of the Company’s property shall be credited or charged to the Members and the Interest Holders in accordance with the terms and provisions of ARTICLE X of this Operating Agreement. Any property distributed in kind in liquidation
shall be valued and treated as if the property were sold for its fair market value and the cash proceeds distributed. The difference between the value of the property distributed in kind and its book value to the Company shall be treated as a gain
or loss on the sale of the property to be allocated between the Members and the Interest Holders in accordance with ARTICLE X of this Operating Agreement. 
 Section 17.5 Right to Defer Sale of Certain Assets. Notwithstanding any other term or provision of this ARTICLE XVII, if upon dissolution of the Company the Board of Managers determines that an immediate
sale of all or a portion of the assets of the Company would cause undue loss to the Members and the Interest Holders, then the Board of Managers, in order to avoid such loss, after giving notice of intending to do so to all of the Members and the
Interest Holders, to the extent not then prohibited by Chapter 86 or any other applicable law, either may defer the sale of and withhold from distribution for a reasonable time such assets of the Company, unless a sale of such assets is necessary to
satisfy the Company’s debts and obligations, or may distribute such assets of the Company to the Members and the Interest Holders in kind. 
 Section 17.6 Liquidation Distributions in Kind. If any part of the assets of the Company are to be distributed in kind, then such assets shall be distributed on the basis of their fair market value, and any Member or Interest
Holder entitled to any interest in such assets shall receive such interest as a tenant-in-common with all other Members and Interest Holders so entitled in proportion to their Membership Interests. The fair market value of such assets shall be
determined by an independent appraiser that shall be selected by the Board of Managers. The book value of such assets shall be credited or charged to the Members and the Interest Holders in proportion to their Membership Interests. 
  

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 Section 17.7 Limitation on Recourse at Liquidation. The Members and the Interest Holders
shall look solely to the assets of the Company for payment of debts or liabilities owed by the Company to the Members or Interest Holders and for the return of their capital contributions. If the assets of the Company remaining after the payment or
discharge of the debts and liabilities of the Company to persons other than Members and Interest Holders is insufficient to pay the debts or liabilities owed by the Company to the Members and the Interest Holders and to return their capital
contributions, then the Members and the Interest Holders shall have no recourse therefor against the Company or any other Member or Interest Holder except to the extent that such other Member or Interest Holder may have outstanding debts or
obligations owing to the Company. 
 Notwithstanding any other provision of this Agreement to the contrary, upon liquidation of a
Member’s Interest in the Company (whether or not in connection with a liquidation of the Company), no Member shall have any liability to restore any deficit in its Capital Account. In addition, no allocation to any Member of any loss, whether
attributable to depreciation or otherwise, shall create any asset of or obligation to the Company, even if such allocation reduces the Capital Account of any Member or creates or increases a deficit in such Capital Account; it is also the intent of
the Members that no Member shall be obligated to pay any such amount to or for the account of the Company or any creditor of the Company. No creditor of the Company is intended as a third-party beneficiary of this Agreement nor shall any such
creditor have any rights hereunder. 
 Section 17.8 Articles of Dissolution. When all debts, liabilities and obligations of the
Company have been paid and discharged or adequate provision has been made therefor, and all of the remaining property and assets have been distributed to the Members and/or the Interest Holders, articles of dissolution shall be prepared, signed,
acknowledged and filed with the Nevada Secretary of State in accordance with Nevada Revised Statutes Sections 86.531 and 86.541. 
 ARTICLE
XVIII 
 INDEMNIFICATION 
 Section 18.1 Indemnification of Member. Employee or Agent: Proceeding Other Than by the Company. Subject to the terms and provisions of Section 18.4 of this Operating Agreement, the Company may indemnify any person who was
or is a party or is threatened to be made a party to any threatened, pending or completed action, suit or proceeding, whether civil, criminal, administrative or investigative, except an action by or in the right of the Company, by reason of the fact
that such person is or was a Member, employee or agent of the Company, or is or was serving at the request of the Company as a manager, member, director, officer, employee or agent of another limited liability company, corporation, partnership,
joint venture, trust or other enterprise, against expenses, including attorneys’ fees, judgments, fines and amounts paid in settlement, actually and reasonably incurred by such person in connection with the action, suit or proceeding, if such
person acted in good faith and in a manner that such person reasonably believed to be in or not opposed to the best interests of the Company, and, with respect to a criminal action or proceeding, such person had no reasonable cause to believe that
such person’s conduct was unlawful. The termination of any action, suit or proceeding by judgment, order, settlement or conviction, or upon a plea of nolo contendere or its equivalent, does not, of itself, create a presumption that such person
did not 

  

 51 

 
act in good faith and in a manner that such person reasonably believed to be in or not opposed to the best interests of the Company, and that, with respect
to any criminal action or proceeding, such person had reasonable cause to believe that such person’s conduct was unlawful. 
 Section 18.2 Indemnification of Member, Employee or Agent: Proceeding by the Company. Subject to the last sentence of this Section 18.2 and to the terms and provisions of Section 18.4 of this Operating Agreement, the
Company may indemnify any person who was or is a party or is threatened to be made a party to any threatened, pending or completed action or suit by or in the right of the Company to procure a judgment in its favor by reason of the fact that such
person is or was a Member, employee or agent of the Company, or is or was serving at the request of the Company as a member, manager, director, officer, employee or agent of another limited liability company, corporation, partnership, joint venture,
trust or other enterprise, against expenses, including amounts paid in settlement and attorneys’ fees actually and reasonably incurred by such person in connection with the defense or settlement of the action or suit, if such person acted in
good faith and in a manner that such person reasonably believed to be in or not opposed to the best interests of the Company. Indemnification shall not be made for any claim, issue or matter as to which such person has been adjudged by a court of
competent jurisdiction, after exhaustion of all appeals therefrom, to be liable to the Company, or for amounts paid in settlement to the Company, unless and only to the extent that the court in which the action or suit was brought or other court of
competent jurisdiction determines upon application that in view of all of the circumstances of the case such person is fairly and reasonably entitled to indemnity for such expenses as the court deems proper. 
 Section 18.3 Advancement of Expenses. The expenses (including attorney’s fees) of a Member or Manager or officer of the Company incurred
in defending a civil or criminal action, suit or proceeding shall be paid by the Company as they are incurred and in advance of the final disposition of such action, suit or proceeding, upon the Company’s receipt from such Member or Manager or
officer of the Company of an undertaking by or on behalf of such Member or Manager or officer of the Company to repay the entire amount of monies so advanced by the Company if it ultimately is determined by a final, non-appealable order of a court
of competent jurisdiction that such Member or Manager or officer of the Company is not entitled to be indemnified by the Company (which determination, as to any Manager, shall have been made under the terms and provisions of subparagraph (d) of
Section 5.7 of this Operating Agreement; and which determination, as to any officer of the Company, shall have been made under the terms and provisions of subparagraph (b) of Section 6.6 of this Operating Agreement). The terms and
provisions of this Section 18.3 do not affect any right to advancement of expenses to which personnel of the Company other than Members or Managers or officers of the Company may be entitled under any contract or otherwise by law. 

Section 18.4 Authorization for Indemnity. 
 (a) Successful Defense. To the extent that any person referred to in Section 18.1 or Section 18.2 of this Operating Agreement has been successful on the merits or otherwise in defense of any action,
suit or proceeding described in Section 18.1 or Section 18.2 of this Operating Agreement, or in defense of any claim, issue or matter therein, the Company shall indemnify such person against expenses, including attorneys’ fees,
actually and reasonably incurred in connection with such defense. 
  

 52 

 (b) Specific Case Authorization. Subject to the terms and provisions of
subparagraph (a) of this Section 18.4, any indemnification under Section 18.1 or Section 18.2 of this Operating Agreement, unless ordered by a court of competent jurisdiction or advanced in accordance with Section 18.3 of
this Operating Agreement, may be made by the Company only as authorized in the specific case upon a determination that indemnification is proper in the circumstances. Except as prohibited by the last sentence of Section 18.2 of this Operating
Agreement, the Members hereby agree that in each specific case the Members shall deem indemnification of a current or former Member to be proper in the circumstances and shall authorize unanimously the indemnification of every current or former
Member except in any case in which liability of such current or former Member is determined by Members holding more than FIFTY PERCENT (50%) of the outstanding Membership Voting Interests that are not owned by parties to the act, suit or
proceeding at issue to have resulted from or have been caused by acts or omissions of such Member that involved intentional misconduct, fraud or a knowing violation of law. In every case, the determination that indemnification is proper in the
circumstances may be made under any of the following subparagraphs (i) through (iv): 
 (i) By the vote or written
consent of a majority of the authorized number of Managers; provided, however, that the Managers shall have no authority to, and shall not, determine that indemnification is proper for any person in any case in which liability of such person is
determined by a majority of the authorized number of Managers to have resulted from or have been caused by acts or omissions of such person that involved intentional misconduct, fraud or a knowing violation of law; or 
 (ii) By the vote or written consent of Members holding more than FIFTY PERCENT (50%) of the outstanding Membership Voting Interests
that are not owned by parties to the act, suit or proceeding; provided, however, that the Members shall have no authority to, and shall not, determine that indemnification is proper for any person in any case in which liability of such person is
determined by Members owning more than FIFTY PERCENT (50%) of the Membership Voting Interests that are not owned by parties to the act, suit or proceeding at issue to have resulted from or have been caused by acts or omissions of such person
that involved intentional misconduct, fraud or a knowing violation of law; or 
 (iii) If Members holding more than FIFTY
PERCENT (50%) of the outstanding Membership Voting Interests that are not owned by parties to the act, suit or proceeding so order, by independent legal counsel in a written opinion; provided, however, that such independent legal counsel shall
have no authority to, and shall not, determine that indemnification is proper for any person in any case in which liability of such person is determined by such independent legal counsel to have resulted from or have been caused by acts or omissions
of such person that involved intentional misconduct, fraud or a knowing violation of law; or 
 (iv) If Members who are not
parties to the act, suit or proceeding cannot be obtained, by independent legal counsel in a written opinion; provided, however, that such independent legal counsel shall have no authority to, and shall not, determine that indemnification is proper
for any person in any case 

  

 53 

 
in which liability of such person is determined by such independent legal counsel to have resulted from or have been caused by acts or omissions of such
person that involved intentional misconduct, fraud or a knowing violation of law. 
 Section 18.5 Indemnification of Managers.
The terms and provisions of Section 5.7 of this Operating Agreement shall govern the indemnification of Managers under this Operating Agreement. Notwithstanding any other term or provision of this Operating Agreement, the terms and provisions
of this Section 18.5 cannot and shall not be amended or repealed under any circumstance, except as may be necessary to ensure the continued compliance of this Operating Agreement with Chapter 86. 
 Section 18.6 Indemnification of Company Officers. Notwithstanding any other term or provision of this ARTICLE XVIII, the terms and provisions
of Section 6.6 of this Operating Agreement shall govern the indemnification of officers of the Company under this Operating Agreement. Notwithstanding any other term or provision of this Operating Agreement, the terms and provisions of this
Section 18.6 cannot and shall not be amended or repealed under any circumstance, except as may be necessary to ensure the continued compliance of this Operating Agreement with Chapter 86. 
 Section 18.7 Limitation on Indemnification Obligation. The satisfaction of the indemnification obligations of the Company under this ARTICLE
XVIII shall be from and limited to the assets of the Company, and no Member or Interest Holder shall have any personal liability for the satisfaction of any such indemnification obligation. 
 Section 18.8 Company Successor, Trustee or Receiver Liability. The obligations of the Company under this ARTICLE XVIII shall be binding on
any successor, trustee or receiver of the Company. 
 ARTICLE XIX 
 COMPANY BOOKS AND RECORDS 
 The Board of Managers shall cause the Company to
keep the following: 
 (a) Complete books and records of account in which shall be entered fully and accurately all
transactions and other matters relating to the Company. The Company’s books and records shall be kept on an accrual basis, in accordance with generally accepted accounting principles, except as the Board of Managers otherwise may determine to
be permitted under the Internal Revenue Code; 
 (b) A current list of the full name and last known business or residence
address of each Member set forth in alphabetical order listing the Member’s capital contribution to the Company and Membership Interest owned by such Member; 
 (c) A copy of the Articles of Organization and all amendments thereto and all filings effected by the Company in Nevada and other states;

 (d) Copies of the Company’s federal, state and local income tax returns and reports, if any, for the SIX (6) most
recent years (if applicable); 
 (e) Copies of any then-effective written operating agreement and of financial statements of
the Company for the THREE (3) most recent years; and 
  

 54 

 (f) Unless contained in the Articles of Organization, a writing setting forth:

 (i) The amount of cash and a description and statement of the agreed value of the other property or services contributed to
capital by each Member and that each Member has agreed to contribute to the Company; 
 (ii) The items as to which or events
upon the occurrence of which additional capital contributions agreed to be made by each Member are to be made; 
 (iii) Any
right of a Member to receive, or of a Manager to make, distributions to a Member, which include a return of all or any portion of a Member’s capital contribution; and 
 (iv) Any event upon the occurrence of which the Company is to be dissolved and its affairs wound up. 
 All such books and records shall be maintained at the principal executive office of the Company and, as to those items designated in subparagraphs
(b) through (f) of this ARTICLE XIX, inclusive, also at the registered office of the Company. In each location, such books and records shall be available for inspection and copying by, and at the expense of, the Members or their
duly-authorized representatives, during reasonable business hours. 
 ARTICLE XX 
 REPORTS 
 The Company shall deliver the
following reports to each Member at the times specified below: 
 (a) as soon as available and in any event within 45 days
after the end of each of the first three quarters of each fiscal year of the Company, consolidated balance sheets of the Company and its subsidiaries as of the end of such period, and consolidated statements of income and cash flows of the Company
and its subsidiaries for the period then ended prepared in conformity with generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, and subject to the absence of footnotes and to
year-end adjustments; and 
 (b) as soon as available and in any event within 120 days after the end of each fiscal year of
the Company, a consolidated balance sheet of the Company and its subsidiaries as of the end of such year, and consolidated statements of income and cash flows of the Company and its subsidiaries for the year then ended prepared in conformity with
generally accepted accounting principles in the United States applied on a consistent basis, except as otherwise noted therein, together with an auditor’s report thereon of a firm of established national reputation. 
  

 55 

 ARTICLE XXI 
 TAX MATTERS PARTNER 
 21.1 Designation. The Members hereby unanimously designate Recreational
Enterprises, Inc., a Nevada corporation, that as of the date of this Operating Agreement is both a Member and a Manager, as the “Tax Matters Partner” of the Company as defined in Section 6231 of the Internal Revenue Code. Any future
alternative Tax Matters Partner that may be approved by the Members in accordance with the terms and provisions of subparagraph (a) of Section 5.10 of this Operating Agreement shall be both a Member and a Manager of the Company.

 21.2 Powers and Duties. The Tax Matters Partner shall have such powers and perform such duties as provided in Sections 6221 through
6233 of the Internal Revenue Code with respect to a “tax matters partner” as such term is defined in Section 6231(a)(7) of the Internal Revenue Code. 
 ARTICLE XXII 
 PREVENTION OF TAXATION OF COMPANY AS A CORPORATION BY REASON OF BEING 

TREATED AS A PUBLICLY-TRADED PARTNERSHIP 
 Section 22.1 Number of Members and Interest Holders. Without the prior affirmative vote or written consent of the Members holding more than FIFTY PERCENT (50 %) of the outstanding Membership Voting Interests, the Company
shall not at any time have more than ONE HUNDRED (100) Members and/or Interest Holders (including as Members and Interest Holders every person indirectly owning a Membership Interest through a partnership, limited liability company, S
corporation or grantor trust (such an entity, a “Flow-Through Entity”) but only if substantially all of the value of such person’s interest in the Flow-Through Entity is attributable to the Flow-Through Entity’s interest (direct
or indirect) in the Company). 
 Section 22.2 Compliance With Safe Harbor. The Board of Managers and the Chief Executive
Officer, President and Presiding Manager shall monitor the transfers of Membership Interests to determine (a) whether such Membership Interests are being traded on an “established securities market” or a “secondary market (or
the substantial equivalent thereof)” within the meaning of Section 7704 of the Internal Revenue Code and (b) whether additional transfers of Membership Interests would result in the Company being unable to qualify for at least ONE
(1) of the “safe harbors” set forth in Regulations Section 1.7704-1 (or such other guidance subsequently published by the Internal Revenue Service setting forth safe harbors under which Membership Interests will not be treated as
“readily tradable on a secondary market (or the substantial equivalent thereof)” within the meaning of Section 7704 of the Internal Revenue Code) (the “Safe Harbors”). The Board of Managers and the Chief Executive
Officer, President and Presiding Manager shall take all steps reasonably necessary or appropriate to prevent any trading of Membership Interests or any recognition by the Company of transfers of Membership Interests made on such markets and,
except as otherwise provided in this Operating Agreement, to ensure that the conditions of at least ONE (1) of the Safe Harbors is satisfied. 
 Section 22.3 Prohibited “Market” Transfers. Each Member and Interest Holder hereby covenants and agrees with the Company for the benefit of the Company and of all other Members and Interest Holders (a) that such
Member or Interest Holder currently is not making a market in Membership Interests; (b) that such Member or Interest Holder shall not transfer any Membership Interest upon an “established securities market” or a “secondary market
(or the 

  

 56 

 
substantial equivalent thereof)” within the meaning of Section 7704 of the Internal Revenue Code and all regulations, proposed regulations, revenue
rulings or other official pronouncements of the Internal Revenue Service or Treasury Department that may be promulgated or published; and (c) that, in the event that such regulations, revenue rulings or other pronouncements treat arrangements
that facilitate the selling of a Membership Interest that commonly are referred to as “Matching Services” as being a “secondary market (or the substantial equivalent thereof),” such Member or Interest Holder shall not transfer
any Membership Interest through a Matching Service that is not approved in advance by the Board of Managers. 
 ARTICLE XXIII

 MISCELLANEOUS 
 Section 23.1 Agreement to Perform Necessary Acts. Each party hereto agrees to perform all further acts and execute and deliver all documents that reasonably may be necessary to carry out the terms and provisions of this
Operating Agreement. 
 Section 23.2 Amendments. Except as otherwise expressly provided in this Operating Agreement, the terms
and provisions of this Operating Agreement may not be waived, altered, amended or repealed, in whole or in part, except with the written consent of the Members holding more than SIXTY-FIVE PERCENT (65%) of the outstanding Membership Voting
Interests, provided, however, that in the event such waiver, alteration, amendment or repeal is specific to any right of NGA specified herein, then such waiver, alteration, amendment or repeal shall require the written consent of NGA. 
 Section 23.3 Notices. All notices or other communications required or permitted to be given under this Operating Agreement shall be in
writing and shall be (a) delivered personally, (b) sent via Federal Express (or via another comparable overnight delivery service), (c) sent via facsimile machine or (d) mailed, certified or registered mail, return receipt
requested, to the parties hereto at the addresses set forth in relation to the signature lines of this Operating Agreement. Personally-delivered notices shall be deemed given upon actual personal delivery to the intended recipient. Facsimile notices
shall be deemed given upon completion of transmission of the receiving facsimile machine and the return to the transmitting facsimile machine of an acknowledgement of the receipt thereof. Notices sent via Federal Express (or via another comparable
overnight delivery service) shall be deemed given on the business day immediately following the day of dispatch. Mailed notices shall be deemed given upon the earlier of THREE (3) business days after deposit into the United States mail,
registered or certified, with postage fully-prepaid, or the date of actual receipt as evidenced by the return receipt. 
 Section 23.4
Binding Effect. Subject to the terms and provisions of this Operating Agreement, this Operating Agreement shall be binding on and inure to the benefit of the parties hereto and their respective successors and assigns. The parties hereto agree
for themselves and for their successors and assigns, and their successors in interest, no matter how such succession in interest is acquired, to execute any instrument that may be necessary or proper to carry out all of the purposes and intentions
of this Operating Agreement. The Membership Interest of any successor to any party hereto that is not also a party hereto shall be treated hereunder as if it has continued and is continuing to be held by such party hereto for the purposes of
determining the priorities of the rights of the parties hereto to purchase such Membership Interest under the terms of this Operating Agreement. 
  

 57 

 Section 23.5 Severability. If any sentence, paragraph, clause or combination of the same in
this Operating Agreement is held by a court of competent jurisdiction to be unenforceable in any jurisdiction, then such sentence, paragraph, clause or combination shall be unenforceable in the jurisdiction where it is so held, and the remainder of
this Operating Agreement shall remain binding on the parties hereto in such jurisdiction as if such unenforceable provision had not been contained herein. The enforceability of such sentence, paragraph, clause or combination of the same in this
Operating Agreement otherwise shall be unaffected and shall remain enforceable in all other jurisdictions. 
 Section 23.6 Governing
Law. The validity, construction, interpretation and enforceability of this Operating Agreement shall be determined and governed by the laws of the State of Nevada. Notwithstanding the foregoing, if any law or set of laws in the State of Nevada
requires or otherwise dictates that the laws of another state or jurisdiction must be applied in any proceeding involving this Operating Agreement, then such Nevada law or set of laws shall be superseded by this Section 23.6, and the remaining
laws of the State of Nevada nonetheless shall be applied in such proceeding. 
 Section 23.7 Choice of Forum. Any judicial
proceeding brought by any party hereto as a result of a dispute or controversy arising out of or related to this Operating Agreement shall be commenced in courts located within Washoe County, Nevada. All parties hereto agree to submit to the
jurisdiction of the federal and state courts located within such county in the event of such a dispute or controversy. 
 Section 23.8
Headings. The headings and captions appearing at the beginning of each ARTICLE and Section of this Operating Agreement are included herein for the convenience of reference only, do not constitute a part of this Operating Agreement and shall
not be deemed to limit, characterize or in any way affect any term or provision of this Operating Agreement. This Operating Agreement shall be enforced and construed as if no headings or captions appeared herein. 
 Section 23.9 Waiver. No waiver of any breach or default of this Operating Agreement by any party hereto shall be considered to be a waiver of
any other breach or default of this Operating Agreement. 
 Section 23.10 Attorneys’ Fees. If a dispute arises with respect
to this Operating Agreement, the party prevailing in such dispute shall be entitled to recover all expenses, including, without limitation, reasonable attorneys’ fees and expenses, incurred in ascertaining such party’s rights and in
preparing to enforce and in enforcing such party’s rights under this Operating Agreement, whether or not it was necessary for such party to institute suit. 
 Section 23.11 Dispute Resolution. The patties hereto hereby agree that any controversy, dispute or claim arising out of or relating to this Operating Agreement or any breach of this Operating Agreement
shall be resolved in accordance with the terms and provisions of this Section 23.11. 
 (a) Agreement to
Negotiate. Before submitting any controversy, dispute or claim arising out of or relating to this Operating Agreement or any breach of this Operating Agreement to arbitration, the following procedures shall be followed: 
 (i) The party desiring to submit any such controversy, dispute or claim to arbitration (“Claimant”) first shall give written
notice thereof to the other party (“Recipient”) setting forth in detail the pertinent facts and circumstances relating to such controversy, dispute or claim; 
  

 58 

 (ii) Recipient shall have a period of FIFTEEN (15) days in which to consider the
controversy, dispute or claim that is the subject of the notice and to furnish in writing to Claimant a written statement of Recipient’s position with respect thereto; 
 (iii) Within SEVEN (7) days of Claimant’s receipt of Recipient’s written statement, Claimant and Recipient shall meet with
a mediator, whose identity shall be mutually agreed upon by Claimant and Recipient, in an effort to resolve amicably any difference that may exist between the respective positions of Claimant and Recipient, and, if such resolution is not achieved,
either or both of Claimant and Recipient shall have the right to submit the matter to arbitration. 
 (b) Procedure for
Arbitration. Any controversy, dispute or claim arising out of or relating to this Operating Agreement or any breach of this Operating Agreement, including any dispute concerning the termination of this Operating Agreement, that has not been
resolved in accordance with subparagraph (a) of this Section 23.11 shall be settled by arbitration in Washoe County, Nevada in accordance with the commercial arbitration rules of the American Arbitration Association then existing. In
arbitration, this Operating Agreement (including this provision providing for arbitration in the event of any controversy, dispute or claim arising out of or relating to this Operating Agreement or any breach of this Operating Agreement that has not
been resolved in accordance with subparagraph (a) of this Section 23.11) shall be specifically enforceable. Judgment upon any award rendered by an arbitrator may be entered in any court having jurisdiction. The prevailing party to an
arbitration proceeding commenced hereunder shall be entitled as a part of the arbitration award to the costs and expenses (including reasonable attorneys’ fees) of investigating, preparing and pursuing an arbitration claim as such costs and
expenses are awarded by the arbitrator. 
 Section 23.12 Independence. Notwithstanding the existence of the Company and this
Operating Agreement, each Member may severally engage in whatever activities such Member chooses without having or incurring any obligation to offer any interest in such activity to any party to this Operating Agreement and no Member need disclose
to any other Member or the Company any other business venture or opportunity in which it or its Affiliates may have an interest or business opportunity presented to it, even if such opportunity is of a character similar to the business of the
Company. 
 Section 23.13 Confidential Information. Without the affirmative vote or written consent of the Members holding
SEVENTY-FIVE PERCENT (75%) of the outstanding Membership Voting Interests, and except as otherwise required by law, including, without limitation, federal securities law, no Member, either during or after the termination of such Member’s
Membership Interest, shall divulge to others any information not already known to the public pertinent to the services, customers, financial condition or operations of the Company, the businesses of the Company including without limitation the
Eldorado Hotel and Casino, the Silver Legacy Resort, the Eldorado Shreveport Hotel and Casino, and a hotel and casino to be established and operated in Evansville, Indiana. Notwithstanding any other term or provision of this Operating Agreement, the
terms and provisions of this Section 23.13 cannot be amended or repealed unless such amendment or repeal first has been approved by the affirmative vote or written consent of the Members holding SEVENTY-FIVE PERCENT (75%) of the
outstanding Membership Voting Interests. 
  

 59 

 Section 23.14 Counterparts. This Operating Agreement may be executed in counterparts, each of
which shall be deemed to be an original, but all of which, when taken together, shall constitute one agreement. 
 Section 23.15
Entire Agreement. This Operating Agreement contains the entire agreement between the parties hereto relating to the subject matter of this Operating Agreement, and no written or oral prior representations, agreements or warranties of any
party hereto shall be of any force or effect unless embodied herein. 
 IN WITNESS WHEREOF, the parties hereto have executed this Operating
Agreement effective the date first written above. 
 The “Members” 
  

									
	 RECREATIONAL ENTERPRISES, INC.,
 a Nevada
corporation
	 		 	
					
	By:	 	/s/ Donald L. Carano	 		 		 	
		 	 Donald L. Carano,
 President
	 		 	 345 North Virginia Street
 Reno, NV 89501

			
	 HOTEL-CASINO MANAGEMENT, INC.,
 a Nevada
corporation
	 		 	
					
	By:	 	/s/ Raymond J. Poncia, Jr.	 		 		 	
		 	 Raymond J. Poncia, Jr.,
 President
	 		 	 345 North Virginia Street
 Reno, NV 89501

			
	 HOTEL CASINO REALTY INVESTMENTS, INC.,
 a
Nevada corporation
	 		 	
					
	By:	 	/s/ Raymond J. Poncia, Jr.	 		 		 	
		 	 Raymond J. Poncia, Jr.,
 President
	 		 	 345 North Virginia Street
 Reno, NV 89501

			
	 NGA ACQUISITIONCO, LLC
 a Nevada limited
liability company
	 		 	
					
	By:	 	/s/ Thomas R. Reeg	 		 		 	
		 	 Thomas R. Reeg
 Manager
	 		 	 21 Waterway Avenue, Suite 150
 The Woodlands,
TX 77380

  

 60 

									
	GARY L. CARANO QUALIFIED S CORPORATION TRUST	 		 	
				
	By:	 	/s/ John Frankovich	 		 	c/o John Frankovich, Trustee
		 		 		 	 100 W. Liberty St., 10th Floor
 Reno, NV
89501

			
	GLENN T. CARANO QUALIFIED S CORPORATION TRUST	 		 	
				
	By:	 	/s/ John Frankovich	 		 	c/o John Frankovich, Trustee
		 		 		 	 100 W. Liberty St., 10th Floor
 Reno, NV
89501

			
	GENE R. CARANO QUALIFIED S CORPORATION TRUST	 		 	
				
	By:	 	/s/ John Frankovich	 		 	c/o John Frankovich, Trustee
		 		 		 	 100 W. Liberty St., 10th Floor
 Reno, NV
89501

			
	GREGG R. CARANO QUALIFIED S CORPORATION TRUST	 		 	
				
	By:	 	/s/ John Frankovich	 		 	c/o John Frankovich, Trustee
		 		 		 	 100 W. Liberty St., 10th Floor
 Reno, NV
89501

			
	CINDY L. CARANO QUALIFIED S CORPORATION TRUST	 		 	
				
	By:	 	/s/ John Frankovich	 		 	c/o John Frankovich, Trustee
		 		 		 	 100 W. Liberty St., 10th Floor
 Reno, NV
89501

			
	/s/ Ludwig J. Corrao	 		 	
	 LUDWIG J. CORRAO
 A married
man
	 		 	 2462 Lakeridge Shores East
 Reno, NV 89509

			
	/s/ Patrick A. Corrao	 		 	
	Spouse/PATRICIA A. CORRAO	 		 	 2462 Lakeridge Shores East
 Reno, NV 89509

 I, the above-consenting spouse, by signing above, acknowledge that I have read the foregoing
Operating Agreement, that I know all of the Operating Agreement’s contents and that I am aware that by the Operating Agreement’s provisions my spouse is obligated to sell all of my spouse’s Membership Interest to the Company and/or to
the other members, upon the occurrence of certain events. I hereby consent to such sale, approve of all of the terms and provisions of the Operating Agreement and agree (i) that all of my spouse’s Membership Interest (whether now held or
hereafter acquired) and all of my interests in such Membership Interest, if any, are subject to the terms and provisions of the Operating Agreement or such other agreement as hereafter may be entered into by and among the Members and (ii) that
I will take no action at any time to hinder the operation of the Operating Agreement or such other agreement as hereafter may be entered into by and among the members on any part of my spouse’s Membership Interest or my interest, if any, in any
of my spouse’s Membership Interest. 
  

 61 

 SCHEDULE A 
 To 
 OPERATING AGREEMENT 
 Of 
 ELDORADO HOLDCO, LLC 
 MEMBERSHIP INTERESTS 
 As of April 1, 2009 
  

				
	 Recreational Enterprises, Inc.
	  	47.0415	% 
	 Hotel-Casino Management, Inc.
	  	24.8037	% 
	 Hotel Casino Realty Investments, Inc.
	  	5.1318	% 
	 Ludwig J. Corrao
	  	4.2765	% 
	 NGA AcquisitionCo, LLC
	  	17.0359	% 
	 Gary L. Carano Qualified S Trust
	  	.34212	% 
	 Glenn T. Carano Qualified S Trust
	  	.34212	% 
	 Gene R. Carano Qualified S Trust
	  	.34212	% 
	 Gregg R. Carano Qualified S Trust
	  	.34212	% 
	 Cindy L. Carano Qualified S Trust
	  	.34212	% 
		  	 	 
		  	100	% 

 :236468\7 
  

 62

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