Document:

exv10w1

EXHIBIT 10.1

     THIS AGREEMENT, dated as of February 26, 2010 (this “Agreement”), is by and among
MARINA DISTRICT DEVELOPMENT HOLDING CO., LLC (the “Company”), BOYD ATLANTIC CITY, INC., a
New Jersey corporation (“Boyd Sub”), BOYD GAMING CORPORATION, a Nevada corporation
(“Boyd”), MAC, CORP., a New Jersey corporation (“MR Sub”), and MGM MIRAGE, a
Delaware corporation.

     Reference is made to (a) the Operating Agreement of the Company (the “Operating
Agreement”), adopted pursuant to the Contribution and Adoption Agreement, dated as of December
13, 2000, among the Company, Boyd Sub and MR Sub (the Operating Agreement, taken together with the
amendments thereto pursuant to this Agreement, is sometimes referred to in this Agreement as the
“Amended Operating Agreement”), and (b) the proposed Stipulation of Settlement (as
hereinafter defined). Capitalized terms used and not otherwise defined herein shall have the
meanings respectively ascribed thereto in the Operating Agreement.

     In consideration of the premises and the covenants and agreements set forth herein,
and for other good and valuable consideration the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

     1. Boyd Sub hereby (a) approves the Transfer by MR Sub of its entire Interest (the
“Subject Interest”) to the Trust (as hereinafter defined) and (b) agrees that the
requirements of Section 11.4 of the Operating Agreement shall not apply to such Transfer. Upon
such Transfer, the Trust shall, without necessity of any approval, consent or acknowledgment by
Boyd Sub, (i) be admitted as a Member of the Company in the place of MR Sub, (ii) succeed to the
Capital Account of MR Sub and (iii) have all rights of a Member under the Amended Operating
Agreement and all rights under the Amended Operating Agreement incident to the ownership of the
Subject Interest, and the Trustee (as hereinafter defined) shall have the power to exercise all
such rights. Boyd Sub will remain the Managing Member following the Transfer of the Subject
Interest to the Trust, subject to the provisions of the Amended Operating Agreement (including
Section 9.3 thereof).

     2. Boyd Sub acknowledges that the purpose of the Trust is to provide for the sale of the
Subject Interest (and certain related assets contemplated by the Stipulation of Settlement) and the
remittance of the proceeds therefrom to MGM MIRAGE (the economic beneficiary of the Trust) or its
designated subsidiary or Affiliate. The Company and Boyd Sub agree to cooperate, as may reasonably
be requested by MGM MIRAGE or the Trustee, in connection with efforts to market and (subject to the
right of first refusal with respect to Interests under Section 11.4 of the Amended Operating
Agreement), sell the Subject Interest and such related assets. Notwithstanding anything to the
contrary in the Amended Operating Agreement or otherwise, Boyd Sub:

          (a) agrees that the Company shall, and Boyd Sub shall and shall cause the Company and its
subsidiaries to, (i) afford to MGM MIRAGE and the Trustee (as applicable), their respective
representatives and advisors, and entities and persons to whom the Subject Interest is marketed on
behalf of MGM MIRAGE or the Trustee (“Bidders”), and the respective

 

 

representatives, advisors and financing sources of Bidders (“Bidder Team Members”),
such access to the Company’s and its subsidiaries’ properties, contracts, commitments, ledgers,
books and records (subject to Section 3(b) of this Agreement), and to appropriate officers,
employees, representatives and accountants of the Company and its subsidiaries as reasonably
designated by the Company, in each case, as may reasonably be requested by MGM MIRAGE or the
Trustee to facilitate the investigation, marketing, valuation and sale (and financing for a buyer’s
acquisition) of the Subject Interest, (ii) direct appropriate members of senior management of the
Company and its subsidiaries, as reasonably designated by the Company, and representatives of the
Company’s independent auditors, to participate in a reasonable number of meetings and due diligence
sessions with Bidders, Bidder Team Members, MGM MIRAGE, the Trustee, and their respective and
representatives and advisors, in connection with such investigation, marketing, valuation, sale and
financing, and (iii) cooperate with and, as may reasonably be requested by MGM MIRAGE or the
Trustee, assist MGM MIRAGE and the Trustee, in providing information to be utilized in the
preparation of marketing materials with respect to the Subject Interest, and disclosure schedules
and similar documents in connection with any agreement to sell the Subject Interest;

          (b) (i) hereby approves and consents to the Transfer by the Trust of the Subject Interest to a
Third Party, subject only to the requirements of Section 11.4 of the Amended Operating Agreement,
and (ii) agrees that upon a sale of the Subject Interest by the Trust, the transferee of the
Subject Interest shall (subject to the requirements under the New Jersey Casino Control Act, but
without necessity of any approval, consent or acknowledgment by Boyd Sub) be admitted as a Member
of the Company in the place of the Trust and have all rights of a Member under the Amended
Operating Agreement and all rights under the Amended Operating Agreement incident to the ownership
of the Subject Interest and, without limiting the generality of the foregoing, the Trust, MGM
MIRAGE and MR Sub shall be entitled to assign their respective rights under the Amended Operating
Agreement and in and to related assets, in whole or in part in their discretion, to such
transferee; and

          (c) agrees that, if requested to do so by the Trust or the transferee of the Subject Interest,
the Managing Member, on behalf of the Company, shall elect to adjust the basis of the assets of the
Company for federal income tax purposes in accordance with Section 754 of the Code for the
Company’s taxable year in which the sale of the Subject Interest by the Trust occurs. For the
avoidance of doubt, Section 7.8(a) of the Operating Agreement remains in effect and is not limited
by this Agreement.

     3. (a) In connection with any disclosure by MGM MIRAGE or the Trustee to a Bidder of Company
confidential information, MGM MIRAGE or the Trustee, as the case may be, shall require such Bidder
to agree in writing to maintain the confidentiality of such information on terms customary for a
sale transaction comparable to the sale transaction contemplated herein and in the Stipulation of
Settlement, and the Company shall be a third-party beneficiary of each such confidentiality
agreement. MGM MIRAGE or the Trustee shall make good faith efforts to negotiate such
confidentiality agreement and the initial draft of such confidentiality agreement provided to each
Bidder shall be based on the form of confidentiality agreement agreed to as of the date hereof by
the parties hereto and attached as Exhibit A. Following execution of each such
confidentiality agreement, Boyd Sub shall be provided a copy thereof.

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          (a) Boyd Sub shall not be required to provide to Bidders (i) the confidential patron database
of the Company, or any summary thereof or detailed information related thereto (provided that Boyd
Sub shall in any event make available the total number of patrons in the patron database of the
Company, the geographic breakdown (reflected on a percentage basis) of patrons identified in such
database and semi-annual reports on the number of patrons added to the patron database); (ii) any
individual or departmental salaries and wages, other than as may be included in any union
collective bargaining agreement; (iii) confidential prospective marketing strategies and plans, or
the effectiveness or results of the implementation thereof; (iv) confidential settlement agreements
(provided that Boyd Sub shall in any event make available information relating to liabilities
relating to such settlement agreements and a fair description of the claims, their background and
status (however the names (but not a fair description) of the individual parties may be redacted));
(v) confidential security or surveillance reports of the Company’s hotel and casino facility,
except for information that would reasonably be expected to be material to an evaluation of the
Subject Interest; and (vi) vendor price lists and purchase contracts (provided that Boyd Sub shall
in any event make available (A) a summary of material terms of purchase contracts that are relevant
to the evaluation of the Subject Interest by the Bidder, (B) purchase contracts providing for
payments by or to the Company or any of its subsidiaries in excess of $1 million in any fiscal year
and $3 million in the aggregate during the term thereof, or that include non-competition,
non-solicitation or exclusivity covenants and (C) other contracts that are material to the Company
or its subsidiaries, their business and operations). Notwithstanding anything to the contrary in
the foregoing, in connection with late stage negotiations between MGM MIRAGE or the Trustee and one
or more bona fide Bidders (as determined in the respective good faith discretion of MGM MIRAGE or
the Trustee provided that no Bidder shall be deemed bona fide if they have not submitted a bid in
writing, whether or not conditional) relating to a possible sale of the Subject Interest (a
“ Determination ”), following reasonable notice to Boyd Sub of such Determination, meetings
shall be promptly scheduled to provide a reasonable level of detail and information, including
appropriate documents, data or other materials withheld pursuant to clauses (ii), (iv) and (vi) of
the preceding sentence, to each such Bidder’s outside legal counsel, accountants and other
professional outside advisors in supervised data rooms, provided that such outside legal counsel,
accountants and other professional outside advisors may not photocopy such documents, data and
other materials. Likewise, appropriate officers, employees, representatives and accountants of the
Company shall meet with each such bona fide Bidder to discuss matters related to (iii) above, at a
level of detail that is not likely to divulge important trade secrets of the Company, but rather is
intended to give a bona fide Bidder an overview of marketing issues at a level that is customary
and appropriate under the circumstances for the evaluation of a purchase of the Subject Interest.

     4. Boyd Sub, and any Affiliates thereof, shall not incur liability to MGM MIRAGE (or any of
its Affiliates), the Trust, any Bidder or any transferee of the Subject Interest from the Trust, in
each case, resulting from the provision by MGM MIRAGE of information about the Company or the
Subject Interest to Bidders in connection with MGM MIRAGE’s efforts to market and sell the Subject
Interest, except in respect of information provided by Boyd Sub or the Company, and provided,
however, that the foregoing shall not waive or limit any liability that Boyd Sub (and Affiliates
thereof) may have that is unrelated to the provision of such information in connection with such
efforts to market and sell.

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     5. Subject to the occurrence of the
Transfer of the Subject Interest to the Trust (the
“Effective Time”), MGM MIRAGE agrees as follows:

          (a) if, concurrently with or following the occurrence of a Specified Distribution (as
hereinafter defined) and prior to the sale of the Subject Interest by the Trust, the Trust shall
have received a cash distribution from the Company of Distributable Cash in an amount not less than
$10,000,0000 (a “Trust Distribution”), MGM MIRAGE agrees that the Trust shall provide for
$10,000,0000 to be paid to Boyd Sub; and

          (b) following the sale
of the Subject Interest by the Trust and the remittance of the proceeds
of such sale to MGM MIRAGE or MR Sub, MGM MIRAGE shall cause the Subject Amount (as hereinafter
defined) to be paid to Boyd Sub. The “Subject Amount” shall mean: (i) if a Trust
Distribution shall not have been received by the Trust, an amount equal to the greater of (A) the
Net Proceeds Portion (as hereinafter defined) and (B) $10,000,000; and (ii) if a Trust Distribution
shall have been received by the Trust, an amount (if any) equal to the positive number excess (if
any) of the Net Proceeds Portion minus $10,000,000. The “Net
Proceeds Portion” shall mean
an amount equal to three percent (3%) of the cash sale price proceeds received by MGM MIRAGE or MR
Sub from a sale of the Subject Interest by the Trust.

     6. Subject to the occurrence of, and effective upon, the Effective Time, the Operating
Agreement is hereby amended as follows:

          (a) The following defined terms are added to Section 1.10 of the Operating Agreement:

“Stipulation of Settlement” means a Stipulation of Settlement executed on behalf of MGM
MIRAGE and the State of New Jersey, Department of Law and Public Safety, Division of Gaming
Enforcement, In The Matter of The Reopened 2005 Casino License Hearing of Marina District
Development Company, LLC.

“Trust” means the trust established pursuant to (i) the Stipulation of Settlement and (ii) a
Trust Agreement among MGM MIRAGE, MR Sub and the Trustee.

“Trust Holding Period” means the period commencing at the time MR Sub Transfers its Interest
to the Trust and the Trust becomes a Member and ending at such time thereafter as the Trust
Transfers its Interest and the transferee becomes a Member.

“Trustee” means, at any time, the person serving at such time as trustee of the Trust.”

          (b) Section 5.2(e) of the Operating Agreement is restated to read in its entirety as follows:

“If the additional capital contributions of Boyd Sub pursuant to the first sentence of
Section 3.3(a) hereof and pursuant to Section 3.3(b) hereof exceed the fair market value of
the sum of the Property and the other tangible and intangible property referred to in
Section 3.2(c) hereof at the time of the conveyance of the Property to the Company as
specified in Section 3.2(c) hereof, upon liquidation of the Company in accordance with
Article 13 hereof MR Sub shall be allocated items of income and gain, including gross

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income if necessary, in an amount equal to the positive difference, if any, of (i) the
excess of such additional capital contributions over such fair market value, over (ii) the
amount of Specified Distributions to Boyd Sub pursuant to Section 6.2(b) of this Agreement.”

          (c) The following paragraph is added to the end of Section 6.2 of the Operating Agreement:

     “If the Company shall refinance its indebtedness under terms and in circumstances that
permit the Company to make a one time distribution to Members of at least $30,807,493 of
Distributable Cash, the Managing Member shall then be entitled to a one time return of
capital distribution from the Company of $30,807,493 of such Distributable Cash (a
“Specified Distribution“), and all other Distributable Cash shall continue to be
distributed to the Members pro rata in accordance with the provisions of this Article 6 set
forth above this sentence.”

          (d) The following paragraph (e) is added to Section 7.3 of the Operating Agreement:

“(e) To the extent that a report required to be provided by the Managing Member hereunder
was due for periods preceding the Company’s 2008 fiscal year and (ii) was not, as of January
14, 2010, (A) prepared by the Managing Member or the Company or (B) requested by MR Sub (an
“Omitted Old Report”), then the Managing Member shall not be obligated to prepare and
deliver such Omitted Old Report unless a Member (the
“Requesting Member”) shall
inform the Company that the Requesting Member has discovered that it requires such Omitted
Old Report (or information to be included therein) (i) for preparation of tax returns or
required financial statements (or amendments thereto), (ii) to comply with a regulatory
requirement or a request from regulators, (iii) to defend claims, (iv) to pursue claims
(provided that if the claim is by the Requesting Member against the Managing Member, the
Requesting Member shall state that the Requesting Member reasonably believes that
information to be covered by an Omitted Report could establish, or assist the Requesting
Member in realizing, a material asset, right or remedy in favor of the Requesting Member) or
(v) for other purposes that constitute good faith and reasonable cause from the perspective
of the Requesting Member. For the avoidance of doubt, the preceding sentence shall not
limit the obligation of the Managing Member to prepare and deliver, as and when required by
this Agreement, all financial statements, certifications, audit reports and other reports
and information required by this Agreement, other than an Omitted Old Report.”

          (e) The text in Section 7.10 of the Operating Agreement is restated to read in its entirety as
follows:

“Capital
Expenditure Reserve Account . Upon opening of the Facility, Managing Member
shall create a reserve for capital expenditures (the “Capital Expenditure Reserve
Account”) into which Managing Member shall pay monthly amounts equal to three percent
(3%) of the Company’s earnings before interest, depreciation and amortization accrued during
the preceding calendar month, as calculated by Managing Member pursuant to generally
accepted principles of accounting in the gaming industry. The Capital Expenditure Reserve
Account shall be used exclusively for the replacement of

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capital equipment and for improvements to, renovations of or enhancements to the Facility in
accordance with Managing Member’s business judgement, above and beyond any capital
expenditure items contained in the annual Capital Expenditure Budget approved by the Members
as set forth in Section 7.11 hereof. The funds for the Capital Expenditures Reserve Account
shall be deposited into a bank account in accordance with the terms of Section 7.7 hereof.
The signature of an authorized representative of Managing Member shall be the only signature
required to make withdrawals (by check or otherwise) from such account, provided that the
monies withdrawn are to be used only for the purposes set forth herein. Notwithstanding the
first sentence of this Section 7.10, the Members acknowledge and agree that from and after
the opening of the Facility, Managing Member shall have the right, but not the obligation,
to fund the Capital Expenditure Reserve Account with cash, but the lack of funding shall not
affect the calculation of the amount of the Capital Expenditure Reserve Account. No Member
shall have any obligation to make a capital contribution to the Company to fund the Capital
Expenditure Reserve Account.”

          (f) The following proviso is added to the end of Section 9.2(e) of the Operating Agreement:

“provided that, during the Trust Holding Period, the approval of the Trustee shall not be
required for a refinancing of Company indebtedness if such refinancing (i) is provided on an
arm’s-length basis and does not provide, directly or indirectly, for any fee, other
compensation or other financial accommodation to the Managing Member or any Affiliates of
the Managing Member other than the Company, (ii) does not provide for any payment,
commitment, pledge or guaranty by, or recourse against, any past, current or future Member
and (iii) does not provide for any right to accelerate obligations (or otherwise require any
payment to the lenders) upon any Transfer of an Interest by, or change in control of, any
Member other than Boyd Sub;”

          (g) The text in Section 9.2(g) of the Operating Agreement is restated to read in its entirety
as follows:

“capital expenditures in excess of any funds contained in the Capital Expenditure Reserve
Account other than (i) any capital expenditures included in a Capital Expenditure Budget
prepared by the Managing Member and approved by the Non-Managing Member as provided herein,
(ii) any capital expenditures that are Project Costs to be incurred in accordance with the
terms hereof, or (iii) during the Trust Holding Period, other capital expenditures to the
extent paid for ordinary course maintenance of the Borgata Hotel Casino facility (consistent
with past practice, or as otherwise reasonably necessary), and not exceeding $25,000,000 in
the aggregate under this clause (iii) during any 12 consecutive month period;”

          (h) The figure “$500,000” in Section 9.2(i) of the Operating Agreement is replaced with
“$1,000,000”.

          (i) The following proviso is added to the end of Section 9.2(k) of the Operating Agreement:

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“provided that, during the Trust Holding Period, the approval of the Trustee shall not be
required for the retention of any of (A) PricewaterhouseCoopers, (B) Deloitte Touche
Tohmatsu, (C) Ernst & Young or (D) KPMG to audit the Company’s financial statements and
prepare its tax returns;”

          (j) The text Section 9.2(m) of the Operating Agreement is replaced with the following:
“[intentionally omitted];”

          (k) The figure “$50,000” in Section 9.2(n) of the Operating Agreement is replaced with
“$200,000”.

          (l) The word “and” is inserted at the end of Section 9.2(o) of the Operating Agreement and the
text “; and” at the end of Section 9.2(p) of the Operating Agreement is deleted and replaced with
“.”.

          (m) Section 9.2(q) of the Operating Agreement is deleted in its entirety.

          (n) In the second sentence of Section 9.3(a) of the Operating Agreement:

               (i) the word “or” is inserted immediately before clause (iii);

               (ii) clauses (iv), (v) and (vi) (from and including “; (iv)” to and including “Force Majeure
Event(s) specified therein”) are deleted; and

               (iii) the words “specified in (i) through (vi) above” are replaced with “specified in (i)
through (iii) above”.

          (o) In the third sentence of Section 9.3(a), the percentage “3.5%” is replaced with “1.5%”.

          (p) The fourth and fifth sentences of Section 9.3(a) of the Operating Agreement are deleted.

          (q) The following sentence is added to the end of Section 9.4 of the Operating Agreement:

“The Managing Member shall designate from time to time appropriate senior executives and
managers of the Managing Member and of the Company to serve as primary points of contact for
inquiries by Members regarding the Company’s operations.”

          (r) The following proviso is added to the end of the second sentence of Section 9.5(a) of the
Operating Agreement:

“and provided that the approval of the Trustee shall not be required for an appointment or
replacement of the chief executive officer (or equivalent officer) of the Company during the
Trust Holding Period”

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          (s) The second and third sentences of Section 11.2(d) of the Operating Agreement are restated
to read in their entirety as follows:

“All Transfers shall contain an agreement of the transferee to accept the Transfer and to
accept and adopt all of the applicable provisions of this Agreement. The Member making a
Permitted Transfer shall execute, acknowledge and deliver all such documents and instruments
as may be necessary or desirable to effectuate such Transfer, and shall pay all costs and
expenses incurred by the Company in connection with such Transfer.”

          (t) The following text in the first sentence of Section 11.2(e) of the Operating Agreement is
deleted:

“or would cause a default under any agreement or instrument to which the Company is a party
or by which it is bound”

          (u) The proviso in Section 11.4(a) of the Operating Agreement is restated to read in its
entirety as follows:

“, provided that the Member wishing to Transfer its Interest (the “Initiating Member”) first
offers the Interest (or portion thereof) to the other Member as provided in this Section
11.4. Notwithstanding anything to the contrary in this Agreement, Boyd Sub may not
Transfer, without the consent of all Members, all or any part of its Interest in the
Company, pursuant to this Section 11.4 or otherwise, if such Transfer would cause a default
or acceleration under any agreement or instrument to which the Company is party or by which
it is bound.”

          (v) Section 11.4(c) of the Operating Agreement is restated to read in its entirety as follows:

“(c) If the Responding Member does not deliver the Acceptance Notice within the 30-day
period referred to above, the Initiating Member may, within 90 days (or such longer period,
not in excess of 180 days, as may be necessary for the Third Party to satisfy applicable
regulatory requirements) after the expiration of such 30-day period, consummate the proposed
Transfer to a Third Party on the terms set forth in the Offering Notice or on substantially
similar terms. If the Initiating Member does not consummate the proposed Transfer within
such period, the proposed Transfer may not be effected unless the Initiating Member again
complies with the provisions of this Section 11.4.”

     7. For the avoidance of doubt, the obligation, pursuant to the Stipulation of Settlement and
the Trust Agreement for the Trust, to Transfer the Subject Interest, shall be deemed not to breach
any provision of the Operating Agreement or Amended Operating Agreement, it being understood that
Section 11.4 of the Amended Operating Agreement shall be complied with in connection with a sale of
the Subject Interest from the Trust to a Third Party.

     8. (a) Subject to the occurrence of, and effective from and after, the Effective Time, (a) the
Company’s rent payment obligation (but not any property tax or other reimbursement obligation)
under the Surface Lot Ground Lease, as amended, dated August 20,

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2004 (“Surface Lot Ground Lease”) is waived in respect of the period from the
Effective Time until such lease expires or is terminated in accordance with its terms, and (b) the
rent (but not any property tax or other reimbursement obligation) payable by the Company in respect
of post-Effective Time periods under each of the Employee Parking Ground Lease, as amended, dated
January 16, 2002 (“Employee Parking Ground Lease”), Expansion Ground Lease, as amended,
dated January 1, 2005 (“Expansion Ground Lease”) and Tower Expansion & Additional
Structured Parking Ground Lease, as amended, dated January 1, 2005 (“Tower Expansion &
Additional Structured Parking Ground Lease”) is reduced by 10%, respectively, from the rent in
effect immediately prior to the Effective Time, in each case, subject to future increase pursuant
to CPI escalators and other adjustment provisions set forth therein.

          (a) Pursuant to the terms of each of the Surface Lot Ground Lease, Employee Parking Ground
Lease, Expansion Ground Lease and Tower Expansion & Additional Structured Parking Ground Lease
(collectively, the “Leases”), notice is hereby given that MR Sub shall, subject to the
occurrence of the Transfer of the Subject Interest to the Trust, assign all of its right, title and
interest, as landlord, in and to each of the Leases to the Trust. Boyd Sub and the Company hereby
waive any longer notice that may be required under the Leases in respect of such assignments.

     9. (a) The provisions of this Agreement may not be waived, amended or repealed, in whole or in
part, by any of the parties hereto, except with the written consent of each of the parties hereto.

          (a) This Agreement shall be binding on, and inure to the benefit of, the parties hereto and
their respective successors and assigns.

          (b) This Agreement may be executed in one or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument.

          (c) This Agreement, together with the Operating Agreement (as amended by this Agreement),
constitutes the complete and exclusive statement of the agreement among the parties hereto with
respect to the subject matter of this Agreement.

          (d) Each of the parties hereto agrees to perform any further acts and execute, acknowledge and
deliver any documents or instruments which may be reasonably necessary or appropriate to carry out
the provisions of this Agreement.

          (e) This Agreement shall be governed by and construed in accordance with the laws of the State
of New Jersey, excluding its conflict of law principles. In the event of any litigation between
the parties concerning or arising out of this Agreement, the parties hereby consent to the
exclusive jurisdiction of the federal and state courts in New Jersey.

          (f) This Agreement shall be governed by and construed in accordance with the laws of the State of New Jersey,
excluding its conflict of law principles. In the event of any litigation between the parties concerning or arising out
of this Agreement, the parties hereby consent to the exclusive jurisdiction of the federal and state courts in New Jersey.

     10. Notwithstanding anything to the contrary in Sections 7.10 and 9.2 in the Amended Operating
Agreement, during the Trust Holding Period (as such term is defined in the Amended Operating
Agreement) (A) the Capital Expenditure Reserve Account shall not be funded, (B) no capital
expenditures shall be made using the Capital Expenditure Reserve Account and (C) no

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capital expenditures shall be made except as specifically provided pursuant to clauses (i)
through (iii) of Section 9.2(g) of the Amended Operating Agreement.

     11. MR Sub represents that, to the Knowledge of MR Sub (as defined below), as of the date of
this Agreement there is no breach of the Operating Agreement that has had a material adverse effect
on the business, operations and financial condition of the Company and its subsidiaries, taken as a
whole. Boyd Sub represents that, to the Knowledge of Boyd Sub (as defined below), as of the date
of this Agreement there is no breach of the Operating Agreement that has had a material adverse
effect on the business, operations and financial condition of the Company and its subsidiaries,
taken as a whole. For purposes of this Section: (a) “Knowledge of MR Sub” means the actual
knowledge, as of the date of this Agreement, of James J. Murren, John M. McManus, William
Hornbuckle and Daniel J. D’Arrigo, without any duty of inquiry and which shall not encompass
constructive, imputed or similar concepts of knowledge; and (b) “Knowledge of Boyd Sub” means
the actual knowledge, as of the date of this Agreement, of William S. Boyd, Keith Smith,
Robert L. Boughner, Brian A. Larson, Joseph Corbo and Auggie Cippolini, without any duty of inquiry
and which shall not encompass constructive, imputed or similar concepts of knowledge.

[signature page follows]

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

	 	 	 	 	 
	 	MARINA DISTRICT DEVELOPMENT HOLDING CO., LLC

 	 
	 	By:  	/s/ Keith Smith
 	 
	 	 	Name:  	Keith Smith 	 
	 	 	Title:  	Manager and Vice President 	 
	 
	 	BOYD ATLANTIC CITY, INC.

 	 
	 	By:  	/s/ Brian A. Larson
 	 
	 	 	Name:  	Brian A. Larson 	 
	 	 	Title:  	Vice President and
Assistant Secretary 	 
	 
	 	BOYD GAMING CORPORATION

 	 
	 	By:  	/s/ Brian A. Larson
 	 
	 	 	Name:  	Brian A. Larson 	 
	 	 	Title:  	Executive Vice President,
Secretary and General Counsel 	 
	 
	 	MAC, CORP.

 	 
	 	By:  	/s/ John McManus
 	 
	 	 	Name:  	John McManus 	 
	 	 	Title:  	Secretary 	 
	 
	 	MGM MIRAGE

 	 
	 	By:  	/s/ John McManus
 	 
	 	 	Name:  	John McManus 	 
	 	 	Title:  	Secretary 	 
	 

11exv10w2

EXHIBIT 10.2

PAULA T. DOW

Attorney General of New Jersey

Attorney for the State of New Jersey

Department of Law and Public Safety

Josh Lichtblau, Director

Division of Gaming Enforcement

140 E. Front Street

Trenton, New Jersey 08625

and

1300 Atlantic Avenue

Atlantic City, New Jersey 08401

	By: 	 	 George N. Rover, Assistant Attorney General

Anthony J. Zarrillo, Jr., Assistant Attorney General

(609) 292-0282

FOX ROTHSCHILD LLP

Midtown Building, Suite 400

1301 Atlantic Avenue

Atlantic City, NJ 08401-7212

Attorneys for MGM MIRAGE

	By: 	 	 Nicholas Casiello, Jr., Esq.

Patrick Madamba, Jr., Esq.

	 	 	 	 	 

	 
	 

	 	:	 	 
	IN THE MATTER OF THE REOPENED

	 	:	 	 
	2005 CASINO LICENSE HEARING OF

	 	:	 	 
	MARINA DISTRICT DEVELOPMENT

	 	:
	 	STIPULATION OF SETTLEMENT
	COMPANY, LLC

	 	:	 	 
	 

	 	:	 	 
	 

     The above-captioned matter having been discussed by and between the parties involved, Paula T.
Dow, Attorney General of New Jersey, attorney for State of New Jersey, Department of Law and Public
Safety, Division of Gaming Enforcement (“Division”), Josh Lichtblau, Director, by George N. Rover,
Assistant Attorney General, and Anthony J. Zarrillo, Jr., Assistant Attorney General, and Fox
Rothschild LLP by Nicholas Casiello, Jr., Esq. and Patrick Madamba, Jr., Esq., attorneys for MGM
MIRAGE, the following facts have been agreed upon and stipulated as to the Division and MGM MIRAGE:

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STIPULATED FACTS:

     1. MGM MIRAGE, a Delaware corporation, is a “holding company” and a “publicly traded
corporation” as those terms are defined in Sections 26 and 39 of the Casino Control Act,
N.J.S.A. 5:12-1 et seq. (the “Act”).

     2. Mirage Resorts, Incorporated (“MRI”), a Nevada corporation, is a wholly owned subsidiary of
MGM MIRAGE. It is not a “publicly traded corporation” as that term is defined in Section 39 of the
Act, but is a “holding company” and “intermediary company” as those terms are defined in Sections
26 and 28 of the Act.

     3. MAC, CORP. (“MAC”), a New Jersey corporation, is a wholly owned subsidiary of MRI. It is
not a “publicly traded corporation” as that term is defined in Section 39 of the Act, but is a
“holding company” and “intermediary company” as those terms are defined in Sections 26 and 28 of
the Act.

     4. MAC owns 50% of Marina District Development Holding Co., LLC (“MDDH”), a New Jersey limited
liability company. MDDH is not a “publicly traded corporation” as that term is defined in Section
39 of the Act, but is a “holding company” and “intermediary company” as those terms are defined in
Sections 26 and 28 of the Act.

     5. Boyd Gaming Corporation (“Boyd”), a Nevada corporation, is a “holding company” and a
“publicly traded corporation” as those terms are defined in Sections 26 and 39 of the Act. Boyd is
not an “affiliate” of MGM MIRAGE as that term is defined in Section 2.1 of the Act.

     6. Boyd Atlantic City, Inc. (“BAC”), a New Jersey corporation, is a wholly owned, indirect
subsidiary of Boyd. BAC is not a “publicly traded corporation” as that term is defined in Section
39 of the Act, but is a “holding company” and “intermediary company” as those terms are defined in
Sections 26 and 28 of the Act. BAC owns the other 50% of MDDH.

     7. MDDH owns 100% of Marina District Development Company, LLC (“MDDC”), a New Jersey limited
liability company. Consequently, MGM MIRAGE and Boyd each indirectly own 50% of MDDC. MDDC is the
holder of a casino license issued by the Casino

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Control Commission (the “Commission”) for a term expiring June 30, 2010, for the “Borgata
Hotel Casino & Spa®”, an approved casino hotel facility.

     8. The day-to-day management and operation of casino licensee MDDC is controlled by Boyd,
through its wholly owned, indirect subsidiary, BAC, pursuant to a Second Amended and Restated Joint
Venture Agreement of Marina District Development Co. (the predecessor in interest to MDDC) dated
August 31, 2000, and as amended by the Contribution and Adoption Agreement dated December 13, 2000,
the First Amendment to the Operating Agreement of MDDH dated June 18, 2003, and the Agreement dated
as of February 26, 2010, by and among MDDH, MGM MIRAGE, Boyd, BAC and MAC (the “Second Amendment”
and, collectively, the “Amended Operating Agreement”).

     9. MAC, BAC, MDDH and MDDC have entered into an Attribute Allocation Agreement dated as of
April 15, 2005 (the “Attribute Allocation Agreement”), to provide for a methodology to account for
certain “tax attributes” (as such term is therein defined) utilized in the New Jersey consolidated
corporate business tax return filed annually by the parties thereto and, as applicable, to provide
for an annual payment to or from either or both of MAC and BAC for the use of tax attributes, all
as set forth in the Attribute Allocation Agreement.

     10. MGM MIRAGE, through its subsidiaries, indirectly owns approximately 130 acres on the area
commonly referred to as “Renaissance Pointe” in Atlantic City, New Jersey. Approximately ten of
the acres are subject to long-term ground leases with MDDC for use in the Borgata Hotel Casino &
Spa® casino hotel operations. The long-term ground leases are more fully described as follows:

(a) That certain Lease and Option Agreement dated as of January 16, 2002, by and
between MAC and MDDC pertaining to Block 576, Tax Lot 1.05 on the Tax Map of the
City of Atlantic City, New Jersey, as amended (the “Employee Parking Structure
Ground Lease”);

(b) That certain Lease Agreement dated as of January 1, 2005, by and between MAC and
MDDC pertaining to Block 576, Tax Lot 1.08 on the Tax Map

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of the City of Atlantic City, New Jersey, and any amendments thereto (the
“Restaurant Expansion Ground Lease”), and

(c) That certain Lease Agreement dated as of January 1, 2005, by and between MAC and
MDDC pertaining to Block 576, Tax Lots 1.10 and 1.11 on the Tax Map of the City of
Atlantic City, New Jersey, as amended (the “Additional Structured Parking Lot/Tower
Expansion Parcel Ground Lease”). (The Employee Parking Structure Ground Lease,
Restaurant Expansion Ground Lease and Additional Structured Parking Lot/Tower
Expansion Parcel Ground Lease are collectively referred to as the “Long-Term Ground
Leases”.)

     11. Of the remaining 120 acres indirectly owned by MGM MIRAGE through its subsidiary, MAC,
approximately 72 acres are suitable for development (the “Renaissance Pointe Proposed Casino
Site”). In October 2007, MGM MIRAGE announced plans for a multi-billion dollar casino hotel resort
complex on the 72-acre Renaissance Pointe Proposed Casino Site. MAC is an applicant with the
Commission for a casino license and such application is currently pending before the Commission.

     12. Approximately nine of the developable acres that are a part of the Renaissance Pointe
Proposed Casino Site are subject to a short-term (month-to-month) ground lease with MDDC for
surface parking (the “Surface Parking Lot Lease”) and a portion of the remaining acres consists of
common roads, landscaping and master plan improvements, which MGM MIRAGE caused to be designed and
developed as required by an agreement with BAC in connection with the development of the “Borgata
Hotel Casino & Spa®”.

     13. The Surface Parking Lot Lease is more fully described as that certain Lease Agreement
dated as of August 20, 2004, by and between MAC and MDDC pertaining to Block 576, Tax Lot 1.07 on
the Tax Map of the City of Atlantic City, New Jersey, as amended. The real property subject to the
Surface Parking Lot Lease is an integral part of the Renaissance Pointe Proposed Casino Site and
thus such real property was leased by MAC to MDDC on a short-term, temporary basis (and not as a
permanent part of MDDC’s approved casino hotel

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facility site for the “Borgata Hotel Casino & Spa®”) with the understanding that the Surface
Parking Lot Lease would be terminable at anytime (subject to the applicable notice period for
termination) to preserve the value of and allow for development on the Renaissance Pointe Proposed
Casino Site.

     14. MGM MIRAGE, through its subsidiary, AC Holding Corp. II, owns an additional approximately
14 acres in the area of Atlantic City, New Jersey, commonly referred to as the “Marina District”,
which is near but not contiguous to Renaissance Pointe (the “Marina District Site”). (The
approximately 130 acres on the area commonly referred to as Renaissance Pointe and the Marina
District Site are collectively referred to as the “Atlantic City Real Property”.)

     15. Independent of its investments and ownership of real property in Atlantic City, MGM MIRAGE
indirectly owns, through a series of wholly-owned subsidiaries, fifty percent (50%) of MGM Grand
Paradise Limited, an entity which developed and operates “MGM Grand Macau”, a hotel casino resort
in Macau S.A.R., China.

     16. Ms. Pansy Ho Chiu-king, directly and indirectly, owns the other fifty percent (50%) of MGM
Grand Paradise Limited. MGM MIRAGE and certain of its affiliates entered into an agreement with
Ms. Ho and certain of her affiliates governing their relationship with respect to the development
and operation of the MGM Grand Macau on June 19, 2004, as amended and restated.

     17. MDDC’s casino license was most recently renewed by the Commission on June 22, 2005.
See Commission Resolution No. 05-06-22-15. In connection therewith, the Commission found
each of MGM MIRAGE, MRI and MAC qualified as a holding company of MDDC. See Commission
Resolution No. 05-06-22-15, Findings and Rulings, ¶ 2.

     18. In the Division’s June 1, 2005, report to the Commission with respect to MDDC’s 2005
casino license renewal (the “Division 2005 Renewal Report”), however, the Division stated that it
was “monitoring MGM [MIRAGE’S] activities” in Macau and it would “continue to review this joint
venture project [with Pansy Ho] and report any material information to the Commission as deemed
appropriate.” Division 2005 Renewal Report at 19.

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     19. On May 18, 2009, the Division filed a report with the Commission captioned Special
Report of the Division of Gaming Enforcement to the Casino Control Commission on Its Investigation
of MGM MIRAGE’s Joint Venture with Pansy Ho in Macau, Special Administrative Region, People’s
Republic of China (the “Special Report”). The Special Report is the culmination of the
Division’s investigation with respect to MGM MIRAGE’s investment in Macau and its relationship with
Pansy Ho.

     20. In the Special Report, the Division made the following recommendations to the Commission:

	 	(a)	 	That Stanley Ho be found to be an unsuitable person under the
Act;
	 
	 	(b)	 	That Pansy Ho be found to be an unsuitable person under the
Act;
	 
	 	(c)	 	That Pansy Ho be found not to be independent of Stanley Ho;
	 
	 	(d)	 	That MGM MIRAGE be directed to disengage itself from any direct
or indirect business or financial association with Pansy Ho, or her related
entities;
	 
	 	(e)	 	That MGM MIRAGE’s due diligence/compliance efforts be found to
be deficient under the Act, and
	 
	 	(f)	 	That a public hearing be held to address the facts and
circumstances set forth in the Special Report.

     21. In furtherance of the Division’s request that the Commission hold a hearing to address the
issues raised in the Special Report, by letter dated July 27, 2009, the Division requested the
Commission to reopen the 2005 casino license hearing of MDDC pursuant to Section 88a of the Act.
Consequently, by correspondence dated August 3, 2009, the Commission notified the Division and
counsel to joint petitioners that MDDC’s casino license hearing is reopened and that further
proceedings would be scheduled.

     22. On August 18, 2009, a Joint Petition bearing reference number 2300906 was filed by MGM
MIRAGE, Boyd and MDDC seeking certain declaratory rulings with respect to procedural issues related
to the reopened casino license hearing. On August 18, 2009, joint

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petitioners also filed letter-briefs in support of the Joint Petition. On August 28, 2009,
the Division filed a letter-brief in response to the Joint Petition. The Commission then heard the
matter at its public meeting of September 22, 2009, and granted in part and denied in part the
relief sought by way of the Joint Petition (all as set forth in Commission Resolution No.
09-09-22-13).

SETTLEMENT AGREEMENT:

     IT IS THEREFORE AND HEREBY consented to and agreed upon by the Division and MGM MIRAGE that:

     A. MGM MIRAGE shall irrevocably place in a divestiture trust (the “Trust”) its entire indirect
ownership interest in casino licensee MDDC. More particularly, MGM MIRAGE shall cause its wholly
owned, indirect subsidiary, MAC, to place in the Trust all of MAC’s limited liability company
ownership interest in MDDH. MGM MIRAGE shall also cause MAC to place in the Trust title to the
real property subject to the Long-Term Ground Leases and assign to the Trust the Long-Term Ground
Leases themselves, none of which shall be amended without the prior approval of the
Commission.i (The MDDH limited liability company interests owned by MAC together with
title to the real property subject to the Long-Term Ground Leases and the Long-Term Ground Leases
themselves are collectively referred to as the “Trust Property”.)

     B. MGM MIRAGE shall also cause MAC to place in the Trust title to the real property subject to
the Surface Parking Lot Lease and assign to the Trust the Surface Parking Lot

 

			
	i	 	As a result of changes in certain lot lines
in connection with a minor subdivision that created Lot 1.12 in Block 576 on
the Tax Map of the City of Atlantic City (in the area commonly referred to as
Renaissance Pointe) that occurred after the initial execution of the Long-Term
Ground Leases, the metes and bounds descriptions in such leases do not, in the
case of the Restaurant Expansion Ground Lease and the Employee Parking
Structure Ground Lease, conform to the subdivision map filed in the Clerk’s
Office for Atlantic County, New Jersey, on July 30, 2008, in Volume 00903 as
no. 2008058558 (the “Subdivision Map”). In addition, the metes and bounds
description in the Surface Parking Lot Lease does not conform to the
Subdivision Map. MGM MIRAGE and MDDC have agreed upon the form of amendments
to the Long-Term Ground Leases and the Surface Parking Lot Lease to correct the
descriptions and address certain other matters. MAC and MDDC have also agreed
upon the form of a certain “Ground Lease Agreement With Respect To Block 576,
Lot 1.12” for the lease of Block 576, Lot 1.12 as shown on the Subdivision Map
(the “Alternate Parking Lease”). The Alternate Parking Lease and the
amendments to the Long-Term Ground Leases are subject to the approval of the
Commission, and such approval by the Commission shall be considered
contemporaneously with this Stipulation of Settlement and the Trust Agreement.
Notwithstanding anything to the contrary in this Stipulation of Settlement or
otherwise, however, only so much of such real property as conforms to the
current lot lines on the Subdivision Map shall be a part of the Trust Property.

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Lease itself (the “Additional Trust Property”). Said real property is to be held on a
short-term basis in the Trust until such time as the Surface Parking Lot Lease is terminated (as
more fully described in paragraph K below). MGM MIRAGE shall also cause MAC to place in the Trust
title to the real property subject to the Alternate Parking Lease and assign to the Trust the
Alternate Parking Lease itself (the “Springing Trust Property”).

     C. MGM shall have the right to appoint a natural person to serve as the trustee under the
Trust (the “Trustee”). The Trustee shall meet all of the criteria necessary to qualify as a casino
key employee, except for residency, under the Act. The Trustee shall be someone acceptable to the
Division in its discretion and approved by the Commission contemporaneously with the Commission’s
consideration of this Stipulation of Settlement. The Trustee shall also be someone who has had
prior experience with the New Jersey casino regulatory system; provided, however, that the Trustee
must not have had any prior relationship with MGM MIRAGE or its subsidiaries or affiliates, or any
of their respective officers or directors, including any prior business or consulting relationship.

     D. The trust agreement creating the Trust (the “Trust Agreement”) shall be in the form
attached hereto as Exhibit A and made a part hereof.

     E. MGM MIRAGE and its subsidiaries shall be the economic beneficiaries of the Trust. The
Commission and Division shall be the regulatory beneficiaries of the Trust.

     F. MGM MIRAGE shall cause MAC to irrevocably transfer all of MAC’s present and future interest
in the Trust Property to the Trust and transfer MAC’s present and future interest in the Additional
Trust Property and the Springing Trust Property to the Trust no later than five (5) business days
following approval of this Stipulation of Settlement by the Commission.

     G. Neither MGM MIRAGE, nor any of its holding companies, subsidiaries or affiliates, nor any
of their respective principals, directors, officers, employees or agents, shall exercise or attempt
to exercise any control or influence over the Trustee or MDDC, or communicate in any manner with
the Trustee or MDDC, commencing upon the Effective Date of

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the Trust (as the term “Effective Date” is defined in the Trust Agreement) other than as may
be expressly permitted under the terms of the Trust Agreement.

     H. The Trust Property must be disposed of within thirty (30) months of the Effective
Date of the Trust. MGM MIRAGE shall have the first eighteen (18) months from the Effective Date of
the Trust (the “Divestiture Period”) to direct the Trustee (strictly in accordance with, and solely
to the extent provided under, the terms of the Trust Agreement) to dispose of all or any part of
the Trust Property to any person(s) who satisfies all applicable requirements of the Act, and any
such disposition shall be subject to the prior approval of the Commission.

     I. If MGM MIRAGE fails to direct the Trustee to dispose of the entirety of the Trust Property
within the Divestiture Period, the Trustee shall thereafter dispose of all of the Trust
Property for cash within twelve (12) months from the expiration of the Divestiture Period (the
“Terminal Sale Period”), and any such disposition shall be subject to the prior approval of the
Commission. Prior to the consummation of any sale during the Terminal Sale Period, the Trustee
shall obtain a customary opinion from a qualified investment banking firm that the transaction is
fair from a financial point of view (“Fairness Opinion”) as this term is defined below.

     For purposes of this Stipulation of Settlement, the Fairness Opinion rendered by the
investment banking firm shall determine the fairness of the consideration paid based upon factors
which must include: (1) the current gaming market conditions, specifically those existing in
Atlantic City, New Jersey, during the Terminal Sale Period at which the sale is to be consummated;
(2) that the seller/Trustee is compelled by exigent circumstances to consummate the sale for cash
within the twelve (12) month Terminal Sale Period, and (3) any other factors that are not
inconsistent with factors (1) and (2) above.

     The Fairness Opinion shall be provided to the Trustee with a copy to be provided to MGM MIRAGE
upon the consummation of the disposition of the Trust Property and may be relied upon by MGM
MIRAGE. The Trustee may obtain the Fairness Opinion from the same firm that assisted the Trustee
with the disposition of the Trust Property.

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     The Trustee shall utilize a nationally recognized investment banking firm with substantial
experience in the gaming industry that is acceptable to the Commission and the Division. The cost
to retain such an investment banking firm shall be an expense of the Trust.

     J. In addition to the Trustee’s general fiduciary duty to the Commission and Division as the
regulatory beneficiaries of the Trust Agreement, during the Terminal Sale Period the Trustee shall
owe a specific fiduciary duty to the Commission and the Division with respect to the Trustee’s
obligations to dispose of the Trust Property during, but prior to the expiration of, the Terminal
Sale Period. During the Terminal Sale Period, the Trustee shall provide written reports in a form
approved by the Commission in consultation with the Division to MGM MIRAGE regarding the Trustee’s
efforts to sell the Trust Property not less often than quarterly.

     K. At all times, MGM MIRAGE shall have the right, on ten (10) business days prior written
notice to the Commission and the Division, to direct, notwithstanding the ban on communication
imposed under paragraph 14 of the Trust Agreement, the Trustee to terminate the Surface Parking Lot
Lease strictly in accordance with its terms (which lease shall not be amended without the prior
approval of the Commission). In the event that the Surface Parking Lot Lease is terminated, title
to the real property previously subject to the Surface Parking Lot Lease shall be promptly
reconveyed to MAC, and such real property shall no longer be subject to the Trust. In the event
that the Surface Parking Lot Lease has not been terminated by the date of the disposition of the
entirety of the Trust Property, the Surface Parking Lot Lease must then be promptly terminated
unless the Commission and Division approve a request by MGM MIRAGE and MDDC, jointly, submitted
within ten (10) days of the Trustee’s completion of his final accounting pursuant to paragraph 25
below, to continue the Surface Parking Lot Lease in effect for a period and under such terms as may
be approved by the Commission and Division in their discretion. Any such request seeking a
continuation of the Surface Parking Lot Lease shall contain, at a minimum, a request that the
Additional Trust Property remain subject to the Trust Agreement for so long as the Commission deems
necessary following a termination of the Surface Parking Lot Lease in accordance with its terms.

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     L. MGM MIRAGE hereby makes no admission of liability or culpability with respect to the
matters set forth in the Special Report. The Division and MGM MIRAGE hereby agree that this
Stipulation of Settlement and the fact of entry into it by MGM MIRAGE shall neither be construed,
nor is it intended by way of suggestion or implication, to be any admission of liability or
culpability on the part of MGM MIRAGE, or any of its subsidiaries or affiliates, or any of their
respective officers or directors, with respect to the matters set forth in the Special Report.

     M. MGM MIRAGE and the Division hereby agree that the Special Report is a public document upon
approval of this Stipulation of Settlement by the Commission subject only to the redactions
approved by the Division prior to entering into this Stipulation of Settlement. The redacted form
of the Special Report to be released to the public is attached hereto as Exhibit B.
Notwithstanding the foregoing, MGM MIRAGE and the Division acknowledge that the Commission
exclusively retains the authority to determine what, if any, portions of the Special Report are
entitled to confidential treatment and that nothing herein limits the Commission’s authority in
that regard.

     N. In connection with the parties seeking the Commission’s approval of this Stipulation, MGM
MIRAGE shall cause (i) MAC to request that its application for a casino license be withdrawn, (ii)
MAC to request that MAC be administratively removed from the Commission’s Master Vendors List and
(iii) MGM MIRAGE and each of MRI, MAC and Tracinda Corporation to request to withdraw from each and
every status any of them may currently have as a holding company or intermediary company, or
otherwise qualified, licensed or registered in any other capacity, as the case may be, under the
Act. The Division hereby consents to all such foregoing withdrawals and removals. All of the
forgoing withdrawals and removals shall not be effective unless and until the Commission approves
this Stipulation of Settlement and all of the Trust Property, the Additional Trust Property and the
Springing Trust Property is transferred to the Trust.

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     O. Upon transferring all of the Trust Property, the Additional Trust Property and the
Springing Trust Property to the Trust, and the Commission granting any necessary waivers from the
qualification requirement pursuant to the Act (and without limitation N.J.S.A. 5:12-85(d)),
MGM MIRAGE and each of its subsidiaries and affiliates (including, but not limited to, MAC, MRI and
Tracinda Corporation), and each of their respective directors, officers and employees will no
longer be in a status that requires any of them to be qualified as a holding company or
intermediary company (as the case may be), or to be qualified, licensed or registered in any other
capacity under the Act. With respect to the granting of any such necessary waivers, the Division
shall concur with any granting thereof by the Commission.

     P. Neither MGM MIRAGE nor any of its subsidiaries, affiliates or the principals of any of them
shall file an application with the Commission for a casino license or to be found qualified as a
security holder of a casino licensee or otherwise seek approval by the Commission under the Act or
its regulations for a period of thirty (30) months following the dissolution of the Trust (the
“Application Bar Period”); provided that, if the Surface Parking Lot Lease has not been terminated
by the date of the disposition of the entirety of the Trust Property then the Application Bar
Period shall begin to run on the date of the disposition of the entirety of the Trust Property. In
the event that MGM MIRAGE or any of its subsidiaries or affiliates or any principal of any of them
(including any former principal whose conduct bears upon the matters raised in the Special Report)
files at any time after the Commission’s approval (if any) of this Stipulation of Settlement an
application with the Commission for a casino license or to be found qualified as a security holder
of a casino licensee or otherwise seek approval by the Commission under the Act or its regulations,
the Division shall have the right to assert any or all of the matters set forth in the Special
Report (including matters redacted by the Commission or any judicial body) in connection with the
Division’s position on any such application.

     Q. On and after the Effective Date of the Trust, any and all proceeds, earnings,
distributions, returns and other income of any kind whatsoever attributable to the Trust Property,
the Additional Trust Property and/or the Springing Trust Property (whether upon the disposition

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of the Trust Property pursuant to paragraph I above or otherwise), including but not limited
to all lease payments attributable to the Long-Term Ground Leases, the Surface Parking Lot Lease,
and the Alternate Parking Lease are to be paid directly to the Trustee to be held in the Trust with
any distribution thereof to MGM MIRAGE strictly subject to paragraph V below. In the event of any
payment, inadvertent or otherwise, of any such amount to MGM MIRAGE, or any of its affiliates,
subsidiaries or the principals of any of them, any such recipient upon having actual knowledge of
any such payment, notwithstanding the ban on communication imposed pursuant to the terms of the
Trust Agreement, shall immediately notify the Trustee, the Commission and the Division of receipt
of such payment, and within three (3) business days after such notice, forward the amount of such
payment to the Trustee, failing which the Division shall be authorized to proceed on an emergent
basis before the Commission for such relief as the Division deems appropriate.

     R. Until the approval by the Commission of the final accounting incidental to the termination
of the Trust Agreement in accordance with paragraph V below, the Trustee shall not in any event
distribute or otherwise release, relinquish or turnover to MGM MIRAGE, or any of its affiliates,
subsidiaries or the principals of any of them, any funds received by the Trustee including,
but not limited to, those received by the Trustee on account of proceeds, earnings, distributions,
returns, lease payments or other income of any kind whatsoever in connection with the Trust
Property, the Additional Trust Property or the Springing Trust Property. If for any reason the
Trustee, although obligated in accordance with paragraph V below to distribute to MGM MIRAGE all
proceeds received on account of the disposition of the Trust Property (and any other proceeds,
funds or things of value then remaining in the Trust) net of expenses of the transaction and of the
Trustee, finds himself in possession thereof and so seeks to make an additional distribution to MGM
MIRAGE after termination of the Trust Agreement, the Trustee shall due so upon ten (10) business
days prior written notice to the Commission and the Division.

     S. The expenses associated with the maintenance of the property in the Trust and the fees and
expenses of the Trustee (the “Trust Expenses”) shall be the responsibility of, and paid

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directly by, MGM MIRAGE and MAC except as set forth herein. The Trust Expenses in any event
include (i) the fees and expenses of the Trustee, (ii) real property taxes attributable to the
property subject to the Long-Term Ground Leases, the Surface Parking Lot Lease and the Alternate
Parking Lease, and (iii) all costs to correct any adverse condition on the Atlantic City Real
Property that presents a real and present danger to the health, safety or welfare of the public, or
a condition that requires correction or mitigation by order of any governmental body or agency.
MGM MIRAGE and MAC shall pay directly the Trust Expenses and regulatory expenses of the Commission
and the Division as and when the same become due and payable, except to the extent that the amount
thereof is paid to the relevant payee by the Trustee as set forth herein below or in paragraph T
hereof. The Trustee, prior to the date such expenses become due, shall promptly notify MGM MIRAGE,
through the Division on notice to the Commission, if the Trustee requires expenses to be paid.

          For purposes of this Stipulation of Settlement, “Minimum Cash Balance” shall mean a minimum
balance in cash or cash equivalents of $1,000,000 in the Trust (the “Minimum Cash
Balance”). On the Effective Date of the Trust, there shall be at least the Minimum Cash
Balance in the Trust. To the extent that the actual amount in cash or cash equivalents in the
Trust at any time is less than the Minimum Cash Balance, MGM MIRAGE shall be obligated to and shall
promptly advance to the Trust such amount(s) as may be necessary to maintain the Minimum Cash
Balance in the Trust, provided that the aggregate amount which MGM MIRAGE is obligated to
contribute to the Trust pursuant to this clause shall not exceed $5,000,000. To the extent that
the actual amount in cash or cash equivalents in the Trust at any time is greater than the Minimum
Cash Balance, then, subject to paragraph R hereof, the amount thereof shall be available for Trust
Expenses to the extent permitted herein and in paragraph T hereof. The Trustee shall notify MGM
MIRAGE, through the Division, if it requires a contribution pursuant to this clause.

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          To the extent the balance in the Trust exceeds the Minimum Cash Balance, the Trustee shall
promptly pay the Trust Expenses (as hereinbefore defined) in accordance with the terms of the Trust
Agreement.

     T. To the extent the balance in the Trust exceeds the Minimum Cash Balance, the Trustee shall
promptly pay (in addition to other amounts the Trustee deems necessary and reasonable) the
following:

	 	(i)	 	Real property taxes attributable to the Atlantic City Real
Property (other than the property subject to the Long-Term Ground Leases, the
Surface Parking Lot Lease and the Alternate Parking Lease), and such amounts
shall be paid directly to the tax collector for the City of Atlantic City, New
Jersey;
	 
	 	(ii)	 	Interest expenses related to the investment of MGM MIRAGE and
its subsidiaries in MDDC under that certain Revolving Line Of Credit Promissory
Note dated December 26, 2002, made by MAC in favor of MRI in the original
principal amount of $350 million, and such amounts shall be paid directly to
Bank of America, N.A., as Administrative Agent for the Lenders under the Fifth
Amended and Restated Loan Agreement dated as of October 3, 2006, as amended,
among MGM MIRAGE, certain of its subsidiaries, the Lenders described therein,
and Bank of America, N.A., as Administrative Agent, for the payment of
principal and interest thereof;
	 
	 	(iii)	 	For so long as MDDH and MDDC are limited liability companies
or other tax pass-though entities, the amount of the state and federal income
tax liability attributable to MGM MIRAGE and its subsidiaries and affiliates by
reason of the inclusion by MGM MIRAGE and/or its subsidiaries and affiliates of
its or their share of income, loss, credits and other tax attributes of MDDC in
any applicable income tax returns filed by MGM

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	 	 	 	MIRAGE and/or its subsidiaries and affiliates (determined solely on the
basis of the tax attributes of MDDC and ignoring the tax attributes of MGM
MIRAGE and its other subsidiaries and affiliates), and such amounts shall be
paid directly to the respective taxing authority;

	 	(iv)	 	Maintenance and lighting expenses attributable to the
Renaissance Pointe Proposed Casino Site, and such amounts shall be paid
directly to MDDC, and
	 
	 	(v)	 	Amounts payable to Boyd and/or its subsidiaries pursuant to and
in compliance with Section 5 of the Second Amendment.

Notwithstanding any of the foregoing to the contrary, no payment shall actually be made by the
Trustee without first giving the Commission and the Division ten (10) business days prior written
notice of any such payment, and the Trustee having received no request during such ten (10) day
notice period from either the Commission or the Division that the Trustee is required to obtain the
formal approval of the Commission for the purpose of confirming that the subject payment is for an
expense(s) within one or more of the foregoing categories of permitted expenses.

     U. In the event that MDDC receives notice of a Triggering Event (as such capitalized term is
defined in the Alternate Parking Lease), and MDDC, in its sole and absolute discretion, terminates
the Alternate Parking Lease as provided for therein and strictly in accordance with its terms, upon
such termination, title to the real property previously subject to the Alternate Parking Lease
shall be promptly reconveyed to MAC, and such real property shall no longer be subject to the
Trust. In the event that MDDC receives notice of a Triggering Event (as such capitalized term is
defined in the Alternate Parking Lease), and MDCC, in its sole and absolute discretion, elects to
not terminate the Alternate Parking Lease as provided for therein and strictly in accordance with
its terms, then the Springing Trust Property shall become a part of the Trust Property. In the
event of any other termination of the Alternate Parking Lease, upon such termination, title to the
real property previously subject to the Alternate Parking Lease shall be promptly reconveyed to
MAC, and such real property shall no longer be subject to the Trust.

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     V. Within twenty (20) days following the disposition of all Trust Property in accordance with
paragraphs H and/or I above (as the case may be) (and with the Trustee continuing to retain the
proceeds from such disposition), the Trustee shall prepare his final accounting and shall present
same to the Division for its review to be completed within ten (10) days thereafter and, if
satisfactory to the Division, then submit the final accounting, along with a request to dissolve
the Trust and discharge the Trustee, to the Commission for its approval in the normal course,
without prejudice to any request being made to the Commission that it consider such matter within
fifteen (15) days of such submission. If the Commission approves the final accounting by the
Trustee, the Trustee shall then distribute to MGM MIRAGE (or its designated subsidiary or
affiliate) any and all proceeds received on account of the disposition of the Trust Property (and
any other proceeds, funds or things of value then remaining in the Trust, other than the Additional
Trust Property in the event there is a pending or granted request to continue the Surface Parking
Lot Lease as provided in paragraph K, above), net of expenses of the transaction and the Trustee,
and with the approval of the Commission, the Trustee shall then be discharged, the Trust Agreement
terminated and the Trust that it creates dissolved (except in the event that there is a pending or
granted request to continue the Surface Parking Lot Lease as provided in paragraph K, above)
without the necessity for further action on the part of any person.

     W. MGM MIRAGE and its currently qualified subsidiaries shall have a continuing duty to
cooperate with the Commission and Division and to provide any and all information requested by the
Commission and Division relating to this Stipulation of Settlement and the Trust created hereunder
until the dissolution of the Trust. A failure to cooperate (which includes for these purposes a
violation of the terms of this Stipulation of Settlement or the Trust Agreement) with either the
Commission or Division (or both) may be considered in the context of any prospective application by
MGM MIRAGE (or any of its affiliates, subsidiaries or any natural person acting on behalf of any of
them) with the Commission (for a casino license or to be found qualified as a security holder of a
casino licensee or otherwise seek approval by the Commission under the Act or its regulations). In
addition, any such failure to cooperate may

-17-

 

result in a monetary fine and/or a finding by the Commission of non-cooperation and MGM MIRAGE
consents to the Commission’s jurisdiction regarding the foregoing. The Commission shall have
jurisdiction over MGM MIRAGE and each of its subsidiaries, and each of their respective directors,
officers and employees for the purpose of, and to the extent necessary for, the enforcement of this
Stipulation of Settlement and the related Trust Agreement.

     X. On the Effective Date, MGM MIRAGE shall put in the Trust the sum of $200,000.00 (the
“Regulatory Advisory Contribution”) to be used by the Commission and/or the Division to defray the
cost of professional advisor(s) that either or both of them may retain in their discretion in
connection with carrying out their regulatory oversight functions with respect to matters
pertaining to the Stipulation of Settlement, the Trust, or both. The Regulatory Advisory
Contribution is a non-refundable, one-time payment, and such payment is separate and distinct from
the Minimum Cash Balance, and thus such payment shall be separately accounted for. To the extent
that any part of the Regulatory Advisory Contribution remains after the termination of the Trust
under paragraph V above, any remainder shall be donated to Gamblers Anonymous®. The Division and
MGM MIRAGE hereby agree that the payment of the Regulatory Advisory Contribution shall neither be
construed nor is it intended by way of suggestion or implication to be a fine or penalty with
respect to the matters set forth by the Division in the Special Report or any other matter or
activity of MGM MIRAGE or any of its subsidiaries or affiliates.

     Y. MGM MIRAGE represents to the Commission and the Division that MGM MIRAGE has obtained any
and all third party consents necessary for MGM MIRAGE to execute this Stipulation of Settlement.

     Z. This Stipulation of Settlement concludes the reopened 2005 casino license renewal hearing
of MDDC and the casino license of MDDC shall remain in full force and effect to the extent
authorized in the Act notwithstanding any conduct of MGM MIRAGE, its subsidiaries, affiliates or
the principals of any of them.

-18-

 

     AA. This Stipulation of Settlement set forth herein above shall be final and binding upon the
parties only by approval thereof in total by the Commission (including, approval of the Stipulation
of Settlement, the Trust Agreement, the Second Amendment, the Long-Term Ground Leases (as amended),
the Surface Parking Lot Lease (as amended), the Alternate Parking Lease and that certain letter
agreement by and among MDDC, MAC and MGM MIRAGE to be dated as of the same date as the Commission’s
approval of this Stipulation of Settlement). If the Commission does not approve this Stipulation
of Settlement within thirty (30) days following its full execution by MGM MIRAGE and the Division,
this Stipulation of Settlement shall be null and void and of no further force or effect unless
otherwise extended upon the election of MGM MIRAGE and the Division.

     BB. This Stipulation of Settlement shall be null and void and of no further force and effect,
and the Trust Agreement and the Trust that it creates shall be immediately terminated, without the
necessity for further action on the part of any person, in the event that the Commission revokes or
otherwise rescinds any necessary waivers from the qualification requirement pursuant to the Act
(and without limitation N.J.S.A. 5:12-85(d)) for MGM MIRAGE and each of its subsidiaries
and affiliates (including, but not limited to, MAC, MRI and Tracinda Corporation), and each of
their respective directors, officers and employees to no longer be in a status that requires any of
them to be qualified as a holding company or intermediary company (as the case may be), or to be
qualified, licensed or registered in any other capacity under the Act at any time while the Trust
Agreement is in effect as provided for in paragraph O above and thus requires MGM MIRAGE and/or any
of its subsidiaries and/or affiliates (including, but not limited to, MAC, MRI and Tracinda
Corporation), and/or any of their respective directors, officers and/or employees to be qualified
as a holding company or intermediary company (as the case may be), or to be qualified, licensed or
registered in any other capacity under the Act.

     CC. To the extent applicable, Boyd, BAC, MDDH and MDDC join in and agree to be bound by the
terms of paragraph 14 of the Trust Agreement.

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[SIGNATURES ON NEXT PAGE]

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	 	State of New Jersey, Department

of Law and Public Safety,

Division of Gaming Enforcement

 	 
	Dated: March 11, 2010 	By:  	/s/ George N. Rover
 	 
	 	 	George N. Rover 	 
	 	 	Assistant Attorney General 	 
	 
	 	 	 
	Dated: March 11, 2010 	By:  	/s/ Anthony J Zarrillo, Jr.
 	 
	 	 	Anthony J. Zarrillo, Jr. 	 
	 	 	Assistant Attorney General 	 
	 
	 	Fox Rothschild LLP

 	 
	Dated: March 11, 2010 	By:  	/s/ Nicholas Casiello, Jr.
 	 
	 
	 	 	 
	Dated: March 11, 2010 	By:  	/s/ Patrick Madamba, Jr.
 	 
	 	 	Nicholas Casiello, Jr., Esquire 	 
	 	 	Patrick Madamba, Jr., Esquire
 Attorneys for MGM MIRAGE 	 
	 
	 	Sterns & Weinroth, P.C.

 	 
	Dated: March 11, 2010 	By:  	/s/ Paul M. O'Gara
 	 
	 	 	Paul M. O'Gara, Esquire 	 
	 	 	Attorneys for Boyd Gaming Corporation, Boyd
Atlantic City, Inc., Marina District
Development Holding Co., LLC and Marina
District Development Company, LLC

(Joinder as to paragraphs Z and CC only) 	 
	 

-21-

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