Document:

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                                                                  Exhibit 10.7

                                LETTER AGREEMENT

August 31, 2000

Harrah's Entertainment, Inc.
5100 West Sahara, Avenue, Suite 200
Las Vegas, Nevada 89146

RE:      Escrow Agreement Dated as of February 6, 1990, as
         Amended October 29, 1993, June 7, 1995, July 18,
         1997, October 30, 1997, and April 26, 1997

As you know Harrah's Entertainment, Inc.(the "Company") has recently
appointed Wells Fargo Bank Minnesota, N.A,. ("Escrow Agent") to act as Escrow
Agent of the above-referenced Escrow Agreement established by the Company in
connection with nonqualified deferred compensation plans established for the
benefit of persons currently and/or formerly employed by the Company or its
affiliates (the "Escrow Agreement"). Escrow Agent hereby accepts such
appointment, effective as of the date of this letter and hereby authorizes
the transfer of all assets of the Escrow Fund from the prior escrow agent as
soon as administratively feasible. In consideration for Escrow Agent acting
in its capacity and notwithstanding anything in the Escrow Agreement to the
contrary, both parties acknowledge and agree as follows:

Income, ICA, FUTA and other Taxes.

1.       The Escrow Agent shall, if directed by Company or if required by the
Escrow Agreement, make distribution payments from the Escrow Fund directly to
beneficiaries.

2.       (a) Payments Directed by Company. As an inducement to Escrow Agent
to make such distributions, Company will be responsible for satisfying all
federal, state or local tax reporting obligations that may be required with
respect to the payment of benefits, the performance of services to which the
benefits relate, and the vesting of benefits pursuant to the terms of the
Plans or Escrow Agreement. The amount withheld and time at which such taxes
are considered to be due and payable shall be determined by the Company.
Company will provide the Escrow Agent with instructions regarding the
appropriate amount of

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withholding and the Escrow Agent will not be liable for damages for
withholding in accordance with such instructions. Escrow Agent will pay
amounts withheld to Company for remittance by Company to the appropriate
taxing authorities. If the Escrow Agent does not receive such instructions
the Escrow Agent will make a written request to Company to provide the
instructions. If the instructions are not received by the Escrow Agent with
ten business days after the date on which the Escrow Agent makes such written
request, the Escrow Agent is not required to withhold any amount from the
payment.

         (b)      Payments Required by Escrow Agreement.  For these
distributions, the Escrow Agent will promptly make a written request to the
Company for withholding instructions. If the Company does not give
withholding instructions to Escrow Agent within five business days after
receiving this request, then Escrow Agent will withhold and remit to
appropriate authorities such withholding taxes as Escrow Agent deems are
necessary. The Company, not the Escrow Agent, will be responsible for FICA or
FUTA taxes that apply unless the Escrow Agent is advised by its counsel or
required by court order to apply these taxes. The Escrow Agent will promptly
report any payments and withholdings to the Company. The Company will then be
responsible for all reporting obligations to governmental authorities and
will hold the Escrow Agent harmless from such reporting obligations and from
any withholding decisions made by Escrow Agent under this subparagraph (b).

3.       The Escrow Agent has no responsibility to advise the Company as to the
         taxability or deductibility of contributions to or distributions from
         the Escrow Fund, or gains or losses thereon, whether with regard to
         income, FICA, FUTA, or other taxes, and Company acknowledges that it
         has not and will not rely on Escrow Agent for such purposes.

Escrow Agent's Protection.

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1.       The Escrow Agent does not warrant and shall not be liable for any
tax consequences associated with the Escrow Fun or the Plans.

2.       The Escrow Agent shall have no duty to determine or inquire whether
any contributions to this Escrow Fund are in compliance with the Plans or the
Escrow Agreement, or to compute any amount to be paid to the Escrow Agent;
nor shall the Escrow Agent be responsible for the collection or adequacy of
any contributions to the Escrow Fund or for the adequacy of the Escrow Fund
to meet and discharge liabilities to Participants and their Beneficiaries
under the Plan or to other creditors of the Company.

3.       Company acknowledges its responsibility to report annual income of the
         Escrow Fund on its corporate returns, notwithstanding whether it has
         made arrangements to receive annual Forms 1041 from the Escrow Agent.

4.       In any judicial proceeding between the Company and the Escrow Agent
         with respect to the Escrow Agent or the Escrow Fund, the Escrow Agent
         and the Company shall be the only necessary parties; and no participant
         or beneficiary shall be entitled to any notice of process. A final
         judgment in any such proceeding shall be binding upon the parties to
         the proceeding and al Participants and beneficiaries.

5.       If all or any part of the Escrow Fund is at any time attached,
         garnished, or levied upon by a court order which is in full force and
         effect and has not been stayed, or in case the payment assignment
         transfer, conveyance or delivery of any such property shall be stayed
         or enjoined by any court order which is in full force and effect and
         has not been stayed or in case an order, judgment or decree that is in
         full force and effect and has not been stayed shall be made or entered
         by a court affecting such property or any part thereof, then and in any
         of such events the Escrow Agent is authorized, in its sole discretion,
         to rely upon and comply with any such order,
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         judgment or decree while it is in full force and has not been stayed,
         and it shall not be liable to the Company or any Participant by reason
         of such compliance even though such order, judgment or decree shall
         subsequently may be reversed, modified, annulled set aside or vacated.

This agreement shall continue throughout the Escrow Agent's term as Escrow
Agent of the Escrow Agreement unless otherwise mutually agreed upon by the
parties. In the event this agreement is breached resulting in litigation
between the parties, a party who is not in breach of this agreement or the
Escrow Agreement shall be entitled to reimbursement from the breaching party
that prevails in such litigation for all reasonable costs incurred in
enforcing this agreement, including but not limited to reasonable attorney
fees.

Sincerely,

WELLS FARGO BANK MINNESOTA, N. A., Escrow Agent

/s/ KRISTY PEREZ
--------------------------------
Kristy Perez, Vice President

Received and agreed to this 8th day of September, 2000.

HARRAH'S ENTERTAINMENT, INC.

By:  /s/ ELAINE LO
     ----------------------------
     Elaine Lo
     Its Vice President<PAGE>

                                                                    Exhibit 10.8

               Amendment Dated as of April 26, 2000 to

              Escrow Agreement Dated February 6, 1990,

          As Amended, Between Harrah's Entertainment, Inc.

                      And Bank of America, N.A.

      The next to last sentence of Section 2.01(e) of the Escrow
Agreement is amended to read as follows:

      "Notwithstanding the foregoing, any actuary or certified
public accountant or MCG Northwest, LLC or a successor thereto that
provides an opinion or advice in connection with the funding
requirements of this Escrow Agreement shall assume, for purposes of
calculating EDCP benefits, that all EDCP Participants (other than
those who have already terminated and are receiving the Termination
Rate) will be entitled to their Retirement Account balances as of
the date of the calculation. Notwithstanding anything in this Escrow
Agreement to the contrary, for the purpose of funding EDCP accounts,
this Escrow Agreement shall be deemed sufficiently funded at any
point in time if the Escrow Fund has sufficient assets at that time
to pay the total amount of all EDCP account balances (the Retirement
Rate balances) plus the Termination Rate balances of terminated
employees who are receiving the Termination Rate; provided, however,
that immediately prior to a Change in Control (as this term is
defined in the Severance Agreements of Corporate Senior Vice
Presidents) of Harrah's Entertainment, Inc., the Company shall
calculate and increase the funding of the Escrow Fund, if necessary,
so that the present value of all EDCP accounts will, prior to the
Change in Control, be fully funded based on the following required
assumptions:

      (1) All EDCP Participants will receive the applicable
      Retirement Rate for their EDCP accounts (except for those who
      have terminated employment and are receiving the Termination
      Rate in which case it will be assumed that they continue to
      receive this rate).

      (2) Distribution of Participants' accounts (in addition to
      those already in distribution) will commence three years after
      the Change in Control or age 55 if earlier based on the
      assumption Participants will terminate employment at that
      time.

      (3) Distributions will occur according to the payment
      schedules elected by Participants in their deferral
      participation agreements.

      (4) The discount rate used at the time this funding is
      calculated to determine any increase in funding will be the
      Ten Year Treasury Note Rate on the business day before the

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      funding amount is calculated minus 1%. The Ten Year Treasury
      Note Rate will be the rate shown in the Credit Markets Column
      of The Wall Street Journal under "Treasury 10+ yr" or if no
      longer so published, in another publication or report that
      provides this rate.

      The Company may rely on the opinion of any actuary, a
certified public accountant, an investment adviser, or MCG
Northwest, LLC or a successor thereto in making this calculation. If
there is any disagreement concerning these calculations including
the Ten Year Treasury Note Rate, MCG Northwest, LLC or a successor
thereto or another consultant as identified by the Company's Chief
Executive Officer will make the final decision. Nothing herein will
prevent the Company from providing additional funding if the Company
decides additional funding at any time is appropriate to fully fund
the Escrow and nothing herein will negate the requirement for
funding DCP accounts of EDCP Participants at their account balances
or funding other obligations required to be funded pursuant to this
Escrow Agreement."

      This amendment is subject to the consent of Participants under
the Escrow Agreement having at least 50% of the total amount of all
accounts which are accounted for under the Escrow Agreement with
respect to benefits allocable to them.

AGREED:

Harrah's Entertainment, Inc.

By: /s/ ELAINE LO
    ---------------
Title: VP, Compensation and Benefits

Executed and Agreed to By
Wells Fargo Bank Minnesota, N.A.,
Successor to
Bank of America, N.A. as
Escrow Agent:

By: /s/ KRISTY PEREZ
   -----------------
Title: Vice President

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