Document:

Exhibit 10.1

 

	
   

  	
  Published Deal CUSIP Number:

  
	
   

  	
  Published Revolver CUSIP Number:

  

 

EXECUTION

 

THIRD AMENDED AND RESTATED CREDIT AGREEMENT

Dated as of April 25, 2006

among

HARRAH’S ENTERTAINMENT, INC.

as Guarantor

HARRAH’S OPERATING COMPANY, INC. 

as Borrower 

The Lenders, Syndication Agent and Co-Documentation Agents Herein Named

 

and

 

BANK OF AMERICA, N.A.,

 

as Administrative Agent

 

 

BANC OF AMERICA SECURITIES LLC

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

Joint Lead Arrangers and Joint Book Managers

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1
  DEFINITIONS AND ACCOUNTING TERMS

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined
  Terms

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.2

  	
  Use of
  Defined Terms

  	
  29

  
	
   

  	
   

  	
   

  
	
  1.3

  	
  Accounting
  Terms

  	
  29

  
	
   

  	
   

  	
   

  
	
  1.4

  	
  Rounding

  	
  29

  
	
   

  	
   

  	
   

  
	
  1.5

  	
  Exhibits
  and Schedules

  	
  30

  
	
   

  	
   

  	
   

  
	
  1.6

  	
  Other
  Interpretive Provisions

  	
  30

  
	
   

  	
   

  	
   

  
	
  1.7

  	
  Letter of
  Credit Amounts

  	
  31

  
	
   

  	
   

  	
   

  
	
  1.8

  	
  Times of
  Day

  	
  31

  
	
   

  	
   

  	
   

  
	
  1.9

  	
  Exchange
  Rates

  	
  31

  
	
   

  	
   

  	
   

  
	
  1.10

  	
  Additional
  L/C Alternative Currencies

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2
  LOANS AND LETTERS OF CREDIT

  	
  32

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Committed
  Loans - General

  	
  32

  
	
   

  	
   

  	
   

  
	
  2.2

  	
  Base Rate
  Loans

  	
  33

  
	
   

  	
   

  	
   

  
	
  2.3

  	
  Eurodollar
  Rate Loans

  	
  33

  
	
   

  	
   

  	
   

  
	
  2.4

  	
  Letters
  of Credit

  	
  34

  
	
   

  	
   

  	
   

  
	
  2.5

  	
  Swing
  Lines

  	
  39

  
	
   

  	
   

  	
   

  
	
  2.6

  	
  Voluntary
  Increase to the Aggregate Commitments

  	
  41

  
	
   

  	
   

  	
   

  
	
  2.7

  	
  Voluntary
  Reduction of the Aggregate Commitments

  	
  42

  
	
   

  	
   

  	
   

  
	
  2.8

  	
  Optional
  Termination of Aggregate Commitments

  	
  42

  
	
   

  	
   

  	
   

  
	
  2.9

  	
  Additional
  Borrowers

  	
  43

  
	
   

  	
   

  	
   

  
	
  2.10

  	
  Unrestricted
  Subsidiaries

  	
  43

  
	
   

  	
   

  	
   

  
	
  2.11

  	
  Payment
  Presumptions by Administrative Agent

  	
  44

  
	
   

  	
   

  	
   

  
	
  2.12

  	
  Sharing
  of Payments by Lenders

  	
  44

  

 

i

 

	
  ARTICLE 3
  PAYMENTS AND FEES

  	
  46

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Principal
  and Interest

  	
  46

  
	
   

  	
   

  	
   

  
	
  3.2

  	
  Arrangement
  Fee

  	
  47

  
	
   

  	
   

  	
   

  
	
  3.3

  	
  Upfront
  Fees; Extension Fees

  	
  47

  
	
   

  	
   

  	
   

  
	
  3.4

  	
  Facility
  Fees

  	
  47

  
	
   

  	
   

  	
   

  
	
  3.5

  	
  Letter of
  Credit Fees

  	
  48

  
	
   

  	
   

  	
   

  
	
  3.6

  	
  Agency
  Fees

  	
  48

  
	
   

  	
   

  	
   

  
	
  3.7

  	
  Increased
  Commitment Costs

  	
  48

  
	
   

  	
   

  	
   

  
	
  3.8

  	
  Eurodollar
  Costs and Related Matters

  	
  48

  
	
   

  	
   

  	
   

  
	
  3.9

  	
  Default
  Rate

  	
  51

  
	
   

  	
   

  	
   

  
	
  3.10

  	
  Computation
  of Interest and Fees

  	
  52

  
	
   

  	
   

  	
   

  
	
  3.11

  	
  Non-Business
  Days

  	
  52

  
	
   

  	
   

  	
   

  
	
  3.12

  	
  Manner
  and Treatment of Payments

  	
  52

  
	
   

  	
   

  	
   

  
	
  3.13

  	
  Funding
  Sources

  	
  53

  
	
   

  	
   

  	
   

  
	
  3.14

  	
  Failure
  to Charge Not Subsequent Waiver

  	
  53

  
	
   

  	
   

  	
   

  
	
  3.15

  	
  Fee
  Determination Detail

  	
  53

  
	
   

  	
   

  	
   

  
	
  3.16

  	
  Survivability

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4
  REPRESENTATIONS AND WARRANTIES

  	
  54

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Existence
  and Qualification; Power; Compliance With Laws

  	
  54

  
	
   

  	
   

  	
   

  
	
  4.2

  	
  Authority;
  Compliance With Other Agreements and Instruments and Government Regulations

  	
  54

  
	
   

  	
   

  	
   

  
	
  4.3

  	
  No
  Governmental Approvals Required

  	
  55

  
	
   

  	
   

  	
   

  
	
  4.4

  	
  Significant
  Subsidiaries

  	
  55

  
	
   

  	
   

  	
   

  
	
  4.5

  	
  Financial
  Statements

  	
  55

  
	
   

  	
   

  	
   

  
	
  4.6

  	
  No Other
  Liabilities; No Material Adverse Effect

  	
  55

  
	
   

  	
   

  	
   

  
	
  4.7

  	
  Title to
  Property

  	
  55

  
	
   

  	
   

  	
   

  
	
  4.8

  	
  Litigation

  	
  55

  

 

ii

 

	
  4.9

  	
  Binding
  Obligations

  	
  56

  
	
   

  	
   

  	
   

  
	
  4.10

  	
  No
  Default

  	
  56

  
	
   

  	
   

  	
   

  
	
  4.11

  	
  ERISA

  	
  56

  
	
   

  	
   

  	
   

  
	
  4.12

  	
  Regulations T,
  U and X; Investment Company Act

  	
  56

  
	
   

  	
   

  	
   

  
	
  4.13

  	
  Disclosure

  	
  56

  
	
   

  	
   

  	
   

  
	
  4.14

  	
  Tax
  Liability

  	
  57

  
	
   

  	
   

  	
   

  
	
  4.15

  	
  Projections

  	
  57

  
	
   

  	
   

  	
   

  
	
  4.16

  	
  Hazardous
  Materials

  	
  57

  
	
   

  	
   

  	
   

  
	
  4.17

  	
  Gaming
  Laws

  	
  57

  
	
   

  	
   

  	
   

  
	
  4.18

  	
  Solvency

  	
  57

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5
  AFFIRMATIVE COVENANTS

  	
  58

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Preservation
  of Existence

  	
  58

  
	
   

  	
   

  	
   

  
	
  5.2

  	
  Maintenance
  of Properties

  	
  58

  
	
   

  	
   

  	
   

  
	
  5.3

  	
  Maintenance
  of Insurance

  	
  58

  
	
   

  	
   

  	
   

  
	
  5.4

  	
  Compliance
  With Laws

  	
  58

  
	
   

  	
   

  	
   

  
	
  5.5

  	
  Inspection
  Rights

  	
  58

  
	
   

  	
   

  	
   

  
	
  5.6

  	
  Keeping
  of Records and Books of Account

  	
  59

  
	
   

  	
   

  	
   

  
	
  5.7

  	
  Use of
  Proceeds

  	
  59

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6
  NEGATIVE COVENANTS

  	
  60

  
	
   

  	
   

  	
   

  
	
  6.1

  	
  Consolidations,
  Mergers and Sales of Assets

  	
  60

  
	
   

  	
   

  	
   

  
	
  6.2

  	
  Hostile
  Tender Offers

  	
  60

  
	
   

  	
   

  	
   

  
	
  6.3

  	
  Change in
  Nature of Business

  	
  60

  
	
   

  	
   

  	
   

  
	
  6.4

  	
  Liens,
  Negative Pledges, Sale Leasebacks and Rights of Others

  	
  60

  
	
   

  	
   

  	
   

  
	
  6.5

  	
  Total
  Debt Ratio

  	
  62

  
	
   

  	
   

  	
   

  
	
  6.6

  	
  Interest
  Coverage Ratio

  	
  62

  
	
   

  	
   

  	
   

  
	
  6.7

  	
  Restricted
  Subsidiary Indebtedness

  	
  62

  

 

iii

 

	
  ARTICLE 7
  INFORMATION AND REPORTING REQUIREMENTS

  	
  64

  
	
   

  	
   

  	
   

  
	
  7.1

  	
  Financial
  and Business Information

  	
  64

  
	
   

  	
   

  	
   

  
	
  7.2

  	
  Compliance
  Certificates

  	
  66

  
	
   

  	
   

  	
   

  
	
  7.3

  	
  Borrower
  Materials

  	
  66

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8
  CONDITIONS

  	
  67

  
	
   

  	
   

  	
   

  
	
  8.1

  	
  Initial
  Advances, Etc.

  	
  67

  
	
   

  	
   

  	
   

  
	
  8.2

  	
  Any
  Increasing Advance, Etc.

  	
  68

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9
  EVENTS OF DEFAULT AND REMEDIES UPON EVENT OF DEFAULT

  	
  70

  
	
   

  	
   

  	
   

  
	
  9.1

  	
  Events of
  Default

  	
  70

  
	
   

  	
   

  	
   

  
	
  9.2

  	
  Remedies
  Upon Event of Default

  	
  72

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10
  ADMINISTRATIVE AGENT

  	
  74

  
	
   

  	
   

  	
   

  
	
  10.1

  	
  Appointment
  and Authority

  	
  74

  
	
   

  	
   

  	
   

  
	
  10.2

  	
  Rights as
  a Lender

  	
  74

  
	
   

  	
   

  	
   

  
	
  10.3

  	
  Exculpatory
  Provisions

  	
  74

  
	
   

  	
   

  	
   

  
	
  10.4

  	
  Reliance
  by Administrative Agent

  	
  75

  
	
   

  	
   

  	
   

  
	
  10.5

  	
  Delegation
  of Duties

  	
  75

  
	
   

  	
   

  	
   

  
	
  10.6

  	
  Resignation
  by Administrative Agent

  	
  75

  
	
   

  	
   

  	
   

  
	
  10.7

  	
  Non-Reliance
  on Administrative Agent and Other Lenders

  	
  77

  
	
   

  	
   

  	
   

  
	
  10.8

  	
  No Other
  Duties, Etc

  	
  77

  
	
   

  	
   

  	
   

  
	
  10.9

  	
  Administrative
  Agent May File Proofs of Claim

  	
  77

  
	
   

  	
   

  	
   

  
	
  10.10

  	
  No
  Obligations of Parent or Borrowers

  	
  77

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11
  MISCELLANEOUS

  	
  79

  
	
   

  	
   

  	
   

  
	
  11.1

  	
  Cumulative
  Remedies; No Waiver

  	
  79

  
	
   

  	
   

  	
   

  
	
  11.2

  	
  Amendments;
  Consents

  	
  79

  
	
   

  	
   

  	
   

  
	
  11.3

  	
  Costs,
  Expenses and Taxes

  	
  80

  
	
   

  	
   

  	
   

  
	
  11.4

  	
  Obligations
  of Lenders Several

  	
  80

  

 

iv

 

	
  11.5

  	
  Survival
  of Representations and Warranties

  	
  81

  
	
   

  	
   

  	
   

  
	
  11.6

  	
  Notices;
  Effectiveness; Electronic Communication

  	
  81

  
	
   

  	
   

  	
   

  
	
  11.7

  	
  Execution
  of Loan Documents

  	
  82

  
	
   

  	
   

  	
   

  
	
  11.8

  	
  Successors
  and Assigns

  	
  83

  
	
   

  	
   

  	
   

  
	
  11.9

  	
  Sharing
  of Setoffs

  	
  87

  
	
   

  	
   

  	
   

  
	
  11.10

  	
  Indemnity
  by Parent and Borrowers; Waiver of Consequential Damages, Etc.

  	
  88

  
	
   

  	
   

  	
   

  
	
  11.11

  	
  Nonliability
  of the Lenders

  	
  89

  
	
   

  	
   

  	
   

  
	
  11.12

  	
  No Third
  Parties Benefited

  	
  90

  
	
   

  	
   

  	
   

  
	
  11.13

  	
  Treatment
  of Certain Information; Confidentiality

  	
  90

  
	
   

  	
   

  	
   

  
	
  11.14

  	
  Removal
  of a Lender

  	
  91

  
	
   

  	
   

  	
   

  
	
  11.15

  	
  Further
  Assurances

  	
  92

  
	
   

  	
   

  	
   

  
	
  11.16

  	
  Integration

  	
  92

  
	
   

  	
   

  	
   

  
	
  11.17

  	
  Governing
  Law, Jurisdiction, Etc.

  	
  92

  
	
   

  	
   

  	
   

  
	
  11.18

  	
  California
  Judicial Reference

  	
  92

  
	
   

  	
   

  	
   

  
	
  11.19

  	
  Severability
  of Provisions

  	
  93

  
	
   

  	
   

  	
   

  
	
  11.20

  	
  Headings

  	
  93

  
	
   

  	
   

  	
   

  
	
  11.21

  	
  Time of
  the Essence

  	
  93

  
	
   

  	
   

  	
   

  
	
  11.22

  	
  Foreign
  Lenders and Participants

  	
  93

  
	
   

  	
   

  	
   

  
	
  11.23

  	
  Gaming
  Boards

  	
  93

  
	
   

  	
   

  	
   

  
	
  11.24

  	
  Nature of
  the Borrowers’ Obligations

  	
  93

  
	
   

  	
   

  	
   

  
	
  11.25

  	
  Designated
  Senior Debt

  	
  94

  
	
   

  	
   

  	
   

  
	
  11.26

  	
  Gaming
  Regulations

  	
  94

  
	
   

  	
   

  	
   

  
	
  11.27

  	
  Waiver of
  Jury Trial

  	
  94

  
	
   

  	
   

  	
   

  
	
  11.28

  	
  USA
  PATRIOT Act Notice

  	
  94

  
	
   

  	
   

  	
   

  
	
  11.29

  	
  Payments
  Set Aside

  	
  94

  
	
   

  	
   

  	
   

  
	
  11.30

  	
  Purported
  Oral Amendments

  	
  95

  

 

v

 

	
  11.31

  	
  No
  Advisory or Fiduciary Responsibility

  	
  95

  

 

vi

 

THIRD AMENDED AND
RESTATED CREDIT AGREEMENT

 

This
THIRD AMENDED AND RESTATED CREDIT AGREEMENT (“Agreement”), dated as of April 25,
2006, is entered into among Harrah’s Operating Company, Inc., a Delaware
corporation (“Company”), each of the Restricted Subsidiaries that
becomes a borrower pursuant to Section 2.9 hereof (the Company and each
such borrower are individually a “Borrower” and collectively the “Borrowers”),
as Borrowers, Harrah’s Entertainment, Inc., a Delaware corporation (the “Parent”),
as Guarantor, Bank of America, N.A. and each lender whose name is set forth on
the signature pages of this Agreement and each other lender which may hereafter
become a party to this Agreement pursuant to Section 11.8 (collectively,
the “Lenders” and individually, a “Lender”), Deutsche Bank Trust
Company Americas, as Syndication Agent, Citicorp USA, Inc., JPMorgan Chase
Bank, Wells Fargo Bank, N.A., and The Royal Bank of Scotland, PLC as
Co-Documentation Agents, and Bank of America, N.A., as
Administrative Agent. While not party to this Agreement, Banc of America
Securities LLC and Wells Fargo Bank, National Association have served as Joint
Lead Arrangers and Joint Book Managers. The parties hereby agree with reference
to the following facts:

 

RECITALS

 

A.                                   Pursuant to the Existing Credit Agreement
referred to below, certain of the Lenders provide credit facilities to Company
in an aggregate principal amount of $4,000,000,000.

 

B.                                     Parent, the Company, the Administrative
Agent and the Lenders now desire to amend and restate the Existing Credit
Agreement in its entirety by this Agreement and to thereby provide, inter alia (and subject to the terms
and conditions set forth herein), for an extension of the Maturity Date,
revisions to the pricing provisions, changes to the Total Debt Ratio covenant,
and the ability for Parent to form Unrestricted Subsidiaries.

 

C.                                     Those of the Lenders party to the
Existing Credit Agreement which do not desire to continue as Lenders hereunder
following the Effective Date have delivered an Exit Agreement to the
Administrative Agent and the Company evidencing their consent to the
termination of their status as Lenders concurrently with the Effective Date. Certain
additional Lenders will, concurrently with the Effective Date, become parties
hereto as of the Effective Date by signing this Agreement.

 

NOW,
THEREFORE, in consideration of the mutual covenants and agreements herein
contained, the parties hereto covenant and agree as follows:

 

ARTICLE 1

DEFINITIONS AND
ACCOUNTING TERMS

 

1.1                                 Defined Terms. As used in this Agreement, the following terms shall
have the meanings set forth below:

 

“Adjusted EBITDA” means, for any period, EBITDA
plus Available Unrestricted EBITDA, provided that Available
Unrestricted EBITDA shall not exceed 15% of Adjusted EBITDA for any period.

 

1

 

“Administrative Agent” means Bank of America,
when acting in its capacity as the Administrative Agent under any of the Loan
Documents, or any successor Administrative Agent.

 

“Administrative Agent’s Office” means the
Administrative Agent’s address as set forth on the signature pages of this
Agreement, or such other address as the Administrative Agent hereafter may designate
by written notice to Borrowers and the Lenders.

 

“Administrative Questionnaire” means an
Administrative Questionnaire in a form supplied by the Administrative
Agent.

 

“Advance” means any advance made or to be made
by any Lender to a Borrower as provided in Article 2, and includes each
Base Rate Advance, Eurodollar Rate Advance, Committed Advance and Swing Line
Advance.

 

“Affiliate” means, as to any Person, any other
Person which directly or indirectly controls, or is under common control with,
or is controlled by, such Person. As used in this definition, “control” (and
the correlative terms, “controlled by” and “under common control with”) shall
mean possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of securities or
partnership or other ownership interests, by contract or otherwise); provided
that, in any event, any Person that owns, directly or indirectly, 5% or more of
the securities having ordinary voting power for the election of directors or
other governing body of a corporation that has more than 100 record holders of
such securities, or 5% or more of the partnership or other ownership interests
of any other Person that has more than 100 record holders of such interests,
will be deemed to control such corporation or other Person.

 

“Aggregate Commitments” means the Commitments
of all of the Lenders. As of the date hereof, the Aggregate Commitments are
$4,000,000,000.

 

“Aggregate Sublimit” means with respect to each
Restricted Subsidiary which hereafter becomes a Borrower, such aggregate amount
as shall be established in accordance with Section 2.9.

 

“Agreement” means this Credit Agreement, either
as originally executed or as it may from time to time be supplemented,
modified, amended, restated or extended.

 

“Anticipated Synergies” means anticipated
synergies from the combination of Caesars with Parent in an amount, for the
Fiscal Quarter ending June 30, 2006, equal to $20,000,000.

 

“Applicable Percentage” means with respect to
any Lender at any time, the percentage (carried out to the ninth decimal place)
of the Aggregate Commitments held by that Lender at such time. If the
commitment of each Lender to make Loans and the obligation of the Issuing
Lenders to make L/C Credit Extensions have been terminated pursuant to Section 9.2
or if the Commitments have expired, then the Applicable Percentage of each
Lender shall be determined based on the Applicable Percentage of such Lender
most recently in effect, giving effect to any subsequent assignments. The
initial Applicable Percentage of each Lender is set forth opposite the name of
such Lender on Schedule 1.1 or in the Assignment and Assumption pursuant
to which such Lender becomes a party hereto, as applicable.

 

“Applicable Rates” means, as of each date of
determination, the following percentages per annum, based upon the then
prevailing Pricing Level:

 

2

 

	
  Pricing Level

  	
   

  	
  Base Rate Margin

  	
   

  	
  Facility Fee

  	
   

  	
  Letter of Credit Fee

  Eurodollar Margin

  	
   

  
	
  I

  	
   

  	
   

  	
  0.000

  	
  %

  	
  0.075

  	
  %

  	
  0.175

  	
  %

  
	
  II

  	
   

  	
   

  	
  0.000

  	
  %

  	
  0.100

  	
  %

  	
  0.250

  	
  %

  
	
  III

  	
   

  	
   

  	
  0.000

  	
  %

  	
  0.125

  	
  %

  	
  0.325

  	
  %

  
	
  IV

  	
   

  	
   

  	
  0.000

  	
  %

  	
  0.150

  	
  %

  	
  0.475

  	
  %

  
	
  V

  	
   

  	
   

  	
  0.000

  	
  %

  	
  0.175

  	
  %

  	
  0.625

  	
  %

  
	
  VI

  	
   

  	
   

  	
  0.015

  	
  %

  	
  0.225

  	
  %

  	
  0.825

  	
  %

  

 

“Approved Fund” means any Person (other than a
natural person) that is (or will be) engaged in making, purchasing, holding or
otherwise investing in commercial loans and similar extensions of credit in the
ordinary course of its business, and that is administered or managed by:

 

(a)                                  a Lender;

 

(b)                                 an Affiliate of a Lender; or

 

(c)                                  an entity or an Affiliate of an entity
that administers or manages a Lender.

 

“Assignee Group” means two or more Eligible
Assignees that are Affiliates of one another or two or more Approved Funds
managed by the same investment advisor.

 

“Assignment Agreement” means an Assignment and
Assumption Agreement substantially in the form of Exhibit A.

 

“Auto-Reinstatement Letter of Credit” has the
meaning set forth for that term in Section 2.4(n).

 

“Available Unrestricted EBITDA” means, for any
period, that portion of Unrestricted EBITDA of any Unrestricted Subsidiaries
for that period which may legally be distributed in Cash to Parent and the
Restricted Subsidiaries during that fiscal period in accordance with applicable
Law and subject to any Contractual Obligations (including credit documents)
which are binding upon such Unrestricted Subsidiaries or their respective
Properties, but which (a) is not included in EBITDA, (b) has not been
received in Cash by Parent and the Restricted Subsidiaries (either by way of a
distribution or by means of a loan), and (c) represents the net amount
which would have been received by Parent and the Restricted Subsidiaries had
such Unrestricted EBITDA actually been distributed to them.

 

“Bank of America” means Bank of America, N.A.
and its successors.

 

“Base Rate” means for any day a fluctuating
rate per annum equal to the higher of:

 

(a)                                  the Federal Funds Rate plus 1/2 of 1%;
and

 

(b)                                 the rate of interest in effect for such
day as publicly announced from time to time by Bank of America as its “prime
rate.”

 

The “prime rate” is a rate set by Bank of America
based upon various factors including Bank of America’s costs and desired
return, general economic conditions and other factors, and is used as

 

3

 

a reference point for pricing some loans, which may be
priced at, above, or below such announced rate. Any change in such rate
announced by Bank of America shall take effect at the opening of business on
the day specified in the public announcement of such change.

 

“Base Rate Advance” and “Base Rate Loan”
mean, respectively, a Committed Advance or a Committed Loan made hereunder and
specified to be a Base Rate Advance or Loan in accordance with Article 2.

 

“Base Rate Margin” means, as of each date of
determination, the relevant interest rate margin set forth in the definition of
Applicable Rates.

 

“Borrower Materials” has the meaning set forth
for that term in Section 7.3.

 

“Borrowers” means, collectively, Company and
each Wholly-Owned Subsidiary which is hereafter designated as a Borrower in
accordance with Section 2.9, and their respective successors and permitted
assigns.

 

“Borrowing” means a borrowing consisting of
Committed Loans or Swing Line Advances, as the context may require.

 

“Business Day” means any Monday, Tuesday,
Wednesday, Thursday or Friday, other than a day on which commercial banks are
authorized or required to be closed in Dallas, Texas or New York.

 

“Caesars” means Caesars Entertainment, Inc.,
a Delaware corporation which has been merged with and into Parent, with Parent
the survivor.

 

“Capital Lease Obligations” means all monetary
obligations of a Person under any leasing or similar arrangement which, in
accordance with Generally Accepted Accounting Principles, is classified as a
capital lease.

 

“Cash” means, when used in connection with any
Person, all monetary and non-monetary items owned by that Person that are
treated as Cash in accordance with Generally Accepted Accounting Principles,
consistently applied.

 

“Cash Collateralize” means to pledge and
deposit with or deliver to the Administrative Agent, for the benefit of the
Issuing Lenders and the Lenders, as collateral for the L/C Obligations, Cash or
deposit account balances pursuant to documentation in form and substance
satisfactory to the Administrative Agent (which documents are hereby consented
to by the Issuing Lenders and the Lenders).

 

“Certificate of a Responsible Official” means a
certificate signed by a Responsible Official of the Person providing the
certificate.

 

“Change in Control” means the occurrence of a
Rating Decline in connection with any of the following events (or, if the Debt
Ratings are not then Investment Grade, any further decline in the Debt Ratings):

 

(a)                                  upon any merger or consolidation of
Parent with or into any person or any sale, transfer or other conveyance,
whether direct or indirect, of all or substantially all of the assets of
Parent, on a consolidated basis, in one transaction or a series of

 

4

 

related transactions, if, immediately after giving
effect to such transaction, any person or group of persons (within the meaning
of Section 13 or 14 of the Securities Exchange Act of 1934, as amended) is
or becomes the beneficial owner (within the meaning of Rule 13d-3
promulgated by the Securities and Exchange Commission under said Act) of
securities representing a majority of the total voting power of the aggregate
outstanding securities of the transferee or surviving entity normally entitled
to vote in the election of directors, managers, or trustees, as applicable, of
the transferee or surviving entity;

 

(b)                                 when any person or group of persons
(within the meaning of Section 13 or 14 of the Securities Exchange Act of
1934, as amended) is or becomes the beneficial owner (within the meaning of Rule 13d-3
promulgated by the Securities and-Exchange Commission under said Act) of
securities representing a majority of total voting power of the aggregate outstanding
securities of Parent normally entitled to vote in the election of directors of
Parent;

 

(c)                                  when, during any period of 12 consecutive
calendar months, individuals who were directors of Parent on the first day of
such period (together with any new directors whose election by the board of
directors of Parent or whose nomination for election by the stockholders of
Parent was approved by a vote of a majority of the directors then still in
office who were either directors at the beginning of such period or whose
election or nomination for election was previously so approved) cease for any
reason to constitute a majority of the board of directors of Parent; or

 

(d)                                 the sale or disposition, whether directly
or indirectly, by Parent of all or substantially all of its assets.

 

“Change in Law” means the occurrence, after the
date of this Agreement, of any of the following:

 

(a)                                  the adoption or taking effect of any law,
rule, regulation or treaty;

 

(b)                                 any change in any law, rule, regulation
or treaty or in the administration, interpretation or application thereof by
any Governmental Agency; or

 

(c)                                  the making or issuance of any request,
guideline or directive (whether or not having the force of law) by any
Governmental Agency.

 

“Code” means the Internal Revenue Code of 1986,
as amended or replaced and as in effect from time to time.

 

“Commitment” means, as to each Lender, its
obligation to:

 

(a)                                  make Committed Advances to the Borrowers
pursuant to Section 2.1;

 

(b)                                 purchase participations in L/C
Obligations; and

 

(c)                                  purchase participations in Swing Line
Advances;

 

in each case, in an aggregate principal amount at any
one time outstanding not to exceed the amount set forth opposite such Lender’s
name on Schedule 1.1 or in the Assignment and

 

5

 

Assumption pursuant to which such Lender becomes a
party hereto, as applicable, as such amount may be adjusted from time to
time in accordance with this Agreement.

 

“Committed Advance” means any Advance made to a
Borrower by any Lender in accordance with its Applicable Percentage pursuant to
Section 2.1(a).

 

“Committed Advance Note” means any promissory
note made by the Company (or in the appropriate case, by each other Borrower)
to a  Lender evidencing the Committed
Advances under that Lender’s Commitment to the Company (or to that Borrower),
substantially in the form of Exhibit B, either as originally executed
or as the same may from time to time be supplemented, modified, amended,
renewed, extended or supplanted.

 

“Committed Loans” means the group of loans that
are comprised of Committed Advances.

 

“Company” means Harrah’s Operating Company, Inc.,
its successors and permitted assigns.

 

“Compliance Certificate” means a certificate
substantially in the form of Exhibit C, properly completed and signed
on behalf of Borrowers by a Senior Officer of each Borrower.

 

“Contingent Obligation” means, as to any
Person, any:

 

(a)                                  guarantee by that Person of Indebtedness
of, or other obligation performable by, any other Person; or

 

(b)                                 assurance given by that Person to an
obligee of any other Person with respect to the performance of an obligation
by, or the financial condition of, such other Person, whether direct, indirect
or contingent, including any purchase or repurchase agreement covering such
obligation or any collateral security therefor, any agreement to provide funds
(by means of loans, capital contributions or otherwise) to such other Person,
any agreement to support the solvency or level of any balance sheet item of
such other Person or any “keep-well”, “make-well” or other arrangement of
whatever nature given for the purpose of assuring or holding harmless such
obligee against loss with respect to any obligation of such other Person;
provided, however, that the term Contingent Obligation shall not include
endorsements of instruments for deposit or collection in the ordinary course of
business.

 

“Contractual Obligation” means, as to any
Person, any provision of any outstanding security issued by that Person or of
any material agreement, instrument or undertaking to which that Person is a
party or by which it or any of its Property is bound.

 

“Credit Extension” means each of the following:

 

(a)                                  a Borrowing; and

 

(b)                                 a L/C Credit Extension.

 

“Creditors” means, collectively, the Administrative
Agent, each Issuing Lender, the Swing Line Lenders, each Lender, the
Syndication Agent, the Co-Documentation Agents, and, where the context
requires, any one or more of them.

 

6

 

“Debt Rating” means, as of any date of
determination, the credit ratings assigned by Moody’s and S&P to senior
unsecured Indebtedness of the Company, provided however that (a) if the
credit facilities hereunder receive a split-rating and the rating differential
is one level, the higher of the two ratings will apply, and (b) if the
credit facilities hereunder are “split-rated” and the ratings differential is
more than one level, the highest intermediate rating shall be used.

 

“Debtor Relief Laws” means the Bankruptcy Code
of the United States of America, as amended from time to time, and all other
applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief Laws from
time to time in effect affecting the rights of creditors generally.

 

“Default” means any event that, with the giving
of any applicable notice or passage of time specified in Section 9.1, or
both, would be an Event of Default.

 

“Default Rate” means the interest rate
prescribed in Section 3.9.

 

“Defaulting Lender” means any Lender that:

 

(a)                                  has failed to fund any portion of the
Committed Loans, participations in L/C Obligations or participations in Swing
Line Advances required to be funded by it hereunder within one Business Day of
the date required to be funded by it hereunder;

 

(b)                                 has otherwise failed to pay over to the
Administrative Agent, any other Lender or Borrowers any other amount required
to be paid by it hereunder within one Business Day of the date when due, unless
the subject of a good faith dispute; or

 

(c)                                  has been deemed insolvent or become the
subject of a bankruptcy or insolvency proceeding.

 

“Defeased Debt” means any Indebtedness of
Parent or the Restricted Subsidiaries which, at any relevant time, is subject
to legal or covenant defeasance in a manner which is reasonably acceptable to
the Administrative Agent.

 

“Designated Deposit Account” means a deposit
account to be maintained by Borrowers with Bank of America, as from time to
time designated by Borrowers by written notification to the Administrative
Agent.

 

“Designated Eurodollar Market” means, with
respect to any Eurodollar Rate Loan:

 

(a)                                  the London Eurodollar Market; or

 

(b)                                 if prime banks in the London Eurodollar
Market are at the relevant time not accepting deposits of Dollars or if the
Administrative Agent determines that the London Eurodollar Market does not
represent at the relevant time the effective pricing to the Lenders for
deposits of Dollars in the London Eurodollar Market, the Cayman Islands Eurodollar
Market; or

 

(c)                                  if prime banks in the Cayman Islands
Eurodollar Market are at the relevant time not accepting deposits of Dollars or
if the Administrative Agent determines that the Cayman Islands Eurodollar
Market does not represent at the relevant time the

 

7

 

effective pricing to the Lenders for deposits of
Dollars in the Cayman Islands Eurodollar Market, such other Eurodollar Market
as may from time to time be selected by the Administrative Agent with the
approval of Borrowers and the Requisite Lenders.

 

“Disqualification” means, with respect to any
Lender:

 

(a)                                  the failure of that Person timely to file
pursuant to applicable Gaming Laws:

 

(i)                                     any application requested of that Person
by any Gaming Board in connection with any licensing required of that Person as
a lender to Borrowers; or

 

(ii)                                  any required application or other papers
in connection with determination of the suitability of that Person as a lender
to Borrowers;

 

(b)                                 the withdrawal by that Person (except
where requested or permitted by the Gaming Board) of any such application or
other required papers; or

 

(c)                                  any final determination by a Gaming Board
pursuant to applicable Gaming Laws:

 

(i)                                     that such Person is “unsuitable” as a
lender to Borrowers;

 

(ii)                                  that such Person shall be “disqualified”
as a lender to Borrowers; or

 

(iii)                               denying the issuance to that Person of any license
required under applicable Gaming Laws to be held by all lenders to Borrowers.

 

“Distributed
EBITDA Loan” means Indebtedness of Parent, the Company or of any Special
Purpose Subsidiary to an Unrestricted Subsidiary representing a loan to Parent,
to the Company or to that Special Purpose Subsidiary of the distributed cash
flow of that Unrestricted Subsidiary (or of any other Unrestricted Subsidiary
which is wholly-owned, directly or indirectly, by the first Unrestricted
Subsidiary).

 

“Distributed
Unrestricted EBITDA” means, for any period, the amount of Unrestricted
EBITDA actually received by Parent and the Restricted Subsidiaries in Cash
during that period, either by way of a distribution, by means of Distributed
EBITDA Loans or by means of return of capital invested by Parent and the
Restricted Subsidiaries in the Unrestricted Subsidiary, in each case net of any
further investment during that period by Parent and the Restricted Subsidiaries
in the Unrestricted Subsidiaries to which such Unrestricted EBITDA is
attributable.

 

“Dollar Equivalent” means, at any time, (a) with
respect to any amount denominated in Dollars, such amount, and (b) with
respect to any amount denominated in any L/C Alternative Currency, the
equivalent amount thereof in Dollars as determined by the Administrative Agent
at such time on the basis of the Spot Rate (determined in respect of the most
recent Revaluation Date) for the purchase of Dollars with such L/C Alternative
Currency.

 

“Dollars” or “$” means United States dollars.

 

8

 

“EBITDA” means, for any period, the sum
of (y) Net Income for such period plus (in each case to the extent
related to Parent and the Restricted Subsidiaries and deducted in determining
such Net Income):

 

(a)                                  income taxes;

 

(b)                                 Interest Expense;

 

(c)                                  depreciation and amortization;

 

(d)                                 minority interest;

 

(e)                                  extraordinary losses (or minus
extraordinary gains);

 

(f)                                    Pre-Opening Expenses; and

 

(g)                                 nonrecurring non-cash charges, and after
deduction of any nonrecurring non-cash gains;

 

provided that, in calculating “EBITDA,” and to
the extent otherwise included in Net Income for any portion of the relevant
period:

 

(i)                                     the operating results of each New Project
which commences operations and records not less than one full fiscal quarter’s
operations during the relevant period shall be annualized on a straight line
basis; and

 

(ii)                                  EBITDA shall be adjusted, on a pro forma
basis, (A) to include the operating results of each Person or group of
operating assets or property acquired by Parent and the Restricted Subsidiaries
during the relevant period for a consideration which is in excess of $50,000,000,
and (B) to exclude the operating results of each Person or group of
operating assets (1) which are sold or otherwise disposed of by Parent and
the Restricted Subsidiaries for a consideration in excess of $50,000,000, (2) whose
operations are discontinued during the relevant period, or (3) which are
owned by or contributed to an Unrestricted Subsidiary.

 

plus, without duplication, (z) Distributed Unrestricted
EBITDA for that period.

 

“Effective Date” means the time and Business
Day on which the conditions set forth in Section 8.1 are satisfied or
waived, and the initial Loans hereunder are made.

 

“Election to Become a Borrower” means an
Election to Become a Borrower, substantially in the form of Exhibit D
to this Agreement, properly completed and duly executed by each required party
thereto.

 

“Eligible Assignee” means:

 

(a)                                  a Lender;

 

(b)                                 an Affiliate of a Lender;

 

(c)                                  an Approved Fund; and

 

9

 

(d)                                 any other Person (other than a natural
person) approved by the Administrative Agent, and (unless an Event of Default
has occurred and is continuing), the Parent and the Borrowers (each such
approval not to be unreasonably withheld or delayed);

 

provided that notwithstanding the foregoing, “Eligible
Assignee” shall not include the Parent and the Borrowers or any of their
respective Affiliates or Subsidiaries.

 

“ERISA” means the Employee Retirement Income
Security Act of 1974, and any regulations issued pursuant thereto, as amended
or replaced and as in effect from time to time.

 

“Eurodollar Base Rate” has the meaning
specified in the definition of Eurodollar Rate.

 

“Eurodollar Business Day” means any Business
Day on which dealings in Dollar deposits are conducted by and among banks in
the Designated Eurodollar Market.

 

“Eurodollar Margin” means, as of each date of
determination, the relevant interest rate margin set forth in the definition of
Applicable Rates.

 

“Eurodollar Market” means a regular established
market located outside the United States of America by and among banks for the
solicitation, offer and acceptance of Dollar deposits in such banks.

 

“Eurodollar Rate”  means for any Interest Period with respect to
a Eurodollar Rate Loan, a rate per annum determined by the Administrative Agent
pursuant to the following formula:

 

	
  Eurodollar
  Rate  =

  	
  Eurodollar
  Base Rate

  	
   

  
	
  1.00
  – Eurodollar Reserve Percentage

  

 

Where,

 

“Eurodollar Base Rate” means, for such Interest
Period:

 

(a)                                  the rate per annum equal to the rate
determined by the Administrative Agent to be the offered rate that appears on
the page of the Telerate screen (or any successor thereto) that displays
an average British Bankers Association Interest Settlement Rate for deposits in
Dollars (for delivery on the first day of such Interest Period) with a term
equivalent to such Interest Period, determined as of approximately 11:00 a.m.
(London time) two Business Days prior to the first day of such Interest Period,
or

 

(b)                                 if the rate referenced in the preceding
clause (a) does not appear on such page or service or such page or
service shall not be available, the rate per annum equal to the rate determined
by the Administrative Agent to be the offered rate on such other page or
other service that displays an average British Bankers Association Interest
Settlement Rate for deposits in Dollars (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period, determined as
of approximately 11:00 a.m. (London time) two Business Days prior to the
first day of such Interest Period, or

 

10

 

(c)                                  if the rates referenced in the preceding
clauses (a) and (b) are not available, the rate per annum determined
by the Administrative Agent as the rate of interest at which deposits in
Dollars for delivery on the first day of such Interest Period in same day funds
in the approximate amount of the Eurodollar Rate Loan being made, continued or
converted by Bank of America and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch to major banks in the
London interbank eurodollar market at their request at approximately 4:00 p.m.
(London time) two Business Days prior to the first day of such Interest Period.

 

“Eurodollar Rate Advance” and “Eurodollar
Rate Loan” mean, respectively, a Committed Advance or a Committed Loan made
hereunder and specified to be a Base Rate Advance or Loan in accordance with Article 2.

 

“Eurodollar Reserve
Percentage” means, for any day during any Interest Period, the reserve
percentage (expressed as a decimal, carried out to five decimal places) in
effect on such day, whether or not applicable to any Lender, under regulations
issued from time to time by the FRB for determining the maximum reserve
requirement (including any emergency, supplemental or other marginal reserve
requirement) with respect to Eurocurrency funding (currently referred to as “Eurocurrency
liabilities”). The Eurodollar Rate for each outstanding Eurodollar Rate Loan
shall be adjusted automatically as of the effective date of any change in the
Eurodollar Reserve Percentage.

 

“Event of Default” shall have the meaning
provided in Section 9.1.

 

“Existing Credit Agreement” means the Second
Amended and Restated Credit Agreement dated as of January 31, 2005, among
Borrowers, Parent, the lenders therein named and Bank of America, as
Administrative Agent, as heretofore amended.

 

“Existing Letters of Credit” means those of the
letters of credit issued under the Existing Credit Agreement which remain
outstanding as of the Effective Date. Prior to the Effective Date, the
Administrative Agent shall provide the Lenders with an advice concerning the
aggregate amount of the Existing Letters of Credit.

 

“Existing Subordinated Debt” means,
collectively:

 

(a)                                  the outstanding principal balance of the
Company’s 9.375% Senior Subordinated Notes due 2007 (originally issued by Park
Place Entertainment Corporation);

 

(b)                                 the outstanding principal balance of the
Company’s 8.875% Senior Subordinated Notes due 2008 (originally issued by Park
Place Entertainment Corporation);

 

(c)                                  the outstanding principal balance of the
Company’s 7.875% Senior Subordinated Notes due 2010 (originally issued by Park
Place Entertainment Corporation); and

 

(d)                                 the outstanding principal balance of the
Company’s 8.125% Senior Subordinated Notes due 2011 (originally issued by Park
Place Entertainment Corporation).

 

“Exit Agreement” means an agreement among the
Company, the Administrative Agent and a Lender under the Existing Credit
Agreement pursuant to which that Lender agrees that its status as a Lender
under the Existing Credit Agreement is terminated as of the Effective Date.

 

11

 

“Facility Fee Rate” means, as of each date of
determination, the rate set forth in the applicable column in the definition of
Applicable Rates.

 

“Federal Funds Rate” means, for any day, the
rate per annum equal to the weighted average of the rates on overnight Federal
funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of
New York on the Business Day next succeeding such day; provided  that:

 

(a)                                  if such day is not a Business Day, the
Federal Funds Rate for such day shall be such rate on such transactions on the
next preceding Business Day as so published on the next succeeding Business
Day; and

 

(b)                                 if no such rate is so published on such
next succeeding Business Day, the Federal Funds Rate for such day shall be the
average rate (rounded upward, if necessary, to a whole multiple of 1/100 of 1%)
charged to Bank of America on such day on such transactions as determined by
the Administrative Agent.

 

“Fiscal Quarter” means the fiscal quarter of
Parent consisting of a three month fiscal period ending on each March 31, June 30,
September 30, December 31.

 

“Fiscal Year” means the fiscal year of Parent
consisting of a twelve month fiscal period ending on each December 31.

 

“Foreign Lender” means any Lender that is
organized under the laws of a jurisdiction other than that in which the
Borrowers are resident for tax purposes. For purposes of this definition, the
United States, each State thereof and the District of Columbia shall be deemed
to constitute a single jurisdiction.

 

“Gaming Board” means any Governmental Agency
that holds regulatory, licensing or permit authority over gambling, gaming or
casino activities conducted by Parent and its Subsidiaries within its
jurisdiction, or before which an application for licensing to conduct such
activities is pending.

 

“Gaming Laws” means all Laws pursuant to which
any Gaming Board possesses regulatory, licensing or permit authority over
gambling, gaming or casino activities conducted by Parent and its Subsidiaries
within its jurisdiction.

 

“Generally Accepted Accounting Principles”
means, as of any date of determination, accounting principles:

 

(a)                                  set forth as generally accepted in then
currently effective Opinions of the Accounting Principles Board of the American
Institute of Certified Public Accountants;

 

(b)                                 set forth as generally accepted in then
currently effective Statements of the Financial Accounting Standards Board; or

 

(c)                                  that are then approved by such other
entity as may be approved by a significant segment of the accounting
profession in the United States of America.

 

12

 

The term “consistently applied,” as used in
connection therewith, means that the accounting principles applied are
consistent in all material respects to those applied at prior dates or for prior
periods.

 

“Governmental Agency” means the government of
the United States or any other nation, or any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory
body, court, central bank or other entity exercising executive, legislative,
judicial, taxing, regulatory or administrative powers or functions of or
pertaining to government (including any supra-national bodies such as the
European Union or the European Central Bank).

 

“Granting Lender” has the meaning specified in Section 11.8(h).

 

“Hazardous Materials” means substances defined
as hazardous substances pursuant to the Comprehensive Environmental Response,
Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq., or as
hazardous, toxic or pollutant pursuant to the Hazardous Materials
Transportation Act, 49 U.S.C. § 1801, et seq., the Resource Conservation
and Recovery Act, 42 U.S.C. § 6901, et seq., or in any other
applicable Hazardous Materials Law, in each case as such Laws are amended from
time to time.

 

“Hazardous Materials Laws” means all federal,
state or local laws, ordinances, rules or regulations governing the
disposal of Hazardous Materials applicable to any of the Real Property.

 

“Indebtedness” means, as to any Person and as
of each date of determination, without duplication:

 

(a)                                  all obligations of such Person for
borrowed money;

 

(b)                                 all obligations of such Person evidenced
by bonds, debentures, notes or other similar instruments;

 

(c)                                  all obligations of such Person to pay the
deferred purchase price of property or services, except trade accounts payable
arising in the ordinary course of business;

 

(d)                                 all obligations of such Person as lessee
which are capitalized in accordance with Generally Accepted Accounting
Principles;

 

(e)                                  all indebtedness or other obligations
secured by a contractual Lien on any asset of such Person, whether or not such
indebtedness or other obligations are otherwise an obligation of such Person;
and

 

(f)                                    all Contingent Obligations made by such
Person (including by way of provision of letters of credit or other contingent
obligations) with respect to indebtedness or other obligations of any other
Person which constitute “Indebtedness” of a type or class described in
clauses (a) through (e) of this definition.

 

“Initial Pricing Period” means the period
beginning on the Effective Date and ending November 30, 2006.

 

“Intangible Assets” means assets that are
considered intangible assets under Generally Accepted Accounting Principles, including
customer lists, goodwill, computer software, copyrights, trade names,
trademarks and patents.

 

13

 

“Intercompany Debt” means any Indebtedness owed
by a Restricted Subsidiary to Parent or any other Restricted Subsidiary.

 

“Interest Coverage Ratio” means, as of the last
day of any Fiscal Quarter, the ratio of:

 

(a)                                  Adjusted EBITDA for the four Fiscal
Quarter period ending on that date plus in the case of the period ending
June 30, 2006, the Anticipated Synergies; to

 

(b)                                 Interest Expense of Parent and the
Restricted Subsidiaries for the same period, provided that:

 

(i)                                     in respect of any period for which there
has been a pro forma adjustment to EBITDA to include the results of operations
of any Person or assets acquired by Parent and the Restricted Subsidiaries (as
contemplated in the definition of “EBITDA”), Interest Expense shall be adjusted
on a pro forma basis to include the amount of interest which would have been
payable by the Parent and the Restricted Subsidiaries on Indebtedness which is
equal to the consideration paid to acquire that Person or assets for the entire
period;

 

(ii)                                  in respect of any period for which there
has been a pro forma adjustment to EBITDA to exclude the results of operations
of any Person or assets sold or disposed of by Parent and the Restricted
Subsidiaries (as contemplated in the definition of “EBITDA”), Interest Expense
shall be adjusted on a pro forma basis to exclude the amount of interest which
would have been payable by the Parent and the Restricted Subsidiaries on
Indebtedness which is equal to the consideration received by them for such
Person or assets for the entire period; and

 

(iii)                               Interest Expense in respect of Distributed EBITDA
Loans held by Unrestricted Subsidiaries and with an aggregate balance
(including accrued interest) not exceeding $250,000,000 shall be excluded.

 

“Interest Differential” means, with respect to
any prepayment of a Eurodollar Rate Loan on a day prior to the last day of the
applicable Interest Period and with respect to any failure to borrow a
Eurodollar Rate Loan on the date or in the amount specified in any Request for
Loan:

 

(a)                                  the per annum interest rate payable
pursuant to Section 3.1(c) with respect to the Eurodollar Rate Loan; minus

 

(b)                                 the Eurodollar Rate on, or as near as
practicable to the date of the prepayment or failure to borrow for, a
Eurodollar Rate Loan commencing on such date and ending on the last day of the
Interest Period of the Eurodollar Rate Loan so prepaid or which would have been
borrowed on such date.

 

“Interest Expense” means, as of the last day of
any fiscal period, the sum of:

 

(a)                                  all interest, fees, charges and related
expenses paid or payable (without duplication) for that fiscal period to a
lender in connection with borrowed money or the deferred purchase price of
assets that are considered “interest expense” under Generally Accepted
Accounting Principles, plus

 

14

 

(b)                                 the portion of rent paid or payable
(without duplication) for that fiscal period under Capital Lease Obligations
that should be treated as interest in accordance with Financial Accounting
Standards Board Statement No. 13.

 

“Interest Period” means, as to each Eurodollar
Rate Loan, the period commencing on the date such Eurodollar Rate Loan is
disbursed or converted to or continued as a Eurodollar Rate Loan and ending on
the date one week, 1, 2, 3 or 6 months thereafter, as selected by the Borrowers
in their Request for Loan, or such other period requested by the Borrowers and consented
to by all the Lenders; provided  that:

 

(a)                                  any Interest Period that would otherwise
end on a day that is not a Business Day shall be extended to the next
succeeding Business Day unless such Business Day falls in another calendar
month, in which case such Interest Period shall end on the next preceding
Business Day;

 

(b)                                 any Interest Period that begins on the
last Business Day of a calendar month (or on a day for which there is no
numerically corresponding day in the calendar month at the end of such Interest
Period) shall end on the last Business Day of the calendar month at the end of
such Interest Period; and

 

(c)                                  no Interest Period shall extend beyond
the Maturity Date.

 

“Investment” means, when used in connection
with any Person, any investment by or of that Person, whether by means of
purchase or other acquisition of stock or other securities of any other Person
or by means of a loan, advance creating a debt, capital contribution, guaranty
or other debt or equity participation or interest in any other Person, including
any partnership and joint venture interests of such Person. The amount of any
Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment.

 

“Investment Grade” means:

 

(a)                                  with respect to S&P, a rating of BBB-
or higher; and

 

(b)                                 with respect to Moody’s, a rating of Baa3
or higher.

 

“ISP” means, with respect to any Letter of
Credit, the “International Standby Practices 1998” published by the Institute
of International Banking Law & Practice (or such later version thereof
as may be in effect at the time issuance).

 

“Issuer Documents” means with respect to any
Letter of Credit, the Request for Letter of Credit, an Application for Letter
of Credit, and any other document, agreement and instrument entered into by the
Issuing Lender in respect of the relevant Letter of Credit and any Borrower or
in favor of an Issuing Lender and relating to any such Letter of Credit.

 

“Issuing Lender” means, as to each Letter of
Credit, the Lender which issues the same in accordance with Section 2.4,
but only when acting in its capacity as Issuing Lender for that Letter of
Credit. Subject to the procedures set forth in Section 2.4, any Lender
may, at its option, be a Issuing Lender for Letters of Credit issued under this
Agreement.

 

15

 

“Joint Venture Holding Company” means any
Subsidiary of Parent which has no substantial assets other than equity
securities, securities convertible into equity securities and warrants, options
or similar rights to purchase such equity securities or convertible securities
(and any dividends, Cash, instruments or other property received in respect of
or in exchange for any of the foregoing), in each case issued by Persons which
are not Subsidiaries of Parent.

 

“Laws” means, collectively, all international,
foreign, federal, state and local statutes, treaties, rules, regulations,
ordinances, codes and administrative or judicial precedents.

 

“L/C Advance” means, with respect to each
Lender, such Lender’s funding of its participation in any L/C Borrowing in
accordance with its Applicable Percentage.

 

“L/C Alternative Currency” means each of Euros,
British Pounds Sterling, Singapore Dollars, Yen, and each other currency (other
than Dollars) that is approved in accordance with Section 1.10.

 

“L/C Borrowing” means an extension of credit
resulting from a drawing under any Letter of Credit which has not been
reimbursed on the date when made or refinanced by a Committed Loan.

 

“L/C Credit Extension” means, with respect to
any Letter of Credit, the issuance thereof or extension of the expiry date
thereof, or the increase of the amount thereof.

 

“L/C Obligations” means, as at any date of
determination, the aggregate undrawn amount of all outstanding Letters of
Credit plus the aggregate of all Unreimbursed Amounts, including all L/C
Borrowings. For purposes of computing the amount available to be drawn under
any Letter of Credit, the amount of such Letter of Credit shall be determined
in accordance with Section 1.7. For all purposes of this Agreement, if on
any date of determination a Letter of Credit has expired by its terms but any
amount may still be drawn thereunder by reason of the operation of Rule 3.14
of the ISP, such Letter of Credit shall be deemed to be “outstanding” in the
amount so remaining available to be drawn.

 

“Lead Arrangers” means Banc of America
Securities LLC and Wells Fargo Bank, National Association. The Lead Arrangers
shall have no duties or obligations under this Agreement or the other Loan
Documents.

 

“Letter of Credit” means any letter of credit
issued hereunder and shall include the Existing Letters of Credit. A Letter of
Credit may be a commercial letter of credit or a standby letter of credit.

 

“Letter of Credit Application” means an
application and agreement for the issuance or amendment of a Letter of Credit
in the form from time to time in use by the relevant Issuing Lender.

 

“Letter of Credit Fee” means, as of each date
of determination, the rate set forth in the definition of Applicable Rates.

 

“Letter of Credit Sublimit” means an amount
equal to $300,000,000. The Letter of Credit Sublimit is part of, and not
in addition to, the Aggregate Commitments.

 

16

 

“License Revocation” means the revocation,
failure to renew or suspension of, or the appointment of a receiver, supervisor
or similar official with respect to, any casino, gambling or gaming license
issued by any Gaming Board covering any casino or gaming facility of Parent or
any of the Restricted Subsidiaries.

 

“Lien” means any mortgage, deed of trust,
pledge, hypothecation, assignment for security, security interest, encumbrance,
lien or charge of any kind, whether voluntarily incurred or arising by
operation of Law or otherwise, affecting any Property, including any
agreement to grant any of the foregoing, any conditional sale or other title
retention agreement, any lease in the nature of a security interest, and/or the
filing of or agreement to give any financing statement (other  than
a precautionary financing statement with respect to a lease or other agreement
that is not in the nature of a security interest) under the Uniform Commercial
Code or comparable Law of any jurisdiction with respect to any Property.

 

“Loan” means the aggregate of the Advances made
at any one time by the Lenders pursuant to Article 2, and includes each
Swing Line Advance.

 

“Loan Documents” means, collectively, this
Agreement, any Committed Advance Notes, the Letters of Credit, the Swing Line
Documents, the Parent Guaranty, any Request for Loan, any Request for Letter of
Credit, each Application for Letter of Credit, any Compliance Certificate and
any other instruments, documents or agreements of any type or nature hereafter
executed and delivered by Parent or any of the Restricted Subsidiaries or
Affiliates to the Administrative Agent or any other Creditor in any way
relating to or in furtherance of this Agreement, in each case either as
originally executed or as the same may from time to time be supplemented,
modified, amended, restated, extended or supplanted.

 

“Loan Parties” means, collectively, the
Borrowers and the Parent.

 

“Management Company” means any Restricted
Subsidiary which has no substantial assets other than contractual rights to
receive fees under management agreements, development agreements or similar
instruments.

 

“Margin Stock” means “margin stock” as such
term is defined in Regulation U.

 

“Material Adverse Effect” means any set of
circumstances or events which:

 

(a)                                  has or could reasonably be expected to
have any material adverse effect whatsoever upon the validity or enforceability
of any Loan Document;

 

(b)                                 is or could reasonably be expected to be
material and adverse to the condition (financial or otherwise), assets,
business or operations of Parent and the Restricted Subsidiaries, taken as a
whole; or

 

(c)                                  materially impairs or could reasonably be
expected to materially impair the ability of Parent and the Restricted
Subsidiaries, taken as a whole, to perform the Obligations.

 

“Material Operating Property” means, as of each
date of determination, each resort, hotel, casino or other similar property
owned, leased or operated by Parent or the Restricted Subsidiaries as of that
date for which, during the then most recently ended period of four fiscal
quarters, the attributable portion of EBITDA for that period was in excess of
$25,000,000 (as reasonably

 

17

 

determined by the Company), provided that in the
event that Parent publicly announces that the relevant property will be closed
to the public in its entirety for a period in excess of one month in connection
with its demolition, remodeling, redevelopment or expansion, and substantially
concurrently with such closure the ownership thereof is contributed or
otherwise transferred to an Unrestricted Subsidiary (or if the entity owning
such Property is designated as an Unrestricted Subsidiary in accordance with
the terms of this Agreement), then from and after the date upon which such
contribution, transfer or designation, it shall no longer be considered to be a
Material Operating Property.

 

“Maturity Date” means April 25, 2011.

 

“Moody’s” means Moody’s Investors Service, Inc.,
and any successor thereto.

 

“Multiemployer Plan” means any employee benefit
plan of the type described in Section 4001(a)(3) of ERISA.

 

“Negative Pledge” means a Contractual
Obligation that contains a covenant binding on Parent or any of the Restricted
Subsidiaries that prohibits Liens on any of its or their Property, other
than

 

(a)                                  any such covenant contained in a
Contractual Obligation granting a Lien permitted under Section 6.4 which
affects only the Property that is the subject of such permitted Lien and

 

(b)                                 any such covenant that does not apply to
Liens securing the Obligations.

 

“Net Income” means, with respect to any fiscal
period, the consolidated net income of Parent and its Subsidiaries for that
period, determined in accordance with Generally Accepted Accounting Principles,
consistently applied, minus that portion of such net income which is
attributable to the operations of Unrestricted Subsidiaries.

 

“Net Tangible Assets” means, as of each date of
determination, the consolidated total assets of Parent and its Subsidiaries as
of the last day of the most recent Fiscal Quarter for which financial
statements have been delivered in accordance with Section 7.1, after
deducting therefrom:

 

(a)                                  all current liabilities of Parent and its
Restricted Subsidiaries (excluding (i) the current portion of long term
Indebtedness, (ii) inter-company liabilities (as amongst Parent and its
Restricted Subsidiaries and the Distributed EBITDA Loans), and (iii) any
liabilities which are by their terms renewable or extendable at the option of
the obligor thereon to a time more than twelve months from the time as of which
the amount thereof is being computed);

 

(b)                                 all goodwill, trade names, trademarks,
patents, unamortized debt discount and expense and other like intangibles, all
as set forth on the latest consolidated balance sheet of Parent prepared in
accordance with Generally Accepted Accounting Principles; and

 

(c)                                  without duplication as to (a) and
(b), the total assets of the Unrestricted Subsidiaries as of that date,
determined in accordance with Generally Accepted Accounting Principles.

 

18

 

 

“New Project” means each capital project which
is either a new gaming project or a new feature at an existing gaming project
owned by Parent or the Restricted Subsidiaries (as opposed to owned by an
Unrestricted Subsidiary) having a development and construction budget in excess
of $100,000,000 which hereafter receives a certificate of completion or
occupancy and all relevant gaming and other licenses, and in fact commences
operations.

 

“Non-Reinstatement Deadline” has the meaning
set forth for that term in Section 2.4(n).

 

“Obligations” means all present and future
obligations of every kind or nature of Parent, Borrowers or any Party at any
time and from time to time owed to the Creditors or any one or more of them,
under any one or more of the Loan Documents, whether due or to become due,
matured or unmatured, liquidated or unliquidated, or contingent or
noncontingent, including obligations of performance as well as
obligations of payment, and including interest that accrues after the
commencement of any proceeding under any Debtor Relief Law by or against
Parent, any Borrower or any Restricted Subsidiary.

 

“Opinions of Counsel” means:

 

(a)                                  the favorable written legal opinion of
Borrower’s Vice President and Associate General Counsel; and

 

(b)                                 the favorable written legal opinion of
Latham & Watkins, LLP, special counsel to Parent and the Company,
substantially in the form of Exhibit E, together with copies of all
factual certificates and legal opinions upon which such counsel have relied.

 

“Other Taxes” means all present or future stamp
or documentary taxes or any other excise or property taxes, charges or similar
levies arising from any payment made hereunder or under any other Loan Document
or from the execution, delivery or enforcement of, or otherwise with respect
to, this Agreement or any other Loan Document.

 

“Outstanding Amount” means:

 

(a)                                  with respect to Committed Loans and Swing
Line Advances on any date, the aggregate outstanding principal amount thereof
after giving effect to any borrowings and prepayments or repayments of
Committed Loans and Swing Line Advances, as the case may be, occurring on
such date; and

 

(b)                                 with respect to any L/C Obligations on
any date, the amount of such L/C Obligations on such date after giving effect
to any L/C Credit Extension occurring on such date and any other changes in the
aggregate amount of the L/C Obligations as of such date, including as a result
of any reimbursements by the Borrowers of Unreimbursed Amounts.

 

“Parent” means Harrah’s Entertainment, Inc.,
a Delaware corporation, and its permitted successors and assigns.

 

“Parent Guaranty” means the Third Amended and
Restated Guaranty executed by Parent on the Effective Date with respect to the
Obligations, substantially in the form of Exhibit F, either as
originally executed or as it may from time to time be supplemented,
modified, amended, restated or extended.

 

19

 

“Participant” has the meaning specified in Section 11.8(d).

 

“Party” means any Person other than Creditors
which now or hereafter is a party to any of the Loan Documents.

 

“Pension Plan” means any “employee pension
benefit plan” (as such term is defined in Section 3(2) of ERISA), other
than a Multiemployer Plan, which is subject to Title IV of ERISA and
is maintained by Parent or any of its Subsidiaries or to which Parent or any of
its Subsidiaries contributes or has an obligation to contribute.

 

“Permitted Encumbrances” means:

 

(a)                                  inchoate Liens incident to construction
or maintenance of Real Property; or Liens incident to construction or
maintenance of Real Property now or hereafter filed of record for which
adequate reserves have been set aside (or deposits made pursuant to applicable
Law) and which are being contested in good faith by appropriate proceedings and
have not proceeded to judgment, provided that, by reason of nonpayment
of the obligations secured by such Liens, no such Real Property is subject to a
material risk of loss or forfeiture;

 

(b)                                 Liens for taxes and assessments on and
similar charges with respect to Real Property which are not yet past due; or
Liens for taxes and assessments on Real Property for which adequate reserves
have been set aside and are being contested in good faith by appropriate
proceedings and have not proceeded to judgment, provided that, by reason
of nonpayment of the obligations secured by such Liens, no material Real
Property is subject to a material risk of loss or forfeiture;

 

(c)                                  defects and irregularities in title to
any Real Property which in the aggregate do not materially impair the fair
market value or use of the Real Property for the purposes for which it is or may reasonably
be expected to be held;

 

(d)                                 easements, exceptions, reservations, or
other agreements for the purpose of pipelines, conduits, cables, wire
communication lines, power lines and substations, streets, trails, walkways,
driveways, drainage, irrigation, water, and sewerage purposes, dikes, canals,
ditches, the removal of oil, gas, coal, or other minerals, and other like
purposes affecting Real Property, facilities, or equipment which in the
aggregate do not materially burden or impair the fair market value or use of
such Real Property for the purposes for which it is or may reasonably be
expected to be held;

 

(e)                                  easements, exceptions, reservations, or
other agreements for the purpose of facilitating the joint or common use of
property which in the aggregate do not materially burden or impair the fair
market value or use of such property for the purposes for which it is or may reasonably
be expected to be held;

 

(f)                                    rights reserved to or vested in any
Governmental Agency to control or regulate, or obligations or duties to any
Governmental Agency with respect to, the use of any Real Property;

 

20

 

(g)                                 rights reserved to or vested in any
Governmental Agency to control or regulate, or obligations or duties to any
Governmental Agency with respect to, any right, power, franchise, grant,
license, or permit;

 

(h)                                 present or future zoning laws, building codes
and ordinances, zoning restrictions, or other laws and ordinances restricting
the occupancy, use, or enjoyment of Real Property;

 

(i)                                     statutory Liens, other than those
described in clauses (a) or (b) above, arising in the ordinary
course of business with respect to obligations which are not delinquent or are
being contested in good faith, provided that, if delinquent, adequate
reserves have been set aside with respect thereto and, by reason of nonpayment,
no property is subject to a material risk of loss or forfeiture;

 

(j)                                     covenants, conditions, and restrictions
affecting the use of Real Property which in the aggregate do not materially
impair the fair market value or use of the Real Property for the purposes for
which it is or may reasonably be expected to be held;

 

(k)                                  rights of tenants under leases and rental
agreements covering Real Property entered into in the ordinary course of
business of the Person owning such Real Property;

 

(l)                                     Liens consisting of pledges or deposits
to secure obligations under workers’ compensation laws or similar legislation,
including Liens of judgments thereunder which are not currently dischargeable;

 

(m)                               Liens consisting of pledges or deposits
of property to secure performance in connection with operating leases made in the
ordinary course of business to which Parent or any of its Subsidiaries is a
party as lessee, provided the aggregate value of all such pledges and
deposits in connection with any such lease does not at any time exceed 20% of
the annual fixed rentals payable under such lease;

 

(n)                                 Liens consisting of deposits of property
to secure bids made with respect to, or performance of, contracts (other
than contracts creating or evidencing an extension of credit to the
depositor) in the ordinary course of business;

 

(o)                                 Liens consisting of any right of offset,
or statutory bankers’ lien, on bank deposit accounts maintained in the ordinary
course of business so long as such bank deposit accounts are not established or
maintained for the purpose of providing such right of offset or bankers’ lien;

 

(p)                                 Liens consisting of deposits of property
to secure statutory obligations of Parent or any of the Restricted Subsidiaries
in the ordinary course of its business;

 

(q)                                 Liens consisting of deposits of property
to secure (or in lieu of) surety, appeal or customs bonds in proceedings to
which Parent or any of the Restricted Subsidiaries is a party in the ordinary
course of business;

 

21

 

(r)                                    Liens created by or resulting from any litigation
or legal proceeding involving Parent or any of the Restricted Subsidiaries in
the ordinary course of its business which is currently being contested in good
faith by appropriate proceedings, provided that adequate reserves have
been set aside and no material property is subject to a material risk of loss
or forfeiture;

 

(s)                                  precautionary UCC financing statement
filings made in connection with operating leases and not constituting Liens;
and

 

(t)                                    other non-consensual Liens incurred in
the ordinary course of business but not in connection with an extension of
credit, which do not in the aggregate, when taken together with all other
Liens, materially impair the value or use of the Property of Parent and the
Restricted Subsidiaries, taken as a whole.

 

“Permitted Right of Others” means a Right of
Others consisting of:

 

(a)                                  an interest (other than a legal or
equitable co-ownership interest, an option or right to acquire a legal or
equitable co-ownership interest and any interest of a ground lessor under a
ground lease), that does not materially impair the value or use of Property for
the purposes for which it is or may reasonably be expected to be held;

 

(b)                                 an option or right to acquire a Lien that
would be a Permitted Encumbrance;

 

(c)                                  the subordination of a lease or sublease
in favor of a financing entity; and

 

(d)                                 a license, or similar right, of or to
Intangible Assets granted in the ordinary course of business.

 

“Person” means any entity, whether an
individual, trustee, corporation, general partnership, limited partnership,
joint stock company, trust, estate, unincorporated organization, business
association, firm, joint venture, Governmental Agency, or otherwise.

 

“Pre-Opening Expenses” means, with respect to
any fiscal period, the amount of expenses (other  than interest
expense) incurred with respect to capital projects which are classified as “pre-opening
expenses” on the applicable financial statements of Parent and its Subsidiaries
for such period, prepared in accordance with Generally Accepted Accounting
Principles.

 

“Pricing Level” means, as of each date of
determination, the pricing level set forth below opposite (a) the Debt
Rating then in effect or (b) the Total Debt Ratio as of the last day of
the Fiscal Quarter ending approximately 60 days prior to the first day of that
Pricing Period in which such date occurs (whichever criteria yields the lowest
interest rates and other pricing to the Borrowers), provided that during
the Initial Pricing Period, the Applicable Pricing Level shall be Pricing Level
IV:

 

	
  Applicable Pricing Level

  	
   

  	
  Total Debt Ratio

  	
   

  	
  Debt Rating

  
	
  Pricing
  Level I

  	
   

  	
   

  	
  Not Applicable

  	
   

  	
  A-/A3 or higher

  
	
  Pricing
  Level II

  	
   

  	
   

  	
  Not Applicable

  	
   

  	
  BBB+/Baa1

  
	
  Pricing
  Level III

  	
   

  	
   

  	
  < 3.25:1.00

  	
   

  	
  BBB/Baa2

  
	
  Pricing
  Level IV

  	
   

  	
   

  	
  > 3.25:1.00 but < 3.75:1.00

  	
   

  	
  BBB-/Baa3

  
	
  Pricing
  Level V

  	
   

  	
   

  	
  > 3.75:1.00 but < 4.25:1.00

  	
   

  	
  BB+/Ba1

  
	
  Pricing
  Level VI

  	
   

  	
   

  	
  > 4.25:1.00 but < 4.75:1.00

  	
   

  	
  BB/Ba2 or lower
  or unrated

  

 

22

 

“Pricing Period” means (a) the Initial
Pricing Period, and (b) each subsequent three month period beginning on
each March 1, June 1, September 1 and December 1.

 

“Projections” means the financial projections
dated March 30, 2006 heretofore distributed to the Lenders.

 

“Property” means any interest in any kind of
property or asset, whether real, personal or mixed, or tangible or intangible.

 

“Public Lender” has the meaning set forth for
that term in Section 7.3.

 

“Quarterly Payment Date” means each March 31,
June 30, September 30 and December 31.

 

“Rating Decline” means the occurrence of a
decrease in the Debt Rating by either Moody’s or S&P to below Investment
Grade on any date on or within 90 days after the date of the first public
notice of:

 

(a)                                  the occurrence of an event described in
clauses (a) through (d) of the definition of “Change in Control;”
or

 

(b)                                 the intention by any of the Parent or
Borrowers to effect such an event (which 90-day period shall be extended so
long as the Debt Rating is under publicly announced consideration for possible
downgrade by Moody’s or S&P).

 

“Real Property” means, as of any date of
determination, all real property then or theretofore owned, leased or occupied
by Parent or any of the Restricted Subsidiaries.

 

“Register” has the meaning specified in Section 11.8(c).

 

“Regulations T, U and X” means
Regulations T, U and X, as at any time amended, of the Board of Governors
of the Federal Reserve System, or any other regulations in substance
substituted therefor.

 

“Related Parties” means, with respect to any
Person, such Person’s Affiliates and the partners, directors, officers,
employees, agents and advisors of such Person and of such Person’s Affiliates.

 

“Request for Letter of Credit” means a written
request for a Letter of Credit substantially in the form of Exhibit G,
together with any forms of application for letter of credit required by the
relevant Issuing Lender therefor, in each case signed by a Responsible Official
of a Borrower on behalf of that Borrower and properly completed to provide all
information required to be included therein (provided that it is understood
that the terms of the Loan Documents shall govern and control in the event of
any conflict between the terms of any such application and the Loan Documents).

 

23

 

“Request for Loan” means a written request for
a Loan substantially in the form of Exhibit H, signed by a
Responsible Official of a Borrower, on behalf of that Borrower, and properly
completed to provide all information required to be included therein.

 

“Requirement of Law” means, as to any Person,
the articles or certificate of incorporation and by-laws or other
organizational or governing documents of such Person, and any Law, or judgment,
award, decree, writ or determination of a Governmental Agency, in each case
applicable to or binding upon such Person or any of its Property or to which
such Person or any of its Property is subject.

 

“Requisite Lenders” means:

 

(a)                                  as of any date of determination prior to
the termination of the Commitments, Lenders having in the aggregate 51% or more
of the Aggregate Commitments; and

 

(b)                                 as of any date of determination if the
Commitments have then been terminated, Lenders holding 51% of the Total
Outstandings.

 

“Responsible Official” means when used with
reference to a Person other than an individual, any corporate officer of such
Person, general partner of such Person, corporate officer of a corporate
general partner of such Person, or corporate officer of a corporate general
partner of a partnership that is a general partner of such Person, or any other
responsible official thereof duly acting on behalf thereof. Any document or
certificate hereunder that is signed or executed by a Responsible Official of
another Person shall be conclusively presumed to have been authorized by all
necessary corporate, partnership and/or other action on the part of such
other Person.

 

“Restricted Subsidiary” means the Company, each
other Borrower and each other Subsidiary of the Parent which is not designated
as an “Unrestricted Subsidiary” in accordance with Section 2.10.

 

“Revaluation Date” means (i) each date of
issuance of a Letter of Credit denominated in a L/C Alternative Currency, (ii) each
date of an amendment of any such Letter of Credit having the effect of
increasing the amount thereof (solely with respect to the increased amount), (iii) each
date of any payment by any Issuing Lender under any Letter of Credit
denominated in a L/C Alternative Currency, and (iii) such additional dates
as the Administrative Agent shall determine or the Required Lenders shall
require.

 

“Right of Others” means, as to any Property in
which a Person has an interest, any legal or equitable ownership right, title
or other interest (other than a Lien) held by any other Person in that
Property, and any option or right held by any other Person to acquire any such
right, title or other interest in that Property, including any option or
right to acquire a Lien; provided, however, that

 

(a)                                  any covenant restricting the use or
disposition of Property of such Person contained in any Contractual Obligation
of such Person,

 

(b)                                 any provision contained in a contract
creating a right of payment or performance in favor of a Person that
conditions, limits, restricts, diminishes, transfers or terminates such right,
and

 

24

 

(c)                                  any residual rights held by a lessor or
vendor of Property, shall not be deemed to constitute a Right of Others.

 

“S&P” means Standard & Poor’s
Ratings Services, a division of The McGraw Hill Companies, Inc., and any
successor thereto.

 

“Sale and Leaseback” means, with respect to any
Person, the sale of Property owned by that Person (the “Seller”) to another
Person (the “Buyer”), together with the substantially concurrent leasing of
such Property (or any portion thereof) by the Buyer to the Seller.

 

“Senior Officer” means Parent’s and each
Borrower’s: chief executive officer, president, chief financial officer,
treasurer, vice presidents or secretaries.

 

“Significant Subsidiary” means, as of any date
of determination, each Restricted Subsidiary that had on the last day of the
Fiscal Quarter then most recently ended total assets (determined in accordance
with Generally Accepted Accounting Principles) of $50,000,000 or more.

 

“SPC” has the meaning specified in Section 11.8(h).

 

“Special Eurodollar Circumstance” means the
application or adoption after the date hereof of any Law or interpretation, or
any change therein or thereof, or any change in the interpretation or
administration thereof by any Governmental Agency, central bank or comparable
authority charged with the interpretation or administration thereof, or
compliance by any Lender or its Eurodollar Lending Office with any request or
directive (whether or not having the force of Law) of any such Governmental Agency,
central bank or comparable authority, or the existence or occurrence of
circumstances affecting the Designated Eurodollar Market generally that are
beyond the reasonable control of the Lenders.

 

“Special Purpose Subsidiary” means any
Wholly-Owned Subsidiary which (a) is a Restricted Subsidiary, (b) owns
no equity interests in Borrower or any other Restricted Subsidiary, (c) conducts
no active trade or business, (d) has no Indebtedness other than in respect
of Distributed EBITDA Loans, (e) owns no Indebtedness other than
Indebtedness of Parent, (f) for the obligations of which Parent and its
other Restricted Subsidiaries have no personal or corporate liability, and (g) the
obligations of which are not guaranteed or otherwise supported, directly or
indirectly, by any Person other than Parent.

 

“Solvent” as to any Person shall mean that:

 

(a)                                  the sum of the assets of such Person,
both at a fair valuation and at present fair saleable value, exceeds its
liabilities, including its probable liability in respect of contingent
liabilities;

 

(b)                                 such Person will have sufficient capital
with which to conduct its business as presently conducted and as proposed to be
conducted; and

 

(c)                                  such Person has not incurred debts, and
does not intend to incur debts, beyond its ability to pay such debts as they
mature.

 

For purposes of this definition, “debt” means any
liability on a claim, and “claim” means (x) a right to payment, whether or
not such right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable,
secured, or

 

25

 

unsecured, or (y) a right to an equitable remedy
for breach of performance if such breach gives rise to a payment, whether or
not such right to an equitable remedy is reduced to judgment, fixed,
contingent, matured, unmatured, disputed, undisputed, secured or unsecured. With
respect to any such contingent liabilities, such liabilities shall be computed
at the amount which, in light of all the facts and circumstances existing at
the time, represents the amount which can reasonably be expected to become an
actual or matured liability.

 

“Spot Rate” for a currency means the rate
reasonably determined by the Administrative Agent to be the spot rate for the
purchase by the Administrative Agent of such currency with another currency
through its principal foreign exchange trading office at approximately 11:00 a.m.
on the date the foreign exchange computation is made; provided that the
Administrative Agent may obtain such spot rate from another financial
institution designated by the Administrative Agent if the Administrative Agent
does not have as of the date of determination a spot buying rate for any such
currency.

 

“Subordinated Debt” means:

 

(a)                                  the Existing Subordinated Debt;  and

 

(b)                                 any other Indebtedness of Parent or the
Company which according to its terms is, or in any manner purports to be,
contractually subordinated to the Obligations.

 

“Subsidiary” of a Person means a corporation,
partnership, joint venture, limited liability company or other business entity
of which a majority of the shares of securities or other interests having
ordinary voting power for the election of directors or other governing body
(other than securities or interests having such power only by reason of the
happening of a contingency) are at the time beneficially owned, or the
management of which is otherwise controlled, directly, or indirectly through
one or more intermediaries, or both, by such Person.

 

“Swing Lines” means one or more revolving lines
of credit established by the Swing Line Lenders in favor of Borrowers pursuant
to Section 2.5.

 

“Swing Line Advances” means Advances made by
the Swing Line Lenders to any of the Borrowers pursuant to Section 2.5.

 

“Swing Line Documents” means the promissory
notes and any other documents executed by Borrowers in favor of the Swing Line
Lenders in connection with the Swing Lines.

 

“Swing Line Lenders” means (a) initially
Bank of America, and (b) any of the other Lenders designated by the
Borrowers from time to time in a writing delivered to the Administrative Agent,
provided that not more than three Lenders shall be Swing Line Lenders at
any time.

 

“Swing Line Outstandings” means, as of any date
of determination, the aggregate principal Indebtedness of Borrowers on all
Swing Line Advances then outstanding.

 

“Syndication Agent” means Deutsche Bank Trust
Company Americas. Deutsche Bank Trust Company Americas shall not have any
additional rights, duties or obligations under this Agreement or the other Loan
Documents by reason of its being a Syndication Agent.

 

26

 

“Taxes” means all present or future taxes,
levies, imposts, duties, deductions, withholdings, assessments, fees or other
charges imposed by any Governmental Agency, including any interest, additions
to tax or penalties applicable thereto.

 

27

 

“Total Debt” means, as of any date of
determination, (y) the sum (without duplication) of:

 

(a)                                  the outstanding principal Indebtedness of
Parent and the Restricted Subsidiaries for borrowed money (including debt
securities issued by Parent or any of the Restricted Subsidiaries) on that
date; plus

 

(b)                                 the aggregate amount of all Capital Lease
Obligations of Parent and the Restricted Subsidiaries on that date; plus

 

(c)                                  all obligations in respect of letters of
credit or other similar instruments for which Parent or any of the Restricted
Subsidiaries are account parties or are otherwise obligated; plus

 

(d)                                 the aggregate amount of all Contingent
Obligations and other similar contingent obligations of Parent and the
Restricted Subsidiaries with respect to any of the foregoing; plus

 

(e)                                  any obligations of Parent or any of the
Restricted Subsidiaries to the extent that the same are secured by a Lien on
any of the assets of Parent or the Restricted Subsidiaries;

 

minus

 

(z)                                   Distributed EBITDA Loans held by an
Unrestricted Subsidiary and with an aggregate balance (including accrued
interest) not to exceed $250,000,000, but only for so long as neither the
Unrestricted Subsidiary which is the creditor in respect of such Distributed
EBITDA Loans nor any of its Subsidiaries is in default to any creditor holding
Indebtedness in an aggregate principal amount which is in excess of
$25,000,000.

 

In computing “Total Debt,” the amount of any
Contingent Obligation or letter of credit shall be deemed to be zero unless and
until (1) in the case of obligations in respect of letters of credit, a
drawing is made with respect thereto and (2) in the case of any other
Contingent Obligations, demand for payment is made with respect thereto.

 

“Total Debt Ratio” means, as of the last day of
any Fiscal Quarter, the ratio of:

 

(a)                                  Total Debt on that date; to

 

(b)                                 Adjusted EBITDA for the four Fiscal
Quarter period ending on that date plus in the case of the period ending
June 30, 2006, the Anticipated Synergies.

 

“type”, when used with respect to any Loan or
Advance, means the designation of whether such Loan or Advance is a Base Rate
Loan or Advance, or a Eurodollar Rate Loan or Advance.

 

“Total Outstandings” means the aggregate
Outstanding Amount of all Loans and all L/C Obligations.

 

“Unreimbursed Amount” has the meaning specified
in Section 2.4(g).

 

28

 

“Unrestricted EBITDA” means, for any period,
the combined net income of the Unrestricted Subsidiaries for such period
determined in accordance with GAAP plus (in each case to the extent
deducted in determining such net income):

 

(a)                                  income taxes;

 

(b)                                 Interest Expense;

 

(c)                                  depreciation and amortization;

 

(d)                                 minority interest;

 

(e)                                  extraordinary losses (or minus
extraordinary gains); and

 

(f)                                    nonrecurring non-cash charges, and after
deduction of any nonrecurring non-cash gains.

 

“Unrestricted Subsidiary” means each Subsidiary
of Parent which is so designated following the Effective Date in accordance
with Section 2.10. As of the Effective Date, there are no Unrestricted
Subsidiaries.

 

“Wholly-Owned Subsidiary” means any Person 100%
of whose capital stock, partnership interests, membership interests or other
forms of equity ownership interest (other than directors qualifying shares and
similar interests) is at the time owned, directly or indirectly, by Parent.

 

1.2                                 Use of Defined Terms. Any defined term used in the plural
shall refer to all members of the relevant class, and any defined term used in
the singular shall refer to any one or more of the members of the relevant
class.

 

1.3                                 Accounting Terms. All accounting terms not specifically
defined in this Agreement shall be construed in conformity with, and all
financial data required to be submitted by this Agreement shall be prepared in
conformity with, Generally Accepted Accounting Principles applied on a
consistent basis, except as otherwise specifically prescribed herein. In the
event that Generally Accepted Accounting Principles change during the term of
this Agreement such that the covenants contained in Sections 6.5 and 6.6
would then be calculated in a different manner or with different components,

 

(a)                                  Parent, Borrowers and the Lenders agree
to amend this Agreement in such respects as are necessary to conform those
covenants as criteria for evaluating Parent’s consolidated financial condition
to substantially the same criteria as were effective prior to such change in
Generally Accepted Accounting Principles, and

 

(b)                                 Parent and Borrowers shall be deemed to
be in compliance with the covenants contained in the aforesaid Sections during
the 90 day period following any such change in Generally Accepted Accounting
Principles if and to the extent that Parent and Borrowers would have been in
compliance therewith under Generally Accepted Accounting Principles as in
effect immediately prior to such change.

 

1.4                                 Rounding. Any financial ratios required to be maintained by
Parent and Borrowers pursuant to this Agreement shall be calculated by dividing
the appropriate component by the other component, carrying the result to one
place more than the number of places by which such ratio is

 

29

 

expressed
in this Agreement and rounding the result up or down to the nearest number
(with a round-up if there is no nearest number) to the number of places by
which such ratio is expressed in this Agreement.

 

1.5                                 Exhibits and Schedules. All Exhibits and Schedules to this
Agreement, either as originally existing or as the same may from time to
time be supplemented, modified or amended, are incorporated herein by this
reference. A matter disclosed on any Schedule shall be deemed disclosed on
all Schedules.

 

1.6                                 Other Interpretive Provisions. With reference to this Agreement and
each other Loan Document, unless otherwise specified herein or in such other
Loan Document:

 

(a)                                  The definitions of terms herein shall
apply equally to the singular and plural forms of the terms defined. Whenever
the context may require, any pronoun shall include the corresponding
masculine, feminine and neuter forms. The words “include,” “includes” and “including”
shall be deemed to be followed by the phrase “without limitation.”  The word “will” shall be construed to have
the same meaning and effect as the word “shall.”  Unless the context requires otherwise,

 

(i)                                     any definition of or reference to any
agreement, instrument or other document shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document),

 

(ii)                                  any reference herein to any Person shall
be construed to include such Person’s successors and assigns,

 

(iii)                               the words “herein,” “hereof” and “hereunder,”
and words of similar import when used in any Loan Document, shall be construed
to refer to such Loan Document in its entirety and not to any particular
provision thereof,

 

(iv)                              all references in a Loan Document to
Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document in
which such references appear,

 

(v)                                 any reference to any law shall include
all statutory and regulatory provisions consolidating, amending replacing or
interpreting such law and any reference to any law or regulation shall, unless
otherwise specified, refer to such law or regulation as amended, modified or
supplemented from time to time, and

 

(vi)                              the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all tangible
and intangible assets and properties, including Cash, securities, accounts and
contract rights.

 

(b)                                 In the computation of periods of time
from a specified date to a later specified date, the word “from” means “from
and including;” the words “to” and “until” each mean “to but excluding;” and
the word “through” means “to and including.”

 

(c)                                  The use of the word “or” is not
exclusive.

 

30

 

1.7                                 Letter of Credit Amounts. Unless otherwise specified herein, the
amount of a Letter of Credit at any time shall be deemed to be the Dollar
Equivalent of the stated amount of such Letter of Credit in effect at such
time; provided, however, that with respect to any Letter of
Credit that, by its terms or the terms of any Issuer Document related thereto,
provides for one or more automatic increases in the stated amount thereof, the
amount of such Letter of Credit shall be deemed to be the Dollar Equivalent of
the maximum stated amount of such Letter of Credit after giving effect to all
such increases, whether or not such maximum stated amount is in effect at such
time.

 

1.8                                 Times of Day. Unless otherwise specified, all
references herein to times of day shall be references to Las Vegas, Nevada
local time (daylight or standard, as applicable).

 

1.9                                 Exchange Rates. The Administrative Agent shall
determine the Spot Rates as of each Revaluation Date to be used for calculating
Dollar Equivalent amounts of L/C Credit Extensions and outstanding L/C
Obligations denominated in L/C Alternative Currencies. Such Spot Rates shall
become effective as of such Revaluation Date and shall be the Spot Rates
employed in converting any amounts between the applicable currencies until the
next Revaluation Date to occur. Except for purposes of financial statements
delivered by Loan Parties hereunder or calculating financial covenants
hereunder or except as otherwise provided herein, the applicable amount of any
currency (other than Dollars) for purposes of the Loan Documents shall be such
Dollar Equivalent amount as so determined by the Administrative Agent.

 

1.10                           Additional L/C Alternative Currencies.

 

(a)                                  The Borrowers may from time to time
request that Letters of Credit be issued in a currency other than those
specifically listed in the definition of “L/C Alternative Currency;” provided
that each such requested currency is a lawful currency (other than Dollars)
that is readily available and freely transferable and convertible into Dollars.
Each such request shall be subject to the approval of both the Administrative
Agent and the relevant Issuing Lender.

 

(b)                                 Any such request shall be made to the
Administrative Agent not later than 11:00 a.m., 20 Business Days prior to
the date of the desired L/C Credit Extension (or such other time or date as may be
agreed by the Administrative Agent and the relevant Issuing Lender in their
sole discretion). The Administrative Agent shall promptly notify the relevant
Issuing Lender thereof. The relevant Issuing Lender shall notify the
Administrative Agent, not later than 11:00 a.m., ten Business Days after
receipt of such request whether it consents, in its sole discretion, to the
issuance of Letters of Credit, as the case may be, in such requested
currency.

 

(c)                                  Any failure by the relevant Issuing
Lender to respond to such request within the time period specified in the
preceding sentence shall be deemed to be a refusal by such Issuing Lender to
permit Letters of Credit to be issued in such requested currency. If the
Administrative Agent and the relevant Issuing Lender consent to the issuance of
Letters of Credit in such requested currency, the Administrative Agent shall so
notify the Borrowers and such currency shall thereupon be deemed for all
purposes to be a L/C Alternative Currency hereunder for purposes of any Letter
of Credit issuances. If the Administrative Agent shall fail to obtain consent
to any request for an additional currency under this Section 1.10, the
Administrative Agent shall promptly so notify the Borrowers.

 

31

 

ARTICLE 2

LOANS AND LETTERS OF
CREDIT

 

2.1                                 Committed Loans - General.

 

(a)                                  Subject to the terms and conditions set
forth in this Agreement, at any time and from time to time from the Effective
Date through (but excluding) the Maturity Date, each Lender shall, pro rata
according to that Lender’s Applicable Percentage of the then applicable
Aggregate Commitment, make Committed Advances in Dollars to Borrowers in such
amounts as any Borrower may request provided that:

 

(i)                                     giving effect to such Advances, the Total
Outstandings shall not exceed the Aggregate Commitments at any time; and

 

(ii)                                  without the consent of all of the
Lenders, the Total Outstandings of each Borrower hereafter designated as such
pursuant to Section 2.9 shall not exceed that Borrower’s Aggregate
Sublimit at any time. Subject to the limitations set forth herein, each of the
Borrowers may borrow, repay and reborrow under the Aggregate Commitments
without premium or penalty.

 

(b)                                 Subject to the next sentence, each
Committed Loan shall be made pursuant to a Request for Loan executed by the
relevant Borrower which shall specify the requested:

 

(i)                                   date
of such Loan;

 

(ii)                                  type of Loan;

 

(iii)                               amount of such Loan; and

 

(iv)                              in the case of a Eurodollar Rate Loan,
the Interest Period for such Loan.

 

Unless the Administrative Agent has notified, in its
sole and absolute discretion, Borrowers to the contrary, a Loan may be
requested by telephone by a Responsible Official of any Borrower, in which case
that Borrower shall confirm such request by promptly delivering a Request for
Loan in person or by telecopier conforming to the preceding sentence to the
Administrative Agent. The Administrative Agent shall incur no liability
whatsoever hereunder in acting upon any telephonic request for loan purportedly
made by a Responsible Official of a Borrower, and each Borrower hereby jointly
and severally (but as between Borrowers, ratably) agrees to indemnify the
Administrative Agent from any loss, cost, expense or liability as a result of
so acting.

 

(c)                                  Promptly following receipt of a Request
for Loan, the Administrative Agent shall notify each Lender of any Loan
requested by telephone or telecopier (and if by telephone, promptly confirmed
by telecopier) of the identity of the relevant Borrower, the date and type of
the Loan, the applicable Interest Period, and that Lender’s Applicable
Percentage of the requested Loan. Not later than 12:00 noon, Las Vegas local
time, on the date specified for any Loan (which must be a Business Day), each
Lender shall make its Applicable Percentage of the Committed Loan in
immediately available funds available to the Administrative Agent at the
Administrative Agent’s Office. Upon satisfaction or waiver of the applicable
conditions set forth in Article 8, all Committed Advances shall

 

32

 

be
credited on that date in immediately available funds to the Designated Deposit
Account.

 

(d)                                 Unless the Requisite Lenders otherwise
consent, each Committed Loan shall be an integral multiple of $1,000,000 and
shall be not less than $10,000,000.

 

(e)                                  The Committed Advances made by each
Lender to each Borrower may be evidenced by a Committed Advance Note
issued by that Borrower and made payable to that Lender. The Borrowers shall,
promptly upon request by any Lender, issue a Committed Advance Note to that
Lender to evidence the Committed Advances made by that Lender in the amount of
that Lender’s Commitment, but there shall be no requirement for the issuance of
notes hereunder (except to the extent so requested by a Lender).

 

(f)                                    A Request for Loan shall be irrevocable
upon the Administrative Agent’s first notification thereof.

 

(g)                                 If no Request for Loan (or telephonic
request for loan referred to in the second sentence of Section 2.1(b), if
applicable) has been made within the requisite notice periods set forth in
Sections 2.2 or 2.3 in connection with a Loan which, if made and giving
effect to the application of the proceeds thereof, would not increase the
outstanding principal Indebtedness evidenced by the Committed Advance Notes of
the relevant Borrower, then that Borrower shall be deemed to have requested, as
of the date upon which the related then outstanding Loan is due pursuant to Section 3.1(e)(i),
a Base Rate Loan in an amount equal to the amount necessary to cause the
outstanding principal Indebtedness evidenced by such Committed Advance Notes to
remain the same and the Lenders shall make the Advances necessary to make such
Loan notwithstanding Sections 2.1(b), 2.2 and 2.3.

 

2.2                                 Base Rate Loans. Each request by a Borrower for a Base
Rate Loan shall be made pursuant to a Request for Loan (or telephonic or other
request for loan referred to in the second sentence of Section 2.1(b), if
applicable) received by the Administrative Agent, at the Administrative Agent’s
Office, not later than 10:00 a.m. Las Vegas local time, on the date (which
must be a Business Day) of the requested Base Rate Loan. All Committed Loans
shall constitute Base Rate Loans unless properly designated as a Eurodollar
Rate Loan pursuant to Section 2.3.

 

2.3                                 Eurodollar Rate Loans.

 

(a)                                  Each request by a Borrower for a
Eurodollar Rate Loan shall be made pursuant to a Request for Loan (or
telephonic or other request for loan referred to in the second sentence of Section 2.1(b),
if applicable) received by the Administrative Agent, at the Administrative
Agent’s Office, not later than 10:00 a.m., Las Vegas local time, at
least three Eurodollar Business Days before the first day of the applicable
Interest Period.

 

(b)                                 On the date which is two Eurodollar
Business Days before the first day of the applicable Interest Period, the
Administrative Agent shall confirm its determination of the applicable
Eurodollar Rate (which determination shall be conclusive in the absence of
manifest error) and promptly shall give notice of the same to Borrowers and the
applicable Lenders by telephone or telecopier (and if by telephone, promptly
confirmed by telecopier).

 

33

 

(c)                                  Unless the Administrative Agent and the
Requisite Lenders otherwise consent, no more than twenty Eurodollar Rate Loans
shall be outstanding at any one time.

 

(d)                                 No Eurodollar Rate Loan may be
requested during the existence of a Default or Event of Default.

 

(e)                                  No Lender shall be required to obtain the
funds necessary to fund its Eurodollar Rate Advances in the Designated
Eurodollar Market or from any other particular source of funds, rather each
Lender shall be free to obtain such funds from any legal source.

 

2.4                                 Letters of Credit.

 

(a)                                  From time to time, each Lender which has
agreed with the Borrowers to be designated as an Issuing Lender hereunder
agrees to issue Letters of Credit in Dollars or in one or more L/C Alternative
Currencies for the account of Parent, the Borrowers or any of their Restricted
Subsidiaries in accordance with this Section 2.4. No Lender will be
obligated to agree to be designated as an Issuing Lender, provided that
Bank of America has agreed to act as an Issuing Lender. On the Effective Date,
each of the Existing Letters of Credit designated in accordance with Section 8.1(a)(xi)
shall continue to be outstanding hereunder, but the risk participations therein
shall be adjusted to give effect to the relative interests of the Lenders in
the Aggregate Commitments of each Lender hereunder (as in effect on the
Effective Date), and each issuer of a Existing Letter of Credit hereby consents
to the termination, concurrently with the Effective Date, of the participation
therein of each of the lenders under the Existing Credit Agreement which is not
a party to this Agreement.

 

(b)                                 Subject to the terms and conditions
hereof, at any time and from time to time from the Effective Date through the
day prior to the Maturity Date, any one or more of the Borrowers may request
that any one or more of the Lenders issue, as Issuing Lender, additional
Letters of Credit under the Aggregate Commitments denominated in Dollars or in
one or more L/C Alternative Currencies by submission of a Request for Letter of
Credit and an Application for Letter of Credit to such Issuing Lender (with a
copy to the Administrative Agent); provided that giving effect to all
such Letters of Credit, (i) the Total Outstandings shall not exceed the
Aggregate Commitments at any time, (ii) without the consent of all of the
Lenders, the aggregate principal amount of the Total Outstandings of each
Borrower hereafter designated as such pursuant to Section 2.9 shall not
exceed that Borrower’s Aggregate Sublimit at any time, and (iii) the
Outstanding Amount of the L/C Obligations shall not exceed the Letter of Credit
Sublimit. Each Letter of Credit shall be in a form reasonably acceptable
to the relevant Issuing Lender. Unless all the Lenders otherwise consent in a
writing delivered to the Administrative Agent, no Letter of Credit shall have a
term which extends beyond the day which is five days prior to the Maturity
Date.

 

(c)                                  Each Request for Letter of Credit and
Application for Letter of Credit shall be submitted to the relevant Issuing
Lender, with a copy to the Administrative Agent, not later than 8:00 a.m.
at least five Business Days prior to the date upon which the related Letter of
Credit is proposed to be issued (or such shorter period as may be
acceptable to the relevant Issuing Lender, but in any event providing not less
than one Business Day’s notice to the Administrative Agent). The Administrative
Agent shall promptly notify the relevant Issuing Lender whether such Request
for Letter of Credit, and the issuance of a Letter of Credit pursuant thereto,
conforms to the requirements of this Agreement (and no

 

34

 

Lender
shall purport to issue a Letter of Credit hereunder prior to its receipt of
such confirmation in respect of the proposed Letter of Credit). Upon issuance,
amendment to or extension of a Letter of Credit, the relevant Issuing Lender
shall promptly notify the Administrative Agent, and the Administrative Agent
shall promptly notify the Lenders, of the amount and terms thereof.

 

(d)                                 On the Effective Date, each Lender shall
be deemed to have purchased a pro rata participation in each Existing Letter of
Credit from the relevant Issuing Lender in an amount equal to that Lender’s
Applicable Percentage times the amount of such Existing Letter of Credit. Upon
the issuance of each other Letter of Credit, each Lender shall be deemed to
have purchased a pro rata participation in such Letter of Credit from the
relevant Issuing Lender in an amount equal to that Lender’s Applicable
Percentage times the amount of such Letter of Credit (expressed in Dollars in
the amount of the Dollar Equivalent thereof in the case of a Letter of Credit
denominated in a L/C Alternative Currency). Without limiting the scope and
nature of each Lender’s participation in any Letter of Credit, to the extent
that the relevant Issuing Lender has not been reimbursed by the Borrower which
is the account party for any Letter of Credit for any payment required to be
made by the relevant Issuing Lender thereunder, each Lender shall, according to
its Applicable Percentage of the unreimbursed drawing (expressed in Dollars in
the amount of the Dollar Equivalent thereof in the case of a Letter of Credit
denominated in a L/C Alternative Currency), reimburse the relevant Issuing
Lender, in Dollars, through the Administrative Agent promptly upon demand for
the amount of such payment. The obligation of each Lender to so reimburse the
relevant Issuing Lender shall be absolute and unconditional and shall not be
affected by the occurrence of an Event of Default or any other occurrence or
event. Any such reimbursement shall not relieve or otherwise impair the
obligation of Borrowers to reimburse the relevant Issuing Lender for the amount
of any payment made by the relevant Issuing Lender under any Letter of Credit
together with interest as hereinafter provided.

 

(e)                                  Promptly and in any event within one
Business Day following any drawing upon a Letter of Credit, the Issuing Lender
for that Letter of Credit shall provide notice thereof to the Administrative
Agent. Each Borrower agrees to pay to the relevant Issuing Lender, in Dollars,
through the Administrative Agent an amount (expressed in Dollars in the amount
of the Dollar Equivalent thereof in the case of a Letter of Credit denominated
in a L/C Alternative Currency) equal to any payment made by the relevant
Issuing Lender with respect to each Letter of Credit within one Business Day
after demand made by the relevant Issuing Lender therefor, together with
interest on such amount from the date of any payment made by the relevant
Issuing Lender at the rate applicable to Base Rate Loans for three Business
Days and thereafter at the Default Rate. The Administrative Agent shall remit
the funds so received to the relevant Issuing Lender in Dollars. In the case of
any such reimbursement under a Letter of Credit denominated in a L/C
Alternative Currency, the Administrative Agent shall notify the Borrowers of
the Dollar Equivalent of the amount of the drawing promptly following the
determination thereof. The principal amount of any such payment shall be used
to reimburse the relevant Issuing Lender for the payment made by it under the
Letter of Credit and, to the extent that the Lenders have not reimbursed the
relevant Issuing Lender pursuant to Section 2.4(d), the interest amount of
any such payment shall be for the account of the relevant Issuing Lender. Each
Lender that has reimbursed the relevant Issuing Lender pursuant to Section 2.4(d) for
its Applicable Percentage of any payment made by the relevant Issuing Lender
under a Letter of Credit shall thereupon acquire a pro rata participation, to
the extent of such reimbursement, in the claim of the relevant Issuing Lender
against

 

35

 

Borrowers
for reimbursement of principal and interest under this Section 2.4(e) and
shall share, in accordance with that pro rata participation, in any principal
payment made by Borrowers with respect to such claim and in any interest
payment made by Borrowers (but only with respect to periods subsequent to the
date such Lender reimbursed the relevant Issuing Lender) with respect to such
claim.

 

(f)                                    Each Borrower may, pursuant to a Request
for Loan, request that Advances be made pursuant to Section 2.1(b) to
provide funds for the payment required by Section 2.4(e) and, for
this purpose, the conditions precedent set forth in Article 8 shall not
apply. The proceeds of such Advances shall be paid directly by the
Administrative Agent to the relevant Issuing Lender to reimburse it for the
payment made by it under the Letter of Credit.

 

(g)                                 If Borrowers fail to make the payment
required by Section 2.4(e) within the time period therein set forth,
in lieu of the reimbursement to the relevant Issuing Lender under Section 2.4(d) the
relevant Issuing Lender may (but is not required to), without notice to or
the consent of Borrowers, require that the Administrative Agent request that
the Lenders make Advances under the Aggregate Commitments in an aggregate
amount equal to the amount (expressed in Dollars in the amount of the Dollar
Equivalent thereof in the case of a Letter of Credit denominated in a L/C
Alternative Currency)  paid by that
Issuing Lender with respect to that Letter of Credit (the “Unreimbursed
Amount”) and, for this purpose, the conditions precedent set forth in Article 8
shall not apply. The proceeds of such Advances shall be paid by the
Administrative Agent directly to the relevant Issuing Lender to reimburse it
for the payment made by it under the Letter of Credit.

 

(h)                                 The issuance of any supplement, modification,
amendment or extension to or of any Letter of Credit shall be treated in all
respects the same as the issuance of a new Letter of Credit.

 

(i)                                     The obligation of Borrowers to pay to
each Issuing Lender the amount of any payment made by that Issuing Lender under
any Letter of Credit shall be absolute, unconditional, and irrevocable. Without
limiting the foregoing, Borrowers’ obligations shall not be affected by any of
the following circumstances:

 

(i)                                     any lack of validity or enforceability of
the Letter of Credit, this Agreement, or any other agreement or instrument
relating thereto;

 

(ii)                                  any amendment or waiver of or any consent
to departure from the Letter of Credit, this Agreement, or any other agreement
or instrument relating thereto;

 

(iii)                               the existence of any claim, setoff,
defense, or other rights which any Borrower may have at any time against
any Issuing Lender or any other Creditor, any beneficiary of the Letter of
Credit (or any persons or entities for whom any such beneficiary may be acting)
or any other Person, whether in connection with the Letter of Credit, this
Agreement, or any other agreement or instrument relating thereto, or any
unrelated transactions;

 

(iv)                              any demand, statement, or any other
document presented under the Letter of Credit proving to be forged, fraudulent,
invalid, or insufficient in any respect or any statement therein being untrue
or inaccurate in any respect whatsoever;

 

36

 

(v)                                 payment by the relevant Issuing Lender
under the Letter of Credit against presentation of a draft or any accompanying
document which does not strictly comply with the terms of the Letter of Credit;

 

(vi)                              the existence, character, quality,
quantity, condition, packing, value or delivery of any Property purported to be
represented by documents presented in connection with any Letter of Credit or
any difference between any such Property and the character, quality, quantity,
condition, or value of such Property as described in such documents;

 

(vii)                           the time, place, manner, order or
contents of shipments or deliveries of Property as described in documents
presented in connection with any Letter of Credit or the existence, nature and
extent of any insurance relative thereto;

 

(viii)                        the solvency or financial responsibility
of any party issuing any documents in connection with a Letter of Credit;

 

(ix)                                any failure or delay in notice of
shipments or arrival of any Property;

 

(x)                                   any error in the transmission of any
message relating to a Letter of Credit not caused by the relevant Issuing
Lender, or any delay or interruption in any such message;

 

(xi)                                any consequence arising from acts of God,
war, insurrection, civil unrest, disturbances, labor disputes, emergency
conditions or other causes beyond the control of the relevant Issuing Lender;

 

(xii)                             so long as the relevant Issuing Lender in
good faith determines that the contract or document appears to comply with the
terms of the Letter of Credit, the form, accuracy, genuineness or legal effect
of any contract or document referred to in any document submitted to the
relevant Issuing Lender in connection with a Letter of Credit; and

 

(xiii)                          where the relevant Issuing Lender has
acted in good faith and observed general banking usage, any other circumstances
whatsoever.

 

(j)                                     Each Issuing Lender shall be entitled to
the protection accorded to the Administrative Agent pursuant to Article 10,
mutatis  mutandis.

 

(k)                                  Unless otherwise expressly agreed by an
Issuing Lender and a Borrower when a Letter of Credit is issued (including any
such agreement applicable to an Existing Letter of Credit), such Letter of
Credit shall provide that (i) the rules of the ISP shall apply to it
if it is a standby Letter of Credit, and (ii) the rules of the Uniform Customs
and Practice for Documentary Credits, as most recently published by the
International Chamber of Commerce (the “ICC”) at the time of issuance
shall apply to it if it is a commercial Letter of Credit.

 

(l)                                     No Issuing Lender shall be under any
obligation to issue any Letter of Credit if:

 

(i)                                     any order, judgment or decree of any
Governmental Agency or arbitrator shall by its terms purport to enjoin or
restrain such Issuing Lender from issuing such

 

37

 

Letter
of Credit, or any Law applicable to such Issuing Lender or any request or
directive (whether or not having the force of law) from any Governmental Agency
with jurisdiction over such Issuing Lender shall prohibit, or request that such
Issuing Lender refrain from, the issuance of letters of credit generally or
such Letter of Credit in particular or shall impose upon such Issuing Lender
with respect to such Letter of Credit any restriction, reserve or capital
requirement (for which such Issuing Lender is not otherwise compensated
hereunder) not in effect on the Effective Date, or shall impose upon such
Issuing Lender any unreimbursed loss, cost or expense which was not applicable
on the Effective Date and which such Issuing Lender in good faith deems
material to it;

 

(ii)                                  the issuance of such Letter of Credit
would violate one or more policies of such Issuing Lender applicable to letters
of credit generally;

 

(iii)                               except as otherwise agreed by the
Administrative Agent and the relevant Issuing Lender, such Letter of Credit is to
be denominated in a currency other than Dollars or a L/C Alternative Currency;
or

 

(iv)                              the Issuing Lender does not as of the
issuance date of such requested Letter of Credit issue Letters of Credit in the
requested currency.

 

(m)                               If any Lender fails to make available to
the Administrative Agent for the account of any Issuing Lender any amount, in
Dollars, required to be paid by such Lender pursuant to the foregoing
provisions of Sections 2.4(d) or 2.4(g), such Issuing Lender shall be
entitled to recover from such Lender (acting through the Administrative Agent),
on demand, such amount with interest thereon for the period from the date such
payment is required to the date on which such payment is immediately available
to such Issuing Lender at a rate per annum equal to the greater of the Federal
Funds Rate and a rate determined by such Issuing Lender in accordance with
banking industry rules on interbank compensation, plus any administrative,
processing or similar fees customarily charged by such Issuing Lender in
connection with the foregoing. If such Lender pays such amount (with interest
and fees as aforesaid), the amount so paid shall constitute such Lender’s Loan
included in the relevant Borrowing or L/C Advance in respect of the relevant
L/C Borrowing, as the case may be. A certificate of any Issuing Lender
submitted to any Lender (through the Administrative Agent) with respect to any
amounts owing under this clause (m) shall be conclusive absent manifest error.

 

(n)                                 If any Borrower so requests in any applicable
Letter of Credit Application, the relevant Issuing Lender may, in its sole and
absolute discretion, agree to issue a Letter of Credit that permits the
automatic reinstatement of all or a portion of the stated amount thereof after
any drawing thereunder (each, an “Auto-Reinstatement Letter of Credit”); provided,
however, no such Auto-Reinstatement Letter of Credit shall be issued by
any Issuing Lender without the prior written consent of the Administrative
Agent if the aggregate amount of Auto-Reinstatement Letters of Credit
(calculated in accordance with Section 1.7) exceeds $110,000,000. Unless
otherwise directed by the Issuing Lender, the Borrowers shall not be required
to make a specific request to the Issuing Lender to permit such reinstatement. Once
an Auto-Reinstatement Letter of Credit has been issued, except as provided in
the following sentence, the Lenders shall be deemed to have authorized (but may not
require) the Issuing Lender to reinstate all or a portion of the stated amount
thereof in accordance with the provisions of such Letter of Credit. Notwithstanding
the foregoing, if such Auto-Reinstatement Letter of Credit permits the Issuing
Lender to

 

38

 

decline
to reinstate all or any portion of the stated amount thereof after a drawing
thereunder by giving notice of such non-reinstatement within a specified number
of days after such drawing (the “Non-Reinstatement Deadline”), the Issuing
Lender shall not permit such reinstatement if it has received a notice (which may be
by telephone or in writing) on or before the day that is five Business Days
before the Non-Reinstatement Deadline (A) from the Administrative Agent
that the Requisite Lenders have elected not to permit such reinstatement or (B) from
the Administrative Agent, any Lender or any Borrower that one or more of the
applicable conditions specified in Section 8.2 is not then satisfied
(treating such reinstatement as an L/C Credit Extension for purposes of this
clause) and, in each case, directing the Issuing Lender not to permit such
reinstatement.

 

2.5                                 Swing Lines.

 

(a)                                  From time to time, each Lender which has
agreed with the Borrowers to be designated as a Swing Line Lender agrees to
make Swing Line Advances to the Borrowers in accordance with this Section 2.5.
No Lender will be obligated to agree to be designated as a Swing Line Lender, provided
that Bank of America has agreed to act as a Swing Line Lender as set forth in
the Swing Line Documents between Bank of America and the Company in effect on
the date hereof.

 

(b)                                 Subject to the terms and conditions set
forth herein, each Swing Line Lender agrees, in reliance upon the agreements of
the other Lenders set forth in this Section 2.5, to make Swing Line
Advances in Dollars to any Borrower from time to time from the Effective Date
through the Business Day prior to the Maturity Date in such amounts as that
Borrower may request, provided that:

 

(i)                                     after giving effect to such Swing Line
Advance, the aggregate Swing Line Outstandings owed to all Swing Line Lenders
shall not exceed $150,000,000;

 

(ii)                                  after giving effect to such Swing Line
Advance, the Total Outstandings shall not exceed the Aggregate Commitments at
any time;

 

(iii)                               without the consent of all of the
Lenders, no Swing Line Advance may be made during the continuation of any
Default or Event of Default;

 

(iv)                              without the consent of all of the
Lenders, the Total Outstandings of each Borrower designated as such in
accordance with Section 2.9 shall not exceed the Aggregate Sublimit for
that Borrower at any time; and

 

(v)                                 the relevant Swing Line Lender has not
given at least twenty-four hours prior notice to the Parent that availability
under its Swing Line is suspended or terminated.

 

Borrowers may borrow, repay and reborrow under this
Section 2.5. Unless notified to the contrary by the relevant Swing Line
Lender, borrowings under each Swing Line may be made in amounts which are
integral multiples of $100,000 upon telephonic request by a Responsible
Official of any Borrower made to the relevant Swing Line Lender (with a copy to
the Administrative Agent) not later than 1:00 p.m., Las Vegas local time,
on the Business Day of the requested Swing Line Advance (which telephonic
request shall be promptly confirmed in writing by telecopier). Promptly after
receipt of such a request for a Swing Line Advance, the Administrative Agent
shall provide telephonic verification to

 

39

 

the relevant Swing Line Lender that, after giving
effect to such request, the Total Outstandings shall not exceed the Aggregate
Commitments (and such verification shall be promptly confirmed in writing by
telecopier). No Swing Line Lender shall make any Swing Line Advance without
receipt of such confirmation.

 

Unless the relevant Swing Line Lender otherwise
agrees, each repayment of a Swing Line Advance shall be in an amount which is
an integral multiple of $100,000. If a Borrower instructs a Swing Line Lender
to debit any deposit account with that Swing Line Lender in the amount of any
payment with respect to a Swing Line Advance, or that Swing Line Lender
otherwise receives repayment, after 3:00 p.m., Las Vegas local time, on a
Business Day, such payment shall be deemed received on the next Business Day.

 

Each Swing Line Lender shall promptly notify the
Administrative Agent of the Swing Line Outstandings each time there a payment
or other change therein.

 

(c)                                  Swing Line Advances shall bear interest
at the rate agreed to from time to time between the Borrowers and the relevant
Swing Line Lender (or, if not otherwise specified at a fluctuating rate per
annum equal to that applicable from time to time for Base Rate Loans). Interest
shall be payable on such dates, not more frequent than monthly, as may be
specified by each Swing Line Lender and in any event on the Maturity Date. The
Swing Line Lenders shall be responsible for submitting invoices to the
Borrowers for such interest. The interest payable on Swing Line Advances shall
be solely for the account of the relevant Swing Line Lender unless and until
the Lenders fund their participations therein pursuant to Section 2.5(e) by
the making of Committed Loans hereunder.

 

(d)                                 The Swing Line Advances shall be payable
on demand made by the relevant Swing Line Lender and in any event on the
Maturity Date.

 

(e)                                  Upon the making of a Swing Line Advance,
each Lender shall be deemed to have purchased from the relevant Swing Line
Lender a participation therein in an amount equal to that Lender’s Applicable
Percentage times the amount of the Swing Line Advance. Upon demand made by any
Swing Line Lender, each Lender shall, according to its Applicable Percentage,
promptly provide to that Swing Line Lender its purchase price therefor in an
amount equal to its participation therein. The obligation of each Lender to so
provide its purchase price to the Swing Line Lenders shall be absolute and
unconditional (except only demand made by the relevant Swing Line Lender) and
shall not be affected by the occurrence of a Default or Event of Default; provided
that no Lender shall be obligated to purchase its Applicable Percentage of:

 

(i)                                     Swing Line Advances to the extent that
Swing Line Outstandings are in excess of $150,000,000; and

 

(ii)                                  any Swing Line Advance made (absent the
consent of all of the Lenders) when the relevant Swing Line Lender has written
notice that a Default or Event of Default has occurred and such Default or
Event of Default remains continuing or, to the extent that the relevant Swing
Line Advance is in excess of the amounts permitted hereby,  that Swing Line Lender failed to confirm that
the amount of that Swing Line Advance was permitted hereby.

 

40

 

Each Lender that has provided a Swing Line Lender with
the purchase price due for its participation in any Swing Line Advance shall
thereupon acquire a pro rata participation, to the extent of such payment, in
the claim of that Swing Line Lender against Borrowers for principal and
interest and shall share, in accordance with that pro rata participation, in
any principal payment made by Borrowers with respect to such claim and in any
interest payment made by Borrowers (but only with respect to periods subsequent
to the date such Lender paid the relevant Swing Line Lender its purchase price)
with respect to such claim.

 

(f)                                    Upon any demand for payment of the Swing
Line Outstandings by any Swing Line Lender, the relevant Borrower shall request
a Loan in an amount sufficient to repay all Swing Line Outstandings (and, for
this purpose, Section 2.1(d) shall not apply). In each case, the
Administrative Agent shall automatically provide the responsive Advances made
by each Lender to the Swing Line Lenders (which the Swing Line Lenders shall
then apply to the Swing Line Outstandings). In the event that any Borrower
fails to request a Loan within the time specified by Section 2.2 on any
such date, the Administrative Agent may, but shall not be required to, without
notice to or the consent of Borrowers, cause Advances to be made by the Lenders
to that Borrower in amounts which are sufficient to reduce the Swing Line
Outstandings as required above. The conditions precedent set forth in Article 8
shall not apply to Advances to be made by the Lenders pursuant to the three
preceding sentences. The proceeds of such Advances shall be paid by the
Administrative Agent directly to the Swing Line Lenders for application to the
Swing Line Outstandings.

 

(g)                                 If any Lender fails to make available to
the Administrative Agent for the account of a Swing Line Lender any amount required
to be paid by such Lender pursuant to the foregoing provisions of Sections 2.5(e) or
2.5(f), such Swing Line Lender shall be entitled to recover from such Lender
(acting through the Administrative Agent), on demand, such amount with interest
thereon for the period from the date such payment is required to the date on
which such payment is immediately available to the Swing Line Lender at a rate
per annum equal to the greater of the Federal Funds Rate and a rate determined
by such Swing Line Lender in accordance with banking industry rules on
interbank compensation, plus any administrative, processing or similar fees
customarily charged by such Swing Line Lender in connection with the foregoing.
If such Lender pays such amount (with interest and fees as aforesaid), the
amount so paid shall constitute such Lender’s Loan included in the relevant
Borrowing or funded participation in the relevant Swing Line Advance, as the
case may be. A certificate of a Swing Line Lender submitted to any Lender
(through the Administrative Agent) with respect to any amounts owing under this
clause shall be conclusive absent manifest error.

 

2.6                                 Voluntary Increase to the Aggregate
Commitments.

 

(a)                                  Provided that no Default or Event of
Default then exists, Parent and the Borrowers may, upon at least 30 days notice
to the Administrative Agent (which shall promptly provide a copy of such notice
to the Lenders), propose to increase the Aggregate Commitments to an aggregate
amount not to exceed $5,000,000,000 (the amount of any such increase of the
Aggregate Commitments being referred to as the “Increased Commitment”)
by the addition of Commitments from willing Lenders or Eligible Assignees. No
Lender shall be obligated to agree to an increase in its Commitment.

 

41

 

(b)                                 In connection with any such proposal,
Parent and the Borrowers may designate either any of the existing Lenders
or Persons which qualify as Eligible Assignees (which may be, but need not
be, existing Lenders) which agree to:

 

(i)                                     in the case of any such Person that is an
existing Lender, increase its Commitment; and

 

(ii)                                  in the case of any other such Person (an “Additional
Lender”), become a party to this Agreement and assume new Commitments.

 

(c)                                  An increase in the aggregate amount of
the Aggregate Commitments pursuant to this Section 2.6 shall become
effective upon the receipt by the Administrative Agent of an agreement in form and
substance satisfactory to the Administrative Agent signed by the Parent and the
Borrowers, by each Additional Lender and by each other Lender whose Commitment
is to be increased, setting forth the new Commitments of such Lenders and
setting forth the agreement of each Additional Lender to become a party to this
Agreement and to be bound by all the terms and provisions hereof, together with
such evidence of appropriate corporate authorization on the part of Parent
and the Borrowers and the Additional Lenders with respect to the Increased
Commitment as the Administrative Agent may reasonably request.

 

2.7                                 Voluntary Reduction of the Aggregate
Commitments. Borrowers
shall have the right, at any time and from time to time, without penalty or
charge, upon at least three Business Days prior written notice to the
Administrative Agent, voluntarily to reduce or to terminate, permanently and
irrevocably, in aggregate principal amounts in an integral multiple of
$1,000,000 but not less than $10,000,000, all or a portion of the then
undisbursed portion of the Aggregate Commitments, provided that any such reduction
or termination shall be accompanied by payment of all accrued and unpaid
commitment fees with respect to the portion of the Aggregate Commitments being
reduced or terminated. The Administrative Agent shall promptly notify the
Lenders of any reduction of the Aggregate Commitments under this Section 2.7.

 

2.8                                 Optional Termination of Aggregate
Commitments. Following
the occurrence of a Change in Control, the Requisite Lenders may in their
sole and absolute discretion elect to terminate the Aggregate Commitments,
during the sixty day period immediately subsequent to the later of (a) such
occurrence and (b) the earlier of:

 

(i)                                     receipt of Borrowers’ written notice to
the Administrative Agent of such occurrence; and

 

(ii)                                  if no such notice has been received by
the Administrative Agent, the date upon which the Administrative Agent and the
Lenders have actual knowledge of such Change in Control.

 

If Requisite Lenders
elect to terminate the Aggregate Commitments pursuant to the previous sentence,
the Aggregate Commitments shall be terminated effective on the date which is
sixty days subsequent to the date of written notice from the Administrative
Agent to Borrowers thereof, and:

 

(i)                                     to the extent that there are then any
Obligations outstanding, the same shall be immediately due and payable, and

 

42

 

(ii)                                  to the extent that any Letters of Credit
are then outstanding, Borrowers shall provide Cash collateral for the same.

 

2.9                                 Additional Borrowers. From time to time following the
Effective Date and when no Default or Event of Default exists, Parent and
Company (and each other Borrower then a party to this Agreement) may jointly
designate one or more additional Wholly-Owned Subsidiaries, which are organized
under the Laws of a State of the United States of America and which are not
Unrestricted Subsidiaries, as additional co-borrowers under the Aggregate
Commitments in accordance with the provisions of this Section 2.9. Prior
to the effectiveness of any such designation each such additional Borrower
shall have duly authorized, executed and delivered to the Administrative Agent
each of the following:

 

(a)                                  an Election to Become a Borrower, setting
forth the proposed Aggregate Sublimit for that Borrower, together with such
other documents, certificates, resolutions, opinions and other assurances as
the Administrative Agent may reasonably require in connection therewith;
and

 

(b)                                 Committed Advance Notes and Swing Line
Documents.

 

Promptly
following the submission of the foregoing documents, the Administrative Agent
shall inform the Lenders of the proposed designation and the proposed
Aggregate Sublimit for that Borrower. Unless the Requisite Lenders have
objected in writing to the proposed designee or Aggregate Sublimit within ten
Business Days following such notice from the Administrative Agent (which
objection may be in the sole discretion of each Lender), the
Administrative Agent shall notify the Borrowers that the appointment is
accepted, whereupon the proposed new Borrower shall be a Borrower for all
purposes of this Agreement, with the Aggregate Sublimit set forth in its
Election to Become a Borrower.

 

2.10                           Unrestricted Subsidiaries. From time to time following the
Effective Date and when no Default or Event of Default exists, Parent and
Company (and each other Borrower then a party to this Agreement) may jointly
designate one or more Subsidiaries of the Parent as Unrestricted Subsidiaries
upon written notice to the Administrative Agent, provided that:

 

(a)                                  neither the Company, the other Borrowers,
nor any Person which is then obligated with respect to the Obligations or any
of them shall be designated as an Unrestricted Subsidiary;

 

(b)                                 except for Distributed EBITDA Loans with
an aggregate balance (including accrued interest) in an aggregate amount not in
excess of $250,000,000 at any time, no Subsidiary which is an Unrestricted
Subsidiary shall own Indebtedness or any equity securities issued by Parent or
any of the Restricted Subsidiaries;

 

(c)                                  no Unrestricted Subsidiary shall be
obligated with respect to any Indebtedness of Parent or the Borrowers, or
subject to any material covenants associated with any such Indebtedness; and

 

(d)                                 No Person which is an Unrestricted
Subsidiary may own any interest in any Property which, at the relevant
time, is a Material Operating Property.

 

43

 

 

2.11         Payment Presumptions by Administrative
Agent.

 

(a)           Funding by Lenders. Unless the Administrative Agent shall
have received notice from a Lender prior to the proposed date of any Committed
Loan that such Lender will not make available to the Administrative Agent such
Lender’s share of such Committed Loan, the Administrative Agent may assume
that such Lender has made such share available on such date in accordance with Section 2.1
and may, in reliance upon such assumption, make available to the Borrowers a
corresponding amount. In such event, if a Lender has not in fact made its share
of the applicable Committed Loan available to the Administrative Agent, then
the applicable Lender and the Borrowers severally agree to pay to the
Administrative Agent forthwith on demand such corresponding amount in
immediately available funds with interest thereon, for each day from and
including the date such amount is made available to the Borrowers to but
excluding the date of payment to the Administrative Agent, at:

 

(i)            in the case of a payment to be made by
such Lender, the greater of the Federal Funds Rate and a rate determined by the
Administrative Agent in accordance with banking industry rules on
interbank compensation, plus any administrative, processing or similar fees
customarily charged by the Administrative Agent in connection with the
foregoing; and

 

(ii)           in the case of a payment to be made by
the Borrowers, the interest rate applicable to Base Rate Loans.

 

If the Borrowers and such Lender shall pay such interest
to the Administrative Agent for the same or an overlapping period, the
Administrative Agent shall promptly remit to the Borrowers the amount of such
interest paid by the Borrowers for such period. If such Lender pays its share
of the applicable Committed Loan to the Administrative Agent, then the amount
so paid shall constitute such Lender’s Committed Loan included in such
Committed Loan. Any payment by the Borrowers shall be without prejudice to any
claim the Borrowers may have against a Lender that shall have failed to
make such payment to the Administrative Agent.

 

(b)           Payments by Borrower. Unless the Administrative Agent shall
have received notice from the Borrowers prior to the date on which any payment
is due to the Administrative Agent for the account of the Lenders or the
Issuing Lender hereunder that the Borrowers will not make such payment, the
Administrative Agent may assume that the Borrowers have made such payment
on such date in accordance herewith and may, in reliance upon such assumption,
distribute to the Lenders or the Issuing Lender, as the case may be, the
amount due. In such event, if the Borrowers have not in fact made such payment,
then each of the Lenders or the Issuing Lender, as the case may be,
severally agrees to repay to the Administrative Agent forthwith on demand the
amount so distributed to such Lender or the Issuing Lender, in immediately
available funds with interest thereon, for each day from and including the date
such amount is distributed to it to but excluding the date of payment to the
Administrative Agent, at the greater of the Federal Funds Rate and a rate
determined by the Administrative Agent in accordance with banking industry rules on
interbank compensation.

 

(c)           A notice of the Administrative Agent to
any Lender or any Borrower with respect to any amount owing under this Section 2.11
shall be conclusive, absent manifest error.

 

2.12         Sharing of Payments by Lenders. If any Lender shall, by exercising any
right of setoff or counterclaim or otherwise, obtain payment in respect of any
principal of or interest on any of the

 

44

 

Committed
Loans made by it, or the participations in L/C Obligations or in Swing Line
Advances held by it resulting in such Lender’s receiving payment of a
proportion of the aggregate amount of such Committed Loans or participations
and accrued interest thereon greater than its pro rata share thereof as
provided herein, then the Lender receiving such greater proportion shall:

 

(a)           notify the Administrative Agent of such
fact; and

 

(b)           purchase (for Cash at face value)
participations in the Committed Loans and subparticipations in L/C Obligations
and Swing Line Advances of the other Lenders, or make such other adjustments as
shall be equitable, so that the benefit of all such payments shall be shared by
the Lenders ratably in accordance with the aggregate amount of principal of and
accrued interest on their respective Committed Loans and other amounts owing
them;

 

provided that:

 

(i)            if any such participations or
subparticipations are purchased and all or any portion of the payment giving
rise thereto is recovered, such participations or subparticipations shall be
rescinded and the purchase price restored to the extent of such recovery,
without interest; and

 

(ii)           the provisions of this Section 2.12
shall not be construed to apply to:

 

(A)          any payment made by the Borrowers
pursuant to and in accordance with the express terms of this Agreement; or

 

(B)           any payment obtained by a Lender as
consideration for the assignment of or sale of a participation in any of its
Committed Loans or subparticipations in L/C Obligations or Swing Line Advances
to any assignee or participant, other than to the Borrowers or any Subsidiary
thereof (as to which the provisions of this Section 2.12 shall apply).

 

Each
Loan Party consents to the foregoing and agrees, to the extent it may effectively
do so under applicable law, that any Lender acquiring a participation pursuant
to the foregoing arrangements may exercise against such Loan Party rights
of setoff and counterclaim with respect to such participation as fully as if
such Lender were a direct creditor of such Loan Party in the amount of such
participation.

 

45

 

ARTICLE 3

PAYMENTS AND FEES

 

3.1           Principal and Interest.

 

(a)           Interest shall be payable on the
outstanding daily unpaid principal amount of each Advance from the date thereof
until payment in full is made and shall accrue and be payable at the rates set
forth or provided for herein before and after default, before and after
maturity, before and after judgment, and before and after the commencement of
any proceeding under any Debtor Relief Law, with interest on overdue interest
to bear interest at the Default Rate to the fullest extent permitted by
applicable Laws.

 

(b)           Interest accrued on each Base Rate Loan
on each Quarterly Payment Date, and on the date of any prepayment of the
Committed Advance Notes pursuant to Section 3.1(f), shall be due and
payable on that day. Except as otherwise provided in Section 3.9,
the unpaid principal amount of any Base Rate Loan shall bear interest at a
fluctuating rate per annum equal to the Base Rate plus the Base Rate
Margin. Each change in the interest rate under this Section 3.1(b) due
to a change in the Base Rate shall take effect simultaneously with the
corresponding change in the Base Rate.

 

(c)           Interest accrued on each Eurodollar Rate
Loan having a Interest Period of three months or less shall be due and payable
on the last day of the related Interest Period. Interest accrued on each other
Eurodollar Rate Loan shall be due and payable on the date which is three months
after the date such Eurodollar Rate Loan was made (and, in the event that all
of the Lenders have approved a Interest Period of longer than 6 months, every
three months thereafter through the last day of the Interest Period) and on the
last day of the related Interest Period. Except as otherwise provided in
Sections 3.1(d) and 3.9, the unpaid principal amount of any Eurodollar
Rate Loan shall bear interest at a rate per annum equal to the Eurodollar Rate
for that Eurodollar Rate Loan plus the Eurodollar Margin.

 

(d)           During the existence of a Default or
Event of Default, the Requisite Lenders may determine that any or all then
outstanding Eurodollar Rate Loans shall be converted to Base Rate Loans. Such
conversion shall be effective upon notice to Borrowers from the Requisite
Lenders (or from the Administrative Agent on behalf of the Requisite Lenders)
and shall continue so long as such Default or Event of Default continues to
exist.

 

(e)           If not sooner paid, the principal
Indebtedness evidenced by the Committed Advance Notes shall be payable as
follows:

 

(i)            the principal amount of each Eurodollar
Rate Loan shall be payable on the last day of the Interest Period for such
Loan;

 

(ii)           the amount, if any, by which the Total
Outstandings at any time exceed the Aggregate Commitments shall be payable
immediately, and shall be applied to the ratable payment of the Committed
Advance Notes; and

 

(iii)          the principal Indebtedness evidenced by
the Committed Advance Notes shall in any event be payable on the Maturity Date.

 

46

 

(f)            The Committed Advance Notes may, at any
time and from time to time, voluntarily be paid or prepaid in whole or in part without
premium or penalty, except that with respect to any voluntary prepayment
under this Section 3.1(f):

 

(i)            any partial prepayment shall be in an
integral multiple of $1,000,000 but not less than $5,000,000;

 

(ii)           the Administrative Agent shall have
received written notice of any prepayment, by 10:00 a.m. Las Vegas local
time, one Business Day, in the case of a Base Rate Loan, and three Business
Days, in the case of a Eurodollar Rate Loan, before the date of prepayment,
which notice shall identify the date and amount of the prepayment and the
Loan(s) being prepaid;

 

(iii)          each prepayment of principal shall be
accompanied by payment of interest accrued to the date of payment on the amount
of principal paid; and

 

(iv)          any payment or prepayment of all or any part of
any Eurodollar Rate Loan on a day other than the last day of the applicable
Interest Period shall be subject to Section 3.8(d).

 

(g)           If for any reason the Total Outstandings
at any time exceed the Aggregate Commitments then in effect, the Borrowers
shall immediately prepay Loans and/or Cash Collateralize the L/C Obligations in
an aggregate amount equal to such excess; provided, however, that
the Borrowers shall not be required to Cash Collateralize the L/C Obligations
pursuant to this Section 3.1(g) unless after the prepayment in full
of the Loans the Total Outstandings exceed the Aggregate Commitments then in
effect.

 

3.2           Arrangement Fee. On the Effective Date, Parent and the
Company shall pay to each Lead Arranger an arrangement fee in the amount
heretofore agreed upon by letter agreements among Parent, the Company and each
such Lead Arranger. Such arrangement fees are for the services of the Lead
Arrangers in arranging the credit facilities under this Agreement and are fully
earned when paid. These arrangement fees are earned as of the date hereof and
are nonrefundable.

 

3.3           Upfront Fees; Extension Fees.

 

(a)           On the Effective Date, the Company will
pay to the Administrative Agent, for the respective account of each Lender
which is a party to the Existing Credit Agreement on the Effective Date, or its
assigns, an extension fee of 0.05% times the amount of its Commitment under the
Existing Credit Agreement which is continued under this Agreement.

 

(b)           On the Effective Date, the Company shall
pay to the Administrative Agent, for the respective accounts of each Lender, an
upfront fee of 0.125% times the amount by which its Commitment under this
Agreement as of the Effective Date exceeds any Commitment of that Lender under
the Existing Credit Agreement.

 

(c)           The fees described in this Section are
fully earned when paid and are non-refundable.

 

3.4           Facility Fees. On the last day of each Pricing Period
and on the Maturity Date, Borrowers shall pay to the Administrative Agent, for
the respective accounts of the Lenders, pro rata according to their Applicable
Percentage, a facility fee equal to:

 

47

 

(a)           the Facility Fee Rate per annum for that
Pricing Period; times

 

(b)           the actual daily amount by of the
Aggregate Commitments (whether drawn or undrawn) during that Pricing Period.

 

3.5           Letter of Credit Fees.

 

(a)           Concurrently with the issuance of each
Letter of Credit, Borrowers shall pay a letter of credit issuance fee to the
relevant Issuing Lender, for the sole account of that Issuing Lender, in an
amount set forth in an agreement between the Parent, the Borrowers, and the
relevant Issuing Lender. Each such letter of credit issuance fee is
nonrefundable.

 

(b)           On each Quarterly Payment Date and on the
Maturity Date, Borrowers shall also pay to the Administrative Agent in arrears,
for the ratable account of the Lenders in accordance with their Applicable
Percentage, letter of credit fees in an amount equal to the Letter of Credit
Fee per annum times the actual daily amount of L/C Obligations of all Letters
of Credit for the period from the Effective Date or the most recent Quarterly
Payment Date. For purposes of computing the daily amount available to be drawn
under any Letter of Credit, the amount of such Letter of Credit shall be
determined in accordance with Section 1.7.

 

3.6           Agency Fees. Borrowers shall pay to the
Administrative Agent an agency fee in such amounts and at such times as
heretofore agreed upon by letter agreement among Parent, the Borrowers and the
Administrative Agent. The agency fee is for the services to be performed by the
Administrative Agent in acting as Administrative Agent and is fully earned on
the date paid. The agency fee paid to the Administrative Agent is solely for
its own account and is nonrefundable.

 

3.7           Increased Commitment Costs. If any Lender shall determine that the
introduction after the Effective Date of any applicable law, rule, regulation
or guideline regarding capital adequacy, or any change therein or any change in
the interpretation or administration thereof by any central bank or other
Governmental Agency charged with the interpretation or administration thereof,
or compliance by such Lender (or its Eurodollar Lending Office) or any
corporation controlling the Lender, with any request, guidelines or directive
regarding capital adequacy (whether or not having the force of law) of any such
central bank or other authority, affects or would affect the amount of capital
required or expected to be maintained by such Lender or any corporation
controlling such Lender and (taking into consideration such Lender’s or such
corporation’s policies with respect to capital adequacy and such Lender’s
desired return on capital) determines that the amount of such capital is
increased, or the rate of return on capital is reduced, as a consequence of its
obligations under this Agreement, then such Lender shall promptly give notice
to the Borrowers and the Administrative Agent of such determination. Thereafter,
the Borrowers shall pay to such Lender, within five Business Days following
written demand therefor (setting forth the additional amounts owed to such
Lender and the basis of the calculation thereof in reasonable detail),
additional amounts sufficient to compensate such Lender in light of such
circumstances, to the extent reasonably allocable to such obligations under
this Agreement. Each Lender shall afford treatment to Borrowers under this Section 3.7
which is substantially similar to that which such Lender affords to its other
similarly situated customers.

 

3.8           Eurodollar Costs and Related Matters.

 

(a)           If, after the date hereof, the existence
or occurrence of any Special Eurodollar Circumstance shall:

 

48

 

(i)            subject any Lender or its Eurodollar
Lending Office to any tax, duty or other charge or cost with respect to any
Eurodollar Rate Advance, any of its Committed Advance Notes evidencing
Eurodollar Rate Loans or its obligation to make Eurodollar Rate Advances, or
shall change the basis of taxation of payments to any Lender of the principal
of or interest on any Eurodollar Rate Advance or any other amounts due under
this Agreement in respect of any Eurodollar Rate Advance, any of its Committed
Advance Notes evidencing Eurodollar Rate Loans or its obligation to make
Eurodollar Rate Advances, excluding, with respect to each Creditor, and
any Affiliate or Eurodollar Lending Office thereof, (A) taxes imposed on
or measured in whole or in part by its net income or capital and franchise
taxes imposed on it, (B) any withholding taxes or other taxes based on net
income (other than withholding taxes and taxes based on net income resulting
from or attributable to any change in any law, rule or regulation or any
change in the interpretation or administration of any law, rule or
regulation by any Governmental Agency) or (C) any withholding taxes or
other taxes based on net income for any period with respect to which it has
failed to provide Borrowers with the appropriate form or forms required by
Section 11.22, to the extent such forms are then required by applicable
Laws;

 

(ii)           impose, modify or deem applicable any
reserve not applicable or deemed applicable on the date hereof (including,
without limitation, any reserve imposed by the Board of Governors of the
Federal Reserve System, but excluding the Eurodollar Reserve Percentage taken
into account in calculating the Eurodollar Rate), special deposit, capital or
similar requirements against assets of, deposits with or for the account of, or
credit extended by, any Lender or its Eurodollar Lending Office; or

 

(iii)          impose on any Lender or its Eurodollar
Lending Office or the Designated Eurodollar Market any other condition
materially affecting any Eurodollar Rate Advance, any of its Committed Advance
Notes evidencing Eurodollar Rate Loans, its obligation to make Eurodollar Rate
Advances or this Agreement, or shall otherwise materially affect any of the
same;

 

and
the result of any of the foregoing, as determined by such Lender, increases the
cost to such Lender or its Eurodollar Lending Office of making or maintaining
any Eurodollar Rate Advance or in respect of any Eurodollar Rate Advance, any
of its Committed Advance Notes evidencing Eurodollar Rate Loans or its
obligation to make Eurodollar Rate Advances or reduces the amount of any sum
received or receivable by such Lender or its Eurodollar Lending Office with
respect to any Eurodollar Rate Advance, any of its Committed Advance Notes
evidencing Eurodollar Rate Loans or its obligation to make Eurodollar Rate
Advances (assuming such Lender’s Eurodollar Lending Office had funded 100% of
its Eurodollar Rate Advance in the Designated Eurodollar Market), then, provided
that such Lender makes demand upon Borrowers (with a copy to the
Administrative Agent) within 90 days following the date upon which it becomes
aware of any such event or circumstance, Borrowers shall within five Business
Days pay to such Lender such additional amount or amounts as will compensate
such Lender for such increased cost or reduction (determined as though such
Lender’s Eurodollar Lending Office had funded 100% of its Eurodollar Rate
Advance in the Designated Eurodollar Market). Each of the Borrowers hereby
jointly and severally (but as between Borrowers, ratably) indemnifies each
Lender against, and agrees to hold each Lender harmless from and reimburse such
Lender within five Business Days after demand for (without duplication) all
costs, expenses, claims, penalties, liabilities, losses, legal fees and damages
incurred or sustained by each Lender in connection with this Agreement, or any
of the rights, obligations or transactions provided for or contemplated herein,
as a result of the existence or occurrence of any

 

49

 

Special
Eurodollar Circumstance. A statement of any Lender claiming compensation under
this clause and setting forth the additional amount or amounts to be paid to it
hereunder shall be conclusive in the absence of manifest error. Each Lender
agrees to endeavor promptly to notify Borrowers of any event of which it has
actual knowledge, occurring after the Effective Date, which will entitle such
Lender to compensation pursuant to this Section 3.8 and agrees to
designate a different Eurodollar Lending Office if such designation will avoid
the need for or reduce the amount of such compensation and will not, in the
judgment of such Lender, otherwise be materially disadvantageous to such Lender.
If any Lender claims compensation under this Section 3.8, Borrowers may at
any time, upon at least four Eurodollar Business Days’ prior notice to the
Administrative Agent and such Lender and upon payment in full of the amounts
provided for in this Section 3.8 through the date of such payment plus any
prepayment fee required by Section 3.8(d), pay in full the affected
Eurodollar Rate Advances of such Lender or request that such Eurodollar Rate
Advances be converted to Base Rate Advances. To the extent that any Lender
which receives any payment from Borrowers under this Section 3.8 later
receives any funds which are identifiable as a reimbursement or rebate of such
amount from any other Person, such Lender shall promptly refund such amount to
Borrowers.

 

(b)           If the existence or occurrence of any
Special Eurodollar Circumstance shall, in the opinion of any Lender, make it
unlawful, impossible or impracticable for such Lender or its Eurodollar Lending
Office to make, maintain or fund its portion of any Eurodollar Rate Loan, or
materially restrict the authority of such Lender to purchase or sell, or to
take deposits of, Dollars in the Designated Eurodollar Market, or to determine
or charge interest rates based upon the Eurodollar Rate, and such Lender shall
so notify the Administrative Agent, then such Lender’s obligation to make
Eurodollar Rate Advances shall be suspended for the duration of such
illegality, impossibility or impracticability and the Administrative Agent
forthwith shall give notice thereof to the other Lenders and Borrowers. Upon
receipt of such notice, the outstanding principal amount of such Lender’s
Eurodollar Rate Advances, together with accrued interest thereon, automatically
shall be converted to Base Rate Advances on either (i) the last day of the
Interest Period(s) applicable to such Eurodollar Rate Advances if such Lender may lawfully
continue to maintain and fund such Eurodollar Rate Advances to such day(s) or (ii) immediately
if such Lender may not lawfully continue to fund and maintain such
Eurodollar Rate Advances to such day(s), provided that in such event the
conversion shall not be subject to payment of a prepayment fee under Section 3.8(d).
Each Lender agrees to endeavor promptly to notify Borrowers of any event of
which it has actual knowledge, occurring after the Effective Date, which will
cause that Lender to notify the Administrative Agent under this Section 3.8(b),
and agrees to designate a different Eurodollar Lending Office if such
designation will avoid the need for such notice and will not, in the judgment
of such Lender, otherwise be disadvantageous to such Lender. In the event that
any Lender is unable, for the reasons set forth above, to make, maintain or
fund its portion of any Eurodollar Rate Loan, such Lender shall fund such
amount as a Base Rate Advance for the same period of time, and such amount
shall be treated in all respects as a Base Rate Advance. Any Lender whose
obligation to make Eurodollar Rate Advances has been suspended under this Section 3.8(b) shall
promptly notify the Administrative Agent and Borrowers of the cessation of the
Special Eurodollar Circumstance which gave rise to such suspension.

 

(c)           If, with respect to any proposed
Eurodollar Rate Loan:

 

(i)            the Administrative Agent reasonably
determines that, by reason of circumstances affecting the Designated Eurodollar
Market generally that are beyond the reasonable control of the Lenders,
deposits in Dollars (in the applicable amounts)

 

50

 

are
not being offered to any Lender in the Designated Eurodollar Market for the
applicable Interest Period; or

 

(ii)           the Requisite Lenders advise the
Administrative Agent that the Eurodollar Rate as determined by the
Administrative Agent:

 

(A)          does not represent the effective pricing
to such Lenders for deposits in Dollars in the Designated Eurodollar Market in
the relevant amount for the applicable Interest Period; or

 

(B)           will not adequately and fairly reflect
the cost to such Lenders of making the applicable Eurodollar Rate Advances;

 

then the Administrative Agent forthwith shall give
notice thereof to Borrowers and the Lenders, whereupon until the Administrative
Agent notifies Borrowers that the circumstances giving rise to such suspension
no longer exist, the obligation of the Lenders to make any future Eurodollar
Rate Advances shall be suspended. If at the time of such notice there is then
pending a Request for Loan that specifies a Eurodollar Rate Loan, such Request
for Loan shall be deemed to specify a Base Rate Loan.

 

(d)           Upon payment or prepayment of any
Eurodollar Rate Advance, (other  than as the result of a
conversion required under Section 3.1(d) or 3.8(b)), on a day other
than the last day in the applicable Interest Period (whether voluntarily,
involuntarily, by reason of acceleration, or otherwise), or upon the failure of
any Borrower (for a reason other than the failure of a Lender to make an
Advance) to borrow on the date or in the amount specified for a Eurodollar Rate
Loan in any Request for Loan, Borrowers shall pay to the appropriate Lender within
five Business Days after demand a prepayment fee or failure to borrow fee, as
the case may be, (determined as though 100% of the Eurodollar Rate Advance
had been funded in the Designated Eurodollar Market) equal to the sum
of:

 

(i)            principal amount of the Eurodollar Rate
Advance prepaid or not borrowed, as the case may be, times the
quotient of:

 

(A)          the number of days between the date of
prepayment or failure to borrow, as applicable, and the last day in the
applicable Interest Period; divided by

 

(B)           360, times the applicable Interest
Differential (provided that the product of the foregoing formula must be a
positive number); plus

 

(ii)           all out-of-pocket expenses incurred by
the Lender reasonably attributable to such payment, prepayment or failure to borrow.

 

Each Lender’s
determination of the amount of any prepayment fee payable under this Section 3.8(d) shall
be conclusive in the absence of manifest error.

 

3.9           Default Rate. If any installment of principal or
interest or any fee or cost or other amount payable under any Loan Document to
any Creditor is not paid when due, then such overdue Obligations shall
thereafter bear interest at a fluctuating interest rate per annum at all times
equal to the sum of the Base Rate plus the Base Rate Margin plus 2%, to the
fullest extent permitted by applicable Laws. In

 

51

 

addition,
if any Event of Default has occurred and remains continuing, then at the option
of the Requisite Lenders, all of the Obligations shall thereafter bear interest
at a fluctuating interest rate per annum at all times equal to the sum of the
Base Rate plus the Base Rate Margin plus 2%, to the fullest extent permitted by
applicable Laws. Accrued and unpaid interest on past due amounts (including,
without limitation, interest on past due interest) shall be compounded monthly,
on the last day of each calendar month, to the fullest extent permitted by
applicable Laws.

 

3.10         Computation of Interest and Fees. Computation of interest on Base Rate
Loans calculated with reference to the prime rate shall be calculated on the
basis of a year of 365 or 366 days, as the case may be, and the actual
number of days elapsed; computation of interest on Base Rate Loans calculated
by reference to the Federal Funds Rate, and on Eurodollar Rate Loans and all
fees under this Agreement shall be calculated on the basis of a year of 360
days and the actual number of days elapsed. Each Borrower acknowledges that
such latter calculation method will result in a higher yield to the Lenders
than a method based on a year of 365 or 366 days. Interest shall accrue on each
Loan for the day on which the Loan is made; interest shall not accrue on a
Loan, or any portion thereof, for the day on which the Loan or such portion is
paid. Any Loan that is repaid on the same day on which it is made shall bear
interest for one day.

 

3.11         Non-Business Days. Subject to clause (b) of the
definition of “Interest Period,” if any payment to be made by Borrowers or any
other Party under any Loan Document shall come due on a day other than a
Business Day, payment shall instead be considered due on the next succeeding
Business Day and the extension of time shall be reflected in computing interest
and fees.

 

3.12         Manner and Treatment of Payments.

 

(a)           Each payment hereunder (except
payments with respect to Swing Line Obligations and payments pursuant to
Sections 3.7, 3.8, and 11.3) or on the Committed Advance Notes or under
any other Loan Document shall be made without setoff, counterclaim, recoupment
or other deduction of any kind to the Administrative Agent, at the
Administrative Agent’s Office, for the account of each of the Lenders or the
Administrative Agent, as the case may be, in immediately available funds
not later than 11:00 a.m., Las Vegas local time, on the day of payment
(which must be a Business Day), other  than payments with respect
to Swing Line Advances, which must be received by 3:00 p.m., Las Vegas
local time, on the day of payment (which must be a Business Day). All payments
received after these deadlines shall be deemed received on the next succeeding
Business Day. The amount of all payments received by the Administrative Agent
for the account of each Lender shall be immediately paid by the Administrative
Agent to the applicable Lender in immediately available funds and, if such
payment was received by the Administrative Agent by 11:00 a.m., Las Vegas
local time, on a Business Day and not so made available to the account of a
Lender on that Business Day, the Administrative Agent shall reimburse that
Lender for the cost to such Lender of funding the amount of such payment at the
Federal Funds Rate. All payments shall be made in lawful money of the United
States of America.

 

(b)           Each payment or prepayment on account of
any Committed Loan shall be applied pro rata according to the outstanding
Committed Advances made by each Lender comprising such Committed Loan.

 

(c)           Each Lender shall use its best efforts to
keep a record of Advances made by it and payments received by it with respect
to each of its Committed Advance Notes and such record shall, as against
Borrowers, be presumptive evidence absent manifest error of the

 

52

 

amounts
owing. Notwithstanding the foregoing sentence, no Lender shall be liable to any
Party for any failure to keep such a record.

 

(d)           Each payment of any amount payable by
Borrowers or any other Party under this Agreement or any other Loan Document
shall be made free and clear of, and without reduction by reason of, any taxes,
assessments or other charges imposed by any Governmental Agency, central bank
or comparable authority, excluding, in the case of each Creditor, and
any Affiliate or Eurodollar Lending Office thereof, (i) taxes imposed on
or measured in whole or in part by its net income or capital and franchise
taxes imposed on it, (ii) any withholding taxes or other taxes based on
net income (other than withholding taxes and taxes based on net income
resulting from or attributable to any change in any law, rule or regulation
or any change in the interpretation or administration of any law, rule or
regulation by any Governmental Agency) or (iii) any withholding taxes or
other taxes based on net income for any period with respect to which it has
failed to provide Borrowers with the appropriate form or forms required by
Section 11.22, to the extent such forms are then required by applicable
Laws, (all such non-excluded taxes, assessments or other charges being
hereinafter referred to as “Taxes”). To the extent that Parent or any Borrower
is obligated by applicable Laws to make any deduction or withholding on account
of Taxes from any amount payable to any Lender under this Agreement, Parent or
that Borrower shall (i) make such deduction or withholding and pay the
same to the relevant Governmental Agency and (ii) pay such additional
amount to that Lender as is necessary to result in that Lender’s receiving a
net after-Tax amount equal to the amount to which that Lender would have been
entitled under this Agreement absent such deduction or withholding. If and when
receipt of such payment results in an excess payment or credit to that Lender
on account of such Taxes, that Lender shall promptly refund such excess to
Parent or the appropriate Borrower.

 

3.13         Funding Sources. Nothing in this Agreement shall be
deemed to obligate any Lender to obtain the funds for any Loan or Advance in
any particular place or manner or to constitute a representation by any Lender
that it has obtained or will obtain the funds for any Loan or Advance in any
particular place or manner.

 

3.14         Failure to Charge Not Subsequent Waiver. Any decision by the Creditors not to
require payment of any interest (including interest arising under Section 3.9),
fee, cost or other amount payable under any Loan Document, or to calculate any
amount payable by a particular method, on any occasion shall in no way limit or
be deemed a waiver of the Creditor’s right to require full payment of any
interest (including interest arising under Section 3.9), fee, cost or
other amount payable under any Loan Document on any other or subsequent
occasion.

 

3.15         Fee Determination Detail. Each Creditor shall provide reasonable
detail to Parent and the Borrowers regarding the manner in which the amount of
any payment to that Creditor under Article 3 has been determined,
concurrently with demand for such payment.

 

3.16         Survivability. All of the Parent’s and the Borrowers’
obligations under Sections 3.7 and 3.8 shall survive for ninety days
following the date on which the Commitments are terminated and all Loans
hereunder are fully paid.

 

53

 

ARTICLE 4

REPRESENTATIONS AND
WARRANTIES

 

Parent
and each Borrower represents and warrants to the Creditors, as of the Effective
Date, and as of the date of the making of each Advance and the Issuance of each
Letter of Credit that:

 

4.1           Existence and Qualification; Power;
Compliance With Laws.
Parent and each of the Borrowers are duly formed, validly existing and in good
standing under the Laws of its jurisdiction of formation. Parent and each of
the Borrowers are duly qualified or registered to transact business and is in
good standing in each other jurisdiction in which the conduct of its business
or the ownership or leasing of its Properties makes such qualification or
registration necessary, except where the failure so to qualify or register and
to be in good standing would not constitute a Material Adverse Effect. Parent
and each of the Borrowers have all requisite corporate or partnership power (as
applicable) and authority to conduct their respective business, to own and
lease their respective Properties and to execute and deliver each Loan Document
to which it is a Party and to perform its Obligations. All outstanding
shares of capital stock of Parent and each of the Borrowers are duly
authorized, validly issued, fully paid, and non-assessable and no holder
thereof has any enforceable right of rescission under any applicable state or
federal securities Laws. Parent and each of the Borrowers are in compliance with
all Laws and other legal requirements applicable to their respective business,
have obtained all authorizations, consents, approvals, orders, licenses and
permits from, and have accomplished all filings, registrations and
qualifications with, or obtained exemptions from any of the foregoing from, any
Governmental Agency that are necessary for the transaction of their business,
except where the failure so to comply, file, register, qualify or obtain
exemptions does not constitute a Material Adverse Effect.

 

4.2           Authority; Compliance With Other
Agreements and Instruments and Government Regulations. The execution, delivery and performance
by Parent and each Borrower of the Loan Documents to which it is a Party have
been duly authorized by all necessary corporate or partnership action, as
applicable, and do not and will not:

 

(a)           Require any consent or approval not
heretofore obtained of any partner, director, stockholder, security holder or
creditor of such Party;

 

(b)           Violate or conflict with any provision of
such Party’s charter, articles of incorporation or bylaws, as applicable;

 

(c)           Result in or require the creation or
imposition of any Lien or Right of Others upon or with respect to any Property
now owned or leased or hereafter acquired by such Party;

 

(d)           Violate any Requirement of Law applicable
to such Party, subject to obtaining the authorizations from, or filings with,
the Governmental Authorities described in Schedule 4.3;

 

(e)           Result in a breach by such Party of or
constitute a default by such Party under, or cause or permit the acceleration
of any obligation owed under, any indenture or loan or credit agreement or any
other Contractual Obligation to which such Party is a party or by which such
Party or any of its Property is bound or affected;

 

and
neither Parent, Borrowers nor any of the Significant Subsidiaries is in
violation of, or default under, any Requirement of Law or Contractual
Obligation, or any indenture, loan or credit agreement described in Section 4.2(e),
in any respect that constitutes a Material Adverse Effect.

 

54

 

4.3           No Governmental Approvals Required. Except as set forth in Schedule 4.3
or previously obtained or made, no authorization, consent, approval, order,
license or permit from, or filing, registration or qualification with, any
Governmental Agency is or will be required to authorize or permit under
applicable Laws the execution, delivery and performance by Parent or the
Borrowers of the Loan Documents to which any of them is a Party. All
authorizations from, or filings with, any Governmental Agency described in Schedule 4.3
will be accomplished as of the Effective Date or such other date as is
specified in Schedule 4.3.

 

4.4           Significant Subsidiaries.

 

(a)           Each Significant Subsidiary is validly
existing and in good standing under the Laws of its jurisdiction of
organization, is duly qualified to do business as a foreign organization and is
in good standing as such in each jurisdiction in which the conduct of its
business or the ownership or leasing of its properties makes such qualification
necessary (except where the failure to be so duly qualified and in good
standing does not constitute a Material Adverse Effect), and has all requisite
power and authority to conduct its business and to own and lease its
Properties.

 

(b)           Each Significant Subsidiary is in
compliance with all Laws and other requirements applicable to its business and
has obtained all authorizations, consents, approvals, orders, licenses, and
permits from, and each Significant Subsidiary has accomplished all filings,
registrations, and qualifications with, or obtained exemptions from any of the
foregoing from, any Governmental Agency that are necessary for the transaction
of its business, except where the failure to be in such compliance,
obtain such authorizations, consents, approvals, orders, licenses, and permits,
accomplish such filings, registrations, and qualifications, or obtain such
exemptions, does not constitute a Material Adverse Effect.

 

4.5           Financial Statements. Parent and Borrowers have furnished to
the Lenders the audited consolidated financial statements of Parent and its
Subsidiaries for the Fiscal Year ended December 31, 2005. The financial
statements described above fairly present in all material respects the
financial condition, results of operations and changes in financial position of
Parent and its Subsidiaries as of such dates and for such periods, in
conformity with Generally Accepted Accounting Principles, consistently applied.

 

4.6           No Other Liabilities; No Material Adverse
Effect. As of the
Effective Date, Parent and the Restricted Subsidiaries do not have any material
liability or material contingent liability not reflected or disclosed in the
financial statements described in Section 4.5, other than liabilities and
contingent liabilities arising in the ordinary course of business since the
date of such financial statements. As of the Effective Date, no circumstance or
event has occurred that constitutes a Material Adverse Effect since December 31,
2005. As of each date following the Effective Date, no circumstance or event
has occurred that constitutes a Material Adverse Effect since the Effective
Date.

 

4.7           Title to Property. As of the Effective Date, Parent and
the Restricted Subsidiaries have valid title to the Property reflected in the
financial statements described in Section 4.5, other than immaterial items
of Property and Property subsequently sold or disposed of in the ordinary
course of business, free and clear of all Liens and Rights of Others, other
than Liens or Rights of Others described in Schedule 4.7, as permitted by Section 6.4,
and any other matters which do not have a Material Adverse Effect.

 

4.8           Litigation. There are no actions, suits, proceedings or
investigations pending as to which Parent or any of the Restricted Subsidiaries
have been served or have received notice or, to the knowledge

 

55

 

of
Parent and the Borrowers, threatened against or affecting Parent or any of the
Restricted Subsidiaries or any Property of any of them before any Governmental
Agency in which there is any reasonable possibility of an adverse decision
which could materially adversely affect the business, consolidated financial
position or results of operations of Parent and the Restricted Subsidiaries,
taken as a whole, or which in any manner draws into question the validity or
enforceability of the Loan Documents.

 

4.9           Binding Obligations. Each of the Loan Documents will, when
executed and delivered by Parent and the Borrowers party thereto, constitute
the legal, valid and binding obligation of such Party, enforceable against such
Party in accordance with its terms, except as enforcement may be limited
by Debtor Relief Laws or equitable principles relating to the granting of
specific performance and other equitable remedies as a matter of judicial
discretion.

 

4.10         No Default. No event has occurred and is continuing that is a
Default or Event of Default.

 

4.11         ERISA.

 

(a)           With respect to each Pension Plan:

 

(i)            such Pension Plan complies in all
material respects with ERISA and any other applicable Laws to the extent that
noncompliance could reasonably be expected to have a Material Adverse Effect;

 

(ii)           such Pension Plan has not incurred any “accumulated
funding deficiency” (as defined in Section 302 of ERISA) that could
reasonably be expected to have a Material Adverse Effect;

 

(iii)          no “reportable event” (as defined in Section 4043
of ERISA) has occurred that could reasonably be expected to have a Material
Adverse Effect; and

 

(iv)          neither Parent nor any of its
Subsidiaries has engaged in any non-exempt “prohibited transaction” (as defined
in Section 4975 of the Code) that could reasonably be expected to have a
Material Adverse Effect.

 

(b)           Neither Parent nor any of its
Subsidiaries has incurred or expects to incur any withdrawal liability to any
Multiemployer Plan that could reasonably be expected to have a Material Adverse
Effect.

 

4.12         Regulations T, U and X; Investment
Company Act. No part of
the proceeds of any Loan hereunder will be used to purchase or carry, or to
extend credit to others for the purpose of purchasing or carrying, any Margin
Stock in any manner which is a violation of Regulations T, U or X. Neither
Parent nor any of the Restricted Subsidiaries is or is required to be
registered as an “investment company” under the Investment Company Act of 1940.

 

4.13         Disclosure. No written statement made by a Senior Officer of
Parent or any Borrower to any Creditor in connection with this Agreement, including
without limitation the statements made in the Confidential Offering Memorandum,
or in connection with any Loan, Advance or Letter of Credit as of the date
thereof contained any untrue statement of a material fact or omitted a material
fact necessary to make the statement made not misleading in light of all the
circumstances existing at the date the statement was made.

 

56

 

4.14         Tax Liability. Parent and the Restricted Subsidiaries
have filed all tax returns which are required to be filed, and have paid, or
made provision for the payment of, all taxes with respect to the periods,
Property or transactions covered by said returns, or pursuant to any assessment
received by Parent or any of the Restricted Subsidiaries, except:

 

(a)           such taxes, if any, as are being
contested in good faith by appropriate proceedings and as to which adequate
reserves have been established and maintained and

 

(b)           immaterial taxes and tax returns so long
as no material item or portion of Property of Parent or any of the Restricted
Subsidiaries is in jeopardy of being seized, levied upon or forfeited.

 

4.15         Projections. As of the Effective Date, to the best
knowledge of Parent and the Borrowers, the assumptions set forth in the Projections
are reasonable and consistent with each other and with all facts known to
Parent and the Borrowers, and the Projections are:

 

(a)           reasonably based on such assumptions; and

 

(b)           although a range of possible different
assumptions and estimates might also be reasonable, neither Parent nor the
Borrowers are aware of any facts which would lead them to believe that the
assumptions and estimates on which the Projections were based are not
reasonable; provided that no representation or warranty can be given that the
projected results will be realized or with respect to the ability of Parent and
its Subsidiaries to achieve the projected results and, while the Projections
are necessarily presented with numerical specificity, the actual results
achieved during the periods presented may differ from the projected
results, and such differences may be material.

 

4.16         Hazardous Materials. Parent and the Borrowers have
reasonably concluded that Hazardous Materials Laws are unlikely to have a
material adverse effect on the business, financial position, results of
operations or prospects of the Parent and the Restricted Subsidiaries,
considered as a whole.

 

4.17         Gaming Laws. Parent and each of the Restricted
Subsidiaries are in compliance in all material respects with all Gaming Laws
that are applicable to them and their businesses.

 

4.18         Solvency. As of the Effective Date, and giving effect to the
other transactions contemplated to occur on the Effective Date, Parent, the
Company and each of the other Restricted Subsidiaries are Solvent.

 

57

 

ARTICLE 5

AFFIRMATIVE COVENANTS

 

So
long as any Advance remains unpaid, or any other Obligation remains unpaid or
unperformed, or any portion of the Commitments remains in force, Parent and
each Borrower shall, and shall cause each of the Restricted Subsidiaries to,
unless the Administrative Agent (with the written approval of the Requisite
Lenders) otherwise consents:

 

5.1           Preservation of Existence. Preserve and maintain their respective
existences in the jurisdiction of their formation and all material
authorizations, rights, franchises, privileges, consents, approvals, orders,
licenses, permits, or registrations from any Governmental Agency that are
necessary for the transaction of their respective business, except where the
failure to so preserve and maintain the existence of any Restricted Subsidiary
and such authorizations would not constitute a Material Adverse Effect and
except that the mergers permitted by Section 6.1 shall not constitute a
violation of this covenant; and qualify and remain qualified to transact
business in each jurisdiction in which such qualification is necessary in view
of their respective business or the ownership or leasing of their respective
Properties except where the failure to so qualify or remain qualified would not
constitute a Material Adverse Effect.

 

5.2           Maintenance of Properties. Maintain, preserve and protect all of
their respective depreciable Properties in good order and condition, subject to
wear and tear in the ordinary course of business, and not permit any waste of
their respective Properties, except where the failure to maintain, preserve and
protect a particular item of depreciable Property would not have a Material
Adverse Effect.

 

5.3           Maintenance of Insurance. Maintain liability, casualty and other
insurance (subject to customary deductibles and retentions) with financially
sound and responsible insurance companies in such amounts and against such
risks as is carried by responsible companies engaged in similar businesses and
owning similar assets in the general areas in which Parent and the Restricted
Subsidiaries operate, and will furnish to the Administrative Agent upon request
information in reasonable detail as to the insurance so carried. Notwithstanding
the foregoing, Parent and the Restricted Subsidiaries may self-insure with
respect to such risks with respect to which companies of established reputation
engaged in the same general line of business in the same general area usually
self-insure.

 

5.4           Compliance With Laws. Comply within the time period, if any,
given for such compliance by the relevant Governmental Agency or Authorities
with enforcement authority, with all Laws and Requirements of Law, including
without limitation Hazardous Materials Laws, ERISA and all Gaming Laws, except
that Parent and the Restricted Subsidiaries need not comply with a Requirement
of Law then being contested by any of them in good faith by appropriate
proceedings, except where the failure to so comply may not reasonably be
expected to have a Material Adverse Effect.

 

5.5           Inspection Rights. Upon reasonable notice, at any time
during regular business hours and as often as requested (but not so as to
materially interfere with the business of the Parent or any of the Restricted
Subsidiaries), permit the Administrative Agent or any Lender, or any authorized
employee, agent or representative thereof, to examine, audit and make copies
and abstracts from the records and books of account of, and to visit and inspect
the Properties of, the Parent and the Restricted Subsidiaries and to discuss
the affairs, finances and accounts of the Parent and the Restricted
Subsidiaries with any of their officers, key employees or accountants and, upon
request, furnish promptly to the Administrative Agent or any Lender true copies
of all financial information made available to the senior management of the
Parent.

 

58

 

5.6           Keeping of Records and Books of Account. Keep adequate records and books of
account reflecting all financial transactions in conformity with Generally
Accepted Accounting Principles, consistently applied, and in material
conformity with all applicable requirements of any Governmental Agency having
regulatory jurisdiction over Parent or any of the Restricted Subsidiaries.

 

5.7           Use of Proceeds. Use the proceeds of Loans on the
Effective Date:

 

(a)           to renew the outstanding principal
balance of the Loans under the Existing Credit Agreement; and

 

(b)           pay fees and expenses associated with
this Agreement and the transactions contemplated thereby; and

 

on the Effective Date and thereafter for working
capital and general corporate purposes of Parent and the Restricted
Subsidiaries including without limitation capital expenditures, share
repurchases, commercial paper backup and acquisitions of equity securities or
assets of other Persons, in each case to the extent not prohibited by the Loan
Documents.

 

59

 

ARTICLE 6

NEGATIVE COVENANTS

 

So
long as any Advance remains unpaid, or any other Obligation remains unpaid or
unperformed, or any portion of the Commitments remains in force, Parent and
each Borrower shall not, and shall not permit any of the Restricted
Subsidiaries to, unless the Administrative Agent (with the written approval of
the Requisite Lenders) otherwise consents:

 

6.1           Consolidations, Mergers and Sales of
Assets. Merge or
consolidate with or into any Person, or sell lease or otherwise transfer all or
any substantial part of the assets of Parent and the Restricted
Subsidiaries, taken as a whole, to any Person, except:

 

(a)           mergers and consolidations of a
Restricted Subsidiary into a Borrower (with that Borrower as the surviving
entity) or into another Restricted Subsidiary;

 

(b)           a merger or consolidation of Parent, a
Borrower or any Restricted Subsidiary thereof with any other Person, provided
that:

 

(i)            either:

 

(A)          Parent, that Borrower or the Restricted
Subsidiary is the surviving entity; or

 

(B)           the surviving entity is a corporation
organized under the Laws of a State of the United States of America and, as of
the date of such merger or consolidation, expressly assumes, by an instrument
satisfactory in form and substance to the Requisite Lenders, the
Obligations of the relevant Borrower or the Restricted Subsidiary, as the case may be;

 

(ii)           giving effect thereto, no Default or
Event of Default exists or would result therefrom; and

 

(iii)          giving pro forma effect thereto,
Borrowers are in compliance with the covenants set forth in Sections 6.5
and 6.6.

 

6.2           Hostile Tender Offers. Make any offer to purchase or acquire,
or consummate a purchase or acquisition of, 5% or more of the capital stock of
any corporation or other equity securities of any business entity if the board
of directors or management of such corporation or business entity has notified
Parent or any of its Subsidiaries in writing that it opposes such offer or
purchase and such notice has not been withdrawn or superseded.

 

6.3           Change in Nature of Business. Make any material change in the nature
of the business of Parent and the Restricted Subsidiaries, taken as a whole, or
acquire more than 49% of the capital stock or other equity securities of any
Person which is engaged in a line of business other than the lines of business
reasonably related to or incidental to the business engaged in by Parent and
the Restricted Subsidiaries, provided that no transaction contemplated
by the public filings of Parent and the Company with the Commission as of the
date of the Effective Date shall be deemed to violate this covenant.

 

6.4           Liens, Negative Pledges, Sale Leasebacks
and Rights of Others.
Create, incur, assume or suffer to exist any Lien, Negative Pledge or Right of
Others of any nature upon or with respect to any of

 

60

 

their
respective Properties, whether now owned or hereafter acquired, or enter into
any Sale and Leaseback with respect to any such Properties except:

 

(a)           Permitted Encumbrances and Permitted
Rights of Others;

 

(b)           Liens and Negative Pledges under the Loan
Documents;

 

(c)           other existing Liens, Negative Pledges
and Rights of Others existing on the Effective Date and disclosed in Schedule 4.7
(or not required to be disclosed therein under Section 4.7) and any renewals
or extensions thereof; provided that the obligations secured or
benefited thereby are not increased;

 

(d)           Until the date which is ninety days
following the Effective Date, any Lien, Negative Pledge or Right of Others on
shares of any equity security or any warrant or option to purchase an equity
security or any security which is convertible into an equity security issued by
any Restricted Subsidiary that holds, directly or indirectly through a holding
company or otherwise, a license to conduct gaming under any Gaming Law, and in
the proceeds thereof; provided that this clause shall apply only so long
as the Gaming Laws of the relevant jurisdiction provide that the creation of
any restriction on the disposition of any of such securities shall not be effective
and, if such Gaming Laws at any time cease to so provide, then this clause
shall be of no further effect; and provided  further that if at
any time Parent or any of the Restricted Subsidiaries creates or suffers to
exist a Lien or Negative Pledge covering such securities in favor of the holder
of any other Indebtedness, it will (subject to any approval required under such
Gaming Laws) concurrently grant a pari-passu Lien or Negative Pledge likewise
covering such securities in favor of the Administrative Agent for the benefit
of the Lenders;

 

(e)           Liens on Property acquired or constructed
by Parent or any of the Restricted Subsidiaries, and in the proceeds thereof,
that:

 

(i)            were in existence at the time of the
acquisition or construction of such Property or were created at or within 90
days after such acquisition or construction; and

 

(ii)           secure (in the case of Liens not in
existence at the time of acquisition of the Property) only the unpaid portion
of the acquisition or construction price for such Property, or monies borrowed
that were used to pay such acquisition or construction price;

 

(f)            Liens securing Indebtedness (including
Capital Lease Obligations) that replaces or refinances Indebtedness secured by
Liens permitted under clause (e); provided that such Liens cover
only the same Property as the Liens securing the Indebtedness replaced or
refinanced;

 

(g)           Liens, Negative Pledges and Rights of
Others held by joint venture partners and any assignees thereof, and lenders
thereto and any assignees thereof, with respect to the interests of Parent and
the Restricted Subsidiaries in:

 

(i)            that joint venture and the proceeds
thereof; or

 

(ii)           the capital stock or other equity
ownership interests held by any Joint Venture Holding Company in that joint
venture and the proceeds thereof, provided, in

 

61

 

each
case, that such Liens, Negative Pledges and Rights of Others shall secure and
relate only the obligations of such joint venture or Contingent Obligations permitted
by Section 6.7(g);

 

(h)           Liens, Negative Pledges and Rights of
Others in favor of counterparties to agreements, and assignees thereof, entered
into by Parent and the Restricted Subsidiaries in the ordinary course of
business on the interests of Parent and the Restricted Subsidiaries under such
agreements and the proceeds thereof, provided that such Liens, Negative Pledges
and Rights of Others shall secure and relate only to restrictions on transfer
of the rights of Parent and the Restricted Subsidiaries to the holders thereof
under the relevant agreement;

 

(i)            Liens on Cash securing only Defeased
Debt; and

 

(j)            Liens not otherwise permitted by the
foregoing clauses of this Section 6.4 encumbering assets of the Parent and
the Restricted Subsidiaries having an aggregate fair market value which is not
in excess of 10% of Net Tangible Assets at any time.

 

6.5           Total Debt Ratio. Permit the Total Debt Ratio as of the
last day of any Fiscal Quarter to exceed (a) 5.00:1.00 for any Fiscal
Quarter through and including the Fiscal Quarter ending December 31, 2006
or (b) 4.50:1.00 as of the last day of any subsequent Fiscal Quarter.

 

6.6           Interest Coverage Ratio. Permit the Interest Coverage Ratio to
be less than 3.00:1.00 as of the last day of any Fiscal Quarter.

 

6.7           Restricted Subsidiary Indebtedness. Permit any Restricted Subsidiary which
is not a Borrower hereunder to create, assume, incur or suffer to exist any
Indebtedness or Contingent Obligations with respect to Indebtedness other than:

 

(a)           Defeased Debt;

 

(b)           secured Indebtedness (including Capital
Lease Obligations) and Contingent Obligations which are permitted by
Sections 6.4(e) or 6.4(f);

 

(c)           unsecured Indebtedness and Contingent
Obligations which were created, assumed or incurred by such Restricted Subsidiary
prior to its acquisition by Parent and the Restricted Subsidiaries (and not in
anticipation of such acquisition) but not any refinancings, renewals or
extensions thereof;

 

(d)           letters of credit, surety bonds and other
similar forms of credit enhancement for such Restricted Subsidiaries incurred
in the ordinary course of their business;

 

(e)           Intercompany Debt of Restricted
Subsidiaries, provided such Indebtedness is not subject to any Lien (other than
Liens in favor of the Administrative Agent and the Lenders);

 

(f)            Contingent Obligations of Management
Companies consisting of guarantees of Indebtedness of Persons which are the
counterparties to any management agreement, development agreement or other
similar instruments to which such Management Companies are also party, provided
that:

 

62

 

(i)            the assets of each Management Company
issuing any such guarantees shall not exceed 1.0% of Net Tangible Assets at any
time; and

 

(ii)           the aggregate amount of assets of all
Management Companies issuing guarantees permitted by this Section 6.7(f) shall
not exceed 5% of Net Tangible Assets at any time;

 

(g)           Contingent Obligations of Joint Venture
Holding Companies consisting of guarantees of Indebtedness of Persons in which
such Joint Venture Holding Companies own equity securities; provided  that
the other Persons owning such equity securities have also ratably guaranteed
such Indebtedness;

 

(h)           Indebtedness of Special Purpose
Subsidiaries in respect of Distributed EBITDA Loans with an aggregate balance
(including accrued interest) not to exceed $250,000,000; and

 

(i)            other Indebtedness in an aggregate
principal amount not to exceed $50,000,000 at any time outstanding (which may consist
of additional Distributed EBITDA Loans).

 

63

 

ARTICLE 7

INFORMATION AND REPORTING
REQUIREMENTS

 

7.1           Financial and Business Information. So long as any Advance remains unpaid,
or any other Obligation remains unpaid or unperformed, or any portion of the
Aggregate Commitments remains in force, Parent and the Borrowers shall, unless
the Administrative Agent (with the written approval of the Requisite Lenders)
otherwise consents, deliver to the Administrative Agent and the Lenders, at
Parent’s and Borrowers’ sole expense:

 

(a)           As soon as practicable, and in any event
within 45 days after the end of each Fiscal Quarter (other than the fourth
Fiscal Quarter in any Fiscal Year), the consolidated balance sheet of Parent
and its Subsidiaries as at the end of such Fiscal Quarter and the consolidated
statement of operations for each Fiscal Quarter, and its statement of cash
flows for the portion of the Fiscal Year ended with such Fiscal Quarter and as
at and for the portion of the Fiscal Year ended with such Fiscal Quarter, all
in reasonable detail, together with the similar financial statements (or
supporting schedules reasonably acceptable to the Administrative Agent) setting
out the financial position and results of operations of any Unrestricted
Subsidiaries. Such financial statements shall be certified by a Senior Officer
of Parent as fairly presenting the financial condition, results of operations
and cash flows of Parent and its Subsidiaries in accordance with Generally
Accepted Accounting Principles (other than footnote disclosures), consistently
applied, as at such date and for such periods, subject only to normal year-end
accruals and audit adjustments;

 

(b)           As soon as practicable, and in any event
prior to the penultimate Business Day of February in each Fiscal Year, a
Certificate of a Responsible Official setting forth the Total Debt Ratio as of
the last day of the fourth Fiscal Quarter of the preceding year, and providing
reasonable detail as to the calculation thereof, which calculations shall be based
on the preliminary unaudited financial statements of Parent and its
Subsidiaries for such Fiscal Quarter (after elimination of all relevant items
relating to Unrestricted Subsidiaries);

 

(c)           As soon as practicable, and in any event
within 120 days after the end of each Fiscal Year, the consolidated balance
sheet of Parent and its Subsidiaries as at the end of such Fiscal Year and the
consolidated statements of operations, shareholders’ equity and cash flows, in
each case of Parent and its Subsidiaries for such Fiscal Year as at and for the
Fiscal Year, all in reasonable detail, together with the similar financial
statements (or supporting schedules reasonably acceptable to the Administrative
Agent) setting out the financial position and results of operations of any
Unrestricted Subsidiaries. Such financial statements shall be prepared in
accordance with Generally Accepted Accounting Principles, consistently applied,
and such consolidated balance sheet and consolidated statements shall be
accompanied by a report and opinion of independent public accountants of
recognized standing selected by Parent and reasonably satisfactory to the
Requisite Lenders, which report and opinion shall be prepared in accordance
with generally accepted auditing standards as at such date, and shall not be
subject to any qualifications or exceptions. Such accountants’ report and
opinion shall be accompanied by a certificate stating that, in making the
examination pursuant to generally accepted auditing standards necessary for the
certification of such financial statements and such report, such accountants
have obtained no knowledge of any Default or, if, in the opinion of such
accountants, any such Default shall exist, stating the nature and status of
such Default, and stating that such accountants have reviewed Parent’s and
Borrowers’

 

64

 

financial
calculations as at the end of such Fiscal Year (which shall accompany such
certificate) under Section 6.5 and 6.6, have read such Sections (including
the definitions of all defined terms used therein) and that nothing has come to
the attention of such accountants in the course of such examination that would
cause them to believe that the same were not calculated by Parent and the
Borrowers in the manner prescribed by this Agreement;

 

(d)           As soon as practicable, and in any event
within 90 days after the commencement of each Fiscal Year, a budget and
projection by Fiscal Quarter for that Fiscal Year and by Fiscal Year for the
next four succeeding Fiscal Years, including for the first such Fiscal
Year, projected quarterly consolidated balance sheets, statement of operations
and statements of cash flow and, for the remaining four Fiscal Years, projected
annual consolidated condensed balance sheets and statements of operations and
cash flow, of Parent and the Restricted Subsidiaries, all in reasonable detail;

 

(e)           Promptly after the same are available,
copies of each annual report, proxy or financial statement or other report or
communication sent to the shareholders of Parent, and copies of all annual,
regular, periodic and special reports and registration statements which Parent may file
or be required to file with the Securities and Exchange Commission under
Sections 13 or 15(d) of the Securities Exchange Act of 1934 and not
otherwise required to be delivered to the Lenders pursuant to other provisions
of this Section 7.1;

 

(f)            Promptly after the same are available,
copies of the Nevada “Regulation 6.090 Report” and “6-A Report” and
copies of any written communication to Parent or any of its Subsidiaries from
any Gaming Board advising it of a violation of or non-compliance with, any
Gaming Law by Parent or any of its Subsidiaries;

 

(g)           Promptly after request by any Creditor,
copies of any other report or other document that was filed by Parent or any of
its Subsidiaries with any Governmental Agency;

 

(h)           As soon as practicable, and in any event
within three Business Days after a Senior Officer becomes aware of the
existence of any condition or event which constitutes a Default, telephonic
notice specifying the nature and period of existence thereof, and, no more than
three Business Days after such telephonic notice, written notice again
specifying the nature and period of existence thereof and specifying what
action Parent or any of the Restricted Subsidiaries are taking or propose to
take with respect thereto;

 

(i)            Promptly upon a Senior Officer becoming
aware of any litigation, governmental investigation or any proceeding
(including any litigation or proceeding by or subject to decision by any Gaming
Board) pending:

 

(i)            against Parent or any of the Restricted
Subsidiaries which could reasonably be expected to have a Material Adverse
Effect;

 

(ii)           with respect to any material Indebtedness
of Parent or any of the Restricted Subsidiaries; or

 

(iii)          with respect to the Loan Documents,
notice of the existence of the same;

 

(j)            Promptly after the Borrowers have
notified the Administrative Agent of any intention by the Borrowers to treat
the Loans and/or Letters of Credit as being a “reportable

 

65

 

transaction”
(within the meaning of Treasury Regulation Section 1.6011-4) a duly
completed copy of IRS Form 8886 or any successor form; and

 

(k)           Such other data and information as from
time to time may be reasonably requested by any Creditor through the
Administrative Agent.

 

7.2           Compliance Certificates. So long as any Advance remains unpaid,
or any other Obligation remains unpaid or unperformed, or any portion of the
Commitments remains outstanding, Parent and Borrowers shall deliver to the
Administrative Agent and the Lenders, at Parent’s and Borrowers’ sole expense,
concurrently with the financial statements required pursuant to
Sections 7.1(a) and 7.1(c), commencing with the Fiscal Quarter ending
June 30, 2006, a Compliance Certificate signed on Parent’s and Borrowers’
behalf by a Senior Officer.

 

7.3           Borrower Materials. Parent and each of the Borrowers hereby
acknowledges that (a) the Administrative Agent and/or the Lead Arrangers
will make available to the Lenders and the Issuing Lenders materials and/or
information provided by or on behalf of the Parent and the Borrowers hereunder
(collectively, “Borrower Materials”) by posting the Borrower Materials on
IntraLinks or another similar electronic system (the “Platform”) and (b) certain
of the Lenders may be “public-side” Lenders (i.e. Lenders that do not wish
to receive material non-public information with respect to the Parent, the
Borrowers or their securities) (each a “Public Lender”). Parent and each of the
Borrowers hereby agrees that (w) all Borrower Materials that are to be made
available to Public Lenders shall be clearly and conspicuously marked “PUBLIC”
which, at a minimum, shall mean that the word “PUBLIC” shall appear prominently
on the first page thereof:; (x) by marking Borrower Materials “PUBLIC,”
Parent and each Borrower shall be deemed to have authorized the Administrative
Agent, the Lead Arrangers, the Issuing Lenders and the Lenders to treat such
Borrower Materials as either publicly available information or not material
information (although it may be sensitive and proprietary) with respect to
the Parent, the Borrowers or their securities for purposes of United States
Federal and state securities laws; (v) all Borrower Materials marked “PUBLIC”
are permitted to be made available through a portion of the Platform designated
“Public Investor,” and (z) the Administrative Agent and the Lead Arrangers
shall be entitled to treat any Borrower Materials that are not marked “PUBLIC”
as being suitable only for posting on a portion of the Platform not
designated “Public Investor.”

 

66

 

ARTICLE 8

CONDITIONS

 

8.1           Initial Advances, Etc. The obligation of each Lender to make
the initial Advance to be made by it, the obligation of the Swing Line Lenders
to make Swing Line Advances and the obligation of the relevant Issuing Lenders
to issue the initial Letters of Credit, are each subject to the following
conditions precedent, each of which shall be satisfied prior to the making of
the initial Advances (unless all of the Lenders, in their sole and absolute
discretion, shall agree otherwise):

 

(a)           The Administrative Agent shall have
received all of the following, each of which shall be originals unless
otherwise specified, each properly executed by a Responsible Official of each
party thereto, each dated as of the Effective Date and each in form and
substance satisfactory to the Administrative Agent:

 

(i)            at least one executed counterpart of
this Agreement, together with arrangements satisfactory to the Administrative
Agent for additional executed counterparts, sufficient in number for
distribution to the Lenders, Parent and the Company;

 

(ii)           Committed Advance Notes executed by the
Company in favor of each Lender which has requested the issuance thereof prior
to the Effective Date, each in a principal amount equal to that Lender’s
Applicable Percentage;

 

(iii)          the Swing Line Documents with Bank of
America and any other Swing Line Lenders then designated by the Company;

 

(iv)          the Parent Guaranty executed by Parent;

 

(v)           with respect to the Parent and the
Company, such documentation as the Administrative Agent may require to
establish the due organization, valid existence and good standing of Parent and
the Company, its authority to execute, deliver and perform any Loan
Documents to which it is a Party, the identity, authority and capacity of each
Responsible Official thereof authorized to act on its behalf, including
certified copies of articles of incorporation and amendments thereto, bylaws
and amendments thereto, certificates of good standing, certificates of
corporate resolutions, incumbency certificates and Certificates of Responsible
Officials;

 

(vi)          the Opinions of Counsel;

 

(vii)         such assurances as the Administrative
Agent deems appropriate that the relevant Gaming Boards have approved the
transactions contemplated by the Loan Documents 
to the extent that such approval is required by applicable Gaming Laws
or as otherwise permitted under Schedule 4.3;

 

(viii)        a Certificate of a Responsible Official
signed on Parent’s and the Company’s behalf by a Senior Officer certifying that
the conditions specified in Sections 8.1(e) and 8.1(f) have been
satisfied; and

 

(ix)           such other assurances, certificates,
documents, consents or opinions as the Administrative Agent reasonably may require.

 

67

 

(b)           The fees payable pursuant to
Sections 3.2, 3.3 and 3.6 shall have been paid.

 

(c)           The reasonable costs and expenses of the
Administrative Agent and the Lead Arrangers in connection with the preparation
of the Loan Documents payable pursuant to Section 11.3, and invoiced to
the Parent prior to the Effective Date, shall have been paid.

 

(d)           All breakage costs associated with the
termination of Eurodollar Rate Loans under the Existing Credit Agreement shall
have been paid.

 

(e)           The representations and warranties of
Parent and the Company contained in Article 4 shall be true and correct.

 

(f)            Parent, the Company and any other Parties
shall be in compliance with all the terms and provisions of the Loan Documents,
and after giving effect to the initial Advance no Default or Event of Default
shall have occurred and be continuing.

 

Without
limiting the generality of the provisions of Section 10.4, for purposes of
determining compliance with the conditions specified in this Section 8.1,
each Lender that has signed this Agreement shall be deemed to have consented
to, approved or accepted or to be satisfied with, each document or other matter
required thereunder to be consented to or approved by or acceptable or
satisfactory to a Lender unless the Administrative Agent shall have received
notice from such Lender prior to the proposed Effective Date specifying its
objection thereto.

 

8.2           Any Increasing Advance, Etc. The obligation of each Lender to make
any Committed Advance which would increase the aggregate principal amount of
the outstanding Committed Advances, the obligation of the relevant Issuing
Lender to issue each Letter of Credit and the obligation of the Swing Line
Lenders to make Swing Line Advances, is subject to the following conditions
precedent:

 

(a)           except

 

(i)            for representations and warranties which
expressly speak as of a particular date or are no longer true and correct as a
result of a change which is not a violation of the Loan Documents and

 

(ii)           as disclosed by Parent and Borrowers and
approved in writing by the Requisite Lenders, the representations and
warranties contained in Article 4 (other than Sections 4.4(a), 4.6
(first sentence), and 4.15) shall be true and correct on and as of the date of
the Advance as though made on that date;

 

(b)           there shall not be then pending or
threatened any action, suit, proceeding or investigation against or affecting
Parent or any of the Restricted Subsidiaries or any Property of any of them
before any Governmental Agency that constitutes a Material Adverse Effect;

 

(c)           the Administrative Agent shall, in the
case of a Committed Advance, have timely received a Request for Loan in
compliance with Article 2 (or telephonic or other request for loan
referred to in the second sentence of Section 2.1(b), if applicable) in
compliance with Article 2 (or, in the proper case, a Request for Letter of
Credit and an Application for Letter of Credit); and

 

(d)           the Administrative Agent shall have
received, in form and substance satisfactory to the Administrative Agent,
such other assurances, certificates, documents or consents related

 

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to
the foregoing as the Administrative Agent or Requisite Lenders reasonably may require.

 

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ARTICLE 9

EVENTS OF DEFAULT AND
REMEDIES UPON EVENT OF DEFAULT

 

9.1           Events of Default. The existence or occurrence of any one
or more of the following events, whatever the reason therefor and under any
circumstances whatsoever, shall constitute an Event of Default:

 

(a)           Any Borrower:

 

(i)            fails to pay any principal on any
Committed Advance Note or any Swing Line Advance, or any portion thereof, on
the date when due; or

 

(ii)           fails to make any payment with respect to
any Letter of Credit when required by Section 2.4(e); or

 

(b)           Parent or any Borrower fails to pay any
interest on any of the Committed Advance Notes, or any fees under
Sections 3.4, 3.5 or 3.6, or any portion thereof, within five Business
Days after the date when due; or fails to pay any other fee or amount payable
to the Lenders under any Loan Document, or any portion thereof, within five
Business Days after demand therefor; or

 

(c)           Parent or any Borrower fails, immediately
upon notice from the Administrative Agent, to comply with any of the covenants
contained in Article 6; or

 

(d)           Parent or any Borrower fails to comply
with Section 7.1(h) in any respect that is materially adverse to the
interests of the Lenders; or

 

(e)           Parent, any Borrower or any other Party
fails to perform or observe any other covenant or agreement (not specified
in clauses (a), (b), (c) or (d) above) contained in any Loan
Document on its part to be performed or observed within thirty Business
Days after the giving of notice by the Administrative Agent on behalf of the
Requisite Lenders of such Default; or

 

(f)            Any representation or warranty of Parent
or any Borrower made in any Loan Document, or in any certificate or other
writing delivered by Parent or any Borrower pursuant to any Loan Document,
proves to have been incorrect when made or reaffirmed; or

 

(g)           Parent or any of the Significant
Subsidiaries:

 

(i)            fails to pay the principal, or any
principal installment, of any present or future indebtedness for borrowed money
of $300,000,000 or more, or any guaranty of present or future indebtedness for
borrowed money of $300,000,000 or more, on its part to be paid, when due
(or within any stated grace period), whether at the stated maturity, upon
acceleration, by reason of required prepayment or otherwise; or

 

(ii)           fails to perform or observe any
other term, covenant or agreement on its part to be performed or observed,
or suffers any event to occur, in connection with any present or future
indebtedness for borrowed money of $300,000,000 or more, or of any guaranty of
present or future indebtedness for borrowed money of $300,000,000 or more, if
as a result of such failure or sufferance any holder or

 

70

 

holders
thereof (or an agent or trustee on its or their behalf) has the right to
declare such indebtedness due before the date on which it otherwise would
become due; or

 

(h)           Any event occurs which gives the holder
or holders of any Subordinated Debt in an aggregate principal amount which is
$300,000,000 or more (or an agent or trustee on its or their behalf) the right
to declare such indebtedness due before the date on which it otherwise would
become due, or the right to require the issuer thereof to redeem or purchase,
or offer to redeem or purchase, all or any portion of any Subordinated Debt
prior to its scheduled maturity; or

 

(i)            Any Loan Document, at any time after its
execution and delivery and for any reason other than the agreement of the
Lenders or satisfaction in full of all the Obligations ceases to be in full
force and effect or is declared by a court of competent jurisdiction to be null
and void, invalid or unenforceable in any respect which, in any such event in
the reasonable opinion of the Requisite Lenders, is materially adverse to the
interests of the Lenders; or any Party thereto denies in writing that it has
any or further liability or obligation under any Loan Document, or purports in
writing to revoke, terminate or rescind same; or

 

(j)            A final judgment against the Parent or
any of the Significant Subsidiaries is entered for the payment of money in
excess of $100,000,000 and, absent procurement of a stay of execution, such judgment
remains unsatisfied for thirty calendar days after the date of entry of
judgment, or in any event later than five days prior to the date of any
proposed sale thereunder; or any writ or warrant of attachment or execution or
similar process is issued or levied against all or any material part of
the Property of any such Person and is not released, vacated or fully bonded
within thirty calendar days after its issue or levy; or

 

(k)           The Parent or any of the Significant
Subsidiaries institutes or consents to the institution of any proceeding under
a Debtor Relief Law relating to it or to all or any part of its Property,
or is unable or admits in writing its inability to pay its debts as they
mature, or makes an assignment for the benefit of creditors; or applies for or
consents to the appointment of any receiver, trustee, custodian, conservator,
liquidator, rehabilitator or similar officer for it or for all or any part of
its Property; or any receiver, trustee, custodian, conservator, liquidator,
rehabilitator or similar officer is appointed without the application or
consent of that Person and the appointment continues undischarged or unstayed
for 60 calendar days; or any proceeding under a Debtor Relief Law relating to
any such Person or to all or any part of its Property is instituted
without the consent of that Person and continues undismissed or unstayed for 60
calendar days; or

 

(l)            The occurrence of an Event of Default (as
such term is or may hereafter be specifically defined in any other Loan
Document) under any other Loan Document; or

 

(m)          Any determination is made by a court of
competent jurisdiction that any Subordinated Debt is not subordinated in
accordance with its terms to the Obligations, provided that for so long
as such determination is effectively stayed during any pending appeal the same
shall not constitute an Event of Default; or

 

(n)           Any Pension Plan maintained by the Parent
or any of its Subsidiaries is determined to have a material “accumulated
funding deficiency” as that term is defined in Section 302 of ERISA and
the result is a Material Adverse Effect; or

 

71

 

(o)           The occurrence of a License Revocation
with respect to a license issued to Parent or any of the Restricted
Subsidiaries by any Gaming Board of the States of New Jersey, Nevada,
Mississippi or Louisiana with respect to gaming operations at any gaming
facility accounting for 5% or more of the consolidated gross revenues of Parent
and the Restricted Subsidiaries that continues for thirty calendar days.

 

9.2           Remedies Upon Event of Default. Without limiting any other rights or
remedies of the Creditors provided for elsewhere in this Agreement, or the Loan
Documents, or by applicable Law, or in equity, or otherwise:

 

(a)           Upon the occurrence, and during the
continuance, of any Event of Default other  than an Event of
Default described in Section 9.1(k):

 

(i)            the commitment to make Advances and all
other obligations of the Creditors and all rights of Parent, Borrowers and any
other Parties under the Loan Documents shall be suspended without notice to or
demand upon Parent or the Borrowers , which are expressly waived by Parent and
the Borrowers, except that all of the Lenders or the Requisite Lenders
(as the case may be, in accordance with Section 11.2) may waive
an Event of Default or, without waiving, determine, upon terms and conditions
satisfactory to the Lenders or Requisite Lenders, as the case may be, to
reinstate the Commitments and make further Advances, which waiver or determination
shall apply equally to, and shall be binding upon, all the Lenders; and

 

(ii)           the Requisite Lenders may request
the Administrative Agent to, and the Administrative Agent thereupon shall,
terminate the Commitments, demand that Borrowers deposit cash collateral for
all Letters of Credit in the amount thereof with the Administrative Agent
and/or declare all or any part of the unpaid principal of all Committed
Advance Notes, all interest accrued and unpaid thereon and all other amounts
payable under the Loan Documents to be forthwith due and payable, whereupon the
same shall become and be forthwith due and payable, without protest,
presentment, notice of dishonor, demand or further notice of any kind, all of
which are expressly waived by Parent and the Borrowers.

 

(b)           Upon the occurrence of any Event of
Default described in Section 9.1(k):

 

(i)            the commitment to make Advances and all
other obligations of the Creditors and all rights of Parent, Borrowers and any
other Parties under the Loan Documents shall terminate without notice to or
demand upon Parent or Borrowers, which are expressly waived by Parent and
Borrowers, except that all the Lenders may waive the Event of
Default or, without waiving, determine, upon terms and conditions satisfactory
to all the Lenders, to reinstate the Commitments and make further Advances,
which determination shall apply equally to, and shall be binding upon, all the
Lenders; and

 

(ii)           the unpaid principal of all Committed
Advance Notes, all interest accrued and unpaid thereon and all other amounts
payable under the Loan Documents shall be forthwith due and payable, without
protest, presentment, notice of dishonor, demand or further notice of any kind,
all of which are expressly waived by Parent

 

72

 

and
Borrowers, and Borrowers shall be obligated to Cash Collateralize the L/C
Obligations (in an amount equal to the then Outstanding Amount thereof).

 

(c)           Upon the occurrence of any Event of
Default, the Creditors, or any of them, without notice to (except as
expressly provided for in any Loan Document) or demand upon Parent or
Borrowers, which are expressly waived by Borrowers (except as to notices
expressly provided for in any Loan Document), may proceed (but only with
the consent of the Requisite Lenders) to protect, exercise and enforce their
rights and remedies under the Loan Documents against Parent and the Borrowers
and any other Parties and such other rights and remedies as are provided by Law
or equity; provided that, it is agreed as among the Creditors that,
following any Event of Default consisting of a failure of a Borrower to make
any payment hereunder when due (whether at stated maturity, by acceleration or
otherwise), each Creditor may independently pursue its legal remedies under
this Agreement, its Committed Advance Notes and the other Loan Documents
against Parent and such Borrower in respect of any such defaulted payments
without the consent of the other Lenders, the Issuing Lenders or the
Administrative Agent (except to the extent that such payment default has been
cured), upon the earliest of:

 

(i)            the acceleration of the Obligations;

 

(ii)           any bankruptcy or insolvency event of the
types described in Section 9.1(k) in respect of Parent or such Borrower;
and

 

(iii)          45 days following the date of such
payment default, provided that no individual Creditor may, without the consent
of the Requisite Lenders, purport to accelerate the Obligations.

 

(d)           The order and manner in which the Lenders’
rights and remedies are to be exercised shall be determined by the Requisite
Lenders in their sole discretion, and all payments received by the Creditors,
shall be applied first to the costs and expenses (including attorneys’ fees and
disbursements and the allocated costs of attorneys employed by the
Administrative Agent) of the Creditors, and thereafter paid pro rata to the
Lenders in the same proportions that the aggregate Obligations owed to each
Lender under the Loan Documents bear to the aggregate Obligations owed under
the Loan Documents to all the Lenders, without priority or preference among the
Lenders. Regardless of how each Lender may treat payments for the purpose
of its own accounting, for the purpose of computing the Obligations hereunder
and under the Committed Advance Notes, payments shall be applied first,
to the costs and expenses of the Creditors, as set forth above, second,
to the payment of accrued and unpaid interest due under any Loan Documents to
and including the date of such application (ratably, and without duplication,
according to the accrued and unpaid interest due under each of the Loan
Documents), and third, to the payment of all other amounts (including
principal and fees) then owing to the Creditors under the Loan Documents. No
application of payments will cure any Event of Default, or prevent
acceleration, or continued acceleration, of amounts payable under the Loan
Documents, or prevent the exercise, or continued exercise, of rights or
remedies of the Lenders hereunder or thereunder or at Law or in equity.

 

73

 

ARTICLE
10

ADMINISTRATIVE AGENT

 

10.1         Appointment and Authority. Each of the Lenders and the Issuing
Lender hereby irrevocably appoints Bank of America to act on its behalf as the
Administrative Agent hereunder and under the other Loan Documents and
authorizes the Administrative Agent to take such actions on its behalf and to
exercise such powers as are delegated to the Administrative Agent by the terms
hereof or thereof, together with such actions and powers as are reasonably
incidental thereto. The provisions of this Article are solely for the
benefit of the Administrative Agent, the Lenders and the Issuing Lender, and
neither Parent, any Borrower nor any other Loan Party shall have rights as a
third party beneficiary of any of such provisions.

 

10.2         Rights as a Lender. The Person serving as the
Administrative Agent hereunder shall have the same rights and powers in its
capacity as a Lender as any other Lender and may exercise the same as
though it were not the Administrative Agent and the term “Lender” or “Lenders”
shall, unless otherwise expressly indicated or unless the context otherwise
requires, include the Person serving as the Administrative Agent hereunder in
its individual capacity. Such Person and its Affiliates may accept
deposits from, lend money to, act as the financial advisor or in any other
advisory capacity for and generally engage in any kind of business with Parent,
the Borrowers or any Subsidiary or other Affiliate thereof as if such Person were
not the Administrative Agent hereunder and without any duty to account therefor
to the Lenders.

 

10.3         Exculpatory Provisions. The Administrative Agent shall not have
any duties or obligations except those expressly set forth herein and in the
other Loan Documents. Without limiting the generality of the foregoing, the
Administrative Agent:

 

(a)           shall not be subject to any fiduciary or
other implied duties, regardless of whether a Default has occurred and is
continuing;

 

(b)           shall not have any duty to take any
discretionary action or exercise any discretionary powers, except discretionary
rights and powers expressly contemplated hereby or by the other Loan Documents
that the Administrative Agent is required to exercise as directed in writing by
the Requisite Lenders (or such other number or percentage of the Lenders as
shall be expressly provided for herein or in the other Loan Documents), provided
that the Administrative Agent shall not be required to take any action
that, in its opinion or the opinion of its counsel, may expose the
Administrative Agent to liability or that is contrary to any Loan Document or
applicable law; and

 

(c)           shall not, except as expressly set forth
herein and in the other Loan Documents, have any duty to disclose, and shall
not be liable for the failure to disclose, any information relating to Parent
or any of its Affiliates that is communicated to or obtained by the Person
serving as the Administrative Agent or any of its Affiliates in any capacity.

 

(d)           shall not be liable for any action taken
or not taken by it

 

(i)            with the consent or at the request of the
Requisite Lenders (or such other number or percentage of the Lenders as shall
be necessary, or as the Administrative Agent shall believe in good faith shall
be necessary, under the circumstances as provided in Sections 9.2 and
11.2) or

 

(ii)           in the absence of its own gross
negligence or willful misconduct.

 

74

 

(e)           shall be deemed not to have knowledge of
any Default unless and until notice describing such Default is given to the
Administrative Agent by the Borrower, a Lender or the Issuing Lender.

 

(f)            shall not be responsible for or have any
duty to ascertain or inquire into:

 

(i)            any statement, warranty or representation
made in or in connection with this Agreement or any other Loan Document;

 

(ii)           the contents of any certificate, report
or other document delivered hereunder or thereunder or in connection herewith
or therewith;

 

(iii)          the performance or observance of any of
the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default;

 

(iv)          the validity, enforceability,
effectiveness or genuineness of this Agreement, any other Loan Document or any
other agreement, instrument or document; or

 

(v)           the satisfaction of any condition set
forth in Article 8 or elsewhere herein, other than to confirm receipt of
items expressly required to be delivered to the Administrative Agent.

 

10.4         Reliance by Administrative Agent. The Administrative Agent shall be
entitled to rely upon, and shall not incur any liability for relying upon, any
notice, request, certificate, consent, statement, instrument, document or other
writing (including any electronic message, Internet or intranet website posting
or other distribution) believed by it to be genuine and to have been signed,
sent or otherwise authenticated by the proper Person. The Administrative Agent
also may rely upon any statement made to it orally or by telephone and
believed by it to have been made by the proper Person, and shall not incur any
liability for relying thereon. In determining compliance with any condition
hereunder to the making of a Loan, or the issuance of a Letter of Credit, that
by its terms must be fulfilled to the satisfaction of a Lender or the Issuing
Lender, the Administrative Agent may presume that such condition is
satisfactory to such Lender or the Issuing Lender unless the Administrative
Agent shall have received notice to the contrary from such Lender or the
Issuing Lender prior to the making of such Loan or the issuance of such Letter
of Credit. The Administrative Agent may consult with legal counsel (who may be
counsel for the Borrowers), independent accountants and other experts selected
by it, and shall not be liable for any action taken or not taken by it in
accordance with the advice of any such counsel, accountants or experts.

 

10.5         Delegation of Duties. The Administrative Agent may perform any
and all of its duties and exercise its rights and powers hereunder or under any
other Loan Document by or through any one or more sub agents appointed by the
Administrative Agent. The Administrative Agent and any such sub agent may perform any
and all of its duties and exercise its rights and powers by or through their
respective Related Parties. The exculpatory provisions of this Article shall
apply to any such sub agent and to the Related Parties of the Administrative
Agent and any such sub agent, and shall apply to their respective activities in
connection with the syndication of the credit facilities provided for herein as
well as activities as Administrative Agent.

 

10.6         Resignation by Administrative Agent.

 

(a)           The Administrative Agent may at any
time give notice of its resignation to the Lenders, the Issuing Lender and the
Borrower. Upon receipt of any such notice of resignation, the Requisite Lenders
shall have the right, in consultation with the Borrower, to appoint a

 

75

 

successor,
which shall be a bank with an office in the United States, or an Affiliate of
any such bank with an office in the United States. If no such successor shall
have been so appointed by the Requisite Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent gives notice
of its resignation, then the retiring Administrative Agent may on behalf
of the Lenders and the Issuing Lender, appoint a successor Administrative Agent
meeting the qualifications set forth above; provided that if the Administrative
Agent shall notify the Borrowers and the Lenders that no qualifying Person has
accepted such appointment, then such resignation shall nonetheless become
effective in accordance with such notice and:

 

(i)            the retiring Administrative Agent shall
be discharged from its duties and obligations hereunder and under the other
Loan Documents; and

 

(ii)           all payments, communications and
determinations provided to be made by, to or through the Administrative Agent
shall instead be made by or to each Lender and the Issuing Lender directly,
until such time as the Requisite Lenders appoint a successor Administrative
Agent as provided for above in this Section 10.6.

 

(b)           Upon the acceptance of a successor’s
appointment as Administrative Agent hereunder, such successor shall succeed to
and become vested with all of the rights, powers, privileges and duties of the
retiring (or retired) Administrative Agent, and the retiring Administrative
Agent shall be discharged from all of its duties and obligations hereunder or
under the other Loan Documents (if not already discharged therefrom as provided
above in this Section 10.6). The fees payable by the Borrowers to a
successor Administrative Agent shall be the same as those payable to its
predecessor unless otherwise agreed between the Borrowers and such successor. After
the retiring Administrative Agent’s resignation hereunder and under the other
Loan Documents, the provisions of this Article shall continue in effect
for the benefit of such retiring Administrative Agent, its sub agents and their
respective Related Parties in respect of any actions taken or omitted to be
taken by any of them while the retiring Administrative Agent was acting as
Administrative Agent.

 

(c)           Any resignation by Bank of America as
Administrative Agent pursuant to this Section 10.6 shall also constitute
its resignation as Issuing Lender and as a Swing Line Lender. Upon the
acceptance of a successor’s appointment as Administrative Agent hereunder:

 

(i)            such successor shall succeed to and
become vested with all of the rights, powers, privileges and duties of the
retiring Administrative Agent;

 

(ii)           the retiring Administrative Agent shall
be discharged from all of their respective duties and obligations hereunder or
under the other Loan Documents; and

 

(iii)          the successor Administrative Agent shall
issue letters of credit in substitution for the Letters of Credit, if any,
issued by the retiring Administrative Agent and outstanding at the time of such
succession or make other arrangement satisfactory to the retiring Administrative
Agent to effectively assume the obligations of the retiring Administrative
Agent with respect to such Letters of Credit.

 

76

 

10.7         Non-Reliance on Administrative Agent and
Other Lenders. Each
Lender and the Issuing Lender acknowledges that it has, independently and
without reliance upon the Administrative Agent or any other Lender or any of
their Related Parties and based on such documents and information as it has
deemed appropriate, made its own credit analysis and decision to enter into
this Agreement. Each Lender and the Issuing Lender also acknowledges that it
will, independently and without reliance upon the Administrative Agent or any
other Lender or any of their Related Parties and based on such documents and
information as it shall from time to time deem appropriate, continue to make
its own decisions in taking or not taking action under or based upon this
Agreement, any other Loan Document or any related agreement or any document
furnished hereunder or thereunder.

 

10.8         No Other Duties, Etc. Anything herein to the contrary
notwithstanding, none of the Lead Arrangers, Syndication Agent,
Co-Documentation Agents or listed on the cover page hereof shall have any
powers, duties or responsibilities under this Agreement or any of the other
Loan Documents, except in its capacity, as applicable, as the Administrative
Agent, a Lender or the Issuing Lender hereunder.

 

10.9         Administrative Agent May File Proofs
of Claim. In case
of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial
proceeding relative to any Loan Party, the Administrative Agent (irrespective
of whether the principal of any Loan or L/C Obligation shall then be due and
payable as herein expressed or by declaration or otherwise and irrespective of
whether the Administrative Agent shall have made any demand on any Loan Party)
shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

(a)           to file and prove a claim for the whole
amount of the principal and interest owing and unpaid in respect of the Loans,
L/C Obligations and all other Obligations that are owing and unpaid and to file
such other documents as may be necessary or advisable in order to have the
claims of the Lenders, the Issuing Lender and the Administrative Agent
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Lenders, the Issuing Lender and the Administrative Agent
and their respective agents and counsel and all other amounts due the Lenders,
the Issuing Lender and the Administrative Agent under Sections 3.2, 3.3,
3.4, 3.5, and 3.6) allowed in such judicial proceeding; and

 

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

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Lender and the Issuing Lender to make such payments to the Administrative Agent
and, in the event that the Administrative Agent shall consent to the making of
such payments directly to the Lenders and the Issuing Lender, to pay to the
Administrative Agent any amount due for the reasonable compensation, expenses,
disbursements and advances of the Administrative Agent and its agents and
counsel, and any other amounts due the Administrative Agent under
Sections 3.2, 3.3, 3.4, 3.5 and 3.6. Nothing contained herein shall be
deemed to authorize the Administrative Agent to authorize or consent to or
accept or adopt on behalf of any Lender or the Issuing Lender any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of any Lender or to authorize the Administrative
Agent to vote in respect of the claim of any Lender in any such proceeding.

 

10.10       No Obligations of Parent or Borrowers. Nothing contained in this Article 10
shall be deemed to impose upon Parent or Borrowers any obligation in respect of
the due and punctual performance by the Administrative Agent of its obligations
to the Lenders under any provision of this

 

77

 

Agreement,
and Parent and Borrowers shall have no liability to any Creditor in respect of
any failure by any Creditor to perform any of its obligations to any other
Creditor under this Agreement.

 

78

 

ARTICLE 11

MISCELLANEOUS

 

11.1         Cumulative Remedies; No Waiver. The rights, powers, privileges and
remedies of the Creditors provided herein or in any Committed Advance Note or
other Loan Document are cumulative and not exclusive of any right, power,
privilege or remedy provided by Law or equity. No failure or delay on the part of
any Creditor in exercising any right, power, privilege or remedy may be,
or may be deemed to be, a waiver thereof; nor may any single or
partial exercise of any right, power, privilege or remedy preclude any other or
further exercise of the same or any other right, power, privilege or remedy. The
terms and conditions of Article 8 hereof are inserted for the sole benefit
of the Creditors; the same may be waived in whole or in part, with or
without terms or conditions, in respect of any Loan or Letter of Credit without
prejudicing the Creditors rights to assert them in whole or in part in
respect of any other Loan or Letter of Credit.

 

11.2         Amendments; Consents. No amendment, modification, supplement,
extension, termination or waiver of any provision of this Agreement or any
other Loan Document, no approval or consent thereunder, and no consent to any
departure by Parent, Borrowers or any other Party therefrom, may in any
event be effective unless in writing signed by the Requisite Lenders (and, in
the case of any amendment, modification or supplement of or to any Loan
Document to which Parent or any Borrower is a party, signed by Parent and that
Borrower and, in the case of any amendment, modification or supplement to Article 10,
signed by the Administrative Agent), and then only in the specific instance and
for the specific purpose given; provided, however, that without
the approval in writing of all the Lenders, no amendment, modification,
supplement, termination, waiver or consent may be effective:

 

(a)           To forgive any principal Obligation,
defer any required payment of any Obligation, reduce the amount or rate of
interest payable on any Loan or Advance without the consent of the affected
Lender, increase the amount of the Commitments (except as set forth in Section 2.6)
or increase the Applicable Percentage of any Lender or decrease the amount of
any letter of credit fee or facility fee payable to any Lender (other than as a
result of exercising rights under Section 11.14), or reduce any other fee
or amount payable to the Creditors under the Loan Documents without the consent
of each affected Creditor or to waive an Event of Default consisting of the
failure of any Borrower to pay when due principal, interest or any facility fee
or letter of credit fee;

 

(b)           To postpone any date fixed for any
payment of principal of, prepayment of principal of or any installment of
interest on, any Committed Advance Note or any installment of any facility fee
or letter of credit fee, or to extend the term of the Commitments;

 

(c)           To amend the provisions of the definition
of “Requisite Lenders” or this Section 11.2 or to amend or waive Section 6.2;

 

(d)           To release or subordinate the Parent
Guaranty;

 

(e)           To amend any provision of this Agreement
that expressly requires the consent or approval of all the Lenders;

 

(f)            To waive the condition precedent 8.1(h).

 

Any
amendment, modification, supplement, termination, waiver or consent pursuant to
this Section 11.2 shall apply equally to, and shall be binding upon, all
of the Creditors. If, in connection with any proposed amendment, modification,
supplement, termination, waiver or consent to any of the provisions hereof as

 

79

 

contemplated
by clauses (a) through (d), inclusive, of this Section 11.2, the
consent of the Requisite Lenders is obtained, but the consent of one or more of
the other Lenders is required and is not obtained, then the Borrowers shall
have the right to replace such non-consenting Lender with one or more Eligible
Assignees in accordance with Section 11.14(b) if such Eligible
Assignee consents to the proposed amendment, modification, supplement,
termination, waiver or consent.

 

11.3         Costs, Expenses and Taxes. The Parent and Company shall pay the
reasonable costs and expenses of the Administrative Agent and the Lead
Arrangers in connection with the negotiation, preparation, syndication,
execution, enforcement, and delivery of the Loan Documents, including without
limitation, the allocated fees and expenses of in-house counsel, regardless of
whether this Agreement ever becomes effective to replace the Existing Credit
Facilities. The Borrowers shall pay within two Business Days after demand,
accompanied by an invoice therefor, the reasonable costs and expenses of the
Administrative Agent and the Lead Arrangers in connection with the negotiation,
preparation, syndication, execution and delivery of the Loan Documents and any
amendment thereto or waiver thereof which is requested by Borrowers or is
entered into when any Default or Event of Default exists. Following any Event
of Default, each Borrower shall pay on demand, accompanied by an invoice
therefor, the reasonable costs and expenses of the Administrative Agent and
each of the other Creditors in connection with the restructuring,
reorganization (including a bankruptcy reorganization) and enforcement or
attempted enforcement of the Loan Documents, and any matter related thereto. The
foregoing costs and expenses shall include filing fees, recording fees, title
insurance fees, appraisal fees, search fees, and other out-of-pocket expenses
and the reasonable fees and out-of-pocket expenses of any legal counsel
(including allocated costs of legal counsel employed by any Creditor),
independent public accountants and other outside experts retained by any of the
Creditors, whether or not such costs and expenses are incurred or suffered by
the Creditors in connection with or during the course of any bankruptcy or
insolvency proceedings of the Parent or any Restricted Subsidiary thereof. Such
costs and expenses shall also include, in the case of any amendment or waiver
of any Loan Document requested by the Parent or the Borrowers, the
administrative costs of the Administrative Agent reasonably attributable
thereto. Each Borrower shall pay any and all documentary and other taxes,
excluding, in the case of each Creditor and its Eurodollar Lending Office
thereof, (i) taxes imposed on or measured in whole or in part by its
net income or capital and franchise taxes imposed on it, (ii) any withholding
taxes or other taxes based on net income (other than withholding taxes and
taxes based on net income resulting from or attributable to any change
following the Effective Date in any law, rule or regulation or any change
following the Effective Date in the interpretation or administration of any
law, rule or regulation by any Governmental Agency) or (iii) any
withholding taxes or other taxes based on net income for any period with
respect to which it has failed to provide the Parent with the appropriate form or
forms required by Section 11.22, to the extent such forms are then
required by applicable Laws, and all costs, expenses, fees and charges payable
or determined to be payable in connection with the filing or recording of this
Agreement, any other Loan Document or any other instrument or writing to be
delivered hereunder or thereunder, or in connection with any transaction
pursuant hereto or thereto, and shall reimburse, hold harmless and indemnify
the Creditors from and against any and all loss, liability or legal or other
expense with respect to or resulting from any delay in paying or failure to pay
any such tax, cost, expense, fee or charge or that any of them may suffer
or incur by reason of the failure of any Party to perform any of its
Obligations. Any amount payable to the Creditors under this Section 11.3
shall bear interest from the second Business Day following the date of demand
for payment at the Default Rate.

 

11.4         Obligations of Lenders Several. The obligations of the Lenders
hereunder to make Committed Advances, to fund participations in Letters of
Credit and Swing Line Advances are several and not joint. The failure of any
Lender to make any Committed Loan or to fund any such participation on any date
required hereunder shall not relieve any other Lender of its corresponding
obligation to do so on such date, and no Lender shall be responsible for the
failure of any other Lender to so make its Committed Loan or to purchase its
participation.

 

80

 

11.5         Survival of Representations and
Warranties. All
representations and warranties made hereunder and in any other Loan Document or
other document delivered pursuant hereto or thereto or in connection herewith
or therewith shall survive the execution and delivery hereof and thereof. Such
representations and warranties have been or will be relied upon by the
Administrative Agent and each Lender, regardless of any investigation made by
the Administrative Agent or any Lender or on their behalf and notwithstanding
that the Administrative Agent or any Lender may have had notice or
knowledge of any Default at the time of any Credit Extension, and shall
continue in full force and effect as long as any Loan or any other Obligation
hereunder shall remain unpaid or unsatisfied or any Letter of Credit shall
remain outstanding.

 

11.6         Notices; Effectiveness; Electronic
Communication.

 

(a)           Notices Generally. Except in the case of notices and other
communications expressly permitted to be given by telephone (and except as
provided in subsection (b) below), all notices and other
communications provided for herein shall be in writing and shall be delivered
by hand or overnight courier service, mailed by certified or registered mail or
sent by telecopier as follows, and all notices and other communications
expressly permitted hereunder to be given by telephone shall be made to the
applicable telephone number, as follows:

 

(i)            if to the Borrower, the Administrative
Agent, Bank of America as Issuing Lender or as a Swing Line Lender, to the
address, telecopier number, electronic mail address or telephone number
specified for such Person on Schedule 11.6; and

 

(ii)           if to any other Lender or Issuing Lender,
to the address, telecopier number, electronic mail address or telephone number
specified in its Administrative Questionnaire.

 

Notices sent by hand or overnight courier service, or
mailed by certified or registered mail, shall be deemed to have been given when
received; notices sent by telecopier shall be deemed to have been given when
sent (except that, if not given during normal business hours for the recipient,
shall be deemed to have been given at the opening of business on the next
business day for the recipient). Notices delivered through electronic
communications to the extent provided in subsection (b) below, shall
be effective as provided in such subsection (b).

 

(b)           Electronic Communications. Notices and other communications to the
Lenders and the Issuing Lender hereunder may be delivered or furnished by
electronic communication (including e-mail and Internet or intranet websites)
pursuant to procedures approved by the Administrative Agent, provided that
the foregoing shall not apply to notices to any Lender or the Issuing Lender
pursuant to Article 2 if such Lender or the Issuing Lender, as applicable,
has notified the Administrative Agent that it is incapable of receiving notices
under such Article by electronic communication. The Administrative Agent
or any Borrower may, in its discretion, agree to accept notices and other
communications to it hereunder by electronic communications pursuant to
procedures approved by it, provided that approval of such procedures may be
limited to particular notices or communications. Unless the Administrative
Agent otherwise prescribes:

 

(i)            notices and other communications sent to
an e-mail address shall be deemed received upon the sender’s receipt of an
acknowledgement from the intended recipient (such as by the “return receipt
requested” function, as available, return

 

81

 

e-mail
or other written acknowledgement), provided that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient; and

 

(ii)           notices or communications posted to an
Internet or intranet website shall be deemed received upon the deemed receipt
by the intended recipient at its e-mail address as described in the foregoing
clause (i) of notification that such notice or communication is
available and identifying the website address therefor.

 

(c)           Change of Address, Etc. Each of the Borrowers, the
Administrative Agent, the Issuing Lenders and the Swing Line Lenders may change
its address, telecopier or telephone number for notices and other
communications hereunder by notice to the other parties hereto. Each other
Lender may change its address, telecopier or telephone number for notices
and other communications hereunder by notice to the Borrower, the
Administrative Agent, the Issuing Lenders and the Swing Line Lenders.

 

(d)           Reliance by Administrative Agent, Issuing
Lenders and Lenders.
The Administrative Agent, the Issuing Lenders, the Swing Line Lenders and the
Lenders shall be entitled to rely and act upon any notices (including
telephonic Requests for Loans and telephonic requests for Swing Line Advances)
purportedly given by or on behalf of the Borrowers even if:

 

(i)            such notices were not made in a manner
specified herein, were incomplete or were not preceded or followed by any other
form of notice specified herein; or

 

(ii)           the terms thereof, as understood by the
recipient, varied from any confirmation thereof.

 

The Borrowers shall indemnify the Administrative
Agent, each Issuing Lender, each Lender and the Related Parties of each of them
from all losses, costs, expenses and liabilities resulting from the reliance by
such Person on each notice purportedly given by or on behalf of the Borrower. All
telephonic notices to and other telephonic communications with the
Administrative Agent may be recorded by the Administrative Agent, and each
of the parties hereto hereby consents to such recording.

 

11.7         Execution of Loan Documents. Unless the Administrative Agent
otherwise specifies with respect to any Loan Document:

 

(a)           this Agreement and any other Loan
Document may be executed in any number of counterparts and any party
hereto or thereto may execute any counterpart, each of which when executed
and delivered will be deemed to be an original and all of which counterparts of
this Agreement or any other Loan Document, as the case may be, when taken
together will be deemed to be but one and the same instrument; and

 

(b)           execution of any such counterpart may be
evidenced by a telecopier transmission of the signature of such party.

 

The
execution of this Agreement or any other Loan Document by any party hereto or
thereto will not become effective until counterparts hereof or thereof, as the
case may be, have been executed by all the parties hereto or thereto.

 

82

 

11.8         Successors and Assigns.

 

(a)           Successors and Assigns Generally. The provisions of this Agreement shall
be binding upon and inure to the benefit of the parties hereto and their
respective successors and assigns permitted hereby, except that no Borrower and
no other Loan Party may assign or otherwise transfer any of its rights or
obligations hereunder without the prior written consent of the Administrative
Agent and each Lender and no Lender may assign or otherwise transfer any
of its rights or obligations hereunder except:

 

(i)            to an Eligible Assignee in accordance
with the provisions of subsection (b) of this Section 11.8;

 

(ii)           by way of participation in accordance
with the provisions of subsection (d) of this Section 11.8;

 

(iii)          by way of pledge or assignment of a
security interest subject to the restrictions of  Section 11.8(f); or

 

(iv)          to an SPC in accordance with the
provisions of Section 11.8(h).

 

Any other attempted assignment or transfer by any
party hereto shall be null and void. Nothing in this Agreement, expressed or
implied, shall be construed to confer upon any Person (other than the parties
hereto, their respective successors and assigns permitted hereby, Participants
to the extent provided in Section 11.8(d) and, to the extent
expressly contemplated hereby, the Related Parties of each of the
Administrative Agent, the Issuing Lender and the Lenders) any legal or
equitable right, remedy or claim under or by reason of this Agreement.

 

(b)           Assignments by Lenders. Any Lender may at any time assign
to one or more Eligible Assignees all or a portion of its rights and
obligations under this Agreement (including all or a portion of its Commitment
and the Loans (including for purposes of this Section 11.8(b),
participations in L/C Obligations and in Swing Line Advances) at the time owing
to it); provided  that any such assignment shall be subject to
each of the following conditions:

 

(i)            Minimum Amounts.

 

(A)          In the case of an assignment of the
entire remaining amount of the assigning Lender’s Commitment and the Loans at
the time owing to it or in the case of an assignment to a Lender, an Affiliate
of a Lender or an Approved Fund, no minimum amount need be assigned; and

 

(B)           in any case not described in subsection (b)(i)(A) of
this Section, the aggregate amount of the Commitment (which for this purpose
includes Loans outstanding thereunder) or, if the Commitment is not then in
effect, the principal outstanding balance of the Loans of the assigning Lender
subject to each such assignment, determined as of the date the Assignment and
Assumption with respect to such assignment is delivered to the Administrative
Agent or, if “Trade Date” is specified in the Assignment and Assumption, as of
the Trade Date, shall not be less than $5,000,000 unless each of the
Administrative Agent and, so long as no

 

83

 

Event
of Default has occurred and is continuing, the Company otherwise consents (each
such consent not to be unreasonably withheld or delayed); provided,
however, that concurrent assignments to members of an Assignee Group and
concurrent assignments from members of an Assignee Group to a single Eligible
Assignee (or to an Eligible Assignee and members of its Assignee Group) will be
treated as a single assignment for purposes of determining whether such minimum
amount has been met.

 

(ii)           Proportionate Amounts. Each partial assignment shall be made
as an assignment of a proportionate part of all the assigning Lender’s
rights and obligations under this Agreement with respect to the Loans or the
Commitment assigned, except that this clause (ii) shall not apply to
a Swing Line Lender’s rights and obligations in respect of Swing Line Advances.

 

(iii)          Required Consents. No consent shall be required for any
assignment except to the extent required by subsection (b)(i)(B) of
this Section and, in addition:

 

(A)          the consent of the Company (such consent
not to be unreasonably withheld or delayed) shall be required unless (1) an
Event of Default has occurred and is continuing at the time of such assignment
or (2) such assignment is to a Lender, an Affiliate of a Lender or an
Approved Fund; and

 

(B)           the consent of the Administrative Agent (such
consent not to be unreasonably withheld or delayed) shall be required if such
assignment is to a Person that is not a Lender, an Affiliate of such Lender or
an Approved Fund with respect to such Lender.

 

(iv)          Assignment and Assumption. the parties to each assignment shall
execute and deliver to the Administrative Agent an Assignment and Assumption,
together with a processing and recordation fee in the amount, if any, required
as set forth in Schedule 11.8, provided, however, that the
Administrative Agent may, in its sole discretion, elect to waive such
processing and recordation fee in the case of any assignment. The Eligible
Assignee, if it is not a Lender, shall deliver to the Administrative Agent an
Administrative Questionnaire.

 

(v)           No Assignment to Borrower. No such assignment shall be made to any
Borrower or any Borrower’s Affiliates or Subsidiaries.

 

(vi)          No Assignment to Natural Persons. No such assignment shall be made to a
natural person.

 

Subject to acceptance and recording thereof by the
Administrative Agent pursuant to Section 11.8(c), from and after the
effective date specified in each Assignment and Assumption, the Eligible
Assignee thereunder shall be a party to this Agreement and, to the extent of
the interest assigned by such Assignment and Assumption, have the rights and
obligations of a Lender under this Agreement, and the assigning Lender
thereunder shall, to the extent of the interest assigned by such Assignment and
Assumption, be released from its obligations under this Agreement (and, in the
case of an Assignment and Assumption covering all of the assigning Lender’s
rights and obligations under this

 

84

 

Agreement, such Lender shall cease to be a party
hereto) but shall continue to be entitled to the benefits of Sections 3.7, 3.8,
3.12(d) and 11.10 with respect to facts and circumstances occurring prior
to the effective date of such assignment. Upon request, the Borrowers (at their
expense) shall execute and deliver a Committed Advance Note to the assignee
Lender. Any assignment or transfer by a Lender of rights or obligations under
this Agreement that does not comply with this subsection shall be treated
for purposes of this Agreement as a sale by such Lender of a participation in
such rights and obligations in accordance with Section 11.8(d).

 

(c)           Register. The Administrative Agent, acting solely for this
purpose as an agent of the Borrowers, shall maintain at the Administrative
Agent’s Office  a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names
and addresses of the Lenders, and the Commitments of, and principal amounts of
the Loans and L/C Obligations owing to, each Lender pursuant to the terms
hereof from time to time (the “Register”). The entries in the Register shall be
conclusive, and the Borrower, the Administrative Agent and the Lenders may treat
each Person whose name is recorded in the Register pursuant to the terms hereof
as a Lender hereunder for all purposes of this Agreement, notwithstanding
notice to the contrary. The Register shall be available for inspection by each
of the Borrowers and any Lender, at any reasonable time and from time to time
upon reasonable prior notice.

 

(d)           Participations. Any Lender may at any time, without
the consent of, or notice to, the Borrowers or the Administrative Agent, sell
participations to any Person (other than a natural person or the Parent, the
Borrowers or any of their Affiliates or Subsidiaries ) (each, a “Participant”)
in all or a portion of such Lender’s rights and/or obligations under this
Agreement (including all or a portion of its Commitment and/or the Loans
(including such Lender’s participations in L/C Obligations and/or Swing Line
Advances) owing to it); provided  that:

 

(i)            such Lender’s obligations under this
Agreement shall remain unchanged;

 

(ii)           such Lender shall remain solely
responsible to the other parties hereto for the performance of such
obligations; and

 

(iii)          the Borrower, the Administrative Agent,
the Lenders and the Issuing Lender shall continue to deal solely and directly
with such Lender in connection with such Lender’s rights and obligations under
this Agreement.

 

Any agreement or instrument pursuant to which a Lender
sells such a participation shall provide that such Lender shall retain the sole
right to enforce this Agreement and to approve any amendment, modification or
waiver of any  provision of this
Agreement; provided  that such agreement or instrument may provide
that such Lender will not, without the consent of the Participant, agree to any
amendment, waiver or other modification described in the first proviso to Section 11.2
that affects such Participant. Subject to Section 11.8(e), Parent and each
Borrower agrees that each Participant shall be entitled to the benefits of
Sections 3.7, 3.8 and 3.12(d) to the same extent as if it were a Lender
and had acquired its interest by assignment pursuant to Section 11.8(b). To
the extent permitted by law, each Participant also shall be entitled to the
benefits of Section 11.9 as though it were a Lender, provided such
Participant agrees to be subject to Section 2.11 as though it were a
Lender.

 

85

 

(e)           Limitations upon Participant Rights. A Participant shall not be entitled to
receive any greater payment under Section 3.7, 3.8 or 3.12(d) than
the applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with the Borrower’s prior written consent. A
Participant that would be a Foreign Lender if it were a Lender shall not be
entitled to the benefits of Section 3.12(d) unless the Company is
notified of the participation sold to such Participant and such Participant
agrees, for the benefit of the Borrower, to comply with Section 11.22 as
though it were a Lender.

 

(f)            Certain Pledges. Any Lender may at any time pledge
or assign a security interest in all or any portion of its rights under this
Agreement (including under its Committed Advance Note, if any) to secure
obligations of such Lender, including any pledge or assignment to secure
obligations to a Federal Reserve Bank; provided  that no such
pledge or assignment shall release such Lender from any of its obligations
hereunder or substitute any such pledgee or assignee for such Lender as a party
hereto.

 

(g)           Electronic Execution of Assignments. The words “execution,” “signed,” “signature,”
and words of like import in any Assignment and Assumption shall be deemed to
include electronic signatures or the keeping of records in electronic form,
each of which shall be of the same legal effect, validity or enforceability as
a manually executed signature or the use of a paper-based recordkeeping system,
as the case may be, to the extent and as provided for in any applicable
law, including the Federal Electronic Signatures in Global and National
Commerce Act, the New York State Electronic Signatures and Records Act, or any
other similar state laws based on the Uniform Electronic Transactions Act.

 

(h)           Special Purpose Funding Vehicles. Notwithstanding anything to the
contrary contained herein, any Lender (a “Granting Lender”) may grant
to a special purpose funding vehicle identified as such in writing from time to
time by the Granting Lender to the Administrative Agent and the Borrowers (a “SPC”)
the option to provide all or any part of any Committed Loan that such
Granting Lender would otherwise be obligated to make pursuant to this
Agreement; provided  that

 

(i)            nothing herein shall constitute a
commitment by any SPC to fund any Committed Loan, and

 

(ii)           if an SPC elects not to exercise such
option or otherwise fails to make all or any part of such Committed Loan,
the Granting Lender shall be obligated to make such Committed Loan pursuant to
the terms hereof or, if it fails to do so, to make such payment to the
Administrative Agent as is required under Section 2.11(a).

 

Each party hereto hereby agrees that:

 

(x)            neither the grant to any SPC nor the
exercise by any SPC of such option shall increase the costs or expenses or
otherwise increase or change the obligations of the Borrowers under this
Agreement (including its obligations under Sections 3.7 and 3.8),

 

(y)           no SPC shall be liable for any indemnity
or similar payment obligation under this Agreement for which a Lender would be
liable, and

 

86

 

(z)            the Granting Lender shall for all
purposes, including the approval of any amendment, waiver or other modification
of any provision of any Loan Document, remain the lender of record hereunder.

 

The making of a Committed Loan by an SPC hereunder
shall utilize the Commitment of the Granting Lender to the same extent, and as
if, such Committed Loan were made by such Granting Lender. In furtherance of
the foregoing, each party hereto hereby agrees (which agreement shall survive
the termination of this Agreement) that, prior to the date that is one year and
one day after the payment in full of all outstanding commercial paper or other
senior debt of any SPC, it will not institute against, or join any other Person
in instituting against, such SPC any bankruptcy, reorganization, arrangement,
insolvency, or liquidation proceeding under the laws of the United States or
any State thereof. Notwithstanding anything to the contrary contained herein,
any SPC may (1) with notice to, but without prior consent of the
Borrowers and the Administrative Agent and with the payment of a processing fee
of $2,500, assign all or any portion of its right to receive payment with
respect to any Committed Loan to the Granting Lender and (2) disclose on a
confidential basis any non-public information relating to its funding of
Committed Loans to any rating agency, commercial paper dealer or provider of
any surety or guarantee or credit or liquidity enhancement to such SPC.

 

(iii)          Resignation as Issuing Lender or Swing
Line Lenders after Assignment. Notwithstanding anything to the contrary contained
herein, if at any time Bank of America assigns all of its Commitment and Loans
pursuant to subsection (b) above, Bank of America shall be deemed to
have concurrently resigned as an Issuing Lender and a Swing Line Lender. In the
event of any such resignation as an Issuing Lender or Swing Line Lender, Parent
and the Borrowers shall be entitled to appoint from among the Lenders an
additional Issuing Lender or Swing Line Lender hereunder; provided, however,
that no failure by Parent and the Borrowers to appoint any such successor shall
affect the resignation of Bank of America as an Issuing Lender or as a Swing
Line Lender. If Bank of America resigns as an Issuing Lender, it shall retain
all the rights and obligations of the Issuing Lender hereunder with respect to
all Letters of Credit outstanding as of the effective date of its resignation
as Issuing Lender and all L/C Obligations with respect thereto (including the
right to require the Lenders to make Base Rate Loans or fund risk
participations in Unreimbursed Amounts pursuant to Section 2.4(g)). If
Bank of America resigns as a Swing Line Lender, it shall retain all the rights
of a Swing Line Lender provided for hereunder with respect to Swing Line
Advances made by it and outstanding as of the effective date of such
resignation, including the right to require the Lenders to make Base Rate Loans
or fund risk participations in outstanding Swing Line Advances pursuant to Section 2.5.

 

(i)            Notwithstanding anything to the contrary
herein, the rights of the Lenders to make assignment of, and grant
participations in, their Applicable Percentage of the Commitments shall be
subject to the approval of any Gaming Board, to the extent required by
applicable Gaming Laws.

 

11.9         Sharing of Setoffs. Each Lender severally agrees that if
it, through the exercise of any right of setoff, banker’s lien or counterclaim
against Parent, any Borrower, or otherwise, receives payment of the Obligations
held by it that is ratably more than any other Lender, through any means,
receives in payment of the Obligations held by that Lender, then, subject to
applicable Laws:

 

87

 

(a)           The Lender exercising the right of
setoff, banker’s lien or counterclaim or otherwise receiving such payment shall
purchase, and shall be deemed to have simultaneously purchased, from the other Lender
a participation in the Obligations held by the other Lender and shall pay to
the other Lender a purchase price in an amount so that the share of the
Obligations held by each Lender after the exercise of the right of setoff,
banker’s lien or counterclaim or receipt of payment shall be in the same
proportion that existed prior to the exercise of the right of setoff, banker’s
lien or counterclaim or receipt of payment; and

 

(b)           Such other adjustments and purchases of
participations shall be made from time to time as shall be equitable to ensure
that all of the Lenders share any payment obtained in respect of the
Obligations ratably in accordance with each Lender’s share of the Obligations
immediately prior to, and without taking into account, the payment; provided
that, if all or any portion of a disproportionate payment obtained as a result
of the exercise of the right of setoff, banker’s lien, counterclaim or
otherwise is thereafter recovered from the purchasing Lender by Parent,
Borrowers or any Person claiming through or succeeding to the rights of Parent
or Borrowers, the purchase of a participation shall be rescinded and the
purchase price thereof shall be restored to the extent of the recovery, but
without interest. Each Lender that purchases a participation in the Obligations
pursuant to this Section 11.9 shall from and after the purchase have the
right to give all notices, requests, demands, directions and other
communications under this Agreement with respect to the portion of the
Obligations purchased to the same extent as though the purchasing Lender were
the original owner of the Obligations purchased. Parent and each Borrower
expressly consents to the foregoing arrangements and agrees that any Lender
holding a participation in an Obligation so purchased may exercise any and
all rights of setoff, banker’s lien or counterclaim with respect to the
participation as fully as if the Lender were the original owner of the
Obligation purchased.

 

11.10       Indemnity by Parent and Borrowers; Waiver
of Consequential Damages, Etc.. Parent and each Borrower jointly and severally (but
as between Parent and Borrowers, ratably) agrees to indemnify, save and hold
harmless each of the Creditors and the Lead Arrangers and their Affiliates,
directors, officers, agents, attorneys and employees (collectively the “Indemnitees”)
from and against: (a) Any and all claims, demands, losses, liabilities,
damages, reasonable expenses, including, but not limited to reasonable
attorneys’ fees, including the reasonably allocated cost of internal counsel,
and reasonable settlement costs, actions or causes of action (except a claim,
demand, action, or cause of action for any amount excluded from the definition
of “Taxes” in Section 3.12(d)) if the claim, demand, action or cause of
action arises out of or relates to any act or omission (or alleged act or
omission) of Parent, any Borrower, its Affiliates or any of its officers,
directors or shareholders relating to the Commitments, the use or contemplated
use of proceeds of any Loan or Letter of Credit, or the relationship of Parent,
Borrowers and the Creditors under this Agreement; (b) Any administrative
or investigative proceeding by any Governmental Agency arising out of or
related to a claim, demand, action or cause of action described in clause (a) above;
and (c) any Indemnitee that proposes to settle or compromise any claim or
proceeding for which Parent or the Borrowers may be liable for payment of
indemnity hereunder shall give Parent and the Borrowers written notice of the
terms of such proposed settlement or compromise reasonably in advance of
settling or compromising such claim or proceeding and shall obtain Parent’s and
the Borrowers’ prior consent (which shall not be unreasonably withheld). In
connection with any claim, demand, action or cause of action covered by this Section 11.10
against more than one Indemnitee, all such Indemnitees shall be represented by
the same legal counsel (which may be a law firm engaged by the Indemnitees
or attorneys employed by an Indemnitee or a combination of the foregoing)
selected by the Indemnitees; provided, that if such legal counsel determines in
good faith that representing all such Indemnitees would or could result in a
conflict of interest under Laws or ethical principles applicable to

 

88

 

such
legal counsel or that a defense or counterclaim is available to an Indemnitee
that is not available to all such Indemnitees, then to the extent reasonably
necessary to avoid such a conflict of interest or to permit unqualified
assertion of such a defense or counterclaim, each Indemnitee shall be entitled
to separate representation, with all such legal counsel using reasonable
efforts to avoid unnecessary duplication of effort by counsel for all Indemnitees;
and further provided that the Administrative Agent (as an Indemnitee) shall at
all times be entitled to representation by separate legal counsel (which may be
a law firm or attorneys employed by the Administrative Agent or a combination
of the foregoing). Any obligation or liability of the Parent and the Borrowers
to any Indemnitee under this Section 11.10 shall survive the expiration or
termination of this Agreement and the repayment of all Loans and the payment
and performance of all other Obligations owed to the Lenders.

 

To the
fullest extent permitted by applicable law, Parent and Borrowers shall not
assert, and each hereby waives, any claim against any Indemnitee, on any theory
of liability, for special, indirect, consequential or punitive damages (as
opposed to direct or actual damages) arising out of, in connection with, or as
a result of, this Agreement, any other Loan Document or any agreement or
instrument contemplated hereby, the transactions contemplated hereby or
thereby, any Loan or Letter of Credit or the use of the proceeds thereof. No
Indemnitee referred to in this Section shall be liable for any damages
arising from the use by unintended recipients of any information or other
materials distributed to such unintended recipients by such Indemnitee through
telecommunications, electronic or other information transmission systems in
connection with this Agreement or the other Loan Documents or the transactions
contemplated hereby or thereby other than for direct or actual damages
resulting from the gross negligence or willful misconduct of such Indemnitee as
determined by a final and nonappealable judgment of a court of competent
jurisdiction.

 

11.11       Nonliability of the Lenders. Parent and each Borrower acknowledges
and agrees that:

 

(a)           Any inspections of any Property of Parent
or its Subsidiaries made by or through the Creditors are solely for purposes of
administration of this Agreement and Parent and the Borrowers are not entitled
to rely upon the same (whether or not such inspections are at the expense of
Parent and the Borrowers);

 

(b)           By accepting, furnishing or approving
anything required to be observed, performed, fulfilled or given to the
Creditors pursuant to the Loan Documents, none of the Creditors shall be deemed
to have warranted or represented the sufficiency, legality, effectiveness or
legal effect of the same, or of any term, provision or condition thereof, and
such acceptance, furnishing or approval thereof shall not constitute a warranty
or representation to anyone with respect thereto by the Creditors;

 

(c)           The relationship among Parent, the
Borrowers and the Creditors is, and shall at all times remain, solely that of
borrowers, guarantors and lenders; none of the Creditors shall under any
circumstance be construed to be partners or joint venturers of Parent,
Borrowers or their Affiliates; none of the Creditors shall under any
circumstance be deemed to be in a relationship of confidence or trust or a
fiduciary relationship with Parent or its Affiliates, or to owe any fiduciary duty
to Parent or its Affiliates; none of the Creditors undertakes or assumes any
responsibility or duty to Parent or its Affiliates to select, review, inspect,
supervise, pass judgment upon or inform Parent or its Affiliates of any
matter in connection with their Property or the operations of Parent or its
Affiliates; Parent and its Affiliates shall rely entirely upon their own
judgment with respect to such matters; and any review, inspection, supervision,
exercise of judgment or supply of information undertaken or assumed by the
Creditors in connection with such matters is

 

89

 

solely
for the protection of the Creditors and neither Parent, the Borrowers nor any
other Person is entitled to rely thereon; and

 

(d)           The Creditors shall not be responsible or
liable to any Person for any loss, damage, liability or claim of any kind
relating to injury or death to Persons or damage to Property caused by the
actions, inaction or negligence of Parent and/or its Affiliates and Parent and
each Borrower hereby indemnifies and holds the Creditors harmless from any such
loss, damage, liability or claim.

 

11.12       No Third Parties Benefited. This Agreement is made for the purpose
of defining and setting forth certain obligations, rights and duties of Parent,
the Borrowers and the Creditors in connection with the Loans, Letters of Credit
and Swing Line Advances, and is made for the sole benefit of Parent, the
Borrowers, the Creditors, and the Creditors’ successors and assigns, and, subject
to Section 6.1, successors to Borrowers by permitted merger. Except as
provided in Sections 11.8 and 11.10, no other Person shall have any rights
of any nature hereunder or by reason hereof.

 

11.13       Treatment of Certain Information;
Confidentiality. Each
of the Administrative Agent, the Lenders and the Issuing Lenders agrees to
maintain the confidentiality of the Information (as defined below), except that
Information may be disclosed

 

(a)           to its Affiliates and to its and its
Affiliates’ respective partners, directors, officers, employees, agents,
advisors and representatives (it being understood that the Persons to whom such
disclosure is made will be informed of the confidential nature of such
Information and instructed to keep such Information confidential),

 

(b)           to the extent requested by any regulatory
authority purporting to have jurisdiction over it (including any
self-regulatory authority, such as the National Association of Insurance
Commissioners),

 

(c)           to the extent required by applicable laws
or regulations or by any subpoena or similar legal process,

 

(d)           to any other party hereto,

 

(e)           in connection with the exercise of any
remedies hereunder or under any other Loan Document or any action or proceeding
relating to this Agreement or any other Loan Document or the enforcement of
rights hereunder or thereunder,

 

(f)            subject to an agreement containing
provisions substantially the same as those of this Section 11.13, to

 

(i)            any assignee of or Participant in, or any
prospective assignee of or Participant in, any of its rights or obligations
under this Agreement or

 

(ii)           any actual or prospective counterparty
(or its advisors) to any swap or derivative transaction relating to Parent, its
Subsidiaries and their respective obligations,

 

(g)           with the consent of Parent or the
Company; or

 

(h)           to the extent such Information

 

90

 

(i)            is or becomes publicly available other
than as a result of a breach of this Section 11.13 or

 

(ii)           becomes available to the Administrative
Agent, any Lender, any Issuing Lender or any of their respective Affiliates on
a nonconfidential basis from a source other than the Borrower.

 

For
purposes of this Section 11.13, “Information” means all information
received from Parent and its Subsidiaries relating to Parent, its Subsidiaries
or any of their respective businesses, other than any such information that is
available to the Administrative Agent, any Lender or the Issuing Lender on a
nonconfidential basis prior to disclosure by Parent and its Subsidiaries. Any
Person required to maintain the confidentiality of Information as provided in
this Section 11.13 shall be considered to have complied with its
obligation to do so if such Person has exercised the same degree of care to
maintain the confidentiality of such Information as such Person would accord to
its own confidential information.

 

11.14       Removal of a Lender. Parent and the Borrowers shall have the
right to remove a Lender as a party to this Agreement pursuant to this Section 11.14
in the event that such Lender:

 

(a)           requests compensation under Section 3.7
or Section 3.8 which has not been requested by all other Lenders, in each
case by written notice to the Administrative Agent and such Lender within 60
days following any such refusal or request; or

 

(b)           refuses to consent to certain proposed
changes, waivers, modifications, supplements, terminations, waivers or consents
with respect to this Agreement which have been approved by the Requisite
Lenders as provided in Section 11.2, provided that no Default or Event of
Default then exists;

 

(c)           is the subject of a Disqualification; or

 

(d)           is a Defaulting Lender.

 

If
Parent and the Borrowers are entitled to remove a Lender pursuant to this Section 11.14
either:

 

(i)            The Lender being removed shall within
five Business Days after such notice execute and deliver an Assignment
Agreement covering that Lender’s Applicable Percentages in favor of one or more
Eligible Assignees designated by Parent and the Borrowers and reasonably
acceptable to the Administrative Agent, subject to payment of a purchase price
by such Eligible Assignee equal to all principal and accrued interest, fees and
other amounts payable to such Lender under this Agreement through the date of
the Assignment Agreement; or

 

(ii)           Parent and the Borrowers may reduce
the applicable Commitment(s) pursuant to Section 2.7 (and, for this
purpose, the numerical requirements of such Section shall not apply) by an
amount equal to that Lender’s Applicable Percentage, pay and provide to such
Lender the amount required by clause (a) above and release such
Lender from its Applicable Percentage (subject, however, to the requirement
that all conditions set forth in Section 8.2 are met as of the date of
such reduction and the payment to the other Lenders of appropriate fees for the
assumption of any such  Lender’s
participation in all Letters of Credit and Swing Line Advances then
outstanding), in which case the applicable percentage Applicable Percentages of
the remaining Lenders shall be ratably increased (but

 

91

 

without
any increase in the Dollar amount of the Applicable Percentages of such
Lenders).

 

11.15       Further Assurances. Parent and the Restricted Subsidiaries
shall, at their expense and without expense to the Creditors, do, execute and
deliver such further acts and documents as any Creditor from time to time
reasonably requires for the assuring and confirming unto the Creditors of the
rights hereby created or intended now or hereafter so to be, or for carrying
out the intention or facilitating the performance of the terms of any Loan
Document.

 

11.16       Integration. This Agreement, together with the other
Loan Documents, comprises the complete and integrated agreement of the parties
on the subject matter hereof and supersedes all prior agreements, written or
oral, on the subject matter hereof. In the event of any conflict between the
provisions of this Agreement and those of any other Loan Document, the
provisions of this Agreement shall control and govern; provided that the
inclusion of supplemental rights or remedies in favor of the Creditors in any
other Loan Document shall not be deemed a conflict with this Agreement. Each
Loan Document was drafted with the joint participation of the respective
parties thereto and shall be construed neither against nor in favor of any
party, but rather in accordance with the fair meaning thereof.

 

11.17       Governing Law, Jurisdiction, Etc.

 

(a)           GOVERNING LAW. EXCEPT TO THE EXTENT OTHERWISE PROVIDED
THEREIN, EACH LOAN DOCUMENT SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE LOCAL LAWS OF CALIFORNIA, WITHOUT REGARD TO THE CHOICE OF
LAWS OR CONFLICTS OF LAWS PRINCIPLES THEREOF.

 

(b)           SUBMISSION TO JURISDICTION. Any legal action or proceeding with
respect to this Agreement or any other Loan Document may be brought in the
courts of the State of California sitting in Los Angeles or of the United
States for the central district of such state, and by execution and delivery of
this Agreement, the Borrowers, the Administrative Agent and each Lender
consents, for itself and in respect of its property, to the non-exclusive
jurisdiction of those courts. The Borrowers, the Administrative Agent and each
Lender irrevocably waives any objection, including any objection to the laying
of venue or based on the grounds of forum non conveniens, which it may now
or hereafter have to the bringing of any action or proceeding in such
jurisdiction in respect of any Loan Document or other document related thereto.
The Borrowers, the Administrative Agent and each Lender waives personal service
of any summons, complaint or other process, which may be made by any other
means permitted by the law of such state.

 

11.18       California Judicial Reference. If any action or proceeding is filed in
a court of the State of California by or against any party hereto in connection
with any of the transactions contemplated by this Agreement or any other Loan
Document, the court shall, and is hereby directed to, make a general reference
pursuant to California Code of Civil Procedure Section 638 to a referee
(who shall be a single active or retired judge) to hear and determine all of
the issues in such action or proceeding (whether of fact or of law) and to
report a statement of decision, provided that at the option of any party
to such proceeding, any such issues pertaining to a “provisional remedy” as
defined in California Code of Civil Procedure Section 1281.8 shall be
heard and determined by the court. The fees and expenses of such referee shall
be paid by the party that does not prevail in such decision.

 

92

 

11.19       Severability of Provisions. Any provision in any Loan Document that
is held to be inoperative, unenforceable or invalid as to any party or in any
jurisdiction shall, as to that party or jurisdiction, be inoperative,
unenforceable or invalid without affecting the remaining provisions or the
operation, enforceability or validity of that provision as to any other party
or in any other jurisdiction, and to this end the provisions of all Loan
Documents are declared to be severable.

 

11.20       Headings. Article and Section headings in this
Agreement and the other Loan Documents are included for convenience of
reference only and are not part of this Agreement or the other Loan
Documents for any other purpose.

 

11.21       Time of the Essence. Time is of the essence of the Loan
Documents.

 

11.22       Foreign Lenders and Participants. Each Lender that is not a “United
States person” within the meaning of Section 7701(a)(30) of the Code shall
deliver to Parent and the Administrative Agent, prior to receipt of any payment
subject to withholding under the Code (or upon accepting an assignment of an
interest herein), two duly signed completed copies of either IRS Form W-8BEN
or any successor thereto (relating to such Lender and entitling it to an
exemption from, or reduction of, withholding tax on all payments to be made to
such Lender by Parent and the Borrowers pursuant to this Agreement) or IRS Form W-8ECI
or any successor thereto (relating to all payments to be made to such Lender by
Parent and the Borrowers pursuant to this Agreement) or such other evidence
satisfactory to Parent, the Borrowers and the Administrative Agent that such
Lender is entitled to an exemption from, or reduction of, U.S. withholding tax,
including any exemption pursuant to Section 881(c) of the Code. Thereafter
and from time to time, each such Person shall (a) promptly submit to
Parent (with a copy to the Administrative Agent), such additional duly
completed and signed copies of one of such forms (or such successor forms as
shall be adopted from time to time by the relevant United States taxing
authorities) as may then be available under then current United States
laws and regulations to avoid, or such evidence as is satisfactory to Parent
and the Borrowers and the Administrative Agent of any available exemption from,
United States withholding taxes in respect of all payments to be made to such
Person by Parent and the Borrowers pursuant to this Agreement and (b) take
such steps as shall not be materially disadvantageous to it, in the reasonable
judgment of such Lender, and as may be reasonably necessary (including the
re-designation of its Eurodollar Lending Office, if any) to avoid any requirement
of applicable laws that Parent or the Borrowers make any deduction or
withholding for taxes from amounts payable to such Person.

 

11.23       Gaming Boards. The Creditors agree to cooperate with
all Gaming Boards in connection with the administration of their regulatory
jurisdiction over Parent and its Subsidiaries, including the provision of such
documents or other information as may be requested by any such Gaming
Board relating to Parent or any of its Subsidiaries or to the Loan Documents.

 

11.24       Nature of the Borrowers’ Obligations. The Company hereby agrees that it shall
be liable for all of the Obligations on a joint and several basis,
notwithstanding which of the Borrowers may have directly received the
proceeds of any particular Loan or Advance or the benefit of a particular
Letter of Credit. Notwithstanding anything to the contrary set forth herein,
the principal liability of each Borrower hereafter designated under Section 2.9
for Loans, Swing Line Advances and Letters of Credit shall be limited to Loans
and Letters of Credit made to that Borrower and Letters of Credit issued for
the account of that Borrower under the Aggregate Sublimit of that Borrower. Each
of the Borrowers acknowledges and agrees that, for purposes of the Loan
Documents, Parent and the Restricted Subsidiaries constitute a single
integrated financial enterprise and that each receives a benefit from the
availability of credit under this Agreement. Borrowers each waive all defenses
arising under the Laws of suretyship, to the extent such Laws are applicable,
in connection with their obligations under this Agreement. Without limiting

 

93

 

 

the
foregoing, each Borrower agrees to the Joint Borrower Provisions set forth in Exhibit I,
incorporated by this reference.

 

11.25                     Designated Senior Debt. Parent and each Borrower hereby
irrevocably designate the Obligations and this Agreement as “Designated Senior
Indebtedness” and “Senior Indebtedness” within the meanings given to those
terms in Section 1.1 of the Supplemental Indenture dated December 9,
1998 entered into with respect to the Existing Subordinated Debt among the
Company, Parent and IBJ Schroeder Bank & Trust Company, this Section constituting
a certificate of Parent and the Company issued to the Administrative Agent and
the Lenders to that effect.

 

11.26                     Gaming Regulations. Each party to this Agreement hereby
acknowledges that the consummation of the transactions contemplated by the Loan
Documents is subject to applicable Gaming Laws (and Parent and Borrower
represent and warrant that all requisite approvals necessary thereunder to
enter into the transactions contemplated hereby have been duly obtained except
as set forth in Schedule 4.3).

 

11.27                     Waiver of Jury Trial. EACH PARTY HERETO HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT
OF OR RELATING TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO
HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS BY,
AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 11.27.

 

11.28                     USA PATRIOT Act Notice. Each Lender that is subject to the Act
(as hereinafter defined) and the Administrative Agent (for itself and not on
behalf of any Lender) hereby notify the Loan Parties that pursuant to the
requirements of the USA PATRIOT Act (Title III of Pub. L. 107-56 (signed into
law October 26, 2001)) (the “Act”), it is required to obtain, verify and
record information that identifies the Loan Parties, which information includes
the name and address of the Loan Parties and other information that will allow
such Lender or the Administrative Agent, as applicable, to identify the Loan
Parties in accordance with the Act.

 

11.29                     Payments Set Aside. To the extent that any payment by or on
behalf of a Borrower is made to the Administrative Agent, any Issuing Lender or
any Lender, or the Administrative Agent, any Issuing Lender or any Lender
exercises its right of setoff, and such payment or the proceeds of such setoff
or any part thereof is subsequently invalidated, declared to be fraudulent
or preferential, set aside or required (including pursuant to any settlement
entered into by the Administrative Agent, any Issuing Lender or such Lender in
its discretion) to be repaid to a trustee, receiver or any other party, in
connection with any proceeding under any Debtor Relief Law or otherwise, then

 

(a)                                  to the extent of such recovery, the
obligation or part thereof originally intended to be satisfied shall be
revived and continued in full force and effect as if such payment had not been
made or such setoff had not occurred, and

 

(b)                                 each Lender and the relevant Issuing
Lender severally agrees to pay to the Administrative Agent upon demand its
applicable share (without duplication) of any amount so

 

94

 

recovered
from or repaid by the Administrative Agent, plus interest thereon from the date
of such demand to the date such payment is made at a rate per annum equal to
the Federal Funds Rate from time to time in effect.

 

The
obligations of the Lenders and the Issuing Lenders under clause (b) of the
preceding sentence shall survive the payment in full of the Obligations and the
termination of this Agreement.

 

11.30                     Purported Oral Amendments. PARENT AND EACH BORROWER EXPRESSLY
ACKNOWLEDGE THAT THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS MAY ONLY BE
AMENDED OR MODIFIED, OR THE PROVISIONS HEREOF OR THEREOF WAIVED OR
SUPPLEMENTED, BY AN INSTRUMENT IN WRITING THAT COMPLIES WITH SECTION 11.2.
PARENT AND EACH BORROWER AGREES THAT IT WILL NOT RELY ON ANY COURSE OF DEALING,
COURSE OF PERFORMANCE, OR ORAL OR WRITTEN STATEMENTS BY ANY REPRESENTATIVE OF
ANY OF THE CREDITORS THAT DOES NOT COMPLY WITH SECTION 11.2 TO EFFECT AN
AMENDMENT, MODIFICATION, WAIVER OR SUPPLEMENT TO THIS AGREEMENT OR THE OTHER
LOAN DOCUMENTS.

 

11.31                     No Advisory or Fiduciary Responsibility. In connection with all aspects of each
transaction contemplated hereby, the Borrowers acknowledge and agree, and
acknowledge their Affiliates’ understanding, that: (i) the credit
facilities provided for hereunder and any related arranging or other services
in connection therewith (including in connection with any amendment, waiver or
other modification hereof or of any other Loan Document) are an arm’s-length
commercial transaction between the Borrowers and their respective Affiliates,
on the one hand, and the Administrative Agent and the Lead Arrangers, on the
other hand, and the Borrowers are capable of evaluating and understanding and
understand and accept the terms, risks and conditions of the transactions
contemplated hereby and by the other Loan Documents (including any amendment,
waiver or other modification hereof or thereof); (ii) in connection with
the process leading to such transaction, the Administrative Agent and each Lead
Arranger each is and has been acting solely as a principal and is not the
financial advisor, agent or fiduciary, for any of the Borrowers or any of their
respective Affiliates, stockholders, creditors or employees or any other
Person; (iii) neither the Administrative Agent nor any Lead Arranger has
assumed or will assume an advisory, agency or fiduciary responsibility in favor
of any Borrower with respect to any of the transactions contemplated hereby or
the process leading thereto, including with respect to any amendment, waiver or
other modification hereof or of any other Loan Document (irrespective of
whether the Administrative Agent or any Lead Arranger has advised or is
currently advising any Borrower or any of Affiliate of any Borrower on other
matters) and neither the Administrative Agent nor any Lead Arranger has any
obligation to any of the Borrowers or any of their respective Affiliates with
respect to the transactions contemplated hereby except those obligations
expressly set forth herein and in the other Loan Documents; (iv) the
Administrative Agent and the Lead Arrangers and their respective Affiliates may be
engaged in a broad range of transactions that involve interests that differ
from those of the Borrowers and their respective Affiliates, and neither the
Administrative Agent nor any Lead Arranger has any obligation to disclose any
of such interests by virtue of any advisory, agency or fiduciary relationship;
and (v) the Administrative Agent and the Lead Arrangers have not provided
and will not provide any legal, accounting, regulatory or tax advice with
respect to any of the transactions contemplated hereby (including any
amendment, waiver or other modification hereof or of any other Loan Document)
and each Borrower has consulted its own legal, accounting, regulatory and tax
advisors to the extent it has deemed appropriate. Each Borrower hereby waives
and releases, to the fullest extent permitted by law, any claims that it may have
against the Administrative Agent and the Lead Arrangers with respect to any
breach or alleged breach of agency or fiduciary duty.

 

95

 

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

 

	
   

  	
  HARRAH’S ENTERTAINMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Jonathan S. Halkyard, Senior Vice President
  and

  Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  HARRAH’S OPERATING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Jonathan S. Halkyard, Senior Vice President
  and

  Treasurer

  

 

 

	
   

  	
  BANK OF AMERICA, N.A., as Administrative
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BANK OF AMERICA, N.A., as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  BANK OF HAWAII

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  THE GOVERNOR AND COMPANY OF THE BANK

  OF IRELAND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  THE BANK OF NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  THE BANK OF NOVA SCOTIA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  SCOTIABANC INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  BANK OF SCOTLAND

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  BANK OF TAIWAN, NEW YORK AGENCY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  BARCLAYS BANK, PLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  BUSINESS BANK OF NEVADA

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  CALYON NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  CHANG HWA COMMERCIAL BANK, LTD.,

  NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  CITICORP USA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  COMERICA WEST INCORPORATED

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  COMMERZBANK AG, NEW YORK AND GRAND

  CAYMAN BRANCHES

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  DEUTSCHE BANK TRUST COMPANY AMERICAS

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  E. SUN COMMERCIAL BANK, LTD., LOS

  ANGELES BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  ERSTE BANK NEW YORK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  FIRST TENNESSEE BANK NATIONAL

  ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  James H.
  Moore, Jr.

  	
   

  
	
   

  	
  Title:

  	
  Senior Vice
  President

  	
   

  

 

 

	
   

  	
  CAPITAL ONE, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  HSBC BANK USA, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

 

	
   

  	
  HUA NAN COMMERCIAL BANK, LTD.

  NEW YORK AGENCY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  BAYERISCHE HYPO-UND VEREINSBANK AG,

  NEW YORK BRANCH

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  JPMORGAN CHASE BANK, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  MIZUHO CORPORATE BANK, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  THE PEOPLES BANK, BILOXI, MISSISSIPPI

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  THE ROYAL BANK OF SCOTLAND PLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  SOVEREIGN BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  SUMITOMO MITSUI BANKING CORPORATION,

  LOS ANGELES OFFICE

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  SUNTRUST BANK

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  TAIPEI FUBON COMMERCIAL BANK, NEW YORK

  AGENCY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  UNION BANK OF CALIFORNIA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  UNION BANK OF CALIFORNIA, N.A.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  U.S. BANK NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  WACHOVIA BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

	
   

  	
  WELLS FARGO BANK, NATIONAL ASSOCIATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
  Clark A.
  Wood

  	
   

  
	
   

  	
  Title:

  	
  Vice
  President

  	
   

  

 

 

	
   

  	
  WHITNEY NATIONAL BANK

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:Exhibit 10.1

 

USANA HEALTH SCIENCES, INC.

 

EMPLOYEE STOCK OPTION AGREEMENT

 

Optionee:

Date of Grant:

Number of Covered Shares:

Exercise Price Per Share:

Expiration Date:

 

This Stock Option Agreement (“Agreement”) is entered into as of the    
day of             ,
between USANA HEALTH SCIENCES, INC., a Utah corporation (the “Company”), and                      
(“Optionee”).

 

WHEREAS, the Company has adopted the 2006 USANA Health Sciences, Inc. Equity
Incentive Award Plan (the “Plan”) and has approved the granting to certain
employees of the Company of stock options to purchase common stock of the
Company, par value $.001 per share (“Common Stock”); and

 

WHEREAS, Optionee is employed by the Company in a key executive
capacity, or is engaged by the Company as an officer and/or employee, and the
Company desires that Optionee remain in such employ and desires to secure or
increase Optionee’s stock ownership of the Company in order to increase
Optionee’s incentive and personal interest in the welfare of the Company.

 

NOW, THEREFORE, in consideration of the premises, covenants and
agreements hereinafter set forth, and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the parties
hereto have agreed and do hereby agree as follows:

 

1.             Grant of Options. On the
terms and conditions set forth in this Agreement, including but not limited to
the substitution provisions of Section 27 below, the Company hereby grants to
Optionee nonqualified stock options (the “Options”) to purchase all or any part
of an aggregate amount of                     
(              )
shares of the Common Stock of the Company at a purchase price of $        
per share.

 

2.             Term of Options; Vesting. Except
as otherwise provided in Sections 5 and 11 below, the Options shall be fully
vested on the Date of Grant and shall remain exercisable until         
(     ) years after the Date of Grant (the “effective
term”), at which time the Options shall terminate and not be exercisable
thereafter.

 

3.             Exercise of Options. The
Options or any portion thereof may be exercised by Optionee paying the purchase
price of any shares with respect to which the Options are being exercised by
cash, certified check or cashier’s check (but no personal checks unless
otherwise approved by the Committee). Except as otherwise provided by the
Committee before the Option is exercised, (i) all or a portion of the Exercise
Price may be paid by Optionee by delivery of shares of Common Stock already
owned by Optionee for at least six (6) months and acceptable to the Committee
having an aggregate Fair Market Value (as of the date of exercise) that is
equal to the amount of cash that would otherwise be required; (ii) Optionee may
pay the Exercise Price by authorizing a third party to sell shares of Stock (or
a sufficient portion of the shares) acquired upon exercise of the Option and
remit to the Company a sufficient portion of the sale proceeds to pay the
entire Exercise Price and any tax withholding resulting

 

 

from
such exercise; or (iii) Optionee may pay the Exercise Price by a reduction in
the amount of any Company liability to the Optionee. In each case Optionee’s
payment shall be delivered with a written notice of exercise which shall:

 

a.             State the number of
shares being exercised, the name, address and social security number of each
person for whom the stock certificate or certificates for such shares of the
Common Stock are to be registered;

 

b.             Contain any
representations and agreements as to Optionee’s investment intent with respect
to the shares exercised as may be satisfactory to the Company’s counsel; and

 

c.             Be signed by the
person or persons entitled to exercise the Options and, if the Options are
being exercised by any person or persons other than Optionee, be accompanied by
proof satisfactory to counsel for the Company of the right of such person or
persons to exercise the Options.

 

In addition, unless the shares to be acquired by Optionee have been
registered under the Securities Act of 1933, as amended, upon and effective as
of the date of exercise of the Option under this Agreement, Optionee agrees,
represents and warrants that Optionee (i) is acquiring the shares of Common
Stock for investment with no present intention of distributing or selling such
shares or any interest therein except as permitted under this Agreement; (ii)
is not only an employee but also a director or executive officer of the Company
experienced in making risky investments and has the capacity to protect his
interests in connection with making his decision to exercise the Option; (iii)
is well-informed or capable of asking questions of the Company’s officials to
make himself well-informed concerning the nature of his investment decision to
exercise the Option and of the true financial status of the Company; and (iv)
has obtained, analyzed and retained (or elected not to retain) copies of the
Company’s current financial statements. Further, as a condition to the exercise
of the Options, the Company may require the person exercising the Options to
make any representation and warranty to the Company that may be required by any
applicable law or regulation.

 

4.             Stock Settlement
Feature. Notwithstanding anything contained herein to the contrary, the
Committee in its sole discretion may, at any time prior to an exercise of the
Options and with written notice to the Optionee, elect to settle an exercise of
the Options by the Optionee in whole or in part through the stock settlement
feature described in this Section. To the extent that the Committee elects the
stock settlement feature:

 

a.             The provisions of
Section 3 relating to the payment of the purchase price shall not be
applicable; and

 

b.             In lieu of
delivering the shares of Common Stock for which the Options are being
exercised, the Company shall deliver the number of shares of Common Stock to
the Optionee, subject to the provisions of Section 10 hereof, equal to the
result of dividing the Cash Amount (as defined below) by the Fair Market Value
of one share of Common Stock on the date of exercise of the Options. The “Cash
Amount” is equal to the result of multiplying (A) the number of shares of
Common Stock for which the Options are being exercised that are settled by the
stock settlement feature by (B) the difference between (x) the Fair Market
Value of one share of Common Stock on the date of exercise of the Options and
(y) the Exercise Price. Any shares of Common Stock delivered above shall be
subject to the restrictions of Section 9 hereof. Notwithstanding the foregoing,
this Section shall not be effective until the date that Financial Standards
Board Statement No. 123 (revised 2004) is applicable to the financial statements
of the Company.

 

2

 

5.             Termination of Employment or
Death.

 

a.             In the event
Optionee’s employment shall be involuntarily terminated by the Company without
cause, the Optionee may exercise the Options, provided such exercise occurs
both within the remaining effective term of the Options and ninety (90) days
after the date of termination by the Company.

 

b.             In the event
Optionee dies while employed by the Company or dies within ninety (90) days
after termination of employment with the Company (whether such termination
preceding death was by reason of Retirement or Disability, involuntary termination
without cause, or voluntary termination (but not termination For Cause)), the
Options granted hereunder to Optionee shall be exercisable within three (3)
years after the date of Optionee’s death. The legal representative, if any, of
Optionee’s estate, or otherwise the appropriate legatees or distributees of
Optionee’s estate, may exercise the Option on behalf of Optionee.

 

c.             In the event
Optionee’s employment shall terminate on account of Retirement or Disability,
the Options held by Optionee may be exercised by Optionee, provided such
exercise occurs within the remaining effective term of the Options.

 

d.             In the event
Optionee shall have an Involuntary Termination of Employment “For Cause” (as
defined in Section 12(d)(ii) of the Plan), no exercise period shall exist and
Optionee shall forfeit the Options as of the date of termination.

 

e.             For purposes of
this Agreement, termination of employment shall be considered to occur when an
employee is no longer an employee of the Company or any Subsidiary. Whether an
authorized leave of absence or absence on military or government service shall
constitute termination of employment for purposes of this Agreement shall be
determined by the Committee. Retirement shall be considered to mean retirement
as defined in the Plan.

 

6.             Transfer of Options. Unless
the Company, upon advice of its securities counsel, directs otherwise, the
Options may not be assigned or transferred in any manner except upon the death
of Optionee by will or by the laws of descent and distribution. During the
lifetime of Optionee, the Options shall be exercisable only by Optionee.

 

7.             Reservation of Shares. The
Company, during the term hereof, will at all times reserve and keep available,
and will seek or obtain from any regulatory body having jurisdiction any
requisite authority in order to issue and sell such number of shares of its
Common Stock as shall be sufficient to satisfy the requirements hereof. The
inability of the Company to obtain from any regulatory body having jurisdiction
the authority deemed by the Company’s counsel to be necessary to the lawful
issuance and sale of any shares of stock hereunder shall relieve the Company of
any liability in respect of the nonissuance or sale of such stock as to which
such requisite authority shall not have been obtained.

 

8.             Application of Section 16(b).
The parties acknowledge that, if the Company has a class of securities required
to be registered pursuant to the Securities Exchange Act of 1934 (the “Exchange
Act”), and if Optionee is an officer, director or ten percent (10%) shareholder
of the Company, the grant to Optionee of Options hereunder, or the Optionee’s
sale of shares underlying the Options, may, unless the Plan is qualified under
Rule 16b-3 of the SEC, subject Optionee to liability under the insider trading
prohibitions of Section 16(b) of the Exchange Act, if Optionee purchases or
sells Common Stock of the Company within six months before or after the grant
of the Options, or within six months before or after the sale of the shares
underlying the Options. This acknowledgment is for 

 

3

 

informational
purposes only and is not to be construed as increasing, limiting or describing
the rights and obligations of the parties hereunder.

 

9.             Restriction on Option Exercise.
Notwithstanding any contrary provision hereof, the Options may not be exercised
by Optionee unless the shares to be acquired by Optionee have been registered
under the Securities Act of 1933 (the “Act”), and any other applicable
securities laws of any other state, or the Company receives an opinion of
counsel (which may be counsel for the Company) reasonably acceptable to the
Company stating that the exercise of the Options and the issuance of shares
pursuant to the exercise is registered or exempt from such registration
requirements. Optionee shall represent that unless and until the shares have
been registered under the Act and applicable state securities laws:  (1) Optionee is acquiring the shares for
investment purposes only and without the intent of making any sale or
disposition thereof; (2) Optionee has been advised and understands that
the shares have not been registered for sale pursuant to federal and state
securities laws and are “restricted securities” under such laws; and
(3) Optionee acknowledges that the shares will be subject to stop transfer
instructions and bear the following legend:

 

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNDER ANY OTHER STATE
SECURITIES LAWS AND MAY NOT BE OFFERED, SOLD OR TRANSFERRED IN THE ABSENCE OF
REGISTRATION OR THE AVAILABILITY OF AN EXEMPTION FROM SUCH REGISTRATION. NO
OFFER, SALE OR TRANSFER MAY TAKE PLACE WITHOUT PRIOR WRITTEN APPROVAL OF THE
COMPANY BEING AFFIXED HERETO. IN THE ABSENCE OF AN EFFECTIVE REGISTRATION
STATEMENT, SUCH APPROVAL SHALL BE GRANTED ONLY IF THE COMPANY HAS RECEIVED AN
OPINION OF SHAREHOLDER’S COUNSEL AT SHAREHOLDER’S EXPENSE SATISFACTORY TO THE
COMPANY TO THE EFFECT THAT THIS CERTIFICATE MAY BE LAWFULLY TRANSFERRED
PURSUANT TO AN EXEMPTION FROM REGISTRATION.

 

10.           Withholding of Taxes. The
Options may not be exercised unless Optionee has paid or has made provision
satisfactory to the Company for payment of, federal, state and local income
taxes, or any other taxes (other than stock transfer taxes) which the Company
may be obligated to collect as a result of the issue or transfer of Common
Stock upon such exercise of the Options. In its sole discretion, and at the
request of Optionee, the Company may permit Optionee (other than an Optionee
who would be subject to Section 16(b) of the Exchange Act) to satisfy the
obligation imposed by this Section, in whole or in part, by instructing the
Company to withhold up to that number of shares otherwise issuable to Optionee
with a fair market value equal to the amount of tax to be withheld.

 

11.           Mergers, Reorganizations, and
Certain Other Changes. In the event of the Company’s liquidation,
reorganization, separation, merger or consolidation into, or acquisition of
property or stock by another corporation, or sale of substantially all assets
to another corporation, the rights of Optionee with respect to the Options
granted hereunder shall be governed by the Committee, as provided in the Plan.

 

12.           Antidilution. The aggregate
number of shares of Common Stock available for issuance under the Options, and
the price per share, shall all be proportionately adjusted for any increase or
decrease in the number of issued shares of Common Stock subsequent to the date
of this Agreement

 

4

 

resulting
from a recapitalization, reorganization, merger, consolidation or similar
transaction as provided in the Plan.

 

13.           No Rights as a Stockholder. Optionee
or a permitted transferee of the Options shall have no rights as a stockholder
with respect to any shares covered by the Options until the date as of which
stock is issued following exercise of such Options. Except as provided in this
Agreement, no adjustment shall be made for dividends (ordinary or
extraordinary, whether in cash, securities or other property) or any other
distributions for which the record date is prior to the date as of which such
stock is issued.

 

14.           No Employment Rights. This
Agreement is not an employment agreement or contract and does not grant any
employment rights to Optionee.

 

15.           Other Provisions. The Company
may, as a condition precedent to the exercise of the Options, require Optionee
(including, in the event of Optionee’s death, his legal representatives,
legatees or distributees) to enter into such agreements or to make such
representations as may be required to make lawful the exercise of the Options
and the ultimate disposition of the shares acquired by such exercise.

 

16.           Notices. Any notice which
either of the parties hereto is required or permitted to give to the other must
be in writing and may be given by personal delivery, electronic or facsimile
transmission,  or by mailing the same by
registered or certified mail, return receipt requested, to the party to which
or to whom the notice is directed, at the address each party designates in
writing. Any notice mailed to such address shall be effective when deposited in
the mail, duly addressed and postage prepaid, notwithstanding failure by the
addressee thereof to receive the mailed notice.

 

17.           Governing Law. All
transactions contemplated hereunder and all rights of the parties hereto shall
be governed as to validity, construction, enforcement and in all other respects
by the laws and decisions of the State of Utah.

 

18.           Titles. The titles of the
sections of this Agreement are inserted only as a matter of convenience and for
reference, and in no way define, limit or describe the scope of this Agreement
or the intent of any provisions hereof.

 

19.           Amendment. This Agreement
shall not be modified or amended except by written agreement signed by all of
the parties hereto.

 

20.           Attorney’s Fees and Costs of
Enforcement. If any party to this Agreement shall incur any costs resulting
from enforcement of this Agreement, the defaulting party shall be liable to the
prevailing party for such costs. Costs, as used herein, shall include costs of
enforcement, interpretation, or collection, including without limitation,
reasonable attorney’s fees, court costs, collection charges, travel and other
related or similar expenses.

 

21.           Severability of Provisions. Any
provision of this Agreement that is invalid, prohibited, or unenforceable in
any jurisdiction, shall not invalidate the remainder of the provision or the remaining
provisions of the Agreement.

 

22.           Entire Agreement. Subject to
the Plan, a copy of which in its present form is available from the Secretary
of the Company, this Agreement contains all of the representations,
declarations and statements from either party to the other and expresses the
entire understanding between

 

5

 

the
parties with respect to the transactions provided for herein. All prior
memoranda, letters, statements and agreements concerning this subject matter,
if any, are merged in and replaced by this Agreement.

 

23.           Pronouns, Number and Gender. Wherever
necessary to implement the intent of the parties hereto, references herein to
the singular shall be interpreted as the plural, and vice versa, and the
feminine, masculine or neuter gender shall be treated as one of the other
genders.

 

24.           Binding Effect. This Agreement
shall be binding upon and shall inure to the benefit of the parties hereto and
their respective legal representatives, successors and assigns.

 

25.           Defined Terms. The capitalized
terms contained in this Agreement but not otherwise defined herein shall have
the same meanings given to them in the Plan.

 

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

 

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

 

	
  COMPANY:

  	
  USANA HEALTH SCIENCES, INC.,

  
	
   

  	
  a Utah corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

	
  OPTIONEE:

  	
   

  	
   

  
	
   

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  (Printed Name)

  
	
   

  	
   

  

 

6

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00102-of-00352.parquet"}]]