Document:

EXHIBIT 10.1

 

NOBLE AFFILIATES, INC.

FORM OF

CHANGE OF CONTROL AGREEMENT

 

This Change of
Control Agreement (“Agreement”) is made and effective as of the ____ day of ________,
____, by and between Noble Energy, Inc., formerly known as Noble Affiliates,
Inc., a Delaware corporation (“Employer”), and [Name] (“Executive”).

 

RECITALS

 

The Board of
Directors of Employer (the “Board”) has determined that it is in the best
interests of Employer to assure that Employer will have the continued
dedication of Executive, notwithstanding the possibility, threat or occurrence
of a Change of Control (as defined below). 
The Board believes it is imperative to diminish the inevitable
distraction of Executive by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control, to encourage Executive’s
full attention and dedication to Employer currently and in the event of any
threatened or pending Change of Control, and to provide Executive with
compensation and benefit arrangements upon a Termination Event (as defined
below) that ensure that such compensation and benefits are competitive with
other corporations.

 

AGREEMENT

 

Now,
therefore, in consideration of Executive’s continued employment by Employer, as
well as the promises, covenants and obligations contained herein, Employer and
Executive agree as follows:

 

1.  PAYMENT OF SEVERANCE AMOUNT.  Upon the occurrence of a Termination Event
(as defined in paragraph 2), Employer shall:

 

 

(a)  pay Executive all salary, unreimbursed
expenses incurred by Executive in the performance of his duties for Employer
and other compensation and benefits that are accrued but unpaid through the
date of the termination constituting such Termination Event (the “Termination
Date”), payable as a lump sum cash payment within 30 days following the
Termination Date;

 

(b)  pay Executive an amount equal to Executive’s
Annual Cash Compensation (as defined in paragraph 2) multiplied by a factor of
[Multiplier], payable as a lump sum cash payment within 30 days following the
Termination Date;

 

(c)  pay Executive an amount equal to Executive’s
pro-rata (measured as (i) the number of days expired, as of Termination Date,
in the then-current calendar year, divided by (ii) 365) target bonus for the
then-current year;

 

(d)  provide Executive with life, disability,
medical and dental insurance at the level provided at either the date of the
occurrence of a Change of Control or the Termination Date, as Executive shall
in his sole discretion elect by providing written notice to Employer, for
[12*Multiplier] months following the Termination Date or such shorter period
until Executive shall obtain substantially equivalent insurance coverage from a
subsequent employer, if any, in the same manner as if Executive’s employment
had not been terminated until the end of such period.  Executive shall immediately notify Employer
upon obtaining any insurance from a subsequent employer and shall provide all
information required by Employer regarding such insurance to enable Employer to
make a determination of whether such insurance is substantially equivalent;

 

(e)  notwithstanding Executive’s termination of
employment, preserve Executive’s rights to purchase the shares of Employer’s
capital stock that are subject to then-outstanding options that have been
granted to Executive by Employer (or pursuant to a stock option plan of
Employer), so that all

 

2

 

such options remain or become
exercisable in accordance with their terms as if Executive’s employment had not
terminated; and

 

(f)  upon receiving a detailed invoice for same,
reimburse, up to a maximum cumulative amount of 15,000 Dollars, Executive for
the reasonable fees of no more than one out-placement (or similar) service
provider engaged by Executive to assist in finding employment opportunities for
Executive during the twelve-month period following a Termination Date.

 

2.     DEFINITIONS.

 

(a)  A “TERMINATION EVENT” shall
be deemed to have occurred if at any time within 24 months after a Change of Control,
Employer or any successor thereto shall terminate Executive’s employment for
any reason other than for (A) Cause, as defined below, (B) incapacity due to
physical or mental illness or (C) death. 
For this purpose, Executive’s employment shall be deemed to have been
terminated upon the actual termination of his employment or upon the occurrence
of a Constructive Termination (as defined below).

 

(b)  A “CHANGE OF CONTROL” shall be deemed to have
occurred if:

 

(i)    individuals who, as of the
date hereof, constitute the Board (the “Incumbent Board”) cease for any reason
to constitute at least fifty-one percent (51%) of the Board, provided that any person
becoming a director subsequent to the date hereof whose election, or nomination
for election by Employer’s stockholders was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board shall be, for
purposes of this Agreement, considered as though such person were a member of
the Incumbent Board;

 

(ii)   the stockholders of Employer
shall approve a reorganization, merger or consolidation, in each case, with
respect to which persons who were the stockholders of Employer immediately prior
to such reorganization, merger or consolidation do not, 

 

3

 

immediately
thereafter, own outstanding voting securities representing at least fifty-one
percent (51%) of the combined voting power entitled to vote generally in the
election of directors (“Voting Securities”) of the reorganized, merged or
consolidated company;

 

(iii)  the stockholders of
Employer shall approve a liquidation or dissolution of Employer or a sale of
all or substantially all of the stock or assets of Employer; or

 

(iv)  any “person,” as that term
is defined in Section 3(a)(9) of the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) (other than Employer, any of its subsidiaries, any
employee benefit plan of Employer or any of its subsidiaries, or any entity
organized, appointed or established by Employer for or pursuant to the terms of
such a plan), together with all “affiliates” and “associates” (as such terms
are defined in Rule 12b-2 under the Exchange Act) of such person (as well as
any “Person” or “group” as those terms are used in Sections 13(d) and 14(d) of
the Exchange Act), shall become the “beneficial owner” or “beneficial owners”
(as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or
indirectly, of securities of Employer representing in the aggregate twenty-five
percent (25%) or more of either (A) the then outstanding shares of common
stock, par value $3.33-1/3 per share, of Employer (“Common Stock”) or (B) the
Voting Securities of Employer, in either such case other than solely as a
result of acquisitions of such securities directly from Employer.  Without limiting the foregoing, a person who,
directly or indirectly, through any contract, arrangement, understanding,
relationship or otherwise has or shares the power to vote, or to direct the
voting of, or to dispose, or to direct the disposition of, Common Stock or other
Voting Securities of Employer shall be deemed the beneficial

 

4

 

owner of such
Common Stock or Voting Securities.

 

Notwithstanding the foregoing, a “Change of Control” of Employer shall
not be deemed to have occurred for purposes of subparagraph (iv) of this
paragraph 2(b) solely as the result of an acquisition of securities by Employer
which, by reducing the number of shares of Common Stock or other Voting
Securities of Employer outstanding, increases (i) the proportionate number of
shares of Common Stock beneficially owned by any person to twenty-five percent (25%)
or more of the shares of Common Stock then outstanding or (ii) the
proportionate voting power represented by the Voting Securities of Employer
beneficially owned by any person to twenty-five percent (25%) or more of the
combined voting power of all then outstanding Voting Securities; provided,
however, that if any person referred to in clause (i) or (ii) of this sentence
shall thereafter become the beneficial owner of any additional shares of Common
Stock or other Voting Securities of Employer (other than a result of a stock
split, stock dividend or similar transaction), then a Change of Control of Employer
shall be deemed to have occurred for purposes of subparagraph (iv) of this
paragraph 2(b).

 

(c)  “ANNUAL CASH COMPENSATION” shall, as
determined on the Termination Date, be equal to the sum of (i) plus (ii), where
“(i)” equals Executive’s annualized salary in effect on the date of the
earliest Change of Control to occur during the 18-month period prior to the
Termination Date, and “(ii)” equals the greater of (A) Executive’s annual
target bonus for the then-current bonus period and (B) the average annual bonus
paid or payable by Employer to Executive for the three-year period (or for the
period of Executive’s employment, if Executive has not been employed for all of
such three-year period) immediately preceding the date of the Change of
Control.

 

(d)  For purposes of this Agreement, “CAUSE” shall
mean (i) the willful and continued failure by Executive to perform his duties
as [Position] of Employer or any of its subsidiaries or his continued failure
to perform duties reasonably requested or reasonably prescribed by the Board
(other than as a result of Executive’s death or disability), (ii) the engaging
by Executive in conduct that is materially monetarily injurious to Employer or

 

5

 

any of its subsidiaries, (iii)
gross negligence or willful misconduct by Executive in the performance of his
duties that results in, or causes, material monetary harm to Employer or any of
its subsidiaries, or (iv) Executive’s commission of a felony or other civil or
criminal offense involving moral turpitude. 
In the case of (i), (ii) and (iii) above, a finding of Cause for
termination shall be made only after reasonable notice to Executive and an
opportunity for Executive, together with counsel, to be heard before the Board.  A determination of Cause by the Board shall
be effective only if agreed upon by a majority of the directors.

 

(e)  A “CONSTRUCTIVE TERMINATION” of Executive’s
employment with Employer shall be deemed to have occurred if Employer:

 

(i)    demotes Executive to a lesser position, in
title or responsibility, as compared to the highest position held by him with
Employer at the earlier of the occurrence of a Change of Control or the date on
which a tentative agreement is reached by Employer, or a public announcement is
made, regarding a proposed Change of Control that ultimately occurs;

 

(ii)   decreases Executive’s total annual
compensation (i.e., the sum of his annual salary, his target bonus under
Employer’s annual incentive bonus plan or similar plan in effect at the
applicable time and the value of other employment benefits provided to
Executive by Employer) below the level in effect at the earlier of the
occurrence of a Change of Control or the date on which a tentative agreement is
reached by Employer, or a public announcement is made, regarding a proposed
Change of Control that ultimately occurs; provided, however, that a decrease in
total annual compensation that results solely from an amendment or termination
of any employee or group or other executive benefit plan, which amendment or
termination is applicable to all executives of Employer, shall not constitute a
Constructive Termination; or

 

6

 

(iii)  requires or requests Executive to relocate to
a principal office more than 50 miles from the principal office at which
Executive is employed immediately prior to a Change of Control; provided,
however, that such a requirement or request for a relocation shall constitute a
Constructive Termination only if made in connection with, and within 12 months
after consummation of, the event or transaction that constitutes (or the
approval of which constitutes) the Change of Control, and such 12-month period
shall apply, for purposes of determining whether an event specified in this
clause (iii) constitutes a Termination Event, in lieu of the 24-month period
specified in paragraph 2(a).  For
purposes of this clause (iii), it shall be presumed (and Employer shall have
the burden of proof to overcome such presumption) that a requirement or request
for a relocation is “in connection with” such an event or transaction if it is
made within the 12-month period specified in this clause (iii).

 

3.  GROSS UP PAYMENT.  In the event that (i) the Executive becomes
entitled to the payment and benefits provided under Section 1 of this Agreement
(the “Change of Control Payment”) and any of the Change of Control Payment will
be subject to the tax (the “Excise Tax”) imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the “Code”), or any successor
provision, or (ii) any payments or benefits received or to be received by the
Executive pursuant to the terms of any other plan, arrangement or agreement
(the “Benefit Payments”) will be subject to the Excise Tax, the Employer shall
pay to the Executive an additional amount (the “Gross-Up Payment”) such that
the net amount retained by the Executive, after deduction of any Excise Tax on
the Change of Control Payment and the Benefit Payments, and any federal, state
and local income tax and Excise Tax upon the payment provided for by this
Section 3, shall be equal to the Change of Control Payment and the Benefit
Payments; provided, however, that in determining the amount of the Gross-Up
Payment, any Excise Tax on the Change of Control Payment and the Benefit
Payments shall be determined using a rate no higher than twenty percent (20%).

 

For purposes
of determining whether any of the Change of Control Payment or the Benefit
Payments will be subject to the Excise Tax and the amount of such Excise Tax:

 

7

 

(i)    any payments or benefits
received or to be received by the Executive in connection with a change in
control of the Employer or the Executive’s termination of employment (whether
pursuant to the terms of this Agreement or any other plan, arrangement or agreement
with the Employer, any person whose actions result in change in control or any
person affiliated with the Employer or such persons) shall be treated as “parachute
payments” within the meaning of Section 280G(b)(2) of the Code, and all “excess
parachute payments” within the meaning of Section 280G(b)(1) shall be treated as
subject to the Excise Tax, except to the extent that, in the opinion of tax
counsel selected by the Board of Directors of the Employer, such payments or
benefits (in whole or in part) do not constitute parachute payments, or such
excess payments (in whole or in part) represent reasonable compensation for
services actually rendered within the meaning of Section 280G(b)(4) of the
Code;

 

(ii)   the amount of the Change of
Control Payment and the Benefit Payments that shall be treated as subject to
the Excise Tax shall be equal to the lesser of (A) the total amount of the
Change of Control Payment and the Benefits Payments or (B) the amount of excess
parachute payments within the meaning of Sections 280G(b)(1) and (4) (after
applying clause (i), above); and

 

(iii)  the value of any non-cash
benefits or any deferred payment or benefit shall be determined by tax counsel,
selected by the Board of Directors of the Employer, in accordance with the principles
of Sections 280G(d)(3) and (4) of the Code.

 

For purposes
of determining the amount of the Gross-Up Payment, the Executive shall be
deemed to pay federal income taxes at the highest marginal rate of federal
income taxation in the calendar year in which the Gross-Up

 

8

 

Payment is to be made and state
and local income taxes at the highest marginal rates of taxation in the state
and locality of the Executive’s residence on the date of termination, net of
the maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes. 
In the event that the Excise Tax is subsequently determined to be less
than the amount taken into account hereunder at the time of termination of the
Executive’s employment, the Executive shall repay to the Employer at that time
that amount of such reduction in Excise Tax as is finally determined to be the
portion of the Gross-Up Payment attributable to such reduction plus interest on
the amount of such repayment at the rate provided in Section 1274(b)(2)(B) of
the Code.  In the event that the Excise
Tax is determined to exceed the amount taken into account hereunder at the time
of the termination of the Executive’s employment (including by reason of any
payment the existence or amount of which cannot be determined at the time of
the Gross-Up Payment), the Employer shall make an additional gross-up payment
to the Executive in respect of such excess (plus any interest payable with
respect to such excess) at the time that the amount of such excess is finally
determined.

 

4.  NOTICES. 
For purposes of this Agreement, notices and all other communications
provided for herein shall be in writing and shall be deemed to have been duly
given when personally delivered or when mailed by United States registered or
certified mail, return receipt requested, postage prepaid, (i) if to Employer,
then addressed to its principal business office, to the attention of the
corporate Secretary of Employer, and (ii) if to Executive, to his or her
residence address as reflected in Employer’s records (or to such other address
as either party may furnish to the other in writing in accordance herewith,
except that notices of changes of address shall be effective only upon
receipt).

 

5.  APPLICABLE LAW.  This contract is entered into under, and
shall be governed for all purposes by, the internal laws of the State of Texas,
without regard to principles of conflicts of law requiring the application of
the law of another State.

 

6.  SEVERABILITY. 
If a court of competent jurisdiction determines that any provision of
this Agreement is invalid or unenforceable, then the

 

9

 

invalidity or unenforceability
of that provision shall not affect the validity or enforceability of any other
provision of this Agreement, and all other provisions shall remain in full
force and effect.

 

7.  COUNTERPARTS. 
This Agreement may be executed in one or more counterparts, each of
which shall be deemed to be an original, but all of which together will
constitute one and the same Agreement.

 

8.  WITHHOLDING OF TAXES.  Employer may withhold from any benefits
payable under this Agreement all federal, state, city or other taxes as may be
required pursuant to any law or governmental regulation or ruling.

 

9.  NO EMPLOYMENT AGREEMENT.  Nothing in this Agreement shall give
Executive any rights (or impose any obligations) to continued employment by
Employer or any subsidiary thereof or successor thereto, nor shall it give
Employer any rights (or impose any obligations) with respect to continued
performance of duties by Executive for Employer or any subsidiary thereof or
successor thereto.

 

10.  PAYMENT AUTHORITY.  Any officer of Employer (other than
Executive) is authorized to issue and execute a check, initiate a wire transfer
or otherwise effect payment on behalf of Employer to satisfy Employer’s
obligations to pay all amounts due to Executive under this Agreement.

 

11.  ASSIGNMENT.

 

(a)  This Agreement is personal in nature and
neither of the parties hereto shall, without the consent of the other, assign
or transfer this Agreement or any rights or obligations hereunder, except as
provided in the remainder of this paragraph 11. 
Without limiting the foregoing, Executive’s right to receive payments
hereunder shall not be assignable or

 

10

 

transferable, whether by
pledge, creation of a security interest or otherwise, other than a transfer by
his will or by the laws of descent or distribution, and in the event of any
attempted assignment or transfer contrary to this paragraph 11 Employer shall
have no liability to pay any amount so attempted to be assigned or transferred.
 This Agreement shall inure to the
benefit of and be enforceable by Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and
legatees.

 

(b)  Employer may: (i) as long as it remains
obligated with respect to this Agreement, cause its obligations hereunder to be
performed by a subsidiary or subsidiaries for which Executive performs
services, in whole or in part; (ii) assign this Agreement and its rights
hereunder in whole, but not in part, to any party with or into which it may
hereafter merge or consolidate or to which it may transfer all or substantially
all of its assets, if said party shall by operation of law or expressly in
writing assume to the reasonable satisfaction of Executive all liabilities of
Employer hereunder as fully as if it had been originally named Employer herein;
but Employer may not otherwise assign this Agreement or its rights hereunder.  Subject to the foregoing, this Agreement
shall inure to the benefit of and be enforceable by Employer’s successors and
assigns.

 

(c)  The provisions of this paragraph 11 shall not
prohibit or restrict the assignment or transfer by Executive of any otherwise
assignable or transferable right of Executive to purchase the shares of
Employer’s capital stock that are subject to any outstanding option that has
been granted to Executive by Employer (or pursuant to a stock option plan of
Employer).

 

12.  RELEASE AND FULL SETTLEMENT.  Any provision of this Agreement to the
contrary notwithstanding, as a condition to the receipt of any payment
hereunder upon the occurrence of a Termination Event, Executive shall first
execute a release, in such reasonable form as may be approved by the Board,
releasing the Board, Employer and Employer’s affiliates, shareholders,
officers, directors, employees and agents from any and all claims and from any
and all causes of action of any kind or character, including but not limited to
all claims or causes of action arising out of Executive’s

 

11

 

employment with Employer or the
termination of such employment, and the performance of Employer’s obligations
hereunder and the receipt by Executive of the payments provided hereunder shall
constitute full settlement of all such claims and causes of action.

 

13.  MODIFICATIONS.  This Agreement shall not be varied, altered,
modified, canceled, changed or in any way amended except by mutual agreement of
the parties in a written instrument executed by the parties hereto or their
legal representatives.

 

14.  DISPUTE PROCEDURE AND ARBITRATION.  Any dispute arising in connection with this
Agreement shall be resolved as follows:

 

(a)  If Executive believes that he has been denied
any payment or benefit he is entitled to receive under this Agreement, within
60 days following such denial Executive shall file a written claim for such
denied payment or benefit with the President of Employer (the “President”).  Such written claim shall detail the arguments
and attach copies of the documents that support Executive’s claim for the
denied payment or benefit.  Within 30
days after the receipt of such written claim, the President shall review such
claim and notify Executive as to whether he is entitled to such payment or
benefit.  Such a notification from the
President shall be in writing and, if denying Executive’s claim for such
payment or benefit, shall set forth the specific reason or reasons for the
denial and make specific reference to the pertinent provisions of this
Agreement.

 

(b) Any
dispute arising in connection with this Agreement that is not resolved to the
satisfaction of Executive pursuant to the procedure provided for in paragraph
14(a) above, shall be finally resolved by arbitration in Houston, Texas,
governed by the Federal Arbitration Act and

 

12

 

conducted pursuant to and in
accordance with the National Rules for the Resolution of Employment Disputes of
the American Arbitration Association.  Either
the Employer or the Executive may request arbitration by sending written notice
to the other party.  In any such
arbitration, the only issues to be considered and determined by the
arbitrator(s) shall be issues pertaining to legal and equitable rights and
obligations of the parties under this Agreement and any applicable law.  A decision and award of the arbitrator(s)
shall be final, and may be entered in any court having jurisdiction thereof,
and application may be made to such court for judicial acceptance and/or an
order enforcing such decision and/or award. 
Judicial review of any decision or award shall be in accordance with the
Federal Arbitration Act, except that review of any award of punitive or
exemplary damages shall be conducted as if the award of such damages were made
by a jury sitting in a federal district court in Houston, Texas.  In the event the arbitrator(s) determine
there is a prevailing party in the arbitration, the prevailing party shall
recover from the losing party all costs of arbitration, including but not
limited to the fees of the arbitrator(s) and reasonable attorneys’ fees
incurred by the prevailing party.  The
provisions of this paragraph 14(b) shall not be construed to limit or to
preclude either party from bringing an action in any court of competent
jurisdiction for injunctive relief.

 

IN WITNESS
WHEREOF, the parties have caused this Agreement to be executed and delivered as
of the day and year first above written.

 

	
   

  	
  NOBLE
  AFFILIATES, INC.

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:
  Charles D. Davidson

  	
   

  
	
   

  	
  Title: Chairman, President & Chief

  Executive Officer

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  [Name]

  	
   

  

 

13

 

SCHEDULE TO
EXHIBIT 10.1

FORM
OF CHANGE OF CONTROL AGREEMENT*

 

The Change of Control Agreements
between the Company and the officers named below, are identical in all material
respects (except as noted below) other than with respect to (1) their
employment position and (2) the multiplier, which is used to calculate the lump
sum payment that will be made upon termination and the provision of insurance
benefits. These differences are as follows for each officer:

 

	
  Name

  	
   

  	
  Position

  	
   

  	
  Multiplier

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  C.D. Davidson

  	
   

  	
  President

  	
   

  	
  2.99

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A.R. Bullington

  	
   

  	
  Sr. VP - International Division

  	
   

  	
  2.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  R.K Burleson

  	
   

  	
  Sr. VP - Business
  Administration and President - Noble Energy Marketing, Inc.

  	
   

  	
  2.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  S.M. Cunningham

  	
   

  	
  Sr. VP - Exploration

  	
   

  	
  2.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  J.L. McElvany

  	
   

  	
  Sr. VP - CFO and Treasurer

  	
   

  	
  2.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  W.A. Poillion, Jr.

  	
   

  	
  Sr. VP - Production and
  Drilling

  	
   

  	
  2.50

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  D.A. Stover

  	
   

  	
  Sr. VP - Domestic Division

  	
   

  	
  2.50

  	
   

  

 

*      There have been no material
changes to the Form of Change of Control Ageement.  This Schedule to the Form of Change of
Control Agreement contains the only changes.Exhibit 4.1

 

AMENDMENT NO. 5 TO AMENDED AND RESTATED

LOAN AGREEMENT

This
Amendment No. 5 to Amended and Restated Loan Agreement (this “Amendment”) dated
as of August 18, 2004 is entered into among Palace Station Hotel &
Casino, Inc., a Nevada corporation (“Palace”), Boulder Station, Inc., a Nevada
corporation (“Boulder”), Texas Station, LLC, a Nevada limited liability company
(“Texas”), Santa Fe Station, Inc., a Nevada corporation (“Santa Fe”), Sunset
Station, Inc., a Nevada corporation (“Sunset”), Lake Mead Station Holdings,
LLC, a Nevada limited liability company (“Lake Mead Holdings”), Lake Mead
Station, Inc., a Nevada corporation (“Lake Mead”), Fiesta Station Holdings,
LLC, a Nevada limited liability company (“Fiesta Holdings”), Fiesta Station,
Inc., a Nevada corporation (“Fiesta”), Charleston Station, LLC, a Nevada
limited liability company (“Charleston” and, collectively with Palace, Boulder,
Texas, Santa Fe, Sunset, Lake Mead Holdings, Lake Mead, Fiesta Holdings and
Fiesta, the “Borrowers”), Station Casinos, Inc. (“Parent”), and Bank of
America, N.A., as Administrative Agent (“Administrative Agent”), with reference
to the Amended and Restated Loan Agreement dated as of September 18, 2002 among
the Borrowers, Parent, the Lenders party thereto, and the Administrative Agent
(as amended, the “Loan Agreement”).  The
Loan Agreement has previously been amended by amendments dated as of January
24, 2003, July 14, 2003, December 18, 2003 and March 19, 2004.  Capitalized terms used but not defined herein
are used with the meanings set forth for those terms in the Loan Agreement.

AGREEMENT

The
Borrowers, Parent and the Administrative Agent, acting with the consent of the
Requisite Lenders pursuant to Section 12.2 of the Loan Agreement, hereby agree
to amend the Loan Agreement as follows:

1.             Section 1.1 - Defined Terms
(Aggregate Basket).  The definition
of Aggregate Basket contained in Section 1.1 of the Loan Agreement is hereby
amended to read in full as follows:

                “Aggregate
Basket” means $800,000,000 minus the aggregate
amount of the liabilities required by Generally Accepted Accounting Principles
to be quantified on the combined balance sheet of Parent and its Subsidiaries
in respect of Support Agreements (excluding in such combination for this
purpose, the Person for whose benefit the Support Agreement has been executed).

2.             Section 2.4(a) — Letters of
Credit.  Section 2.4(a) of the Loan
Agreement is hereby amended so that the limit on the Aggregate Effective Amount
under all outstanding Letters of Credit is increased from $10,000,000 to
$25,000,000.

3.             Section 7.16 — Basket
Expenditures.  Section 7.16 of the
Loan Agreement is hereby amended to read in full as follows:

                7.16         Basket Expenditures.  Make or commit to make any Basket Expenditure
in any Fiscal Year if, giving effect thereto, the aggregate Basket Expenditures
made or committed to be made following January 1, 2004 (other than Red Rock
Capital Expenditures) would exceed the Aggregate Basket, provided that
prior to the Red Rock Completion Date, the aggregate amount of Basket
Expenditures (other than Red Rock Capital Expenditures) shall not exceed $600,000,000.

4.             Conditions Precedent to
Amendment.  The effectiveness of this
Amendment is conditioned upon receipt by the Administrative Agent of the
following:

 

 

(a)           Counterparts of this Amendment
executed by all parties hereto;

(b)           written consents of each of the
Sibling Guarantors to the execution, delivery and performance hereof,
substantially in the form of Exhibit A hereto;

(c)           Written consent of the Requisite
Lenders as required under Section 12.2 of the Loan Agreement, substantially in
the form of Exhibit B hereto; and

(d)           Such other assurances as the
Administrative Agent may reasonably require.

5.             Representations and Warranties.  Borrowers hereby represent and warrant that
no Default or Event of Default has occurred and remains continuing.

6.             Consent of Parent.  The execution of this Amendment by Parent
shall constitute its consent, in its capacity as guarantor under the Parent
Guaranty, to this Amendment.

7.             Confirmation.  In all other respects, the terms of the Loan
Agreement and the other Loan Documents are hereby confirmed.

8.             Governing Law.  This Amendment shall be governed by and
construed in accordance with the laws of the State of California.

9.             Counterparts.  This Amendment may be executed in any number
of counterparts each of which, when taken together, will be deemed to be a
single instrument.

(signature
page follows)

 

IN
WITNESS WHEREOF, Parent, the Borrowers and the Administrative Agent have executed
this Amendment as of the date first above written by their duly authorized
representatives.

STATION
CASINOS, INC.

BOULDER STATION, INC.

LAKE MEAD STATION, INC.

PALACE STATION HOTEL & CASINO, INC.

SANTA FE STATION, INC.

SUNSET STATION, INC.

FIESTA STATION, INC.

FIESTA STATION HOLDINGS, LLC

LAKE MEAD STATION HOLDINGS, LLC 

TEXAS STATION, LLC (By: STATION CASINOS, INC., its member) and

CHARLESTON STATION, LLC

 

 

 

	
  By:

  	
   

  	
  /s/ Glenn C.
  Christenson

  

Glenn
C. Christenson, acting for the foregoing as:

(i) Executive Vice President, Chief Financial Officer, Chief Administrative
Officer and Treasurer of Station Casinos, Inc.;

(ii) Manager of Fiesta Station Holdings, LLC, Lake Mead 

Station Holdings, LLC, and Charleston Station, LLC; and

(iii) Senior Vice President and Treasurer of each of the other Borrowers

 

BANK
OF AMERICA, N.A., as Administrative Agent

 

	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

Exhibit A

 

CONSENT OF SIBLING GUARANTORS

Reference
is hereby made to that certain Amended and Restated Loan Agreement dated as of
September 18, 2002 among Palace Station Hotel & Casino, Inc., a Nevada
corporation (“Palace”), Boulder Station, Inc., a Nevada corporation (“Boulder”),
Texas Station, LLC, a Nevada limited liability company (“Texas”), Santa Fe
Station, Inc., a Nevada corporation (“Santa Fe”), Sunset Station, Inc., a
Nevada Corporation (“Sunset”), Lake Mead Station Holdings, LLC, a Nevada
limited liability company (“Lake Mead Holdings”), Lake Mead Station, Inc., a
Nevada corporation (“Lake Mead”), Fiesta Station Holdings, LLC, a Nevada
limited liability company (“Fiesta Holdings”), Fiesta Station, Inc., a Nevada
corporation (“Fiesta”) and Charleston Station, LLC, a Nevada limited liability
company (“Charleston” and, collectively with Palace, Boulder, Texas, Santa Fe,
Sunset, Lake Mead Holdings, Lake Mead, Fiesta Holdings and Fiesta, the “
Borrowers”), Station Casinos, Inc. (“Parent”), the Lenders party thereto, and
Bank of America, N.A., as Administrative Agent, (as amended, the “Loan
Agreement”).  Capitalized terms not
otherwise defined herein shall have the meanings set forth in the Loan
Agreement.

Each
of the undersigned hereby consents to the execution, delivery and performance
by Parent and the Borrowers of Amendment No. 5 to the Loan Agreement.

Each
of the undersigned represents and warrants to the Administrative Agent and the
Lenders that the Sibling Guaranty remains in full force and effect in
accordance with its terms.

Dated:   August 18, 2004

TROPICANA
STATION, INC.

GV RANCH STATION, INC.

GREEN VALLEY STATION, INC.

DURANGO STATION, INC.

STATION HOLDINGS, INC.

PALMS STATION, LLC

SUNSET STATION LEASING COMPANY, LLC (By: STATION CASINOS, INC., its member)

TOWN CENTER STATION, LLC (formerly known as RED ROCK STATION HOLDINGS, LLC)

CHARLESTON STATION, INC.

RANCHO STATION, LLC (By: STATION CASINOS, INC., its manager)

 

	
  By:

  	
   

  	
  /s/
  Glenn C.
  Christenson

  

                Glenn
C. Christenson, acting as:
                (i)  Senior Vice President, Chief Financial
Officer and Treasurer of Tropicana Station, Inc. and GV Ranch Station, Inc.;
                (ii) Vice President, Chief
Financial Officer, Treasurer and Assistant Secretary of Green Valley Ranch
Station, Inc.;
                (iii)  President and Treasurer of Durango Station,
Inc. and Station Holdings, Inc.;
                (iv) Executive Vice
President, Chief Financial Officer, Chief Administrative Officer and Treasurer
of Station Casinos, Inc.;
                (v)   President, Treasurer and Assistant Secretary
of Palms Station, LLC and Charleston Station, Inc.; and
                (vi)  Manager of Town Center Station, LLC

 

 

VISTA
HOLDINGS, LLC

 

	
  By:

  	
   

  	
  /s/ Richard Haskins

  
	
   

  	
   

  	
  Richard Haskins,

  
	
   

  	
   

  	
  Manager

  

 

 

 

Exhibit B

 

CONSENT OF LENDER

Reference
is hereby made to that certain Amended and Restated Loan Agreement dated as of
September 18, 2002 among Palace Station Hotel & Casino, Inc., a Nevada
corporation (“Palace”), Boulder Station, Inc., a Nevada corporation (“Boulder”),
Texas Station, LLC, a Nevada limited liability company (“Texas”), Santa Fe
Station, Inc., a Nevada corporation (“Santa Fe”), Sunset Station, Inc., a
Nevada Corporation (“Sunset”), Lake Mead Station Holdings, LLC, a Nevada
limited liability company (“Lake Mead Holdings”), Lake Mead Station, Inc., a
Nevada corporation (“Lake Mead”), Fiesta Station Holdings, LLC, a Nevada
limited liability company (“Fiesta Holdings”), Fiesta Station, Inc., a Nevada
corporation (“Fiesta”) and Charleston Station, LLC, a Nevada limited liability
company (“Charleston” and, collectively with Palace, Boulder, Texas, Santa Fe,
Sunset, Lake Mead Holdings, Lake Mead, Fiesta Holdings and Fiesta, the “
Borrowers”), Station Casinos, Inc. (“Parent”), the Lenders party thereto, and
Bank of America, N.A., as Administrative Agent, (as amended, the “Loan
Agreement”).  Capitalized terms not
otherwise defined herein shall have the meanings set forth in the Loan
Agreement.

The
undersigned Lender hereby consents to the execution and delivery of Amendment
No. 5 to Amended and Restated Loan Agreement, by the Administrative Agent on
its behalf, substantially in the form of the most recent draft presented to the
undersigned Lender.

Dated:  August ___ , 2004

	
   

  
	
  [Name of Lender]

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

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