Document:

EXHIBIT 4.6  

Caesars Entertainment, Inc.

Harrah's Entertainment, Inc.

and

Harrah's Operating Company, Inc. 

      

Floating Rate Contingent Convertible Senior Notes due 2024 

       

Second Supplemental Indenture

Dated as of June 13, 2005

To the

Indenture dated as of April 7, 2004, as amended on November 4, 2004 

U.S. Bank National Association,

as Trustee 

 

        THIS
SECOND SUPPLEMENTAL INDENTURE, dated as of June 13, 2005 (this "Supplemental Indenture"), is among Caesars Entertainment, Inc., a Delaware corporation ("Caesars"),
Harrah's Entertainment, Inc., a Delaware corporation ("Harrah's"), Harrah's Operating Company, Inc., a Delaware corporation and the direct, wholly owned subsidiary of Harrah's ("Harrah's
Operating"), and U.S. Bank National Association, as trustee (the "Trustee"). 

W
I T N E S S E T H: 

        WHEREAS,
Caesars and the Trustee executed and delivered an Indenture, dated as of April 7, 2004 (the "Original Indenture"), providing for the issuance of Caesars Floating Rate
Contingent Convertible Senior Notes due 2024 (the "Securities"); 

        WHEREAS,
Caesars and the Trustee executed a First Supplemental Indenture dated as of November 4, 2004 (the "First Supplemental Indenture," and the Original Indenture as amended
and supplemented hereby, the "Indenture") in order to cure certain ambiguities, omissions and inconsistencies with respect to Sections 10.14 and 10.01(a)(v) of the Indenture; 

        WHEREAS,
pursuant to Section 9.01(a) of the Indenture, Caesars and the Trustee may amend or supplement the Indenture to comply with Article 5 or Section 10.11
of the Indenture, and pursuant to Section 9.01(c) of the Indenture, Caesars and the Trustee may amend or supplement the Indenture to make any other change that does not adversely affect
the rights of any Holder in any material respect; 

        WHEREAS,
Caesars has entered into a merger agreement with Harrah's and Harrah's Operating, dated as of July 14, 2004 (the "Merger Agreement"), pursuant to which the parties
thereto have agreed
that, upon satisfaction of the conditions set forth in the Merger Agreement, Caesars will merge with and into Harrah's Operating, with Harrah's Operating as the surviving corporation (the "Merger"),
and Caesars stockholders will receive the Merger Consideration (as defined below); 

        WHEREAS,
Section 5.01(a) and Section 10.11 require Caesars, Harrah's and Harrah's Operating to execute and deliver to the Trustee this Supplemental Indenture as a
result of the Merger, and, accordingly, this Supplemental Indenture and the amendments set forth herein are authorized pursuant to Section 9.01(a) of the Indenture referred to above; 

        WHEREAS,
the execution and delivery of this Supplemental Indenture has been duly authorized by the parties hereto, and all other acts necessary to make this Supplemental Indenture a
valid and binding supplement to the Indenture effectively amending the Indenture as set forth herein have been duly taken; 

        NOW
THEREFORE, THIS INDENTURE WITNESSETH, that, for and in consideration of the above premises, it is mutually covenanted and agreed, for the equal and proportionate benefit of all
Holders of the Securities, as follows: 

        Section 1.    Capitalized Terms.    Capitalized terms used herein without definition
shall have the meanings ascribed to them in the Indenture. Unless the context otherwise requires, all references to the Indenture shall mean the Indenture as amended and supplemented hereby. 

        Section 2.    Amendments to the Indenture.    

        From
and after the time at which the Merger becomes effective in accordance with the Delaware General Corporation Law (the "Effective
Time"), Caesars, Harrah's, Harrah's Operating and the Trustee hereby agree as follows: 

        (a)   Section 1.01 of the Indenture is amended to include the following definitions:  

        "Effective Time" means the time at which the Merger became effective in accordance with the Delaware General
Corporation Law. 

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        "Merger" means the merger of Caesars Entertainment, Inc., with and into Harrah's Operating Company, Inc., with Harrah's
Operating Company, Inc. being the surviving corporation, pursuant to that certain merger agreement, dated as of July 14, 2004, among Caesars Entertainment, Inc., Harrah's
Operating Company, Inc. and Harrah's Entertainment, Inc. 

        "Parent" means Harrah's Entertainment, Inc., a Delaware corporation, until a successor replaces it pursuant to the applicable
provisions of this Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent successor or successors. 

        "Parent's Board of Directors" means either the board of directors of the Parent or any duly authorized committee of such board of
directors authorized to act for it with respect to this Indenture. 

        (b)   The
following definitions in Section 1.01 of the Indenture are amended and restated in their entirety to read as follows: 

        "Common Stock" shall mean shares of the Parent's Common Stock, $0.10 par value per share, as they exist at the Effective Time, or any
other shares of Capital Stock of the Parent into which the Common Stock shall be reclassified or changed." 

        "Company" means Harrah's Operating Company, Inc. until a successor replaces it pursuant to the applicable provisions of this
Indenture and, thereafter, shall mean such successor. The foregoing sentence shall likewise apply to any subsequent successor or successors." 

        "Conversion Price" means, as of the Effective Time, $68.65 per share of Common Stock, subject to the adjustments described in 10.05
hereof." 

        (c)   Section 1.02
of the Indenture is amended and restated in its entirety to read as follows: 

        "Section 1.02.  Other Definitions.

	Term
 
	 	Defined in

Section
	 
	Acceleration Notice	 	6.02(a	)
	Act	 	1.05(a	)
	Agent Members	 	2.12(e	)
	Authenticating Agent	 	2.02	 
	Change in Control Repurchase Date	 	3.09(a	)
	Change in Control Repurchase Notice	 	3.09(c	)
	Change in Control Repurchase Price	 	3.09(a	)
	Company Change in Control Repurchase Notice	 	3.09(b	)
	Company Repurchase Notice	 	3.08(b	)
	Consolidated Net Tangible Assets	 	6.01	 
	Conversion Agent	 	2.03	 
	Conversion Date	 	10.02(a	)
	Conversion Value	 	10.14(a	)
	Depositary	 	2.01(b	)
	Determination Date	 	10.14(b	)
	DTC	 	2.01(b	)
	Event of Default	 	6.01	 
	Ex-Dividend Date	 	10.01(c	)
	Expiration Time	 	10.05(d	)
	Global Security	 	2.01(b	)
	Legal Holiday	 	11.08	 
	Net Share Amount	 	10.14(b	)
	Net Shares	 	10.14(b	)
	 	 	 	 

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	Non-recourse Debt	 	6.01	 
	Paying Agent	 	2.03	 
	Pre-Dividend Sale Price	 	10.05(e	)
	Principal Return	 	10.14(b	)
	Principal Value Conversion	 	10.01(a	)
	Purchased Shares	 	10.05(d	)
	QIB	 	2.06(e	)
	Quarter	 	10.01(a	)
	Redemption Price	 	3.01(a	)
	Registrar	 	2.03	 
	Repurchase Date	 	3.08(a	)
	Repurchase Notice	 	3.08(a	)
	Repurchase Price	 	3.08(a	)
	Rule 144A Information	 	4.06	 
	Stockholder Rights Plan	 	10.05(f	)
	Ten Day Average Closing Stock Price	 	10.14(a	)
	Transaction Conversion Period	 	10.01(a	)
	Transfer Restricted Securities	 	2.06(e	)

" 

        (d)   Section 10.01(a)(iv)(B) of
the Indenture is amended and restated in its entirety to read as follows: 

        "  (B)    a
distribution to all holders of Common Stock of cash or other assets, evidences of Parent indebtedness, rights or warrants to purchase or subscribe for
Capital Stock or other securities of the Parent, where the fair market value of such distribution per share of Common Stock (as determined by the Parent's Board of Directors, whose determination shall
be conclusive evidence of such fair market value) exceeds 10% of the Common Stock Price on the Trading Day immediately preceding the date such distribution was first publicly announced;" 

        (e)   Section 10.01(a)(v) of
the Indenture is amended and restated in its entirety to read as follows: 

        "(v)  if
the Company or the Parent is party to a consolidation, merger, share exchange, sale of all or substantially all of its properties and assets or other similar
transaction, in each case pursuant to which the Common Stock is subject to conversion into cash, securities or other property, from and after the effective date of such transaction until and including
the date that is 15 days after the effective date of such transaction (the "Transaction Conversion Period")."  

        (f)    Section 10.02(a) of the Indenture is amended in its entirety to read as follows:  

        "(a)  To convert a Security, a Holder must (i) if the Security is in definitive form, complete and manually sign the irrevocable conversion
notice on the back of the Security and deliver such notice to the Conversion Agent, (ii) if the Security is in definitive form, surrender the Security to the Conversion Agent, (iii) if
the Security is in definitive form, furnish appropriate endorsements and transfer documents if required by the Registrar or the Conversion Agent, (iv) pay any transfer or other tax, if required
by Section 10.03 and (v) if the Security is held in book-entry form, complete and deliver to the Depositary appropriate instructions pursuant to the Applicable Procedures. The later of
(x) the date on which the Holder satisfies all of the foregoing requirements and (y) the Determination Date is the "Conversion Date." As promptly as
practicable after the Conversion Date and in any event within four Business Days thereof, the Company and the Parent shall deliver to the Holder through the Conversion Agent (1) to the extent
applicable, cash in the amount calculated in accordance with 

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Section 10.14,
(2) the number of whole shares of Common Stock issuable upon the conversion and (3) cash in lieu of any fractional shares pursuant to Section 10.14." 

        (g)   Section 10.04
of the Indenture is amended to read in its entirety as follows: 

        "Section 10.04.    Parent To Provide Stock.    The Parent shall, prior to issuance of any Securities hereunder,
and from time to time as may be necessary, reserve, out of its authorized but unissued Common Stock, a sufficient number of shares of Common Stock to permit the conversion of all outstanding
Securities into shares of Common Stock. The certificates representing the shares of Common Stock issued upon conversion of Transfer Restricted Securities shall bear a legend substantially in the
following form: 

"THIS
SECURITY (OR ITS PREDECESSOR) WAS ORIGINALLY ISSUED IN A TRANSACTION EXEMPT FROM REGISTRATION UNDER THE UNITED STATES SECURITIES ACT OF 1933, OR THE "SECURITIES ACT", AND THIS SECURITY MAY NOT
BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM. EACH PURCHASER OF THIS SECURITY IS HEREBY NOTIFIED THAT THE SELLER OF THIS SECURITY
MAY BE RELYING ON THE EXEMPTION FROM THE PROVISIONS OF SECTION 5 OF THE SECURITIES ACT PROVIDED BY RULE 144A THEREUNDER. 

THE
HOLDER OF THIS SECURITY AGREES FOR THE BENEFIT OF HARRAH'S ENTERTAINMENT, INC. (THE "COMPANY") THAT (A) THIS SECURITY MAY BE OFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED, ONLY (I) TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER (AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT) IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A, (II) PURSUANT
TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT PROVIDED BY RULE 144 THEREUNDER (IF AVAILABLE), (III) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR (IV) TO THE
COMPANY OR ANY OF ITS SUBSIDIARIES, IN EACH OF CASES (I) THROUGH (IV) IN ACCORDANCE WITH ANY APPLICABLE SECURITIES LAWS OF ANY STATE OF THE UNITED STATES, AND (B) THE HOLDER WILL, AND EACH
SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER OF THIS SECURITY FROM IT OF THE RESALE RESTRICTIONS REFERRED TO IN (A) ABOVE." 

        The
Parent covenants that all shares of Common Stock delivered upon conversion of the Securities shall be newly issued shares or treasury shares, shall be duly authorized, validly
issued, fully paid and non-assessable and shall be free from preemptive rights and free of any lien or adverse claim. 

        The
Parent will endeavor promptly to comply with all federal and state securities laws regulating the offer and delivery of shares of Common Stock upon conversion of Securities, if any,
and will list or cause to have quoted such shares of Common Stock on each national securities exchange or in the over-the-counter market or such other market on which the Common Stock is then listed
or quoted." 

        (h)   Section 10.05
of the Indenture is amended in its entirety to read as follows: 

        "Section 10.05.    Adjustment of Conversion Price.    The Conversion Price shall be adjusted (without
duplication) from time to time by the Company and the Parent as follows: 

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        (a)   In
case the Parent shall (i) pay a dividend or other distribution in shares of Common Stock to all holders of Common Stock, (ii) subdivide its outstanding
Common Stock into a greater number of shares or (iii) combine its outstanding Common Stock into a smaller number of shares, the Conversion Price shall be adjusted so that the Holder of any
Security thereafter surrendered for conversion shall be entitled to receive the number of shares of Common Stock which it would have owned or been entitled to receive had such Security been converted
immediately prior to the happening of such event. For the purposes of calculating the Conversion Price adjustment pursuant to this Section 10.05(a), Holders of a Security shall be treated as if they
had the right to convert the Security solely into Common Stock at the then applicable Conversion Price. An adjustment made pursuant to this Section 10.05(a) shall become effective
immediately after the record date in the case of a dividend or distribution and shall become effective immediately after the effective date in the case of subdivision, combination or reclassification. 

        (b)   In
case the Parent shall issue to all holders of Common Stock rights, warrants or options entitling such holders (for a period commencing no earlier than the date of
distribution and expiring not more than 60 days after the date of distribution) to subscribe for or purchase shares of Common Stock (or securities convertible into Common Stock) at a price per share
less than the average Common Stock Price for the 10 Trading Days immediately preceding the date the distribution of such rights, warrants or options was first publicly announced by the Parent, the
Conversion Price shall be decreased so that the Conversion Price shall equal the price determined by multiplying the Conversion Price in effect immediately prior to the record date for such issue by a
fraction, 

          (i)  the
numerator of which shall be the number of shares of Common Stock outstanding on such date of public announcement, plus the number of shares which the aggregate
subscription or purchase price for the total number of shares of Common Stock offered by the rights, warrants or options so issued (or the aggregate conversion price of the convertible securities
offered by such rights, warrants or options) would purchase at such average Common Stock Price, and 

         (ii)  the
denominator of which shall be the number of shares of Common Stock outstanding on such date of public announcement plus the number of additional shares of Common
Stock offered by such rights, warrants or options (or into which the convertible securities so offered by such rights, warrants or options are convertible); 

provided that no adjustment will be made if Holders of the Securities may participate in the transaction on a basis and with notice that the Parent's
Board of Directors determines to be fair and appropriate. 

        Such
adjustment shall be made successively whenever any such rights, warrants or options are issued, and shall become effective immediately after such record date. If at the end of the
period during which such rights, warrants or options are exercisable not all rights, warrants or options shall have been exercised, the adjusted Conversion Price shall be immediately readjusted to
what it would have been upon application of the foregoing adjustment substituting the number of additional shares of Common Stock actually issued (or the number of shares of Common Stock issuable upon
conversion of convertible securities actually issued) for the total number of shares of Common Stock offered (or convertible securities offered). 

        (c)   In
case the Parent shall distribute to all holders of Common Stock any shares of Capital Stock of the Parent (other than Common Stock) or evidences of its indebtedness,
other securities or other assets, or shall distribute to all holders of Common Stock, rights, warrants or options to subscribe for or purchase any of its securities (excluding (i) those rights,
options and warrants referred to in Section 10.05(b); (ii) those dividends, distributions, subdivisions and combinations referred to in Section 10.05(a); and (iii) those
dividends and distributions paid in cash referred to in Section 10.05(e)), then in each such case the Conversion Price shall be decreased so that the same shall equal the price determined by
multiplying the Conversion Price in effect immediately prior to the date of such distribution by a fraction, 

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        (i)    the
numerator of which shall be the Market Price on the record date for the determination of holders of Common Stock entitled to receive such distribution less the fair
market value on such record date (as determined by the Parent's Board of Directors, whose determination shall be conclusive evidence of such fair market value) of the portion of the Capital Stock or
evidences of indebtedness, securities or assets so distributed or of such rights, warrants or options, in each case applicable to one share of Common Stock, and 

        (ii)   the
denominator of which shall be the Market Price on such record date, 

such
adjustment to become effective immediately after the record date for such distribution; provided, that if the numerator of the foregoing fraction
is less than $1.00 (including a negative amount), then in lieu of the foregoing adjustment, adequate provision shall be made so that each Holder shall have the right to receive upon conversion, in
addition to the cash and Common Stock issuable upon such conversion, the distribution such Holder would have received had such Holder converted its Security solely into Common Stock at the then
applicable Conversion Price immediately prior to the record date
for such distribution; provided, further, that no adjustment will be made if Holders of the Securities may participate in the transaction on a basis and
with notice that the Parent's Board of Directors determines to be fair and appropriate. 

        (d)   In
case the Parent or any Subsidiary of the Parent makes a payment to Holders of Common Stock in respect of a tender or exchange offer other than an odd-lot offer, for
the Parent's Common Stock to the extent that the offer involves aggregate consideration that, together with any cash and the Fair Market Value of any other consideration payable in respect of any
tender or exchange offer by the Parent of any of its Subsidiaries for shares of the Parent's Common Stock consummated within the preceding 12 months not triggering a Conversion Price adjustment,
exceeds an amount equal to 12.5% of the market capitalization of the Parent's Common Stock on the expiration date of the tender offer, the Conversion Price shall be decreased so that the same shall
equal the price determined by multiplying the Conversion Price in effect immediately prior to the expiration time of such tender or exchange offer (the "Expiration
Time") by a fraction, 

        (i)    the
numerator of which shall be the number of shares of Common Stock outstanding (including any tendered or exchanged shares) at the Expiration Time multiplied by the
Common Stock Price on the Trading Day next succeeding the Expiration Time, and 

        (ii)   the
denominator of which shall be the sum of (x) the fair market value (determined as aforesaid) of the aggregate consideration payable to holders of Common Stock based
on the acceptance (up to any maximum specified in the terms of the tender or exchange offer) of all shares of Common Stock validly tendered or exchanged and not withdrawn as of the Expiration Time
(the shares deemed so accepted up to any such maximum being referred to as the "Purchased Shares") and (y) the product of the number of shares of Common
Stock outstanding (less any Purchased Shares) at the Expiration Time and the Common Stock Price on the Trading Day next succeeding the Expiration Time, 

such
adjustment to become effective immediately prior to the opening of business on the day following the Expiration Time. If the Parent is obligated to purchase shares pursuant to any such tender or
exchange offer, but the Parent is permanently prevented by applicable law from effecting any such purchases or all such purchases are rescinded, the Conversion Price shall again be adjusted to be the
Conversion Price that would then be in effect if such tender or exchange offer had not been made. 

        (e)   In
case the Parent shall declare a cash dividend or cash distribution to all of the holders of Common Stock, the Conversion Price shall be decreased so that the
Conversion Price shall equal the price determined by multiplying the Conversion Price in effect immediately prior to the record date for such dividend or distribution by a fraction, 

7

 

          (i)  the
numerator of which shall be the average of the Common Stock Price for the three consecutive Trading Days ending on the Trading Day immediately preceding the record
date for such dividend or distribution (the "Pre-Dividend Sale Price"), minus the full amount of such cash dividend or cash distribution applicable to one share of Common Stock, and 

         (ii)  the
denominator of which shall be the Pre-Dividend Sale Price, 

such
adjustment to become effective immediately after the record date for such dividend or distribution; provided no adjustment to the Conversion Price
or the ability of a Holder of a Security to convert will be made if the Parent provides that Holders of Securities will participate in the cash dividend or cash distribution without conversion;  provided further, that if the numerator of the foregoing fraction is less than $1.00 (including a negative amount), then in lieu of the foregoing
adjustment, adequate provision shall be made so that each Holder shall have the right to receive upon conversion, in addition to the cash and Common Stock issuable upon such conversion, the amount of
cash such Holder would have received had such Holder converted its Security immediately prior to the record date for such cash dividend or cash distribution at the Conversion Rate and for the
Conversion Value in effect at such time. If such cash dividend or cash distribution is not so paid or made, the Conversion Price shall again be adjusted to be the Conversion Price that would then be
in effect if such dividend or distribution had not been declared. 

        (f)    If
the rights provided for in the Parent's Rights Agreement dated as of October 5, 1996 (as amended from time to time, the "Stockholder
Rights Plan"), have separated from the Common Stock in accordance with the provisions of the Stockholder Rights Plan so that the Holders of the Securities would not be entitled
to receive any rights in respect of Common Stock issuable upon conversion of the Securities, the Conversion Price will be adjusted as provided in Section 10.05(c) above, subject to
readjustment in the event of the expiration, termination or redemption of the rights. In lieu of any such adjustment, the Parent may amend the Stockholder Rights Plan to provide that upon conversion
of the Securities the Holders will receive, in addition to the cash and Common Stock issuable upon such conversion, the rights such Holder would have received had such holder converted its Security
solely into Common Stock at the then applicable Conversion Price and the rights had not become separated from the Common Stock under the Stockholder Rights Plan. To the extent that the Parent adopts
any future rights plan, upon conversion of the Securities, Holders will receive, in addition to the cash and Common Stock issuable upon such conversion, the rights under the future rights plan in
respect of the shares of Common Stock such Holder would have received had such holder converted its Security solely into Common Stock at the then applicable Conversion Price, whether or not the rights
have separated from the Common Stock at the time of conversion, and no adjustment to the Conversion Price will be made in connection with any distribution of rights thereunder. 

        (g)   In
any case in which this Section 10.05 shall require that an adjustment be made immediately following a record date established for purposes of this
Section 10.05, the Parent may elect to defer (but only until five Business Days following the filing by the Company with the Trustee of the certificate described in Section 10.09)
issuing to the holder of any Security converted after such record date the cash, shares of Common Stock and other Capital Stock of the Parent issuable upon such conversion over and above the cash,
shares of Common Stock and other Capital Stock of the Parent issuable upon such conversion only on the basis of the Conversion Price prior to adjustment; and, in lieu of the cash
and shares the issuance of which is so deferred, the Company shall issue or cause its transfer agents to issue due bills or other appropriate evidence of the right to receive such shares. 

        (h)   Before
taking any action which would cause an adjustment decreasing the Conversion Price so that the shares of Common Stock issuable upon conversion of the Securities
would be issued for less than the par value of such Common Stock, the Parent will take all corporate action which may be necessary in order that the Parent may validly and legally issue fully paid and
non-assessable shares of such Common Stock at such adjusted Conversion Price." 

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        (i)    The
second paragraph of Section 10.06 of the Indenture is amended in its entirety to read as follows: 

        "No
adjustment need be made upon the issuance of Common stock under any present or future employee benefits plan or program of the Parent." 

        (j)    Section 10.07
of the Indenture is amended in its entirety to read as follows: 

        "Section 10.07.  Equivalent Adjustments.  If, as a result of an adjustment made pursuant to
Section 10.05 above, the Holder of any Security thereafter surrendered for conversion shall become entitled to receive any shares of Capital Stock of the Parent other than shares of Common
Stock, thereafter the Conversion Price of such other shares so receivable upon conversion of any Securities shall be subject to adjustment from time to time in a manner and on terms as nearly
equivalent as practicable to the provisions with respect to Common Stock contained in this Article 10." 

        (k)   Section 10.08
of the Indenture is amended in its entirety to read as follows: 

        "Section 10.08.  Adjustment for Tax Purposes.  The Parent shall be entitled to make such reductions in the
Conversion Price, in addition to those required by Section 10.05, as the Parent's Board of Directors in its discretion shall determine to be advisable in order that any stock dividends,
subdivisions of shares, distributions of rights to purchase stock or other securities, or distributions of securities convertible into or exchangeable for stock hereafter made by the Parent to its
holders of Common Stock shall not be taxable to such holders." 

        (l)    Section 10.10
of the Indenture is amended in its entirety to read as follows: 

        "Section 10.10.  Notice of Certain Transactions. In case: 

        (a)   the
Parent shall declare a dividend (or any other distribution) on the Common Stock; or 

        (b)   the
Parent shall authorize the granting to the holders of Common Stock of rights, warrants or options to subscribe for or purchase any share of any class or any other
rights, warrants or options; or 

        (c)   of
any reclassification of the Common Stock of the Parent (other than a subdivision or combination of its outstanding Common Stock, or a change in par value, or from par
value to no par value, or from no par value to par value), or of any consolidation, merger, or share exchange to which the Parent is a party and for which approval of any holders of Common Stock is
required, or of the sale or transfer of all or substantially all of the properties and assets of the Parent; or 

        (d)   of
the voluntary or involuntary dissolution, liquidation or winding-up of the Parent; 

the
Company and the Parent shall cause to be filed with the Trustee and the Conversion Agent and to be mailed to each Holder of Securities at its address appearing on the list provided for in
Section 2.05, as promptly as possible but in any event at least ten days prior to the applicable date hereinafter specified, a notice stating (x) the date on which a record is to be taken for
the purpose of such dividend, distribution or rights, warrants or options, or, if a record is not to be taken, the date as of which the holders of Common Stock of record to be entitled to such
dividend, distribution or rights are to be determined, or (y) the date on which such reclassification, consolidation, merger, share exchange, sale, transfer, dissolution, liquidation or winding-up is
expected to become effective or occur, and the date as of which it is expected that holders of Common Stock of record shall be entitled to exchange their Common Stock for securities or other property
deliverable upon such reclassification, consolidation, merger, share exchange, sale, transfer, dissolution, liquidation or winding-up. Failure to give such notice, or any defect therein, shall not
affect the legality or validity of such dividend, distribution, reclassification, consolidation, merger, sale, share exchange, transfer, dissolution, liquidation or winding-up." 

        (m)  Section 10.11
of the Indenture is amended in its entirety to read as follows: 

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        "Section 10.11.  Effect of Reclassification, Consolidation, Merger, Share Exchange or Sale on Conversion
Privilege. If any of the following shall occur, namely: (i) any reclassification or change of outstanding shares of Common Stock (other than a change in par value, or
from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination); (ii) any consolidation, combination, merger or share exchange to which the
Company or the Parent is a party other than a merger in which the Company and/or the Parent is the resulting or surviving corporation and which does not result in any reclassification of, or change
(other than a change in name, or par value, or from par value to no par value, or from no par value to par value, or as a result of a subdivision or combination) in, outstanding shares of Common
Stock; or (iii) any sale or conveyance of all or substantially all of the properties and assets of the Company or the Parent, then the Company and the Parent, or such successor or purchasing
corporation, as the case may be, shall, as a condition precedent to such reclassification, change, consolidation, merger, share exchange, sale or conveyance, execute and deliver to the Trustee a
supplemental indenture providing that (i) during the Transaction Conversion Period, the Holder of each Security then outstanding shall have the right to convert such Security into the kind and
amount of cash, securities or other property receivable upon such reclassification, change, consolidation, merger, share exchange, sale or conveyance by a holder of the number of shares of Common
Stock deliverable upon conversion of such Security solely into Common Stock at the then applicable Conversion Price immediately prior to such reclassification, change, consolidation, merger, share
exchange, sale or conveyance; provided that, if the holders of Common Stock have a right of election as to the kind or amount of cash, securities or other property receivable upon such
reclassification, change, consolidation, merger, share exchange, sale or conveyance, the Holder of each Security then outstanding shall have the right to elect to convert such Security (based on the
number of shares of Common Stock deliverable upon conversion of such Security solely into Common Stock) into the kind and amount of cash, securities or other property receivable by a holder of Common
Stock that exercised such election or the kind and amount of cash, securities or other property receivable by a holder of Common Stock that did not exercise such election on the same basis as the
holders of the Common Stock , and (ii) after the Transaction Conversion Period (x) the Securities shall be convertible into the common stock of the surviving entity of such reclassification,
change, consolidation, merger, share exchange, sale or conveyance (or the parent of such entity, if the holders of Common Stock received the parent's common stock in such reclassification, change,
consolidation, merger, share exchange, sale or conveyance) as and to the extent convertible into the Common Stock in this Article 10; (y) such common stock shall be the basis for determining
the Conversion Value pursuant to Section 10.01, Section 10.14 and the Securities (with the initial Conversion Rate in respect of such common stock equal to the then-existing Conversion Rate
multiplied by the number of shares (or fraction thereof) of such common stock issuable for each share of Common Stock in such transaction, assuming conversion of the Securities entirely into Common
Stock, and the initial Conversion Price in respect of such common stock equal to the then-existing Conversion Price divided by such number of shares (or fraction thereof)); and (z) such common stock
shall be subject to all adjustments contemplated by this Article 10. Such supplemental indenture shall provide for adjustments of the Conversion Price which shall be as nearly equivalent as may
be practicable to the adjustments of the Conversion Price provided for in this Article 10. If, in the case of any such consolidation, merger, share exchange, sale or conveyance, the stock or
other securities and property (including cash) receivable thereupon by a holder of Common Stock includes shares of Capital Stock or other securities and property of a corporation other than the
successor or purchasing corporation, as the case may be, in such consolidation, merger, share exchange, sale or conveyance, then such supplemental indenture shall also be executed by such other
corporation and shall contain such additional provisions to protect the interests of the Holders of the Securities as the board of directors shall reasonably consider necessary by reason of the
foregoing. The provision of this Section 10.11 shall similarly apply to successive consolidations, mergers, share exchanges, sales or conveyances. Notwithstanding the foregoing, a distribution
by the Parent to all or substantially all holders of Common Stock for which an adjustment to the Conversion Price or provision for conversion 

10

 

of
the Securities may be made pursuant to Section 10.05 shall not be deemed to be a sale or conveyance of all or substantially all of the properties and assets of the Parent for purposes of
this Section 10.11. 

        In
the event the Company and the Parent shall execute a supplemental indenture pursuant to this Section 10.11, the Company shall promptly file with the Trustee an Opinion of
Counsel stating that such supplemental indenture is authorized or permitted by this Indenture and an Officers' Certificate briefly stating the reasons therefor, the kind or amount of cash, securities
or other property receivable by Holders of the Securities upon the conversion of their Securities after any such reclassification, change, consolidation, merger, share exchange, sale or conveyance,
any adjustment to be made with respect thereto and that all conditions precedent have been complied with. 

        (n)   Section 10.13
of the Indenture is amended in its entirety to read as follows: 

        "Section 10.13.  Voluntary Reduction.  The Parent from time to time may reduce the Conversion Price by any
amount for any period of time if such period is at least 20 Trading Days or such longer period as may be required by law and if the reduction is irrevocable during such period; if the Parent's Board
of Directors determines, in good faith, that such decrease would be in the best interests of the Parent; provided that in no event may the Conversion
Price be less than the par value of a share of Common Stock. Any such determination by the Parent's Board of Directors shall be conclusive." 

        (m)  Section 10.14(a) of
the Indenture is amended in its entirety to read as follows: 

        "(a)  Subject
to certain exceptions described in Sections 10.01(a)(iii) and 10.01(a)(iv), Holders tendering the Securities for conversion shall be entitled to receive,
upon conversion of such Securities, cash and, if applicable, shares of Common Stock, the value of which (the "Conversion Value") shall be equal to the
product of: 

          (i)  (A) the
aggregate principal amount of Securities to be converted divided by 1,000 multiplied by (B) the then applicable Conversion Rate; and 

         (ii)  the
average of the Common Stock Prices for the ten consecutive Trading Days (appropriately adjusted to take into account the occurrence during such period of stock
splits and similar events) beginning on the second Trading Day immediately following the day the Securities are tendered for conversion (the "Ten Day Average Closing Stock
Price"); provided that if the shares of Common Stock are not listed on The New York Stock Exchange, then the Ten Day Average Closing Stock Price shall be determined by the
Company by reference to the Common Stock Price as reported by NASDAQ. 

        (n)   Section 10.15
of the Indenture is amended in its entirety to read as follows: 

        "Section 10.15.  Simultaneous Adjustments.  In the event that this Article 10 requires adjustments
to the Conversion Price under more than one of Sections 10.05(a) and (c), and the record dates for the distributions giving rise to such adjustments shall occur on the same date, then such
adjustments shall be made by applying, first, the provisions of Section 10.05(c), as applicable, and, second, the provisions of Section 10.05(a). If more than one event requiring
adjustment pursuant to Section 10.05 shall occur before completing the determination of the Conversion Price for the first event requiring such adjustment, then the Parent's Board of Directors
(whose determination shall, if made in good faith, be conclusive) shall make such adjustments to the Conversion Price (and the calculation thereof) after giving effect to all such events as shall
preserve for Holders the Conversion Price protection provided in Section 10.05." 

        (o)   The
portion of Section 11.02 of the Indenture that begins with "if to the Company" and ends immediately prior to "if to the Trustee" is amended in its entirety to
read as follows: 

        "if
to the Company or the Parent, to: 

11

 

Harrah's
Entertainment, Inc.

Harrah's Operating Company, Inc.

One Harrah's Court

Las Vegas, Nevada 89119

Attention: General Counsel

Facsimile No.: (702) 407-6286" 

        Section 3.    Assumption Agreement. 

        From
and after the Effective Time, pursuant to Sections 5.01 of the Indenture, the Company hereby agrees to assume all of the obligations of Caesars under the Indenture and the
Securities. 

        Section 4.    Conversion upon Merger.    Pursuant to Sections 10.01(a)(v) and
10.11 of the Indenture, from the Effective Time through the date that is 15 days thereafter, the Holder of each Security shall have the right to convert such Security into the kind and amount of
Merger Consideration receivable upon the
Merger by a holder of the number of shares of common stock of Caesars Entertainment, Inc. deliverable upon conversion of such Security solely into shares of common stock of Caesars
Entertainment, Inc. at the then applicable Conversion Price immediately prior to the Merger. Upon conversion, such Holder shall have the right to designate whether such Holder will receive the
Merger Consideration payable in respect of an Electing Share or a Non-Electing Share. 

        The
capitalized terms used above in this Section 4 and not defined in the Indenture or the recitals to this Supplemental Indenture have the following meanings: 

        "Electing Share" has the meaning given to such term in Section 2.01 of the Merger Agreement. 

        "Merger Consideration" has the meaning given to such term in Section 2.01(c) of the Merger Agreement. 

        "Non-Electing Share" has the meaning given to such term in Section 2.01(c) of the Merger Agreement. 

        Section 5.    Ratification and Effect.    Except as hereby expressly amended, the
Indenture is in all respects ratified and confirmed and all the terms, provisions and conditions thereof shall be and remain in full force and effect. 

        Upon
and after the execution of this Supplemental Indenture, each reference in the Indenture to "this Indenture", "hereunder", "hereof" or words of like import referring to the Indenture
shall mean and be a reference to the Indenture as modified hereby. 

        Section 6.    Governing Law.    THE INTERNAL LAWS OF THE STATE OF NEW YORK SHALL GOVERN
AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE, THE INDENTURE AS SUPPLEMENTED AND AMENDED HEREBY, AND THE SECURITIES WITHOUT REGARD TO THE CONFLICTS OF LAWS PRINCIPLES THEREOF. 

        Section 7.    Counterpart Originals.    The parties may sign any number of copies of
this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement. 

        Section 8.    The Trustee.    The recitals in this Supplemental Indenture shall be
taken as the statements of Caesars, Harrah's and Harrah's Operating, and the Trustee assumes no responsibility for their correctness. The Trustee shall not be responsible or accountable in any manner
whatsoever for or with
respect to the validity or sufficiency of this Supplemental Indenture. 

        (Signatures
on following page) 

12

 

        IN
WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed in New York, New York as of the date first written above. 

	 	 	CAESARS ENTERTAINMENT, INC., as the

"Company" prior to the Merger
	 	 	
	 
	 	 	By:	/s/  WESLEY D. ALLISON      

	 	 	Name:	Wesley D. Allison
	 	 	Title:	Senior Vice President, Controller and Interim Chief Financial Officer
	

 	
 	

HARRAH'S OPERATING COMPANY, INC., as the "Company" from and after the Merger
	 	 		 
	 	 	By:	/s/  STEPHEN H. BRAMMELL      

	 	 	Name:	Stephen H. Brammell
	 	 	Title:	Senior Vice President, General Counsel and Corporate Secretary
	

 	
 	

HARRAH'S ENTERTAINMENT, INC., as the "Parent" from and after the Merger
	

 	
 	

By:	

/s/  STEPHEN H. BRAMMELL      

	 	 	Name:	Stephen H. Brammell
	 	 	Title:	Senior Vice President, General Counsel and Corporate Secretary
	 	 	
	 
	

 	
 	

U.S. Bank National Association, as "Trustee"
	

 	
 	

By:	

/s/  RICHARD H. PROKOSCH      

	 	 	Name:	Richard H. Prokosch
	 	 	Title:	Vice President

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Exhibit 4.16  

 
 

THIRD AMENDMENT TO RIGHTS AGREEMENT    
    

        THIRD AMENDMENT, dated as of June 23, 2005, 2005 (this "Third Amendment") to the Rights Agreement (the "Rights Agreement"), dated as of October 5,
1996 and amended on February 21, 1997 and April 26, 1997, between Harrah's Entertainment, Inc., a Delaware corporation (the "Company"), and The Bank of New York, a New York
corporation, as Rights Agent (the "Rights Agent"). Unless the context indicates to the contrary, capitalized terms used and not defined herein shall have the meanings ascribed to them in the Rights
Agreement. 

        The
Company and the Rights Agent have previously entered into the Rights Agreement. The Board of Directors of the Company has authorized and declared a dividend of one Right for each
Common Share of the Company outstanding at the close of business on the Record Date, and has authorized the issuance of one Right (subject to adjustment as provided in the Rights Agreement) with
respect to each Common Share that shall become outstanding between the Record Date and the earliest of the Distribution Date, the Redemption Date and the Final Expiration Date, each Right initially
representing the right to purchase one two-hundredth of a share of Series A Special Stock of the Company, upon the terms and subject to the conditions set forth in the Rights
Agreement. 

        Pursuant
to Section 26 of the Rights Agreement, the Company and the Rights Agent may from time to time supplement or amend the Rights Agreement in accordance with the provisions
of such Section. The parties deem it advisable to supplement and amend the Rights Agreement as provided in this Third Amendment, and the Board of Directors of the Company has duly and validly
authorized the execution and delivery of this Third Amendment. 

        Accordingly,
in consideration of the premises and mutual agreements herein set forth, the parties hereby agree as follows: 

        1.     Exhibit A.
Form of Certificate of Designations. 

        The
form of Certificate of Designations of Series A Special Stock of Harrah's Entertainment, Inc. attached to the Rights Agreement as Exhibit A is hereby amended and
restated in its entirety as set forth in Exhibit A attached hereto. 

        2.     Except
as expressly set forth herein, nothing herein shall be deemed or construed to alter or amend the Rights Agreement in any respect, and, except as amended and
supplemented hereby, the Rights Agreement shall remain in full force and effect in accordance with the provisions thereof. Unless the context indicates otherwise, each reference in the Rights
Agreement to "this Rights Agreement" and the words "hereof", "hereto" and words of similar import shall mean the Rights Agreement, as amended and supplemented hereby. 

        3.     This
Third Amendment shall be deemed to be a contract made under the laws of the State of Delaware and for all purposes shall be governed by and construed in accordance
with the laws of such State applicable to contracts to be made and performed entirely within such State. 

        4.     This
Third Amendment may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute but one and the same instrument. 

        IN
WITNESS WHEREOF, the parties hereto have caused this Third Amendment to Rights Agreement to be duly executed as of the date first set forth above. 

	 	 	HARRAH'S ENTERTAINMENT, INC.
	

 	
 	

By:	

/s/  CHARLES L. ATWOOD      
 Charles L. Atwood

Senior Vice President and Chief Financial Officer
	

 	
 	

THE BANK OF NEW YORK
	

 	
 	

By:	

/s/  ROBERT J. RINAUDO      

	 	 	Name:	Robert J. Rinaudo
	 	 	Title:	Assistant Vice President

 
 

EXHIBIT A    
    

FORM 

of 

CERTIFICATE
OF DESIGNATIONS 

of 

SERIES
A SPECIAL STOCK 

of

HARRAH'S
ENTERTAINMENT, INC. 

(Pursuant
to Section 151 of the

Delaware General Corporation Law) 

        Harrah's
Entertainment, Inc., a corporation organized and existing under the General Corporation Law of the State of Delaware (hereinafter called the "Corporation"), hereby
certifies that the following resolution was adopted by the Board of Directors of the Corporation as required by Section 141(f) of the General Corporation Law by unanimous written consent dated
as of September 23, 2004, in lieu of a special meeting. 

        RESOLVED,
that, pursuant to the authority granted to and vested in the Board of Directors of this Corporation (hereinafter called the "Board of Directors" or the "Board") in accordance
with the provisions of the Certificate of Incorporation, the Board of Directors hereby creates a series of Special Stock, par value $1.125 per share (the "Special Stock"), of the Corporation and
hereby states the designation and number of shares, and fixes the relative rights, preferences, and limitations thereof as follows: 

        Series A
Special Stock: 

        Section 1.    Designation and Amount.    The shares of such series shall be designated as "Series A
Special Stock" (the "Series A Special Stock") and the number of shares constituting the Series A Special Stock shall be 4,000,000 shares.
Such number of shares may be increased or decreased by resolution of the Board of Directors; provided, that no decrease shall reduce the number of
shares of Series A Special Stock to a number less than the number of shares then outstanding plus the number of shares reserved for issuance upon the exercise of outstanding options, rights or
warrants or upon the conversion of any outstanding securities issued by the Corporation convertible into Series A Special Stock. 

        Section 2.    Dividends and Distributions.    (A) Subject to the rights of the holders of any shares of
any series of Special Stock (or any similar stock) ranking prior and superior to the Series A Special Stock with respect to dividends, the holders of shares of Series A Special Stock, in
preference to the holders of Common Stock, par value $0.10 per share (the "Common Stock"), of the Corporation, and of any other junior stock, shall be
entitled to receive, when, as and if declared by the Board of Directors out of funds legally available for the purpose, quarterly dividends payable in cash on or about the first day of February, May,
August and November in each year (each such date being referred to herein as a "Quarterly Dividend Payment Date"), commencing on the first Quarterly
Dividend Payment Date after the first issuance of a share or fraction of a share of Series A Special Stock, in an amount per share (rounded to the nearest cent) equal to the greater of
(a) $1.00 or (b) subject to the provision for adjustment hereinafter set forth, 200 times the aggregate per share amount of all cash dividends, and 200 times the aggregate per share
amount (payable in kind) of all non-cash dividends or other distributions other than a dividend payable in shares of Common Stock or a subdivision of the outstanding shares of Common Stock
(by reclassification or otherwise), declared on the Common Stock 

since
the immediately preceding Quarterly Dividend Payment Date, or, with respect to the first Quarterly Dividend Payment Date, since the first issuance of any share or fraction of a share of
Series A Special Stock. In the event the Corporation shall at any time after the date on which the Special Stock Purchase Rights of the Corporation are declared by the Board of Directors (the
"Rights Declaration Date") declare or pay any dividend on the Common Stock payable in shares of Common Stock, or effect a subdivision, combination or
consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common
Stock, then in each such case the amount to which holders of shares of Series A Special Stock were entitled immediately prior to such event under clause (b) of the preceding sentence
shall be adjusted by multiplying such amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the
number of shares of Common Stock that were outstanding immediately prior to such event. 

        (B)  The
Corporation shall declare a dividend or distribution on the Series A Special Stock as provided in paragraph (A) of this Section 2 immediately
after it declares a dividend or distribution on the Common Stock (other than a dividend payable in shares of Common Stock); provided that, in the event
no dividend or distribution shall have been declared on the Common Stock during the period between any Quarterly Dividend Payment Date and the next subsequent Quarterly Dividend Payment Date, a
dividend of $1.00 per share on the Series A Special Stock shall nevertheless be payable on such subsequent Quarterly Dividend Payment Date. 

        (C)  Dividends
shall begin to accrue and be cumulative on outstanding shares of Series A Special Stock from the Quarterly Dividend Payment Date next preceding the date
of issue of such shares of Series A Special Stock, unless the date of issue of such shares is prior to the record date for the first Quarterly Dividend Payment Date, in which case dividends on
such shares shall begin to accrue from the date of issue of such shares, or unless the date of issue is a Quarterly Dividend Payment Date or is a date after the record date for the determination of
holders of shares of Series A Special Stock entitled to receive a quarterly dividend and before such Quarterly Dividend Payment Date, in either of which events such dividends shall begin to
accrue and be cumulative from such Quarterly Dividend Payment Date. Accrued but unpaid dividends shall not bear interest. Dividends paid on the shares of Series A Special Stock in an amount
less than the total amount of such dividends at the time accrued and payable on such shares shall be allocated pro rata on a share-by-share basis among all such shares at the
time outstanding. The Board of Directors may fix a record date for the determination of holders of shares of Series A Special Stock entitled to receive payment of a dividend or distribution
declared thereon, which record date shall be not more than 60 days prior to the date fixed for the payment thereof. 

        Section 3.    Voting Rights.    The holders of shares of Series A Special Stock shall have the following
voting rights: 

        (A)  Subject
to the provision for adjustment hereinafter set forth, each share of Series A Special Stock shall entitle the holder thereof to 200 votes on all matters
submitted to a vote of the stockholders of the Corporation. In the event the Corporation shall at any time after the Rights Declaration Date declare or pay any dividend on the Common Stock payable in
shares of Common Stock, or effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of
Common Stock) into a greater or lesser number of shares of Common Stock, then in each such case the number of votes per share to which holders of shares of Series A Special Stock were entitled
immediately prior to such event shall be adjusted by multiplying such number by a fraction the numerator of which is the number of shares of Common Stock outstanding immediately after such event and
the denominator of which is the number of shares of Common Stock that were outstanding immediately prior to such event. 

        (B)  Except
as otherwise provided herein, in any other Certificate of Designations creating a series of Special Stock or any similar stock, or by law, the holders of shares
of Series A Special Stock and the holders of shares of Common Stock and any other series or class of stock of the Corporation which 

may
from time to time be accorded such voting right shall vote together as one class on all matters submitted to a vote of stockholders of the Corporation. 

        (C)  (i)    If
at any time dividends on any Series A Special Stock shall be in arrears in an amount equal to six (6) quarterly dividends thereon, the
occurrence of such contingency shall mark the beginning of a period (herein called a "default period") which shall extend until such time when all accrued and unpaid dividends for all previous
quarterly dividend periods and for the current quarterly dividend period on all shares of Series A Special Stock then outstanding shall have been declared and paid or set apart for payment.
During each default period, the holders of Series A Special Stock, voting as a class, shall have the right to elect two (2) Directors. 

        (ii)   During
any default period, such voting right of the holders of Series A Special Stock may be exercised initially at a special meeting called pursuant to
subparagraph (iii) of this Section 3(C) or at any annual meeting of stockholders, and thereafter at annual meetings of stockholders, provided that such voting right shall not be
exercised unless the holders of ten percent (10%) in number of shares of Series A Special Stock outstanding shall be present in person or by proxy. The absence of a quorum of the holders of
Common Stock shall not affect the exercise by the holders of Series A Special Stock of such voting right. At any meeting at which the holders of Series A Special Stock shall exercise
such voting right initially during an existing default period, they shall have the right, voting as a class, to elect Directors to fill such vacancies, if any, in the Board of Directors as may then
exist up to two (2) Directors or, if such right is exercised at an annual meeting, to elect two (2) Directors. If the number which may be so elected at any special meeting does not
amount to the required number, the holders of the Series A Special Stock shall have the right to make such increase in the number of Directors as shall be necessary to permit the election by
them of the required number. After the holders of the Series A Special Stock shall have exercised their right to elect Directors in any default period and during the continuance of such period,
the number of Directors shall not be increased or decreased except by vote of the holders of Series A Special Stock as herein provided or pursuant to the rights of any equity securities ranking
senior to or pari passu with the Series A Special Stock. 

        (iii)  Unless
the holders of Series A Special Stock shall, during an existing default period, have previously exercised their right to elect Directors, the Board of
Directors may order, or any stockholder or stockholders owning in the aggregate not less than ten percent (10%) of the total number of shares of Series A Special Stock outstanding may request,
the calling of a special meeting of the holders of Series A Special Stock, which meeting shall thereupon be called by the President, a Vice President or the Secretary of the Corporation. Notice
of such meeting and of any annual meeting at which holders of Series A Special Stock are entitled to vote pursuant to this paragraph (C)(iii) shall be given to each holder of
record of Series A Special Stock by mailing a copy of such notice to him at his last address as the same appears on the books of the Corporation. Such meeting shall be called for a time not
earlier than 20 days and not later than 60 days after such order or request or in default of the calling of such meeting within 60 days after such order or request, such meeting
may be called on similar notice by any stockholder or stockholders owning in the aggregate not less than ten percent (10%) of the total number of shares of Series A Special Stock outstanding.
Notwithstanding the provisions of this paragraph (C)(iii), no such special meeting shall be called during the period within 60 days immediately preceding the date fixed for the next
annual meeting of the stockholders. 

        (iv)  In
any default period, the holders of Common Stock and other classes of stock of the Corporation if applicable, shall continue to be entitled to elect the whole number
of Directors until the holders of Series A Special Stock shall have exercised their right to elect two (2) Directors voting as a class, after the exercise of which right (x) the
Directors so elected by the holders of Series A Special Stock shall continue in office until their successors shall have been elected by such holders or until the expiration of the default
period, and (y) any vacancy in the Board of Directors may (except as provided in paragraph (C)(iii) of this Section 3) be 

filled
by vote of a majority of the remaining Directors theretofore elected by the holders of the class or classes of stock which elected the Director whose office shall have become vacant. References
in this paragraph (C) to Directors elected by the holders of a particular class or classes of stock shall include Directors elected by such Directors to fill vacancies as provided in
clause (y) of the foregoing sentence. 

        (v)   Immediately
upon the expiration of a default period, (x) the right of the holders of Series A Special Stock as a class to elect Directors shall cease,
(y) the term of any Directors elected by the holders of Series A Special Stock as a class shall terminate, and (z) the number of Directors shall be such number as may be provided
for in the certificate of incorporation or bylaws irrespective of any increase made pursuant to the provisions of paragraph (C)(ii) of this Section 3 (such number being subject,
however, to change thereafter in any manner provided by law or in the certificate of incorporation or bylaws). Any vacancies in the Board of Directors effected by the provisions of clauses
(y) and (z) in the preceding sentence may be filled by a majority of the remaining Directors. 

        (D)  Except
as set forth herein, or as otherwise provided by law, holders of Series A Special Stock shall have no special voting rights and their consent shall not be
required (except to the extent they are entitled to vote with holders of Common Stock and other classes of stock of the Corporation if applicable, as set forth herein) for taking any corporate action. 

        Section 4.    Certain Restrictions.    (A) Subject to paragraph (B), whenever quarterly dividends
or other dividends or distributions payable on the Series A Special Stock as provided in Section 2 are in arrears, thereafter and until all accrued and unpaid dividends and
distributions, whether or not declared, on shares of Series A Special Stock outstanding shall have been paid in full, the Corporation shall not: 

        (i)    declare
or pay dividends on, make any other distributions on, or redeem or purchase or otherwise acquire for consideration any shares of stock ranking junior (either as
to dividends or upon liquidation, dissolution or winding up) to the Series A Special Stock; 

        (ii)   declare
or pay dividends on or make any other distributions on any shares of stock ranking on a parity (either as to dividends or upon liquidation, dissolution or
winding up) with the Series A Special Stock, except dividends paid ratably on the Series A Special Stock and all such parity stock on which
dividends are payable or in arrears in proportion to the total amounts to which the holders of all such shares are then entitled; 

        (iii)  redeem
or purchase or otherwise acquire for consideration shares of any stock ranking on a parity (either as to dividends or upon liquidation, dissolution or winding
up) with the Series A Special Stock, provided that the Corporation may at any time redeem, purchase or otherwise acquire shares of any such parity stock in exchange for shares of any stock of
the Corporation ranking junior (either as to dividends or upon dissolution, liquidation or winding up) to the Series A Special Stock; 

        (iv)  purchase
or otherwise acquire for consideration any shares of Series A Special Stock, or any shares of stock ranking on a parity with the Series A Special
Stock, except in accordance with a purchase offer made in writing or by publication (as determined by the Board of Directors) to all holders of such shares upon such terms as the Board of Directors,
after consideration of the respective annual dividend rates and other relative rights and preferences of the respective series and classes, shall determine in good faith will result in fair and
equitable treatment among the respective series or classes. 

        (B)  The
provisions of paragraph (A) shall not apply to any redemption of Shares of any class or series of stock of the Corporation in accordance with Section E
of Article Fourth, as amended, of the Corporation's Certificate of Incorporation. 

        (C)  The
Corporation shall not permit any subsidiary of the Corporation to purchase or otherwise acquire for consideration any shares of stock of the Corporation unless the
Corporation could, under 

paragraph (A)
of this Section 4, purchase or otherwise acquire such shares at such time and in such manner. 

        Section 5.    Reacquired Shares.    Any shares of Series A Special Stock purchased or otherwise acquired
by the Corporation in any manner whatsoever shall be retired and cancelled promptly after the acquisition thereof. All such shares shall upon their cancellation become authorized but unissued shares
of Special Stock and may be reissued as part of a new series of Special Stock to be created by resolution or resolutions of the Board of Directors, subject to the conditions and restrictions on
issuance set forth herein, in the Corporation's Certificate of Incorporation, or in any other Certificate of Designations creating a series of Special Stock or any similar stock or as otherwise
required by law. 

        Section 6.    Liquidation, Dissolution or Winding Up.    (A) Upon any liquidation (voluntary or
otherwise), dissolution or winding up of the Corporation, no distribution shall be made to the holders of shares of stock ranking junior (either as to dividends or upon liquidation, dissolution or
winding up) to the
Series A Special Stock unless, prior thereto, the holders of shares of Series A Special Stock shall have received $200 per share, plus an amount equal to accrued and unpaid dividends and
distributions thereon, whether or not declared, to the date of such payment (the "Liquidation Preference"). Following the payment of the full amount of
the Liquidation Preference, no additional distributions shall be made to the holders of shares of Series A Special Stock unless, prior thereto, the holders of shares of Common Stock shall have
received an amount per share (the "Common Adjustment") equal to the quotient obtained by dividing (i) the Liquidation Preference by
(ii) 200 (as appropriately adjusted as set forth in subparagraph (C) below to reflect such events as stock splits, stock dividends and recapitalizations with respect to the Common Stock)
(such number in clause (ii), the "Adjustment Number"). Following the payment of the full amount of the Liquidation Preference and the Common
Adjustment in respect of all outstanding shares of Series A Special Stock and Common Stock, respectively, holders of Series A Special Stock and holders of shares of Common Stock shall
receive their ratable and proportionate share of the remaining assets to be distributed in the ratio of the Adjustment Number to 1 with respect to such Series A Special Stock and Common Stock,
on a per share basis, respectively. 

        (B)  In
the event, however, that there are not sufficient assets available to permit payment in full of the Liquidation Preference and the liquidation preferences of all
other series of stock, if any, which rank on a parity with the Series A Special Stock, then such remaining assets shall be distributed ratably to the holders of such parity shares in proportion
to their respective liquidation preferences. In the event, however, that there are not sufficient assets available to permit payment in full of the Common Adjustment, then such remaining assets shall
be distributed ratably to the holders of Common Stock. 

        (C)  In
the event the Corporation shall at any time after the Rights Declaration Date declare or pay any dividend on the Common Stock payable in shares of Common Stock, or
effect a subdivision, combination or consolidation of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater
or lesser number of shares of Common Stock, then in each such case the Adjustment Number in effect immediately prior to such event shall be adjusted by multiplying such Adjustment Number by a
fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that were
outstanding immediately prior to such event. 

        Section 7.    Consolidation, Merger, etc.    In case the Corporation shall enter into any consolidation,
merger, combination or other transaction in which the shares of Common Stock are exchanged for or changed into other stock or securities, cash and/or any other property, then in any such case each
share of Series A Special Stock shall at the same time be similarly exchanged or changed into an amount per share, subject to the provision for adjustment hereinafter set forth, equal to 200
times the aggregate amount of stock, securities, cash and/or any other property (payable in kind), as the case may be, into which or for which each share of Common Stock is changed or exchanged. In
the event the Corporation shall at any time after the Rights Declaration Date declare or pay any dividend on Common Stock payable in shares of Common Stock, or effect a subdivision, combination or 

consolidation
of the outstanding shares of Common Stock (by reclassification or otherwise than by payment of a dividend in shares of Common Stock) into a greater or lesser number of shares of Common
Stock, then in each such case the amount set forth in the preceding sentence with respect to the exchange or change of shares of Series A Special Stock shall be adjusted by multiplying such
amount by a fraction, the numerator of which is the number of shares of Common Stock outstanding immediately after such event and the denominator of which is the number of shares of Common Stock that
were outstanding immediately prior to such event. 

        Section 8.    Redemption.    The shares of Series A Special Stock shall be redeemable only in accordance
with the provisions of Section E of Article Fourth, as amended, of the Corporation's Certificate of Incorporation. 

        Section 9.    Ranking.    The Series A Special Stock shall rank junior to all other series of the
Corporation's Preferred Stock and Special Stock as to the payment of dividends and the distribution of assets, unless the terms of any such series shall provide otherwise. 

        Section 10.    Amendment.    The Certificate of Incorporation of the Corporation shall not be amended in any
manner which would materially alter or change the powers, preferences or special rights of the Series A Special Stock so as to affect them adversely without the affirmative vote of the holders
of a majority or more of the outstanding shares of Series A Special Stock, voting together as a single class. 

        Section 11.    Fractional Shares.    Series A Special Stock may be issued in fractions of a share which,
shall entitle the holder, in proportion to such holder's fractional shares, to exercise voting rights, receive dividends, participate in distributions and to have the benefit of all other rights of
holders of Series A Special Stock. 

        IN
WITNESS WHEREOF, this Certificate of Designations is executed on behalf of the Corporation by                        ,
its                        , this    day
of            , 2005. 

	

 	
 	

 	

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THIRD AMENDMENT TO RIGHTS AGREEMENT

EXHIBIT A

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