Document:

Exhibit 4.6

 

EXECUTION COPY

 

HARRAH’S OPERATING COMPANY, INC.

 

$250,000,000

 

5.625% Senior Notes due 2015

 

ADDITIONAL REGISTRATION RIGHTS AGREEMENT

 

New York, New York

September 28, 2005

 

Citigroup Global Markets
Inc.

Greenwich Capital Markets, Inc.

As Representatives
of the Initial Purchasers

c/o Citigroup Global
Markets Inc.

388 Greenwich Street,
37th Floor

New York, New York  10013

 

Ladies and Gentlemen:

 

Harrah’s Operating Company, Inc., a corporation
organized under the laws of Delaware (the “Company”), proposes to issue
and sell to certain purchasers (the “Initial Purchasers”), upon the
terms set forth in a purchase agreement dated as of September 21, 2005
(the “Additional Purchase Agreement”), its 5.625% Senior Notes due 2015
(the “Notes”) relating to the initial placement of the Notes (the “Initial
Placement”), which Notes are to be guaranteed by Harrah’s Entertainment, Inc.,
a corporation organized under the laws of Delaware (the “Guarantor”).  The Notes are to be issued under an indenture
(the “Original Indenture”) dated as of May 27, 2005 among the
Company, the Guarantor and U.S. Bank National Association, as trustee (the “Trustee”)
as supplemented and amended by a first supplemental indenture dated as of August 19,
2005 among the Company, the Guarantor and the Trustee (the “First
Supplemental Indenture”) and as supplemented by the second supplemental
indenture to be dated as of September 28, 2005 among the Company, the
Guarantor and the Trustee (the “Second Supplemental Indenture” and
together with Original Indenture and the First Supplemental Indenture, the “Indenture”).  To induce the Initial Purchasers to enter
into the Additional Purchase Agreement and to satisfy a condition of your
obligations thereunder, the Company and the Guarantor agree with you for your
benefit and the benefit of the holders from time to time of the Notes
(including the Initial Purchasers) (each a “Holder” and, together, the “Holders”),
as follows:

 

1.                                       Definitions.  Capitalized terms used herein without
definition shall have their respective meanings set forth in the Additional
Purchase Agreement.  As used in this
Agreement, the following capitalized defined terms shall have the following
meanings:

 

“Additional Interest” shall have the meaning
set forth in Section 5 hereto.

 

“Affiliate” of any specified Person shall mean
any other Person that, directly or indirectly, is in control of, is controlled
by, or is under common control with, such specified Person.  For purposes of this definition, control of a
Person shall mean the power, direct or

 

 

indirect, to direct or
cause the direction of the management and policies of such Person whether by
contract or otherwise; and the terms “controlling” and “controlled”
shall have meanings correlative to the foregoing.

 

“Broker-Dealer” shall mean any broker or dealer
registered as such under the Exchange Act.

 

“Business Day” shall mean any day other than a
Saturday, a Sunday or a legal holiday or a day on which banking institutions or
trust companies are authorized or obligated by law to close in New York City.

 

“Commission” shall mean the Securities and
Exchange Commission.

 

“Company” shall have the meaning set forth in
the preamble hereto.

 

“Exchange Act” shall mean the Securities
Exchange Act of 1934, as amended, and the rules and regulations of the
Commission promulgated thereunder.

 

“Exchange Offer Registration Period” shall mean
the 180-day period following the consummation of the Registered Exchange Offer,
exclusive of any period during which any stop order shall be in effect suspending
the effectiveness of the Exchange Offer Registration Statement.

 

“Exchange Offer Registration Statement” shall
mean a registration
statement of the Company on an appropriate form under the Securities Act with
respect to the Registered Exchange Offer, all amendments and supplements to
such registration statement, including post-effective amendments
thereto, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

 

“Exchanging Dealer” shall
mean any Holder
(which may include the Initial Purchaser) that is a Broker-Dealer and elects to
exchange for New Notes any Notes that it acquired for its own account as a result of
market-making activities or other trading activities (but not directly from the
Company or any Affiliate of the Company) for New Notes.

 

“Expiration Date” shall have the meaning set
forth in Section 2(c)(ii) hereof.

 

“Guarantor” shall have the meaning set forth in
the preamble hereto.

 

“Holder” shall have the meaning set forth in the preamble
hereto.

 

“Indenture” shall
have the meaning set forth in the preamble hereto.

 

“Initial Placement” shall
have the meaning set forth in the preamble hereto.

 

“Initial Purchaser” shall have the meaning set
forth in the preamble hereto.

 

“Losses” shall have the meaning set forth in Section 7(d) hereof.

 

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“Majority Holders” shall
mean the Holders of a
majority of the aggregate principal amount of Notes registered under a
Registration Statement.

 

“Managing Underwriters” shall
mean the investment
banker or investment bankers and manager or managers that shall administer an
underwritten offering.

 

“New Notes” shall mean debt securities of the Company,
guaranteed by the Guarantor, identical in all material respects to the Notes (except that the
cash interest and interest rate step-up provisions and the transfer
restrictions shall be modified or eliminated, as appropriate) and to be issued under
the Indenture or the New Notes Indenture.

 

“New Notes Indenture” shall
mean an indenture
between the Company and the New Notes Trustee, identical in all material
respects to the Indenture (except that the cash interest and interest rate
step-up provisions and the transfer restrictions shall be modified or eliminated, as appropriate).

 

“New Notes Trustee” shall
mean a bank or trust
company reasonably satisfactory to the Initial Purchasers, as trustee with respect to the New Notes
under the New Notes Indenture.

 

“Notes” shall have the meaning set forth in the preamble hereto.

 

“Offering Memorandum” shall
have the meaning set forth in the Additional
Purchase Agreement.

 

“Person” shall mean any individual,
partnership, corporation, trust, or unincorporated organization, or a
government or agency or political subdivision thereof.

 

“Prospectus” shall mean the prospectus included in any
Registration Statement (including, without limitation, a prospectus that
discloses information previously omitted from a prospectus filed as part of an
effective registration statement in reliance upon Rule 430A under the
Securities Act), as amended or supplemented by any prospectus supplement, with
respect to the terms of the offering of any portion of the Notes or the New
Notes covered by such Registration Statement, and all amendments and
supplements thereto and all material incorporated by
reference therein.

 

“Additional Purchase Agreement” shall have the
meaning set forth in the preamble hereto.

 

“Registered Exchange Offer” shall
mean the proposed
offer of the Company to issue and deliver to the Holders of the Notes
that are not prohibited by any law or policy of the Commission from
participating in such offer, in exchange for the Notes, a like aggregate principal amount of the New Notes.

 

“Registration Default” shall have the meaning
set forth in Section 5(a) hereof.

 

“Registration Statement” shall
mean any Exchange
Offer Registration Statement or Shelf Registration Statement that covers any of
the Notes or the New Notes pursuant to the

 

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provisions
of this Agreement, any amendments and supplements to such registration statement, including
post-effective amendments (in each case including the Prospectus contained
therein), all exhibits thereto and all material incorporated by reference
therein.

 

“Securities Act” shall mean the Securities Act
of 1933, as amended, and the rules and regulations of the Commission
promulgated thereunder.

 

“Shelf Registration” shall
mean a registration
effected pursuant to Section 3 hereof.

 

“Shelf Registration Period” has the
meaning set forth in Section 3(b)(ii) hereof.

 

“Shelf Registration Statement” shall
mean a “shelf”
registration statement of the Company pursuant to the provisions of Section 3
hereof which covers some or all of the Notes or New Notes, as applicable, on an
appropriate form under Rule 415 under the Securities Act, or any similar rule that
may be adopted by the Commission, amendments and supplements to such
registration statement, including post-effective amendments, in each case
including the Prospectus contained therein, all exhibits thereto and all
material incorporated by reference therein.

 

“Trust Indenture Act” shall mean the Trust
Indenture Act of 1939, as amended and as in effect on the date of the
Indenture.

 

“Trustee” shall mean the trustee with respect to the Notes
under the Indenture.

 

“underwriter” shall
mean any underwriter
of Notes in connection with an offering thereof under a Shelf Registration
Statement.

 

2.                                       Registered Exchange
Offer.  (a)  Unless the Registered
Exchange Offer shall not be permissible under applicable law or Commission
policy, the Company and
the Guarantor shall prepare and,
not later than 90 days following the date of the original
issuance of the Notes (or if such 90th day is not a Business Day, the next
succeeding Business Day), shall file with the Commission the Exchange Offer Registration Statement with respect to
the Registered Exchange Offer.  The
Company shall use its best efforts to cause the Exchange Offer Registration Statement to
become effective under the Securities Act within 180 days of the date
of the original issuance of the Notes (or if such 180th day is not a Business
Day, the next succeeding Business Day).

 

(b)                                 Upon the effectiveness of the Exchange Offer
Registration Statement, the Company and the Guarantor shall promptly commence the Registered Exchange
Offer, it being the objective of such Registered Exchange Offer to enable each
Holder electing to exchange Notes for New Notes (assuming that such Holder is
not an Affiliate of the Company, acquires the New Notes in the ordinary
course of such Holder’s
business, has no arrangements with any Person to participate in the
distribution of the New Notes and is not prohibited by any
law or policy of the Commission from participating in the Registered Exchange
Offer) to trade such New
Notes from and after their receipt without any limitations or restrictions
under the Securities Act and without material restrictions under the securities
laws of a substantial proportion of the several states of the United States.

 

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(c)                                  In connection with the Registered Exchange
Offer, the Company and the Guarantor shall:

 

(i)                                     mail to each Holder a copy of the Prospectus
forming part of the Exchange Offer Registration Statement, together with an
appropriate letter of transmittal and related documents;

 

(ii)                                  keep the Registered Exchange Offer open for not
less than 20 Business Days and not more than 30
Business Days after the date
notice thereof is mailed to the Holders (or, in each case, longer if required by applicable law)
(the “Expiration Date”);

 

(iii)                               use their best efforts to keep the Exchange Offer
Registration Statement continuously effective under the
Securities Act, supplemented and amended as required, under the Securities Act to
ensure that it is available for sales of New Notes by Exchanging Dealers during
the Exchange Offer Registration Period;

 

(iv)                              utilize the services of a depositary for the
Registered Exchange Offer with an address in the Borough of Manhattan
in New York
City, which may be the Trustee, the New Notes Trustee or an Affiliate of either
of them;

 

(v)                                 permit
Holders to withdraw tendered Notes at any time prior to the close of business,
New York time, on the last Business Day on which the Registered Exchange Offer
is open;

 

(vi)                              prior
to effectiveness of the Exchange Offer Registration Statement, provide a
supplemental letter to the Commission (A) stating that the Company and the
Guarantor, are conducting the Registered Exchange Offer in reliance on the
position of the Commission in Exxon Capital Holdings Corporation (pub.
avail. May 13, 1988), Morgan Stanley and Co., Inc. (pub.
avail. June 5, 1991); and (B) including a representation that the
Company and the Guarantor have not entered into any arrangement or
understanding with any Person to distribute the New Notes to be received in the
Registered Exchange Offer and that, to the best of the Company’s and the
Guarantor’s information and belief, each Holder participating in the Registered
Exchange Offer is acquiring the New Notes in the ordinary course of business
and has no arrangement or understanding with any Person to participate in the
distribution of the New Notes; and

 

(vii)                           comply in all respects with all applicable
laws.

 

(d)                                 As soon as practicable after the close of the
Registered Exchange Offer, the Company and the Guarantor shall:

 

(i)                                     accept for exchange all Notes tendered and not
validly withdrawn pursuant to the Registered Exchange Offer;

 

(ii)                                  deliver to the Trustee for cancellation in
accordance with Section 4(s) all Notes so accepted for exchange; and

 

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(iii)                               cause the New Notes Trustee promptly to
authenticate and deliver to each Holder of Notes a
principal amount of New Notes equal to the principal amount of the Notes of such Holder so accepted for exchange.

 

(e)                                  Each
Holder hereby acknowledges and agrees that any Broker-Dealer and any such
Holder using the Registered Exchange Offer to participate in a distribution of
the New Notes (x) could not under Commission policy as in effect on the date of
this Agreement rely on the position of the Commission in Morgan Stanley and
Co., Inc. (pub. avail. June 5, 1991) and Exxon Capital
Holdings Corporation (pub. avail. May 13, 1988), as interpreted in the
Commission’s letter to Shearman & Sterling dated July 2, 1993 and
similar no-action letters; and (y) must comply with the registration and
prospectus delivery requirements of the Securities Act in connection with any
secondary resale transaction and (z) that secondary resale transactions by such
Holder must be covered by an effective registration statement containing the
selling note holder information required by Item 507 or 508, as applicable, of
Regulation S-K under the Securities Act if the resales are of New Notes
obtained by such Holder in exchange for Notes acquired by such Holder directly
from the Company or one of its Affiliates. 
Accordingly, each Holder participating in the Registered Exchange Offer
shall be required to represent to the Company and the Guarantor that, at the
time of the consummation of the Registered Exchange Offer:

 

(i)                                     any
New Notes received by such Holder will be acquired in the ordinary course of
business;

 

(ii)                                  such
Holder will have no arrangement or understanding with any Person to participate
in the distribution of the Notes or the New Notes within the meaning of the
Securities Act; and

 

(iii)                               such
Holder is not an Affiliate of the Company.

 

(f)                                    If any Initial Purchaser determines that it is not eligible to
participate in the Registered Exchange Offer with respect to the exchange of
Notes constituting any portion of an unsold allotment, at the request of such
Initial Purchaser within 20 days after the consummation of
the Exchange Offer, the Company shall
issue and deliver to the Person purchasing Notes registered under a Shelf
Registration Statement as contemplated by Section 3 hereof from such
Initial Purchaser, in exchange for such Notes, a like principal amount of New
Notes.  The Company and
the Guarantor shall use
their best efforts to cause the CUSIP
Service Bureau to issue the same CUSIP number for such New Notes as for New
Notes issued pursuant to the Registered Exchange Offer.

 

3.                                       Shelf Registration.  (a) 
If (i) due
to any change in law or
applicable interpretations thereof by the Commission’s staff, the Company
determines upon advice of its outside counsel that it is not permitted to
effect the Registered Exchange Offer as contemplated by Section 2 hereof;
or (ii) for any other reason the Registered Exchange Offer is not
consummated within 210 days of the date hereof; or (iii) any Initial Purchaser so requests,
within 20 days after the consummation of the Registered Exchange Offer, with respect to Notes that
are not eligible to be exchanged for New Notes in the Registered Exchange Offer
and that are held by it following
consummation of the Registered Exchange Offer; or (iv) any Holder (other than

 

6

 

an
Initial Purchaser) who notifies the Company within 20 days
after the consummation of the Registered Exchange Offer that it is not eligible to participate in the
Registered Exchange Offer so requests; or (v) in the case of any Initial
Purchaser participating in the Registered Exchange Offer, such Initial
Purchaser does not receive freely tradeable New Notes in exchange for Notes
constituting any portion of an unsold allotment (it being understood that
(x) the requirement
that an Initial Purchaser deliver a Prospectus containing the information
required by Item 507 or 508 of Regulation S-K under the Securities Act in
connection with sales of New Notes acquired in exchange for such Notes shall not
result in such New
Notes being not “freely tradeable”; and (y) the requirement that an Exchanging Dealer
deliver a Prospectus in connection with sales of New Notes acquired in the
Registered Exchange Offer in exchange for Notes acquired as a result of
market-making activities or other trading activities shall not result in such
New Notes being not “freely tradeable”), the Company and
the Guarantor shall effect a Shelf Registration Statement in accordance with
subsection (b) below.

 

(b)                                 (i)                                     The Company and the
Guarantor shall as promptly as
practicable (but in no event more than 30 days after so required or requested
pursuant to this Section 3), file with the Commission and thereafter shall
use its best efforts to cause to be declared effective under the Securities Act
a Shelf Registration Statement relating to the offer and sale of the Notes or
the New Notes, as applicable, by the Holders thereof from time to time in accordance with the
methods of distribution elected by such Holders and set forth in such Shelf
Registration Statement; provided, however, that no Holder (other than
an Initial Purchaser) shall be entitled to have the Notes held by it covered by
such Shelf Registration Statement unless such Holder agrees in writing to be
bound by all of the provisions of this Agreement applicable to such Holder; and
provided  further, that with respect to New Notes received by an Initial Purchaser in
exchange for Notes constituting any portion of an unsold allotment, the Company
and the Guarantor may, if permitted by current interpretations by the Commission’s
staff, file a post-effective amendment to the Exchange Offer Registration Statement
containing the information required by Item 507 or 508 of
Regulation S-K, as applicable, in
satisfaction of its obligations under this subsection with respect
thereto, and any such Exchange Offer Registration Statement, as so amended,
shall be referred to herein as, and governed by the provisions herein
applicable to, a Shelf Registration Statement.

 

(ii)                                  The Company and the
Guarantor shall use their best efforts to keep the Shelf Registration
Statement continuously effective, supplemented and amended
as required by the Securities Act, in order to permit the Prospectus forming part thereof to be usable
by Holders for a period of two years from the date the Shelf Registration
Statement is declared effective by the Commission or such shorter period that will
terminate when all the Notes or New Notes, as applicable, covered by the Shelf
Registration Statement have been sold pursuant to the Shelf Registration
Statement (in any such case, such period being called the “Shelf
Registration Period”).  The Company and
the Guarantor shall be deemed not
to have used their best efforts to keep the Shelf Registration Statement effective
during the requisite period if it voluntarily takes any action that would
result in Holders of Notes covered thereby not being able to offer and sell
such Notes during that period, unless (A) such action is required by
applicable law; or (B) such action is taken by the Company and
the Guarantor in good faith and
for valid business reasons (not including avoidance of the Company’s and
the Guarantor’s obligations
hereunder), including the acquisition or divestiture of assets, so long as the

 

7

 

Company and the Guarantor promptly thereafter comply with the requirements of Section 4(k)
hereof, if applicable.

 

(iii)                               The
Company shall cause the Shelf Registration Statement and the related Prospectus
and any amendment or supplement thereto, as of the effective date of the Shelf
Registration Statement or such amendment or supplement, (A) to comply in
all material respects with the applicable requirements of the Securities Act
and the rules and regulations of the Commission; and (B) not to
contain any untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary in order to make the statements
therein, in the light of the circumstances under which they were made, not
misleading.

 

4.                                       Additional
Registration
Procedures.  In connection with any Shelf
Registration Statement and, to the extent applicable, any Exchange Offer
Registration Statement, the following provisions shall apply.

 

(a)                                  The Company and the
Guarantor shall:

 

(i)                                     furnish to you, not less
than five Business Days prior to the filing thereof with the Commission, a copy of any
Exchange Offer Registration Statement and any Shelf Registration Statement, and each
amendment thereof and each amendment or supplement, if any, to the Prospectus
included therein (including all documents incorporated by
reference therein after the initial filing) and shall use their best efforts to reflect in each such document,
when so filed with the Commission, such comments as you reasonably propose;

 

(ii)                                  include the information set forth in Annex A
hereto on the facing page of the Exchange Offer Registration Statement,
in Annex B hereto in the forepart of the Exchange Offer Registration Statement
in a section setting forth details of the Exchange Offer,
in Annex C hereto in
the underwriting or plan of distribution section of the Prospectus contained
in the Exchange Offer
Registration Statement, and in Annex D hereto in the letter of transmittal
delivered pursuant to the Registered Exchange Offer;

 

(iii)                               if requested by an Initial Purchaser, include
the information required by Item 507 or 508 of Regulation S-K, as applicable,
in the Prospectus contained in the Exchange Offer Registration Statement; and

 

(iv)                              in
the case of a Shelf Registration Statement, include the names of the Holders
that propose to sell Notes pursuant to the Shelf Registration Statement as
selling Note holders.

 

(b)                                 The Company and the
Guarantor shall ensure that:

 

(i)                                     any Registration Statement and any amendment
thereto and any Prospectus forming part thereof and any amendment or supplement
thereto complies in all material respects with the Securities Act and the rules and
regulations thereunder; and

 

8

 

(ii)                                  any Registration Statement and any amendment
thereto does not, when it becomes effective, contain an untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading.

 

(c)                                  The Company and the
Guarantor shall advise you,
the Holders of Notes covered by any Shelf Registration Statement
and any Exchanging
Dealer under any Exchange Offer Registration Statement
that has provided in
writing to the Company or the Guarantor a telephone or facsimile number and address
for notices, and, if requested by you or any such Holder or Exchanging Dealer, shall
confirm such advice
in writing (which notice pursuant to clauses (ii)-(v) hereof
shall be accompanied by an instruction to suspend the use of the Prospectus
until the Company and the Guarantor shall have remedied the basis for such
suspension):

 

(i)                                     when a Registration Statement and any amendment
thereto has been filed with the Commission and when the Registration Statement
or any post-effective amendment thereto has become effective;

 

(ii)                                  of any request by the Commission for any
amendment or
supplement to the Registration Statement or the Prospectus or for additional
information;

 

(iii)                               of the issuance by the Commission of any stop
order suspending the effectiveness of the Registration Statement or the
initiation of any proceedings for that purpose;

 

(iv)                              of the receipt by the Company and
the Guarantor of any notification
with respect to the suspension of the qualification of the Notes included
therein for sale in any jurisdiction or the initiation of any proceeding for
such purpose; and

 

(v)                                 of the happening of any event that requires any
change in the Registration Statement or the Prospectus so that, as of such
date, the statements therein are not misleading and do not omit to state a
material fact required to be stated therein or necessary to make the statements
therein (in the case of the Prospectus, in the light of the circumstances under which they
were made) not misleading.

 

(d)                                 The Company and the
Guarantor shall use their best efforts to obtain the withdrawal of any
order suspending the effectiveness of any Registration Statement or
the qualification of the Notes therein for sale in any jurisdiction at the earliest possible time.

 

(e)                                  The Company and the
Guarantor shall furnish to
each Holder of Notes covered by any Shelf Registration Statement, without
charge, at least one copy of such Shelf Registration Statement and any
post-effective amendment thereto, including all material
incorporated therein by reference, and, if the Holder so requests in writing, all exhibits thereto
(including exhibits
incorporated by
reference therein).

 

(f)                                    The Company and the
Guarantor shall, during the
Shelf Registration Period, deliver to each Holder of Notes covered
by any Shelf
Registration Statement, without

 

9

 

charge,
as many copies of the Prospectus (including each preliminary Prospectus)
included in such Shelf Registration Statement and any amendment or supplement
thereto as such Holder may reasonably request.  The Company and the Guarantor consent, subject to the
provisions of this Agreement, to the use of the Prospectus or any amendment or supplement thereto
by each of the selling Holders of Notes in connection with the offering and
sale of the Notes covered by the Prospectus, or any amendment or supplement thereto,
included in the Shelf Registration Statement.

 

(g)                                 The Company and the
Guarantor shall furnish to
each Exchanging Dealer which so requests, without charge, at least one copy of
the Exchange Offer Registration Statement and any post-effective amendment
thereto, including all material incorporated by reference
therein, and, if the
Exchanging Dealer so requests in writing, all exhibits thereto
(including exhibits
incorporated by reference therein).

 

(h)                                 The Company and the
Guarantor shall promptly
deliver to each Initial Purchaser, each Exchanging Dealer and each
other Person required to deliver a Prospectus during the Exchange Offer
Registration Period, without charge, as many copies of the Prospectus included in such
Exchange Offer Registration Statement and any amendment or supplement thereto
as any such Person may reasonably request.  The Company and the Guarantor, subject to the
provisions of this Agreement, consent to the use of the Prospectus or any amendment or supplement
thereto by any Initial Purchaser, any Exchanging  Dealer and any such other Person that may
be required to deliver a
Prospectus following the Registered Exchange Offer in connection with
the offering and sale of the New Notes covered by the Prospectus, or any
amendment or supplement thereto, included in the Exchange Offer Registration Statement.

 

(i)                                     Prior to the Registered Exchange Offer or any
other offering of Notes pursuant to any Registration Statement, the Company and
the Guarantor shall arrange, if
necessary, for the qualification of the Notes or the New Notes for sale under
the laws of such jurisdictions as any Holder  shall reasonably request and will
maintain such qualification in effect so long as required; provided that in no event shall the Company and the
Guarantor be obligated to qualify to do business in any jurisdiction
where it is not then so qualified or to take any action
that would subject it to
service of process in suits, other than those arising out
of the Initial Placement, the Registered Exchange Offer or any offering
pursuant to a Shelf Registration Statement, in any such jurisdiction where it is not then so subject.

 

(j)                                     The Company and the
Guarantor shall cooperate with
the Holders of Notes to facilitate the timely preparation and delivery of
certificates representing New Notes or Notes to be issued or sold pursuant to any Registration Statement
free of any restrictive legends and in such denominations and registered in
such names as Holders may request.

 

(k)                                  Upon the occurrence of any event contemplated
by subsections (c)(ii) through (v) above, the Company and the
Guarantor shall promptly
prepare a post-effective amendment to the applicable Registration Statement or
an amendment or supplement to the related Prospectus or file any other required
document so that, as thereafter delivered to Initial Purchasers of the Notes
included therein, the Prospectus will not include an untrue statement of a
material fact or omit to state any material fact necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading. 
In such circumstances,

 

10

 

the period of
effectiveness of the Exchange Offer Registration Statement provided for in Section 2
and the Shelf Registration Statement provided for in Section 3(b) shall
each be extended by the number of days from and including the date of the
giving of a notice of suspension pursuant to Section 4(c) to and
including the date when the Initial Purchasers, the Holders of the Notes and
any known Exchanging Dealer shall have received such amended or supplemented
Prospectus pursuant to this Section.

 

(l)                                     Not later than the effective date of any
Registration Statement, the Company and the Guarantor shall provide a CUSIP number for the Notes or the
New Notes, as the
case may be, registered under such Registration Statement and provide the Trustee with printed certificates for such Notes
or New Notes, in a form eligible for deposit with The Depository Trust Company.

 

(m)                               The Company and the
Guarantor shall comply with
all applicable rules and regulations of the Commission and shall make
generally available to its Note holders as soon as practicable after the
effective date of the applicable Registration Statement an earnings statement
satisfying the provisions of Section 11(a) of the Securities Act.

 

(n)                                 The Company and the
Guarantor shall cause the
Indenture or the New Notes Indenture, as the case may be, to be qualified under
the Trust Indenture Act in a timely manner.

 

(o)                                 The Company and the
Guarantor may require each
Holder of Notes to be sold pursuant to any Shelf Registration Statement to
furnish to the Company and the Guarantor such information regarding the Holder and the distribution of such Notes
or New Notes as the Company and
the Guarantor may from time to time
reasonably require for inclusion in such Registration Statement.
 The  Company and the Guarantor
may exclude from such Shelf Registration Statement the Notes of any Holder that
unreasonably fails to furnish such information within a reasonable time after
receiving such request.

 

(p)                                 In
the case of any Shelf Registration Statement, the Company and the
Guarantor shall enter into
such and take all other appropriate actions (including if
requested an underwriting agreement in customary form) in order to expedite or facilitate the
registration or the disposition of the Notes, and in connection therewith, if
an underwriting agreement is entered into, cause the same to contain
indemnification provisions and procedures no less favorable than those set
forth in Section 7 (or such other provisions and procedures acceptable to the Majority
Holders and the Managing Underwriters, if any, with respect to all parties to
be indemnified pursuant to Section 7).

 

(q)                                 In the case of any Shelf Registration
Statement, the Company and the Guarantor shall:

 

(i)                                     make reasonably available for inspection by the
Holders of Notes to be registered thereunder, any underwriter participating in
any disposition pursuant to such Registration Statement, and any attorney,
accountant or other agent retained by the Holders or any such underwriter, all relevant financial and other records,
pertinent

 

11

 

corporate documents and properties of the Company,
the Guarantor and their respective
subsidiaries;

 

(ii)                                  cause the Company’s officers, directors and
employees to supply all relevant information reasonably requested by the
Holders or any such underwriter, attorney, accountant or agent in connection
with any such Registration Statement as is customary for similar due diligence
examinations; provided, however, that any information that is
designated in writing by the Company, in good faith, as confidential at the
time of delivery of such information shall be kept confidential by the Holders
or any such underwriter, attorney, accountant or agent, unless such disclosure
is made in connection with a court proceeding or required by law, or such
information becomes available to the public generally or through a third party
without an accompanying obligation of confidentiality;  provided,
further, that the foregoing due diligence examination shall be
coordinated on behalf of the Initial Purchasers by Citigroup Global Markets
Inc. and RBS Greenwich Capital and on behalf of other parties by one counsel
designated by and on behalf of such other parties;

 

(iii)                               if
requested by any Holder, make such representations and warranties to the Holders of Notes
registered thereunder and the underwriters, if any, in form, substance and
scope as are customarily made by issuers to underwriters in primary
underwritten offerings and covering matters including, but not limited to,
those set forth in the Additional Purchase Agreement;

 

(iv)                              if
requested by any Holder, obtain opinions of counsel to the Company and
the Guarantor and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to the Managing Underwriters, if any) addressed to each selling
Holder and the underwriters, if any, in form, substance and scope as are
customarily addressed to underwriters in primary underwritten offerings and
covering such other matters as may be reasonably requested by such Holders and
underwriters;

 

(v)                                 if
requested by any Holder, obtain “cold comfort” letters and updates thereof from the independent
certified public accountants of the Company (and, if necessary, any other
independent certified public accountants of any subsidiary of the Company or of
any business acquired by the Company for which financial statements and
financial data are, or are required to be, included in the Registration
Statement), addressed to each selling Holder of Notes registered thereunder and
the underwriters, if any, in customary form and covering matters of the type
customarily covered in “cold comfort” letters in connection with primary
underwritten offerings; and

 

(vi)                              deliver such documents and certificates as may
be reasonably requested by the Majority Holders and the Managing Underwriters,
if any, including those to evidence compliance with Section 4(k) and with
any customary conditions contained in the underwriting agreement or other
agreement entered into by the Company.

 

12

 

The actions set forth in clauses (iii), (iv), (v) and
(vi) of this Section shall be performed at (A) the effectiveness
of such Registration Statement and each post-effective amendment thereto; and (B) each closing under any
underwriting or similar agreement as and to the extent required thereunder.

 

(r)                                    In the case of any Exchange Offer Registration
Statement, the Company and the Guarantor shall:

 

(i)                                     make reasonably available for inspection by any
Initial Purchaser, and any attorney, accountant or other agent retained by such
Initial Purchaser, all relevant financial and other records, pertinent corporate
documents and properties of the Company, the Guarantor, and their respective subsidiaries;

 

(ii)                                  cause the Company’s officers, directors and
employees to supply all relevant information reasonably requested by such
Initial Purchaser or any such attorney, accountant or agent in connection with
any such Registration Statement as is customary for similar due diligence
examinations; provided, however, that any information that is
designated in writing by the Company, in good faith, as confidential at the
time of delivery of such information shall be kept confidential by such Initial
Purchaser or any such attorney, accountant or agent, unless such disclosure is
made in connection with a court proceeding or required by law, or such
information becomes available to the public generally or through a third party
without an accompanying obligation of confidentiality;  provided,
further, that the foregoing due diligence examination shall be
coordinated on behalf of the Initial Purchasers by Citigroup Global Markets
Inc. and RBS Greenwich Capital and on behalf of other parties by one counsel
designated by and on behalf of such other parties;

 

(iii)                               if
requested by an Initial Purchaser, make such representations and warranties to such Initial Purchaser,
in form, substance and scope as are customarily made by issuers to underwriters
in primary underwritten offerings and covering matters including, but not
limited to, those set forth in the Additional Purchase Agreement;

 

(iv)                              if
requested by an Initial Purchaser, obtain opinions of counsel to the Company and
the Guarantor and updates thereof
(which counsel and opinions (in form, scope and substance) shall be reasonably
satisfactory to such Initial Purchaser and its counsel, addressed to such
Initial Purchaser, in form, substance and scope, as are
customarily addressed to underwriters in primary underwritten offerings and covering such other matters as may be
reasonably requested by such Initial Purchaser or its counsel;

 

(v)                                 if
requested by an Initial Purchaser, obtain “cold comfort” letters and updates thereof from the
independent certified public accountants of the Company (and, if necessary, any
other independent certified public accountants of any subsidiary of the Company
or of any business acquired by the Company for which financial statements and
financial data are, or are required to be, included in the Registration
Statement), addressed to such Initial Purchaser, in customary form and covering
matters of the type customarily covered in “cold comfort” letters in connection
with primary underwritten

 

13

 

offerings, or if requested by such Initial Purchaser
or its counsel in lieu of a “cold comfort” letter, an agreed-upon procedures
letter under Statement on Auditing Standards No. 35, covering matters
requested by such Initial Purchaser or its counsel; and

 

(vi)                              deliver such documents and certificates as may
be reasonably requested by such Initial Purchaser or its counsel, including
those to evidence compliance with Section 4(k) and with conditions
customarily contained in underwriting agreements.

 

The foregoing actions set forth in clauses
(iii), (iv), (v), and (vi) of this Section shall be performed at the
close of the Registered Exchange Offer and the effective date of any
post-effective amendment to the Exchange Offer Registration Statement.

 

(s)                                  If
a Registered Exchange Offer is to be consummated, upon delivery of the Notes by
Holders to the Company (or to such other Person as directed by the Company) in
exchange for the New Notes, the Company shall mark, or caused to be marked, on
the Notes so exchanged that such Notes are being canceled in exchange for the
New Notes.  In no event shall the Notes
be marked as paid or otherwise satisfied.

 

(t)                                    The
Company will use its best efforts (i) if the Notes have been rated prior
to the initial sale of such Notes by one or more nationally recognized
statistical rating agencies, to confirm that a rating (which need not be the
same rating from each such agency) will apply to the Notes or the New Notes, as
the case may be, covered by a Registration Statement; or (ii) if the Notes
were not previously rated, to cause the Notes covered by a Registration
Statement to be rated with at least one nationally recognized statistical
rating agency, if so requested by Majority Holders with respect to the related
Registration Statement or by any Managing Underwriters.

 

(u)                                 In
the case of any Shelf Registration Statement, if any Broker-Dealer shall
underwrite any Notes or participate as a member of an underwriting syndicate or
selling group or “assist in the distribution” (within the meaning of the Rules of
Fair Practice and the By-Laws of the National Association of Securities Dealers, Inc.)
thereof, whether as a Holder of such Notes or as an underwriter, a placement or
sales agent or a broker or dealer in respect thereof, or otherwise, assist such
Broker-Dealer in complying with the requirements of such Rules and
By-Laws, including, without limitation, by:

 

(i)                                     if
such Rules or By-Laws shall so require, engaging a “qualified independent
underwriter” (as defined in such Rules) to participate in the preparation of
the Registration Statement, to exercise usual standards of due diligence with
respect thereto and, if any portion of the offering contemplated by such
Registration Statement is an underwritten offering or is made through a
placement or sales agent, to recommend the yield of such Notes;

 

(ii)                                  indemnifying
any such qualified independent underwriter to the extent of the indemnification
of underwriters provided in Section 7 hereof; and

 

(iii)                               providing
such information to such Broker-Dealer as may be required in order for such
Broker-Dealer to comply with the requirements of such Rules.

 

14

 

(v)                                 The
Company and the Guarantor shall use their best efforts to take all other steps
necessary to effect the registration of the Notes or the New Notes, as the case
may be, covered by a Registration Statement.

 

5.                                       Additional
Interest

 

(a)                                  The
parties hereto agree that the Holders of Notes or New Notes, as the case may
be, will suffer damages if the Company and the Guarantor fail to perform their
obligations under Section 2 or 3 hereof and that it would not be feasible
to ascertain the extent of such damages. 
Accordingly, in the event that:

 

(i)                                     neither
the Exchange Offer Registration Statement nor the Shelf Registration Statement
have been filed on or prior to the 90th day following the original
issuance of the Notes;

 

(ii)                                  neither
the Exchange Offer Registration Statement nor the Shelf Registration Statement
have been declared effective on or prior to the 180th day following
the original issuance of the Notes;

 

(iii)                               neither
the Exchange Offer has been completed nor the Shelf Registration Statement has
been declared effective on or prior to the 210th day following the
original issuance of the Notes; or

 

(iv)                              either
the Exchange Offer Registration Statement or Shelf Registration Statement cease
to be effective or usable in connection with the resales of the Notes or New
Notes during a period in which it is required to be effective hereunder without
being succeeded immediately by any additional Registration Statement or
post-effective amendment covering the Notes or the New Notes, as the case may
be, which has been filed and declared effective;

 

(each such event referred to in the foregoing clauses (i) through
(iv), a “Registration Default”), then additional interest (“Additional
Interest”) will accrue on the principal amount of the Notes and the New
Notes, respectively (in addition to the stated interest on the Notes and the
New Notes), from and including the date on which any Registration Default first
occurs and while any such Registration Default has occurred and is continuing,
to but excluding the date on which all filings, declarations of effectiveness
and consummations, as the case may be, have been achieved which, if achieved on
a timely basis, would have prevented the occurrence of all of the then existing
Registration Defaults.  Additional
Interest will accrue at a rate of 0.25% per annum during the 90-day period
immediately following such first occurrence of a Registration Default and while
any such Registration Default has occurred and is continuing, and shall
increase by 0.25% per annum at the end of each subsequent 90-day period up to a
maximum of 0.50% per annum with respect to all Registration Defaults, until the
date on which all of the filings, declarations of effectiveness and
consummations referred to in the preceding sentence have been achieved, on which
date the interest rate on the Notes or the New Notes, respectively, will revert
to the interest rate originally borne by such notes.

 

(b)                                 The
Company and the Guarantor shall notify the Trustee under the Indenture (or the
trustee under any New Notes Indenture) immediately upon the happening of

 

15

 

each and every
Registration Default.  The Company and
the Guarantor shall pay the Additional Interest due on the Notes or New Notes,
as the case may be, by depositing with the Trustee (which shall not be the
Company for these purposes) for the Notes or the New Notes, in trust, for the
benefit of the Holders thereof, prior to 11:00 A.M. on the next interest
payment date specified in the Indenture (or such New Notes Indenture), sums
sufficient to pay the Additional Interest then due.  The Additional Interest due shall be payable
on each interest payment date specified by the Indenture (or such New Notes
Indenture) to the record holders entitled to receive the interest payment to be
made on such date.

 

(c)                                  The
parties hereto agree that the Additional Interest provided for in this Section 5
constitutes a reasonable estimate of the damages that will be suffered by
Holders of Notes or New Notes by reason of the happening of any Registration
Default.

 

(d)                                 All
of the Company’s and the Guarantor’s obligations set forth in this Section 5
shall survive the termination of this Agreement.

 

6.                                       Registration Expenses.  The
Company and the Guarantor shall be jointly and severally responsible to bear all expenses incurred in connection with
the performance of its obligations under Sections 2, 3 and 4 hereof and,
in the event of any Shelf Registration Statement, will reimburse the Holders
for the reasonable fees and disbursements of one firm or counsel designated by
the Majority Holders to act as counsel for the Holders in connection therewith,
and, in the case of any Exchange Offer Registration Statement, will reimburse
the Initial Purchasers for the reasonable fees and disbursements of one
firm or counsel designated as counsel acting in connection therewith.

 

7.                                       Indemnification and
Contribution.  (a) 
The Company and
the Guarantor, jointly and severally, agree to indemnify and hold harmless each Holder of Notes or
New Notes, as the case may be, covered by any Registration Statement (including each Initial Purchaser and, with
respect to any Prospectus delivery as contemplated in Section 4(h) hereof,
each Exchanging Dealer), the directors, officers, employees and agents of each
such Holder and each Person who controls any such Holder within the meaning of
either the Securities Act or the Exchange Act against any and all losses,
claims, damages or liabilities, joint or several, to which they or any of them
may become subject under the Securities Act, the Exchange Act or other federal
or state statutory law or regulation, at common law or otherwise, insofar as
such losses, claims, damages or liabilities (or actions in respect thereof)
arise out of or are based upon any untrue statement or alleged untrue statement
of a material fact contained in the Registration Statement as originally filed
or in any amendment thereof, or in any preliminary Prospectus or the
Prospectus, or in any
amendment thereof or supplement thereto, or arise out of or are based upon the
omission or alleged omission to state therein a material fact required to be
stated therein or necessary to make the statements therein not misleading, and
agrees to reimburse each such indemnified party, as incurred, for any legal or
other expenses reasonably incurred by them in connection with investigating or
defending any such loss, claim, damage, liability or action; provided, however,
that the Company and the Guarantor will not be liable in any case to the extent
that any such loss, claim, damage or liability arises out of or is based upon
any such untrue statement or alleged untrue statement or omission or alleged
omission made therein in reliance upon and in conformity with written
information furnished to the Company and the Guarantor by or on behalf of any such Holder
specifically for inclusion therein; provided  further,
that with respect to any

 

16

 

untrue statement
or omission of material fact made in any Registration Statement, the indemnity
agreement contained in this Section 7(a) shall not inure to the
benefit of any Holder from whom the person asserting any such losses, claims,
damages, liabilities or expenses purchased Notes or New Notes concerned, or any
person controlling such Holders, if a copy of the Prospectus (as then amended
or supplemented if the Company and the Guarantor shall have furnished any
amendments or supplements thereto) was not sent or given by or on behalf of
such Holder to such person, if required by laws so to have been delivered, at
or prior to the written confirmation of the sale of the New Notes or the Notes
to such person, and if the Prospectus (as so amended or supplemented) would
have cured the defect giving rise to such losses, claims, damages, liabilities
or expenses, unless such failure is the result of noncompliance by the Company
and the Guarantor with Section 4(e)-(h) hereof.  This indemnity agreement will be in addition to any liability which
the Company and the Guarantor may otherwise have.

 

The Company and the
Guarantor, jointly and severally, also agree to indemnify or contribute as provided in Section 7(d) to Losses of each underwriter of Notes
or New Notes, as the case may be, registered under a Shelf Registration
Statement, their directors, officers, employees or
agents and each Person who
controls such underwriter on substantially the same basis as that of the
indemnification of the Initial Purchasers and the selling Holders provided in this Section 7(a) and shall, if requested by any Holder,
enter into an underwriting agreement reflecting such agreement, as provided in Section 4(p)
hereof.

 

(b)                                 Each Holder of notes covered by a Registration
Statement (including each Initial Purchaser and, with respect to any Prospectus
delivery as contemplated in Section 4(h) hereof, each Exchanging
Dealer) severally agrees to indemnify and hold harmless the Company
and the Guarantor, and their respective directors and officers who signs such Registration Statement and each
Person who controls the Company and the Guarantor within the meaning of either the Securities
Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company and
the Guarantor to each such Holder,
but only with reference to written information relating to such Holder furnished
to the Company and the Guarantor by or on behalf of such Holder specifically
for inclusion in the documents referred to in the foregoing indemnity.  This indemnity agreement will be in addition
to any liability which any such Holder may otherwise have.

 

(c)                                  Promptly after receipt by an indemnified party
under this Section 7 or notice of the commencement of any action, such
indemnified party will, if a claim in respect thereof is to be made against the
indemnifying party under this Section, notify the indemnifying party in writing
of the commencement thereof; but the failure so to notify the indemnifying
party (i) will not relieve it from liability under paragraph (a) or
(b) above unless and to the extent it did not otherwise learn of such
action and such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses; and (ii) will not, in any event, relieve
the indemnifying party from any obligations to any indemnified party other than
the indemnification obligation provided in paragraph (a) or (b) above.  The indemnifying party shall be entitled to
appoint counsel of the indemnifying party’s choice at the indemnifying party’s
expense to represent the indemnified party in any action for which
indemnification is sought (in which case the indemnifying party shall not
thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be
satisfactory to the indemnified party. 
Notwithstanding the

 

17

 

indemnifying
party’s election to appoint counsel to represent the indemnified party in an
action, the indemnified party shall have the right to employ separate counsel
(including local counsel), and the indemnifying party shall bear the reasonable
fees, costs and expenses of such separate counsel if (i) the use of
counsel chosen by the indemnifying party to represent the indemnified party
would present such counsel with a conflict of interest; (ii) the actual or
potential defendants in, or targets of, any such action include both the
indemnified party and the indemnifying party and the indemnified party shall
have reasonably concluded that there may be legal defenses available to it
and/or other indemnified parties which are different from or additional to
those available to the indemnifying party; (iii) the indemnifying party
shall not have employed counsel  satisfactory to the indemnified party to
represent the indemnified party within a reasonable time after notice of the
institution of such action; or (iv) the indemnifying party shall
authorize the indemnified party to employ separate counsel at the expense of
the indemnifying party.  An indemnifying
party will not, without the prior written consent (which
consent shall not be unreasonably withheld) of the indemnified parties, settle or compromise or consent to the
entry of any judgment with respect to any pending or threatened claim, action,
suit or proceeding in respect of which indemnification or contribution may be
sought hereunder (whether or not the indemnified parties are actual or
potential parties to such claim or action) unless such settlement, compromise
or consent includes an unconditional release of each indemnified party from all
liability arising out of such claim, action, suit or proceeding.

 

(d)                                 In the event that the indemnity provided in
paragraph (a) or (b) of this Section is unavailable to or
insufficient to hold harmless an indemnified party for any reason, then each
applicable indemnifying party shall have a joint and several obligation to
contribute to the aggregate losses, claims, damages and liabilities (including
legal or other expenses reasonably incurred in connection with investigating or
defending same) (collectively “Losses”) to which such indemnified party
may be subject in such proportion as is appropriate to reflect the relative
benefits received by such indemnifying party, on the one hand, and such
indemnified party, on the other hand, from the Initial Placement and the
Registration Statement which resulted in such Losses; provided, however,
that in no case shall any Initial Purchaser or any subsequent Holder of any
Note or New Note be responsible, in the aggregate, for any amount in excess of
the purchase discount or commission applicable to such Note, or in the case of
a New Note, applicable to the Note that was exchangeable into such New Note,
nor shall any underwriter be responsible for any amount in excess of the
underwriting discount or commission applicable to the notes purchased by such
underwriter under the Registration Statement which resulted in such
Losses.  If the allocation provided by
the immediately preceding sentence is unavailable for any reason, the
indemnifying party and the indemnified party shall contribute in such
proportion as is appropriate to reflect not only such relative benefits but
also the relative fault of such indemnifying party, on the one hand, and such
indemnified party, on the other hand, in connection with the statements or
omissions which resulted in such Losses as well as any other relevant equitable
considerations.  Benefits received by the
Company and the Guarantor shall be deemed to be equal to the total net proceeds from the
Initial Placement (before deducting expenses). 
Benefits received by the Initial Purchasers shall be deemed to be equal to the total
purchase discounts and commissions, and benefits received by any other Holders
shall be deemed to be equal to the value of receiving Notes or New Notes, as
applicable, registered under the Securities Act.  Benefits received by any underwriter shall be
deemed to be equal to the total underwriting discounts and commissions, as set
forth on the cover page of the Prospectus forming a part of the Registration
Statement which resulted in such Losses. 
Relative fault shall

 

18

 

be
determined by reference to, among other things, whether any alleged untrue
statement or omission relates to information provided by the indemnifying
party, on the one hand, or by the indemnified party, on the other hand,
the intent of the parties and their relative knowledge, access to information
and opportunity to correct or prevent such untrue statement or omission.  The
parties agree that it would not be just and equitable if contribution were
determined by pro rata allocation (even if the Holders
were treated as one entity for such purpose) or any other method of allocation which does not take account of the
equitable considerations referred to above. 
Notwithstanding the provisions of this paragraph (d), no Person
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the Securities Act) shall be entitled to contribution from any Person who was
not guilty of such fraudulent misrepresentation.  For purposes of this Section, each Person who
controls a Holder within the meaning of either the Securities Act or the
Exchange Act and each director, officer, employee and agent of such Holder
shall have the same rights to contribution as such Holder, and each Person who
controls the Company and the Guarantor within the meaning of either the Securities
Act or the Exchange Act, each officer of the Company and
the Guarantor who shall have
signed the Registration Statement and each director of the Company and
the Guarantor shall have the same
rights to contribution as the Company, subject in each case to the applicable
terms and conditions of this paragraph (d).

 

(e)                                  The provisions of this Section will remain
in full force and effect, regardless of any investigation made by or on behalf
of any Holder or the Company or the Guarantor or any of the officers, directors or
controlling Persons referred to in this Section hereof, and will survive the sale
by a Holder of Notes covered by a Registration Statement.

 

8.                                       Underwritten
Registrations.  (a)  If any of
the Notes or New Notes, as the case may be, covered by any Shelf Registration
Statement are to be sold in an underwritten offering, the Managing Underwriters
shall be selected by the Majority Holders.

 

(b)                                 No
Person may participate in any underwritten offering pursuant to any Shelf
Registration Statement, unless such Person (i) agrees to sell such Person’s
Notes or New Notes, as the case may be, on the basis reasonably provided in any
underwriting arrangements approved by the Persons entitled hereunder to approve
such arrangements; and (ii) completes and executes all questionnaires,
powers of attorney, indemnities, underwriting agreements and other documents
reasonably required under the terms of such underwriting arrangements.

 

9.                                       No Inconsistent
Agreements.  Neither
the Company nor
the Guarantor has, as of the date
hereof, entered into, nor shall they, on or after the date hereof, enter into, any
agreement with respect to Notes of the Company that is inconsistent with the rights granted to
the Holders herein or otherwise conflicts with the provisions hereof.

 

10.                                 Amendments and
Waivers.  The provisions of this
Agreement, including the provisions of this sentence, may not be amended,
qualified, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, unless the Company has obtained the
written consent of the Majority Holders (or, after the consummation of any Registered
Exchange Offer in
accordance with Section 2 hereof, of New Notes); provided that,
with respect to any matter that directly or indirectly affects the rights of
any Initial Purchaser  hereunder, the Company shall obtain the written consent of each such
Initial Purchaser

 

19

 

against
which such amendment, qualification, supplement, waiver or consent is to be
effective.  Notwithstanding the foregoing
(except the foregoing proviso), a waiver or consent to departure from the
provisions hereof with respect to a matter that relates exclusively to the
rights of Holders whose Notes or New Notes, as the case
may be, are being sold
pursuant to a Registration Statement and that does not directly or indirectly
affect the rights of other Holders may be given by the Majority Holders, determined on the basis of Notes or New Notes, as the case
may be, being sold rather
than registered under such Registration Statement.

 

11.                                 Notices.  All
notices and other communications provided for or permitted hereunder shall be
made in writing by hand-delivery, first-class mail, telex, telecopier or air
courier guaranteeing overnight delivery:

 

(a)                                  if to a Holder, at the most current address
given by such holder to the Company in accordance with the provisions of this Section 11, which address initially is, with respect to
each Holder, the address of such Holder maintained by the Registrar under the
Indenture, with a copy in like manner to Citigroup Global Markets Inc. and RBS
Greenwich Capital;

 

(b)                                 if to you, initially at the address set forth
in the Additional Purchase Agreement; and

 

(c)                                  if to the Company or the
Guarantor, initially at its
address:

 

Harrah’s
Entertainment, Inc.

Harrah’s Operating Company, Inc.

One Harrah’s Court

Las Vegas, Nevada  89119

 

	
  Attn:

  	
   

  	
  Treasurer

  
	
  With a copy to:

  	
   

  	
  General Counsel

  

 

All such notices and communications shall be
deemed to have been duly given when received.

 

The Initial Purchasers or the Company or the
Guarantor by notice to the
other parties may designate additional or different addresses for subsequent
notices or communications.

 

12.                                 Successors.  This
Agreement shall inure to the benefit of and be binding upon the successors and
assigns of each of the parties, including, without the need for an express
assignment or any consent by the Company and the Guarantor thereto, subsequent Holders of Notes and
the New Notes.  The Company and the
Guarantor hereby agree to
extend the benefits of this Agreement to any Holder of Notes and
the New Notes, and any such Holder may specifically enforce
the provisions of this Agreement as if an original party hereto.

 

13.                                 Counterparts.  This
agreement may be in signed counterparts, each of which shall an original
and all of which together shall constitute one and the same agreement.

 

20

 

14.                                 Headings.  The
headings used herein are for convenience only and shall not affect the construction hereof.

 

15.                                 Applicable Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York applicable to contracts made and to be performed in the State
of New York.

 

16.                                 Severability.  In the
event that any one of more of the provisions contained herein, or the
application thereof in any circumstances, is held invalid, illegal or
unenforceable in any respect for any reason, the validity, legality and
enforceability of any such provision in every other respect and of the
remaining provisions hereof shall not be in any way impaired or affected
thereby, it being intended that all of the rights and privileges of the parties
shall be enforceable to the fullest extent permitted by law.

 

17.                                 Notes Held by the
Company, etc.  Whenever the consent or
approval of Holders of a specified percentage of principal amount of Notes or
New Notes is required hereunder, Notes or New Notes, as applicable, held by the
Company or its Affiliates (other than subsequent Holders of Notes or New Notes
if such subsequent Holders are deemed to be Affiliates solely by reason of
their holdings of such Notes or New Notes) shall not be counted in determining
whether such consent or approval was given by the Holders of such required
percentage.

 

21

 

If the foregoing is in accordance with your understanding
of our agreement, please sign and return to us the enclosed duplicate hereof,
whereupon this letter and your acceptance shall represent a binding agreement
among the Company, the Guarantor and the Initial Purchasers.

 

	
   

  	
  Very truly
  yours,

  
	
   

  	
   

  
	
   

  	
  HARRAH’S OPERATING
  COMPANY, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan S.
  Halkyard

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jonathan S.
  Halkyard

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  HARRAH’S
  ENTERTAINMENT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan S.
  Halkyard

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Jonathan S.
  Halkyard

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice
  President and Treasurer

  
					

 

22

 

The foregoing Agreement is hereby confirmed and

accepted as of the
date first above written.

 

 

	
  By:

  	
  CITIGROUP GLOBAL
  MARKETS INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Gerard L. Eastman, Jr.

  	
   

  
	
   

  	
  Name:

  	
  Gerard L. Eastman, Jr.

  
	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  GREENWICH
  CAPITAL MARKETS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Robert W. Mitchell

  	
   

  
	
   

  	
  Name:

  	
  Robert W. Mitchell

  
	
   

  	
  Title:

  	
  Managing Director

  
				

 

23

 

ANNEX A

 

Each Broker-Dealer that receives New Notes for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Notes.  The Letter of Transmittal states that by so
acknowledging and by delivering a prospectus, a Broker-Dealer will not be
deemed to admit that it is an “underwriter” within the meaning of the
Securities Act.  This Prospectus, as it
may be amended or supplemented from time to time, may be used by a
Broker-Dealer in connection with resales of New Notes received in exchange for
Notes where such Notes were acquired by such Broker-Dealer as a result of
market-making activities or other trading activities.  The Company and the Guarantor have agreed
that, starting on the Expiration Date (as defined herein) and ending on the
close of business 180 days after the Expiration Date, they will make this
Prospectus available to any Broker-Dealer for use in connection with any such
resale.  See “Plan of Distribution.”

 

A-1

 

ANNEX B

 

Each Broker-Dealer that receives New Notes for its own
account in exchange for Notes, where such Notes were acquired by such
Broker-Dealer as a result of market-making activities or other trading
activities, must acknowledge that it will deliver a prospectus in connection
with any resale of such New Notes.  See “Plan
of Distribution.”

 

B-1

 

ANNEX C

 

PLAN OF
DISTRIBUTION

 

Each Broker-Dealer that receives New Notes for its own
account pursuant to the Exchange Offer must acknowledge that it will deliver a
prospectus in connection with any resale of such New Notes.  This Prospectus, as it may be amended or
supplemented from time to time, may be used by a Broker-Dealer in connection
with resales of New Notes received in exchange for Notes where such Notes were
acquired as a result of market-making activities or other trading
activities.  The Company and the
Guarantor have agreed that, starting on the Expiration Date and ending on the
close of business 180 days after the Expiration Date, it will make this
Prospectus, as amended or supplemented, available to any Broker-Dealer for use
in connection with any such resale.  In
addition, until [•] all dealers effecting transactions
in the New Notes may be required to deliver a prospectus.

 

The Company and the Guarantor will not receive any
proceeds from any sale of New Notes by brokers-dealers.  New Notes received by Broker-Dealers for
their own account pursuant to the Exchange Offer may be sold from time to time
in one or more transactions in the over-the-counter market, in negotiated
transactions, through the writing of options on the New Notes or a combination
of such methods of resale, at market prices prevailing at the time of resale,
at prices related to such prevailing market prices or negotiated prices.  Any such resale may be made directly to
purchasers or to or through brokers or dealers who may receive compensation in
the form of commissions or concessions from any such Broker-Dealer and/or the
purchasers of any such New Notes.  Any
Broker-Dealer that resells New Notes that were received by it for its own
account pursuant to the Exchange Offer and any broker or dealer that participates
in a distribution of such New Notes may be deemed to be an “underwriter” within
the meaning of the Securities Act and any profit of any such resale of New
Notes and any commissions or concessions received by any such Persons may be
deemed to be underwriting compensation under the Securities Act.  The Letter of Transmittal states that by
acknowledging that it will deliver and by delivering a prospectus, a
Broker-Dealer will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act.

 

For a period of 180 days after
the Expiration Date, the Company and the Guarantor will promptly send
additional copies of this Prospectus and any amendment or supplement to this
Prospectus to any Broker-Dealer that requests such documents in the Letter of
Transmittal.  The Company and the
Guarantor have agreed to pay all expenses incident to the Exchange Offer
(including the expenses of one counsel for the holder of the Notes) other than
commissions or concessions of any brokers or dealers and will indemnify the
holders of the Notes (including any Broker-Dealers) against certain
liabilities, including liabilities under the Securities Act.

 

[If applicable, add information
required by Regulation S-K Items 507 and/or 508.]

 

C-1

 

ANNEX D

 

Rider A

 

CHECK HERE IF YOU ARE A BROKER-DEALER AND WISH TO
RECEIVE 10 ADDITIONAL COPIES OF THE PROSPECTUS AND 10 COPIES OF ANY AMENDMENTS
OR SUPPLEMENTS THERETO.

 

	
  Name:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Rider B

 

If the undersigned is not a Broker-Dealer, the
undersigned represents that it acquired the New Notes in the ordinary course of
its business, it is not engaged  in, and
does not intend to engage in, a distribution of New Notes and it has no
arrangements or understandings with any Person to participate in a distribution
of the New Notes.  If the undersigned is
a Broker-Dealer that will receive New Notes for its own account in exchange for
Notes, it represents that the Notes to be exchanged for New Notes were acquired
by it as a result of market-making activities or other trading activities and
acknowledges that it will deliver a prospectus in connection with any resale of
such New Notes; however, by so acknowledging and by delivering a prospectus,
the undersigned will not be deemed to admit that it is an “underwriter” within
the meaning of the Securities Act.

 

D-1Exhibit 10.1

 

FIRST AMENDMENT TO LOAN AGREEMENT

 

THIS FIRST AMENDMENT TO LOAN AGREEMENT (this “Amendment”)
is made and entered into as of the 22nd day of September, 2005 by and among WELLS FARGO BANK, NATIONAL ASSOCIATION, a national banking
association (the “Bank”), FOSSIL PARTNERS, L.P. (the “Borrower”), FOSSIL, INC. (the “Company”), FOSSIL
INTERMEDIATE, INC. (“Fossil Intermediate”), FOSSIL TRUST (“Fossil Trust”), FOSSIL
STORES I, INC. (“Fossil I”), INTERMEDIATE LEASING, INC. (“Intermediate Leasing”), ARROW MERCHANDISING, INC. (“Arrow
Merchandising”) and FOSSIL HOLDINGS, LLC
(“Fossil Holdings”) (the Company, Fossil Intermediate, Fossil Trust,
Fossil I, Intermediate Leasing, Arrow Merchandising and Fossil Holdings are
sometimes referred to herein individually as a “Guarantor” and
collectively as the “Guarantors”).

 

RECITALS

 

WHEREAS, the Bank, the Borrower and the Guarantors are
parties to that certain Loan Agreement, dated as of September 23, 2004 (as
amended, modified or supplemented, from time to time, the “Agreement”);

 

WHEREAS, the Bank, the Borrower and the Guarantors
desire to amend the Agreement and the other Loan Documents as herein set forth.

 

NOW, THEREFORE, in consideration of the premises
herein contained and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties, intending to be
legally bound, agree as follows:

 

ARTICLE I

Definitions

 

1.01                           Capitalized
terms used in this Amendment are defined in the Agreement, as amended hereby,
unless otherwise stated.

 

ARTICLE II

Amendments

 

2.01                           Amendment
to Section 1.  Effective as of
the date hereof, Section 1 of the Agreement is hereby deleted in
its entirety and replaced with the following:

 

“1.                                 The
Line of Credit.  Subject to, and upon
the terms, conditions, covenants and agreements contained herein and in the
Revolving Note (as hereinafter defined), the Bank agrees to loan the Borrower,
at any time, and from

 

 

time to time prior to the maturity of the Revolving
Note, such amounts as the Borrower may request, up to but not exceeding at any
time, the aggregate principal amount of $100,000,000 (the “Total Commitment”);
within such limits and during such period, the Borrower may borrow, repay, and
re-borrow hereunder (the “Line of Credit”).  All loans under the Line of Credit shall be
evidenced by the a Revolving Line of Credit Note (as amended, modified or
supplemented from time to time, the “Revolving Note”), substantially in
form and substance satisfactory to the Bank, executed by the Borrower and payable
to the order of the Bank, and bearing interest upon the terms provided therein
(but in no event to exceed the maximum non-usurious interest rate permitted by
law).  The principal of, and interest on,
the Revolving Note shall be due and payable as provided in the Revolving
Note.  Notation by the Bank on its
records shall constitute prima facie evidence of the amount and date of any
payment or borrowing thereunder.

 

(a)                                  Renewals
and Extensions.  All renewals,
extensions, modifications and rearrangements of the Revolving Note, if any,
shall be deemed to be made pursuant to this Agreement, and accordingly, shall
be subject to the terms and provisions hereof, and the Borrower and the
Guarantors shall be deemed to have ratified, as of such renewal, extension,
modification or rearrangement date, all of the representations, covenants and
agreements herein set forth.

 

(b)                                 Letters
of Credit.  Advances under the Line
of Credit may be utilized by the Borrower to fund drawings under any
Documentary or Stand-by Letters of Credit (as hereinafter defined) that are
issued by the Bank for the account of the Borrower.  In the event the Borrower fails to reimburse
the Bank for any such drawings, the Bank may, in its own discretion, advance
funds under the Line of Credit to fund such drawings and all such advances
shall be added to the principal amount of the Revolving Note.”

 

2.02                           Amendment
to Section 2.  Effective as of
the date hereof, the reference to “$50,000,000” contained in Section 2
of the Agreement is hereby deleted and “$100,000,000” is substituted in lieu
thereof.

 

2.03                           Amendment
to Section 12(m).  Effective as
of the date hereof, Section 12(m) of the Agreement is hereby deleted in
its entirety and replaced with the following:

 

“(m)                         Domestic/Foreign
Subsidiary Guarantees/Stock Pledges. 
(i) cause each majority-owned subsidiary of the Company or the
Borrower which is incorporated or formed in the United States of America and
which owns or holds tangible assets having an aggregate book value of
$50,000,000 or more (each, a “Significant Domestic Subsidiary”) to
execute a Guaranty Agreement in the form of Exhibit A attached
hereto, and (ii) pledge to the Bank, as collateral security for the
Borrower’s obligations to the Bank hereunder, a security interest in sixty-five
percent (65%) of the stock of each majority owned subsidiary of the Company

 

2

 

which is incorporated or formed outside of the United
States and which owns or holds tangible assets having an aggregate book value
of $50,000,000 or more (each a “Significant Foreign Subsidiary”)  by executing a Stock Pledge Agreement in the
form of Exhibit B attached hereto.”

 

2.04                           Amendment
to Section 13(b).  Effective as
of the date hereof, Section 13(b) of the Agreement is hereby
deleted in its entirety and replaced with the following:

 

“(b)                           Liabilities.  Assume, guarantee, endorse, suffer to exist
or otherwise become liable upon, or agree to purchase or otherwise furnish
funds for the payment of, the obligations of any person, firm or corporation,
except for

 

(i)                                     the
obligations hereunder;

 

(ii)                                  endorsement
of negotiable instruments for deposit or collection or similar transactions in
the ordinary course of business;

 

(iii)                               obligations under
operating leases;

 

(iv)                              obligations
for indebtedness secured by purchase money liens not to exceed $10,000,000 in
the aggregate at any time outstanding;

 

(v)                                 obligations
under foreign currency exchange contracts, so long as such obligations are
incurred in the ordinary course of its business;

 

(vi)                              indebtedness
to shareholders, officers or partners, so long as such indebtedness is
unsecured, fully subordinated to the indebtedness owing to the Bank in form and
substance satisfactory to the Bank, and evidenced by debt instruments
satisfactory in form and substance to the Bank;

 

(vii)                           obligations under guaranties
securing indebtedness not to exceed $10,000,000 in the aggregate at any time
outstanding;

 

(viii)                        any other unsecured
indebtedness owing by Borrower to The Trade Bank, a joint-venture of the Bank
and HSCB; and

 

(ix)                                any
other unsecured indebtedness which is subordinated to the indebtedness owing to
the Bank pursuant to a written subordination agreement in form and substance
satisfactory to the Bank.”

 

2.05                           Amendment
to Section 14(a).  Effective as
of the date hereof, Section 14(a) of the Agreement is hereby
deleted in its entirety and replaced with the following:

 

“(a)                            Quick
Ratio.  Maintain, at all times, a
ratio of (i) (A) cash, plus (B) cash equivalents, plus
(C) account receivables to (ii) current liabilities of not less than
1.0 to 1.0.  Cash, cash equivalents,
accounts receivable and current liabilities

 

3

 

are defined according to generally accepted accounting principles, with
the exception that current liabilities will include all indebtedness of the
Borrower under the Revolving Note and all Documentary or Stand-by Letters of
Credit.”

 

2.06                           Amendment
to Section 14(c).  Effective as
of the date hereof, Section 14(c) of the Agreement is hereby
deleted in its entirety and replaced with the following:

 

“(c)                            Fixed
Charge Coverage Ratio.  Maintain a
Fixed Charge Ratio of not less than 2.0 to 1.0 throughout the term hereof.  “Fixed Charge Ratio” shall be defined
as net profit after taxes, plus depreciation, plus amortization, plus
or minus net distributions divided by the current portion of long term
debt, plus twenty-five percent of the outstanding amount of the Line of
Credit, plus capitalized lease obligations.  The Fixed Charge Ratio shall be determined as
of the end of the immediately preceding fiscal quarter for the twelve-month
period ended as of the end of such fiscal quarter for which the determination
is being made (i.e., on a rolling four-quarter basis).”

 

ARTICLE III

Conditions Precedent

 

3.01                           Conditions
to Effectiveness.  The effectiveness
of this Amendment is subject to the satisfaction of the following conditions
precedent, unless specifically waived in writing by the Bank:

 

(a)                                  The
Bank shall have received the following documents, each in form and substance
satisfactory to the Bank and its counsel:

 

(i)                                     This
Amendment, duly executed by the Borrower and the Guarantors; and

 

(ii)                                  An
Amended and Restated Revolving Line of Credit Note in the form of Exhibit A
to this Amendment (hereinafter, the “Revolving Note”), duly executed by
the Borrower;

 

(b)                                 There
shall have been no material adverse change in the business or financial
condition of the Borrower or any Guarantor;

 

(c)                                  There
shall be no material adverse litigation, either pending or threatened, against
the Borrower or any Guarantor that could reasonably be expected to have a
material adverse effect on the Borrower or such Guarantor;

 

(d)                                 The
Bank shall have received and be satisfied the results of its credit
investigation with respect to certain executives of Borrower;

 

4

 

(e)                                  The
representations and warranties contained herein and in the Agreement and the
other Loan Documents, as each is amended hereby, shall be true and correct as
of the date hereof, as if made on the date hereof;

 

(f)                                    No
default or Event of Default shall have occurred and be continuing, unless such
default or Event of Default has been specifically waived in writing by the
Bank;

 

(g)                                 All
corporate proceedings taken in connection with the transactions contemplated by
this Amendment and all documents, instruments and other legal matters incident
thereto shall be satisfactory to the Bank and its legal counsel; and

 

(g)                                 The
Bank shall have received from the Company or the Borrower, as appropriate, all
fees and expenses (if any) required to be paid to the Bank pursuant to the
Agreement, as amended hereby.

 

ARTICLE IV

No Waiver

 

4.01                           Nothing
contained herein shall be construed as a waiver by the Bank of any covenant or
provision of the Agreement, the other Loan Documents, this Amendment, or of any
other contract or instrument between the Borrower and/or the Guarantors and the
Bank, and the failure of the Bank at any time or times hereafter to require
strict performance by the Borrower and/or any Guarantor of any provision
thereof shall not waive, affect or diminish any right of the Bank to thereafter
demand strict compliance therewith.  The
Bank hereby reserves all rights granted under the Agreement, the other Loan
Documents, this Amendment and any other contract or instrument between the
Borrower and/or the Guarantors and the Bank.

 

ARTICLE V

Ratifications, Representations and Warranties,
Covenants

 

5.01                           General
Ratifications.  The terms and
provisions set forth in this Amendment shall modify and supersede all
inconsistent terms and provisions set forth in the Agreement and the other Loan
Documents, and, except as expressly modified and superseded by this Amendment,
the terms and provisions of the Agreement and the other Loan Documents are
ratified and confirmed and shall continue in full force and effect.  The parties hereto agree that the Agreement
and the other Loan Documents, as amended hereby, shall continue to be legal,
valid, binding and enforceable in accordance with their respective terms.

 

5.02                           Ratification
of Guaranties.  Each of the
Guarantors hereby acknowledges and consents to all of the terms and conditions
of this Amendment and the Revolving Note and hereby ratifies and confirms the
Guaranty Agreement to which it is a party to or for the benefit of the
Bank.  Each of the Guarantors hereby
represents and acknowledges that it has no claims, counterclaims, offsets,
credits or defenses to the Loan Documents or the performance of its obligations
thereunder.  Furthermore, each Guarantor
agrees that nothing contained in this

 

5

 

Amendment or the Revolving Note shall adversely affect any right or
remedy of the Bank under the Guaranty Agreement to which such Guarantor is a
party.  Each Guarantor hereby agrees that
with respect to the Guaranty Agreement to which it is a party, all references
in such Guaranty Agreement to the “Guaranteed Obligations” shall include,
without limitation, the obligations of Borrower to Bank under the Agreement, as
amended hereby, and under the Revolving Note, as amended hereby.  Finally, each of the Guarantors hereby
represents and acknowledges that the execution and delivery of this Amendment
and the other Loan Documents executed in connection herewith shall in no way
change or modify its obligations as a guarantor, debtor, pledgor, assignor,
obligor and/or grantor under its respective Guaranty Agreement (except as
specifically provided in this Section 5.02) and shall not
constitute a waiver by the Bank of any of the Bank’s rights against such
Guarantor.

 

5.03                           Ratification
of Security Interests.  The Company
hereby agrees that the Stock Pledge Agreement is hereby expressly amended such
that the definition of “Secured Obligations” contained therein includes,
without limitation, all indebtedness and other obligations of Borrower now or
hereafter existing hereunder the Agreement, as amended hereby, the Revolving
Note and the other Loan Documents, as amended hereby.  Furthermore, the Company hereby ratifies and
reaffirms its obligations under the Stock Pledge Agreement, as the same is
amended hereby, and represents and acknowledges that the Stock Pledge Agreement
is not subject to any claims, counterclaims, defenses or offsets.  Finally, the Company hereby represents and
acknowledges that the execution and delivery of this Amendment and the other
Loan Documents executed in connection herewith shall in no way change or modify
its obligations as a debtor, pledgor, assignor, obligor and/or grantor under
the Stock Pledge Agreement (except as specifically provided this Section 5.03)
and shall not constitute a waiver by the Bank of any of the Bank’s rights
against the Company.

 

5.04                           Representations
and Warranties.  The Borrower and
each of the Guarantors hereby jointly and severally represent and warrant to
the Bank that (a) the execution, delivery and performance of this
Amendment and any and all other Loan Documents executed and/or delivered in
connection herewith have been duly authorized by all requisite corporate, partnership
or trust proceedings, as appropriate, and will not contravene, or constitute a
default under, any provision of applicable law or regulation or of the
Agreement of Limited Partnership, Articles of Incorporation, By-Laws or Trust
Agreement, as applicable, of the Borrower or any Guarantor, or of any mortgage,
indenture, contract, agreement or other instrument, or any judgment, order or
decree, binding upon the Borrower or any Guarantor; (b) the
representations and warranties contained in the Agreement and the other Loan
Documents, as amended hereby, are true and correct on and as of the date hereof
and on and as of the date of execution hereof as though made on and as of each
such date; (c) no default or Event of Default under the Agreement, as
amended hereby, has occurred and is continuing, unless such default or Event of
Default has been specifically waived in writing by the Bank; and (d) the
Borrower and the Guarantors are in full compliance with all covenants and
agreements contained in the Agreement and the other Loan Documents, as amended
hereby.

 

6

 

ARTICLE VI

Miscellaneous Provisions

 

6.01                           Survival
of Representations and Warranties. 
All representations and warranties made in the Agreement or any other
Loan Documents, including, without limitation, any document furnished in
connection with this Amendment, shall survive the execution and delivery of
this Amendment and the other Loan Documents to be executed in connection
herewith, and no investigation by the Bank or any closing shall affect the
representations and warranties or the right of the Bank to rely upon them.

 

6.02                           Reference
to Agreement.  Each of the Agreement
and the other Loan Documents, and any and all other agreements, documents or
instruments now or hereafter executed and delivered pursuant to the terms
hereof or pursuant to the terms of the Agreement, as amended hereby, are hereby
amended so that any reference in the Agreement and such other Loan Documents to
the Agreement, shall mean a reference to the Agreement, as amended hereby.

 

6.03                           Expenses
of the Bank.  As provided in the
Agreement, the Borrower agrees to pay on demand all reasonable costs and
expenses incurred by the Bank in connection with the preparation, negotiation,
and execution of this Amendment and the other Loan Documents executed pursuant
hereto and any and all amendments, modifications, and supplements hereto or
thereto, including, without limitation, the costs and fees of the Bank’s legal
counsel, and all costs and expenses incurred by the Bank in connection with the
enforcement or preservation of any rights under the Agreement or any other Loan
Document, in each case as amended hereby, including, without, limitation, the
costs and fees of the Bank’s legal counsel.

 

6.04                           Severability.  Any provision of this Amendment held by a
court of competent jurisdiction to be invalid or unenforceable shall not impair
or invalidate the remainder of this Amendment and the effect thereof shall be
confined to the provision so held to be invalid or unenforceable.

 

6.05                           Successors
and Assigns.  This Amendment is
binding upon and shall inure to the benefit of the Borrower, the Guarantors and
the Bank and their respective successors and assigns.

 

6.06                           Counterparts.  This Amendment may be executed in one or more
counterparts, each of which when so executed shall be deemed to be an original,
but all of which when taken together shall constitute one and the same
instrument.

 

6.07                           Effect
of Waiver.  No consent or waiver,
express or implied, by the Bank to or for any breach of or deviation from any
covenant or condition by the Borrower or any Guarantor shall be deemed a
consent to or waiver of any other breach of the same or any other covenant,
condition or duty.

 

6.08                           Headings.  The headings, captions and arrangements used
in this Amendment are for convenience only and shall not affect the
interpretation of this Amendment.

 

7

 

6.09                           Applicable
Law.  THIS AMENDMENT AND ALL OTHER
AGREEMENTS EXECUTED PURSUANT HERETO SHALL BE DEEMED TO HAVE BEEN MADE AND TO BE
PERFORMABLE IN AND SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF TEXAS.

 

6.10                           Final
Agreement.  THE AGREEMENT AND THE
OTHER LOAN DOCUMENTS, EACH AS AMENDED HEREBY, REPRESENT THE ENTIRE EXPRESSION
OF THE PARTIES WITH RESPECT TO THE SUBJECT MATTER HEREOF ON THE DATE THIS
AMENDMENT IS EXECUTED.  THE AGREEMENT AND
THE OTHER LOAN DOCUMENTS, AS AMENDED HEREBY, MAY NOT BE CONTRADICTED BY
EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES.  THERE ARE NO UNWRITTEN ORAL
AGREEMENTS BETWEEN THE PARTIES.  NO
MODIFICATION, RESCISSION, WAIVER, RELEASE OR AMENDMENT OF ANY PROVISION OF THIS
AMENDMENT SHALL BE MADE, EXCEPT BY A WRITTEN AGREEMENT SIGNED BY THE BORROWER,
THE GUARANTORS AND THE BANK.

 

6.11                           AGREEMENT FOR BINDING ARBITRATION.  The parties agree to be bound by the terms
and provisions of the Bank’s current Arbitration Program which is incorporated
herein by reference and is acknowledged as received by the parties pursuant to
which any and all disputes shall be resolved by mandatory binding arbitration
upon the request of any party.

 

 

[Remainder of page intentionally left blank.]

 

8

 

IN WITNESS WHEREOF, this Amendment has been executed
and is effective as of the date first above-written.

 

	
   

  	
  “BANK”

  
	
   

  	
   

  
	
   

  	
  WELLS FARGO BANK,

  
	
   

  	
  NATIONAL ASSSOCIATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Susan K. Nugent

  
	
   

  	
   

  	
  Susan K. Nugent,

  
	
   

  	
   

  	
  Assistant Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  “BORROWER”

  
	
   

  	
   

  	
   

  
	
   

  	
  FOSSIL PARTNERS, L.P.

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  Fossil, Inc., its
  general partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: 

  	
    /s/ Randy S. Kercho

  
	
   

  	
   

  	
  Randy S. Kercho,

  
	
   

  	
   

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  “GUARANTORS”

  
	
   

  	
   

  	
   

  
	
   

  	
  FOSSIL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Randy S. Kercho

  
	
   

  	
   

  	
  Randy S. Kercho,

  
	
   

  	
   

  	
  Executive Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FOSSIL INTERMEDIATE, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Randy S. Hyne

  
	
   

  	
  Name:

  	
  Randy S. Hyne

  
	
   

  	
  Title: 

  	
  Secretary

  
								

 

 

	
   

  	
  FOSSIL TRUST

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Randy S. Hyne

  
	
   

  	
  Name:

  	
  Randy S. Hyne

  
	
   

  	
  Title:

  	
   Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOSSIL STORES I, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mike L. Kovar

  
	
   

  	
  Mike L. Kovar, Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  INTERMEDIATE LEASING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mike L. Kovar

  
	
   

  	
  Mike L. Kovar, Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ARROW MERCHANDISING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mike L. Kovar

  
	
   

  	
  Mike L. Kovar, Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  FOSSIL HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mike L. Kovar

  
	
   

  	
  Mike L. Kovar, Manager

  
								

 

Exhibit:

 

A - Revolving Note

 

 

EXHIBIT A

 

FORM OF REVOLVING NOTE

 

(See Attached)

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00091-of-00352.parquet"}]]