Document:

Exhibit 10(g)

June 9,
2006

Mr. Ronald D. Ordway

Mr. Michael D. Boyd

Video Display Corporation

1868 Tucker Industrial Road

Tucker, GA  30084

	
  Re:

  	
   

  	
  Video Display Corporation Senior Secured Debt
  Facilities

  

 

Dear Mr. Ordway & Mr. Boyd:

Regions Bank (“Bank”) is
pleased to extend this commitment to make the loans (“Loans”) described in this
letter to the Borrower identified below. The Loans will be made on the terms
and conditions set forth in this letter and any attachments to this letter. Bank’s
commitment set forth in this letter shall be referred to as the “Commitment”
and this letter shall be referred to as the “Commitment Letter.”

General
Terms

 

	
  Borrower

  	
   

  	
  Video Display Corporation and all existing and future
  subsidiaries.

  
	
   

  	
   

  	
   

  
	
  Loan Amounts

  	
   

  	
  Facility 1 - $8,500,000

  
	
   

  	
   

  	
  Facility 2 - $1,750,000

  
	
   

  	
   

  	
  Facility 3 - $1,500,000

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  As provided below, this Commitment is conditioned
  upon Borrower obtaining a commitment from RBC Centura Bank (“RBC”) for loans
  in the same amounts provided above and on the same terms generally as set
  forth herein (the “RBC Loans”).

  
	
   

  	
   

  	
   

  
	
  Type of Loan

  	
   

  	
  Facility 1 — This is a Revolving
  Line of Credit Facility.

  
	
   

  	
   

  	
  Facility 2 - This is a Revolving
  Line of Credit Facility.

  
	
   

  	
   

  	
  Facility 3 - This is an Equipment
  Term Loan Facility

  
	
   

  	
   

  	
   

  
	
  Maturity

  	
   

  	
  Facility 1 — This Facility shall
  mature twenty-four (24) months from Closing, renewing annually for additional
  twelve (12) month terms.

  
	
   

  	
   

  	
  Facility 2 - This Facility shall
  mature twenty -four (24) months from Closing, renewing annually for
  additional twelve (12) month terms.

  
	
   

  	
   

  	
  Facility 3 - This Facility shall
  mature sixty (60) months from Closing.

  
	
   

  	
   

  	
   

  
	
  Purpose of Loans

  	
   

  	
  The Loans will be used to refinance all existing
  indebtedness of Borrower, except the Subordinated Shareholder Note. The
  availability under the Facility 1 and Facility 2 will also be used to finance
  working capital and for general corporate purposes.

  
	
   

  	
   

  	
   

  
	
  Interest Rate

  	
   

  	
  Interest on each Facility shall accrue at the RBC
  Centura 30-Day LIBOR plus the Applicable Margin as outlined in the
  Pricing Grid below, and shall be payable monthly via auto-debit.  

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tier

  	
  Fixed Charge Coverage Ratio

  	
  Applicable Margin 

  
	
   

  	
   

  	
  I

  	
  Greater than 1.35, but less than 1.50

  	
  2.10% 

  

 

 1
 

 

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  II

  	
  Equal to/greater than 1.50 but less than 1.75

  	
  1.85% 

  
	
   

  	
   

  	
  III

  	
  Equal to/greater than 1.75

  	
  1.60% 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Borrower may enter into interest rate swaps with
  Bank, subject to the terms and conditions set forth under an ISDA Agreement,
  to convert floating rate term borrowing to an effective fixed rate. The swaps
  would be cross-collateralized, and be subject to cross-default, with the
  Loans. 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Required documentation prior to
  swap transaction includes: Execution of an ISDA Agreement between Borrower
  and Bank, delivery of certified copies of all resolutions required to
  authorize the signing, delivery and performance of swap agreement by Borrower

  
	
   

  	
   

  	
   

  
	
  Underwriting Fee

  	
   

  	
  Borrower shall pay to Bank a fee for the Loans equal
  to twenty-five (25) basis points (0.25%) of the initial amount of the Loans,
  which fee shall be fully earned upon execution hereof and shall be payable at
  the Closing of the Loans (or, if the Loans are not closed for any reason,
  then upon termination or expiration hereof).

  
	
   

  	
   

  	
   

  
	
  Personal Guarantors

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Unused Fee

  	
   

  	
  None

  
	
   

  	
   

  	
   

  
	
  Payment Terms

  	
   

  	
  Facility 1 - Borrower shall make
  monthly payments of all accrued interest, with all outstanding principal and
  accrued interest due at maturity.

  
	
   

  	
   

  	
  Facility 2 - Borrower shall make
  monthly payments of all accrued interest, with all outstanding principal and
  accrued interest due at maturity.

  
	
   

  	
   

  	
  Facility 3 - Borrower shall make
  monthly payments of principal based on a five (5) year commercial
  amortization ($25,000 each), plus all accrued interest, with all outstanding
  principal plus accrued interest due at maturity.

  
	
   

  	
   

  	
   

  
	
  Collateral

  	
   

  	
  The Loans will be secured by a valid, enforceable
  and perfected first priority lien and security interest in all tangible and
  intangible assets owned by Borrower, including, but not limited to, all
  inventory, accounts receivable, equipment, patents, trademarks and general
  intangibles. Borrower will also provide the Bank with a negative pledge
  agreement with a springing clause on all real property owned by Borrower, and
  assignments of rents and leases for said properties. All Loans will be
  cross-collateralized and cross defaulted.

  
	
   

  	
   

  	
   

  

Reporting Requirements and
Operating Covenants

	
  Financial Reporting

  	
   

  	
  So long as the Borrower is indebted to the Bank or
  any portion of the Loans remains outstanding, the Borrower shall submit to
  the Bank the following financial information (all in accordance with GAAP and
  to be satisfactory to Bank):

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) Quarterly, within forty-five (45) days of
  the end of each fiscal quarter, a compliance certificate signed by an officer
  of Borrower attesting to Borrower’s compliance with all financial and
  non-financial covenants.

  (b) Monthly, within forty-five (45) days of the end of each fiscal
  month, Borrower prepared consolidated financial statements, including balance
  sheets, an income statement and a statement of cash flows, together with an
  accounts receivable summary and inventory summary.

  (c) Annually, within one hundred fifty (150)
  days following the close of the fiscal year, Borrower’s audited consolidated
  financial statements, including balance sheets, an income statement and a
  statement of cash flows, accompanied by an unqualified audit opinion of
  Borrower’s independent certified public accountants (who shall be reasonably
  acceptable to 

  

 

 2
 

 

 

	
  

  	
   

  	
  Bank).

  (d) Annually, within thirty (30) days following
  the close of each fiscal year, Borrower’s internally prepared budget for the
  following year.

  
	
   

  	
   

  	
   

  
	
  Financial Covenants

  	
   

  	
  Borrower shall comply with the financial covenants
  below listed in this commitment letter. The financial covenants are as
  follows:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) Borrower shall have a “Fixed Charge
  Coverage Ratio” of at least 1.15 to 1.00 at August 31, 2006, 1.25 to
  1.00 at November 30, 2006, and 1.35 to 1.00 at each fiscal quarter end
  thereafter.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Fixed Charge Coverage Ratio” shall be defined as
  the sum of Borrower’s EBITDA, plus its rent and lease expense, less its
  unfunded capital expenditures, less its cash taxes, divided by the sum of
  Borrower’s rent and lease expense, plus its current maturities of long term
  debt and capital lease obligations, plus its interest expense, plus its
  distributions, dividends and withdrawals.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “EBITDA” shall be defined as Borrower’s net income,
  plus its interest expense, plus its income tax expense, plus its depreciation
  and amortization.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  *For the fiscal quarters ending August 31, 2006
  and November 30, 2006, the Fixed Charge Coverage Ratio shall be
  calculated on an annualized basis. Thereafter, the ratio shall be calculated
  on a trailing twelve-month basis.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) Borrower shall have an “Asset Coverage
  Ratio” of not greater than 1.0 to 1.0 at each fiscal quarter end.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Asset Coverage Ratio” shall be defined as the total
  amount of Borrower’s Line of Credit outstanding under Facility 1 and Facility
  2 made by both Bank and RBC divided by the sum of Borrower’s accounts
  receivable, net of allowance for doubtful accounts, plus its inventory, net
  of reserves (capped at $20,000,000), less its accounts payable.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c) Borrower shall have a ratio of Adjusted
  Total Liabilities to Adjusted Tangible Net Worth of not greater than 1.50 to
  1.0 at each fiscal quarter end.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Adjusted Total Liabilities” shall be defined as all
  of Borrower’s liabilities, in accordance with GAAP, including contingent
  liabilities, less its subordinated debt.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  “Adjusted Tangible Net Worth” shall be defined as
  Borrower’s shareholder equity, in accordance with GAAP, less its intangible
  assets, less its leasehold improvements and loans receivable from related
  parties, plus its subordinated debt.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d) Borrower shall have a quarterly EBITDA of
  not less than $642,000 at the quarter ending May 31, 2006, $1,453,000 at
  the quarter ending August 31, 2006, $2,165, at the quarter ending November 30,
  2006, and $2,413,000 at the quarter ending February 28, 2007.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  All financial covenants to be calculated in
  accordance with GAAP applied on a consistent basis

  
	
   

  	
   

  	
   

  
	
  Operating Covenants

  	
   

  	
  The Loan Documents will contain affirmative and
  negative operating covenants relative to Borrower and Borrower’s business.
  The covenants shall be of the type Bank deems necessary to better ensure
  repayment of the Loans and shall include limitations or prohibitions on fixed
  asset or new lease expenditures, encumbering of assets, loans or guarantees,
  payment of debts to third Persons, payment of dividends, sale or disposition
  of assets, mergers or change in control, investments, acquisitions, officer
  compensation, executive management changes, change of fiscal year, affiliate
  relations and 

  

 

 3
 

 

 

	
  

  	
   

  	
  supplier/customer relations, litigation, solvency
  and adverse changes.

   

  Covenants specifically will include but not be
  limited to the following:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1)

  	
  Prohibitions on changes in executive management

  
	
   

  	
   

  	
  2)

  	
  Limitations on acquisitions

  
	
   

  	
   

  	
  3)

  	
  Limitations on additional indebtedness, including
  direct and indirect on Borrower orBorrower’s affiliates and subsidiaries

  
	
   

  	
   

  	
  4)

  	
  All shareholder and affiliated loans to be
  subordinated to the Loans

  

 

Loan Documentation And Other Closing Requirements

	
  Loan Documentation

  	
   

  	
  The Loans and Bank’s liens and security interests in
  the Collateral shall be evidenced by this Commitment Letter, and also shall
  be evidenced and supported by such additional loan documents (“Loan
  Documents”) as Bank and its counsel deem necessary in their sole discretion
  outlining terms and provisions acceptable to the Bank. The failure of
  Borrower and Bank to reach agreement on the Loan Documents shall not be
  deemed a breach by Bank of this Commitment. Unless Bank agrees otherwise in
  writing, completion of all Loan Documents is a condition of Closing the
  Loans.

  
	
   

  	
   

  	
   

  
	
  Insurance

  	
   

  	
  Borrower shall provide to Bank at Closing evidence
  satisfactory to Bank that the following insurance is in effect as of Closing:
  general liability insurance and workmen’s compensation insurance. The
  insurance shall be in amounts, with companies and on terms acceptable to
  Bank; it shall show Bank as a mortgagee or loss payee, as instructed by Bank;
  and it shall be continuously maintained in force by Borrower until the Loans
  are repaid in full.

  
	
   

  	
   

  	
   

  
	
  Taxes

  	
   

  	
  Borrower shall furnish to Bank no later than 5 days
  before Closing evidence satisfactory to Bank that all of Borrower’s income
  taxes and other governmental taxes, fees, charges or assessments have been
  paid through the most recent year.

  
	
   

  	
   

  	
   

  
	
  Opinion of Counsel

  	
   

  	
  On or prior to the Closing, Borrower will provide
  Bank with an opinion letter, in form and substance satisfactory to Bank, from
  an attorney acceptable to Bank.

  
	
   

  	
   

  	
   

  
	
  Charter Documents

  	
   

  	
  On or prior to the Closing, Borrower will provide
  Bank copies of its bylaws, articles of incorporation, resolutions authorizing
  the Loans and the transactions contemplated hereby and incumbency
  certificates, each in form and substance satisfactory and certified as true,
  correct and complete, to Bank. Bank shall have received from Borrower a
  certificate of the Secretary of State of the State of Georgia as to the good
  standing of Borrower.

  
	
   

  	
   

  	
   

  
	
  Fees and Expenses

  	
   

  	
  Upon Closing of the Loans (or if the Loans do not
  close for any reason, upon termination or expiration of this Commitment
  Letter), Borrower also shall pay all costs and expenses incident to the
  Loans, including recording fees, taxes, documentary tax fees or stamps,
  excise taxes and Bank’s and Borrower’s counsel fees.

  
	
   

  	
   

  	
   

  
	
  Additional Requirements

  	
   

  	
  Borrower shall satisfy all such other terms and
  conditions as Bank and its counsel deem necessary in their sole discretion to
  ensure the proper documentation of the Loans, the perfection of the liens and
  security interests in the Collateral and compliance with all laws and
  regulations applicable to Bank or Borrower relative to the Loans. These terms
  and conditions are not exhaustive, and this commitment is subject to certain
  other terms and closing conditions customarily required by Bank for similar
  transactions and may be supplemented prior to Closing based upon Bank’s
  investigation and/or as disclosure of Borrower’s circumstances so dictate.

  
	
   

  	
   

  	
   

  

 

 4
 

 

 

Miscellaneous

	
  Conditions
  Precedent

  	
   

  	
  The obligations of Bank to close under this
  Commitment Letter are subject to the following, each of which must be
  satisfied to Bank’s sole satisfaction and in its sole discretion:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  1)

  	
  Satisfactory review of Borrower’s 10-K annual
  report for the fiscal year endingFebruary 28, 2006.

  
	
   

  	
   

  	
  2).

  	
  No material adverse change in the financial
  condition of Borrower

  
	
   

  	
   

  	
  3)

  	
  Formal legal review and determination by Bank and
  its counsel that securityinterests in the Borrower and other Collateral will
  be properly perfected in favor ofBank, and not be subject to preference or
  other lien perfection attack in the future.

  
	
   

  	
   

  	
  4)

  	
  Satisfactory review of the unsecured Subordinated
  Shareholder Note to be executed between Borrower and Ron Ordway i/a/o
  $6,000,000 terms shall include a minimum 15 year amortization and a maturity
  date no sooner than 06/30/2012.

  
	
   

  	
   

  	
  5)

  	
  Shareholder debt shall be subordinate to Bank’s
  interest via a subordinationagreement acceptable to Bank.

  
	
   

  	
   

  	
  6)

  	
  Borrower shall have closed on the RBC Loans pursuant
  to acceptabledocumentation.

  
	
   

  	
   

  	
  7) 

  	
  Bank and RBC shall have entered into an
  intercreditor and collateral agency agreement setting forth the rights of the
  Bank and RBC with respect to the Loans and the RBC Loans and all Collateral
  for each (the Bank’s and RBC’s rights shall be pari passu); RBC shall be
  appointed as the collateral agent for administering the collateral and the
  exercise of the default rights and remedies.

  
	
   

  	
   

  	
   

  
	
  Borrower Certification

  	
   

  	
  The acceptance of this Commitment shall constitute a
  certification by the person executing the acceptance that all material
  matters relating to Borrower have been disclosed to Bank and that there has
  been no material, adverse change in Borrower, to include its financial
  condition and operating condition. Bank has made this Commitment based upon
  the information supplied by Borrower and related parties. Without limiting
  the foregoing, Bank shall have the right to cancel this Commitment, whereupon
  Bank shall have no obligations hereunder, in the event of: (i) a
  material adverse change in the condition (financial, business or otherwise),
  operations or prospects of Borrower; (ii) a material change in the
  accuracy of the information, representations, exhibits or other materials
  submitted by Borrower in connection with its request for financing;
  (iii) loss of, damage to, a taking of, or the presence of any hazardous
  substances or asbestos at or on any collateral for the Loan (and Borrower
  must immediately notify Bank of any such event); (iv) Borrower or any
  principal thereof shall file or make or have filed or made against such
  person a petition in bankruptcy, an assignment for the benefit of creditors
  or an action for the appointment of a receiver, or shall become insolvent,
  however evidenced; or (v) there is a material change in the capital
  structure or a change in control of Borrower.

  
	
   

  	
   

  	
   

  
	
  No Change

  	
   

  	
  The obligation of Bank to make the Loans is
  conditioned upon there being no material adverse changes in the financial or
  operating condition of Borrower.

  
	
   

  	
   

  	
   

  
	
  Non-Assignability

  	
   

  	
  This Commitment is for the sole benefit of Borrower
  and no other Person shall have any rights under this Commitment against Bank,
  including any bankruptcy trustee or debtor in possession. This Commitment may
  not be assigned without the prior written consent of Bank.

  
	
   

  	
   

  	
   

  
	
  Confidentiality

  	
   

  	
  The information contained in this Commitment is
  confidential and proprietary information for review only by Borrower.
  Borrower shall treat all information herein as confidential.

  
	
   

  	
   

  	
   

  
	
  Applicable Law

  	
   

  	
  This Commitment and the Loan Documents shall be
  governed by the laws of the State of Georgia without giving effect to the
  conflict provisions thereof.

  

 

 5
 

 

 

	
  

  	
   

  	
   

  
	
  Acceptance

  	
   

  	
  This Commitment shall expire unless it has been
  accepted and returned to Bank on or before June 15, 2006.

  
	
   

  	
   

  	
   

  
	
  Closing Date

  	
   

  	
  Bank shall have no obligation to make the Loans if
  the Loans are not closed by June 30, 2006.

  

 

This Commitment Letter supercedes and replaces any
prior discussions, discussion sheets, term sheets relating these Loans. This
Commitment, when accepted, shall constitute the entire agreement between
Borrower and Bank, and it may not be altered or amended unless agreed to in
writing by Bank, or otherwise modified by the Loan Documents. This Commitment
letter shall survive closing of the Loans. This Commitment Letter and the Loan
Documents shall be applied and construed in harmony with each other to the end
that Bank is ensured repayment of the Loans in accordance with their respective
terms. To the extent of an irreconcilable conflict between this Commitment
Letter and the Loan Documents, the terms of the Loan Documents shall prevail.

Please indicate your acceptance of this Commitment and
the terms and conditions contained herein by executing the acceptance below and
returning the executed letter to Bank. Regions Bank would like to express our
appreciation for the opportunity you have given us to be of service.

Sincerely,

REGIONS BANK

	
  By:

  	
   

  	
  /s/ Michael S. Harvey

  	
   

  
	
  Name:

  	
   

  	
  Michael S. Harvey

  	
   

  
	
  Title:

  	
   

  	
  Senior Vice President

  	
   

  

 

Accepted and Agreed To:

VIDEO DISPLAY CORPORATION

	
  By: /s/ Ronald D. Ordway

  	
   

  
	
  Print Name: Ronald D. Ordway

  
	
   Title: Chief
  Executive Officer

  
	
   

  
	
  By: /s/ Michael D. Boyd

  	
   

  
	
  Print Name: Michael D. Boyd

  
	
  Title: Chief Financial Officer

  

 

Date:  June _9, 2006

 6Exhibit 4.1

HARRAH’S OPERATING COMPANY, INC.

Issuer

HARRAH’S ENTERTAINMENT, INC.

Guarantor

INDENTURE

Dated as of June 9, 2006

U.S. BANK NATIONAL ASSOCIATION

Trustee

CERTAIN SECTIONS OF THIS INDENTURE RELATING TO SECTIONS 310

THROUGH 318, INCLUSIVE, OF THE TRUST INDENTURE ACT OF 1939:

 

	
  TRUST INDENTURE

  ACT SECTION

  	
   

  	
   

  	
  INDENTURE

  SECTION

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Section 310
  

  	
  (a)(1)

  	
   

  	
  609

  	
   

  
	
   

  	
  (a)(2)

  	
   

  	
  609

  	
   

  
	
   

  	
  (a)(3)

  	
   

  	
  Not Applicable

  	
   

  
	
   

  	
  (a)(4)

  	
   

  	
  Not Applicable

  	
   

  
	
   

  	
  (b)

  	
   

  	
  608

  	
   

  
	
   

  	
   

  	
   

  	
  610

  	
   

  
	
  Section 311

  	
   (a)

  	
   

  	
  613

  	
   

  
	
   

  	
  (b)

  	
   

  	
  613

  	
   

  
	
  Section 312

  	
  (a)

  	
   

  	
  701

  	
   

  
	
   

  	
   

  	
   

  	
  702

  	
   

  
	
   

  	
  (b)

  	
   

  	
  702

  	
   

  
	
   

  	
  (c)

  	
   

  	
  702

  	
   

  
	
  Section 313

  	
  (a)

  	
   

  	
  703

  	
   

  
	
   

  	
  (b)

  	
   

  	
  703

  	
   

  
	
   

  	
  (c)

  	
   

  	
  703

  	
   

  
	
   

  	
  (d)

  	
   

  	
  703

  	
   

  
	
  Section 314

  	
  (a)

  	
   

  	
  704

  	
   

  
	
   

  	
  (a)(4)

  	
   

  	
  101

  	
   

  
	
   

  	
   

  	
   

  	
  1005

  	
   

  
	
   

  	
  (b)

  	
   

  	
  Not Applicable

  	
   

  
	
   

  	
  (c)(1)

  	
   

  	
  102

  	
   

  
	
   

  	
  (c)(2)

  	
   

  	
  102

  	
   

  
	
   

  	
  (c)(3)

  	
   

  	
  Not Applicable

  	
   

  
	
   

  	
  (d)

  	
   

  	
  Not Applicable

  	
   

  
	
   

  	
  (e)

  	
   

  	
  102

  	
   

  
	
  Section 315

  	
  (a)

  	
   

  	
  601

  	
   

  
	
   

  	
  (b)

  	
   

  	
  602

  	
   

  
	
   

  	
  (c)

  	
   

  	
  601

  	
   

  
	
   

  	
  (d)

  	
   

  	
  601

  	
   

  
	
   

  	
  (e)

  	
   

  	
  514

  	
   

  
	
  Section 316

  	
  (a)

  	
   

  	
  101

  	
   

  
	
   

  	
  (a)(1)(A)

  	
   

  	
  502

  	
   

  
	
   

  	
   

  	
   

  	
  512

  	
   

  
	
   

  	
  (a)(1)(B)

  	
   

  	
  513

  	
   

  
	
   

  	
  (a)(2)

  	
   

  	
  Not Applicable

  	
   

  
	
   

  	
  (b)

  	
   

  	
  508

  	
   

  
	
   

  	
  (c)

  	
   

  	
  104

  	
   

  
	
  Section 317

  	
  (a)(1)

  	
   

  	
  503

  	
   

  
	
   

  	
  (a)(2)

  	
   

  	
  504

  	
   

  
	
   

  	
  (b)

  	
   

  	
  1003

  	
   

  
	
  Section 318

  	
  (a)

  	
   

  	
  107

  	
   

  

Note: This reconciliation and tie shall not, for any purpose, be deemed
to be a part of the Indenture.

 i
 

 

TABLE OF CONTENTS

 

	
  

  	
   

  	
   

  	
   

  	
  Page

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Parties

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Recitals of the Corporation

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE I. DEFINITIONS
  AND OTHER PROVISIONS OF GENERAL APPLICATION

  	
   

  	
  1

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 101

  	
   

  	
  Definitions.

  	
   

  	
  1

  	
   

  
	
  Section 102

  	
   

  	
  Compliance Certificates
  and Opinions.

  	
   

  	
  6

  	
   

  
	
  Section 103

  	
   

  	
  Form of Documents
  Delivered to Trustee.

  	
   

  	
  7

  	
   

  
	
  Section 104

  	
   

  	
  Acts of Holders; Record
  Dates.

  	
   

  	
  7

  	
   

  
	
  Section 105

  	
   

  	
  Notices, Etc., to
  Trustee and Corporation.

  	
   

  	
  8

  	
   

  
	
  Section 106

  	
   

  	
  Notice to Holders;
  Waiver.

  	
   

  	
  9

  	
   

  
	
  Section 107

  	
   

  	
  Conflict with Trust
  Indenture Act.

  	
   

  	
  9

  	
   

  
	
  Section 108

  	
   

  	
  Effect of Headings and
  Table of Contents.

  	
   

  	
  9

  	
   

  
	
  Section 109

  	
   

  	
  Successors and Assigns.

  	
   

  	
  9

  	
   

  
	
  Section 110

  	
   

  	
  Separability Clause.

  	
   

  	
  9

  	
   

  
	
  Section 111

  	
   

  	
  Benefits of Indenture.

  	
   

  	
  9

  	
   

  
	
  Section 112

  	
   

  	
  Governing Law.

  	
   

  	
  9

  	
   

  
	
  Section 113

  	
   

  	
  Legal Holidays.

  	
   

  	
  10

  	
   

  
	
  Section 114

  	
   

  	
  Counterparts.

  	
   

  	
  10

  	
   

  
	
  Section 115

  	
   

  	
  No Adverse
  Interpretation of Other Agreements.

  	
   

  	
  10

  	
   

  
	
  Section 116

  	
   

  	
  Judgment Currency.

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE II. SECURITY
  FORMS

  	
   

  	
  10

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 201

  	
   

  	
  Forms Generally.

  	
   

  	
  10

  	
   

  
	
  Section 202

  	
   

  	
  Form of Face of
  Security.

  	
   

  	
  11

  	
   

  
	
  Section 203

  	
   

  	
  Form of Reverse of
  Security.

  	
   

  	
  12

  	
   

  
	
  Section 204

  	
   

  	
  Form of Legend for
  Global Securities.

  	
   

  	
  13

  	
   

  
	
  Section 205

  	
   

  	
  Form of Trustee’s
  Certificate of Authentication.

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE III. THE
  SECURITIES

  	
   

  	
  14

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 301

  	
   

  	
  Amount Unlimited;
  Issuable in Series.

  	
   

  	
  14

  	
   

  
	
  Section 302

  	
   

  	
  Denominations.

  	
   

  	
  16

  	
   

  
	
  Section 303

  	
   

  	
  Execution,
  Authentication, Delivery and Dating.

  	
   

  	
  16

  	
   

  
	
  Section 304

  	
   

  	
  Temporary Securities.

  	
   

  	
  17

  	
   

  
	
  Section 305

  	
   

  	
  Registration,
  Registration of Transfer and Exchange.

  	
   

  	
  18

  	
   

  
	
  Section 306

  	
   

  	
  Mutilated, Destroyed,
  Lost and Stolen Securities.

  	
   

  	
  19

  	
   

  
	
  Section 307

  	
   

  	
  Payment of Interest;
  Interest Rights Preserved.

  	
   

  	
  20

  	
   

  
	
  Section 308

  	
   

  	
  Persons Deemed Owners.

  	
   

  	
  20

  	
   

  
	
  Section 309

  	
   

  	
  Cancellation.

  	
   

  	
  21

  	
   

  
	
  Section 310

  	
   

  	
  Computation of
  Interest.

  	
   

  	
  21

  	
   

  
	
  Section 311

  	
   

  	
  CUSIP Numbers.

  	
   

  	
  21

  	
   

  
	
  Section 312

  	
   

  	
  Mandatory Disposition
  of Notes Pursuant to Gaming Laws.

  	
   

  	
  21

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IV.
  SATISFACTION AND DISCHARGE

  	
   

  	
  21

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 401

  	
   

  	
  Satisfaction and
  Discharge of Indenture.

  	
   

  	
  21

  	
   

  
	
  Section 402

  	
   

  	
  Application of Trust
  Money.

  	
   

  	
  22

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE V. REMEDIES

  	
   

  	
  22

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 501

  	
   

  	
  Events of Default.

  	
   

  	
  22

  	
   

  
								

 

 ii
 

 

	
  Section 502

  	
   

  	
  Acceleration of
  Maturity; Rescission and Annulment.

  	
   

  	
  24

  	
   

  
	
  Section 503

  	
   

  	
  Collection of
  Indebtedness and Suits for Enforcement by Trustee.

  	
   

  	
  24

  	
   

  
	
  Section 504

  	
   

  	
  Trustee May File Proofs
  of Claim.

  	
   

  	
  25

  	
   

  
	
  Section 505

  	
   

  	
  Trustee May Enforce
  Claims Without Possession of Securities.

  	
   

  	
  25

  	
   

  
	
  Section 506

  	
   

  	
  Application of Money
  Collected.

  	
   

  	
  26

  	
   

  
	
  Section 507

  	
   

  	
  Limitation on Suits.

  	
   

  	
  26

  	
   

  
	
  Section 508

  	
   

  	
  Unconditional Right of
  Holders to Receive Principal, Premium and Interest.

  	
   

  	
  26

  	
   

  
	
  Section 509

  	
   

  	
  Restoration of Rights
  and Remedies.

  	
   

  	
  26

  	
   

  
	
  Section 510

  	
   

  	
  Rights and Remedies
  Cumulative.

  	
   

  	
  27

  	
   

  
	
  Section 511

  	
   

  	
  Delay or Omission Not
  Waiver.

  	
   

  	
  27

  	
   

  
	
  Section 512

  	
   

  	
  Control By Holders.

  	
   

  	
  27

  	
   

  
	
  Section 513

  	
   

  	
  Waiver of Past
  Defaults.

  	
   

  	
  27

  	
   

  
	
  Section 514

  	
   

  	
  Undertaking for Costs.

  	
   

  	
  27

  	
   

  
	
  Section 515

  	
   

  	
  Waiver of Stay or
  Extension Laws.

  	
   

  	
  28

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VI. THE TRUSTEE

  	
   

  	
  28

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 601

  	
   

  	
  Certain Duties and
  Responsibilities.

  	
   

  	
  28

  	
   

  
	
  Section 602

  	
   

  	
  Notice of Defaults.

  	
   

  	
  29

  	
   

  
	
  Section 603

  	
   

  	
  Certain Rights of
  Trustee.

  	
   

  	
  29

  	
   

  
	
  Section 604

  	
   

  	
  Not Responsible for
  Recitals or Issuance of Securities.

  	
   

  	
  30

  	
   

  
	
  Section 605

  	
   

  	
  May Hold Securities.

  	
   

  	
  30

  	
   

  
	
  Section 606

  	
   

  	
  Money Held in Trust.

  	
   

  	
  30

  	
   

  
	
  Section 607

  	
   

  	
  Compensation and
  Reimbursement.

  	
   

  	
  30

  	
   

  
	
  Section 608

  	
   

  	
  Conflicting Interests.

  	
   

  	
  31

  	
   

  
	
  Section 609

  	
   

  	
  Corporate Trustee
  Required; Eligibility.

  	
   

  	
  31

  	
   

  
	
  Section 610

  	
   

  	
  Resignation and
  Removal; Appointment of Successor.

  	
   

  	
  31

  	
   

  
	
  Section 611

  	
   

  	
  Acceptance of
  Appointment by Successor.

  	
   

  	
  32

  	
   

  
	
  Section 612

  	
   

  	
  Merger, Conversion,
  Consolidation or Succession to Business.

  	
   

  	
  33

  	
   

  
	
  Section 613

  	
   

  	
  Preferential Collection
  of Claims Against Corporation.

  	
   

  	
  33

  	
   

  
	
  Section 614

  	
   

  	
  Trustee’s Application
  for Instructions from the Corporation.

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VII. HOLDERS’
  LISTS AND REPORTS BY TRUSTEE AND CORPORATION

  	
   

  	
  33

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 701

  	
   

  	
  Preservation of
  Information; Communications to Holders.

  	
   

  	
  33

  	
   

  
	
  Section 702

  	
   

  	
  Reports by Trustee.

  	
   

  	
  33

  	
   

  
	
  Section 703

  	
   

  	
  Reports by Corporation.

  	
   

  	
  34

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE VIII.
  CONSOLIDATION, MERGER, CONVEYANCE OR TRANSFER

  	
   

  	
  34

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 801

  	
   

  	
  Corporation May Consolidate,
  Etc., on Certain Terms.

  	
   

  	
  34

  	
   

  
	
  Section 802

  	
   

  	
  Successor Substituted.

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE IX.
  SUPPLEMENTAL INDENTURES

  	
   

  	
  35

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 901

  	
   

  	
  Supplemental Indentures
  Without Consent of Holders.

  	
   

  	
  35

  	
   

  
	
  Section 902

  	
   

  	
  Supplemental Indentures
  With Consent of Holders.

  	
   

  	
  36

  	
   

  
	
  Section 903

  	
   

  	
  Execution of
  Supplemental Indentures.

  	
   

  	
  37

  	
   

  
	
  Section 904

  	
   

  	
  Effect of Supplemental
  Indentures.

  	
   

  	
  37

  	
   

  
	
  Section 905

  	
   

  	
  Conformity with Trust
  Indenture Act.

  	
   

  	
  37

  	
   

  
	
  Section 906

  	
   

  	
  Reference in Securities
  to Supplemental Indentures.

  	
   

  	
  37

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE X. COVENANTS

  	
   

  	
  37

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1001

  	
   

  	
  Payment of Principal,
  Premium and Interest.

  	
   

  	
  37

  	
   

  
	
  Section 1002

  	
   

  	
  Maintenance of Office
  or Agency.

  	
   

  	
  37

  	
   

  
	
  Section 1003

  	
   

  	
  Money for Securities
  Payments to Be Held in Trust.

  	
   

  	
  38

  	
   

  

 

 iii
 

 

	
  Section 1004

  	
   

  	
  Corporate Existence.

  	
   

  	
  38

  	
   

  
	
  Section 1005

  	
   

  	
  Statement by Officers
  as to Default.

  	
   

  	
  39

  	
   

  
	
  Section 1006

  	
   

  	
  Waiver of Certain
  Covenants.

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XI. REDEMPTION
  OF SECURITIES

  	
   

  	
  39

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1101

  	
   

  	
  Applicability of
  Article.

  	
   

  	
  39

  	
   

  
	
  Section 1102

  	
   

  	
  Election to Redeem;
  Notice to Trustee.

  	
   

  	
  39

  	
   

  
	
  Section 1103

  	
   

  	
  Selection by Trustee of
  Securities to Be Redeemed.

  	
   

  	
  39

  	
   

  
	
  Section 1104

  	
   

  	
  Notice of Redemption.

  	
   

  	
  40

  	
   

  
	
  Section 1105

  	
   

  	
  Securities Payable on
  Redemption Date.

  	
   

  	
  41

  	
   

  
	
  Section 1106

  	
   

  	
  Securities Redeemed in Part.

  	
   

  	
  41

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XII. SINKING
  FUNDS

  	
   

  	
  41

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1201

  	
   

  	
  No Sinking Funds.

  	
   

  	
  41

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIII.
  DEFEASANCE AND COVENANT DEFEASANCE

  	
   

  	
  41

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1301

  	
   

  	
  Applicability of
  Article.

  	
   

  	
  41

  	
   

  
	
  Section 1302

  	
   

  	
  Legal Defeasance of
  Notes.

  	
   

  	
  41

  	
   

  
	
  Section 1303

  	
   

  	
  Covenant Defeasance.

  	
   

  	
  42

  	
   

  
	
  Section 1304

  	
   

  	
  Deposited Money and
  U.S. Government Obligations and Foreign Government

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Obligations to Be Held
  in Trust; Indemnification

  	
   

  	
  43

  	
   

  
	
  Section 1305

  	
   

  	
  Reinstatement.

  	
   

  	
  43

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XIV. IMMUNITY
  OF INCORPORATORS, STOCKHOLDERS, OFFICERS AND DIRECTORS

  	
   

  	
  44

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1401

  	
   

  	
  Indenture and
  Securities Solely Corporate Obligations.

  	
   

  	
  44

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE XV. GUARANTEE

  	
   

  	
  44

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 1501

  	
   

  	
  Guarantee.

  	
   

  	
  44

  	
   

  
	
  Section 1502

  	
   

  	
  Execution and Delivery
  of Guarantee.

  	
   

  	
  45

  	
   

  
	
  Section 1503

  	
   

  	
  Release of Guarantor.

  	
   

  	
  45

  	
   

  
	
  Section 1504

  	
   

  	
  When Guarantor May
  Merge, etc.

  	
   

  	
  46

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Testimonium

  	
   

  	
  47

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signatures and Seals

  	
   

  	
  47

  	
   

  

 

 iv

INDENTURE, dated as of June 9,
2006, among Harrah’s Operating Company, Inc., a Delaware corporation (the “Corporation”),
Harrah’s Entertainment, Inc., a Delaware corporation (the “Guarantor”),
and U.S. Bank National Association, a national banking association duly
organized and existing under the laws of the United States of America, as
Trustee (herein called the “Trustee”).

RECITALS

The Corporation and the
Guarantor have duly authorized the execution and delivery of this Indenture to
provide for the issuance from time to time of unsecured debentures, notes or
other evidences of indebtedness (together with the related guarantees provided
by the Guarantor, the “Securities”), to be issued in one or more series as
provided for in this Indenture. All things necessary to make this Indenture a
valid agreement of the Corporation and the Guarantor, in accordance with its
terms, have been done.

NOW, THEREFORE, THIS INDENTURE
WITNESSETH:

For and in consideration
of the premises set forth herein and the purchase of the Securities by the
Holders (as defined herein) thereof, it is mutually agreed, for the equal and
proportionate benefit of all Holders of the Securities or of a
series thereof, as follows:

ARTICLE I.

DEFINITIONS AND OTHER
PROVISIONS

OF GENERAL APPLICATION

Section 101            Definitions.

For all purposes of this
Indenture, except as otherwise expressly provided or unless the context
otherwise requires:

(1)            the terms defined in this Article have
the meanings assigned to them in this Article and include the plural as well
as the singular;

(2)            all other terms used herein which
are defined in the Trust Indenture Act, either directly or by reference
therein, have the meanings assigned to them therein;

(3)            all accounting terms not otherwise
defined herein have the meanings assigned to them in accordance with generally
accepted accounting principles, and, except as otherwise herein expressly
provided, the term “generally accepted accounting principles” with respect to
any computation required or permitted hereunder shall mean such accounting
principles as are generally accepted in the United States of America;

(4)            unless the context otherwise
requires, any reference to an “Article” or a “Section” refers to an Article or
a Section, as the case may be, of this Indenture; and

(5)            the words “herein,” “hereof” and “hereunder”
and other words of similar import refer to this Indenture as a whole and not to
any particular Article, Section or other subdivision.

“Act,” when used with
respect to any Holder, has the meaning specified in Section 104.

“Affiliate” of any
specified Person means any other Person directly or indirectly controlling or
controlled by or under direct or indirect common control with such specified
Person. For the purposes of this definition, “control” (including, with
correlative meanings, the terms “controlled by” and “under common control with”),
as used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through
the ownership of voting securities, by contract or otherwise.

 “Bankruptcy Law” means Title 11, U.S. Code or
any similar Federal or State law for the relief of debtors.

“Board of Directors”
means either the board of directors of the Corporation or any duly authorized
committee thereof.

 

 

“Board Resolution” means
a copy of a resolution certified by the Secretary or an Assistant Secretary of
the Corporation to have been duly adopted by the Board of Directors or pursuant
to authorization by the Board of Directors and to be in full force and effect
on the date of such certification and delivered to the Trustee.

“Business Day,” when used
with respect to any Place of Payment, means a day other than (i) a
Saturday or a Sunday or (ii) a legal holiday on which banking institutions
in that Place of Payment are authorized or required by law, regulation or
executive order to remain closed.

“Commission” means the
Securities and Exchange Commission, from time to time constituted, created
under the Exchange Act, or, if at any time after the execution of this
instrument such Commission is not existing and performing the duties now
assigned to it under the Trust Indenture Act, then the body performing such
duties at such time.

“Company Order” or “Company
Request” means a written request or order signed in the name of the Corporation
by an Officer, and delivered to the Trustee.

“Consolidated Net
Tangible Assets” means the total amount of assets (including investments in
Joint Ventures) of the Corporation and its Subsidiaries (less applicable depreciation,
amortization and other valuation reserves) after deduction therefrom of (a) all
current liabilities of the Corporation and its Subsidiaries (excluding (i) the
current portion of long-term indebtedness, (ii) intercompany liabilities
and (iii) any liabilities which are by their terms renewable or extendible
at the option of the obligor thereon to a time more than 12 months from the
time as of which the amount thereof is being computed) and (b) all
goodwill, trade names, trademarks, patents, unamortized debt discount and any
other like intangibles, all as set forth on the consolidated balance sheet of
the Corporation for the most recently completed fiscal quarter for which
financial statements are available and computed in accordance with generally accepted
accounting principles.

“Corporate Trust Office”
means the office of the Trustee at which at any particular time its corporate
trust business shall be principally administered, which office at the date
hereof is located at 100 Wall Street, Suite 1600, New York, NY 10005,
Attn: Corporate Trust Services.

“Corporation” means the
Person named as the “Corporation” in the first paragraph of this instrument
until a successor Person shall have become such pursuant to the applicable
provisions of this Indenture, and thereafter “Corporation” shall mean such
successor Person.

“corporation” means a
corporation, association, company, joint-stock company or business trust.

 “Custodian” means any receiver, trustee,
assignee, liquidator or similar official under any Bankruptcy Law.

“Defaulted Interest” has
the meaning specified in Section 307.

 “Depositary” means, with respect to Securities
of any series issuable or issued in whole or in part in the
form of one or more Global Securities, a clearing agency registered under
the Exchange Act that is designated to act as Depositary for such Securities as
contemplated by Section 301.

“Dollars” means the
currency of the United States of America.

“Event of Default” has
the meaning specified in Section 501.

“Exchange Act” means the
Securities Exchange Act of 1934 and any statute successor thereto, in each case
as amended from time to time.

“Expiration Date” has the
meaning specified in Section 104.

“Foreign Currency” means
any currency or currency unit issued by a government other than the government
of the United States of America.

“Foreign Government
Obligations” means with respect to Securities that are denominated in a Foreign
Currency, (i) direct obligations of the government that issued or caused
to be issued such currency for the payment of which obligations its full faith
and credit is pledged or (ii) obligations of a Person controlled or
supervised by or acting as an agency or instrumentality of such government the
timely payment of which is unconditionally guaranteed as a full faith and
credit

 

 2
 

 

obligation by such
government, which, in either case under clauses (i) or (ii), are not
callable or redeemable at the option of the issuer thereof.

“Gaming Authority” means
the Nevada Gaming Commission, the Nevada State Gaming Control Board, the New
Jersey Casino Control Commission or any similar commission or agency which has,
or may at any time after the date of this Indenture have, jurisdiction
over the gaming activities of the Corporation or a Subsidiary of the Corporation
or any successor thereto.

“Gaming Laws” means the
gaming laws of a jurisdiction or jurisdictions to which the Corporation or a
Subsidiary of the Corporation is, or may at any time after the date of
this Indenture be, subject.

“Global Security” means a
Security that evidences all or part of the Securities of any
series which is issued to a Depositary or a nominee thereof for such
series in accordance with Section 301(18).

“Global Securities Legend”
has the meaning specified in Section 204.

 “Guarantor” means the Person named as the “Guarantor”
in the first paragraph of this instrument until a successor Person replaces it,
and thereafter “Guarantor” shall mean such successor Person.

“Holder” means a Person
in whose name a Security is registered in the Security Register.

“Indebtedness” of any
Person means (a) any indebtedness of such Person, contingent or otherwise,
in respect of borrowed money (whether or not the recourse of the lender is to
the whole of the assets of such Person or only to a portion thereof), or evidenced
by notes, bonds, debentures or similar instruments or letters of credit, or
representing the balance deferred and unpaid of the purchase price of any
property, including any such indebtedness incurred in connection with the
acquisition by such Person or any of its Subsidiaries of any other business or
entity, if and to the extent such indebtedness would appear as a liability upon
a balance sheet of such Person prepared in accordance with generally accepted
accounting principles, including for such purpose obligations under capitalized
leases, and (b) any guarantee, endorsement (other than for collection or
deposit in the ordinary course of business), discount with recourse, agreement
(contingent or otherwise) to purchase, repurchase or otherwise acquire or to
supply or advance funds with respect to, or to become liable with respect to
(directly or indirectly) any indebtedness, obligation, liability or dividend of
any Person, but shall not include indebtedness or amounts owed for compensation
to employees, or for goods or materials purchased, or services utilized, in the
ordinary course of business of such Person. Notwithstanding anything to the
contrary in the foregoing, “Indebtedness” shall not include (i) any
contracts providing for the completion of construction or other payment or
performance with respect to the construction, maintenance or improvement of, or
payment of taxes, revenue share payments or other fees to governmental entities
with respect to, property or equipment of the Corporation or its Affiliates or (ii) any
contracts providing for the obligation to advance funds, property or services
on behalf of an Affiliate of the Corporation in order to maintain the financial
condition of such Affiliate. For purposes of this definition of Indebtedness, a
“capitalized lease” shall be deemed to mean a lease of real or personal
property which, in accordance with generally accepted accounting principles, is
required to be capitalized.

“Indenture” means this
instrument as originally executed and as it may from time to time be
supplemented or amended by one or more indentures supplemental hereto entered
into pursuant to the applicable provisions hereof, including, for all purposes
of this instrument and any such supplemental indenture, the provisions of the
Trust Indenture Act that are deemed to be a part of and govern this
instrument and any such supplemental indenture, respectively. The term “Indenture”
shall also include the terms of particular series of Securities
established as contemplated by Section 301.

“interest,” when used
with respect to an Original Issue Discount Security which by its terms bears
interest only after Maturity, means interest payable after Maturity.

“Interest Payment Date,”
when used with respect to any Security, means the Stated Maturity of an
installment of interest on such Security.

“Investment Company Act”
means the Investment Company Act of 1940 and any statute successor thereto, in
each case as amended from time to time.

“Joint Venture” means any
partnership, corporation or other entity, in which up to and including 50% of
the partnership interests, outstanding voting stock or other equity interests
is owned, directly or indirectly, by the Company and/or one or more of its
subsidiaries.

 

 3
 

 

“Judgment Currency” has
the meaning set forth in Section 116.

“Maturity,” when used
with respect to any Security, means the date on which the principal of such
Security or an installment of principal becomes due and payable as therein or
herein provided, whether at the Stated Maturity or by declaration of
acceleration, call for redemption, notice of option to elect repayment or
otherwise.

“New York Banking Day”
has the meaning set forth in Section 116.

“Non-recourse
Indebtedness” means indebtedness with terms providing that the lender’s claim for
repayment of such indebtedness is limited solely to a claim against the
property which secures the indebtedness.

“Notice of Default” means
a written notice of the kind specified in Section 501(3).

“Officer” means the
Chairman of the Board, the President, any Vice-President, the Treasurer, the
Secretary, any Assistant Treasurer or any Assistant Secretary of the
Corporation, or the Guarantor, as applicable.

“Officers’ Certificate”
means a certificate signed by an Officer and delivered to the Trustee. One of
the officers signing an Officers’ Certificate given pursuant to Section 1005
shall be the principal executive, financial or accounting officer of the
Corporation.

“Opinion of Counsel”
means a written opinion of legal counsel, who may be an employee of or
other counsel to the Corporation, or the Guarantor, as applicable, who shall be
reasonably acceptable to the Trustee.

“Original Issue Discount
Security” means any Security which provides for an amount less than the
principal amount thereof to be due and payable upon a declaration of
acceleration of the Maturity thereof pursuant to Section 502.

“Outstanding,” when used
with respect to Securities, means, as of the date of determination, all
Securities theretofore authenticated and delivered under this Indenture,
except:

(1)           Securities theretofore canceled by
the Trustee or delivered to the Trustee for cancellation;

(2)           Securities for whose payment or
redemption the necessary amount of money or money’s worth has been theretofore
deposited with the Trustee or any Paying Agent (other than the Corporation) in
trust or set aside and segregated in trust by the Corporation (if the
Corporation shall act as its own Paying Agent) for the Holders of such
Securities; provided that, if such Securities are to be redeemed, notice of
such redemption has been duly given pursuant to this Indenture or provision
therefor satisfactory to the Trustee has been made;

(3)           Securities as to which Defeasance has
been effected pursuant to Section 1302; and

(4)           Securities which have been paid
pursuant to Section 306 or in exchange for or in lieu of which other
Securities have been authenticated and delivered pursuant to this Indenture,
other than any such Securities in respect of which there shall have been
presented to the Corporation proof satisfactory to it that such Securities are
held by a bona fide purchaser in whose hands such Securities are valid
obligations of the Corporation;

provided, however, that
in determining whether the Holders of the requisite principal amount of the
Outstanding Securities have given, made or taken any request, demand,
authorization, direction, notice, consent, waiver or other action hereunder as
of any date, (A) the principal amount of an Original Issue Discount
Security which shall be deemed to be Outstanding shall be the amount of the
principal thereof which would be due and payable as of such date upon
acceleration of the Maturity thereof to such date pursuant to Section 502,
(B) if, as of such date, the principal amount payable at the Stated
Maturity of a Security is not determinable, the principal amount of such
Security which shall be deemed to be Outstanding shall be the amount as
specified or determined as contemplated by Section 301, (C) the
principal amount of a Security denominated in one or more foreign currencies or
currency units which shall be deemed to be Outstanding shall be the U.S. dollar
equivalent, determined as of such date in the manner provided as contemplated
by Section 301, of the principal amount of such Security (or, in the case
of a Security described in Clause (A) or (B) above, of the amount
determined as provided in such Clause), and (D) Securities owned by the
Corporation or any other obligor upon the Securities or any Affiliate of the
Corporation or of any such other obligor, whether of record or beneficially,
shall be disregarded and deemed not to be Outstanding, except that, in
determining whether the Trustee shall be protected in relying upon any such
request, demand, authorization, direction, notice, consent, waiver or other action,
only Securities which the Trustee actually knows to be so owned shall be so
disregarded.

 

 4
 

 

Securities so owned which
have been pledged in good faith may be regarded as Outstanding if the
pledgee establishes to the satisfaction of the Trustee the pledgee’s right so
to act with respect to such Securities and that the pledgee is not the
Corporation or any other obligor upon the Securities or any Affiliate of the
Corporation or of any such other obligor.

“Paying Agent” means any
Person authorized by the Corporation to pay the principal of or any premium or
interest on any Securities on behalf of the Corporation.

“Payment Default” has the
meaning set forth in Section 513.

“Periodic Offering” means
an offering of Securities of a series from time to time the specific terms
of which Securities, including without limitation the rate or rates of interest
or formula for determining the rate or rates of interest thereon, if any, the
Stated Maturity or Maturities thereof and the redemption provisions, if any,
with respect thereto, are to be determined by the Corporation upon the issuance
of such Securities.

“Person” means any
individual, corporation, partnership, limited liability company or corporation,
joint venture, association, joint-stock company, trust, unincorporated
organization or government or any agency or political subdivision thereof.

“Place of Payment,” when
used with respect to the Securities of any series, means the place or places
where the principal of and any premium and interest on the Securities of that
series are payable as contemplated by Section 301.

“Predecessor Security” of
any particular Security means every previous Security evidencing all or a
portion of the same debt as that evidenced by such particular Security; and,
for the purposes of this definition, any Security authenticated and delivered
under Section 306 in exchange for or in lieu of a mutilated, destroyed,
lost or stolen Security shall be deemed to evidence the same debt as the
mutilated, destroyed, lost or stolen Security.

“Redemption Date,” when
used with respect to any Security to be redeemed, means the date fixed for such
redemption by or pursuant to this Indenture.

“Redemption Price,” when
used with respect to any Security to be redeemed, means the price at which it
is to be redeemed pursuant to this Indenture.

“Regular Record Date” for
the interest payable on any Interest Payment Date on the Securities of any
series means the date specified for that purpose as contemplated by Section 301.

“Required Currency” has
the meaning set forth in Section 116.

“Responsible Officer,”
when used with respect to the Trustee, means the chairman or any vice-chairman
of the board of directors, the chairman or any vice-chairman of the executive
committee of the board of directors, the chairman of the trust committee, the
president, any vice president, the secretary, any assistant secretary, the
treasurer, any assistant treasurer, any assistant vice president, any senior
trust officer, any trust officer or assistant trust officer, the controller or
any assistant controller or any other officer of the Trustee customarily
performing functions similar to those performed by any of the above designated
officers.

“Securities” has the
meaning stated in the first recital of this Indenture and more particularly
means any Securities authenticated and delivered under this Indenture.

“Securities Act” means
the Securities Act of 1933 and any statute successor thereto, in each case as
amended from time to time.

“Security Register” and “Security
Registrar” have the respective meanings specified in Section 305.

“Significant Subsidiary”
means (i) any direct or indirect Subsidiary of the Corporation that would
be a “significant subsidiary” as defined in Article 1, Rule 1-02
of Regulation S-X, promulgated pursuant to the Securities Act, as such
regulation is in effect on the date hereof, or (ii) any group of direct or
indirect Subsidiaries of the Corporation that, taken together as a group, would
be a “significant subsidiary” as defined in Article 1, Rule 1-02
of Regulation S-X, promulgated pursuant to the Securities Act, as such
regulation is in effect on the date hereof.

 

 5
 

 

“Special Record Date” for
the payment of any Defaulted Interest means a date fixed by the Trustee
pursuant to 

Section 307(1).

“Stated Maturity,” when
used with respect to any Security or any installment of principal thereof or
interest thereon, means the date specified in such Security as the fixed date
on which the principal of such Security or such installment of principal or
interest is due and payable, in the case of such principal, as such date
may be advanced or extended as provided pursuant to the terms of such
Security established pursuant to Section 301.

“Subsidiary” of any
specified Person means any corporation of which at least a majority of the
outstanding stock having by the terms thereof ordinary voting power for the
election of directors of such corporation (irrespective of whether or not at
the time stock of any other class or classes of such corporation shall
have or might have voting power by reason of the happening of any contingency)
is at the time directly or indirectly owned by such Person, or by one or more
other Subsidiaries, or by such Person and one or more other Subsidiaries.

“Trust Indenture Act”
means the Trust Indenture Act of 1939 as in force at the date as of which this
instrument was executed; provided, however, that in the event the Trust
Indenture Act of 1939 is amended after such date, “Trust Indenture Act” shall
mean, to the extent required by any such amendment, the Trust Indenture Act of
1939 as so amended.

“Trustee” means the
Person named as the “Trustee” in the first paragraph of this instrument until a
successor Trustee shall have become such pursuant to the applicable provisions
of this Indenture, and thereafter “Trustee” shall mean or include each Person
who is then a Trustee hereunder, and if at any time there is more than one such
Person, “Trustee” as used with respect to the Securities of any
series shall mean the Trustee with respect to Securities of that series.

“U.S. Government
Obligations” means securities which are (i) direct obligations of the
United States of America for the payment of which its full faith and credit is
pledged or (ii) obligations of a Person controlled or supervised by and
acting as an agency or instrumentality of the United States of America the
payment of which is unconditionally guaranteed as a full faith and credit
obligation by the United States of America, and which in the case of (i) and
(ii) are not callable or redeemable at the option of the issuer thereof,
and shall also include a depositary receipt issued by a bank or trust company
as custodian with respect to any such U.S. Government Obligation or a specific
payment of interest on or principal of any such U.S. Government Obligation held
by such custodian for the account of the holder of a depositary receipt, provided that (except as required
by law) such custodian is not authorized to make any deduction from the amount
payable to the holder of such depositary receipt from any amount received by
the custodian in respect of the U.S. Government Obligation evidenced by such
depositary receipt.

Section 102            Compliance Certificates and
Opinions.

Upon any application or
request by the Corporation to the Trustee to take any action under any
provision of this Indenture, the Corporation shall furnish to the Trustee such
certificates and opinions as may be required under the Trust Indenture
Act. Each such certificate or opinion shall be given in the form of an
Officers’ Certificate, if to be given by an officer of the Corporation, or an
Opinion of Counsel, if to be given by counsel, and shall comply with the
requirements of the Trust Indenture Act and any other requirements set forth in
this Indenture.

Every certificate or
opinion with respect to compliance with a condition or covenant provided for in
this Indenture shall include

(1)           a statement that each individual
signing such certificate or opinion has read such covenant or condition and the
definitions herein relating thereto;

(2)           a brief statement as to the nature
and scope of the examination or investigation upon which the statements or
opinions contained in such certificate or opinion are based;

(3)           a statement that, in the opinion of
each such individual, he or she has made such examination or investigation as
is necessary to express an informed opinion as to whether or not such covenant
or condition has been complied with; and

(4)           a statement as to whether, in the
opinion of each such individual, such condition or covenant has been complied
with.

 

 6
 

 

Section 103            Form of Documents Delivered
to Trustee.

In any case where several
matters are required to be certified by, or covered by an opinion of, any
specified Person, it is not necessary that all such matters be certified by, or
covered by the opinion of, only one such Person, or that they be so certified
or covered by only one document, but one such Person may certify or give
an opinion with respect to some matters and one or more other such Persons as
to other matters, and any such Person may certify or give an opinion as to
such matters in one or several documents.

Any certificate or
opinion of an officer of the Corporation may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations
by, counsel, unless such officer knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
the matters upon which such officer’s certificate or opinion is based are
erroneous. Any such certificate or opinion of counsel may be based,
insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Corporation stating that the
information with respect to such factual matters is in the possession of the
Corporation, unless such counsel knows, or in the exercise of reasonable care
should know, that the certificate or opinion or representations with respect to
such matters are erroneous.

Where any Person is
required to make, give or execute two or more applications, requests, consents,
certificates, statements, opinions or other instruments under this Indenture,
they may, but need not, be consolidated and form one instrument.

Whenever, subsequent to
the receipt by the Trustee of any Board Resolution, Officers’ Certificate,
Opinion of Counsel or other document or instrument, a clerical, typographical
or other inadvertent or unintentional error or omission shall be discovered
therein, a new document or instrument may be substituted therefor in corrected
form with the same force and effect as if originally filed in the
corrected form and, irrespective of the date or dates of the actual
execution and/or delivery thereof, such substitute document or instrument shall
be deemed to have been executed and/or delivered as of the date or dates
required with respect to the document or instrument for which it is
substituted. Anything in this Indenture to the contrary notwithstanding, if any
such corrective document or instrument indicates that action has been taken by
or at the request of the Corporation which could not have been taken had the
original document or instrument not contained such error or omission, the
action so taken shall not be invalidated or otherwise rendered ineffective but
shall be and remain in full force and effect, except to the extent that such
action was a result of willful misconduct or bad faith. Without limiting the
generality of the foregoing, any Securities issued under the authority of such
defective document or instrument shall nevertheless be the valid obligations of
the Corporation entitled to the benefits of this Indenture equally and ratably
with all other Outstanding Securities, except as aforesaid.

Section 104            Acts of Holders; Record Dates.

Any request, demand,
authorization, direction, notice, consent, waiver or other action provided or
permitted by this Indenture to be given, made or taken by Holders may be
embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Holders in person or by agent duly appointed in writing;
and, except as herein otherwise expressly provided, such action shall become
effective when such instrument or instruments are delivered to the Trustee and,
where it is hereby expressly required, to the Corporation. Such instrument or
instruments (and the action embodied therein and evidenced thereby) are herein
sometimes referred to as the “Act” of the Holders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing
appointing any such agent shall be sufficient for any purpose of this Indenture
and (subject to Section 601) conclusive in favor of the Trustee and the
Corporation, if made in the manner provided in this Section.

The fact and date of the
execution by any Person of any such instrument or writing may be proved by
the affidavit of a witness of such execution or by a certificate of a notary
public or other officer authorized by law to take acknowledgments of deeds,
certifying that the individual signing such instrument or writing acknowledged
to him the execution thereof. Where such execution is by a signer acting in a
capacity other than the signer’s individual capacity, such certificate or
affidavit shall also constitute sufficient proof of the signer’s authority. The
fact and date of the execution of any such instrument or writing, or the
authority of the Person executing the same, may also be proved in any
other manner which the Trustee deems sufficient.

The ownership of
Securities shall be proved by the Security Register.

Any request, demand,
authorization, direction, notice, consent, waiver or other Act of the Holder of
any Security shall bind every future Holder of the same Security and the Holder
of every Security issued upon the registration of transfer 

 7
 

 

thereof or in exchange
therefor or in lieu thereof in respect of anything done, omitted or suffered to
be done by the Trustee or the Corporation in reliance thereon, whether or not
notation of such action is made upon such Security.

The Corporation
may set any day as a record date for the purpose of determining the
Holders of Outstanding Securities of any series entitled to give, make or
take any request, demand, authorization, direction, notice, consent, waiver or
other action provided or permitted by this Indenture to be given, made or taken
by Holders of Securities of such series; provided that the Corporation
may not set a record date for, and the provisions of this paragraph shall
not apply with respect to, the giving or making of any notice, declaration, request
or direction referred to in the next paragraph. If any record date is set
pursuant to this paragraph, the Holders of Outstanding Securities of the
relevant series on such record date, and no other Holders, shall be
entitled to take or revoke the relevant action, whether or not such Holders
remain Holders after such record date; provided that no such action shall be
effective hereunder unless taken on or prior to the applicable Expiration Date
by Holders of the requisite principal amount of Outstanding Securities of such
series on such record date. Nothing in this paragraph shall be construed
to prevent the Corporation from setting a new record date for any action for
which a record date has previously been set pursuant to this paragraph
(whereupon the record date previously set shall automatically and with no
action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is
set pursuant to this paragraph, the Corporation, at its own expense, shall
cause notice of such record date, the proposed action by Holders and the applicable
Expiration Date to be given to the Trustee in writing and to each Holder of
Securities of the relevant series in the manner set forth in Section 106.

The Trustee may set
any day as a record date for the purpose of determining the Holders of
Outstanding Securities of any series entitled to join in the giving or
making of (i) any Notice of Default, (ii) any declaration of
acceleration referred to in Section 502, (iii) any request to
institute proceedings referred to in Section 507(2) or (iv) any
direction referred to in Section 512, in each case with respect to
Securities of such series. If any record date is set pursuant to this
paragraph, the Holders of Outstanding Securities of such series on such
record date, and no other Holders, shall be entitled to join in such notice,
declaration, request or direction or to revoke the same, whether or not such
Holders remain Holders after such record date; provided that no such action
shall be effective hereunder unless taken on or prior to the applicable
Expiration Date by Holders of the requisite principal amount of Outstanding
Securities of such series on such record date. Nothing in this paragraph
shall be construed to prevent the Trustee from setting a new record date for
any action for which a record date has previously been set pursuant to this
paragraph (whereupon the record date previously set shall automatically and
with no action by any Person be canceled and of no effect), and nothing in this
paragraph shall be construed to render ineffective any action taken by Holders
of the requisite principal amount of Outstanding Securities of the relevant
series on the date such action is taken. Promptly after any record date is
set pursuant to this paragraph, the Trustee, at the Corporation’s expense,
shall cause notice of such record date, the proposed action by Holders and the
applicable Expiration Date to be sent to the Corporation in writing and to each
Holder of Securities of the relevant series in the manner set forth in Section 106.

With respect to any
record date set pursuant to this Section, the party hereto which sets such
record date may designate any day as the “Expiration Date” on or prior to
which any Act must be taken to be effective, 
and from time to time may change the Expiration Date to any earlier
or later day; provided that no such change shall be effective unless notice of
the proposed new Expiration Date is given to the other party hereto in writing,
and to each Holder of Securities of the relevant series in the manner set
forth in Section 106 on or prior to the existing Expiration Date. If an
Expiration Date is not designated with respect to any record date set pursuant
to this Section, the party hereto which set such record date shall be deemed to
have initially designated the 180th day after such record date as the
Expiration Date with respect thereto, subject to its right to change the
Expiration Date as provided in this paragraph. Notwithstanding the foregoing,
no Expiration Date shall be later than the 180th day after the applicable
record date.

Without limiting the
foregoing, a Holder entitled hereunder to take any action hereunder with regard
to any particular Security may do so with regard to all or any
part of the principal amount of such Security or by one or more duly
appointed agents each of which may do so pursuant to such appointment with
regard to all or any part of such principal amount.

Section 105            Notices, Etc., to Trustee and
Corporation.

Any request, demand,
authorization, direction, notice, consent, waiver or Act of Holders or other document
provided or permitted by this Indenture to be made upon, given or furnished to,
or filed with,

(1)           the Trustee by any Holder or by the
Corporation shall be sufficient for every purpose hereunder if in writing,
which may be made via facsimile, to or with the Trustee at its [Corporate
Trust Office, Attention: Global Agency and Trust Services], or

 

 8
 

 

(2)           the Corporation by the Trustee or by
any Holder shall be sufficient for every purpose hereunder (unless otherwise
herein expressly provided) if in writing, which may be made via facsimile,
or mailed, first-class postage prepaid, to the Corporation addressed to it
at the address of its principal office at One Harrah’s Court, Las Vegas, Nevada
89119, Attention: General Counsel, or at any other address previously furnished
in writing to the Trustee by the Corporation.

Section 106            Notice to Holders; Waiver.

Where this Indenture
provides for notice to Holders of any event, such notice shall be sufficiently
given (unless otherwise herein expressly provided) if in writing and mailed,
first-class postage prepaid, to each Holder affected by such event, at his
address as it appears in the Security Register, not later than the latest date
(if any), and not earlier than the earliest date (if any), prescribed for the giving
of such notice. In any case where notice to Holders is given by mail, neither
the failure to mail such notice, nor any defect in any notice so mailed, to any
particular Holder shall affect the sufficiency of such notice with respect to
other Holders. Where this Indenture provides for notice in any manner, such
notice may be waived in writing by the Person entitled to receive such
notice, either before or after the event, and such waiver shall be the
equivalent of such notice. Waivers of notice by Holders shall be filed by such
Holders or the Corporation with the Trustee, but such filing shall not be a
condition precedent to the validity of any action taken in reliance upon such
waiver.

In case by reason of the
suspension of regular mail service or by reason of any other cause it shall be
impracticable to give such notice by mail, then such notification as shall be
made with the approval of the Trustee shall constitute a sufficient
notification for every purpose hereunder.

Section 107            Conflict with Trust Indenture Act.

If any provision hereof
limits, qualifies or conflicts with a provision of the Trust Indenture Act
which is required under such provision of the Trust Indenture Act to be a
part of and govern this Indenture, the latter provision shall control. If
any provision of this Indenture modifies or excludes any provision of the Trust
Indenture Act which may be so modified or excluded, the latter provision
shall be deemed to apply to this Indenture as so modified or to be excluded, as
the case may be.

Section 108            Effect of Headings and Table of
Contents.

The Table of Contents,
Cross-Reference Table, and headings of the Articles and Sections of this
Indenture have been inserted for convenience only, are not to be considered a
part hereof, and shall in no way modify or restrict any of the terms or
provisions hereof.

Section 109            Successors and Assigns.

All covenants and
agreements in this Indenture by the Corporation shall bind its successors and
assigns, whether so expressed or not. All covenants and agreements in this
Indenture by the Trustee shall bind its successors and assigns, whether so
expressed or not.

Section 110            Separability Clause.

In case any provision in
this Indenture or in the Securities shall be invalid, illegal or unenforceable,
the validity, legality and enforceability of the remaining provisions shall not
in any way be affected or impaired thereby.

Section 111            Benefits of Indenture.

Nothing in this Indenture
or in the Securities, express or implied, shall give to any Person, other than
the parties hereto, their successors hereunder and the Holders, any benefit or
any legal or equitable right, remedy or claim under this Indenture.

Section 112            Governing Law.

This Indenture and the Securities
shall be governed by and construed in accordance with the laws of the State of
New York without regard to conflicts of laws principles thereof.

 

 9
 

 

Section 113            Legal Holidays.

In any case where any
Interest Payment Date, Redemption Date or Stated Maturity of any Security shall
not be a Business Day at any Place of Payment, then (notwithstanding any other
provision of this Indenture or of the Securities (other than a provision of any
Security which specifically states that such provision shall apply in lieu of
this Section)) payment of interest or principal (and premium, if any) need not
be made at such Place of Payment on such date, but may be made on the next
succeeding Business Day at such Place of Payment with the same force and effect
as if made on the Interest Payment Date or Redemption Date, or at the Stated
Maturity.

Section 114            Counterparts.

This Indenture
may be executed in any number of counterparts and by the parties hereto in
separate counterparts, each of which when so executed shall be deemed to be an
original and all of which taken together shall constitute one and the same
agreement.

Section 115            No Adverse Interpretation of
Other Agreements.

This Indenture
may not be used to interpret another indenture, loan or debt agreement of
the Corporation or a Subsidiary. Any such indenture, loan or debt agreement
may not be used to interpret this Indenture.

Section 116            Judgment Currency.

The Company agrees, to
the fullest extent that it may effectively do so under applicable law,
that (a) if for the purpose of obtaining judgment in any court it is
necessary to convert the sum due in respect of the principal of or interest or
other amount on the Notes (the “Required Currency”) into a currency in
which a judgment will be rendered (the “Judgment Currency”), the rate of
exchange used shall be the rate at which in accordance with normal banking
procedures the Trustee could purchase in The City of New York the Required
Currency with the Judgment Currency on the day on which final unappealable
judgment is entered, unless such day is not a New York Banking Day, then, the
rate of exchange used shall be the rate at which in accordance with normal
banking procedures the Trustee could purchase in The City of New York the
Required Currency with the Judgment Currency on the New York Banking Day
preceding the day on which final unappealable judgment is entered and (b) its
obligations under this Indenture to make payments in the Required Currency (i) shall
not be discharged or satisfied by any tender or any recovery pursuant to any
judgment (whether or not entered in accordance with subsection (a)), in
any currency other than the Required Currency, except to the extent that such
tender or recovery shall result in the actual receipt, by the payee, of the
full amount of the Required Currency expressed to be payable in respect of such
payments, (ii) shall be enforceable as an alternative or additional cause
of action for the purpose of recovering in the Required Currency the amount, if
any, by which such actual receipt shall fall short of the full amount of the
Required Currency so expressed to be payable, and (iii) shall not be
affected by judgment being obtained for any other sum due under this Indenture.
For purposes of the foregoing, “New York Banking Day” means any day except a
Saturday, Sunday or a legal holiday in The City of New York on which banking
institutions are authorized or required by law, regulation or executive order
to close.

ARTICLE II.

SECURITY FORMS

Section 201            Forms Generally.

The Securities of each
series shall be in substantially the form set forth in this Article,
or in such other form as shall be established by or pursuant to a Board
Resolution, in one or more indentures supplemental hereto or in an Officers’
Certificate pursuant to Section 301 hereof with respect to the
series of Securities established pursuant to such Officers’ Certificate or
supplemental indenture, in each case with such appropriate insertions,
omissions, substitutions and other variations as are required or permitted by
this Indenture, and may have such letters, numbers or other marks of
identification and such legends or endorsements placed thereon as may be
required to comply with the rules of any securities exchange or Depositary
therefor or as may, consistently herewith, be determined by the officers
executing such Securities, as evidenced by their execution thereof. If the
form of Securities of any series is established by action taken
pursuant to a Board Resolution, a copy of an appropriate record of such action
shall be certified by the Secretary or an Assistant Secretary of the Corporation
and delivered to the Trustee at or prior to the delivery of the Company Order
contemplated by Section 303 for the authentication and delivery of such
Securities.

 

 10

 

The definitive Securities
shall be printed, lithographed or engraved on steel engraved borders or
may be produced in any other manner, all as determined by the officers
executing such Securities, as evidenced by their execution of such Securities.

Section 202            Form of Face of Security.

[Insert any legend
required by the Internal Revenue Code and the regulations thereunder.]

[Insert Global Securities
Legend, if applicable]

HARRAH’S
OPERATING COMPANY, INC.

    %
Notes due 20  

Payment of principal, interest and premium, if any, unconditionally guaranteed
by

HARRAH’S
ENTERTAINMENT, INC.

 

	
  

  	
  $

  
	
   

  	
   

  
	
  No.

  	
  CUSIP No.

  

 

Harrah’s Operating
Company, Inc., a Delaware corporation (herein called the “Corporation,”
which term includes any successor Person under the Indenture hereinafter
referred to), for value received, hereby promises to pay to
                               ,
or registered assigns, the principal sum of
                       
Dollars ($                   )
on
                         
[if the Security is to bear interest prior to Maturity and interest payment
periods are not extendable, insert - , and to pay interest thereon from
                         
or from the most recent date to which interest has been paid or duly provided
for, [insert - semi-annually, quarterly, monthly or other description of the
relevant payment period] on
[                          ,
                        ,]
of each year (each, an “Interest Payment Date”), commencing
                            ,
at the rate of     % per annum, until the principal hereof
is paid or made available for payment [if applicable, insert - , provided that
any principal hereof or premium, if any, or interest hereon which is not paid
when due shall bear interest at the rate of    % per annum (to
the extent that the payment of such interest shall be legally enforceable) from
the dates such amounts are due until they are paid or made available for
payment, and such interest shall be payable on demand]. Interest on this
Security shall be calculated on the basis of a 360-day year consisting of
twelve 30-day months. The interest so payable, and punctually paid or
duly provided for, on any Interest Payment Date will, as provided in such
Indenture, be paid to the Person in whose name this Security (or one or more
Predecessor Securities) is registered at the close of business on the Regular
Record Date for such interest, which shall be the
[                                ]
(whether or not a Business Day), as the case may be, next preceding such
Interest Payment Date. Any such interest not so punctually paid or duly
provided for on any Interest Payment Date will forthwith cease to be payable to
the Holder on such Regular Record Date by virtue of having been such Holder and
may either be paid to the Person in whose name this Security (or one or
more Predecessor Securities) is registered at the close of business on a
Special Record Date for the payment of such Defaulted Interest to be fixed by
the Trustee, notice whereof shall be given to Holders of Securities of this
series not less than 10 days prior to such Special Record Date, or be paid
at any time in any other lawful manner not inconsistent with the requirements
of any securities exchange on which the Securities of this series may be
listed, and upon such notice as may be required by such exchange, all as
more fully provided in said Indenture].

[If the Security is not
to bear interest prior to Maturity, insert - The principal of this Security
shall not bear interest except in the case of a default in payment of principal
upon acceleration, upon redemption or at Stated Maturity and in such case the
overdue principal and any overdue premium shall bear interest at the rate of
    % per annum (to the extent that the payment of such
interest shall be legally enforceable), from the dates such amounts are due
until they are paid or made available for payment. Interest on any overdue
principal or premium shall be payable on demand. Any such interest on overdue
principal or premium which is not paid on demand shall bear interest at the
rate of     % per annum (to the extent that the payment of
such interest on interest shall be legally enforceable), from the date of such
demand until the amount so demanded is paid or made available for payment.
Interest on any overdue interest shall be payable on demand.]

Payment of the principal
of (and premium, if any) and [if applicable, insert - any such] interest on
this Security will be made at the office or agency of the Corporation
maintained for that purpose in New York City, in such coin or currency of the
United States of America as at the time of payment is legal tender for payment
of public and private debts [if applicable, insert - ; provided, however, that
at the option of the Corporation payment of interest may be made by check
mailed to the address of the Person entitled thereto as such address shall
appear in the Security Register or by wire transfer at such place

 

 11
 

 

and to such account at a
banking institution in the United States as may be designated in writing
to the Trustee at least fifteen (15) days prior to the date for payment by the
Person entitled thereto]. [In the case of a Global Security registered in the
name of the Depository Trust Company or its nominee, insert—Notwithstanding the
foregoing, so long as the Holder of this Security is the Depositary or its
nominee, payment of the principal of (and premium, if any) and [if applicable,
insert—any such] interest on this Security will be made by wire transfer of
immediately available funds.]

Reference is hereby made
to the further provisions of this Security set forth on the reverse hereof,
which further provisions shall for all purposes have the same effect as if set
forth at this place.

Unless the certificate of
authentication hereon has been executed by the Trustee referred to on the
reverse hereof by manual signature, this Security shall not be entitled to any
benefit under the Indenture or be valid or obligatory for any purpose.

IN WITNESS WHEREOF, the
Corporation has caused this instrument to be duly executed.

	
  Dated as of Date of Authentication:

  	
  HARRAH’S OPERATING COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  	
   

  
	
   

  	
   

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
						

 

Section 203            Form of Reverse of Security.

This Security is one of a
duly authorized issue of securities of the Corporation (herein called the “Securities”),
issued and to be issued in one or more series under an Indenture, dated as
of  ,      (herein called the “Indenture,”
which term shall have the meaning assigned to it in such instrument), between
the Corporation and U.S. Bank National Association, as Trustee (herein called
the “Trustee,” which term includes any successor trustee under the Indenture),
and reference is hereby made to the Indenture for a statement of the respective
rights, limitation of rights, duties and immunities thereunder of the
Corporation, the Trustee and the Holders of the Securities and of the terms
upon which the Securities are, and are to be, authenticated and delivered. This
Security is one of the series designated on the face hereof [if applicable,
insert - , limited (subject to exceptions provided in the Indenture) in
aggregate principal amount to $
            ].

The Securities are
subject to redemption prior to the Maturity Date of the principal thereof as
provided in the Indenture.

The indenture contains
provisions whereby (i) the Corporation may be discharged from its
obligations with respect to the Securities (subject to certain exceptions) or (ii) the
Corporation may be released from its obligations under specified covenants
and agreements in the Indenture, in each case if the Corporation irrevocably
deposits with the Trustee money or U.S. Government Obligations sufficient to
pay and discharge the entire indebtedness on all Securities, and satisfies
certain other conditions, all as more fully provided in the Indenture.

[If the Security is not
an Original Issue Discount Security, insert - If an Event of Default with
respect to Securities of this series shall occur and be continuing, the
principal of the Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture.]

[If the Security is an
Original Issue Discount Security, insert - If an Event of Default with respect
to Securities of this series shall occur and be continuing, an amount of
principal of the Securities of this series may be declared due and
payable in the manner and with the effect provided in the Indenture. Such
amount shall be equal to [insert formula for determining the amount]. Upon
payment (i) of the amount of principal so declared due and payable and (ii) of
interest on any overdue principal, premium and interest (in each case to the
extent that the payment of such interest shall be legally enforceable), all of
the Corporation’s obligations in respect of the payment of the principal of and
premium and interest, if any, on the Securities of this series shall
terminate.]

The Indenture permits,
with certain exceptions as therein provided, the amendment thereof and the
modification of the rights and obligations of the Corporation and the rights of
the Holders of the Securities of each series affected under the Indenture
at any time by the Corporation and the Trustee with the consent of the Holders
of at least a majority in aggregate

 

 12
 

 

principal amount of the
Securities of each series at the time Outstanding affected thereby. The
Indenture also contains provisions permitting the Holders of specified
percentages in aggregate principal amount of the Securities of any
series at the time Outstanding, on behalf of the Holders of all Securities
of such series, to waive compliance by the Corporation with certain provisions
of the Indenture and certain past defaults under the Indenture with respect to
such series and its consequences. Any such consent or waiver by the Holder
of this Security shall be conclusive and binding upon such Holder and upon all
future Holders of this Security and of any Security issued upon the
registration of transfer hereof or in exchange therefor or in lieu hereof,
whether or not notation of such consent or waiver is made upon this Security.

As provided in and
subject to the provisions of the Indenture, the Holder of this Security shall
not have the right to institute any proceeding, judicial or otherwise, with
respect to the Indenture, or for the appointment of a receiver or trustee, or
for any other remedy thereunder, unless such Holder shall have previously given
the Trustee written notice of a continuing Event of Default with respect to the
Securities of this series, the Holders of not less than 25% in principal amount
of the Securities of this series at the time Outstanding shall have made
written request to the Trustee to institute proceedings in respect of such
Event of Default as Trustee, such Holder or Holders shall have offered the
Trustee reasonable indemnity against the costs, expenses and liabilities to be
incurred in compliance with such request, and the Trustee, for 60 days after
its receipt of such notice shall not have received from the Holders of a
majority in principal amount of Securities of this series at the time
Outstanding a direction inconsistent with such request, and the Trustee shall
have failed to institute any such proceeding, for 60 days after receipt of such
notice, request and offer of indemnity. The foregoing shall not apply to any
suit instituted by the Holder of this Security for the enforcement of any
payment of principal hereof or any premium or interest hereon on or after the
respective due dates expressed herein.

No reference herein to
the Indenture and no provision of this Security or of the Indenture shall alter
or impair the obligation of the Corporation, which is absolute and
unconditional, to pay the principal of and premium, if any, and interest on
this Security at the times, place and rate, and in the coin or currency, herein
prescribed.

As provided in the
Indenture and subject to certain limitations therein set forth, the transfer of
this Security is registrable in the Security Register, upon surrender of this
Security for registration of transfer at the office or agency of the
Corporation in any place where the principal of and any premium and interest on
this Security are payable, duly endorsed by, or accompanied by a written
instrument of transfer in form satisfactory to the Corporation and the
Security Registrar duly executed by, the Holder hereof or his attorney duly
authorized in writing, and thereupon one or more new Securities of this
series and of like tenor, of authorized denominations and for the same
aggregate principal amount, will be issued to the designated transferee or
transferees.

The Securities of this
series are issuable only in registered form without coupons in
denominations of $1,000 and any integral multiple thereof. As provided in the
Indenture and subject to certain limitations therein set forth, Securities of
this series are exchangeable for a like aggregate principal amount of
Securities of this series and of like tenor of a different authorized
denomination, as requested by the Holder surrendering the same.

No service charge shall
be made for any such registration of transfer or exchange, but the Corporation
may require payment of a sum sufficient to cover any tax or other
governmental charge payable in connection therewith.

Prior to due presentment
of this Security for registration of transfer, the Corporation, the Trustee and
any agent of the Corporation or the Trustee may treat the Person in whose
name this Security is registered as the owner hereof for all purposes, whether
or not this Security be overdue, and neither the Corporation, the Trustee nor
any such agent shall be affected by notice to the contrary.

This Security shall be
governed by and construed in accordance with the laws of the State of New York
without regard to conflicts of laws principles thereof.

All terms used in this
Security which are defined in the Indenture and not defined herein shall have
the meanings assigned to them in the Indenture.

Section 204            Form of Legend for Global
Securities.

Unless otherwise
specified as contemplated by Section 301 for the Securities evidenced thereby,
every Global Security authenticated and delivered hereunder shall bear a legend
in substantially the following form (the “Global Securities Legend”):

 

 13
 

 

THIS SECURITY IS A GLOBAL
SECURITY WITHIN THE MEANING OF THE INDENTURE HEREINAFTER REFERRED TO AND IS
REGISTERED IN THE NAME OF A DEPOSITARY OR A NOMINEE THEREOF. THIS SECURITY MAY NOT
BE EXCHANGED IN WHOLE OR IN PART FOR A SECURITY REGISTERED, AND NO
TRANSFER OF THIS SECURITY IN WHOLE OR IN PART MAY BE REGISTERED, IN
THE NAME OF ANY PERSON OTHER THAN SUCH DEPOSITARY OR A NOMINEE THEREOF, EXCEPT
IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE.

Section 205            Form of Trustee’s
Certificate of Authentication.

This is one of the
Securities of the series designated therein referred to in the within-mentioned
Indenture.

 

	
  

  	
  U.S. Bank National Association,

  
	
   

  	
   

  
	
   

  	
  as Trustee

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Authorized
  Signatory

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  

 

ARTICLE III.

THE SECURITIES

Section 301            Amount Unlimited; Issuable in
Series.

The aggregate principal
amount of Securities which may be authenticated and delivered under this
Indenture is unlimited.

The Securities
may be issued in one or more series. There shall be established in or
pursuant to a Board Resolution and, subject to Section 303, set forth, or
determined in the manner provided, in an Officers’ Certificate, or established
in one or more indentures supplemental hereto, prior to the issuance of
Securities of any series:

(1)            the title of the Securities of the
series (which shall distinguish the Securities of the series from
Securities of any other series);

(2)            any limit upon the aggregate
principal amount of the Securities of the series which may be
authenticated and delivered under this Indenture (except for Securities
authenticated and delivered upon registration of transfer of, or in exchange
for, or in lieu of, other Securities of the series pursuant to Section 304,
305, 306, 906 or 1106 and except for any Securities which, pursuant to Section 303,
are deemed never to have been authenticated and delivered hereunder);

(3)            the Person to whom any interest on a
Security of the series shall be payable, if other than the Person in whose
name that Security (or one or more Predecessor Securities) is registered at the
close of business on the Regular Record Date for such interest;

(4)            the date or dates on which the
principal of any Securities of the series is payable or the method by
which such date shall be determined and the right, if any, to shorten or extend
the date on which the principal of any Securities of the series is payable
and the conditions to any such change;

(5)            the rate or rates at which any
Securities of the series shall bear interest, if any, or the method by
which such rate or rates shall be determined; the date or dates from which any
such interest shall accrue; the Interest Payment Dates on which any such
interest shall be payable; the manner (if any) of determination of such
Interest Payment Dates; and the Regular Record Date, if any, for any such
interest payable on any Interest Payment Date;

(6)            the right, if any, to extend the
interest payment periods and the terms of such extensions;

 

 14
 

 

(7)            the subordination, if any, of the
Securities;

(8)            the convertibility, if any, of the
Securities into shares of common stock, par value $.10 per share, of the
Guarantor;

(9)            the place or places where the
principal of and any premium and interest on any Securities of the
series shall be payable and whether, if acceptable to the Trustee, any
principal of such Securities shall be payable without presentation or surrender
thereof;

(10)          the period or periods within which, or
the date or dates on which, the price or prices at which and the terms and
conditions upon which any Securities of the series may be redeemed,
in whole or in part, at the option of the Corporation and, if other than by a
Board Resolution, the manner in which any election by the Corporation to redeem
the Securities shall be evidenced;

(11)          if other than denominations of $1,000
and any integral multiple thereof, the denominations in which any Securities of
the series shall be issuable;

(12)          if the amount of principal of or any
premium or interest on any Securities of the series may be determined
with reference to an index or pursuant to a formula, the manner in which such
amounts shall be determined;

(13)          if other than the currency of the
United States of America, the currency, currencies or currency units in which
the principal of or any premium or interest on any Securities of the
series shall be payable and the manner of determining the equivalent
thereof in the currency of the United States of America for any purpose,
including for purposes of the definition of “Outstanding” in Section 101;

(14)          if the principal of or any premium or
interest on any Securities of the series is to be payable, at the election
of the Corporation or the Holder thereof, in one or more currencies or currency
units other than that or those in which such Securities are stated to be
payable, the currency, currencies or currency units in which the principal of
or any premium or interest on such Securities as to which such election is made
shall be payable, the periods within which and the terms and conditions upon
which such election is to be made and the amount so payable (or the manner in
which such amount shall be determined);

(15)          if other than the entire principal
amount thereof, the portion of the principal amount of any Securities of the
series which shall be payable upon declaration of acceleration of the
Maturity thereof pursuant to Section 502;

(16)          if the principal amount payable at the
Stated Maturity of any Securities of the series will not be determinable
as of any one or more dates prior to the Stated Maturity, the amount which
shall be deemed to be the principal amount of such Securities as of any such
date for any purpose thereunder or hereunder, including the principal amount
thereof which shall be due and payable upon any Maturity other than the Stated
Maturity or which shall be deemed to be Outstanding as of any date prior to the
Stated Maturity (or, in any such case, the manner in which such amount deemed
to be the principal amount shall be determined);

(17)          if either or both of Sections 1302 and
1303 do not apply to any Securities of the series;

(18)          if applicable, that any Securities of
the series shall be issuable in whole or in part in the form of
one or more Global Securities and, in such case, the respective Depositary or
Depositaries for such Global Securities, the form of any legend or legends
which shall be borne by any such Global Security in addition to or in lieu of
that set forth in Section 204 and any circumstances in addition to or in
lieu of those set forth in Clause (2) of the last paragraph of Section 305
in which any such Global Security may be exchanged in whole or in
part for Securities registered, and any transfer of such Global Security
in whole or in part may be registered, in the name or names of
Persons other than the Depositary for such Global Security or a nominee
thereof;

(19)          any addition, modification or deletion
of any Events of Default or covenants provided with respect to any Securities
of the series and any change in the right of the Trustee or the requisite
Holders of such Securities to declare the principal amount thereof due and
payable pursuant to Section 502;

 

 15
 

 

(20)          any addition to or change in the
covenants set forth in Article Ten which applies to Securities of the
series; and

(21)          any other terms of the series.

All Securities of any one
series shall be substantially identical except as to denomination and
except as may otherwise be provided in or pursuant to the Board Resolution
referred to above and (subject to Section 303) set forth, or determined in
the manner provided, in the Officers’ Certificate referred to above or in any
such indenture supplemental hereto.

If any of the terms of
the series are established by action taken pursuant to a Board Resolution,
a copy of an appropriate record of such action shall be certified by the
Secretary or an Assistant Secretary of the Corporation and delivered to the
Trustee at or prior to the delivery of the Officers’ Certificate setting forth
the terms or the manner of determining the terms of the series.

With respect to
Securities of a series offered in a Periodic Offering, the Board
Resolution (or action taken pursuant thereto), Officers’ Certificate or
supplemental indenture referred to above may provide general terms or
parameters for Securities of such series and provide either that the
specific terms of particular Securities of such series shall be specified
in a Company Order or that such terms shall be determined by the Corporation in
accordance with other procedures specified in a Company Order as contemplated
by the third paragraph of Section 303.

Notwithstanding Section 301(2) herein
and unless otherwise expressly provided with respect to a series of
Securities, a series of Securities may from time to time be “re-opened”
and the aggregate principal amount of any such series of Securities
may be increased and additional Securities of such series may be
issued up to the maximum aggregate principal amount authorized with respect to
such series as increased.

Section 302            Denominations.

The Securities of each
series shall be issuable only in fully registered form without
coupons and only in such denominations as shall be specified as contemplated by
Section 301. In the absence of any such specified denomination with
respect to the Securities of any series, the Securities of such
series shall be issuable in denominations of $1,000 and any integral
multiple thereof.

Section 303            Execution, Authentication,
Delivery and Dating.

The Securities shall be
executed on behalf of the Corporation by an Officer. The signature of the
Officer on the Securities may be manual or facsimile.

Securities bearing the
manual or facsimile signatures of individuals who were at any time the proper
Officers of the Corporation shall bind the Corporation, notwithstanding that
such individuals or any of them have ceased to hold such offices prior to the
authentication and delivery of such Securities or did not hold such offices at
the date of such Securities.

At any time and from time
to time after the execution and delivery of this Indenture, the Corporation
may deliver Securities of any series executed by the Corporation to
the Trustee for authentication, together with a Company Order for the
authentication and delivery of such Securities, and the Trustee in accordance
with the Company Order shall authenticate and deliver such Securities,
provided, however, that in the case of Securities offered in a Periodic Offering,
the Trustee shall authenticate and deliver such Securities from time to time in
accordance with such other procedures (including, without limitation, the
receipt by the Trustee of electronic instructions from the Corporation or its
duly authorized agents, promptly confirmed in writing) acceptable to the
Trustee as may be specified by or pursuant to a Company Order delivered to
the Trustee prior to the time of the first authentication of Securities of such
series. If the form or terms of the Securities of the series have
been established by or pursuant to one or more Board Resolutions as permitted
by Sections 201 and 301, in authenticating such Securities, and accepting the
additional responsibilities under this Indenture in relation to such Securities,
the Trustee shall be entitled to receive, and (subject to Section 601)
shall be fully protected in relying upon, an Opinion of Counsel stating,

(1)            if the form of such Securities
has been established by or pursuant to Board Resolution as permitted by Section 201,
that such form has been established in conformity with the provisions of
this Indenture;

 

 16
 

 

(2)            if the terms of such Securities have
been, or in the case of Securities of a series offered in a Periodic
Offering, will be, established by or pursuant to Board Resolution as permitted
by Section 301, that such terms have been, or in the case of Securities of
a series offered in a Periodic Offering, will be, established in
conformity with the provisions of this Indenture, subject, in the case of
Securities of a series offered in a Periodic Offering, to any conditions
specified in such Opinion of Counsel; and

(3)            that such Securities, when
authenticated and delivered by the Trustee and issued by the Corporation in the
manner and subject to any conditions specified in such Opinion of Counsel, will
constitute valid and legally binding obligations of the Corporation enforceable
in accordance with their terms, subject to bankruptcy, insolvency, fraudulent
transfer, reorganization, moratorium and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles.

If such form or
terms have been so established, the Trustee shall not be required to
authenticate such Securities if the issue of such Securities pursuant to this
Indenture will affect the Trustee’s own rights, duties or immunities under the
Securities and this Indenture or otherwise in a manner which is not reasonably
acceptable to the Trustee.

Notwithstanding the
provisions of Section 301 and of the preceding paragraph, if all
Securities of a series are not to be originally issued at one time, it
shall not be necessary to deliver the Officers’ Certificate otherwise required
pursuant to Section 301 or the Company Order and Opinion of Counsel
otherwise required pursuant to such preceding paragraph at or prior to the
authentication of each Security of such series if such documents are
delivered at or prior to the authentication upon original issuance of the first
Security of such series to be issued.

With respect to
Securities of a series offered in a Periodic Offering, the Trustee
may rely, as to the authorization by the Corporation of any of such
Securities, the form and terms thereof and the legality, validity, binding
effect and enforceability thereof, upon the Opinion of Counsel and the other
documents delivered pursuant to Sections 201 and 301 and this Section, as
applicable, in connection with the first authentication of Securities of such
series.

Each Security shall be
dated the date of its authentication.

No Security shall be
entitled to any benefit under this Indenture or be valid or obligatory for any
purpose unless there appears on such Security a certificate of authentication
substantially in the form provided for herein executed by the Trustee by manual
signature of an authorized signatory, and such certificate upon any Security
shall be conclusive evidence, and the only evidence, that such Security has
been duly authenticated and delivered hereunder. Notwithstanding the foregoing,
if any Security shall have been authenticated and delivered hereunder but never
issued and sold by the Corporation, and the Corporation shall deliver such
Security to the Trustee for cancellation as provided in Section 309, for
all purposes of this Indenture such Security shall be deemed never to have been
authenticated and delivered hereunder and shall never be entitled to the
benefits of this Indenture.

Section 304            Temporary Securities.

Pending the preparation
of definitive Securities of any series, the Corporation may execute, and
upon Company Order the Trustee shall authenticate and deliver, temporary
Securities which are printed, lithographed, typewritten, mimeographed or
otherwise produced, in any authorized denomination, substantially of the tenor
of the definitive Securities in lieu of which they are issued and with such
appropriate insertions, omissions, substitutions and other variations as the
officers executing such Securities may determine, as evidenced by their
execution of such Securities.

If temporary Securities
of any series are issued, the Corporation will cause definitive Securities
of that series to be prepared without unreasonable delay. After the
preparation of definitive Securities of such series, the temporary Securities
of such series shall be exchangeable for definitive Securities of such
series, upon surrender of the temporary Securities of such series at the
office or agency of the Corporation in a Place of Payment for that series,
without charge to the Holder. Upon surrender for cancellation of any one or more
temporary Securities of any series, the Corporation shall execute and the
Trustee shall authenticate and deliver in exchange therefor one or more
definitive Securities of the same series, of any authorized denominations and
of like tenor and aggregate principal amount. Until so exchanged, the temporary
Securities of any series shall in all respects be entitled to the same
benefits under this Indenture as definitive Securities of such series and
tenor.

 

 17
 

 

Section 305            Registration, Registration of
Transfer and Exchange.

The Corporation shall
cause to be kept at the Corporate Trust Office of the Trustee a register (the
register maintained in such office or in any other office or agency of the
Corporation in a Place of Payment being herein sometimes referred to as the “Security
Register”) in which, subject to such reasonable regulations as it
may prescribe, the Corporation shall provide for the registration of
Securities and of transfers of Securities. The Trustee is hereby appointed “Security
Registrar” for the purpose of registering Securities and transfers of
Securities as herein provided.

Upon surrender for
registration of transfer of any Security of a series at the office or
agency of the Corporation in a Place of Payment for that series, the
Corporation shall execute, and the Trustee shall authenticate and deliver, in
the name of the designated transferee or transferees, one or more new
Securities of the same series, of any authorized denominations and of like
tenor and aggregate principal amount.

At the option of the
Holder, Securities of any series may be exchanged for other
Securities of the same series, of any authorized denominations and of like
tenor and aggregate principal amount, upon surrender of the Securities to be
exchanged at such office or agency. Whenever any Securities are so surrendered
for exchange, the Corporation shall execute, and the Trustee shall authenticate
and deliver, the Securities, which the Holder making the exchange is entitled
to receive.

All Securities issued
upon any registration of transfer or exchange of Securities shall be the valid
obligations of the Corporation evidencing the same debt, and entitled to the
same benefits under this Indenture, as the Securities surrendered upon such
registration of transfer or exchange.

Every Security presented
or surrendered for registration of transfer or for exchange shall (if so
required by the Corporation or the Trustee) be duly endorsed, or be accompanied
by a written instrument of transfer in form satisfactory to the Corporation
and the Security Registrar duly executed, by the Holder thereof or his attorney
duly authorized in writing.

No service charge shall
be assessed against the Holder for any registration of transfer or exchange of
Securities, but the Corporation may require payment of a sum sufficient to
cover any tax or other governmental charge that may be imposed in
connection with any registration of transfer or exchange of Securities, other
than exchanges pursuant to Section 304, 906 or 1106 not involving any
transfer.

If the Securities of any
series (or of any series and specified tenor) are to be redeemed, the
Corporation shall not be required (A) to issue, register the transfer of
or exchange any Securities of that series (or of that series and
specified tenor, as the case may be) during a period beginning at the
opening of business 15 days before the day of the mailing of a notice of
redemption of any such Securities selected for redemption and ending at the
close of business on the day of such mailing, or (B) to register the
transfer of or exchange any Security so selected for redemption in whole or in
part, except the unredeemed portion of any Security being redeemed in part.

The provisions of Clauses
(1), (2), (3) and (4) below shall apply only to Global Securities:

(1)            Each Global Security authenticated
under this Indenture shall be registered in the name of the Depositary
designated for such Global Security or a nominee thereof and delivered to such
Depositary or a nominee thereof or custodian therefor, and each such Global
Security shall constitute a single Security for all purposes of this Indenture.

(2)            Notwithstanding any other provision
in this Indenture, no Global Security may be exchanged in whole or in
part for Securities registered, and no transfer of a Global Security in
whole or in part may be registered, in the name of any Person other
than the Depositary for such Global Security or a nominee thereof unless (A) such
Depositary has notified the Corporation that it is unwilling or unable to
continue as Depositary for such Global Security and a successor Depositary has
not been appointed by the Corporation within 90 days of receipt by the
Corporation of such notification, (B) if at any time the Depositary ceases
to be a clearing agency registered under the Exchange Act at a time when the
Depositary is required to be so registered to act as such Depositary and no
successor Depositary shall have been appointed by the Corporation within 90
days after it became aware of such cessation, (C) the Corporation, in its
sole discretion, executes and delivers to the Trustee a Company Order to the
effect that such Global Security, together with all other Global Securities of
the same series, shall be exchangeable as described below, (D) an Event of
Default has occurred and is continuing with respect to the Securities of such
series, or (E) there shall exist such circumstances, if any, in addition
to or in lieu of the foregoing as have been specified for this purpose as
contemplated by Section 301. If any of the events described in clauses (A) through
(E) of the preceding sentence occur, the beneficial owners of interests in
the relevant Global Securities will be

 

 18
 

 

entitled to exchange those interests for
definitive Securities and, without unnecessary delay but in any event not later
than the earliest date on which those interests may be so exchanged, the
Corporation will deliver to the Trustee definitive Securities in such
form and denominations as are required by or pursuant to this Indenture,
and of the same series, containing identical terms and in an aggregate
principal amount equal to the principal amount of such Global Securities, such
Securities to be duly executed by the Corporation. On or after the earliest
date on which such beneficial interests may be so exchanged, such Global
Securities shall be surrendered from time to time by the Depositary as shall be
specified in the Company Order with respect thereto (which the Corporation
agrees to deliver), and in accordance with any instructions given to the
Trustee and the Depositary (which instructions shall be in writing but need not
be contained in or accompanied by an Officers’ Certificate or be accompanied by
an Opinion of Counsel), as shall be specified in the Company Order with respect
thereto to the Trustee, as the Corporation’s agent for such purpose, to be
exchanged, in whole or in part, for definitive Securities as described above
without charge. The Trustee shall authenticate and make available for delivery,
in exchange for each portion of such surrendered Global Security, a like
aggregate principal amount of definitive Securities of the same series of
authorized denominations and of like tenor as the portion of such Global
Security to be exchanged. Promptly following any such exchange in part, such
Global Security shall be returned by the Trustee to such Depositary or its
custodian. If a definitive Security is issued in exchange for any portion of a
Global Security after the close of business at the place where such exchange
occurs on or after (i) any Regular Record Date for such Security and
before the opening of business at that Place of Payment on the next Interest
Payment Date, or (ii) any Special Record Date for such Security and before
the opening of business at such Place of Payment on the related proposed date
for the payment of Defaulted Interest, as the case may be, interest shall
not be payable on such Interest Payment Date or proposed date for payment, as
the case may be, in respect of such definitive Security, but shall be
payable on such Interest Date or proposed date for payment, as the case
may be, only to the Person to whom interest in respect of such portion of
such Global Security shall be payable in accordance with the provisions of this
Indenture.

(3)            Subject to Clause (2) above,
any exchange or transfer of a Global Security for other Securities may be
made in whole or in part, and all Securities issued in exchange for or upon
transfer of a Global Security or any portion thereof shall be registered in
such names as the Depositary for such Global Security shall direct.

(4)            Every Security authenticated and
delivered upon registration of transfer of, or in exchange for or in lieu of, a
Global Security or any portion thereof, whether pursuant to this Section, Section 304,
306, 906 or 1106 or otherwise, shall be authenticated and delivered in the
form of, and shall be, a Global Security, unless such Security is
registered in the name of a Person other than the Depositary for such Global
Security or a nominee thereof.

Section 306            Mutilated, Destroyed, Lost and Stolen
Securities.

If any mutilated Security
is surrendered to the Trustee, the Corporation shall execute and the Trustee
shall authenticate and deliver in exchange therefor a new Security of the same
series and of like tenor and principal amount and bearing a number not
contemporaneously outstanding.

If there shall be
delivered to the Corporation and the Trustee (i) evidence to their
satisfaction of the destruction, loss or theft of any Security and (ii) such
security or indemnity as may be required by them to save each of them and
any agent of either of them harmless, then, in the absence of notice to the
Corporation or the Trustee that such Security has been acquired by a bona fide
purchaser, the Corporation shall execute and the Trustee shall authenticate and
deliver, in lieu of any such destroyed, lost or stolen Security, a new Security
of the same series and of like tenor and principal amount and bearing a
number not contemporaneously outstanding.

In case any such
mutilated, destroyed, lost or stolen Security has become or is about to become
due and payable, the Corporation in its discretion may, instead of issuing a
new Security, pay such Security.

Upon the issuance of any
new Security under this Section, the Corporation may require the payment
of a sum sufficient to cover any tax or other governmental charge that
may be imposed in relation thereto and any other reasonable expenses
(including the fees and expenses of the Trustee) connected therewith.

Every new Security of any
series issued pursuant to this Section in lieu of any destroyed, lost
or stolen Security shall constitute an original additional contractual
obligation of the Corporation, whether or not the destroyed, lost or stolen
Security shall be at any time enforceable by anyone, and shall be entitled to
all the benefits of this Indenture equally and proportionately with any and all
other Securities of that series duly issued hereunder.

 

 19
 

 

The provisions of this Section are
exclusive and shall preclude (to the extent lawful) all other rights and remedies
with respect to the replacement or payment of mutilated, destroyed, lost or
stolen Securities.

Section 307            Payment of Interest; Interest
Rights Preserved.

Except as otherwise
provided as contemplated by Section 301 with respect to any series of
Securities, interest on any Security which is payable, and is punctually paid
or duly provided for, on any Interest Payment Date shall be paid to the Person
in whose name that Security (or one or more Predecessor Securities) is
registered at the close of business on the Regular Record Date for such
interest, such payment to be made at the office or agency maintained for such
purpose pursuant to Section 1002; provided, however, that, at the option
of the Corporation, interest on any series of Securities that bear
interest may be paid (i) by check mailed to the address of the
Persons entitled thereto as such addresses shall appear on the Security
Register or (ii) by wire transfer at such place and to such account at a
banking institution in the United States as may be designated in writing
to the Trustee at least 15 days prior to the date for payment by the Persons
entitled thereto. Any such instructions given pursuant to clause (ii) shall
remain in effect until revoked by written notice to the Trustee at least 15
days prior to any payment date by the Person entitled to such payment.

Except as otherwise
provided as contemplated by Section 301 with respect to any series of
Securities, any interest on any Security of any series which is payable,
but is not punctually paid or duly provided for, on any Interest Payment Date
(herein called “Defaulted Interest”) shall forthwith cease to be payable to the
Holder on the relevant Regular Record Date by virtue of having been such
Holder, and such Defaulted Interest may be paid by the Corporation, at its
election in each case, as provided in Clause (1) or (2) below:

(1)           The Corporation may elect to
make payment of any Defaulted Interest to the Persons in whose names the
Securities of such series (or their respective Predecessor Securities) are
registered at the close of business on a Special Record Date for the payment of
such Defaulted Interest, which shall be fixed in the following manner. The
Corporation shall notify the Trustee in writing of the amount of Defaulted
Interest proposed to be paid on each Security of such series and the date
of the proposed payment, and at the same time the Corporation shall deposit
with the Trustee an amount of money equal to the aggregate amount proposed to
be paid in respect of such Defaulted Interest or shall make arrangements
satisfactory to the Trustee for such deposit prior to the date of the proposed
payment, such money when deposited to be held in trust for the benefit of the
Persons entitled to such Defaulted Interest as in this Clause provided.
Thereupon the Trustee shall fix a Special Record Date for the payment of such
Defaulted Interest which shall be not more than 15 days and not less than 10
days prior to the date of the proposed payment and not less than 10 days after
the receipt by the Trustee of the notice of the proposed payment. The Trustee
shall promptly notify the Corporation of such Special Record Date and, in the
name and at the expense of the Corporation, shall cause notice of the proposed
payment of such Defaulted Interest and the Special Record Date therefor to be
given to each Holder of Securities of such series in the manner set forth
in Section 106, not less than 10 days prior to such Special Record Date.
Notice of the proposed payment of such Defaulted Interest and the Special
Record Date therefor having been so mailed, such Defaulted Interest shall be
paid to the Persons in whose names the Securities of such series (or their
respective Predecessor Securities) are registered at the close of business on
such Special Record Date and shall no longer be payable pursuant to the
following Clause (2).

(2)           The Corporation may make payment
of any Defaulted Interest on the Securities of any series in any other
lawful manner not inconsistent with the requirements of any securities exchange,
if any, on which such Securities may be listed, and upon such notice as
may be required by such exchange, if, after notice given by the
Corporation to the Trustee of the proposed payment pursuant to this Clause,
such manner of payment shall be deemed practicable by the Trustee.

Subject to the foregoing
provisions of this Section, each Security delivered under this Indenture upon
registration of transfer of or in exchange for or in lieu of any other Security
shall carry the rights to interest accrued and unpaid, and to accrue, which
were carried by such other Security.

Section 308            Persons Deemed Owners.

Prior to due presentment
of a Security for registration of transfer, the Corporation, the Trustee and
any agent of the Corporation or the Trustee may treat the Person in whose
name such Security is registered as the owner of such Security for the purpose
of receiving payment of principal of and any premium and (subject to Section 307)
any interest on such Security

 

 20
 

 

and for all other
purposes whatsoever, whether or not such Security be overdue, and neither the
corporation, the Trustee or any agent of the Corporation or the Trustee shall
be affected by notice to the contrary.

Section 309            Cancellation.

All Securities
surrendered for payment, redemption, registration of transfer or exchange
shall, if surrendered to any Person other than the Trustee, be delivered to the
Trustee and shall be promptly canceled by it. The Corporation may at any
time deliver to the Trustee for cancellation any Securities previously
authenticated and delivered hereunder which the Corporation may have
acquired in any manner whatsoever, and may deliver to the Trustee (or to
any other Person for delivery to the Trustee) for cancellation any Securities
previously authenticated hereunder which the Corporation has not issued and
sold, and all Securities so delivered shall be promptly canceled by the
Trustee. No Securities shall be authenticated in lieu of or in exchange for any
Securities canceled as provided in this Section, except as expressly permitted
by this Indenture. All canceled Securities held by the Trustee shall be
disposed of as directed by a Company Order; provided, however, that the Trustee
shall not be required to destroy such canceled Securities.

Section 310            Computation of Interest.

Except as otherwise
specified as contemplated by Section 301 for Securities of any series,
interest on the Securities of each series shall be computed on the basis
of a 360-day year of twelve 30-day months.

Section 311            CUSIP Numbers.

The Corporation in
issuing the Securities may use “CUSIP” numbers (if then generally in use),
and, if so, the Trustee shall use “CUSIP” numbers in notices of redemption as a
convenience to Holders; provided that any such notice may state that no
representation is made as to the correctness of such numbers either as printed
on the Securities or as contained in any notice of a redemption and that
reliance may be placed only on the other identification numbers printed on
the Securities, and any such redemption shall not be affected by any defect in
or omission of such numbers. The Corporation shall promptly notify the Trustee
of any change in the “CUSIP” numbers.

Section 312            Mandatory Disposition of Notes
Pursuant to Gaming Laws.

Each Holder and
beneficial owner, by accepting or otherwise acquiring an interest in the
Securities, shall be deemed to have agreed that if the Gaming Authority of any
jurisdiction in which the Corporation or any of its subsidiaries conducts or
proposes to conduct gaming requires that a Person who is a Holder or beneficial
owner must be licensed, qualified or found suitable under the applicable Gaming
Laws, such Holder or beneficial owner shall apply for a license, qualification
or a finding of suitability within the required time period. If such Person
fails to apply or become licensed or qualified or is found unsuitable, then the
Corporation shall have the right, at its option, (i) to require such
Person to dispose of its Securities or beneficial interest therein within 30
days of receipt of notice of the Corporation’s election or such earlier date as
may be requested or prescribed by such Gaming Authority or (ii) to
redeem such Securities at a redemption price equal to the lesser of (a) such
Person’s cost or (b) 100% of the principal amount thereof, plus accrued
and unpaid interest to the earlier of the redemption date and the date of the
finding of unsuitability, which may be less than 30 days following the
notice of redemption if so requested or prescribed by the Gaming Authority. The
Corporation shall notify the Trustee in writing of any such redemption as soon
as practicable. The Corporation shall not be responsible for any costs or
expenses any such Holder or beneficial owner may incur in connection with
its application for a license, qualification or a finding of suitability.

ARTICLE IV.

SATISFACTION AND
DISCHARGE

Section 401            Satisfaction and Discharge of
Indenture.

This Indenture shall upon
Company Request cease to be of further effect with respect to any
series of Securities specified in such Company Request (except as to those
surviving rights and obligations specified below), and the Trustee, at the
expense of the Corporation, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture as to such series, when

(1)            either

 

 21
 

 

(a)             all Securities of such
series theretofore authenticated and delivered (other than (i) Securities
of such series which have been destroyed, lost or stolen and which have
been replaced or paid as provided in Section 306 and (ii) Securities of
such series for whose payment money has theretofore been deposited in
trust or segregated and held in trust by the Corporation and thereafter repaid
to the Corporation or discharged from such trust, as provided in Section 1003)
have been delivered to the Trustee for cancellation; or

(b)            all such Securities of such
series not theretofore delivered to the Trustee for cancellation

(i)            have become due and payable, or

(ii)           will become due and payable at their
Stated Maturity within one year, or

(iii)          are to be called for redemption within
one year under arrangements satisfactory to the Trustee for the giving of
notice of redemption by the Trustee in the name, and at the expense, of the
Corporation, and the Corporation, in the case of (b) above, has deposited
or caused to be deposited with the Trustee as trust funds in trust for the
purpose money in an amount sufficient to pay and discharge, and which shall be
applied by the Trustee to pay and discharge, the entire indebtedness on such
Securities not theretofore delivered to the Trustee for cancellation, for
principal and any premium and interest to the date of such deposit (in the case
of Securities which have become due and payable) or to the Stated Maturity or
Redemption as the case may be;

(2)            the Corporation has paid or caused
to be paid all other sums payable hereunder by the Corporation; and

(3)            the Corporation has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
all conditions precedent herein provided for relating to the satisfaction and
discharge of this Indenture as to such series have been complied with.

Notwithstanding the
satisfaction and discharge of this Indenture with respect to any series of
Securities, the obligations of the Corporation to the Trustee under Section 607
and, if money shall have been deposited with the Trustee pursuant to subclause (b) of
Clause (1) of this Section, the obligations of the Corporation and the
Trustee with respect to the Securities of such series under Sections 304,
305, 306, 402, 1002, 1003 and [1306] shall survive such satisfaction and
discharge.

Section 402            Application of Trust Money.

Subject to the provisions
of the last paragraph of Section 1003, all money deposited with the
Trustee pursuant to Section 401 shall be held in trust and applied by it,
in accordance with the provisions of the Securities and this Indenture, to the
payment, either director or though any Paying Agent (including the Corporation
acting as its own Paying Agent) as the Trustee may determine, to the Persons
entitled thereto, of the principal and any premium and interest for whose
payment such money has been deposited with the Trustee.

ARTICLE V.

REMEDIES

Section 501            Events of Default.

“Event of Default,”
wherever used herein with respect to Securities of any series, means any one of
the following events (whatever the reason for such Event of Default and whether
it shall be voluntary or involuntary or be effected by operation of law or
pursuant to any judgment, decree or order of any court or any order, rule or
regulation of any administrative or governmental body), unless it is
specifically deleted or modified in the Board Resolution, an Officers’
Certificate delivered to the Trustee prior to the issuance of such
series of Securities or supplemental indenture under which such
series of Securities is issued or has been deleted or modified in an
indenture supplemental hereto:

 

 22

 

(1)           default in the
payment of any interest upon any Security of that series when it becomes
due and payable, and continuance of such default for a period of 30 days
(unless the entire amount of such payment is deposited by the Corporation with
the Trustee or with a Paying Agent prior to the expiration of such period of 30
days); provided, however, that if the Corporation is permitted by the terms of
the Securities of such series to defer the payment in question, the date
on which such payment is due and payable shall be the date on which the
Corporation is required to make payment following such deferral, if such
deferral has been elected pursuant to the terms of the Securities; or

(2)           default in the
payment of the principal of or any premium on any Security of that
series at its Maturity, upon redemption or otherwise; or

(3)           default in the
performance, or breach, of any covenant or warranty of the Corporation or the
Guarantor in this Indenture (other than a covenant or warranty a default in
whose performance or whose breach is elsewhere in this Section specifically
dealt with or which has expressly been included in this Indenture solely for
the benefit of a series of Securities other than that series) or the
Securities of that series, and continuance of such default or breach for a
period of 60 days after there has been given, by registered or certified mail,
to the Corporation or the Guarantor by the Trustee or to the Corporation, the
Guarantor and the Trustee by the Holders of at least 25% in principal amount of
the Outstanding Securities of that series a written notice specifying such
default or breach and requiring it to be remedied and stating that such notice
is a “Notice of Default” hereunder; or

(4)           the acceleration of
the maturity of any Indebtedness of the Corporation (other than Non-recourse
Indebtedness), at any one time, in an amount in excess of the greater of (i) $25
million and (ii) 5% of Consolidated Net Tangible Assets, if such
acceleration is not annulled within 30 days after written notice to the
Corporation by the Trustee and the Holders of at least 25% in principal amount
of the Outstanding Securities of that series; or

(5)           the Corporation or
any of its Significant Subsidiaries pursuant to or within the meaning of any
Bankruptcy Law:

(a)           commences a voluntary case,

(b)           consents to the entry of an order for
relief against it in an involuntary case,

(c)           consents to the appointment of a
Custodian of it or for all or substantially all of its property,

(d)           makes a general assignment for the
benefit of its creditors, or

(e)           generally is not paying its debts as
the same become due; or

(6)           a court of competent
jurisdiction enters an order or decree under any Bankruptcy Law that:

(a)           is for relief against the Corporation
or any of its Significant Subsidiaries in an involuntary case,

(b)           appoints a Custodian of the
Corporation or any of its Significant Subsidiaries or for all or substantially
all of its property, or

(c)           orders the liquidation of the
Corporation or any of its Significant Subsidiaries, and the order or decree
remains unstayed and in effect for 60 consecutive days; or

(7)           any
other Event of Default provided with respect to Securities of that series.

 

 23
 

 

Section 502            Acceleration of Maturity;
Rescission and Annulment.

If an Event of Default
with respect to Securities of any series at the time Outstanding occurs
and is continuing (other than an Event of Default referred to in Section 501(5) and
(6), then in every such case the Trustee or the Holders of not less than 25% in
principal amount of the Outstanding Securities of that
series may declare the principal amount of all the Securities of that
series (or, if any Securities of that series are Original Issue
Discount Securities, such portion of the principal amount of such Securities as
may be specified by the terms thereof) and accrued and unpaid interest, if
any, thereon to be due and payable immediately, by a notice in writing to the
Corporation (and to the Trustee if given by Holders), and upon any such
declaration such principal amount (or specified amount) and accrued and unpaid
interest shall become immediately due and payable. If an Event of Default
specified in Section 501(5) or (6) shall occur, the principal
amount (or specified amount) of and accrued and unpaid interest, if any, on all
Outstanding Securities shall ipso facto become
and be immediately due and payable without any declaration or other act on the
part of the Trustee or any Holder.

At any time after such a
declaration of acceleration with respect to Securities of any series has been
made and before a judgment or decree for payment of the money due has been
obtained by the Trustee as hereinafter in this Article provided, the Event
of Default giving rise to such declaration of acceleration shall, without
further act, be deemed to have been waived, and such declaration and its
consequences shall, without further act, be deemed to have been rescinded and
annulled, if

(1)           the
Corporation has paid or deposited with the Trustee a sum sufficient to pay

(a)           all
overdue interest on all Securities of that series which has become due
otherwise than by such declaration of acceleration,

(b)           the
principal of (and premium, if any, on) any Securities of that series which
have become due otherwise than by such declaration of acceleration and any interest
thereon at the rate or rates prescribed therefor in such Securities or, if no
such rate or rates are so provided, at the rate or respective rates, as the
case may be, of interest borne by such Securities,

(c)           to
the extent that payment of such interest is lawful, interest upon overdue
interest which has become due otherwise than by such declaration of
acceleration at the rate or rates prescribed therefor in such Securities or, if
no such rate or rates are so provided, at the rate or respective rates, as the
case may be, of interest borne by such Securities, and

(d)           all
sums paid or advanced by the Trustee hereunder and the reasonable compensation,
expenses, disbursements and advances of the Trustee, its agents and counsel and
any other amounts due the Trustee under Section 607; and

(2)           all
Events of Default with respect to Securities of that series, other than the
non-payment of the principal of or interest on Securities of that
series which have become due solely by such declaration of acceleration,
have been cured or waived as provided in Section 513.

No such rescission shall
affect any subsequent default or impair any right consequent thereon.

Section 503            Collection of Indebtedness and
Suits for Enforcement by Trustee.

The Corporation covenants
that if

(1)           default
is made in the payment of any interest on any Security when such interest
becomes due and payable and such default continues for period of 30 days, or

(2)           default
is made in the payment of the principal of (or premium, if any, on) any Security
at the Maturity thereof,

 

 24
 

 

the Corporation will,
upon demand of the Trustee, pay to it, for the benefit of the Holders of such
Securities, the whole amount then due and payable on such Securities for
principal and any premium and interest and, to the extent that payment of such
interest shall be legally enforceable, interest on any overdue principal and
premium and on any overdue interest, at the rate or rates prescribed therefor
in such Securities or, if no such rate or rates are so provided, at the rate or
respective rates, as the case may be, of interest borne by such
Securities, and, in addition thereto, such further amount as shall be
sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Trustee,
its agents and counsel, and any other amounts due the Trustee under Section 607.

If the Corporation fails
to pay the money it is required to pay the Trustee pursuant to the preceding
paragraph forthwith upon demand of the Trustee, the Trustee, in its own name
and as trustee of an express trust, may institute a judicial proceeding
for the collection of the money so due and unpaid, and may prosecute such
proceeding to judgment or final decree, and may enforce the same against the
Corporation or any other obligor upon such Securities endorsed thereon and
collect the moneys adjudged or decreed to be payable in the manner provided by
law out of the property of the Corporation or any other obligor upon such
Securities, wherever situated.

If an Event of Default
with respect to Securities of any series occurs and is continuing, the
Trustee may in its discretion proceed to protect and enforce its rights
and the rights of the Holders of Securities of such series by such appropriate
judicial proceedings as the Trustee shall deem most effectual to protect and
enforce any such rights, whether for the specific enforcement of any covenant
or agreement in this Indenture or in aid of the exercise of any power granted
herein, or to enforce any other proper remedy.

Section 504            Trustee May File Proofs of
Claim.

In case of any judicial
proceeding relative to the Corporation (or any other obligor upon the
Securities), its property or its creditors, the Trustee (irrespective of
whether the principal of such Securities shall then be due and payable as
therein expressed or by declaration of acceleration or otherwise and
irrespective of whether the Trustee shall have made any demand on the
Corporation for the payment of overdue principal, premium, if any, or interest)
shall be entitled and empowered, by intervention in such proceeding or
otherwise, to take any and all actions authorized under the Trust Indenture Act
in order to have claims of the Holders and the Trustee allowed in any such
proceeding. In case of the pendency of any receivership, insolvency,
liquidation, bankruptcy, reorganization adjustment, composition or other
similar judicial proceeding relative to the Corporation, the Trustee
(irrespective of whether the principal of such Securities shall then be due and
payable as therein expressed or by declaration of acceleration or otherwise and
irrespective of whether the Trustee shall have made any demand on the
Corporation for the payment of overdue principal, premium, if any, or interest)
shall be authorized to file and prove a claim for the whole amount of principal
(and premium, if any) and interest owing and unpaid in respect of the
Securities of such series and to file such other papers or documents as
may be necessary or advisable in order to have the claims of the Trustee
(including any claim for the reasonable compensation, expenses, disbursements
and advances of the Trustee, its agents and counsel) and of the Holders of such
Securities allowed in such judicial proceeding, to collect and receive any
moneys or other property payable or deliverable on any such claims and to
distribute the same; and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial
proceeding is hereby authorized by each Holder to make such payments to the
Trustee and, in the event that the Trustee shall consent to the making of such
payments directly to the Holders, to pay to the Trustee any amount due it for
the reasonable compensation, expenses, disbursements and advances of the
Trustee, its agents and counsel, and any other amounts due the Trustee under Section 607.

No provision of this
Indenture shall be deemed to authorize the Trustee to authorize or consent to
or accept or adopt on behalf of any Holder any plan of reorganization,
arrangement, adjustment or composition affecting the Securities or the rights
of any Holder thereof or to authorize the Trustee to vote in respect of the
claim of any Holder in any such proceeding; provided, however, that the Trustee
may, on behalf of the Holders, vote for the election of a trustee in bankruptcy
or similar official and be a member of a creditors’ or other similar committee.

Section 505            Trustee May Enforce Claims
Without Possession of Securities.

All rights of action and
claims under this Indenture or the Securities may be prosecuted and
enforced by the Trustee without the possession of any of the Securities or the
production thereof in any proceeding relating thereto, and any such proceeding
instituted by the Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment shall, after provision for the
payment of the reasonable compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, be for the ratable benefit of the Holders
of the Securities in respect of which such judgment has been recovered.

 

 25
 

 

Section 506            Application of Money Collected.

Any money collected by
the Trustee pursuant to this Article shall be applied in the following
order, at the date or dates fixed by the Trustee and, in case of the
distribution of such money on account of principal or any premium or interest,
upon presentation of the Securities and the notation thereon of the payment if
only partially paid and upon surrender thereof if fully paid:

First:  To the payment of all amounts due the Trustee
under Section 607;

Second:  To the payment of the amounts then due and
unpaid for principal of and any premium and interest on the Securities in
respect of which or for the benefit of which such money has been collected,
ratably, without preference or priority of any kind, according to the aggregate
amounts due and payable on such Securities for principal and any premium and
interest; and

Third:  To the payment of the balance, if any, to the
Corporation or any other Person or Persons legally entitled thereto.

Section 507            Limitation on Suits.

No Holder of any Security
of any series shall have any right to institute any proceeding, judicial
or otherwise, with respect to this Indenture, or for the appointment of a
receiver or trustee, or for any other remedy hereunder, unless:

(1)           such Holder has previously given
written notice to the Trustee of a continuing Event of Default with respect to
the Securities of that series;

(2)           the Holders of not less than 25% in
principal amount of the Outstanding Securities of that series shall have
made written request to the Trustee to institute proceedings in respect of such
Event of Default in its own name as Trustee hereunder;

(3)           such Holder or Holders have offered
to the Trustee reasonable indemnity against the costs, expenses and liabilities
to be incurred in compliance with such request;

(4)           the Trustee for 60 days after its
receipt of such notice, request and offer of indemnity has failed to institute
any such proceeding; and

(5)           no direction inconsistent with such
written request has been given to the Trustee during such 60-day period
by the Holders of a majority in principal amount of the Outstanding Securities
of that series;

it being understood and
intended that no one or more of such Holders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to
affect, disturb or prejudice the rights of any other of such Holders, or to
obtain or to seek to obtain priority or preference over any other of such
Holders or to enforce any right under this Indenture, except in the manner
herein provided and for the equal and ratable benefit of all of such Holders.

Section 508            Unconditional Right of Holders to
Receive Principal, Premium and Interest.

Notwithstanding any other
provision in this Indenture, the Holder of any Security shall have the right,
which is absolute and unconditional, to receive payment of the principal of and
any premium and (subject to Section 307) interest on such Security on the
respective Stated Maturities expressed in such Security (or, in the case of
redemption, on the Redemption Date) and to institute suit for the enforcement
of any such payment, and such rights shall not be impaired without the consent
of such Holder.

Section 509            Restoration of Rights and
Remedies.

If the Trustee or any
Holder has instituted any proceeding to enforce any right or remedy under this
Indenture and such proceeding has been discontinued or abandoned for any
reason, or has been determined adversely to the Trustee or to such Holder, then
and in every such case, subject to any determination in such proceeding, the
Corporation, the Trustee and the Holders shall be restored severally and
respectively to their former positions hereunder and thereafter all rights and
remedies of the Trustee and the Holders shall continue as though no such
proceeding had been instituted.

 

 26
 

 

Section 510            Rights and Remedies Cumulative.

Except as otherwise
provided with respect to the replacement or payment of mutilated, destroyed,
lost or stolen Securities in the last paragraph of Section 306, no right
or remedy herein conferred upon or reserved to the Trustee or to the Holders is
intended to be exclusive of any other right or remedy, and every right and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise. The assertion or employment of any right or
remedy hereunder, or otherwise, shall not prevent the concurrent assertion or
employment of any other appropriate right or remedy.

Section 511            Delay or Omission Not Waiver.

No delay or omission of
the Trustee or of any Holder of any Securities to exercise any right or remedy
accruing upon any Event of Default shall impair any such right or remedy or
constitute a waiver of any such Event of Default or an acquiescence therein.

Every right and remedy
given by this Article or by law to the Trustee or to the Holders
may be exercised from time to time, and as often as may be deemed
expedient, by the Trustee or by the Holders, as the case may be.

Section 512            Control By Holders.

The Holders of a majority
in principal amount of the Outstanding Securities of any series shall have
the right to direct the time, method and place of conducting any proceeding for
any remedy available to the Trustee, or exercising any trust or power conferred
on the Trustee, with respect to the Securities of such series; provided that:

(1)           such direction shall not be in
conflict with any rule of law or with this Indenture,

(2)           the Trustee may take any other
action deemed proper by the Trustee which is not inconsistent with such
direction,

(3)           such direction is not unduly
prejudicial to the rights of other Holders of Securities of that
series not joining in that action;

(4)           subject to the provisions of Section 501,
the Trustee shall have the right to decline to follow any such direction if the
Trustee in good faith shall, by a Responsible Officer of the Trustee, determine
that the proceeding so directed would involve the Trustee in personal
liability.

Section 513            Waiver of Past Defaults.

The Holders of at least a
majority in principal amount of the Outstanding Securities of any
series with respect to which any default under the Indenture shall have
occurred and be continuing (voting as one class) may, on behalf of the Holders
of all Securities of such series, waive such past default under the Indenture
and its consequences, except a default in the payment of the principal of or
any premium or interest on any Security of such series  (a “Payment
Default”) (provided, however, that the Holders of a majority in principal
amount of the Outstanding Securities of such series may rescind an
acceleration and its consequences (other than an acceleration relating to a
Payment Default), including any related payment default that resulted from such
acceleration).

Upon any such waiver,
such default shall cease to exist and be deemed not to have occurred, and any
Event of Default arising therefrom shall be deemed to have been cured and not
to have occurred, for every purpose of this Indenture; but no such waiver shall
extend to any subsequent or other default or impair any right consequent
thereon.

Section 514            Undertaking for Costs.

All parties to this
Indenture agree, and each Holder of any Security by his acceptance thereof such
be deemed to have agreed, that any court may in its discretion require, in
any suit for the enforcement of any right or remedy under this Indenture, or in
any suit against the Trustee for any action taken or omitted by it as Trustee,
the filing by any party litigant in such suit of an undertaking to pay the
costs of such suit, and that such court may in its discretion assess
reasonable costs, including reasonable attorneys’ fees and disbursements,
against any party litigant in such suit having due regard to the merits and
good faith of the claims or defenses made by such party litigant, but the
provisions of this Section 514 shall not apply to any suit instituted by
the Trustee, to any suit instituted by any Holder, or group of Holders, holding
in the aggregate more 

 

 

 27
 

 

than 10% in principal
amount of Outstanding Securities of any series, or to any suit instituted by
any Holder for the enforcement of the payment of the principal of (or premium,
if any) or interest, if any, on any Security on or after the respective Stated
Maturities expressed in such Security (or, in the case of redemption, on or
after the Redemption Date).

Section 515            Waiver of Stay or Extension Laws.

The Corporation covenants
(to the extent that it may lawfully do so) that it will not at any time
insist upon, or plead, or in any manner whatsoever claim or take the benefit or
advantage of, any stay or extension law or any usury law or Usury wherever
enacted, now or at any time hereafter in force, which may affect the
covenants or the performance of this Indenture; and the Corporation (to the
extent that it may lawfully do so) hereby expressly waives all benefit or
advantage of any such law and covenants that it will not, by resort to any such
law, hinder, delay or impede the execution of any power herein granted to the
Trustee, but will suffer and permit the execution of every such power as though
no such law had been enacted.

ARTICLE VI.

THE TRUSTEE

Section 601            Certain Duties and
Responsibilities.

(1)           If an Event of Default has occurred
and is continuing, the Trustee shall exercise the rights and powers vested in
it by this Indenture and use the same degree of care and skill in its exercise
as a prudent Person would exercise or use under the circumstances in the
conduct of such Person’s own affairs.

(2)           Except during the continuance of an
Event of Default:

(a)           The Trustee need perform only
those duties that are specifically set forth in this Indenture and no others.

(b)           In the absence of bad faith on its
part, the Trustee may conclusively rely, as to the truth of the statements
and the correctness of the opinions expressed therein, upon Officers’
Certificates or Opinions of Counsel furnished to the Trustee and conforming to
the requirements of this Indenture; however, in the case of any such
Officers’ Certificates or Opinions of Counsel which by any provisions hereof
are specifically required to be furnished to the Trustee, the Trustee shall examine
such Officers’ Certificates and Opinions of Counsel to determine whether or not
they conform to the requirements of this Indenture.

(3)           The Trustee may not be relieved
from liability for its own negligent action, its own negligent failure to act
or its own willful misconduct, except that:

(a)           This paragraph does not limit the
effect of paragraph (2) of this Section.

(b)           The Trustee shall not be liable for
any error of judgment made in good faith by a Responsible Officer, unless it is
proved that the Trustee was negligent in ascertaining the pertinent facts.

(c)           The Trustee shall not be liable with
respect to any action taken, suffered or omitted to be taken by it with respect
to the Securities of any series in good faith in accordance with the
direction of the Holders of a majority in principal amount of the Outstanding
Securities of any series relating to the time, method and place of
conducting any proceeding for any remedy available to the Trustee, or
exercising any trust or power conferred upon the Trustee, under this Indenture
with respect to the Securities of such series.

(4)           Every provision of this Indenture
that in any way relates to the Trustee is subject to paragraph (1), (2) and
(3) of this Section.

 

 28
 

 

(5)           The
Trustee may refuse to perform any duty or exercise any right or power
unless it receives indemnity satisfactory to it against any loss, liability or
expense.

(6)           No provision of this Indenture shall
require the Trustee to risk its own funds or otherwise incur any financial
liability in the performance of any of its duties, or in the exercise of any of
its rights or powers, if it shall have reasonable grounds for believing that
repayment of such funds or adequate indemnity against such risk is not
reasonably assured to it.

(7)           The Paying Agent and the Security
Registrar shall be entitled to the protections, immunities and standard of care
as are set forth in paragraphs (1), (2) and (3) of this Section with
respect to the Trustee.

Section 602            Notice of Defaults.

If a default occurs and
is continuing hereunder with respect to Securities of any series and if it
is known to a Responsible Officer of the Trustee, the Trustee shall mail to
each Holder of Securities of such series a notice of such default within
90 days after it occurs or, if later, after a Responsible Officer of the
Trustee has knowledge of such default. Except in the case of a default in
payment of principal of or interest on any series of Securities, the
Trustee may withhold the notice if and so long as its corporate trust
committee or a committee of its Responsible Officers in good faith determines
that withholding the notice is in the interests of the Holders of Securities of
such series. For the purpose of this Section, the term “default” means any
event which is, or after notice or lapse of time or both would become, an Event
of Default with respect to Securities of such series.

Section 603            Certain Rights of Trustee.

Subject to the provisions
of Section 601:

(1)           the Trustee may rely and shall
be protected in acting or refraining from acting upon any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document (whether in its original or facsimile
form) believed by it to be genuine and to have been signed or presented by the
proper party or parties;

(2)           whenever in the administration of
this Indenture the Trustee shall deem it desirable that a matter be proved or
established prior to taking, suffering or omitting any action hereunder, the
Trustee (unless other evidence be herein specifically prescribed) may, in the
absence of bad faith on its part, rely upon an Officers’ Certificate;

(3)           the Trustee may consult with
counsel of its selection and the advice of such counsel or any Opinion of
Counsel shall be full and complete authorization and protection in respect of
any action taken, suffered or omitted by it hereunder in good faith and in
reliance thereon;

(4)           prior to the occurrence of an Event
of Default, the Trustee shall undertake to perform only such duties as are
specifically set forth in this Indenture; and in case an Event of Default has
occurred and is continuing with respect to the Securities of any series, the
Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Indenture with respect to the Securities of such series,
whether at the request or direction of any of the Holders thereof or pursuant
to any other provision in this Indenture, unless such Holders shall have
offered to the Trustee reasonable security or indemnity against the costs,
expenses and liabilities which might be incurred by it in compliance with such
request or direction;

(5)           the Trustee shall not be bound to
make any investigation into the facts or matters stated in any resolution,
certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, bond, debenture, note, other evidence of
indebtedness or other paper or document, but the Trustee, in its discretion,
may make such further inquiry or investigation into such facts or matters
as it may see fit, and, if the Trustee shall determine to make such
further inquiry or investigation, it shall be entitled, at reasonable times
previously notified to the Corporation, to examine the relevant books, records
and premises of the Corporation, personally or by agent or attorney;

(6)           the Trustee may execute any of
the trusts or powers hereunder or perform any duties hereunder either
directly or by or through agents or attorneys and the Trustee shall not be
responsible for any misconduct or negligence on the part of any agent or
attorney appointed with due care by it hereunder;

 

 29
 

 

(7)           the
Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers;

(8)           except with respect to Section 401,
the Trustee shall have no duty to inquire as to the performance of the Company
with respect to the covenants contained in Article X, and in addition, the
Trustee shall not be deemed to have knowledge of an Event of Default except (i) any
default or Event of Default occurring pursuant to Sections 1001, 501(1) or
501(2) or (ii) any default or Event of Default of which the Trustee
shall have received written notification or obtained actual knowledge; and

(9)           delivery of reports, information and
documents to the Trustee under Section 703 is for informational purposes
only and the Trustee’s receipt of the foregoing shall not constitute
constructive notice of any information contained therein or determinable from
information contained therein, including the Corporation’s compliance with any
of their covenants hereunder (as to which the Trustee is entitled to rely
exclusively on Officers’ Certificates).

Section 604            Not Responsible for Recitals or
Issuance of Securities.

The recitals contained
herein and in the Securities, except the Trustee’s certificates of
authentication, shall be taken as the statements of the Corporation, and the
Trustee shall not assume any responsibility for their correctness. The Trustee
makes no representations as to the validity or sufficiency of this Indenture or
of the Securities. The Trustee shall not be accountable for the use or
application by the Corporation of Securities or the proceeds thereof.

Section 605            May Hold Securities.

The Trustee, any Paying
Agent, any Security Registrar or any other agent of the Corporation, in its
individual or any other capacity, may become the owner or pledgee of
Securities and, subject to Sections 608 and 613, may otherwise deal with
the Corporation with the same rights it would have if it were not Trustee,
Paying Agent, Security Registrar or such other agent.

Section 606            Money Held in Trust.

Money held by the Trustee
in trust hereunder need not be segregated from other funds except to the extent
required by law. The Trustee shall be under no liability for interest on any
money received by it hereunder except as otherwise agreed in writing with the
Corporation.

Section 607            Compensation and Reimbursement.

The Corporation agrees

(1)           to pay to the
Trustee from time to time such reasonable compensation for all services
rendered by it hereunder as shall be agreed to in writing between the
Corporation and the Trustee dated not later than the date hereof (which compensation
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

(2)           except as otherwise
expressly provided herein, to reimburse the Trustee upon its request for all
reasonable expenses, disbursements and advances incurred or made by the Trustee
in accordance with any provision of this Indenture (including the reasonable
compensation and the expenses and disbursements of its agents and counsel),
except any such expense, disbursement or advance as may be attributable to
its negligence, willful misconduct or bad faith; and

(3)           to indemnify the
Trustee for, and to hold it harmless against, any and all loss, liability,
damage, claim or expense, including taxes (other than taxes based on the income
of the Trustee) incurred without negligence, willful misconduct or bad faith on
its part, arising out of or in connection with the acceptance or administration
of the trust or trusts hereunder, including the costs and expenses of defending
itself against any claim or liability in connection with the exercise or
performance of any of its powers or duties hereunder. The Corporation need not
pay for any settlement made without its consent, which consent shall not be
unreasonably withheld. This indemnification shall apply to officers, directors,
employees, shareholders and agents of the Trustee.

 

 30
 

 

The Trustee shall
have a first priority lien prior to the Securities upon all property and funds
held by it hereunder for any amount owing it or any predecessor Trustee pursuant
to this Section 607, except with respect to funds held in trust for the
benefit of the Holders of Securities.

Without limiting any
rights available to the Trustee under applicable law, when the Trustee incurs
expenses or renders services in connection with an Event of Default specified
in Section 501(5) or Section 501(6), the expenses (including the
reasonable charges and expenses of its counsel) and the compensation for the
services are intended to constitute expenses of administration under any
applicable federal or state bankruptcy, insolvency or other similar law.

The provisions of this Section shall
survive the resignation or removal of the Trustee and the termination of this
Indenture.

Section 608            Conflicting Interests.

If the Trustee has or
shall acquire a conflicting interest within the meaning of the Trust Indenture
Act, the Trustee shall either eliminate such interest or resign, to the extent
and in the manner provided by, and subject to the provisions of, the Trust
Indenture Act and this Indenture. To the extent permitted by such provisions of
the Trustee Indenture Act, the Trustee shall not be deemed to have a
conflicting interest by virtue of being a trustee under this Indenture with
respect to Securities of more than one series.

Section 609            Corporate
Trustee Required; Eligibility.

There shall at all times
be a Trustee hereunder with respect to the Securities of each series, which
may be Trustee hereunder for Securities of one or more other series. Each
Trustee shall be a Person that is eligible pursuant to the Trust Indenture Act
to act as such and has a combined capital and surplus of at least $50,000,000.
If any such Person publishes reports of condition at least annually, pursuant
to law or to the requirements of its supervising or examining authority, then
for the purposes of this Section and to the extent permitted by the Trust
Indenture Act, the combined capital and surplus of such Person shall be deemed
to be its combined capital and surplus as set forth in its most recent report
of condition so published. If at any time the Trustee with respect to the
Securities of any series shall cease to be eligible in accordance with the
provisions of this Section, it shall resign immediately in the manner and with
the effect hereinafter specified in this Article.

Section 610            Resignation
and Removal; Appointment of Successor.

No resignation or removal
of the Trustee and no appointment of a successor Trustee pursuant to this Article shall
become effective until the acceptance of appointment by the successor Trustee
in accordance with the applicable requirements of Section 611.

The Trustee
may resign at any time with respect to the Securities of one or more
series by giving written notice thereof to the Corporation. If the
instrument of acceptance by a successor Trustee required by Section 611
shall not have been delivered to the Trustee within 30 days after the giving of
such notice of resignation, the resigning Trustee may petition, at the
expense of the Corporation, any court of competent jurisdiction for the
appointment of a successor Trustee with respect to the Securities of such
series.

The Trustee may be
removed at any time with respect to the Securities of any series by Act of
the Holders of a majority in principal amount of the Outstanding Securities of
such series, delivered to the Trustee and the Corporation.

The Corporation
may remove the Trustee with respect to all Securities if at any time:

(1)           the Trustee shall fail to
comply with Section 608 after written request therefor by the Corporation,
or

(2)           the Trustee shall cease to be
eligible under Section 609 and shall fail to resign after written request
therefor by the Corporation, or

(3)           the Trustee shall become
incapable of acting or shall be adjudged a bankrupt or insolvent or a receiver
of the Trustee or of its property shall be appointed or any public officer
shall take charge or control of the Trustee or of its property or affairs under
any Bankruptcy Law,

 

 31
 

 

If the Trustee
shall resign, be removed or become incapable of acting, or if a vacancy shall
occur in the office of Trustee for any cause, with respect to the Securities of
one or more series, the Corporation shall promptly appoint a successor Trustee
or Trustees with respect to the Securities of that or those series (it
being understood that any such successor Trustee may be appointed with
respect to the Securities of one or more or all of such series and that at
any time there shall be only one Trustee with respect to the Securities of any
particular series) and shall comply with the applicable requirements of Section 611.
If, within one year after a successor Trustee with respect to the Securities of
any series takes office, the Holders of a majority in principal amount of
the Outstanding Securities of such series may appoint a successor Trustee
to replace the successor Trustee appointed by the Corporation, which forthwith
upon its acceptance of such appointment in accordance with the applicable
requirements of Section 611, shall become the successor Trustee with
respect to the Securities of such series and to that extent supersede the
successor Trustee appointed by the Corporation.

If a successor Trustee
with respect to any series of Outstanding Securities does not take office
within 60 days after the retiring Trustee resigns or is removed  in accordance with the applicable requirements
of Section 611, the retiring Trustee, the Corporation, or the Holders of
at least 10% in principal amount of the Securities of such
series may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

If the Trustee with
respect to any series of Outstanding Securities fails to comply with Section 609,
any Holder who has been a bona fide Holder of a Security of such
series for at least six months may, on behalf of himself and all others
similarly situated, petition any court of competent jurisdiction for the
removal of the Trustee and the appointment of a successor Trustee with respect
to the Securities of such series.

The Corporation shall
give notice of each resignation and each removal of the Trustee with respect to
the Securities of any series and each appointment of a successor Trustee
with respect to the Securities of any series to all Holders of Securities
of such series in the manner provided in Section 106. Each notice
shall include the name of the successor Trustee with respect to the Securities
of such series and the address of its Corporate Trust Office.

Section 611            Acceptance
of Appointment by Successor.

In case of the
appointment hereunder of a successor Trustee with respect to all Securities,
every such successor Trustee so appointed shall execute, acknowledge and
deliver to the Corporation and to the retiring Trustee an instrument accepting
such appointment, and thereupon the resignation or removal of the retiring Trustee
shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become vested with all the rights, powers, trusts and
duties of the retiring Trustee; but, on the request of the Corporation or the
successor Trustee, such retiring Trustee shall, upon payment of its charges,
execute and deliver an instrument transferring to such successor Trustee all
the rights, powers and trusts of the retiring Trustee and shall duly assign,
transfer and deliver to such successor Trustee all property and money held by
such retiring Trustee hereunder (subject to the lien provided for in Section 607).

In case of the
appointment hereunder of a successor Trustee with respect to the Securities of
one or more (but not all) series, the Corporation, the retiring Trustee and
each successor Trustee with respect to the Securities of one or more
series shall execute and deliver an indenture supplemental hereto wherein
each successor Trustee shall accept such appointment and which (1) shall
contain such provisions as shall be necessary or desirable to transfer and
confirm to, and to vest in, each successor Trustee all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates, (2) if the retiring Trustee is not retiring with respect to all
Securities, shall contain such provisions as shall be deemed necessary or
desirable to confirm that all the rights, powers, trusts and duties of the retiring
Trustee with respect to the Securities of that or those series as to which
the retiring Trustee is not retiring shall continue to be vested in the
retiring Trustee, and (3) shall add to or change any of the provisions of
this Indenture as shall be necessary to provide for or facilitate the
administration of the trusts hereunder by more than one Trustee, it being
understood that nothing herein or in such supplemental indenture shall
constitute such Trustees co-trustees of the same trust and that each such
Trustee shall be trustee of a trust or trusts hereunder separate and
apart from any trust or trusts hereunder administered by any other such
Trustee; and upon the execution and delivery of such supplemental indenture the
resignation or removal of the retiring Trustee shall become effective to the
extent provided therein and each such successor Trustee, without any further
act, deed or conveyance, shall become vested with all the rights, powers,
trusts and duties of the retiring Trustee with respect to the Securities of
that or those series to which the appointment of such successor Trustee
relates; but, on request of the Corporation or any successor Trustee, such
retiring Trustee shall duly assign, transfer and deliver to such successor
Trustee all property and money held by such retiring Trustee hereunder with
respect to the Securities of that or those series to which the appointment
of such successor Trustee relates.

 32

 

Upon request of any such
successor Trustee, the Corporation shall execute any and all instruments for
more fully and certainly vesting in and confirming to such successor Trustee
all such rights, powers and trusts referred to in the first or second preceding
paragraph, as the case may be.

No successor Trustee
shall accept its appointment unless at the time of such acceptance such
successor Trustee shall be qualified and eligible under this Article.

Section 612            Merger,
Conversion, Consolidation or Succession to Business.

Any corporation into
which the Trustee may be merged or converted or with which it may be
consolidated, or any corporation resulting from any merger, conversion or
consolidation to which the Trustee shall be a party, or any corporation succeeding
to all or substantially all the corporate trust business of the Trustee, shall
be the successor of the Trustee hereunder, provided that such corporation shall
be otherwise qualified and eligible under this Article, without the execution
or filing of any paper or any further act on the part of any of the
parties hereto. In case any Securities shall have been authenticated, but not
delivered, by the Trustee then in office, any successor by merger, conversion
or consolidation to such authenticating Trustee may adopt such
authentication and deliver the Securities so authenticated with the same effect
as if such successor Trustee had itself authenticated such Securities.

Section 613            Preferential
Collection of Claims Against Corporation.

If and when the Trustee
shall be or become a creditor of the Corporation (or any other obligor upon the
Securities), the Trustee shall be subject to the provisions of the Trust
Indenture Act regarding the collection of claims against the Corporation (or
any such other obligor).

Section 614            Trustee’s
Application for Instructions from the Corporation.

Any application by the
Trustee for written instructions from the Corporation may, at the option of the
Trustee, set forth in writing any action proposed to be taken or omitted by the
Trustee under this Indenture and the date on and/or after which such action
shall be taken or such omission shall be effective. The Trustee shall not be
liable to the Corporation for any action taken by, or omission of, the Trustee
in accordance with a proposal included in such application on or after the date
specified in such application (which date shall not be less than three Business
Days after the date any officer of the Corporation actually receives such
application, unless any such officer shall have consented in writing to any
earlier date) unless prior to taking any such action (or the effective date in
the case of an omission), the Trustee shall have received written instructions
in response to such application specifying the action to be taken or omitted.

ARTICLE VII.

HOLDERS’ LISTS AND
REPORTS BY TRUSTEE AND CORPORATION

Section 701            Preservation
of Information; Communications to Holders.

The Trustee shall
preserve, in as current a form as is reasonably practicable, the names and
addresses of Holders contained in the most recent list of the names and
addresses of Holders received by the Trustee in its capacity as Security
Registrar.

The rights of Holders to
communicate with other Holders with respect to their rights under this
Indenture or under the Securities, and the corresponding rights and privileges
of the Trustee, shall be as provided by the Trust Indenture Act.

Every Holder of
Securities, by receiving and holding the same, agrees with the Corporation and
the Trustee that neither the Corporation nor the Trustee nor any agent of
either of them shall be held accountable by reason of any disclosure of
information as to names and addresses of Holders made pursuant to the Trust
Indenture Act.

Section 702            Reports
by Trustee.

The Trustee shall transmit
to Holders such reports concerning the Trustee and its actions under this
Indenture as may be required pursuant to the Trust Indenture Act at the
times and in the manner provided pursuant thereto. If required by Section 313(a) of
the Trust Indenture Act, the Trustee shall, within 60 days after each May 15
following the date of this Indenture, deliver to Holders a brief report, dated
as of such May 15, which complies with the provisions of such Section 313(a).

 33
 

 

A copy of each such
report shall, at the time of such transmission to Holders, be filed by the
Trustee with each stock exchange upon which any Securities are listed, with the
Commission and with the Corporation. The Corporation will promptly notify the
Trustee when any Securities are listed on any stock exchange or any delisting
thereof.

Section 703            Reports
by Corporation.

The Corporation, pursuant
to Section 314(a) of the Trust Indenture Act, shall:

(1)          file with the Trustee, within
15 days after it is required to file the same with the Commission, copies of
the annual reports and of the information, documents and other reports (or
copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which it may be
required to file with the Commission pursuant to Section 13 or Section 15(d) of
the Exchange Act; or, if it is not required to file information, documents or
reports pursuant to either of said Sections, then it shall file with the
Trustee and the Commission, in accordance with rules and regulations
prescribed from time to time by the Commission, such of the supplementary and
periodic information, documents and reports which may be required pursuant
to Section 13 of the Exchange Act in respect of a security listed and
registered on a national securities exchange as may be prescribed from
time to time in such rules and regulations;

(2)          file with the Trustee and the
Commission, in accordance with rules and regulations prescribed from time
to time by the Commission, such additional information, documents and reports
with respect to compliance by it with the conditions and covenants of this
Indenture as may be required from time to time by such rules and
regulations; and

(3)          transmit within 30 days after
the filing thereof with the Trustee, in the manner and to the extent provided
in Section 313(c) of the Trust Indenture Act, such summaries of any
information, documents and reports required to be filed by it pursuant to
paragraphs (1) and (2) of this Section as may be required
by rules and regulations prescribed from time to time by the Commission.

ARTICLE VIII.

CONSOLIDATION, MERGER,
CONVEYANCE OR TRANSFER

Section 801            Corporation
May Consolidate, Etc., on Certain Terms.

The Corporation shall not
consolidate with or merge with or into any other Person or, directly or
indirectly, sell, lease or convey all or substantially all of its assets to
another Person, and may not permit any Person to, directly or indirectly,
sell, lease or convey all or substantially all of its assets to the Corporation,
whether in a single transaction or a series of related transactions,
unless:

(1)           either
the Corporation shall be the continuing person, or the Person (if other than
the Corporation) formed by such consolidation or into or with which the
Corporation is merged or to which the assets of the Corporation are transferred
shall be a corporation organized and validly existing under the laws of the
United States or any State thereof or the District of Columbia and shall
expressly assume, by an indenture supplemental hereto, executed and delivered
to the Trustee, in form satisfactory to the Trustee, all the obligations
of the Corporation on the Outstanding Securities and under this Indenture;

(2)           immediately
after giving effect to such transaction, no Event of Default, and no event or
condition which, after notice or lapse of time or both, would become an Event
of Default, shall have occurred and be continuing; and

(3)           the
Corporation has delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that such consolidation, merger, sale,
conveyance or lease and such supplemental indenture comply with this Section 801
and that all conditions precedent herein provided for relating to such
transaction have been complied with.

 34
 

 

Section 802            Successor
Substituted.

Upon any consolidation of
the Corporation with, or merger of the Corporation into, any other Person or
any sale, transfer, lease or other conveyance of the properties and assets of
the Corporation as an entirety or substantially as an entirety in accordance
with Section 801, the successor Person formed by such consolidation or
into which the Corporation is merged or to which such sale, transfer, lease or
other conveyance is made shall succeed to, and be substituted for (so that from
and after the date of such consolidation, merger, sale transfer, lease or
conveyance, the provisions of this Indenture referring to the “Corporation”
shall refer instead to the successor Person and not to the Corporation), and
may exercise every right and power of, the Corporation under this
Indenture with the same effect as if such successor Person had been named as
the Corporation herein, and thereafter, except in the case of a lease, the
predecessor Person shall be relieved of all obligations and covenants under this
Indenture and the Securities.

ARTICLE IX.

SUPPLEMENTAL INDENTURES

Section 901            Supplemental
Indentures Without Consent of Holders.

Without the consent of
any Holders, the Corporation, the Guarantor and the Trustee, at any time and
from time to time, may enter into one or more indentures supplemental
hereto, in form reasonably satisfactory to the Trustee, for any of the
following purposes:

(1)           to
evidence the succession of another Person to the Corporation and the assumption
by any such successor of the covenants of the Corporation herein and in the
Securities; or

(2)           to
add to the covenants of the Corporation for the benefit of the Holders of all
or any series of Securities (and if such covenants are to be for the
benefit of less than all series of Securities, stating that such covenants
are expressly being included solely for the benefit of such series) or to
surrender any right or power herein conferred upon the Corporation; or

(3)           to
add any additional Events of Default for the benefit of the Holders of all or
any series of Securities (and if such additional Events of Default are to
be for the benefit of less than all series of Securities, stating that
such additional Events of Default are expressly being included solely for the
benefit of such series); or

(4)           to
add to or change any of the provisions of this Indenture to such extent as
shall be necessary to permit or facilitate the issuance of Securities in bearer
form, registrable or not registrable as to principal, and with or without
interest coupons, or to facilitate the issuance of Securities in uncertificated
form; or

(5)           to
change or eliminate any of the provisions of this Indenture in respect of one
or more series of Securities, provided that any such change or elimination
(A) shall neither (i) apply to any Security entitled to the benefit
of such provision nor (ii) modify the rights of the Holder of any such
Security with respect to such provision, or (B) add any new provision to
this Indenture, provided that any such addition does not apply to any Security
of any series created prior to the execution of such supplemental
indenture or (C) shall become effective only when there is no such
Security Outstanding; or

(6)           make
any other change that does not adversely affect the rights of any Holder; or

(7)           to
secure the Securities; or

(8)           to
establish the form or terms of Securities of any series as permitted
by Sections 201 and 301; or

(9)           to
evidence and provide for the acceptance of appointment hereunder by a successor
Trustee with respect to the Securities of one or more series and to add to
or change any of the provisions of this Indenture as shall be necessary to
provide for or facilitate the administration of the trusts hereunder by more
than one Trustee, pursuant to the requirements of Section 611; or

(10)         to
comply with the requirements of the Commission in order to effect or maintain
the qualification of this Indenture under the Trust Indenture Act; or

 35
 

 

(11)         to
cure any ambiguity, to correct or supplement any provision herein which
may be defective or inconsistent with any other provision herein, or to
make any other provisions with respect to matters or questions arising under
this Indenture; provided that such action pursuant to this Clause
(11) shall not adversely affect the interests of the Holders of Securities
of any series in any material respect.

Section 902            Supplemental
Indentures With Consent of Holders.

The Corporation, the
Guarantor and the Trustee may enter into a supplemental indenture with the
written consent of the Holders of at least a majority in principal amount of
the Outstanding Securities of each series affected by such supplemental
indenture (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such series), for the purpose of adding
any provisions to or changing in any manner or eliminating any of the
provisions of this Indenture or of any supplemental indenture or of modifying
in any manner the rights of the Holders of the Securities of such series;
provided, however, that no such supplemental indenture shall, without the
consent of the Holder of each Outstanding Security affected thereby,

(1)           change
the Stated Maturity of the principal of, any installment of principal of or
interest on, any Security, or reduce the principal amount thereof or the rate
of interest thereon or any premium payable upon the redemption thereof, or
reduce the amount of the principal of an Original Issue Discount Security or
any other Security which would be due and payable upon a declaration of acceleration
of the Maturity thereof pursuant to Section 502 or change any place of
payment where or the coin or currency in which any Security or any premium or
interest thereon is payable, or impair the right to institute suit for the
enforcement of any such payment on or after the Stated Maturity thereof (or, in
the case of redemption, on or after the Redemption Date), or

(2)           reduce
the percentage in principal amount of the Outstanding Securities of any series,
the consent of whose Holders is required for any such supplemental indenture,
or the consent of whose Holders is required for any waiver (of compliance with
certain provisions of this Indenture or certain defaults hereunder and their
consequences) provided for in this Indenture, or

(3)           waive
an Event of Default in the payment of principal of or interest, if any, on the
Securities of any series (except a rescission of acceleration of the
Securities of such series by the Holders of at least a majority in
aggregate principal amount of the then Outstanding Securities of such
series and a waiver of the payment default that resulted from such
acceleration);

(4)           modify
any of the provisions of this Section, Sections 508, 513, 116 or 1006, except
to increase any such percentage or to provide that certain other provisions of
this Indenture cannot be modified or waived without the consent of the Holder
of each Outstanding Security affected thereby; provided, however, that this
clause (4) shall not be deemed to require the consent of any Holder with
respect to changes in the references to “the Trustee” and concomitant changes
in this Section and Section 1006, or the deletion of this proviso, in
accordance with the requirements of Sections 611 and 901(8).

A supplemental indenture
which changes or eliminates any covenant or other provision of this Indenture
which has expressly been included solely for the benefit of one or more
particular series of Securities, or which modifies the rights of the
Holders of Securities of such series with respect to such covenant or
other provision, shall be deemed not to affect the rights under this Indenture
of the Holders of Securities of any other series.

Except as provided in Section 513
or as contemplated by Section 1006, the Holders of at least a majority in
principal amount of the Outstanding Securities of such series by notice to
the Trustee (including consents obtained in connection with a tender offer or
exchange offer for the Securities of such series) may waive compliance by
the Corporation with any provision of this Indenture or the Securities of such
series.

It shall not be necessary
for any Act of Holders under this Section to approve the particular
form of any proposed supplemental indenture, but it shall be sufficient if
such Act shall approve the substance thereof. After a supplemental indenture or
waiver under this Article becomes effective, the Corporation shall mail to
the Holders of Securities of such series a notice briefly describing the
supplemental indenture or waiver. Any failure by the Corporation to mail such
notice, or any defect therein, shall not, however, in any way impair or affect
the validity of any such supplemental indenture or waiver.

 36
 

 

Section 903            Execution
of Supplemental Indentures.

In executing, or
accepting the additional trusts created by, any supplemental indenture
permitted by this Article or the modifications thereby of the trusts
created by this Indenture, the Trustee shall be entitled to receive, and
(subject to Section 315(a) through 315(d) of the Trust Indenture
Act) shall be fully protected in relying upon, an Opinion of Counsel and an
Officers’ Certificate, each stating that the execution of such supplemental
indenture is authorized or permitted by this Indenture. The Trustee may, but
shall not be obligated to, enter into any such supplemental indenture which
affects the Trustee’s own rights, duties or immunities under this Indenture or
otherwise.

Section 904            Effect
of Supplemental Indentures.

Until an amendment or
waiver becomes effective, a consent to it by a Holder of a Security of each
series affected by such amendment or waiver is a continuing consent by the
Holder and every subsequent Holder of a Security of such series or portion
of a Security of such series that evidences the same debt as the
consenting Holder’s Security, even if notation of the consent is not made on
any Security. However, any such Holder or subsequent Holder may revoke the
consent as to his Security or portion of a Security if the Trustee receives the
notice of revocation before the date the amendment or waiver becomes effective.

Upon the execution of any
supplemental indenture under this Article, this Indenture shall be modified in
accordance therewith, and such supplemental indenture shall form a
part of this Indenture for all purposes; and every Holder of Securities theretofore
or thereafter authenticated and delivered hereunder shall be bound thereby.

Section 905            Conformity
with Trust Indenture Act.

Every supplemental
indenture executed pursuant to this Article shall conform to the
requirements of the Trust Indenture Act as then in effect.

Section 906            Reference
in Securities to Supplemental Indentures.

Securities of any
series authenticated and delivered after the execution of any supplemental
indenture pursuant to this Article may, and shall if required by the
Trustee, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Corporation shall so
determine, new Securities of any series so modified as to conform, in the
opinion of the Trustee and the Corporation, to any such supplemental indenture
may be prepared and executed by the Corporation and authenticated and
delivered by the Trustee in exchange for Outstanding Securities of such series.

ARTICLE X.

COVENANTS

Section 1001          Payment
of Principal, Premium and Interest.

The Corporation covenants
and agrees for the benefit of each series of Securities that it will duly
and punctually pay the principal of and any premium and interest on the
Securities of that series in accordance with the terms of the Securities
and this Indenture.

Section 1002          Maintenance
of Office or Agency.

The Corporation will
maintain in each Place of Payment for any series of Securities an office
or agency where Securities of that series may be presented or
surrendered for payment, where Securities of that series may be
surrendered for registration of transfer or exchange and where notices and
demands to or upon the Corporation in respect of the Securities of that
series and this Indenture may be served. The Corporation will give
prompt written notice to the Trustee of the location, and any change in the
location, of such office or agency. If at any time the Corporation shall fail
to maintain any such required office or agency or shall fail to furnish the
Trustee with the address thereof, such presentations, surrenders, notices and
demands may be made or served at the Corporate Trust Office of the
Trustee, and the Corporation hereby appoints the Trustee as its agent to
receive all such presentations, surrenders, notices and demands.

The Corporation may also
from time to time designate one or more other offices or agencies where the
Securities of one or more series may be presented or surrendered for
any or all such purposes and may from time to time rescind such
designations; provided, however, that no such designation or rescission shall
in any manner relieve the Corporation of its 

 37
 

 

obligation to maintain an
office or agency in each Place of Payment for Securities of any series for
such purposes. The Corporation will give prompt written notice to the Trustee
of any such designation or rescission and of any change in the location of any
such other office or agency.

Unless otherwise provided
in or pursuant to Section 301 of this Indenture, the Corporation hereby
designates as a Place of Payment for each series of Securities the Borough
of Manhattan, The City of New York, and initially appoints the Corporate Trust
Office of the Trustee as its office or agency in that Place of Payment for such
purpose.

Section 1003          Money
for Securities Payments to Be Held in Trust.

If the Corporation shall
at any time act as its own Paying Agent with respect to any series of
Securities, it will, on or before each due date of the principal of or any
premium or interest on any of the Securities of that series, segregate and hold
in trust for the benefit of the Persons entitled thereto a sum sufficient to
pay the principal and any premium and interest so becoming due until such sums
shall be paid to such Persons or otherwise disposed of as herein provided and
will promptly notify the Trustee of its action or failure so to act.

Whenever the Corporation
shall have one or more Paying Agents for any series of Securities, it
will, on or prior to each due date of the principal of or any premium or
interest on any Securities of that series, deposit with a Paying Agent a sum
sufficient to pay such amount, such sum to be held as provided by the Trust
Indenture Act, and (unless such Paying Agent is the Trustee) the Corporation
will promptly notify the Trustee of its action or failure so to act.

The Corporation will
cause each Paying Agent for any series of Securities other than the
Trustee to execute and deliver to the Trustee an instrument in which such
Paying Agent shall agree with the Trustee, subject to the provisions of this
Section, that such Paying Agent will (1) comply with the provisions of the
Trust Indenture Act applicable to it as a Paying Agent and (2) during the
continuance of any default by the Corporation (or any other obligor upon the
Securities of that series) in the making of any payment in respect of the
Securities of that series, upon the written request of the Trustee, forthwith
pay to the Trustee all sums held in trust by such Paying Agent for payment in
respect of the Securities of that series.

The Corporation
may at any time, for the purpose of obtaining the satisfaction and
discharge of this Indenture or for any other purpose, pay, or by Company Order
direct any Paying Agent to pay, to the Trustee all sums held in trust hereunder
by the Corporation or such Paying Agent, such sums to be held by the Trustee
upon the same trusts as those upon which such sums were held by the Corporation
or such Paying Agent; and, upon such payment by any Paying Agent to the
Trustee, such Paying Agent shall be released from all further liability with
respect to such money.

Any money deposited with
the Trustee or any Paying Agent, or then held by the Corporation, in trust for
the payment of the principal of or any premium or interest on any Security of
any series and remaining unclaimed for two years after such principal,
premium or interest has become due and payable shall be paid to the Corporation
on Company Request, or (if then held by the Corporation) shall be discharged
from such trust; and the Holder of such Security shall thereafter, as an
unsecured general creditor, look only to the Corporation for payment thereof,
and all liability of the Trustee or such Paying Agent with respect to such
trust money, and all liability of the Corporation as trustee thereof, shall
thereupon cease; provided, however, that the Trustee or such Paying Agent,
before being required to make any such repayment, may at the expense of
the Corporation cause to be published once, in a newspaper published in the
English language, customarily published on each Business Day and of general
circulation in the Borough of Manhattan, The City of New York, New York, notice
that such money remains unclaimed and that, after a date specified therein,
which shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Corporation.

Section 1004          Corporate
Existence.

Subject to Article Eight,
the Corporation shall do or cause to be done all things necessary to preserve
and keep in full force and effect its corporate existence and the corporate,
partnership or other existence of each Significant Subsidiary in accordance
with the respective organizational documents (as the same may be amended
from time to time) of each Significant Subsidiary and the rights (charter and
statutory), licenses and franchises of the Corporation and its Significant
Subsidiaries; provided, however, that the Corporation shall not
be required to preserve any such right, license or franchise, or the corporate,
partnership or other existence of any Significant Subsidiary, if the Board of
Directors shall determine that the preservation thereof is no longer desirable
in the conduct of the business of the Corporation and its Subsidiaries taken as
a whole and that the loss thereof is not adverse in any material respect to the
Holders.

 38
 

 

Section 1005          Statement
by Officers as to Default.

The Corporation shall
deliver to the Trustee, within 90 days after the end of each fiscal year of the
Corporation, an Officers’ Certificate stating that a review of the activities
of the Corporation and its Subsidiaries during the preceding fiscal year has
been made under the supervision of the signing Officers with a view to
determining whether the Corporation has kept, observed, performed and fulfilled
its obligations under this Indenture, and further stating, as to each such
Officer signing such certificate, that to the best of his knowledge the
Corporation has kept, observed, performed and fulfilled each and every covenant
contained in this Indenture and is not in default in the performance or
observance of any of the terms, provisions and conditions hereof (or, if a
default or Event of Default shall have occurred, describing all such defaults
or Events of Default of which he may have knowledge).

The Corporation will, so
long as any Securities are outstanding, deliver to the Trustee, forthwith upon
any Officer becoming aware of any default or Event of Default, an Officers’
Certificate specifying such default or Event of Default and what action the
Company is taking or proposes to take with respect thereto.

Section 1006          Waiver
of Certain Covenants.

Except as otherwise
specified as contemplated by Section 301 for Securities of such series,
the Corporation may, with respect to the Securities of any series, omit in any
particular instance to comply with any term, provision or condition set forth
in any covenant provided pursuant to Section 301(19) or 901(2) for
the benefit of the Holders of such series if before the time for such
compliance the Holders of at least a majority in principal amount of the
Outstanding Securities of such series shall, by Act of such Holders,
either waive such compliance in such instance or generally waive compliance
with such term, provision or condition, but no such waiver shall extend to or affect
such term, provision or condition except to the extent so expressly waived,
and, until such waiver shall become effective, the obligations of the
Corporation and the duties of the Trustee in respect of any such term,
provision or condition shall remain in full force and effect.

ARTICLE XI.

REDEMPTION OF SECURITIES

Section 1101          Applicability
of Article.

Securities of any
series shall not be redeemable before their Stated Maturity at the option
of any Holder thereof, upon the occurrence of any particular circumstances or
otherwise. Securities of any series which are redeemable before their
Stated Maturity shall be redeemable in accordance with their terms and (except
as otherwise specified as contemplated by Section 301 for such Securities)
in accordance with this Article.

Section 1102          Election
to Redeem; Notice to Trustee.

The election of the
Corporation to redeem any Securities shall be evidenced by a Board Resolution
or in another manner specified as contemplated by Section 301 for such
Securities. In case of any redemption at the election of the Corporation, the
Corporation shall, at least 45 days prior to the Redemption Date fixed by the
Corporation (unless a shorter notice shall be satisfactory to the Trustee),
notify the Trustee of such Redemption Date, of the principal amount of
Securities of such series to be redeemed and, if applicable, of the tenor
of the Securities to be redeemed. In the case of any redemption of Securities (A) prior
to the expiration of any restriction on such redemption provided in the terms
of such Securities or elsewhere in this Indenture, or (B) pursuant to an
election of the Corporation which is subject to a condition specified in the
terms of such Securities or elsewhere in this Indenture, the Corporation shall
furnish the Trustee with an Officers’ Certificate evidencing compliance with
such restriction or condition.

Section 1103          Selection
by Trustee of Securities to Be Redeemed.

If less than all the
Securities of any series are to be redeemed (unless all the Securities of
such series and of a specified tenor are to be redeemed or unless such
redemption affects only a single Security), the particular Securities to be
redeemed shall be selected not more than 60 days prior to the Redemption Date
by the Trustee, from the Outstanding Securities of such series not
previously called for redemption, by such method as the Trustee shall deem fair
and appropriate and which may provide for the selection for redemption of
a portion of the principal amount of any Security of such series; provided that
the unredeemed portion of the principal amount of any Security shall be in an
authorized denomination (which shall not be less than the minimum authorized
denomination) for such Security. If less than all the Securities of such series and
of a specified tenor are to be redeemed (unless such redemption affects only a
single Security), the particular 

 39
 

 

Securities to be redeemed
shall be selected not more than 60 days prior to the Redemption Date by the
Trustee, from the Outstanding Securities of such series and specified
tenor not previously called for redemption in accordance with the preceding
sentence.

The Trustee shall
promptly notify the Corporation in writing of the Securities selected for
redemption as aforesaid and, in the case of any Securities selected for partial
redemption as aforesaid, the principal amount thereof to be redeemed.

The provisions of the two
preceding paragraphs shall not apply with respect to any redemption affecting
only a single Security, whether such Security is to be redeemed in whole or in
part. In the case of any such redemption in part, the unredeemed portion of the
principal amount of the Security shall be in an authorized denomination (which
shall not be less than the minimum authorized denomination) for such Security.

For all purposes of this
Indenture, unless the context otherwise requires, all provisions relating to
the redemption of Securities shall relate, in the case of any Securities
redeemed or to be redeemed only in part, to the portion of the principal amount
of such Securities which has been or is to be redeemed.

Section 1104          Notice
of Redemption.

Notice of redemption
shall be given by first-class mail, postage prepaid, mailed not less than
30 nor more than 60 days prior to the Redemption Date, to each Holder of
Securities to be redeemed, at his address appearing in the Security Register.

All notices of redemption
shall state:

(1)           the
Redemption Date;

(2)           the
Redemption Price;

(3)           if
less than all the Outstanding Securities of any series and of a specified
tenor consisting of more than a single Security are to be redeemed, the
identification (and, in the case of partial redemption of any such Securities,
the principal amounts) of the particular Securities to be redeemed and, if less
than all the Outstanding Securities of any series and of a specified tenor
consisting of a single Security are to be redeemed, the principal amount of the
particular Security to be redeemed;

(4)           that
on the Redemption Date the Redemption Price, together with accrued interest, if
any, to the Redemption Date, will become due and payable upon each such
Security to be redeemed and, if applicable, that interest thereon will cease to
accrue on and after said date;

(5)           the
place or places where each such Security is to be surrendered for payment of
the Redemption Price and accrued interest, if any, unless it shall have been
specified as contemplated by Section 301 with respect to such Securities
that such surrender shall not be required;

(6)           that
no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on such Securities; and

(7)           such
other matters as the Corporation shall deem desirable or appropriate.

Notice of redemption of
Securities to be redeemed at the election of the Corporation shall be given by
the Corporation or, at the Corporation’s request, by the Trustee in the name
and at the expense of the Corporation. Any such notice of redemption shall be
irrevocable.

On or prior to any
Redemption Date, the Corporation shall deposit, with respect to the Securities
of any series called for redemption pursuant to this Section 1104,
with the Trustee or with a Paying Agent an amount of money in the applicable
currency sufficient to pay the Redemption Price of, and any accrued interest
on, all such Securities or portion thereof which are to be redeemed on that
date.

 40
 

 

Section 1105          Securities
Payable on Redemption Date.

Notice of redemption
having been given as aforesaid, the Securities or portions thereof so to be
redeemed shall, on the Redemption Date, become due and payable at the
Redemption Price therein specified, and from and after such date (unless the
Corporation shall default in the payment of the Redemption Price and accrued
interest, if any) such Securities or portions thereof, if interest-bearing,
shall cease to bear interest. Upon surrender of any such Security for
redemption in accordance with said notice, such Security or portion thereof
shall be paid by the Corporation at the Redemption Price, together with accrued
interest, if any, to the Redemption Date; provided, however, that no such
surrender shall be a condition to such payment if so specified as contemplated
by Section 301 with respect to such Security, and provided further that,
unless otherwise specified as contemplated by Section 301, installments of
interest whose Stated Maturity is on or prior to the Redemption Date will be
payable to the Holders of such Securities, or one or more Predecessor
Securities, registered as such at the close of business on the relevant Regular
Record Dates according to their terms and the provisions of Section 307.

If any Security called
for redemption shall not be so paid upon surrender thereof for redemption, the
principal and any premium shall, until paid, bear interest from the Redemption
Date at the rate prescribed therefor in the Security or, if no rate is
prescribed therefor in the Security, at the rate of interest, if any, borne by
such Security.

Section 1106          Securities
Redeemed in Part.

Any Security which is to
be redeemed only in part shall be surrendered at a Place of Payment
therefore (with, if the Corporation or the Trustee so requires, due endorsement
by, or a written instrument of transfer in form satisfactory to the
Corporation and the Trustee duly executed by, the Holder thereof or his
attorney duly authorized in writing), and the Corporation shall execute, and
the Trustee shall authenticate and deliver to the Holder of such Security
without service charge, a new Security or Securities of the same
series and of like tenor, of any authorized denomination as requested by
such Holder, in aggregate principal amount equal to and in exchange for the
unredeemed portion of the principal of the Security so surrendered.

ARTICLE XII.

SINKING FUNDS

Section 1201          No
Sinking Funds.

The Securities shall not
be entitled to the benefit of any sinking fund.

ARTICLE XIII.

DEFEASANCE AND COVENANT
DEFEASANCE

Section 1301          Applicability
of Article.

Unless, pursuant to Section 301,
provision is made that either or both of (A) defeasance of any Securities
or any series of Securities under Section 1302 and (B) covenant
defeasance of any Securities or any series of Securities under Section 1303
shall not apply to such Securities of a series, then the provisions of either
or both of Sections 1302 and Section 1303, as the case may be,
together with Section 1305, shall be applicable to the Outstanding
Securities of such series upon compliance with the conditions set forth
below in this Article. Unless otherwise specified pursuant to Section 301,
defeasance under Section 1302 and covenant defeasance under Section 1303
may be effected only with respect to all, and not less than all, the
Securities of any series. To the extent that the Corporation is permitted,
pursuant to Section 301, to defer interest payments, change the time for
interest payments, or change the Stated Maturity of the Securities of any
series or any installment of principal thereof, any such right shall
terminate upon defeasance or covenant defeasance of the Securities of that series as
described below or upon satisfaction and discharge with respect to the
Securities of that series pursuant to Section 401.

Section 1302          Legal
Defeasance of Notes.

The Corporation shall be
deemed to have paid and discharged the entire indebtedness with respect to any
Securities or any series of Securities on the 91st day after the date of
the deposit referred to in subparagraph (4) hereof, and the provisions of
this Indenture, as it relates to such Securities, shall no longer be in effect
(and the Trustee, at the expense of the Corporation, shall, at Company Request,
execute proper instruments acknowledging the same), except as to:

 41
 

 

(1)           the
rights of Holders of such Securities to receive, from the trust funds described
in subparagraph (4) hereof, payment of the principal of and each
installment of principal of and interest on such Securities on the Stated
Maturity of such principal or installment of principal or interest;

(2)           the
provisions of Sections 305, 306, 308, 309, 402, 1302 and 1304; and

(3)           the
rights, powers, trust and immunities of the Trustee hereunder;

provided that, the
following conditions shall have been satisfied:

(4)           the
Corporation shall have deposited or caused to be deposited irrevocably with the
Trustee as trust funds in trust for the purpose of making the following
payments, specifically pledged as security for and dedicated solely to the
benefit of the Holders of such Securities, cash in Dollars (or such other money
or currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, which through the payment of interest and principal in
respect thereof, in accordance with their terms, will provide (and without
reinvestment and assuming no tax liability will be imposed on such Trustee),
not later than one day before the due date of any payment of money, an amount
in cash, sufficient, in the opinion of a nationally recognized firm of
independent public accountants expressed in a written certification thereof
delivered to the Trustee, to pay and discharge each installment of principal of
and interest, if any, on such Securities on the dates such installments of
interest or principal are due;

(5)           such
deposit will not result in a breach or violation of, or constitute a default
under, this Indenture or any other agreement or instrument to which the
Corporation is a party or by which it is bound;

(6)           no
Default or Event of Default with respect to such Securities shall have occurred
and be continuing on the date of such deposit or during the period ending on
the 91st day after such date;

(7)           the
Corporation shall have delivered
to the Trustee an Officers’ Certificate and an Opinion of Counsel to the effect
that (i) the Corporation has received from, or there has been published by, the Internal Revenue
Service a ruling, or (ii) since the date of execution of this Indenture,
there has been a change in the applicable Federal income tax law, in either
case to the effect that, and based thereon such Opinion of Counsel shall
confirm that, the Holders of such Securities will not recognize income, gain or
loss for Federal income tax purposes as a result of such deposit, defeasance
and discharge and will be subject to Federal income tax on the same amount and
in the same manner and at the same times as would have been the case if such
deposit, defeasance and discharge had not occurred;

(8)           the
Corporation shall have delivered to the Trustee an Officers’ Certificate
stating that the deposit was not made by the Corporation with the intent of
preferring the Holders of such Securities over any other creditors of the
Corporation or with the intent of defeating, hindering, delaying or defrauding
any other creditors of the Corporation;

(9)           such
deposit shall not result in the trust arising from such deposit constituting an
investment company (as defined in the Investment Company Act), or such trust
shall be qualified under the Investment Company Act or exempt from regulation
thereunder; and

(10)         the
Corporation shall have delivered to the Trustee an Officers’ Certificate and an
Opinion of Counsel, each stating that all conditions precedent provided for
relating to the defeasance contemplated by this Section have been complied
with.

Section 1303          Covenant
Defeasance.

On and after the 91st day
after the date of the deposit referred to in subparagraph (1) hereof, the
Company may omit to comply with any term, provision or condition set forth
under Sections  301(19), 801, 901(2),
1004, or 1005, with respect to any Securities or any series of Securities
for the benefit of the Holders of such Securities (and the failure to comply
with any such covenants shall not constitute a Default or Event of Default
under Section 501 with respect to such Securities) and the occurrence
of any event described in clause [(e)] of Section 501 shall not
constitute a Default or Event of Default hereunder, with respect to such
Securities, provided that the following conditions shall have been satisfied:

 

 42

 

(1)          With reference to this Section 1303,
the Company has deposited or caused to be irrevocably deposited (except as
provided in Section 404) with the Trustee as trust funds in trust,
specifically pledged as security for, and dedicated solely to, the benefit of
the Holders of such Securities, cash in Dollars (or such other money or
currencies as shall then be legal tender in the United States) and/or U.S.
Government Obligations, which through the payment of interest and principal in
respect thereof, in accordance with their terms, will provide (and without
reinvestment and assuming no tax liability will be imposed on such Trustee),
not later than one day before the due date of any payment of money, an amount
in cash, sufficient, in the opinion of a nationally recognized firm of
independent certified public accountants expressed in a written certification
thereof delivered to the Trustee, to pay principal and interest, if any, on
such Securities on the dates such installments of interest or principal are
due;

(2)          Such deposit will not result in
a breach or violation of, or constitute a default under, this Indenture or any
other agreement or instrument to which the Corporation is a party or by which
it is bound;

(3)          No Default or Event of Default
with respect to such Securities shall have occurred and be continuing on the
date of such deposit or during the period ending on the 91st day after such
date;

(4)          the Corporation shall have
delivered to the Trustee an Opinion of Counsel confirming that Holders of the
Outstanding Securities will not recognize income, gain or loss for federal
income tax purposes as a result of such deposit and defeasance and will be
subject to federal income tax on the same amounts, in the same manner and at
the same times as would have been the case if such deposit and defeasance had
not occurred;

(5)          the Corporation shall have
delivered to the Trustee an Officers’ Certificate stating the deposit was not
made by the Corporation with the intent of preferring the Holders of such
Securities over any other creditors of the Corporation or with the intent of
defeating, hindering, delaying or defrauding any other creditors of the
Corporation; and

(6)          The Corporation shall have
delivered to the Trustee an Officers’ Certificate and an Opinion of Counsel,
each stating that all conditions precedent herein provided for relating to the
defeasance contemplated by this Section have been complied with.

Section 1304          Deposited
Money and U.S. Government Obligations and Foreign Government Obligations to Be
Held in Trust; Indemnification.

Subject to the provisions of the last paragraph of Section 1003,
all money and U.S. Government Obligations or Foreign Government Obligations
deposited with the trustee pursuant to Section 1302 or 1303 and all money
received by the Trustee in respect of U.S. Government Obligations or Foreign
Government Obligations deposited with the Trustee pursuant to Section 1302
or 1303, shall be held in trust and applied by it, in accordance with the
provisions of the Securities and this Indenture, to the payment, either
directly or through any Paying Agent (including the Corporation acting as its
own Paying Agent) as the Trustee may determine, to the Persons entitled
thereto, of the principal and any premium and interest for whose payment such money
has been deposited with or received by the Trustee or to make payments as
contemplated by Sections 1302 and 1303.

The Corporation shall pay and shall indemnify the
Trustee against any tax, fee or other charge imposed on or assessed against
U.S. Government Obligations or Foreign Government Obligations deposited
pursuant to Sections 1302 or 1303 or the interest and principal received in
respect of such obligations other than any such tax, fee or other charge which
by law is for the account of the Holders of Outstanding Securities.

The Trustee shall deliver or pay to the Corporation
from time to time upon Company Request any U.S. Government Obligations or
Foreign Government Obligations or money held by it as provided in Sections 1302
or 1303 which, in the opinion of a nationally recognized firm of independent
certified public accountants expressed in a written certification thereof
delivered to the Trustee, are then in excess of the amount thereof which then
would have been required to be deposited for the purpose for which such U.S.
Government Obligations or Foreign Government Obligations or money were
deposited or received. This provision shall not authorize the sale by the
Trustee of any U.S. Government Obligations or Foreign Government Obligations
held under this Indenture.

Section 1305          Reinstatement.

If the Trustee or any Paying Agent is unable to apply
any moneys, U.S. Government Obligations or Foreign Government Obligations
deposited pursuant to Section 401, 1303 or 1304 to pay any principal of or
premium, if any, or 

 43
 

 

interest, if any, on the
Securities of any series by reason of any legal proceeding or any order or
judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Corporation’s obligations
under this Indenture and the Securities of such series shall be revived
and reinstated as though no such deposit had occurred, until such time as the
Trustee or Paying Agent is permitted to apply all such moneys, U.S. Government
Obligations and Foreign Government Obligations to pay the principal of and
premium, if any, and interest, if any, on the Securities of such series as
contemplated by Section 402 or 1304, as the case may be, provided,
however, that if the Corporation makes any payment of the principal of or
premium, if any, or interest, if any, on the Securities of such
series following the reinstatement of its obligations as aforesaid, the
Corporation shall be subrogated to the rights of the Holders of such Securities
to receive such payment from the funds held by the Trustee or Paying Agent, but
shall not be entitled to enforce or to receive any payments arising out of, or
based upon, such right of subrogation until the principal of, and premium, if
any, and interest, if any, on all Securities of that series shall have
been paid in full.

ARTICLE XIV.

IMMUNITY OF INCORPORATORS,

STOCKHOLDERS, OFFICERS AND DIRECTORS

Section 1401          Indenture
and Securities Solely Corporate Obligations.

No recourse for the payment of the principal of or any
premium or interest on any Security, or for any claim based thereon or
otherwise in respect thereof, and no recourse under or upon any obligation,
covenant or agreement of the Corporation or the Guarantor in this Indenture or
in any supplemental indenture, or in any Security, or because of the creation
of any indebtedness represented thereby, shall be had against any incorporator,
stockholder, officer or director, as such, past, present or future, of the
Corporation or the Guarantor or of any successor corporation of either the
Corporation of the Guarantor, either directly or through the Corporation or the
Guarantor or any successor corporation of either the Corporation of the
Guarantor, whether by virtue of any constitution, statute or rule of law,
or by the enforcement of any assessment or penalty or otherwise; it being
expressly understood that all such liability is hereby expressly waived and
released as a condition of, and as a consideration for, the execution of this
Indenture and the issue of the Securities. The waiver and release are
part of the consideration for issuing Securities of any series.

ARTICLE XV.

GUARANTEE

Section 1501          Guarantee.

(1)          Subject to Section 1501(2),
below, the Guarantor hereby irrevocably and unconditionally guarantees (such
guarantee being the “Guarantee”) to
each Holder of a Security of any series authenticated and delivered by the
Trustee and to the Trustee and its successors and assigns, irrespective of the
validity and enforceability of this Indenture and the Securities of any series hereunder,
that: (i) the principal of, premium, if any, and interest on the
Securities of such series promptly will be paid in full when due, whether
at the Maturity, by acceleration, call for redemption or otherwise, and
interest on the overdue principal, premium, if any, and interest, if any, of
such Securities, if lawful, and all other obligations of the Corporation to the
Holders of such Securities and the Trustee hereunder or thereunder will be
promptly paid in full or performed, all in accordance with the terms hereof and
thereof, and (ii) in case of any extension of time of payment or renewal
of the Securities of any series or any of such other obligations, the same
will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at Stated Maturity, by acceleration
or otherwise. Failing payment when due by the Corporation of any amount so
guaranteed for whatever reason, the Guarantor shall be obligated to pay the
same immediately. The Guarantor hereby agrees that its obligations hereunder
shall be unconditional, irrespective of the validity, regularity or
enforceability of the Securities of any series or this Indenture, the
absence of any action to enforce the same, any waiver or consent by any Holder
of such Securities with respect to any provisions hereof or thereof, the
recovery of any judgment against the Corporation, any action to enforce the
same or any other circumstance which might otherwise constitute a legal or
equitable discharge or defense of a guarantor. The Guarantor hereby waives
diligence, presentment, demand of payment, filing of claims with a court in the
event of insolvency or bankruptcy of the Corporation, any right to require a
proceeding first against the Corporation, protest, notice and all demands
whatsoever and covenants that this Guarantee shall not be discharged except by
complete performance of the obligations contained in the Securities of any
series and this Indenture. If any Holder or the Trustee is required by any
court or otherwise to return to the Corporation or any custodian, Trustee,
liquidator or other similar official acting in relation to the Corporation, any
amount paid by the

 44
 

 

Corporation to the
Trustee or such Holder, this Guarantee, to the extent theretofore discharged,
shall be reinstated in full force and effect. The Guarantor agrees that it
shall not be entitled to any right of subrogation in relation to the Holders in
respect of any obligations guaranteed hereby until payment in full of all
obligations is guaranteed hereby.

(2)          It is the intention of the
Guarantor and the Corporation that the obligations of the Guarantor hereunder
shall be, but not in excess of, the maximum amount permitted by applicable law.
Accordingly, if the obligations in respect of the Guarantee would be annulled,
avoided or subordinated to the creditors of the Guarantor by a court of
competent jurisdiction in a proceeding actually pending before such court as a
result of a determination both that such Guarantee was made without fair
consideration and, immediately after giving effect thereto, the Guarantor was
insolvent or unable to pay its debts as they mature or left with an
unreasonably small capital, then the obligations of the Guarantor under the
Guarantee shall be reduced by such court if such reduction would result in the
avoidance of such annulment, avoidance or subordination; provided, however,
that any reduction pursuant to this paragraph shall be made in the smallest
amount as is strictly necessary to reach such result. For purposes of this
paragraph, “fair consideration,” “insolvency,” “unable to pay its debts as they
mature,” “unreasonably small capital” and the effective times of reductions, if
any, required by this paragraph shall be determined in accordance with applicable
law.

(3)          The Guarantor shall be
subrogated to all rights of the Holders against the Corporation in respect of
any amounts paid by Guarantor pursuant to the provisions of the Guarantee or
this Indenture; provided, however, that the Guarantor shall not be entitled to
enforce or to receive any payments arising out of, or based upon, such right of
subrogation until the principal of, premium, if any, and interest on all
Securities issued hereunder shall have been paid in full.

Section 1502          Execution
and Delivery of Guarantee.

To evidence the Guarantee set forth in Section 1501,
the Corporation and the Guarantor hereby agree that a notation of such
Guarantee shall be endorsed on each Security authenticated and delivered by the
Trustee, that such notation of such Guarantee shall be in the
form attached hereto as Exhibit A, and shall be executed on behalf of
the Guarantor by its Chairman of the Board, one of its Vice Chairmen of the
Board, its President or one of its Vice Presidents.

The Guarantor hereby agrees that the Guarantee set
forth in Section 1501 shall remain in full force and effect
notwithstanding any failure to endorse on each Security a notation of the
Guarantee.

If an Officer whose signature is on this Indenture no
longer holds that office at the time the Trustee authenticates the Security on
which the Guarantee is endorsed, the Guarantee shall be valid nevertheless.

The delivery of any Security by the Trustee, after the
authentication thereof hereunder, shall constitute due delivery of the
Guarantee set forth in this Indenture on behalf of the Guarantor.

Section 1503          Release
of Guarantor.

The Guarantor shall be released from all of its
obligations under the Guarantee with respect to Securities of any
series and under this Indenture if:

(1)          the Corporation or the
Guarantor has transferred all or substantially all of its properties and assets
to any Person (whether by sale, merger or consolidation or otherwise), or has
merged into or consolidated with another Person, pursuant to a transaction in
compliance with this Indenture and:

(a) the
corporation to whom all or substantially all of the properties and assets of
the Corporation or the Guarantor are transferred, or whom the Corporation or
the Guarantor has merged into or consolidated with, has expressly assumed, by
an indenture supplemental hereto, executed and delivered to the Trustee, in
form satisfactory to the Trustee, all the obligations of the Guarantor
under the Guarantee with respect to Securities of any series and this
Indenture;

(b)                immediately before and immediately
after giving effect to such transaction, no Event of Default, and no event or
condition which, after notice or lapse of time or both, would become an Event
of Default with respect to Securities of any series, shall have occurred and be
continuing; and

 

 45
 

 

(c) the Guarantor has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such consolidation, merger or transfer and such supplemental indenture comply
with this Section 1503 and that all conditions precedent herein provided
for relating to such transaction have been complied with;

(2)          the Guarantor liquidates (other
than pursuant to any Bankruptcy Law) and complies, if applicable, with the
provisions of this Indenture; provided that
if a Person and its Affiliates, if any, shall acquire all or substantially all
of the assets of the Guarantor upon such liquidation the Guarantor shall
liquidate only if:

(a)  the
Person and each such Affiliate (or the common corporate parent of such Person
and its Affiliates, if such Person and its Affiliates are wholly owned by such
parent) which acquire or will acquire all or a portion of the assets of the
Guarantor shall expressly assume, by an indenture supplemental hereto, executed
and delivered to the Trustee, in form satisfactory to the Trustee, all the
obligations of the Guarantor, under the Guarantee and this Indenture and such
Person or any of such Affiliates (or such parent) shall be a corporation
organized and existing under the laws of the United States or any State thereof
or the District of Columbia;

(b)  immediately after giving effect to such
transaction, no Event of Default, and no event or condition which, after notice
or lapse of time or both, would become an Event of Default, shall have occurred
and be continuing with respect to Securities of any series; and

(c) the Guarantor has delivered to the
Trustee an Officers’ Certificate and an Opinion of Counsel, each stating that
such liquidation and such supplemental indenture comply with this Section 1503
and that all conditions precedent herein provided for relating to such
transaction have been complied with; or

(3)          the Corporation ceases for any
reason to be a “wholly owned subsidiary” of the Guarantor (as such term is
defined in Rule 1-02(z) of the Regulation S-X promulgated by
the SEC).

Upon any assumption of the Guarantee by any Person
pursuant to this Section 1503, such Person may exercise every right
and power of the Guarantor under this Indenture with the same effect as if such
successor corporation had been named as the Guarantor herein with respect to
Securities of any series, and all the obligations of the Guarantor, hereunder
and under the Guarantee and the Indenture shall terminate with respect to
Securities of any series.

Section 1504          When
Guarantor May Merge, etc.

The Guarantor shall not consolidate with or merge with
or into any other Person or, directly or indirectly, sell, lease or convey all
or substantially all of its assets (computed on a consolidated basis) to
another Person, and may not permit any Person to, directly or indirectly,
sell, lease or convey all or substantially all of its assets to the Guarantor,
whether in a single transaction or a series of related transactions,
unless:

(1)          either the Guarantor shall be
the continuing person, or the Person (if other than the Guarantor) formed by
such consolidation or into or with which the Guarantor is merged or to which
the assets of the Guarantor are transferred shall be a corporation organized
and validly existing under the laws of the United States or any State thereof
or the District of Columbia and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in
form satisfactory to the Trustee, all the obligations of the Guarantor
under the Guarantee and this Indenture;

(2)          immediately after giving effect
to such transaction, no Event of Default, and no event or condition which,
after notice or lapse of time or both, would become an Event of Default, shall
have occurred and be continuing with respect to Securities of any series; and

(3)          the Guarantor has delivered to
the Trustee an Officers’ Certificate and an Opinion of Counsel, each stating
that such consolidation, merger, sale, conveyance or lease and such
supplemental indenture comply

 46
 

 

with this Section 1504
and that all conditions precedent herein provided for relating to such
transaction have been complied with.

Upon any consolidation or merger, or any sale,
conveyance or lease of all or substantially all of the assets of the Guarantor,
in accordance with this Section 1504, the successor corporation formed by
such consolidation or into or with which the Guarantor is merged or to which
such transfer is made shall succeed to, and be substituted for, and
may exercise every right and power of, the Guarantor under this Indenture
with the same effect as if such successor corporation had been named as the
Guarantor herein, and all the obligations of the predecessor Guarantor
hereunder and under the Guarantee and the Indenture shall terminate.

*  * 
*  *

This instrument
may be executed in any number of counterparts, each of which so executed
shall be deemed to be an original, but all such counterparts shall together
constitute but one and the same instrument.

In Witness Whereof, the parties hereto have caused
this Indenture to be duly executed and attested, each as of the day and year
first above written.

 

	
  

  	
   

  	
  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

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  U.S. Bank National Association, as Trustee

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ Raymond S. Haverstock

  
	
   

  	
   

  	
  Name: Raymond S. Haverstock

  
	
   

  	
   

  	
  Authorized Signatory

  

 

 47
 

 

 

EXHIBIT A

FORM OF NOTATION OF GUARANTEE

NOTATION OF GUARANTEE OF HARRAH’S ENTERTAINMENT, INC.

For value received, the
undersigned, Harrah’s Entertainment, Inc. (the “Guarantor”)(which term
includes any successor person under the Indenture), has unconditionally
guaranteed, to the extent set forth in the Indenture and subject to the
provisions in the Indenture, dated as of
                        
      (the “Indenture”), among Harrah’s Operating Company, Inc.
(the “Corporation”), the Guarantor and U.S. Bank National Association,
as trustee (the “Trustee”), (a) the due and punctual payment of the
principal of, premium, if any, and interest on, the Securities, whether at
maturity, by acceleration, redemption or otherwise, the due and punctual
payment of interest on overdue principal of and interest on the Securities, if
any, if lawful, and the due and punctual performance of all other obligations
of the Corporation to the Holders or the Trustee all in accordance with the
terms of the Indenture and (b) in case of any extension of time of payment
or renewal of any Securities or any of such other obligations, that the same
will be promptly paid in full when due or performed in accordance with the
terms of the extension or renewal, whether at stated maturity, by acceleration
or otherwise. The obligations of the Guarantor to the Holders of Securities and
to the Trustee pursuant to the Guarantee and the Indenture are expressly set
forth in Article 15 of the Indenture and reference is hereby made to the
Indenture for the precise terms of the Guarantee. Each Holder of a Security, by
accepting the same, (a) agrees to and shall be bound by such provisions, (b) authorizes
and directs the Trustee, on behalf of such Holder, to take such action as
may be necessary or appropriate to effectuate the subordination as
provided in the Indenture and (c) appoints the Trustee attorney-in-fact of
such Holder for such purpose; provided, however,
that the Indebtedness evidenced by this Security Guarantee shall cease to be so
subordinated and subject in right of payment upon any defeasance of this
Security in accordance with the provisions of the Indenture.

Capitalized terms used
but not defined herein have the meanings given to them in the Indenture.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 48
 

 

IN WITNESS WHEREOF, the undersigned has caused this
notation of Guarantee to be duly executed.

Date:

 

	
  

  	
   

  	
  HARRAH’S ENTERTAINMENT, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

 49

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00105-of-00352.parquet"}]]