Document:

exv4w1

Exhibit 4.1

 

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.

as Issuers

and

THE SUBSIDIARY GUARANTORS NAMED HEREIN

as Guarantors

$350,000,000

8.75% SENIOR NOTES DUE 2019

FIFTEENTH

SUPPLEMENTAL

INDENTURE

 

Dated as of April 20, 2009

 

U.S. BANK NATIONAL ASSOCIATION

as Trustee

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE I
	 	 	2	 
	Section 1.01. Establishment
	 	 	2	 
	 
	 	 	 	 
	ARTICLE II DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	2	 
	Section 2.01. Definitions
	 	 	2	 
	Section 2.02. Other Definitions
	 	 	7	 
	 
	 	 	 	 
	ARTICLE III THE NOTES
	 	 	7	 
	Section 3.01. Form
	 	 	7	 
	Section 3.02. Issuance of Additional Notes
	 	 	7	 
	Section 3.03. Global Security Legend
	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV REDEMPTION AND PREPAYMENT
	 	 	8	 
	Section 4.01. Optional Redemption
	 	 	8	 
	 
	 	 	 	 
	ARTICLE V COVENANTS
	 	 	8	 
	Section 5.01. Compliance Certificate
	 	 	8	 
	Section 5.02. Limitations on Liens
	 	 	9	 
	Section 5.03. Restriction of Sale-leaseback Transactions
	 	 	10	 
	Section 5.04. SEC Reports; Financial Statements
	 	 	11	 
	Section 5.05. Additional Subsidiary Guarantees
	 	 	11	 
	 
	 	 	 	 
	ARTICLE VI SUCCESSORS
	 	 	12	 
	Section 6.01. Consolidation and Mergers of the Issuers
	 	 	12	 
	Section 6.02. Rights and Duties of Successor
	 	 	12	 
	Section 6.03. Supplemental Indenture
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VII DEFAULTS AND REMEDIES
	 	 	13	 
	Section 7.01. Events of Default
	 	 	13	 
	 
	 	 	 	 
	ARTICLE VIII LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	 	 	15	 
	Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance
	 	 	15	 
	Section 8.02. Legal Defeasance and Discharge
	 	 	15	 
	Section 8.03. Covenant Defeasance
	 	 	15	 
	Section 8.04. Conditions to Legal or Covenant Defeasance
	 	 	16	 
	Section 8.05. Deposited Money and U.S. Government Obligations to be Held in Trust;
Other Miscellaneous Provisions
	 	 	17	 
	Section 8.06. Repayment to Issuers
	 	 	18	 
	Section 8.07. Reinstatement
	 	 	18	 
	 
	 	 	 	 
	ARTICLE IX SUBSIDIARY GUARANTEES
	 	 	18	 
	Section 9.01. Subsidiary Guarantees
	 	 	18	 
	Section 9.02. Limitation on Liability
	 	 	20	 
	Section 9.03. Successors and Assigns
	 	 	20	 

-i-

 

	 	 	 	 	 
	Section 9.04. No Waiver
	 	 	20	 
	Section 9.05. Modification
	 	 	20	 
	Section 9.06. Execution of Supplemental Indenture for Future Subsidiary Guarantors
	 	 	21	 
	Section 9.07. Release of Guarantee
	 	 	21	 
	 
	 	 	 	 
	ARTICLE X MISCELLANEOUS
	 	 	21	 
	Section 10.01. Additional Amendments
	 	 	21	 
	Section 10.02. Integral Part
	 	 	22	 
	Section 10.03. Adoption, Ratification and Confirmation
	 	 	22	 
	Section 10.04. Counterparts
	 	 	22	 
	Section 10.05. Governing Law
	 	 	22	 

EXHIBIT A:     Form of Note

EXHIBIT B:      Form of Supplemental Indenture

-ii-

 

          FIFTEENTH SUPPLEMENTAL INDENTURE dated as of April 20, 2009 (this “Supplemental Indenture”)
among PLAINS ALL AMERICAN PIPELINE, L.P., a Delaware limited partnership (the “Partnership”), PAA
FINANCE CORP., a wholly owned subsidiary of the Partnership and a Delaware corporation (“PAA
Finance” and, together with the Partnership, the “Issuers”), and the subsidiary guarantors
signatory hereto (the “Subsidiary Guarantors”), and U.S. BANK NATIONAL ASSOCIATION, as trustee (the
“Trustee”).

W I T N E S S E T H:

          WHEREAS, the Issuers have heretofore entered into an Indenture, dated as of September 25, 2002
(the “Original Indenture”), with U.S. Bank National Association (successor to Wachovia Bank,
National Association), as trustee;

          WHEREAS, the Original Indenture, as supplemented by this Supplemental Indenture, is herein
called the “Indenture”;

          WHEREAS, under the Original Indenture, a new series of Debt Securities may at any time be
established by the Boards of Directors of the Managing General Partner and PAA Finance in
accordance with the provisions of the Original Indenture and the form and terms of such series may
be established by a supplemental Indenture executed by the Issuers and the Trustee;

          WHEREAS, also under the Original Indenture, guarantors with respect to a series of Debt
Securities may be added as parties to the Indenture by a supplemental indenture executed by
themselves, the Issuers and the Trustee;

          WHEREAS, the Issuers propose to create under the Indenture a new series of Debt Securities,
such series to be guaranteed by the Subsidiary Guarantors;

          WHEREAS, additional Debt Securities of other series hereafter established, except as may be
limited in the Original Indenture as at the time supplemented and modified, may be issued from time
to time pursuant to the Original Indenture as at the time supplemented and modified; and

          WHEREAS, all conditions necessary to authorize the execution and delivery of this Supplemental
Indenture and to make it a valid and binding obligation of the Issuers and the Subsidiary
Guarantors have been done or performed.

          NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for
other good and valuable consideration, the sufficiency of which is hereby acknowledged, the parties
hereto hereby agree as follows:

 

 

ARTICLE I

          Section 1.01. Establishment. (a) There is hereby established a new series of Debt
Securities to be issued under the Indenture, to be designated as the Issuers’ 8.75% Senior Notes
due 2019 (the “Notes”).

          (b) There are to be authenticated and delivered $350,000,000 principal amount of Notes on the
Issue Date, and from time to time thereafter there may be authenticated and delivered an unlimited
principal amount of Additional Notes.

          (c) The Notes shall be issued initially in the form of one or more Global Securities in
substantially the form set out in Exhibit A hereto. The Depositary with respect to the Notes shall
be The Depository Trust Company.

          (d) Each Note shall be dated the date of authentication thereof and shall bear interest from
the date of original issuance thereof or from the most recent date to which interest has been paid
or duly provided for.

          (e) If and to the extent that the provisions of the Original Indenture are duplicative of, or
in contradiction with, the provisions of this Supplemental Indenture, the provisions of this
Supplemental Indenture shall govern.

ARTICLE II

DEFINITIONS AND INCORPORATION BY REFERENCE

          Section 2.01. Definitions. All capitalized terms used herein and not otherwise defined
below shall have the meanings ascribed thereto in the Original Indenture. The following are
additional definitions used in this Supplemental Indenture:

          “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
purposes of this definition, “control,” as used with respect to any Person, shall mean the
possession directly or indirectly of the power to direct or cause the direction of the management
or policies of such Person, whether through the ownership of voting securities, by agreement or
otherwise; and the terms “controlling,” “controlled by” and “under common control with” shall have
correlative meanings.

          “Attributable Indebtedness,” when used with respect to any Sale-leaseback Transaction, means,
as at the time of determination, the present value (discounted at the rate set forth or implicit in
the terms of the lease included in such transaction) of the total obligations of the lessee for
rental payments (other than amounts required to be paid on account of property taxes, maintenance,
repairs, insurance, assessments, utilities, operating and labor costs and other items that do not
constitute payments for property rights) during the remaining term of the lease included in such
Sale-leaseback Transaction (including any period for which such lease has been extended). In the
case of any lease that is terminable by the lessee upon the payment of a penalty or other
termination payment, such amount shall be the lesser of the amount determined assuming termination
upon the first date such lease may be terminated (in which case the amount

2

 

shall also include the amount of the penalty or termination payment, but no rent shall be considered as
required to be paid under such lease subsequent to the first date upon which it may be so
terminated) or the amount determined assuming no such termination.

          “Capital Interests” means any and all shares, interests, participations, rights or other
equivalents (however designated) of capital stock, including, without limitation, with respect to
partnerships, partnership interests (whether general or limited) and any other interest or
participation that confers on a Person the right to receive a share of the profits and losses of,
or distributions of assets of, such Person.

          “Consolidated Net Tangible Assets” means, at any date of determination, the total amount of
assets after deducting therefrom: (1) all current liabilities (excluding (a) any current
liabilities that by their terms are extendible or renewable at the option of the obligor thereon to
a time more than 12 months after the time as of which the amount thereof is being computed; and (b)
current maturities of long-term debt); and (2) the amount, net of any applicable reserves, of all
goodwill, trade names, trademarks, patents and other like intangible assets, all as set forth on
the consolidated balance sheet of the Partnership for its most recently completed fiscal quarter,
prepared in accordance with GAAP.

          “Debt” means any obligation created or assumed by any Person for the repayment of money
borrowed, any purchase money obligation created or assumed by such Person, and any guarantee of the
foregoing.

          “Funded Debt” means all Debt maturing one year or more from the date of the creation thereof,
all Debt directly or indirectly renewable or extendible, at the option of the debtor, by its terms
or by the terms of any instrument or agreement relating thereto, to a date one year or more from
the date of the creation thereof, and all Debt under a revolving credit or similar agreement
obligating the lender or lenders to extend credit over a period of one year or more.

          “Guarantee” means a guarantee of the Notes given by a Subsidiary Guarantor pursuant to the
Indenture, including all obligations under Article IX hereof.

          “General Partner” means PAA GP LLC, a Delaware limited liability company, and its successors
and permitted assigns as general partner of the Partnership.

          “Issue Date” means, with respect to the Notes, the date on which the Notes are initially
issued.

          “Managing General Partner” means (i) Plains All American GP LLC, a Delaware limited liability
company, and its successors and permitted assigns as the general partner of the sole member of the
General Partner or (ii) the business entity with the ultimate authority to manage the business and
operations of the Partnership.

          “Notes” has the meaning assigned to it in Section 1.01(a) hereof, and includes both the Notes
issued on the Issue Date and any Additional Notes issued thereafter.

3

 

          “Obligations” means any principal, interest, liquidated damages, penalties, fees,
indemnifications, reimbursement obligations, damages and other liabilities payable under the
documentation governing any Debt.

          “Pari Passu Debt” means any Funded Debt of either of the Issuers, whether outstanding on the
Issue Date or thereafter created, incurred or assumed, unless, in the case of any particular Funded
Debt, the instrument creating or evidencing the same or pursuant to which the same is outstanding
expressly provides that such Funded Debt shall be subordinated in right of payment to the Notes.

          “Partnership Agreement” means the Third Amended and Restated Agreement of Limited Partnership
of Plains All American Pipeline, L.P., amended and restated effective as of June 27, 2001, as
amended by Amendment No. 1 thereto dated as of April 15, 2004, Amendment No. 2 thereto dated as of
November 15, 2006, Amendment No. 3 thereto dated as of August 16, 2007, Amendment No. 4 thereto
dated April 14, 2008, to be effective as of January 1, 2007, Amendment No. 5 thereto dated as of
May 28, 2008 and as such may be otherwise amended, modified or supplemented from time to time.

          “Permitted Liens” means:

     (1) Liens upon rights-of-way for pipeline purposes;

     (2) any statutory or governmental Lien or Lien arising by operation of law, or any
mechanics’, repairmen’s, materialmen’s, suppliers’, carriers’, landlords’, warehousemen’s or
similar Lien incurred in the ordinary course of business which is not yet due or which is
being contested in good faith by appropriate proceedings and any undetermined Lien which is
incidental to construction, development, improvement or repair;

     (3) the right reserved to, or vested in, any municipality or public authority by the
terms of any right, power, franchise, grant, license, permit or by any provision of law, to
purchase or recapture or to designate a purchaser of, any property;

     (4) Liens of taxes and assessments which are (A) for the then current year, (B) not at
the time delinquent, or (C) delinquent but the validity of which is being contested at the
time by an Issuer or any Restricted Subsidiary in good faith;

     (5) Liens of, or to secure performance of, leases, other than capital leases;

     (6) any Lien upon, or deposits of, any assets in favor of any surety company or clerk
of court for the purpose of obtaining indemnity or stay of judicial proceedings;

     (7) any Lien upon property or assets acquired or sold by an Issuer or any Restricted
Subsidiary resulting from the exercise of any rights arising out of defaults on receivables;

4

 

     (8) any Lien incurred in the ordinary course of business in connection with worker’s
compensation, unemployment insurance, temporary disability, social security, retiree health
or similar laws or regulations or to secure obligations imposed by statute or governmental
regulations;

     (9) any Lien in favor of an Issuer or any Restricted Subsidiary;

     (10) any Lien in favor of the United States of America or any state thereof, or any
department, agency or instrumentality or political subdivision of the United States of
America or any state thereof, to secure partial, progress, advance, or other payments
pursuant to any contract or statute, or any Debt incurred by an Issuer or any Restricted
Subsidiary for the purpose of financing all or any part of the purchase price of, or the
cost of constructing, developing, repairing or improving, the property or assets subject to
such Lien;

     (11) any Lien securing industrial development, pollution control or similar revenue
bonds;

     (12) any Lien securing Debt of an Issuer or any Restricted Subsidiary, all or a portion
of the net proceeds of which are used, substantially concurrently with the funding thereof
(and for purposes of determining such “substantial concurrence,” taking into consideration,
among other things, required notices to be given to Holders of Outstanding Debt Securities
(including the Notes) in connection with such refunding, refinancing or repurchase, and the
required corresponding durations thereof), to refinance, refund or repurchase all
Outstanding Debt Securities (including the Notes), including the amount of all accrued
interest thereon and reasonable fees and expenses and premium, if any, incurred by the
Issuers or any Restricted Subsidiary in connection therewith;

     (13) Liens in favor of any Person to secure obligations under the provisions of any
letters of credit, bank guarantees, bonds or surety obligations required or requested by any
governmental authority in connection with any contract or statute;

     (14) any Lien upon or deposits of any assets to secure performance of bids, trade
contracts, leases or statutory obligations;

     (15) any Lien or privilege vested in any grantor, lessor or licensor or permittor for
rent or other charges due or for any other obligations or acts to be performed, the payment
of which rent or other charges or performance of which other obligations or acts is required
under leases, easements, rights-of-way, licenses, franchises, privileges, grants or permits,
so long as payment of such rent or the performance of such other obligations or acts is not
delinquent or the requirement for such payment or performance is being contested in good
faith by appropriate proceedings;

     (16) easements, exceptions or reservations in any property of the Partnership or any of
the Restricted Subsidiaries granted or reserved for the purpose of pipelines, roads, the
removal of oil, gas, coal or other minerals, and other like purposes for the joint or
common use of real property, facilities and equipment, which are incidental to, and do

5

 

not materially interfere with, the ordinary conduct of its business or the business of the
Partnership and its Subsidiaries, taken as a whole;

     (17) Liens arising under operating agreements, joint venture agreements, partnership
agreements, oil and gas leases, farmout agreements, division orders, contracts for sale,
transportation or exchange of oil and natural gas, unitization and pooling declarations and
agreements, area of mutual interest agreements and other agreements arising in the ordinary
course of the Partnership’s or any Restricted Subsidiary’s business that are customary in
the business of marketing, transportation and terminalling of crude oil and/or marketing of
liquefied petroleum gas; or

     (18) any obligations or duties to any municipality or public authority with respect to
any lease, easement, right-of-way, license, franchise, privilege, permit or grant.

          “Principal Property” means, whether owned or leased on the Issue Date or thereafter acquired:
(1) any of the pipeline assets of the Partnership or the pipeline assets of any Subsidiary of the
Partnership, including any related facilities employed in the transportation, distribution,
terminalling, gathering, treating, processing, marketing or storage of crude oil or refined
petroleum products, natural gas, natural gas liquids, fuel additives or petrochemicals, and (2) any
processing or manufacturing plant or terminal owned or leased by the Partnership or any Subsidiary
of the Partnership; except, in the case of either clause (1) or (2), (a) any such assets consisting
of inventories, furniture, office fixtures and equipment, including data processing equipment,
vehicles and equipment used on, or useful with, vehicles, and (b) any such assets, plant or
terminal which, in the good faith opinion of the Board of Directors, is not material in relation to
the activities of the Partnership or the activities of the Partnership and its Subsidiaries, taken
as a whole.

          “Restricted Subsidiary” means any Subsidiary of the Partnership owning or leasing, directly or
indirectly through ownership in another Subsidiary, any Principal Property.

          “Sale-leaseback Transaction” means the sale or transfer by an Issuer or any Subsidiary of the
Partnership of any Principal Property to a Person (other than an Issuer or a Subsidiary of the
Partnership) and the taking back by an Issuer or any Subsidiary of the Partnership, as the case may
be, of a lease of such Principal Property.

          “Subsidiary” means, with respect to any Person: (1) any other Person of which more than 50% of
the total voting power of shares or other Capital Interests entitled, without regard to the
occurrence of any contingency, to vote in the election of directors, managers or trustees (or
equivalent persons) thereof is at the time owned or controlled, directly or indirectly, by such
Person or one or more of the other Subsidiaries of such Person or a combination thereof; or (2) in
the case of a partnership, more than 50% of the partners’ Capital Interests, considering all
partners’ Capital Interests as a single class, is at the time owned or controlled, directly or
indirectly, by such Person or one or more of the other Subsidiaries of such Person or a combination
thereof.

6

 

          “Subsidiary Guarantors” means each of:

     (1) the Subsidiaries of the Partnership named as the “Subsidiary Guarantors” on the
signature pages of this Supplemental Indenture;

     (2) any other Subsidiary that executes a supplemental Indenture to provide a Guarantee
in accordance with the provisions of the Indenture; and

     (3) their respective successors and assigns.

Notwithstanding anything in the Indenture to the contrary, PAA Finance, Pacific Pipeline System
LLC, Pacific Terminals LLC, Pacific Energy Management LLC, Pacific Energy GP, LP and SLC Pipeline
LLC shall not be Subsidiary Guarantors.

          Section 2.02. Other Definitions.

	 	 	 	 	 
	 	 	Defined in	 
	Term	 	Section	 
	“Additional Notes”
	 	 	3.02	 
	“Covenant Defeasance”
	 	 	8.03	 
	“Event of Default”
	 	 	7.01	 
	“Legal Defeasance”
	 	 	8.02	 
	“Note Obligations”
	 	 	9.01	 
	“Payment Default
	 	 	7.01	 
	“Required Filing Dates”
	 	 	5.04	 
	“Successor Company”
	 	 	6.01	 

ARTICLE III

THE NOTES

          Section 3.01. Form. The Notes shall be issued initially in the form of one or more Global
Securities. The Notes and Trustee’s certificate of authentication shall be substantially in the
form of Exhibit A hereto, the terms of which are incorporated in and made a part of this
Supplemental Indenture, and the Issuers and the Trustee, by their execution and delivery of this
Supplemental Indenture, expressly agree to such terms and provisions and to be bound thereby.

          Section 3.02. Issuance of Additional Notes. The Issuers may, from time to time, issue an
unlimited amount of additional Notes (“Additional Notes”) under the Indenture, which shall be
issued in the same form as the Notes issued on the Issue Date and which shall have identical terms
as the Notes issued on the Issue Date other than with respect to the issue date, the date of first
payment of interest, if applicable, and the payment of interest accruing prior to the issue date.
The Notes issued on the Issue Date shall be limited in aggregate principal amount to $350,000,000.
The Notes issued on the Issue Date and any Additional Notes subsequently issued shall be treated as
a single series for all purposes under the Indenture, including waivers, amendments, redemptions
and offers to purchase.

7

 

          Section 3.03. Global Security Legend. Each of the Global Securities shall bear a legend in
substantially the following form:

          THIS GLOBAL SECURITY IS HELD BY OR ON BEHALF OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (A) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.08 OF THE ORIGINAL INDENTURE, (B) THIS
GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.15 OF THE ORIGINAL
INDENTURE, (C) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 2.10 OF THE ORIGINAL INDENTURE AND (D) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY OR ITS NOMINEE WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.

ARTICLE IV

REDEMPTION AND PREPAYMENT

          Section 4.01. Optional Redemption.

          (a) At their option at any time prior to maturity, the Issuers may choose to redeem all or any
portion of the Notes, at once or from time to time.

          (b) To redeem the Notes, the Issuers must pay a redemption price in an amount determined in
accordance with the provisions of paragraph number 5 of the form of Note in Exhibit A hereto, plus
accrued and unpaid interest, if any, to the redemption date (subject to the right of Holders on the
relevant record date to receive interest due on the relevant interest payment date).

          (c) Any redemption pursuant to this Section 4.01 shall otherwise be made pursuant to the
provisions of Sections 3.01 through 3.03 of the Original Indenture. The actual redemption price
shall be set forth in an Officers’ Certificate delivered to the Trustee no later than two Business
Days prior to each redemption date.

ARTICLE V

COVENANTS

          Section 5.01. Compliance Certificate. (a) In lieu of the Officers’ Certificate required
by Section 4.05 of the Original Indenture, the Issuers and Subsidiary Guarantors shall deliver to
the Trustee, within 90 days after the end of each fiscal year, an Officers’ Certificate stating
that a review of the activities of the Partnership and its Subsidiaries during the preceding fiscal
year has been made under the supervision of the signing Officers (one of whom shall be the
principal executive, financial or accounting officer of each Issuer and Subsidiary Guarantor) with
a view to determining whether the Issuers have kept, observed, performed and fulfilled their
obligations under the Indenture, and further stating, as to each such person signing such
certificate, that to the best of his or her knowledge the Issuers have kept, observed, performed

8

 

and fulfilled each and every covenant contained in the Indenture and are not in default in the
performance or observance of any of the terms, provisions and conditions of the Indenture (or, if a
Default or Event of Default shall have occurred, describing all such Defaults or Events of Default
of which he or she may have knowledge and what action the Issuers are taking or propose to take
with respect thereto).

          (b) The Issuers shall, so long as any of the Notes are outstanding, deliver to the Trustee,
forthwith and in any event within five days upon any officer of an Issuer becoming aware of any
Default or Event of Default or an event which, with notice or the lapse of time or both, would
constitute an Event of Default, an Officers’ Certificate specifying such Default or Event of
Default and what action the Issuers are taking or propose to take with respect thereto.

          Section 5.02. Limitations on Liens. The Issuers will not, nor will they permit any
Subsidiary of the Partnership to, create, assume, incur or suffer to exist any Lien upon any
Principal Property or upon any Capital Interests of any Restricted Subsidiary, whether owned or
leased on the Issue Date or thereafter acquired, to secure any Debt of an Issuer or any other
Person (other than Debt Securities), without in any such case making effective provision whereby
all of the Notes shall be secured equally and ratably with, or prior to, such Debt so long as such
Debt shall be so secured. This restriction shall not apply to:

          (a) Permitted Liens;

          (b) any Lien upon any property or assets created at the time of acquisition of such property
or assets by an Issuer or any Restricted Subsidiary or within one year after such time to secure
all or a portion of the purchase price for such property or assets or Debt incurred to finance such
purchase price, whether such Debt was incurred prior to, at the time of or within one year after
the date of such acquisition;

          (c) any Lien upon any property or assets to secure all or part of the cost of construction,
development, repair or improvements thereon or to secure Debt incurred prior to, at the time of, or
within one year after completion of such construction, development, repair or improvements or the
commencement of full operations thereof (whichever is later), to provide funds for any such
purpose;

          (d) any Lien upon any property or assets existing thereon at the time of the acquisition
thereof by an Issuer or any Restricted Subsidiary (whether or not the obligations secured thereby
are assumed by an Issuer or any Restricted Subsidiary); provided, however, that such Lien only
encumbers the property or assets so acquired;

          (e) any Lien upon any property or assets of a Person existing thereon at the time such Person
becomes a Restricted Subsidiary by acquisition, merger or otherwise; provided, however, that such
Lien only encumbers the property or assets of such Person at the time such Person becomes a
Restricted Subsidiary;

          (f) any Lien upon any property or assets of an Issuer or any Restricted Subsidiary in
existence on December 10, 2003 or provided for pursuant to agreements existing on December 10,
2003;

9

 

          (g) Liens imposed by law or order as a result of any proceeding before any court or regulatory
body that is being contested in good faith, and Liens which secure a judgment or other
court-ordered award or settlement as to which an Issuer or the applicable Restricted Subsidiary, as
the case may be, has not exhausted its appellate rights;

          (h) any extension, renewal, refinancing, refunding or replacement (or successive extensions,
renewals, refinancings, refundings or replacements) of Liens, in whole or in part, referred to in
clauses (a) through (g), inclusive, of this Section 5.02; provided, however, that any such
extension, renewal, refinancing, refunding or replacement Lien shall be limited to the property or
assets covered by the Lien extended, renewed, refinanced, refunded or replaced and that the
obligations secured by any such extension, renewal, refinancing, refunding or replacement Lien
shall be in an amount not greater than the amount of the obligations secured by the Lien extended,
renewed, refinanced, refunded or replaced and any expenses of the Issuers and the Restricted
Subsidiaries (including any premium) incurred in connection with such extension, renewal,
refinancing, refunding or replacement; or

          (i) any Lien resulting from the deposit of moneys or evidence of indebtedness in trust for the
purpose of defeasing Debt of an Issuer or any Restricted Subsidiary.

          Notwithstanding the foregoing provisions of this Section 5.02, the Issuers may, and may permit
any Restricted Subsidiary to, create, assume, incur or suffer to exist any Lien upon any Principal
Property or Capital Interests of a Restricted Subsidiary to secure Debt of an Issuer or any Person
(other than Debt Securities) that is not excepted by clauses (a) through (i), inclusive, of this
Section 5.02 without securing the Notes, provided that the aggregate principal amount of all Debt
then outstanding secured by such Lien and all other Liens not excepted by clauses (a) through (i),
inclusive, of this Section 5.02, together with all Attributable Indebtedness from Sale-leaseback
Transactions (excluding Sale-leaseback Transactions permitted by clauses (a) through (d),
inclusive, of Section 5.03), does not exceed 10% of Consolidated Net Tangible Assets.

          Section 5.03. Restriction of Sale-leaseback Transactions. The Issuers will not, and will
not permit any Subsidiary of the Partnership to, engage in a Sale-leaseback Transaction, unless:

          (a) such Sale-leaseback Transaction occurs within one year from the date of completion of the
acquisition of the Principal Property subject thereto or the date of the completion of
construction, development or substantial repair or improvement, or commencement of full operations
on such Principal Property, whichever is later;

          (b) the Sale-leaseback Transaction involves a lease for a period, including renewals, of not
more than three years;

          (c) the Attributable Indebtedness from that Sale-leaseback Transaction is an amount equal to
or less than the amount the Issuers or such Subsidiary would be allowed to incur as Debt secured by
a Lien on the Principal Property subject thereto without equally and ratably securing the Notes
under Section 5.02; or

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          (d) the Issuers or such Subsidiary, within a one-year period after such Sale-leaseback
Transaction, applies or causes to be applied an amount not less than the net sale proceeds from
such Sale-leaseback Transaction to (A) the prepayment, repayment, redemption, reduction or
retirement of any Pari Passu Debt of an Issuer or any Subsidiary of the Partnership, or (B) the
expenditure or expenditures for Principal Property used or to be used in the ordinary course of
business of the Partnership or its Subsidiaries.

          Notwithstanding the foregoing provisions of this Section 5.03, the Issuers may, and may permit
any Subsidiary of the Partnership to, effect any Sale-leaseback Transaction that is not excepted by
clauses (a) through (d), inclusive, of this Section 5.03, provided that the Attributable
Indebtedness from such Sale-leaseback Transaction, together with the aggregate principal amount of
then outstanding Debt (other than Debt Securities) secured by Liens upon Principal Properties not
excepted by clauses (a) through (i), inclusive, of Section 5.02, does not exceed 10% of
Consolidated Net Tangible Assets.

          Section 5.04. SEC Reports; Financial Statements.

          (a) Whether or not the Partnership is then subject to the reporting requirements of Section 13
or 15(d) of the Exchange Act, the Partnership shall electronically file with the Commission, so
long as the Notes are Outstanding, the annual, quarterly and other periodic reports that the
Partnership is required to file (or would otherwise be required to file) with the Commission
pursuant to Sections 13 and 15(d) of the Exchange Act, and such documents shall be filed with the
Commission on or prior to the respective dates (the “Required Filing Dates”) by which the
Partnership is required to file (or would otherwise be required to file) such documents, unless, in
each case, such filings are not then permitted by the Commission.

          (b) If such filings are not then permitted by the Commission, or such filings are not
generally available on the Internet free of charge, the Issuers shall provide the Trustee with, and
the Trustee will mail to any Holder of Notes requesting in writing to the Trustee copies of, such
annual, quarterly and other periodic reports specified in Sections 13 and 15(d) of the Exchange Act
within 15 days after the respective Required Filing Dates.

          (c) [Intentionally omitted.]

          (d) The Partnership shall provide the Trustee with a sufficient number of copies of all
reports and other documents and information that the Trustee may be required to deliver to Holders
of Notes under clause (b) of this Section 5.04.

          (e) Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein,
including the Partnership’s compliance with any of its covenants hereunder (as to which the
Trustee is entitled to rely exclusively on Officers’ Certificates).

          Section 5.05. Additional Subsidiary Guarantees. If any Subsidiary (or its successor) of
the Partnership that is not then a Subsidiary Guarantor guarantees Debt of either of

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the Issuers or
any other Subsidiary of the Partnership, in either case after the Issue Date, then such Subsidiary
(or successor) shall execute and deliver a supplemental Indenture providing for the guarantee of
the payment of the Notes pursuant to Article IX hereof.

ARTICLE VI

SUCCESSORS

          With respect to the Notes, the provisions of this Article VI shall preempt the provisions of
Article X of the Original Indenture in their entirety.

          Section 6.01. Consolidation and Mergers of the Issuers. Neither Issuer shall consolidate
or amalgamate with or merge with or into any Person, or sell, convey, transfer, lease or otherwise
dispose of all or substantially all its assets to any Person, whether in a single transaction or a
series of related transactions, except (1) in accordance with the provisions of the Partnership
Agreement, and (2) unless: (a) either (i) such Issuer shall be the surviving Person in the case of
a merger or (ii) the resulting, surviving or transferee Person if other than such Issuer (the
“Successor Company”) shall be a partnership, limited liability company or corporation organized and
existing under the laws of the United States, any state thereof or the District of Columbia
(provided that PAA Finance may not merge, amalgamate or consolidate with or into another Person
other than a corporation satisfying such requirement for so long as the Partnership is not a
corporation) and the Successor Company shall expressly assume, by an indenture supplemental hereto,
executed and delivered to the Trustee, in form reasonably satisfactory to the Trustee, the due and
punctual payment of the principal of, premium, if any, and interest on all of the Notes, and the
due and punctual performance or observance of all the other obligations under the Indenture to be
performed or observed by such Issuer; (b) immediately after giving effect to such transaction or
series of transactions, no Default or Event of Default would occur or be continuing; (c) if such
Issuer is not the continuing Person, then each Subsidiary Guarantor, unless it has become the
Successor Company, shall confirm that its Guarantee shall continue to apply to the obligations
under the Notes and the Indenture; and (d) such Issuer shall have delivered to the Trustee an
Officers’ Certificate and an Opinion of Counsel, each stating that such consolidation,
amalgamation, merger, sale, conveyance, transfer, lease or other disposition and such supplemental
Indenture (if any) comply with this Section 6.01 and any other applicable provisions of the
Indenture.

          Section 6.02. Rights and Duties of Successor. In case of any consolidation, amalgamation
or merger where an Issuer is not the continuing Person, or disposition of all or substantially all
of the assets of an Issuer in accordance with Section 6.01, the Successor Company shall succeed to
and be substituted for such Issuer with the same effect as if it had been named herein as the
respective party to the Indenture, and the predecessor entity shall be released from all
liabilities and obligations under the Indenture and the Notes, except that no such release will
occur in the case of a lease of all or substantially all of an Issuer’s assets. In case of any
such
consolidation, amalgamation, merger, sale, conveyance, transfer, lease or other disposition, such
changes in phraseology and form (but not in substance) may be made in the Notes thereafter to be
issued as may be appropriate.

          Section 6.03. Supplemental Indenture. Section 9.01 of the Original Indenture is hereby
amended, with respect to the Notes, by adding the words “or the confirmation of a

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Subsidiary
Guarantor’s” immediately after the word “Issuer’s” in Section 9.01(c).

ARTICLE VII

DEFAULTS AND REMEDIES

          Section 7.01. Events of Default. With respect to the Notes, the provisions of this Section
7.01 shall preempt the provisions of the first and final paragraphs of Section 6.01 of the Original
Indenture in their entirety.

          (a) An “Event of Default” occurs if:

     (i) the Issuers default for 60 days in the payment when due of interest on the
Notes;

     (ii) the Issuers default in the payment when due of principal of or premium, if
any, on the Notes at maturity, upon redemption or otherwise;

     (iii) failure by an Issuer or any Subsidiary Guarantor for 90 days after
receipt of notice by the Issuers from the Trustee or to the Issuers and the Trustee
by the Holders of at least 25% in principal amount of the Notes then Outstanding to
comply with any other term, covenant or warranty in the Indenture or the Notes
(provided that notice need not be given, and an Event of Default shall
occur, 90 days after any breach of the provisions of Section 6.01 hereof);

     (iv) default under any mortgage, indenture or instrument under which there may
be issued or by which there may be secured or evidenced any Debt of an Issuer or any
of the Partnership’s Subsidiaries (or the payment of which is guaranteed by the
Partnership or any of its Subsidiaries), whether such Debt or guarantee now exists
or is created after the Issue Date, if that default (A) is caused by a failure to
pay principal of or premium, if any, or interest on such Debt prior to the
expiration of the grace period provided in such Debt (a “Payment Default”) or (B)
results in the acceleration of the maturity of such Debt to a date prior to its
originally stated maturity, and, in each case described in clause (A) or (B), the
principal amount of any such Debt, together with the principal amount of any other
such Debt under which there has been a Payment Default or the maturity of which has
been so accelerated, aggregates $25.0 million or more; provided,
further, that if any such default is cured or waived or any such
acceleration rescinded, or such Debt is repaid, within a period of 30 days from the
continuation of such default beyond the applicable grace period or the occurrence of
such acceleration, as the case may be, such Event of Default and any consequential
acceleration of the
Notes shall be automatically rescinded, so long as such rescission does not
conflict with any judgment or decree;

     (v) except as permitted by the Indenture, any Guarantee shall cease for any
reason to be in full force and effect (except as otherwise provided in the
Indenture) or is declared null and void in a judicial proceeding or any Subsidiary

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Guarantor, or any Person acting on behalf of any Subsidiary Guarantor, shall deny or
disaffirm its obligations under the Indenture or its Guarantee;

     (vi) an Issuer or any Subsidiary Guarantor 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 they become due; or

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

     (A) is for relief against an Issuer or any Subsidiary Guarantor in an
involuntary case;

     (B) appoints a custodian of an Issuer or any Subsidiary Guarantor or
for all or substantially all of the property of an Issuer or any Subsidiary
Guarantor; or

     (C) orders the liquidation of an Issuer or any Subsidiary Guarantor;

          and the order or decree remains unstayed and in effect for 60 consecutive days.

          (b) In the case of an Event of Default arising from Section 7.01(a)(vi) or 7.01(a)(vii) hereof
involving an Issuer (and, for the avoidance of doubt, excluding any such Event of Default that
involves only one or more Subsidiary Guarantors), the principal amount of all Outstanding Notes and
interest thereon shall become due and payable immediately without further action or notice. If any
other Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
principal amount of the then Outstanding Notes may declare the principal amount of all the Notes
and interest thereon to be due and payable immediately by a
notice in writing to the Issuers (and to the Trustee if given by the Holders) and upon any
such declaration such principal amount and interest thereon shall be due and payable immediately.

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ARTICLE VIII

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

          Section 8.01. Option to Effect Legal Defeasance or Covenant Defeasance. The Issuers may,
at the option of the Boards of Directors evidenced by a Board Resolution set forth in an Officers’
Certificate, at any time, elect to have either Section 8.02 or 8.03 hereof be applied to all
outstanding Notes and Guarantees upon compliance with the conditions set forth below in this
Article VIII.

          Section 8.02. Legal Defeasance and Discharge. Upon the Issuers’ exercise under Section
8.01 hereof of the option applicable to this Section 8.02, each of the Issuers and the Subsidiary
Guarantors shall, subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
be deemed to have been discharged from its obligations with respect to all outstanding Notes and
Guarantees on the date the conditions set forth below are satisfied (hereinafter, “Legal
Defeasance”). For this purpose, Legal Defeasance means that each of the Issuers shall be deemed to
have paid and discharged the entire Debt represented by the outstanding Notes, which shall
thereafter be deemed to be “Outstanding” only for the purposes of Section 8.05 hereof and the other
Sections of the Indenture referred to in (a) and (b) below, and to have satisfied all its other
obligations under such Notes and the Indenture, and each of the Subsidiary Guarantors shall be
deemed to have discharged its obligations under its Guarantee (and the Trustee, on demand of and at
the expense of the Issuers, shall execute proper instruments acknowledging the same), except for
the following provisions which shall survive until otherwise terminated or discharged hereunder:

          (a) the rights of Holders of Outstanding Notes to receive solely from the trust fund described
in Section 8.04 hereof, and as more fully set forth in such Section, payments in respect of the
principal of, premium on, if any, and interest on such Notes when such payments are due,

          (b) the Issuers’ obligations with respect to such Notes under Sections 2.07, 2.08, 2.09 and
4.02 of the Original Indenture,

          (c) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Issuers’ obligations in connection therewith,

          (d) this Article VIII, and

          (e) the Issuers’ rights of optional redemption under Section 4.01 hereof.

Subject to compliance with this Article VIII, the Issuers may exercise their option under this
Section 8.02 notwithstanding the prior exercise of their option under Section 8.03 hereof.

          Section 8.03. Covenant Defeasance. Upon the Issuers’ exercise under Section 8.01 hereof of
the option applicable to this Section 8.03, each of the Issuers shall, subject to the
satisfaction of the conditions set forth in Section 8.04 hereof, be released from its obligations
under the covenants contained in Sections 5.02, 5.03, 5.04 and 5.05 hereof with respect to the
Outstanding Notes on and after the date the conditions set forth in Section 8.04 are satisfied

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(hereinafter, “Covenant Defeasance”), and the Notes shall thereafter be deemed not “Outstanding”
for the purposes of any direction, waiver, consent or declaration or act of Holders (and the
consequences of any thereof) in connection with such covenants, but shall continue to be deemed
“Outstanding” for all other purposes hereunder (it being understood that such Notes shall not be
deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that,
with respect to the Outstanding Notes, the Issuers may omit to comply with and shall have no
liability in respect of any term, condition or limitation set forth in any such covenant, whether
directly or indirectly, by reason of any reference elsewhere herein to any such covenant or by
reason of any reference in any such covenant to any other provision herein or in any other document
and such omission to comply shall not constitute a Default or an Event of Default under Section
7.01 hereof, but, except as specified above, the remainder of the Indenture, the Guarantees and
such Notes shall be unaffected thereby.

          Section 8.04. Conditions to Legal or Covenant Defeasance. The following shall be the
conditions to the application of either Section 8.02 or 8.03 hereof to the Outstanding Notes:

          In order to exercise either Legal Defeasance or Covenant Defeasance:

          (a) the Issuers must irrevocably deposit with the Trustee, in trust, for the benefit of the
Holders of the Notes, cash in Dollars, U.S. Government Obligations, or a combination thereof, in
such amounts as shall be sufficient, in the written opinion of a nationally recognized firm of
independent public accountants, to pay the principal of, premium on, if any, and interest on the
Outstanding Notes at the Stated Maturity thereof or on the applicable redemption date, as the case
may be, and the Issuers must specify whether the Notes are being defeased to maturity or to a
particular redemption date;

          (b) in the case of an election under Section 8.02 hereof, the Issuers shall have delivered to
the Trustee an Opinion of Counsel confirming that (i) the Issuers have received from, or there has
been published by, the Internal Revenue Service a ruling or (ii) since the date of the 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 the Outstanding
Notes shall not recognize income, gain or loss for federal income tax purposes as a result of such
Legal Defeasance and shall 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 Legal Defeasance had not occurred;

          (c) in the case of an election under Section 8.03 hereof, the Issuers shall have delivered to
the Trustee an Opinion of Counsel confirming that the Holders of the Outstanding Notes shall not
recognize income, gain or loss for federal income tax purposes as a result of such Covenant
Defeasance and shall 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 Covenant Defeasance had not occurred;

          (d) no Default or Event of Default shall have occurred and be continuing either (i) on the
date of such deposit (other than a Default or Event of Default resulting from the incurrence of
Debt all or a portion of the proceeds of which shall be applied to such deposit) or

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(ii) insofar as
Section 7.01(a)(vi) or 7.01(a)(vii) hereof is concerned, at any time in the period ending on the
91st day after the date of deposit;

          (e) such Legal Defeasance or Covenant Defeasance shall not result in a breach or violation of,
or constitute a default under, any agreement or instrument (other than the Notes and the Indenture)
to which the Partnership or any of its Subsidiaries is a party or by which the Partnership or any
of its Subsidiaries is bound;

          (f) the Issuers shall have delivered to the Trustee an Opinion of Counsel to the effect that
after the 91st day following the deposit, the trust funds shall not be subject to the effect of any
applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights
generally;

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

          (h) the Issuers shall have delivered to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent provided for or relating to the Legal
Defeasance or the Covenant Defeasance have been complied with.

          Section 8.05. Deposited Money and U.S. Government Obligations to be Held in Trust; Other
Miscellaneous Provisions. Subject to Section 8.06 hereof, all money and U.S. Government
Obligations (including the proceeds thereof) deposited with the Trustee (or other qualifying
trustee, collectively for purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04
hereof in respect of the outstanding Notes shall be held in trust and applied by the Trustee, in
accordance with the provisions of such Notes and the Indenture, to the payment, either directly or
through any paying agent (including an Issuer acting as paying agent) as the Trustee may determine,
to the Holders of such Notes of all sums due and to become due thereon in respect of principal,
premium, if any, and interest, but such money need not be segregated from other funds except to the
extent required by law.

          The Issuers shall pay and indemnify the Trustee against any tax, fee or other charge imposed
on or assessed against the cash or U.S. Government Obligations deposited pursuant to Section 8.04
hereof or the principal and interest received in respect thereof other than any such tax, fee or
other charge which by law is for the account of the Holders of the Outstanding Notes.

          Anything in this Article VIII to the contrary notwithstanding, the Trustee shall deliver or
pay to the Issuers from time to time upon the written request of the Issuers any money or U.S.
Government Obligations held by it as provided in Section 8.04 hereof which, in the opinion of a
nationally recognized firm of independent public accountants expressed in a written
certification thereof delivered to the Trustee (which may be the opinion delivered under
Section 8.04(a) hereof), are in excess of the amount thereof that would then be required to be
deposited to effect an equivalent Legal Defeasance or Covenant Defeasance.

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          Section 8.06. Repayment to Issuers. Any money deposited with the Trustee or any paying
agent, or then held by the Issuers, in trust for the payment of the principal of, premium on, if
any, or interest on any Note and remaining unclaimed for two years after such principal, premium,
if any, or interest has become due and payable shall be paid to the Issuers on their written
request or (if then held by the Issuers) shall be discharged from such trust; and the Holder of
such Note shall thereafter, as an unsecured creditor, look only to the Issuers for payment thereof,
and all liability of the Trustee or such paying agent with respect to such trust money, and all
liability of the Issuers 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 Issuers cause to be published once, in the New York Times and
The Wall Street Journal (national edition), 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
notification or publication, any unclaimed balance of such money then remaining shall be repaid to
the Issuers.

          Section 8.07. Reinstatement. If the Trustee or paying agent is unable to apply any Dollars
or U.S. Government Obligations in accordance with Section 8.02 or 8.03 hereof, as the case may be,
by reason of any order or judgment of any court or governmental authority enjoining, restraining or
otherwise prohibiting such application, then the Issuers’ obligations under the Indenture and the
Notes and the Subsidiary Guarantors’ obligations under the Guarantees shall be revived and
reinstated as though no deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such
time as the Trustee or paying agent is permitted to apply all such money in accordance with Section
8.02 or 8.03 hereof, as the case may be; provided, however, that, if the Issuers
make any payment of principal of, premium on, if any, or interest on any Note following the
reinstatement of their obligations, the Issuers shall be subrogated to the rights of the Holders of
such Notes to receive such payment from the money held by the Trustee or paying agent.

ARTICLE IX

SUBSIDIARY GUARANTEES

          Section 9.01. Subsidiary Guarantees. (a) Each Subsidiary Guarantor hereby jointly and
severally unconditionally and irrevocably guarantees on a senior basis to each Holder and to the
Trustee and its successors and assigns (i) the full and punctual payment of principal, premium, if
any, and interest with respect to, the Notes when due, whether at maturity, by acceleration, by
redemption or otherwise, and all other monetary obligations of the Issuers under the Indenture
(including obligations to the Trustee) and the Notes and (ii) the full and punctual performance
within applicable grace periods of all other obligations of the Issuers under the Indenture and the
Notes (all the foregoing being hereinafter collectively called the “Note Obligations”). Each
Subsidiary Guarantor further agrees that the Note Obligations may be extended or renewed, in whole
or in part, without notice or further assent from each such Subsidiary Guarantor, and that each
such Subsidiary Guarantor shall remain bound under this Article IX notwithstanding any extension or
renewal of any Note Obligation.

          (b) Each Subsidiary Guarantor waives presentation to, demand of, payment from and protest to
the Issuers of any of the Note Obligations and also waives notice of protest

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for nonpayment. Each
Subsidiary Guarantor waives notice of any Default or Event of Default under the Notes or the Note
Obligations. The obligations of each Subsidiary Guarantor hereunder shall not be affected by (i)
the failure of any Holder or the Trustee to assert any claim or demand or to enforce any right or
remedy against the Issuers or any other Person under the Indenture, the Notes or any other
agreement or otherwise; (ii) any extension or renewal of any thereof; (iii) any rescission, waiver,
amendment or modification of any of the terms or provisions of the Indenture, the Notes or any
other agreement; (iv) the release of any security held by any Holder or the Trustee for the Note
Obligations or any of them; (v) the failure of any Holder or Trustee to exercise any right or
remedy against any other guarantor of the Note Obligations; or (vi) any change in the ownership of
such Subsidiary Guarantor, except as provided in Section 9.02 hereof.

          (c) Each Subsidiary Guarantor further agrees that its Guarantee herein constitutes a guarantee
of payment, performance and compliance when due (and not a guarantee of collection) and waives any
right to require that any resort be had by any Holder or the Trustee to any security held for
payment of the Note Obligations.

          (d) The obligations of each Subsidiary Guarantor hereunder shall not be subject to any
reduction, limitation, impairment or termination for any reason other than indefeasible payment in
full of the Note Obligations, including any claim of waiver, release, surrender, alteration or
compromise, and shall not be subject to any defense of setoff, counterclaim, recoupment or
termination whatsoever or by reason of the invalidity, illegality or unenforceability of the Note
Obligations or otherwise. Without limiting the generality of the foregoing, the obligations of
each Subsidiary Guarantor herein shall not be discharged or impaired or otherwise affected by the
failure of any Holder or the Trustee to assert any claim or demand or to enforce any remedy under
the Indenture, the Notes or any other agreement, by any waiver or modification of any thereof, by
any default, failure or delay, willful or otherwise, in the performance of the obligations, or by
any other act or thing or omission or delay to do any other act or thing which may or might in any
manner or to any extent vary the risk of any Subsidiary Guarantor or would otherwise operate as a
discharge of any Subsidiary Guarantor as a matter of law or equity.

          (e) Each Subsidiary Guarantor further agrees that its Guarantee herein shall continue to be
effective or be reinstated, as the case may be, if at any time payment, or any part thereof, of
principal, premium, if any, or interest with respect to any Note Obligation is rescinded or must
otherwise be restored by any Holder or the Trustee upon the bankruptcy or reorganization of either
of the Issuers or otherwise.

          (f) In furtherance of the foregoing and not in limitation of any other right which any Holder
or the Trustee has at law or in equity against any Subsidiary Guarantor by virtue hereof, upon the
failure of the Issuers to pay the principal, premium, if any, or interest with respect to any Note
Obligation when and as the same shall become due, whether at maturity, by acceleration, by
redemption or otherwise, or to perform or comply with any other Note Obligation, each Subsidiary
Guarantor hereby promises to and shall forthwith pay, or cause to be
paid, in cash, to the Holders or the Trustee an amount equal to the sum of (i) the unpaid
principal amount of such Note Obligations, (ii) accrued and unpaid interest on such Note

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Obligations (but only to the extent not prohibited by law) and (iii) all other monetary Note
Obligations of the Issuers to the Holders and the Trustee.

          (g) Each Subsidiary Guarantor agrees that it shall not be entitled to any right of subrogation
in relation to the Holders in respect of any Note Obligations guaranteed hereby until payment in
full of all Note Obligations. Each Subsidiary Guarantor further agrees that, as between it, on the
one hand, and the Holders and the Trustee, on the other hand, (i) the maturity of the Note
Obligations guaranteed hereby may be accelerated as provided in Article VII hereof for the purposes
of any Subsidiary Guarantor’s Guarantee herein, notwithstanding any stay, injunction or other
prohibition preventing such acceleration in respect of the Note Obligations guaranteed hereby, and
(ii) in the event of any declaration of acceleration of such obligations as provided in Article VII
hereof, such Note Obligations (whether or not due and payable) shall forthwith become due and
payable by such Subsidiary Guarantor for the purposes of this Section 9.01.

          (h) Each Subsidiary Guarantor also agrees to pay any and all costs and expenses (including
reasonable attorneys’ fees) incurred by the Trustee or any Holder in enforcing any rights under
this Section 9.01.

          Section 9.02. Limitation on Liability. Any term or provision of the Indenture to the
contrary notwithstanding, the maximum, aggregate amount of the Note Obligations guaranteed
hereunder by any Subsidiary Guarantor shall not exceed the maximum amount that, after giving effect
to all other contingent and fixed liabilities of such Subsidiary Guarantor and to any collections
from or payments made by or on behalf of any other Subsidiary Guarantor in respect of its
obligations under its Guarantee, can be hereby guaranteed without rendering the Indenture, as it
relates to any Subsidiary Guarantor, voidable under applicable law relating to fraudulent
conveyance or fraudulent transfer.

          Section 9.03. Successors and Assigns. This Article IX shall be binding upon each
Subsidiary Guarantor and, except as provided in Section 9.07, its successors and assigns and shall
inure to the benefit of the successors and assigns of the Trustee and the Holders and, in the event
of any transfer or assignment of rights by any Holder or the Trustee, the rights and privileges
conferred upon that party in the Indenture and in the Notes shall automatically extend to and be
vested in such transferee or assignee, all subject to the terms and conditions of the Indenture.

          Section 9.04. No Waiver. Neither a failure nor a delay on the part of either the Trustee
or the Holders in exercising any right, power or privilege under this Article IX shall operate as a
waiver thereof, nor shall a single or partial exercise thereof preclude any other or further
exercise of any right, power or privilege. The rights, remedies and benefits of the Trustee and
the Holders herein expressly specified are cumulative and not exclusive of any other rights,
remedies or benefits which either may have under this Article IX at law, in equity, by statute or
otherwise.

          Section 9.05. Modification. No modification, amendment or waiver of any provision of this
Article IX, nor the consent to any departure by any Subsidiary Guarantor therefrom, shall in any
event be effective unless the same shall be in writing and signed by the

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Trustee, and then such
waiver or consent shall be effective only in the specific instance and for the purpose for which
given. No notice to or demand on any Subsidiary Guarantor in any case shall entitle such
Subsidiary Guarantor to any other or further notice or demand in the same, similar or other
circumstances.

          Section 9.06. Execution of Supplemental Indenture for Future Subsidiary Guarantors. Each
Subsidiary which is required to become a Subsidiary Guarantor pursuant to Section 5.05 hereof shall
promptly execute and deliver to the Trustee a supplemental Indenture in substantially the form of
Exhibit B hereto pursuant to which such Subsidiary shall become a Subsidiary Guarantor under this
Article IX and shall guarantee the Note Obligations. Concurrently with the execution and delivery
of such supplemental Indenture, the Issuers shall deliver to the Trustee an Opinion of Counsel to
the effect that such supplemental Indenture has been duly authorized, executed and delivered by
such Subsidiary and that, subject to the application of bankruptcy, insolvency, moratorium,
fraudulent conveyance or transfer and other similar laws relating to creditors’ rights generally
and to the principles of equity, whether considered in a proceeding at law or in equity, the
Guarantee of such Subsidiary Guarantor is a legal, valid and binding obligation of such Subsidiary
Guarantor, enforceable against such Subsidiary Guarantor in accordance with its terms.

          Section 9.07. Release of Guarantee. Provided that no Default shall have occurred and shall
be continuing under the Indenture, the Guarantee of a Subsidiary Guarantor under this Article IX
shall terminate and be of no further force and effect, and such Subsidiary Guarantor shall be
released from the Indenture and all Note Obligations, upon the following events:

          (a) upon any sale or other disposition of all or substantially all of the assets of such
Subsidiary Guarantor (including by way of merger, consolidation or otherwise) to any Person that is
not an Affiliate of either of the Issuers (provided such sale or other disposition is not
prohibited by the Indenture);

          (b) upon any sale or other disposition of all of the Equity Interests of a Subsidiary
Guarantor, to any Person that is not an Affiliate of either of the Issuers; or

          (c) following the release or discharge of all guarantees by such Subsidiary Guarantor of any
Debt of the Issuers and any Subsidiary of the Partnership (other than any Debt Securities), upon
delivery by the Issuers to the Trustee of a written notice of such release or discharge from the
guarantees.

ARTICLE X

MISCELLANEOUS

          Section 10.01. Additional Amendments. With respect to the Notes, references to (A)
“Section 6.01” in the Original Indenture shall be deemed to be references to “Section 7.01 of this
Supplemental Indenture; (B) “Section 11.02” in the Original Indenture shall be deemed to be
references to “Section 8.06” of this Supplemental Indenture; (C) “Section 6.01(g) or (h)” in the
Original Indenture shall be deemed to be references to Section 7.01(a)(vi) or (a)(vii) of this
Supplemental Indenture; and (D) “Article X” in the Original Indenture shall be deemed to be a

21

 

reference to Article VI of this Supplemental Indenture.

          Section 10.02. Integral Part. This Supplemental Indenture constitutes an integral part of
the Indenture.

          Section 10.03. Adoption, Ratification and Confirmation. The Original Indenture, as
supplemented and amended by this Supplemental Indenture, is in all respects hereby adopted,
ratified and confirmed.

          Section 10.04. Counterparts. This Supplemental Indenture may be executed in any number of
counterparts, each of which when so executed shall be deemed an original; and all such counterparts
shall together constitute but one and the same instrument.

          Section 10.05. Governing Law. THIS SUPPLEMENTAL INDENTURE AND THE NOTES SHALL BE GOVERNED
BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

[Signatures on following pages]

22

 

SIGNATURES

	 	 	 	 	 	 	 
	 	 	ISSUERS:	 	 
	 
	 	 	 	 	 	 
	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PAA GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS AAP, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS ALL AMERICAN GP LLC	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

Signature Page to Fifteenth Supplemental Indenture

1 of 10

 

	 	 	 	 	 	 	 
	 	 	SUBSIDIARY GUARANTORS:	 	 
	 
	 	 	 	 	 	 
	 	 	PLAINS MARKETING GP INC.	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC. 

its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

Signature Page to Fifteenth Supplemental Indenture

2 of 10

 

	 	 	 	 	 	 	 
	 	 	PACIFIC ENERGY GROUP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: Al Swanson
	 	 
	 

	 	Title: 	  	Senior Vice President and 

    Chief Financial Officer	 	 

	 	 	 	 	 	 	 
	 	 	PACIFIC L.A. MARINE TERMINAL LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PACIFIC ENERGY GROUP LLC	 	 
	 

	 	 	 	its Sole Member	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	ROCKY MOUNTAIN PIPELINE SYSTEM LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PACIFIC ENERGY GROUP LLC	 	 
	 

	 	 	 	its Sole Member	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

Signature Page to Fifteenth Supplemental Indenture

3 of 10

 

	 	 	 	 	 	 	 
	 	 	PLAINS PRODUCTS TERMINALS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.
	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	Its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	RANCHO LPG HOLDINGS LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS LPG SERVICES, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS LPG SERVICES GP, LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

Signature Page to Fifteenth Supplemental Indenture

4 of 10

 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING CANADA LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PMC (NOVA SCOTIA) COMPANY	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President - Finance 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS MARKETING CANADA, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PMC (NOVA SCOTIA) COMPANY	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President - Finance 	 
	 

Signature Page to Fifteenth Supplemental Indenture

5 of 10

 

	 	 	 	 	 	 	 
	 	 	PLAINS LPG SERVICES GP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and
Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS TOWING LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PICSCO LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

Signature Page to Fifteenth Supplemental Indenture

6 of 10

 

	 	 	 	 	 	 	 
	 	 	PLAINS MIDSTREAM GP LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS MIDSTREAM, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MIDSTREAM GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

Signature Page to Fifteenth Supplemental Indenture

7 of 10

 

	 	 	 	 	 	 	 
	 	PLAINS MIDSTREAM CANADA ULC

 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President - Finance 	 
	 

	 	 	 	 	 	 	 
	 	AURORA PIPELINE COMPANY LTD.

 	 

	 	 	 	 	 
	 	By:  	 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Vice President - Finance 	 
	 

	 	 	 	 	 	 	 
	 	 	PLAINS LPG SERVICES, L.P.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS LPG SERVICES GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

Signature Page to Fifteenth Supplemental Indenture

8 of 10

 

	 	 	 	 	 	 	 
	 	 	LONE STAR TRUCKING, LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS LPG SERVICES, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS LPG SERVICES GP LLC	 	 
	 

	 	 	 	its General Partner	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING, L.P.	 	 
	 

	 	 	 	its Sole Member	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	PLAINS MARKETING GP INC.	 	 
	 

	 	 	 	its General Partner	 	 

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	Al Swanson 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

Signature Page to Fifteenth Supplemental Indenture

9 of 10

 

	 	 	 	 	 
	 	TRUSTEE:

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	Steven Finklea 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Fifteenth Supplemental Indenture

10 of 10

 

EXHIBIT A

(Form of Face of Note)

			
	 	 	 
	CUSIP 72650RAU6
	 	No. ___
	ISIN US72650RAU68
	 	$                    

PLAINS ALL AMERICAN PIPELINE, L.P.

PAA FINANCE CORP.

8.75% Senior Notes due 2019

Plains All American Pipeline, L.P., a Delaware limited partnership, and PAA Finance Corp., a
Delaware corporation, jointly and severally promise to pay to                     , or registered assigns,
the principal sum of                      Dollars [or such greater or lesser amount as may be endorsed
on the Schedule attached hereto]1 on May 1, 2019.

Interest Payment Dates: May 1 and November 1

Record Dates: April 15 and October 15

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.	 	 
	 	 	By:	 	PAA GP LLC, its General Partner	 	 
	 	 	By:	 	Plains AAP, L.P., its Sole Member	 	 
	 	 	By:	 	Plains All American GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name:
	 	 

	 	 
	 

	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	   	 	 
	 

	 	Name:	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 

TRUSTEE’S CERTIFICATE OF
AUTHENTICATION

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

U.S. BANK NATIONAL ASSOCIATION,

as Trustee

	 	 	 	 	 
	By:
	 	 	 	 
	 

	 	 

     Authorized Signatory
	 	 
	 
	Dated:
	 	 	 	 
	 

	 	 

	 	 

 

			
	1	 	To be included only if the Note is issued in global
form.

A-1

 

(Form of Back of Note)

8.75% Senior Notes due 2019

[THIS GLOBAL SECURITY IS HELD BY OR ON BEHALF OF THE DEPOSITARY (AS DEFINED IN THE INDENTURE
GOVERNING THIS NOTE) IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT
TRANSFERABLE TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (A) THE TRUSTEE MAY MAKE SUCH
NOTATIONS HEREON AS MAY BE REQUIRED PURSUANT TO SECTION 2.08 OF THE ORIGINAL INDENTURE, (B) THIS
GLOBAL SECURITY MAY BE EXCHANGED IN WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.15 OF THE ORIGINAL
INDENTURE, (C) THIS GLOBAL SECURITY MAY BE DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO
SECTION 2.10 OF THE ORIGINAL INDENTURE AND (D) THIS GLOBAL SECURITY MAY BE TRANSFERRED TO A
SUCCESSOR DEPOSITARY OR ITS NOMINEE WITH THE PRIOR WRITTEN CONSENT OF THE ISSUERS.]2

          Capitalized terms used herein shall have the meanings assigned to them in the Indenture
referred to below unless otherwise indicated.

          1. Interest. Plains All American Pipeline, L.P., a Delaware limited partnership (the
“Partnership”), and PAA Finance Corp., a Delaware corporation (“PAA Finance” and, together with the
Partnership, the “Issuers”), jointly and severally promise to pay interest on the principal amount
of this Note at 8.75% per annum from April 20, 2009 until maturity. The Issuers shall pay interest
semi-annually on May 1 and November 1 of each such year, or if any such day is not a Business Day,
on the next succeeding Business Day (each an “Interest Payment Date”). Interest on the Notes shall
accrue from the most recent date to which interest has been paid or, if no interest has been paid,
from the date of issuance. The first Interest Payment Date shall be November 1, 2009. The Issuers
shall pay interest (including post-petition interest in any proceeding under any Bankruptcy Law) on
overdue principal and premium, if any, from time to time on demand at a rate that is 1% per annum
in excess of the rate then in effect; and they shall pay interest (including post-petition interest
in any proceeding under any Bankruptcy Law) on overdue installments of interest (without regard to
any applicable grace periods) from time to time on demand at the same rate to the extent lawful.
Interest shall be computed on the basis of a 360-day year of twelve 30-day months.

          2. Method of Payment. The Issuers shall pay interest on the Notes (except defaulted
interest) to the Persons who are registered Holders of Notes at the close of business on the April
15 or October 15 next preceding the Interest Payment Date, even if such Notes are canceled after
such record date and on or before such Interest Payment Date, except as provided in Section 2.17 of
the Original Indenture with respect to defaulted interest, and the Issuers shall pay principal (and
premium, if any) of the Notes upon surrender thereof to the Trustee or a paying agent on or after
the Stated Maturity thereof. The Notes shall be payable as to principal,

 

			
	2	 	To be included only if the Note is issued in global
form.

A-2

 

premium, if any, and
interest at the office or agency of the Trustee maintained for such purpose within or without The
City and State of New York, or, at the option of the Issuers, payment of interest may be made by
check mailed to the Holders at their addresses set forth in the register of Holders, and
provided that payment by wire transfer of immediately available funds shall be required
with respect to principal of and interest and premium, if any, on, each Global Security and all
other Notes the Holders of which shall have provided wire transfer instructions to the Issuers or
the paying agent on or prior to the applicable record date. Such payment shall be 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.

          3. Paying Agent and Registrar. Initially, U.S. Bank National Association, the Trustee
under the Indenture, shall act as paying agent and Registrar. The Issuers may change any paying
agent or Registrar without notice to any Holder. The Issuers or any of their Subsidiaries may act
in any such capacity.

          4. Indenture. The Issuers issued the Notes under an Indenture dated as of September
25, 2002 (the “Original Indenture”), as supplemented by the Fifteenth Supplemental Indenture dated
as of April 20, 2009 (the “Supplemental Indenture” and, together with the Original Indenture, the
“Indenture”) among the Issuers and the Trustee and, with respect to the Supplemental Indenture, the
subsidiary guarantors signatory thereto (the “Subsidiary Guarantors”). The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the
Trust Indenture Act of 1939, as amended (15 U.S. Code §§ 77aaa-77bbbb). The Notes are subject to
all such terms, and Holders are referred to the Indenture and such Act for a statement of such
terms. To the extent any provision of this Note conflicts with the express provisions of the
Indenture, the provisions of the Indenture shall govern and be controlling. The Notes are joint
and several obligations of the Issuers initially in aggregate principal amount of $350 million.
The Issuers may issue an unlimited aggregate principal amount of Additional Notes under the
Indenture. Any such Additional Notes that are actually issued shall be treated as issued and
outstanding Notes (and as the same series (with identical terms other than with respect to the
issue date, the date of first payment of interest, if applicable, and the payment of interest
accruing prior to the issue date) as the initial Notes) for all purposes of the Indenture,
including waivers, amendments, redemptions and offers to purchase. To secure the due and punctual
payment of the principal and interest on the Notes and all other amounts payable by the Issuers
under the Indenture and the Notes when and as the same shall be due and payable, whether at
maturity, by acceleration or otherwise, according to the terms of the Notes and the Indenture, the
Subsidiary Guarantors have unconditionally guaranteed the Note Obligations under the Indenture and
the Notes on a senior basis pursuant to the terms of the Indenture.

          5. Optional Redemption.

     (a) At their option at any time prior to maturity, the Issuers may choose to redeem
all or any portion of the Notes at once or from time to time.

          (b) To redeem the Notes, the Issuers must pay a redemption price equal to the greater of (a)
100% of the principal amount of the Notes to be redeemed, and (b) as determined by the Quotation
Agent (as defined below), the sum of the present values of the remaining

A-3

 

scheduled payments of
principal and interest on the Notes to be redeemed (not including any portion of those payments of
interest accrued as of the date of redemption) discounted to the date of redemption on a
semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted
Treasury Rate (as defined below) plus 50 basis points, plus, in either case, accrued and unpaid
interest to the date of redemption (subject to the right of Holders on the relevant record date to
receive interest due on the relevant interest payment date).

          For purposes of determining any redemption price, the following definitions shall apply:

          “Adjusted Treasury Rate” means, with respect to any date of redemption, the rate per annum
equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, assuming a
price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal
to the Comparable Treasury Price for the date of redemption.

          “Comparable Treasury Issue” means the United States Treasury security selected by the
Quotation Agent as having a maturity comparable to the remaining term of the Notes to be redeemed
that would be utilized, at the time of selection and in accordance with customary financial
practice, in pricing new issues of corporate debt securities of comparable maturity to the
remaining term of the Notes.

          “Comparable Treasury Price” means, with respect to any date of redemption, (a) the average of
the Reference Treasury Dealer Quotations for the date of redemption, after excluding the highest
and lowest Reference Treasury Dealer Quotations, or (b) if the Trustee obtains fewer than four
Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations.

          “Quotation Agent” means J.P. Morgan Securities Inc. or another Reference Treasury Dealer
appointed by the Issuers.

          “Reference Treasury Dealer” means each of Banc of America Securities, LLC, BNP Paribas
Securities Corp., J.P. Morgan Securities Inc. and Wachovia Capital Markets, LLC and each of their
successors; provided, however, that if any of the foregoing shall cease to be a primary U.S.
Government securities dealer in the United States (a “Primary Treasury Dealer”), the Issuers shall
substitute another Primary Treasury Dealer.

          “Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer
and any date of redemption, the average, as determined by the Trustee, of the bid and asked prices
for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount)
quoted in writing to the Trustee by that Reference Treasury Dealer at 5:00 p.m., New York City
time, on the third business day preceding that date of redemption.

          6. Notice of Redemption. Notice of redemption shall be mailed at least 30 days but
not more than 60 days before the redemption date to each Holder whose Notes are to be redeemed at
its registered address. Notes in denominations larger than $2,000 may be redeemed in part but only
in whole multiples of $1,000, unless all of the Notes held by a Holder are to be

A-4

 

redeemed. Unless
the Issuers default in payment of the redemption price, on and after the redemption date interest
ceases to accrue on Notes or portions thereof called for redemption.

          7. Denominations, Transfer, Exchange. The Notes are in registered form without
coupons in minimum denominations of $2,000 and integral multiples of $1,000. The transfer of Notes
may be registered and Notes may be exchanged as provided in the Indenture. The Registrar and the
Trustee may require a Holder, among other things, to furnish appropriate endorsements and transfer
documents and the Issuers may require a Holder to pay any taxes or other governmental charges
required by law or permitted by the Indenture. The Issuers need not exchange or register the
transfer of any Note or portion of a Note selected for redemption or repurchase, except for the
unredeemed or unrepurchased portion of any Note being redeemed or repurchased in part. Also, the
Issuers need not exchange or register the transfer of any Notes for a period of 15 days before a
selection of Notes to be redeemed or repurchased or during the period between a record date and the
corresponding Interest Payment Date.

          8. Persons Deemed Owners. The registered Holder of a Note shall be treated as its
owner for all purposes.

          9. Amendment, Supplement and Waiver. Subject to certain exceptions, the Indenture or
the Notes may be amended or supplemented with the consent of the Holders of a majority in aggregate
principal amount of the then Outstanding Notes, and any existing default or compliance with any
provision of the Indenture or the Notes may be waived with the consent of the Holders of a majority
in aggregate principal amount of the then Outstanding Notes. Without the consent of any Holder of
a Note, the Indenture or the Notes may be amended or supplemented for any of the purposes set forth
in Section 9.01 of the Original Indenture (as amended by the Supplemental Indenture), including to
cure any ambiguity, defect or inconsistency, to provide for the assumption of an Issuer’s
obligations to Holders of the Notes in case of a merger or consolidation of such Issuer or sale of
all or substantially all of such Issuer’s assets, to add or release Subsidiary Guarantors (or their
successors) pursuant to the terms of the Indenture, to make any change that would provide any
additional rights or benefits to the Holders of the Notes or that does not adversely affect the
legal rights under the Indenture of any Holder of the Notes, to comply with the requirements of the
Commission to permit the qualification of the Indenture under the Trust Indenture Act, to evidence
or provide for the acceptance of appointment under the Indenture of a successor Trustee, to add any
additional Events of Default, to secure the Notes or the Guarantees or to establish the form or
terms of any other series of Debt Securities.

          10. Defaults and Remedies. Events of Default with respect to the Notes include: (i)
default for 60 days in the payment when due of interest on the Notes; (ii) default in payment when
due of principal of or premium, if any, on the Notes at maturity, upon redemption or otherwise,
(iii) failure by an Issuer or any Subsidiary Guarantor for 90 days after notice to comply with any
of the other agreements in the Indenture (provided that notice need not be given, and an
Event of Default shall occur, 90 days after any breach of the provisions of Section 6.01 of the
Supplemental Indenture); (iv) default under any mortgage, indenture or instrument under which there
may be issued or by which there may be secured or evidenced any Debt of an Issuer or any of the
Partnership’s Subsidiaries (or the payment of which is guaranteed by the

A-5

 

Partnership or any of its
Subsidiaries), whether such Debt or guarantee now exists or is created after the Issue Date, if
that default (a) is caused by a failure to pay principal of or premium, if any, or interest on such
Debt prior to the expiration of the grace period provided in such Debt (a “Payment Default”) or (b)
results in the acceleration of the maturity of such Debt to a date prior to its original stated
maturity, and, in each case described in clause (a) or (b), the principal amount of any such Debt,
together with the principal amount of any other such Debt under which there has been a Payment
Default or the maturity of which has been so accelerated, aggregates $25.0 million or more, subject
to the proviso set forth in Section 7.01(a)(iv) of the Supplemental Indenture; (v) except as
permitted by the Indenture, any Guarantee shall cease for any reason to be in full force and effect
(except as otherwise provided in the Indenture) or is declared null and void in a judicial
proceeding or any Subsidiary Guarantor, or any Person acting on behalf of any Subsidiary Guarantor,
shall deny or disaffirm its obligations under the Indenture or its Guarantee and (vi) certain
events of bankruptcy or insolvency with respect to an Issuer or any of the Subsidiary Guarantors.
If any Event of Default occurs and is continuing, the Trustee or the Holders of at least 25% in
aggregate principal amount of the then Outstanding Notes may declare all the Notes to be due and
payable. Notwithstanding the foregoing, in the case of an Event of Default arising from certain
events of bankruptcy or insolvency involving an Issuer, but not any Subsidiary Guarantor, all
Outstanding Notes shall become due and payable without further action or notice. Holders may not
enforce the Indenture or the Notes except as provided in the Indenture. Subject to certain
limitations, Holders of a majority in aggregate principal amount of the then Outstanding Notes may
direct the Trustee in its exercise of any trust or power. If and so long as the board of
directors, an executive committee of the board of directors or trust committee of Responsible
Officers of the Trustee in good faith so determines, the Trustee may withhold from Holders of the
Notes notice of any continuing Default (except a Default relating to the payment of principal,
premium, if any, or interest) if it determines that withholding notice is in their interests. The
Holders of a majority in aggregate principal amount of the Notes then Outstanding by notice to the
Trustee may on behalf of the Holders of all of the Notes waive any past Default or Event of Default
and its consequences under the Indenture except a continuing Default or Event of Default in the
payment of interest on, the principal of, or premium, if any, on the Notes or any other Default
specified in Section 6.06 of the Original Indenture. The Issuers and the Subsidiary Guarantors are
required to deliver to the Trustee annually a statement regarding compliance with the Indenture,
and the Issuers are required upon becoming aware of any Default or Event of Default, to deliver to
the Trustee a statement specifying such Default or Event of Default.

          11. Trustee Dealings with Issuers. The Trustee, in its individual or any other
capacity, may make loans to, accept deposits from, and perform services for the Issuers or their
Affiliates, and may otherwise deal with the Issuers or their Affiliates, as if it were not the
Trustee.

          12. No Recourse Against Others. The General Partner and its directors, officers,
employees and members (in their capacities as such) shall not have any liability for any
obligations of the Issuers under the Notes. In addition, the Managing General Partner and its
directors, officers, employees and members shall not have any liability for any obligations of the
Issuers under the Notes. Each Holder of Notes by accepting a Note waives and releases all such
liability. The waiver and release are part of the consideration for issuance of the Notes.

A-6

 

          13. Authentication. This Note shall not be valid until authenticated by the manual
signature of the Trustee or an authenticating agent.

          14. Abbreviations. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

          15. CUSIP and ISIN Numbers. Pursuant to a recommendation promulgated by the Committee
on Uniform Security Identification Procedures, the Issuers have caused CUSIP and corresponding ISIN
numbers to be printed on the Notes, and the Trustee may use CUSIP and corresponding ISIN numbers in
notices of redemption as a convenience to Holders. No representation is made as to the accuracy of
such numbers either as printed on the Notes or as contained in any notice of redemption and
reliance may be placed only on the other identification numbers placed thereon.

          The Issuers shall furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

Plains All American Pipeline, L.P.

333 Clay Street, Suite 1600

Houston, Texas 77002

Attention: Investor Relations

A-7

 

Assignment Form

To assign this Note, fill in the form below: (I) or (we) assign and transfer this Note to

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

	 	 	 
	and irrevocably appoint
	 	 
	 

	 	 

agent to transfer this Note on the books of the Issuers. The agent may substitute another to act
for him.

 

Date:                     

	 	 	 	 	 	 	 
	 

	 	Your Signature:	 	 	 	 
	 

	 	 	 	 

(Sign exactly as your name appears on the face of this Note)
	 	 

	 	 	 
	Signature Guarantee:
	 	 
	 

	 	 
	 

	 	(Signature must be guaranteed by a financial institution that is a member
of the Securities Transfer Agent Medallion Program (“STAMP”), the Stock
Exchange Medallion Program (“SEMP”), the New York Stock Exchange, Inc.
Medallion Signature Program (“MSP”) or such other signature guarantee
program as may be determined by the Registrar in addition to, or in
substitution for, STAMP, SEMP or MSP, all in accordance with the Securities
Exchange Act of 1934, as amended.)

A-8

 

SCHEDULE OF INCREASES OR DECREASES IN THE GLOBAL NOTE3

          The original principal amount of this Global Note is $350,000,000. The following increases or
decreases in this Global Note have been made:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Amount of	 	 	 	 	 	 	Principal	 	 	 	 
	 	 	decrease in	 	 	Amount of	 	 	Amount of	 	 	Signature of	 
	 	 	Principal	 	 	increase in	 	 	this Global Note	 	 	authorized	 
	 	 	Amount	 	 	Principal Amount	 	 	following such	 	 	signatory of	 
	Date of	 	of	 	 	of	 	 	decrease	 	 	Trustee or Note	 
	Exchange	 	this Global Note	 	 	this Global Note	 	 	(or increase)	 	 	Custodian	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

			
	3	 	To be included only if the Note is issued in global
form.

A-9

 

EXHIBIT B

FORM OF SUPPLEMENTAL INDENTURE

          SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of                     , among
Plains All American Pipeline, L.P., a Delaware limited partnership (the “Partnership”), PAA Finance
Corp., a Delaware corporation (“PAA Finance” and, together with the Partnership, the “Issuers”),
                     (the “Subsidiary Guarantor”), a direct or indirect subsidiary of Plains
All American Pipeline, L.P. (or its successor), a Delaware limited partnership (the “Partnership”),
and U.S. Bank National Association, as trustee under the indenture referred to below (the
“Trustee”).

W I T N E S S E T H

          WHEREAS, the Issuers have heretofore executed and delivered to the Trustee an indenture (the
“Original Indenture”), dated as of September 25, 2002, as supplemented by the Fifteenth
Supplemental Indenture (the “Fifteenth Supplemental Indenture” and, together with the Original
Indenture, the “Indenture”) dated as of April 20, 2009, among the Issuers, the Subsidiary
Guarantors and the Trustee, providing for the issuance of the Issuers’ 8.75% Senior Notes due 2019
(the “Notes”);

          WHEREAS, Section 5.05 of the Fifteenth Supplemental Indenture provides that under certain
circumstances the Partnership is required to cause the Subsidiary Guarantor to execute and deliver
to the Trustee a supplemental indenture pursuant to which the Subsidiary Guarantor shall
unconditionally guarantee all of the Issuers’ obligations under the Notes pursuant to a Guarantee
on the terms and conditions set forth herein; and

          WHEREAS, pursuant to Section 9.01 of the Original Indenture, the Issuers and the Trustee are
authorized to execute and deliver this Supplemental Indenture;

          NOW THEREFORE, in consideration of the foregoing and for other good and valuable
consideration, the receipt of which is hereby acknowledged, the Issuers, the Subsidiary Guarantor
and the Trustee mutually covenant and agree for the equal and ratable benefit of the holders of the
Notes as follows:

          1. Definitions.

          (a) Capitalized terms used herein without definition shall have the meanings assigned to them
in the Indenture.

          (b) For all purposes of this Supplemental Indenture, except as otherwise herein expressly
provided or unless the context otherwise requires: (i) the terms and expressions used herein shall
have the same meanings as corresponding terms and expressions used in the Indenture; and (ii) the
words “herein,” “hereof” and “hereby” and other words of similar import

B-1

 

used in this Supplemental
Indenture refer to this Supplemental Indenture as a whole and not to any particular section hereof.

          2. Agreement to Guarantee. The Subsidiary Guarantor hereby agrees, jointly and
severally with all other Subsidiary Guarantors under the Indenture, to guarantee the Issuers’
obligations under the Notes on the terms and subject to the conditions set forth in Article IX of
the Fifteenth Supplemental Indenture and to be bound by all other applicable provisions of the
Indenture. Except as expressly amended hereby, the Indenture is in all respects ratified and
confirmed and all the terms, conditions and provisions thereof shall remain in full force and
effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every
holder of Notes heretofore or hereafter authenticated and delivered shall be bound hereby.

          3. GOVERNING LAW. THIS SUPPLEMENTAL INDENTURE SHALL BE DEEMED TO BE A NEW YORK
CONTRACT, AND FOR ALL PURPOSES SHALL BE CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

          4. Trustee Makes No Representation. The Trustee makes no representation as to the
validity or sufficiency of this Supplemental Indenture.

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

          6. Effect of Headings. The Section headings herein are for convenience only and shall
not effect the construction thereof.

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

	 	 	 	 	 	 	 	 	 
	 	 	PLAINS ALL AMERICAN PIPELINE, L.P.	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	PAA GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains AAP, L.P., its Sole Member	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	Plains All American GP LLC, its General Partner	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

Name:

Title:
	 	 

B-2

 

	 	 	 	 	 	 	 	 	 
	 	 	PAA FINANCE CORP.	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:

Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[SUBSIDIARY GUARANTOR],	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:

Title:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	U.S. BANK NATIONAL ASSOCIATION, as Trustee	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name:

Title:	 	 

B-3exv4w3

EXHIBIT 4.3

PINNACLE ENTERTAINMENT, INC.

Company

 

 

 

 

Initial Guarantors

SENIOR NOTES

 

INDENTURE

Dated as of ____________

 

 

Trustee

 

 

CROSS-REFERENCE TABLE*

	 	 	 
	Trust Indenture	 	 
	Act Section	 	Indenture Section
	310(a)(1)
	 	7.10
	(a)(2)
	 	7.10
	(a)(3)
	 	N.A.
	(a)(4)
	 	N.A.
	(a)(5)
	 	7.10
	(b)
	 	7.10
	(c)
	 	N.A.
	311(a)
	 	7.11
	(b)
	 	7.11
	(c)
	 	N.A.
	312(a)
	 	2.05
	(b)
	 	12.03
	(c)
	 	12.03
	313(a)
	 	7.06
	(b)
	 	7.06; 7.07
	(c)
	 	7.06; 12.02
	(d)
	 	7.06
	314(a)
	 	4.03;12.02; 12.05
	(c)(1)
	 	12.04
	(c)(2)
	 	12.04
	(c)(3)
	 	N.A.
	(e)
	 	12.05
	(f)
	 	N.A.
	315(a)
	 	7.01
	(b)
	 	7.05; 12.02
	(c)
	 	7.01
	(d)
	 	7.01
	(e)
	 	6.11
	316(a) (last sentence)
	 	2.09
	(a)(1)(A)
	 	6.05
	(a)(1)(B)
	 	6.04
	(a)(2)
	 	N.A.
	(b)
	 	6.07
	(c)
	 	2.12
	317(a)(1)
	 	6.08
	(a)(2)
	 	6.09
	(b)
	 	2.04
	318(a)
	 	12.01
	(b)
	 	N.A.
	(c)
	 	12.01

 

			
	N.A. means not applicable.
	 
	*	 	This Cross Reference Table is not part of the Indenture.

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	 	 	Page
	 
	ARTICLE 1 DEFINITIONS AND INCORPORATION BY REFERENCE	 	1
	Section 1.01
	 	Definitions	 	1
	Section 1.02
	 	Other Definitions	 	9
	Section 1.03
	 	Incorporation by Reference of Trust Indenture Act	 	10
	Section 1.04
	 	Rules of Construction	 	10
	ARTICLE 2 THE NOTES	 	11
	Section 2.01
	 	Amount Unlimited; Issuable in Series	 	11
	Section 2.02
	 	Form and Dating; Execution and Authentication	 	13
	Section 2.03
	 	Registrar and Paying Agent	 	14
	Section 2.04
	 	Paying Agent to Hold Money in Trust	 	14
	Section 2.05
	 	Holder Lists	 	15
	Section 2.06
	 	Transfer and Exchange	 	15
	Section 2.07
	 	Replacement Notes	 	20
	Section 2.08
	 	Outstanding Notes	 	20
	Section 2.09
	 	Treasury Notes	 	20
	Section 2.10
	 	Temporary Notes	 	21
	Section 2.11
	 	Cancellation	 	21
	Section 2.12
	 	Defaulted Interest	 	21
	Section 2.13
	 	CUSIP Numbers	 	21
	ARTICLE 3 REDEMPTION AND PREPAYMENT	 	22
	Section 3.01
	 	Optional Redemption	 	22
	Section 3.02
	 	Notices to Trustee	 	22
	Section 3.03
	 	Selection of Notes to Be Redeemed or Purchased	 	22
	Section 3.04
	 	Notice of Redemption	 	23

-i-

 

	 	 	 	 	 
	 	 	 	 	Page
	Section 3.05
	 	Effect of Notice of Redemption	 	23
	Section 3.06
	 	Deposit of Redemption or Purchase Price	 	24
	Section 3.07
	 	Notes Redeemed or Purchased in Part	 	24
	Section 3.08
	 	Mandatory Disposition or Redemption of Notes Pursuant to Gaming Laws	 	24
	Section 3.09
	 	Mandatory Redemption	 	26
	ARTICLE 4 COVENANTS	 	26
	Section 4.01
	 	Payment of Notes	 	26
	Section 4.02
	 	Maintenance of Office or Agency	 	26
	Section 4.03
	 	Reports	 	27
	Section 4.04
	 	Compliance Certificate	 	28
	Section 4.05
	 	Stay, Extension and Usury Laws	 	28
	Section 4.06
	 	Legal Existence	 	28
	ARTICLE 5 SUCCESSORS	 	29
	Section 5.01
	 	Merger, Consolidation, or Sale of Assets	 	29
	Section 5.02
	 	Successor Person Substituted	 	30
	ARTICLE 6 DEFAULTS AND REMEDIES	 	30
	Section 6.01
	 	Events of Default	 	30
	Section 6.02
	 	Acceleration	 	32
	Section 6.03
	 	Other Remedies	 	33
	Section 6.04
	 	Waiver of Past Defaults	 	33
	Section 6.05
	 	Control by Majority	 	33
	Section 6.06
	 	Limitation on Suits	 	34
	Section 6.07
	 	Rights of Holders of Notes to Receive Payment	 	34
	Section 6.08
	 	Collection Suit by Trustee	 	34
	Section 6.09
	 	Trustee May File Proofs of Claim	 	35
	Section 6.10
	 	Priorities	 	35

-ii-

 

	 	 	 	 	 
	 	 	 	 	Page
	Section 6.11
	 	Undertaking for Costs	 	35
	Section 6.12
	 	Remedies Subject to Applicable Law	 	36
	Section 6.13
	 	Disqualified Holders	 	36
	ARTICLE 7 TRUSTEE	 	36
	Section 7.01
	 	Duties of Trustee	 	36
	Section 7.02
	 	Rights of Trustee	 	37
	Section 7.03
	 	Individual Rights of Trustee	 	38
	Section 7.04
	 	Trustee’s Disclaimer	 	38
	Section 7.05
	 	Notice of Defaults	 	39
	Section 7.06
	 	Reports by Trustee to Holders of the Notes	 	39
	Section 7.07
	 	Compensation and Indemnity	 	39
	Section 7.08
	 	Replacement of Trustee	 	40
	Section 7.09
	 	Successor Trustee by Merger, etc	 	41
	Section 7.10
	 	Eligibility; Disqualification	 	41
	Section 7.11
	 	Preferential Collection of Claims Against Company	 	41
	ARTICLE 8 LEGAL DEFEASANCE AND COVENANT DEFEASANCE	 	41
	Section 8.01
	 	Option to Effect Legal Defeasance or Covenant Defeasance	 	41
	Section 8.02
	 	Legal Defeasance and Discharge	 	42
	Section 8.03
	 	Covenant Defeasance	 	42
	Section 8.04
	 	Conditions to Legal or Covenant Defeasance	 	43
	Section 8.05
	 	Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions	 	44
	Section 8.06
	 	Repayment to Company	 	45
	Section 8.07
	 	Reinstatement	 	45
	ARTICLE 9 AMENDMENT, SUPPLEMENT AND WAIVER	 	45
	Section 9.01
	 	Without Consent of Holders of Notes	 	45
	Section 9.02
	 	With Consent of Holders of Notes	 	47

-iii-

 

	 	 	 	 	 
	 	 	 	 	Page
	Section 9.03
	 	Compliance with Trust Indenture Act	 	49
	Section 9.04
	 	Revocation and Effect of Consents	 	49
	Section 9.05
	 	Notation on or Exchange of Notes	 	49
	Section 9.06
	 	Trustee to Sign Amendments, etc	 	49
	Section 9.07
	 	Reference in Notes to Supplemental Indentures	 	49
	ARTICLE 10 NOTE GUARANTIES	 	50
	Section 10.01
	 	Guaranty	 	50
	Section 10.02
	 	Limitation on Guarantor Liability	 	51
	Section 10.03
	 	Execution and Delivery of Guaranty	 	51
	Section 10.04
	 	Releases	 	51
	ARTICLE 11 SATISFACTION AND DISCHARGE	 	52
	Section 11.01
	 	Satisfaction and Discharge	 	52
	Section 11.02
	 	Application of Trust Money	 	53
	ARTICLE 12 MISCELLANEOUS	 	54
	Section 12.01
	 	Trust Indenture Act Controls	 	54
	Section 12.02
	 	Notices	 	54
	Section 12.03
	 	Communication by Holders of Notes with Other Holders of Notes	 	55
	Section 12.04
	 	Certificate and Opinion as to Conditions Precedent	 	55
	Section 12.05
	 	Statements Required in Certificate or Opinion	 	55
	Section 12.06
	 	Rules by Trustee and Agents	 	56
	Section 12.07
	 	No Personal Liability of Directors, Officers, Employees and Stockholders	 	56
	Section 12.08
	 	Governing Law	 	56
	Section 12.09
	 	No Adverse Interpretation of Other Agreements	 	56
	Section 12.10
	 	Successors	 	56
	Section 12.11
	 	Severability	 	57

-iv-

 

	 	 	 	 	 
	 	 	 	 	Page
	Section 12.12
	 	Counterpart Originals	 	57
	Section 12.13
	 	Table of Contents, Headings, etc	 	57
	Section 12.14
	 	Waiver of Jury Trial	 	57
	Section 12.15
	 	Force Majeure	 	57

-v-

 

     INDENTURE dated as of
[                                   ] among Pinnacle Entertainment, Inc., a Delaware
corporation, the Guarantors (as defined) and [                                                            ,] as trustee.

     The Company (as defined), the Guarantors and the Trustee (as defined) agree as follows for the
benefit of each other and for the equal and ratable benefit of the Holders (as defined) of the
Notes (as defined):

RECITALS

     A. The Company has duly authorized the execution and delivery of this Indenture to provide for
the issuance from time to time of its senior indebtedness, notes, bonds, debentures or other
evidences of indebtedness (collectively, the “Notes”) unlimited as to principal amount to bear such
rates of interest, to mature at such time or times, to be issued in one or more series and to have
such other provisions as shall be fixed as in this Indenture provided.

     B. All things necessary to make this Indenture a valid and legally binding agreement of the
Company, in accordance with its terms, have been done.

AGREEMENT

     For and in consideration of the premises and the purchase of the Notes by the Holders thereof,
it is mutually agreed, for the equal and proportionate benefit of all Holders of the Notes or of
any series thereof, as applicable, as follows:

ARTICLE 1

DEFINITIONS AND INCORPORATION

BY REFERENCE

Section 1.01 Definitions.

     “Additional Interest” means all amounts, if any, payable pursuant to the provisions relating
to additional interest described under Section 6.02 as the sole remedy for an Event of Default
relating to the failure to comply with the reporting obligations described under Section 4.03, and
for any failure to comply with the requirements of Section 314(a) of the TIA.

     “Additional Notes” means additional Notes of a series (other than the initially issued Notes
of such series) issued under this Indenture in accordance with Section 2.02 hereof, as part of the
same series as such initially issued Notes.

     “Affiliate” means, when used with reference to any Person:

     (1) any other Person directly or indirectly controlling, controlled by, or under
direct or indirect common control with, the referent Person or such other Person, as the
case may be, or

     (2) any director, officer or partner of such Person or any Person specified in clause
(1) above.

For the purposes of this definition, the term “control” when used with respect to any specified
Person means the power to direct or cause the direction of management or policies of such

-1-

 

Person, directly or indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms “affiliated,” “controlling,” and “controlled” have meanings correlative of
the foregoing.

     “Agent” means any Registrar, co-registrar, Paying Agent or additional paying agent.

     “Applicable Procedures” means, with respect to any transfer or exchange of or for beneficial
interests in any Global Note, the rules and procedures of the Depositary, Euroclear and Clearstream
that apply to such transfer or exchange.

     “Bankruptcy Law” means United States Bankruptcy Code and any other bankruptcy, insolvency,
receivership, reorganization, moratorium or similar law providing relief to debtors, in each case,
as from time to time amended and applicable to the relevant case.

     “Board” means (1) with respect to a corporation, the board of directors of the corporation or
any committee thereof duly authorized to act on behalf of such board; (2) with respect to a
partnership, the board of directors (or any committee thereof duly authorized to act on behalf of
such board) or other similar governing body of the controlling general partner of the partnership;
(3) with respect to a limited liability company, the Person or Persons who are the managing member,
members or managers or any controlling committee or managing member, members or managers thereof;
and (4) with respect to any other Person, the board or committee or other body of such Person
serving a similar function.

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

     “Broker-Dealer” has the meaning set forth in the Registration Rights Agreement.

     “Business Day” means any day other than a Legal Holiday.

     “Capitalized Lease Obligation” means, as to any Person, the discounted rental stream payable
by such Person that is required to be classified and accounted for as a capital lease obligation
under GAAP and, for purposes of this definition, the amount of such obligation at any date shall be
the capitalized amount of such obligation at such date, determined in accordance with GAAP. The
final maturity of any such obligation shall be the date of the last payment of rent or any other
amount due under such lease prior to the first date upon which such lease may be terminated by the
lessee without penalty.

     “Capital Stock” means:

     (1) with respect to any Person that is a corporation, any and all shares, rights,
interests, participations or other equivalents (however designated and whether or not
voting) of corporate stock, including each class of common stock and preferred stock of
such Person, and

     (2) with respect to any Person that is not a corporation, any and all partnership,
membership or other equity interests of such Person.

     “Clearstream” means Clearstream Banking, S.A.

-2-

 

     “Company” means Pinnacle Entertainment, Inc., a Delaware corporation, and any and all
successors thereto.

     “Corporate Trust Office of the Trustee” will be at the address of the Trustee specified in
Section 12.02 hereof or such other address as to which the Trustee may give notice to the Company.

     “Custodian” means the Trustee, as custodian with respect to the Notes in global form, or any
successor entity thereto.

     “Default” means any event that is or with the passage of time or the giving of notice or both
would be an Event of Default.

     “Definitive Note” means a certificated Note registered in the name of the Holder thereof and
issued in accordance with Section 2.06 hereof, substantially in the form of Exhibit A hereto except
that such Note shall not bear the Global Note Legend and shall not have the “Schedule of Exchanges
of Interests in the Global Note” attached thereto.

     “Depositary” means, with respect to the Notes issuable or issued in whole or in part in global
form, the Person specified in Section 2.03 hereof as the Depositary with respect to the Notes, and
any and all successors thereto appointed as depositary hereunder and having become such pursuant to
the applicable provision of this Indenture.

     “Disqualified Capital Stock” means any Capital Stock which by its terms (or by the terms of
any security into which it is, by its terms, convertible or for which it is, by its terms,
exchangeable at the option of the holder thereof), or upon the happening of any specified event, is
required to be redeemed or is redeemable (at the option of the holder thereof) at any time prior to
the earlier of the repayment of all Notes or the stated maturity of the Notes or is exchangeable at
the option of the holder thereof for Indebtedness at any time prior to the earlier of the repayment
of all Notes or the stated maturity of the Notes.

     “Domestic Restricted Subsidiary” means any Restricted Subsidiary that is a Person organized
under the laws of the United States or any state thereof.

     “Equity Interests” means Capital Stock and all warrants, options or other rights to acquire
Capital Stock (but excluding any debt security that is convertible into, or exchangeable for,
Capital Stock).

     “Equity Offering” means any public or private sale of Qualified Capital Stock.

     “Euroclear” means Euroclear Bank, S.A./N.V., as operator of the Euroclear system.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Foreign Restricted Subsidiary” means any Restricted Subsidiary that is not a Domestic
Restricted Subsidiary.

     “GAAP” means generally accepted accounting principles set forth in the opinions and
pronouncements of the Accounting Principles Board of the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting Standards Board or

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in such other statements by such other entity as may be approved by a significant segment of
the accounting profession of the United States, which are in effect as of the date of this
Indenture.

     “Gaming Approval” means any governmental approval, license, registration, qualification or
finding of suitability relating to any gaming business, operation or enterprise.

     “Gaming Authority” means any governmental authority with regulatory oversight of, authority to
regulate or jurisdiction over any gaming businesses, operations or enterprises, including the
Nevada State Gaming Control Board and City of Reno, Nevada gaming authorities, Nevada Gaming
Commission, Indiana Gaming Commission, Louisiana Gaming Control Board, New Jersey Casino Control
Commission, Missouri Gaming Commission and Colorado Division of Gaming, with regulatory oversight
of, authority to regulate or jurisdiction over any existing or proposed gaming business, operation
or enterprise owned, managed or operated by any Obligor.

     “Gaming Laws” means all applicable provisions of all:

     (1) constitutions, treaties, statutes or laws governing gaming operations (including
without limitation card club casinos and pari mutuel race tracks) and rules, regulations
and ordinances of any Gaming Authority,

     (2) Gaming Approvals, and

     (3) orders, decisions, judgments, awards and decrees of any Gaming Authority.

     “Global Note Legend” means the legend set forth in Section 2.06(f)(1) hereof, which is
required to be placed on all Global Notes issued under this Indenture.

     “Global Notes” means a permanent global note in registered form deposited with the Trustee, as
a custodian for The Depositary Trust Company or any other designated depositary, substantially in
the form of Exhibit A hereto and that bears the Global Note Legend and that has the “Schedule of
Exchanges of Interests in the Global Note” attached thereto, issued in accordance with Section 2.01
or 2.06(d) hereof.

     “Government Securities” means marketable direct obligations issued by, or unconditionally
guaranteed by, the United States government or issued by any agency or instrumentality thereof and
backed by the full faith and credit of the United States, in each case maturing within 12 months
from the date of acquisition thereof by any Obligor or any Domestic Restricted Subsidiary.

     “Guarantor” means any existing or future Material Restricted Subsidiary of the Company, which
has guaranteed the obligations of the Company arising under or in connection with the Notes, as
required by this Indenture.

     “Guaranty” means a guaranty by a Guarantor of the Obligations of the Company arising under or
in connection with the Notes.

     “Hedging Obligations” means all obligations of the Obligors or any Domestic Restricted
Subsidiary that is not an Obligor arising under or in connection with any rate or basis swap,
forward contract, commodity swap or option, equity or equity index swap or option, bond, note or
bill option, interest rate option, foreign currency exchange transaction, cross currency rate swap,

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currency option, cap, collar or floor transaction, swap option, synthetic trust product,
synthetic lease or any similar transaction or agreement.

     “Holder” means a Person in whose name a Note is registered.

     “Incur” means, with respect to any Indebtedness of any Person or any Lien, to create, issue,
incur (by conversion, exchange or otherwise), assume, guarantee or otherwise become liable in
respect of such Indebtedness or Lien or the recording, as required pursuant to GAAP or otherwise,
of any such Indebtedness on the balance sheet of such Person (and “Incurrence,” “Incurred,”
“Incurrable” and “Incurring” shall have meanings correlative to the foregoing).

     “Indebtedness” means with respect to any Person, without duplication, whether contingent or
otherwise,

     (1) any obligations for money borrowed,

     (2) any obligation evidenced by bonds, debentures, notes, or other similar
instruments,

     (3) Letter of Credit Obligations and obligations in respect of other similar
instruments,

     (4) any obligations to pay the deferred purchase price of property or services,
including Capitalized Lease Obligations,

     (5) the maximum fixed redemption or repurchase price of Disqualified Capital Stock,

     (6) Indebtedness of other Persons of the types described in clauses (1) through (5)
above, secured by a Lien on the assets of such Person or its Restricted Subsidiaries,
valued, in such cases where the recourse thereof is limited to such assets, at the lesser
of the principal amount of such Indebtedness or the fair market value of the subject
assets,

     (7) Indebtedness of other Persons of the types described in clauses (1) through (5)
above, guaranteed by such Person or any of its Restricted Subsidiaries, and

     (8) the net obligations of such Person under Hedging Obligations,

          provided that the amount of any Indebtedness at any date shall be calculated as the
outstanding balance of all unconditional obligations and the maximum liability supported by any
contingent obligations at such date.

     Notwithstanding the foregoing, “Indebtedness” shall not be construed to include trade
payables, credit on open account, accrued liabilities, provisional credit, daylight overdrafts or
similar items. For purposes of this definition, the “maximum fixed redemption or repurchase price”
of any Disqualified Capital Stock that does not have a fixed repurchase price shall be calculated
in accordance with the terms of such Disqualified Capital Stock as if such Disqualified Capital
Stock were repurchased on the date on which Indebtedness shall be required to be determined
pursuant to this Indenture, and if such price is based upon, or measured by, the fair market value
of such Disqualified Capital Stock, such fair market value shall be determined reasonably and in
good faith by the Board of the issuing Person. Unless otherwise specified in

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this Indenture, the amount outstanding at any time of any Indebtedness issued with original
issue discount is the full amount of such Indebtedness less the remaining unamortized portion of
the original issue discount of such Indebtedness at such time as determined in conformity with
GAAP.

     “Indenture” means this Indenture, as amended or supplemented from time to time, and shall
include the form and terms of particular series of Notes established from time to time as
contemplated by Section 2.01.

     “Indirect Participant” means a Person who holds a beneficial interest in a Global Note through
a Participant.

     “Interest Payment Date” means the Stated Maturity of an installment of interest on a
particular series of Notes.

     “Interest Swap Obligations” means the net obligations of any Person under any interest rate
protection agreement, interest rate future, interest rate option, interest rate swap, interest rate
cap, collar or floor transaction or other interest rate Hedging Obligation.

     “Legal Holiday” means a Saturday, a Sunday or a day on which banking institutions in the City
of New York or at a place of payment are authorized by law, regulation or executive order to remain
closed. If a payment date is a Legal Holiday at a place of payment, payment may be made at that
place on the next succeeding day that is not a Legal Holiday, and no interest shall accrue on such
payment for the intervening period.

     “Letter of Credit Obligations” means Obligations of an Obligor arising under or in connection
with letters of credit.

     “Lien” means, with respect to any assets, any mortgage, lien, pledge, charge, security
interest or other similar encumbrance (including, without limitation, any conditional sale or other
title retention agreement or lease in the nature thereof, any option or other agreement to sell,
and any filing of or agreement to give, any security interest).

     “Material Restricted Subsidiary” means any Subsidiary which is both a Material Subsidiary and
a Restricted Subsidiary.

     “Material Subsidiary” means any Subsidiary of the Company organized under the laws of the
United States or any state thereof, other than a Non-Material Subsidiary.

     “Moody’s” means Moody’s Investors Services, Inc., and its successors.

     “Non-Material Foreign Restricted Subsidiaries” means all Foreign Restricted Subsidiaries
designated as Non-Material Foreign Subsidiaries by the Company; provided, that all such Foreign
Restricted Subsidiaries may not, in the aggregate at any time have assets (attributable to the
Company’s and its Restricted Subsidiaries’ equity interest in such entity) constituting more than
1.5% of the Company’s total assets on a consolidated basis based on the Company’s most recent
internal financial statements. As of the date of this Indenture, the Non-Material Foreign
Subsidiaries shall be all of the Company’s Foreign Restricted Subsidiaries existing as of the date
of this Indenture.

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     “Non-Material Subsidiaries” means all Domestic Restricted Subsidiaries designated as
Non-Material Subsidiaries by the Company; provided, that all such Domestic Restricted Subsidiaries
may not, in the aggregate at any time have assets (attributable to the Company’s and its Domestic
Restricted Subsidiaries’ equity interest in such entity) constituting more than 6% of the Company’s
total assets on a consolidated basis based on the Company’s most recent internal financial
statements. As of the date of this Indenture, the Non-Material Subsidiaries shall be all of the
Company’s Domestic Restricted Subsidiaries existing as of the date of this Indenture other than the
Guarantors as of the date of this Indenture.

     “Non-U.S. Person” means a Person who is not a U.S. Person.

     “Notes” has the meaning assigned to it in the recitals to this Indenture. The initially
issued Notes of any series of Notes and any Additional Notes of such series shall be treated as a
single class for all purposes under this Indenture, and unless the context otherwise requires, all
references to Notes shall include the initially issued Notes of such series and any Additional
Notes of such series.

     “Obligations” means any principal, interest, penalties, fees, indemnifications,
reimbursements, damages and other liabilities, whether absolute or contingent, payable under the
documentation governing any Indebtedness.

     “Obligor” means the Company or any Guarantor and any Foreign Restricted Subsidiary that is not
a Non-Material Foreign Restricted Subsidiary.

     “Officer” means, (i) with respect to any Person that is a corporation, the Chairman of the
Board, the Chief Executive Officer, the President, the Chief Operating Officer, the Chief Financial
Officer, the Treasurer, any Assistant Treasurer, the Controller, the Secretary, the Assistant
Secretary or any Vice-President of such Person and (ii) with respect to any other Person, the
individuals selected by the Board or corresponding governing or managing body of such Person to
perform functions similar to those of the officers listed in clause (i).

     “Officers’ Certificate” means a certificate signed on behalf of the Company by two Officers of
the Company, one of whom must be the principal executive officer, the principal financial officer,
the treasurer or the principal accounting officer of the Company, that meets the requirements of
Section 12.05 hereof.

     “Opinion of Counsel” means a written opinion from legal counsel that meets the requirements of
Section 12.05 hereof. The counsel may be an employee of or counsel to the Company or any
Subsidiary of the Company.

     “Participant” means, with respect to the Depositary, Euroclear or Clearstream, a Person who
has an account with the Depositary, Euroclear or Clearstream, respectively (and, with respect to
DTC, shall include Euroclear and Clearstream).

     “Paying Agent” means the Person so designated by the Company in accordance with this
Indenture, initially the Trustee.

     “Person” means any individual, corporation, partnership, joint venture, association, limited
liability company, joint-stock company, trust, unincorporated organization, or government agency or
political subdivision thereof (including any subdivision or ongoing business of any such entity or
substantially all of the assets of any such entity, subdivision or business).

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     “Plan of Liquidation” means, with respect to any Person, a plan (including by operation of
law) that provides for, contemplates or the effectuation of which is preceded or accomplished by
(whether or not substantially contemporaneously):

     (1) the sale, lease or conveyance of all or substantially all of the assets of such
Person otherwise than as an entirety or substantially as an entirety, and

     (2) the distribution of all or substantially all of the proceeds of such sale, lease,
conveyance, or other disposition and all or substantially all of the remaining assets of
such Person to holders of Capital Stock of such Person.

     “Property” means any right or interest in or to property of any kind whatsoever, whether real,
personal or mixed and whether tangible or intangible, including, without limitation, Capital Stock.

     “Qualified Capital Stock” means any Capital Stock that is not Disqualified Capital Stock.

     “Responsible Officer,” when used with respect to the Trustee, means any officer within the
Corporate Trust Administration of the Trustee (or any successor group of the Trustee) or any other
officer of the Trustee customarily performing functions similar to those performed by any of the
above designated officers and also means, with respect to a particular corporate trust matter, any
other officer to whom such matter is referred because of his knowledge of and familiarity with the
particular subject and who shall have direct responsibility for the administration of this
Indenture.

     “Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an
Unrestricted Subsidiary. If no referent Person is specified, “Restricted Subsidiary” means a
Subsidiary of the Company.

     “S&P” means Standard & Poor’s Rating Group, a division of The McGraw-Hill Industries, Inc.,
and its successors.

     “SEC” means the Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Significant Subsidiary” means any Obligor, other than the Company, 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 of this Indenture.

     “Stated Maturity” means, with respect to any installment of interest or principal on any
series of Indebtedness, the date on which such payment of interest or principal was scheduled to be
paid in the original documentation governing such Indebtedness, and shall not include any
contingent obligations to repay, redeem or repurchase any such interest or principal prior to the
date originally scheduled for the payment thereof.

     “Subsidiary,” with respect to any Person, means:

     (1) any corporation or comparably organized entity, a majority of whose voting stock
(defined as any class of capital stock having voting power under ordinary

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circumstances to elect a majority of the Board of such Person) is owned, directly or
indirectly, by any one or more of the Obligors, and

     (2) any other Person (other than a corporation) in which any one or more of the
Obligors, directly or indirectly, has at least a majority ownership interest entitled to
vote in the election of directors, managers or trustees thereof or of which such Obligor is
the managing general partner.

     “TIA” means the Trust Indenture Act of 1939, as amended (15 U.S.C. §§ 77aaa-77bbbb).

     “Treasury Rate” means, as of any redemption date, the yield to maturity as of such redemption
date of United States Treasury securities with a constant maturity (as compiled and published in
the most recent Federal Reserve Statistical Release H.15 (519) that has become publicly available
at least two business days prior to the redemption date (or, if such Statistical Release is no
longer published, any publicly available source of similar market data)) most nearly equal to the
period from the redemption date to June 15, 2011; provided, however, that if the period from the
redemption date to June 15, 2011 is less than one year, the weekly average yield on actually traded
United States Treasury securities adjusted to a constant maturity of one year will be used.

     “Trustee” means [                                        ] until a successor replaces it in accordance with the
applicable provisions of this Indenture and thereafter means the successor serving hereunder.

     “Unrestricted Subsidiary” means any Subsidiary of the Company that is designated by the Board
of the Company as its Unrestricted Subsidiary pursuant to a Board resolution.

     “U.S. Person” means a U.S. Person as defined in Rule 902(k) promulgated under the Securities
Act.

     “Weighted Average Life to Maturity” means, when applied to any Indebtedness at any date, the
Company’s calculations of the number of years obtained by dividing:

     (1) the then outstanding aggregate principal amount of such Indebtedness into,

     (2) the total of the products obtained by multiplying:

     (A) the amount of each then remaining installment, sinking fund, serial
maturity or other required payment of principal, including payment at final
maturity, in respect thereof, by

     (B) the number of years (calculated to the nearest one-twelfth) which will
elapse between such date and the making of such payment.

Section 1.02 Other Definitions.

	 	 	 	 	 
	Term	 	Defined in Section
	“Authentication Order”
	 	 	2.02	 
	“Covenant Defeasance”
	 	 	8.03	 
	“Disqualified Holder”
	 	 	3.08	 

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	Term	 	Defined in Section
	“DTC”
	 	 	2.03	 
	“Event of Default”
	 	 	6.01	 
	“Legal Defeasance”
	 	 	8.02	 
	“Payment Default”
	 	 	6.01	 
	“Registrar”
	 	 	2.03	 

Section 1.03 Incorporation by Reference of Trust Indenture Act.

     Whenever this Indenture refers to a provision of the TIA, the provision is incorporated by
reference in and made a part of this Indenture.

     The following TIA terms used in this Indenture have the following meanings:

     “indenture securities” means the Notes;

     “indenture security Holder” means a Holder of a Note;

     “indenture to be qualified” means this Indenture;

     “indenture trustee” or “institutional trustee” means the Trustee; and

     “obligor” on the Notes and the Guaranties means the Company and the Guarantors, respectively,
and any successor obligor upon the Notes and the Guaranties, respectively.

     All other terms used in this Indenture that are defined by the TIA, defined by TIA reference
to another statute or defined by SEC rule under the TIA have the meanings so assigned to them.

Section 1.04 Rules of Construction.

     Unless the context otherwise requires:

     (1) a term has the meaning assigned to it;

     (2) an accounting term not otherwise defined has the meaning assigned to it in
accordance with GAAP;

     (3) “or” is not exclusive;

     (4) words in the singular include the plural, and in the plural include the singular;

     (5) “will” shall be interpreted to express a command;

     (6) provisions apply to successive events and transactions;

     (7) references to sections of or rules under the Securities Act will be deemed to
include substitute, replacement of successor sections or rules adopted by the SEC from time
to time; and

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     (8) references to any contract, instrument or agreement shall be deemed to include any
amendments, modifications or supplements thereto or restatements thereof not prohibited
hereby, through the date of reference thereto.

ARTICLE 2

THE NOTES

Section 2.01 Amount Unlimited; Issuable in Series.

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

     The Notes may be issued in one or more series. There shall be established in or pursuant to a
Board Resolution and, subject to Section 2.02, 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 Notes of any series:

     (a) the title of the Notes of the series, including CUSIP number(s) (which shall distinguish
the Notes of the series from Notes of any other series);

     (b) any limit upon the aggregate principal amount of the Notes of the series which may be
authenticated and delivered under this Indenture (except for Notes authenticated and delivered upon
registration of transfer of, or in exchange for, or in lieu of, other Notes of the series pursuant
to Section 2.06, 2.07, 2.10, 3.07 or 9.05);

     (c) the Person to whom any interest on a Note of the series shall be payable, if other than
the Person in whose name that Note (or one or more predecessor Notes) is registered at the close of
business on the record date for such interest;

     (d) the date or dates on which the principal of any Notes of the series is payable;

     (e) the rate or rates at which any Notes of the series shall bear interest, if any, the date
or dates from which any such interest shall accrue, the interest payment dates on which any such
interest shall be payable and the record date for any such interest payable on any interest payment
date;

     (f) the place or places where the principal of and any premium and interest on any Notes of
the series shall be payable;

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

     (h) if the amount of principal of or any premium or interest on any Notes of the series may be
determined with reference to a financial or economic measure or pursuant to a formula, the manner
in which such amounts shall be determined;

     (i) if other than the entire principal amount thereof, the portion of the principal amount of
any Notes of the series which shall be payable upon declaration of acceleration of the maturity
thereof pursuant to Section 6.02;

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     (j) if the principal amount payable at the Stated Maturity of any Notes 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 Notes 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);

     (k) if other than by a Board Resolution, the manner in which any election by the Company to
defease any Notes of the series pursuant to Section 8.02 or Section 8.03 shall be evidenced; or,
that the Notes of the series, in whole or any specified part, shall not be defeasible pursuant to
Section 8.02 or Section 8.03 or both such Sections;

     (l) if applicable, that any Notes of the series shall be issuable in whole or in part in the
form of one or more Global Notes and, in such case, the respective Depositaries for such Global
Notes, the form of any Global Note Legend or Legends which shall be borne by any such Global Note
in addition to or in lieu of that set forth in Section 2.06(f) and any circumstances in addition to
or in lieu of those set forth in Section 2.06 in which any such Global Note may be exchanged in
whole or in part for Notes registered, and any transfer of such Global Note in whole or in part may
be registered, in the name or names of Persons other than the Depositary for such Global Note or a
nominee thereof;

     (m) the provisions, if any, relating to any security or Guaranty provided for the Notes of the
series;

     (n) the provisions, if any, relating to any conversion or exchange right of the Notes of the
series;

     (o) any addition to, deletion from or change in the Events of Default which apply to any Notes
of the series and any addition to, deletion from or change in the right of the Trustee or the
requisite Holders of such Notes to declare the principal amount thereof due and payable pursuant to
Section 6.02;

     (p) any addition to, deletion from or change in the covenants set forth in Articles 4 or 5
which apply to Notes of the series;

     (q) any addition to, deletion from or change in the definitions set forth in Article 1 which
apply to Notes of the series; and

     (r) any other terms of the Notes of the series (which terms may modify or delete any provision
of this Indenture, insofar as it applies to such series of Notes).

     All Notes 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 2.02) set forth, or determined in the manner provided, in the Officers’
Certificate referred to above or in any such indenture supplemental hereto. All Notes of any one
series need not be issued at one time and, unless otherwise provided in or pursuant to the Board
Resolution referred to above and (subject to Section 2.02) set forth, or determined in the manner
provided, in the Officers’ Certificate referred to above or in any such indenture supplemental
hereto with respect to a series of Notes, additional Notes of a series may be issued, at the option
of the Company, without the consent of any Holder, at any time and from time to time.

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     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 Company and delivered to the Trustee at or prior to the delivery of
the Officers’ Certificate setting forth the terms of the series. If all of the Notes of any series
established by action taken pursuant to a Board Resolution are not to be issued at one time, it
shall not be necessary to deliver a record of such action at the time of issuance of each Note of
such series, but an appropriate record of such action shall be delivered at or before the time of
issuance of the first Note of such series.

Section 2.02 Form and Dating; Execution and Authentication.

     (a) General. The Notes and the Trustee’s certificate of authentication will be substantially
in the form of Exhibit A hereto, or in such other form as shall be established by or pursuant to a
Board Resolution or in one or more indentures supplemental hereto, 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 Notes, as evidenced by their execution thereof. If the form of Notes 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 Company
and delivered to the Trustee at or prior to the delivery of the Authentication Order contemplated
by Section 2.02(d) for the authentication and delivery of such Notes. If all of the Notes of any
series established by action taken pursuant to a Board Resolution are not to be issued at one time,
it shall not be necessary to deliver a record of such action at the time of issuance of each Note
of such series, but an appropriate record of such action shall be delivered at or before the time
of issuance of the first Note of such series.

     The Notes may have notations, legends or endorsements required by law, stock exchange rule or
usage. Each Note will be dated the date of its authentication. The Notes shall be in
denominations of $1,000 and integral multiples thereof.

     The terms and provisions contained in the Notes will constitute, and are hereby expressly
made, a part of this Indenture and the Company, the Guarantors and the Trustee, by their execution
and delivery of this Indenture, expressly agree to such terms and provisions and to be bound
thereby. However, to the extent any provision of any Note conflicts with the express provisions of
this Indenture, the provisions of this Indenture shall govern and be controlling.

     (b) Global Notes. Subject to Section 2.02(a), Notes issued in global form will be
substantially in the form of Exhibit A hereto (including the Global Note Legend thereon and the
“Schedule of Exchanges of Interests in the Global Note” attached thereto). Subject to Section
2.02(a), Notes issued in definitive form will be substantially in the form of Exhibit A hereto (but
without the Global Note Legend thereon and without the “Schedule of Exchanges of Interests in the
Global Note” attached thereto). Each Global Note will represent such of the outstanding Notes as
will be specified therein and each shall provide that it represents the aggregate principal amount
of outstanding Notes from time to time endorsed thereon and that the aggregate principal amount of
outstanding Notes represented thereby may from time to time be reduced or increased, as
appropriate, to reflect exchanges and redemptions. Any endorsement of a Global Note to reflect the
amount of any increase or decrease in the aggregate principal amount of outstanding Notes
represented thereby will be made by the Trustee or the Custodian, at the

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direction of the Trustee, in accordance with instructions given by the Holder thereof as required by Section
2.06 hereof.

     (c) Execution. At least one Officer must sign the Notes for the Company by manual or
facsimile signature.

     If an Officer whose signature is on a Note no longer holds that office at the time a Note is
authenticated, the Note will nevertheless be valid.

     A Note will not be valid until authenticated by the manual signature of the Trustee. The
signature will be conclusive evidence that the Note has been authenticated under this Indenture.

     (d) Authentication. The Trustee will, upon receipt of a written order of the Company signed
by two Officers (an “Authentication Order”), authenticate Notes for original in an aggregate
principal amount specified in the written order of the Company pursuant to this Section 2.02. Such
Authentication Order shall specify the amount of Notes to be authenticated and the date on which
the original issue of Notes is to be authenticated. The aggregate principal amount of Notes,
including any Additional Notes, of a series outstanding at any time may not exceed the aggregate
principal amount of Notes of such series authorized for issuance by the Company, pursuant to one or
more Authentication Orders, except as provided in Section 2.07 hereof.

     The Trustee may appoint an authenticating agent acceptable to the Company to authenticate
Notes. An authenticating agent may authenticate Notes whenever the Trustee may do so. Each
reference in this Indenture to authentication by the Trustee includes authentication by such agent.
An authenticating agent has the same rights as an Agent to deal with Holders or an Affiliate of
the Company.

Section 2.03 Registrar and Paying Agent.

     The Company will maintain an office or agency where Notes may be presented for registration of
transfer or for exchange (“Registrar”) and an office or agency where Notes may be presented for
payment (“Paying Agent”). The Registrar will keep a register of the Notes and of their transfer
and exchange. The Company may appoint one or more co-registrars and one or more additional paying
agents. The term “Registrar” includes any co-registrar and the term “Paying Agent” includes any
additional paying agent. The Company may change any Paying Agent or Registrar without notice to
any Holder. The Company will notify the Trustee in writing of the name and address of any Agent
not a party to this Indenture. If the Company fails to appoint or maintain another entity as
Registrar or Paying Agent, the Trustee shall act as such. The Company or any of its Subsidiaries
may act as Paying Agent or Registrar.

     The Company initially appoints The Depository Trust Company (“DTC”) to act as Depositary with
respect to the Global Notes.

     The Company initially appoints the Trustee to act as the Registrar and Paying Agent and to act
as Custodian with respect to the Global Notes.

Section 2.04 Paying Agent to Hold Money in Trust.

     The Company will require each Paying Agent other than the Trustee to agree in writing that the
Paying Agent will hold in trust for the benefit of Holders or the Trustee all money held by the
Paying Agent for the payment of principal, premium or Additional Interest, if any, or interest

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on the Notes, and will notify the Trustee of any default by the Company in making any such
payment. While any such default continues, the Trustee may require a Paying Agent to pay all money
held by it to the Trustee. The Company at any time may require a Paying Agent to pay all money
held by it to the Trustee. Upon payment over to the Trustee, the Paying Agent (if other than the
Company or a Subsidiary) will have no further liability for the money. If the Company or a
Subsidiary acts as Paying Agent, it will segregate and hold in a separate trust fund for the
benefit of the Holders all money held by it as Paying Agent. Upon any bankruptcy or reorganization
proceedings relating to the Company, the Trustee will serve as Paying Agent for the Notes.

Section 2.05 Holder Lists.

          The Trustee will preserve in as current a form as is reasonably practicable the most recent
list available to it of the names and addresses of all Holders of each series of Notes and shall
otherwise comply with TIA § 312(a). If the Trustee is not the Registrar, the Company will furnish
to the Trustee at least seven Business Days before each Interest Payment Date and at such other
times as the Trustee may request in writing, a list in such form and as of such date as the Trustee
may reasonably require of the names and addresses of the Holders of each series of Notes and the
Company shall otherwise comply with TIA § 312(a).

Section 2.06 Transfer and Exchange.

     (a) Transfer and Exchange of Global Notes. A Global Note may not be transferred except as a
whole by the Depositary to a nominee of the Depositary, by a nominee of the Depositary to the
Depositary or to another nominee of the Depositary, or by the Depositary or any such nominee to a
successor Depositary or a nominee of such successor Depositary. All Global Notes of a series will
be exchanged by the Company for Definitive Notes of such series if:

     (1) the Company delivers to the Trustee notice from the Depositary that it is
unwilling or unable to continue to act as Depositary or that it is no longer a clearing
agency registered under the Exchange Act and, in either case, a successor Depositary is not
appointed by the Company within 120 days after the date of such notice from the Depositary;

     (2) the Company in its sole discretion determines that the Global Notes (in whole but
not in part) of such series should be exchanged for Definitive Notes of such series and
delivers a written notice to such effect to the Trustee; or

     (3) there has occurred and is continuing a Default or Event of Default with respect to
the Notes of such series.

     Upon the occurrence of either of the preceding events in (1) or (2) above, Definitive Notes of
such series shall be issued in such names as the Depositary shall instruct the Trustee. Global
Notes also may be exchanged or replaced, in whole or in part, as provided in Sections 2.07 and 2.10
hereof. Every Note authenticated and delivered in exchange for, or in lieu of, a Global Note or
any portion thereof, pursuant to this Section 2.06 or Section 2.07 or 2.10 hereof, shall be
authenticated and delivered in the form of, and shall be, a Global Note. A Global Note may not be
exchanged for another Note other than as provided in this Section 2.06(a), however, beneficial
interests in a Global Note may be transferred and exchanged as provided in Section 2.06(b), or (c)
hereof.

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     (b) Transfer and Exchange of Beneficial Interests in the Global Notes. The transfer and
exchange of beneficial interests in the Global Notes will be effected through the Depositary, in
accordance with the provisions of this Indenture and the Applicable Procedures. Transfers of
beneficial interests in the Global Notes also will require compliance with either subparagraph (1)
or (2) below, as applicable, as well as one or more of the other following subparagraphs, as
applicable:

     (1) Transfer of Beneficial Interests in the Same Global Note. Beneficial interests in
any Global Note may be transferred to Persons who take delivery thereof in the form of a
beneficial interest in the same Global Note. No written orders or instructions shall be
required to be delivered to the Registrar to effect the transfers described in this Section
2.06(b)(1).

     (2) All Other Transfers and Exchanges of Beneficial Interests in Global Notes. In
connection with all transfers and exchanges of beneficial interests that are not subject to
Section 2.06(b)(1) above, the transferor of such beneficial interest must deliver to the
Registrar either:

(A) both:

     (i) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to credit or cause to be credited a beneficial
interest in another Global Note of such series in an amount equal to the
beneficial interest to be transferred or exchanged; and

     (ii) instructions given in accordance with the Applicable Procedures
containing information regarding the Participant account to be credited
with such increase; or

(B) both:

     (i) a written order from a Participant or an Indirect Participant
given to the Depositary in accordance with the Applicable Procedures
directing the Depositary to cause to be issued a Definitive Note of such
series in an amount equal to the beneficial interest to be transferred or
exchanged; and

     (ii) instructions given by the Depositary to the Registrar containing
information regarding the Person in whose name such Definitive Note of
such series shall be registered to effect the transfer or exchange
referred to in (1) above.

Upon satisfaction of all of the requirements for transfer or exchange of beneficial interests in
Global Notes contained in this Indenture and the Notes or otherwise applicable under the Securities
Act, the Trustee shall adjust the principal amount of the relevant Global Note(s) pursuant to
Section 2.06(g) hereof.

     (c) Transfer or Exchange of Beneficial Interests in Global Notes for Definitive Notes.

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     If any holder of a beneficial interest in an Global Note of a series proposes to exchange such
beneficial interest for a Definitive Note of such series or to transfer such beneficial interest to
a Person who takes delivery thereof in the form of a Definitive Note of such series, then, upon
satisfaction of the conditions set forth in Section 2.06(b)(2) hereof, the Trustee shall cause the
aggregate principal amount of the applicable Global Note of such series to be reduced accordingly
pursuant to Section 2.06(g) hereof, and the Company shall execute and the Trustee shall
authenticate and deliver to the Person designated in the instructions a Definitive Note of such
series in the appropriate principal amount. Any Definitive Note issued in exchange for a
beneficial interest pursuant to this Section 2.06(c) shall be registered in such name or names and
in such authorized denomination or denominations as the holder of such beneficial interest requests
through instructions to the Registrar from or through the Depositary and the Participant or
Indirect Participant. The Trustee shall deliver such Definitive Notes to the Persons in whose
names such Notes are so registered.

     (d) Transfer and Exchange of Definitive Notes for Beneficial Interests in Global Notes.

     A Holder of a Definitive Note of a series may exchange such Note for a beneficial interest in
a Global Note of such series or transfer such Definitive Notes to a Person who takes delivery
thereof in the form of a beneficial interest in a Global Note of such series at any time. Upon
receipt of a request for such an exchange or transfer, the Trustee will cancel the applicable
Definitive Note and increase or cause to be increased the aggregate principal amount of one of the
Global Notes of such series.

     (e) Transfer and Exchange of Definitive Notes for Definitive Notes. Upon request by a Holder
of Definitive Notes and such Holder’s compliance with the provisions of this Section 2.06(e), the
Registrar will register the transfer or exchange of Definitive Notes. Prior to such registration
of transfer or exchange, the requesting Holder must present or surrender to the Registrar the
Definitive Notes of such series duly endorsed or accompanied by a written instruction of transfer
in form satisfactory to the Registrar duly executed by such Holder or by its attorney, duly
authorized in writing. A Holder of Definitive Notes of a series may transfer such Notes to a
Person who takes delivery thereof in the form of a Definitive Note of such series. Upon receipt of
a request to register such a transfer, the Registrar shall register the Definitive Notes of such
series pursuant to the instructions from the Holder thereof.

     (f) Legends. The following legends will appear on the face of all Global Notes and Definitive
Notes issued under this Indenture unless specifically stated otherwise in the applicable provisions
of this Indenture.

     (1) Global Note Legend. Each Global Note will bear a legend in substantially the
following form:

     “THIS GLOBAL NOTE IS HELD BY THE DEPOSITARY (AS DEFINED IN THE INDENTURE GOVERNING THIS NOTE)
OR ITS NOMINEE IN CUSTODY FOR THE BENEFIT OF THE BENEFICIAL OWNERS HEREOF, AND IS NOT TRANSFERABLE
TO ANY PERSON UNDER ANY CIRCUMSTANCES EXCEPT THAT (1) THE TRUSTEE MAY MAKE SUCH NOTATIONS HEREON AS
MAY BE REQUIRED PURSUANT TO SECTION 2.06 OF THE INDENTURE, (2) THIS GLOBAL NOTE MAY BE EXCHANGED IN
WHOLE BUT NOT IN PART PURSUANT TO SECTION 2.06(a) OF THE INDENTURE, (3) THIS GLOBAL NOTE MAY BE
DELIVERED TO THE TRUSTEE FOR CANCELLATION PURSUANT TO SECTION 2.11 OF THE INDENTURE AND (4) THIS
GLOBAL NOTE MAY

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BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE COMPANY.

     UNLESS AND UNTIL IT IS EXCHANGED IN WHOLE OR IN PART FOR NOTES IN DEFINITIVE FORM, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT AS A WHOLE BY THE DEPOSITARY TO A NOMINEE OF THE DEPOSITARY OR BY A
NOMINEE OF THE DEPOSITARY TO THE DEPOSITARY OR ANOTHER NOMINEE OF THE DEPOSITARY OR BY THE
DEPOSITARY OR ANY SUCH NOMINEE TO A SUCCESSOR DEPOSITARY OR A NOMINEE OF SUCH SUCCESSOR DEPOSITARY.
UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY (55 WATER STREET, NEW YORK, NEW YORK) (“DTC”), TO THE COMPANY OR ITS AGENT FOR REGISTRATION
OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE &
CO. OR SUCH OTHER NAME AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT
IS MADE TO CEDE & CO. OR SUCH OTHER ENTITY AS MAY BE REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF
DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS
WRONGFUL INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.”

     (2) Gaming Law Legend. Each Global Note and Definitive Note (and all Notes issued in
exchange therefor or in substitution thereof) shall bear the legend in substantially the
following form:

     “THE NOTES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON OWNERSHIP AND
TRANSFER IMPOSED BY APPLICABLE GAMING LAWS, THE PROVISIONS OF ARTICLE XIII OF THE COMPANY’S
RESTATED CERTIFICATE OF INCORPORATION, INCLUDING ANY AMENDMENTS THERETO OR ANY SUCCESSOR PROVISIONS
THERETO, AND SECTION 3.08 OF THE INDENTURE (WHICH IS SUMMARIZED ON THIS CERTIFICATE). A COPY OF
ARTICLE XIII OF THE COMPANY’S RESTATED CERTIFICATE OF INCORPORATION IS ON FILE AT THE OFFICE OF THE
COMPANY, AND MADE A PART HEREOF AS FULLY AS THOUGH THE PROVISIONS OF SAID PROVISIONS OF THE
COMPANY’S RESTATED CERTIFICATE OF INCORPORATION WERE PRINTED IN FULL ON THIS CERTIFICATE, TO ALL OF
WHICH THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE HEREOF, ASSENTS AND AGREES TO BE BOUND. ANY
HOLDER OF A NOTE MAY OBTAIN, UPON REQUEST AND WITHOUT CHARGE, A COPY OF SUCH PROVISIONS OF THE
COMPANY’S RESTATED CERTIFICATE OF INCORPORATION. ANY SUCH REQUEST SHALL BE ADDRESSED TO THE
SECRETARY OF THE COMPANY.”

     (g) Cancellation and/or Adjustment of Global Notes. At such time as all beneficial interests
in a particular Global Note of a series have been exchanged for Definitive Notes of such series or
a particular Global Note has been redeemed, repurchased or canceled in whole and not in part, each
such Global Note will be returned to or retained and canceled by the Trustee in accordance with
Section 2.11 hereof. At any time prior to such cancellation, if any beneficial interest in a
Global Note of a series is exchanged for or transferred to a Person who will take delivery thereof
in the form of a beneficial interest in another Global Note of such series or for Definitive Notes
of such series, the principal amount of Notes represented by such Global Note will be reduced
accordingly and an endorsement will be made on such Global Note by the Trustee or by the Depositary
at the direction of the Trustee to reflect such reduction; and if the beneficial

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interest is being exchanged for or transferred to a Person who will take delivery thereof in
the form of a beneficial interest in another Global Note of such series, such other Global Note
will be increased accordingly and an endorsement will be made on such Global Note by the Trustee or
by the Depositary at the direction of the Trustee to reflect such increase.

     (h) General Provisions Relating to Transfers and Exchanges.

     (1) To permit registrations of transfers and exchanges, the Company will execute and
the Trustee will authenticate Global Notes and Definitive Notes upon receipt of an
Authentication Order in accordance with Section 2.02 hereof or at the Registrar’s request.

     (2) No service charge will be made to a Holder of a beneficial interest in a Global
Note or to a Holder of a Definitive Note for any registration of transfer or exchange, but
the Company may require payment of a sum sufficient to cover any transfer tax or similar
governmental charge payable in connection therewith (other than any such transfer taxes or
similar governmental charge payable upon exchange or transfer pursuant to Sections 2.10,
3.07 and 9.05 hereof or other provisions relating to any offer to purchase Notes required
to be made by the Company contained in any Board Resolution, supplemental indenture hereto
or an Officers’ Certificate establishing or amending a series of Notes).

     (3) The Registrar will not be required to register the transfer of or exchange of any
Note selected for redemption in whole or in part, except the unredeemed portion of any Note
being redeemed in part.

     (4) All Global Notes and Definitive Notes of a series issued upon any registration of
transfer or exchange of Global Notes or Definitive Notes of such series will be the valid
obligations of the Company, evidencing the same debt, and entitled to the same benefits
under this Indenture, as the Global Notes or Definitive Notes of such series surrendered
upon such registration of transfer or exchange.

     (5) Neither the Registrar nor the Company will be required:

     (A) to issue, to register the transfer of or to exchange any Notes of a series
during a period beginning at the opening of business 15 days before the day of any
selection of Notes of such series for redemption under Section 3.03 hereof and
ending at the close of business on the day of selection;

     (B) to register the transfer of or to exchange any Note selected for
redemption in whole or in part, except the unredeemed portion of any Note being
redeemed in part; or

     (C) to register the transfer of or to exchange a Note of a series between a
record date and the next succeeding interest payment date of such series.

     (6) Prior to due presentment for the registration of a transfer of any Note, the
Trustee, any Agent and the Company may deem and treat the Person in whose name any Note is
registered as the absolute owner of such Note for the purpose of receiving

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payment of principal of and interest on such Notes and for all other purposes, and none of
the Trustee, any Agent or the Company shall be affected by notice to the contrary.

     (7) The Trustee will authenticate Global Notes and Definitive Notes in accordance with
the provisions of Section 2.02 hereof.

     (8) All certifications and certificates required to be submitted to the Registrar
pursuant to this Section 2.06 to effect a registration of transfer or exchange may be
submitted by facsimile.

Section 2.07 Replacement Notes.

     If any mutilated Note is surrendered to the Trustee or the Company and the Trustee receives
evidence to its satisfaction of the destruction, loss or theft of any Note, the Company will issue
and the Trustee, upon receipt of an Authentication Order, will authenticate a replacement Note of
the same series if the Trustee’s requirements are met. If required by the Trustee or the Company,
an indemnity bond must be supplied by the Holder that is sufficient in the judgment of the Trustee
and the Company to protect the Company, the Trustee, any Agent and any authenticating agent from
any loss that any of them may suffer if a Note is replaced. The Company may charge a Holder for
its expenses in replacing a Note.

     Every replacement Note of a series is an additional obligation of the Company and will be
entitled to all of the benefits of this Indenture equally and proportionately with all other Notes
of such series duly issued hereunder.

Section 2.08 Outstanding Notes.

     The Notes outstanding at any time are all the Notes authenticated by the Trustee except for
those canceled by it, those delivered to it for cancellation, those reductions in the interest in a
Global Note effected by the Trustee in accordance with the provisions hereof, and those described
in this Section 2.08 as not outstanding. Except as set forth in Section 2.09 hereof or in any
provision of the form of Note that so expressly states, a Note does not cease to be outstanding
because the Company or an Affiliate of the Company holds the Note.

     If a Note is replaced pursuant to Section 2.07 hereof, it ceases to be outstanding unless the
Trustee receives proof satisfactory to it that the replaced Note is held by a bona fide purchaser.

     If the principal amount of any Note is considered paid under Section 4.01 hereof, it ceases to
be outstanding and interest on it ceases to accrue.

     If the Paying Agent (other than the Company, a Subsidiary or an Affiliate of any thereof)
holds, on a redemption date or maturity date, money sufficient to pay Notes payable on that date,
then on and after that date such Notes will be deemed to be no longer outstanding and will cease to
accrue interest.

Section 2.09 Treasury Notes.

     In determining whether the Holders of the required principal amount of Notes of a series have
concurred in any direction, waiver or consent, Notes owned by the Company or any Guarantor, or by
any Person directly or indirectly controlling or controlled by or under direct or

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indirect common control with the Company or any Guarantor, will be considered as though not
outstanding, except that for the purposes of determining whether the Trustee will be protected in
relying on any such direction, waiver or consent, only Notes of such series that a Responsible
Officer of the Trustee actually knows are so owned will be so disregarded.

Section 2.10 Temporary Notes.

     Until certificates representing Notes are ready for delivery, the Company may prepare and the
Trustee, upon receipt of an Authentication Order, will authenticate temporary Notes. Temporary
Notes will be substantially in the form of certificated Notes but may have variations that the
Company considers appropriate for temporary Notes and as may be reasonably acceptable to the
Trustee. Without unreasonable delay, the Company will prepare and the Trustee will authenticate
definitive Notes in exchange for temporary Notes.

     Holders of temporary Notes will be entitled to all of the benefits of this Indenture.

Section 2.11 Cancellation.

     The Company at any time may deliver Notes to the Trustee for cancellation. The Registrar and
Paying Agent will forward to the Trustee any Notes surrendered to them for registration of
transfer, exchange or payment. The Trustee and no one else will cancel all Notes surrendered for
registration of transfer, exchange, payment, replacement or cancellation and will dispose of such
canceled Notes (subject to the record retention requirement of the Exchange Act) in its customary
manner. The Company may not issue new Notes to replace Notes that it has paid or that have been
delivered to the Trustee for cancellation.

Section 2.12 Defaulted Interest.

     If the Company defaults in a payment of interest on a series of Notes, it will pay the
defaulted interest in any lawful manner plus, to the extent lawful, interest payable on the
defaulted interest, to the Persons who are Holders on a subsequent special record date, in each
case at the rate provided in the Notes and in Section 4.01 hereof. The Company will notify the
Trustee in writing of the amount of defaulted interest proposed to be paid on each Note of such
series and the date of the proposed payment. The Company will fix or cause to be fixed each such
special record date and payment date; provided that no such special record date may be less than 10
days prior to the related payment date for such defaulted interest. At least 15 days before the
special record date, the Company (or, upon the written request of the Company, the Trustee in the
name and at the expense of the Company) will mail or cause to be mailed to Holders of such series
of Notes a notice that states the special record date, the related payment date and the amount of
such interest to be paid.

Section 2.13 CUSIP Numbers.

     The Company in issuing the Notes 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 Notes or as contained in any notice of a
redemption and that reliance may be placed only on the other identification numbers printed on the
Notes, and any such redemption shall not be affected by any defect in or omission of such numbers.
The Company will promptly notify the Trustee of any change in the “CUSIP” numbers.

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ARTICLE 3

REDEMPTION AND PREPAYMENT

Section 3.01 Optional Redemption.

     Notes of any series which are redeemable before their maturity shall be redeemable in
accordance with their terms set forth in any Board Resolution, Officers’ Certificate or
supplemental indenture that establishes or amends the terms of the Notes of any series and in
accordance with this Article.

Section 3.02 Notices to Trustee.

     If the Company elects to redeem Notes of any series pursuant to the optional redemption
provisions of such Note and Section 3.08 hereof, it must furnish to the Trustee, at least 15 days
but not more than 60 days before a redemption date, an Officers’ Certificate setting forth:

     (1) the clause of this Indenture pursuant to which the redemption shall occur;

     (2) the series of Notes to be redeemed;

     (3) the redemption date;

     (4) the principal amount of Notes to be redeemed;

     (5) the redemption price; and

     (6) the applicable CUSIP numbers.

Section 3.03 Selection of Notes to Be Redeemed or Purchased.

     If less than all of the Notes of any series are to be redeemed or purchased pursuant to this
Indenture (except as provided in Section 3.08) at any time, the Trustee will select the Notes of
such series to be redeemed or purchased among the holders of Notes of such series as follows:

     (1) if such Notes are listed, in compliance with the requirements of the principal
national securities exchange on which such Notes are listed, or

     (2) if such Notes are not so listed, on a pro rata basis, by lot or in accordance with
any other method the Trustee considers fair and appropriate.

     In the event of partial redemption or purchase by lot, the particular Notes of any series to
be redeemed or purchased will be selected, unless otherwise provided herein, not less than 10 nor
more than 60 days prior to the redemption or purchase date by the Trustee from the outstanding
Notes of such series not previously called for redemption or purchase.

     The Trustee will promptly notify the Company in writing of the Notes selected for redemption
or purchase and, in the case of any Note selected for partial redemption or purchase, the principal
amount thereof to be redeemed or purchased. Notes of a series and portions of such Notes selected
will be in amounts of $1,000 or whole multiples of $1,000; except that if all of the Notes of a
series of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes of such
series held by such Holder, even if not a multiple of $1,000, shall be redeemed or purchased.
Except as provided in the preceding sentence, provisions of this Indenture that apply

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to Notes of a series called for redemption or purchase also apply to portions of Notes of a
series called for redemption or purchase.

Section 3.04 Notice of Redemption.

     Unless otherwise indicated for a particular series by Board Resolution establishing the terms
of any series of Notes as set forth, or determined in the manner provided, in an Officers’
Certificate, or established in a supplemental indenture hereto, at least 15 days but not more than
60 days before a redemption date, the Company will mail or cause to be mailed, by first class mail,
a notice of redemption to each Holder whose Notes are to be redeemed at its registered address,
except that redemption notices may be mailed more than 60 days prior to a redemption date if the
notice is issued in connection with a defeasance of the Notes or a satisfaction and discharge of
this Indenture pursuant to Articles 8 or 11 hereof.

     The notice will identify the Notes of the series to be redeemed and will state:

     (1) the redemption date;

     (2) the redemption price;

     (3) if any Note of such series is being redeemed in part, the portion of the principal
amount of such Note to be redeemed and that, after the redemption date upon surrender of
such Note, a new Note or Notes of such series in principal amount equal to the unredeemed
portion will be issued upon cancellation of the original Note;

     (4) the name and address of the Paying Agent;

     (5) that Notes of such series called for redemption must be surrendered to the Paying
Agent to collect the redemption price;

     (6) that, unless the Company defaults in making such redemption payment, interest and
Additional Interest, if any, on Notes of such series called for redemption ceases to accrue
on and after the redemption date, subject to the satisfaction of any condition to such
redemption;

     (7) the paragraph of the Notes of such series and/or Section of this Indenture
pursuant to which the Notes of such series called for redemption are being redeemed; and

     (8) that no representation is made as to the correctness or accuracy of the CUSIP
number, if any, listed in such notice or printed on the Notes of such series.

     At the Company’s request, the Trustee will give the notice of redemption in the Company’s name
and at its expense; provided, however, that the Company has delivered to the Trustee, at least 45
days prior to the redemption date (unless a shorter period is acceptable to the Trustee), an
Officers’ Certificate requesting that the Trustee give such notice and setting forth the
information to be stated in such notice as provided in the preceding paragraph.

Section 3.05 Effect of Notice of Redemption.

     Once notice of redemption is mailed in accordance with Section 3.04 hereof, Notes called for
redemption become irrevocably due and payable on the redemption date at the redemption

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price, subject to the satisfaction of any conditions to such redemption. A notice of
redemption may be conditional in that the Company may, notwithstanding the giving of the notice of
redemption, condition the redemption of the Notes specified in the notice of redemption upon the
completion of other transactions, such as refinancings or acquisitions (whether of the Company or
by the Company).

Section 3.06 Deposit of Redemption or Purchase Price.

     On or before 10:00 a.m. New York City time on the redemption or purchase date, the Company
will deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption or
purchase price of and accrued interest and Additional Interest, if any, on all Notes to be redeemed
or purchased on that date. The Trustee or the Paying Agent will promptly return to the Company any
money deposited with the Trustee or the Paying Agent by the Company in excess of the amounts
necessary to pay the redemption or purchase price of, and accrued interest and Additional Interest,
if any, on, all Notes to be redeemed or purchased.

     If the Company complies with the provisions of the preceding paragraph, on and after the
redemption or purchase date, subject to the satisfaction of any conditions to such redemption,
interest will cease to accrue on the Notes or the portions of Notes called for redemption or
purchase. If a Note is redeemed or purchased on or after an interest record date but on or prior
to the related interest payment date, then any accrued and unpaid interest shall be paid to the
Person in whose name such Note was registered at the close of business on such record date. If any
Note called for redemption or purchase is not so paid upon surrender for redemption or purchase
because of the failure of the Company to comply with the preceding paragraph, interest shall be
paid on the unpaid principal, from the redemption or purchase date until such principal is paid,
and to the extent lawful on any interest not paid on such unpaid principal, in each case at the
rate provided in the Notes and in Section 4.01 hereof.

Section 3.07 Notes Redeemed or Purchased in Part.

     Upon surrender of a Note that is redeemed or purchased in part, the Company will issue and,
upon receipt of an Authentication Order, the Trustee will authenticate for the Holder at the
expense of the Company a new Note of the same series equal in principal amount to the unredeemed or
unpurchased portion of the Note surrendered.

Section 3.08 Mandatory Disposition or Redemption of Notes Pursuant to Gaming Laws.

     (a)

     In addition to the foregoing, if:

     (1) any Gaming Authority makes a determination of unsuitability of a Holder or
beneficial owner of Notes (or of an Affiliate of such Holder or beneficial owner), or

     (2) any Gaming Authority requires that a Holder or beneficial owner of Notes (or an
Affiliate thereof) must either (i) be licensed, qualified or found suitable under any
applicable Gaming Laws or (ii) reduce its position in the Notes to below a level that would
require licensure, qualification or a finding of suitability, and such Holder or beneficial
owner (or Affiliate thereof):

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     (A) fails to apply for a license, qualification or a finding of suitability
within 30 days (or such shorter period as may be required by the applicable Gaming
Authority) after being requested to do so by the Gaming Authority,

     (B) fails to reduce its position in the Notes appropriately; or

     (C) is denied such license or qualification or not found suitable(any such
Holder or beneficial owner specified in clause (1) or (2) above shall be referred
to as a “Disqualified Holder”),

          the Company shall have the right, at any time from or after the date of this Indenture, at its
option:

     (1) to require any such Holder or beneficial owner to dispose of all or a portion of
its Notes within 30 days (or such earlier date as may be required by the applicable Gaming
Authority) of receipt of such notice or finding by such Gaming Authority, or

     (2) to call for the redemption of all or a portion of the Notes of such Holder or
beneficial owner at a redemption price equal to the least of:

     (A) the principal amount thereof,

     (B) the price at which such Holder or beneficial owner acquired the Notes, in
the case of either clause (A) above or this clause (B), together with accrued and
unpaid interest and Additional Interest, if any, to the earlier of the date of
redemption or the date of the denial of license or qualification or of the finding
of unsuitability by such Gaming Authority (subject to the rights of Holders of
Notes on the relevant record dates occurring prior to such redemption date to
receive interest on the relevant interest payment date), or

     (C) such other lesser amount as may be required by any Gaming Authority.

     Immediately upon a determination by a Gaming Authority that a Holder or beneficial owner of
the Notes (or an Affiliate thereof) will not be licensed, qualified or found suitable or is denied
a license, qualification or finding of suitability, the Holder or beneficial owner will not have
any further rights with respect to the Notes to:

     (1) exercise, directly or indirectly, through any Person, any right conferred by the
Notes;

     (2) receive any interest or Additional Interest, if any, or any other distribution or
payment with respect to the Notes; or

     (3) receive any remuneration in any form from the Company or its Affiliates for
services rendered or otherwise, except the redemption price of the Notes.

     The Company shall notify the Trustee in writing of any such redemption as soon as practicable.
The Holder or beneficial owner (or an Affiliate thereof) applying for a license,

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qualification or a finding of suitability must pay all costs of the licensure or investigation
for such qualification or finding of suitability.

     (b) In addition, by accepting a Note, each Holder or beneficial owner of a Note will be deemed
to have agreed to comply with all requirements of the Gaming Laws and Gaming Authorities in each
jurisdiction where the Company and its Affiliates are licensed or registered or proposed to be
licensed or registered under applicable Gaming Laws or conduct or propose to conduct gaming
activities, including without limitation, if so required, apply for any license, qualification or
finding of suitability within the required time period. Each Holder or beneficial owner will also
be deemed to have agreed that the Notes held by such Holder or beneficial owner shall be subject to
the provisions of Article XIII of the Company’s Restated Certificate of Incorporation (dealing with
Gaming Laws and gaming-related restrictions on ownership and transfer), including any amendments
thereto or any successor provisions thereto.

Section 3.09 Mandatory Redemption.

     The Company is not required to make mandatory redemption or sinking fund payments with respect
to the Notes.

ARTICLE 4

COVENANTS

Section 4.01 Payment of Notes.

     The Company will pay or cause to be paid the principal of, premium, if any, and interest and
Additional Interest, if any, on, the Notes of a series on the dates and in the manner provided in
accordance with the terms of such Notes and this Indenture. Principal, premium, if any, and
interest and Additional Interest, if any will be considered paid on the date due if the Paying
Agent, if other than the Company or a Subsidiary thereof, holds as of 10:00 a.m. Eastern Time on
the due date money deposited by the Company in immediately available funds and designated for and
sufficient to pay all principal, premium, if any, and interest then due.

     The Company will pay interest (including post-petition interest in any proceeding under any
Bankruptcy Law) on overdue principal at the rate equal to 1% per annum in excess of the then
applicable interest rate on the Notes to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Interest (without regard to any applicable grace period) at the same rate
to the extent lawful.

Section 4.02 Maintenance of Office or Agency.

     The Company will maintain in the Borough of Manhattan, the City of New York, an office or
agency (which may be an office of the Trustee or an affiliate of the Trustee, Registrar or
co-registrar) where Notes may be surrendered for registration of transfer or for exchange and where
notices and demands to or upon the Company in respect of the Notes and this Indenture may be
served. The Company 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 Company fails to maintain any such
required office or agency or fails 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 (or at the office of its affiliate, if so designated by the Trustee).

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     The Company may also from time to time designate one or more other offices or agencies where
the Notes 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 will in any
manner relieve the Company of its obligation to maintain an office or agency in the Borough of
Manhattan, the City of New York for such purposes. The Company 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.

     The Company hereby designates the Corporate Trust Office of the Trustee, as one such office or
agency of the Company in accordance with Section 2.03 hereof.

Section 4.03 Reports.

     (a) Whether or not required by the rules and regulations of the SEC, so long as any series of
Notes are outstanding, the Company will furnish to the Trustee for mailing to the Holders of such
series of Notes:

     (1) all quarterly and annual financial information that would be required to be
contained in a filing or filings by the Company with the SEC on Forms 10-Q and 10-K if the
Company were required to file such forms, including a “Management’s Discussion and Analysis
of Financial Condition and Results of Operations” and, with respect to the annual
information only, a report thereon by the Company’s certified independent accountants, and

     (2) all current reports that would be required to be filed by the Company with the SEC
on Form 8-K if the Company were required to file such reports,

in each case within 15 days of the time periods specified in the SEC’s rules and regulations.

     In addition, whether or not required by the rules and regulations of the SEC, the Company will
file a copy of all such information and reports with the SEC for public availability (unless the
SEC will not accept such a filing) and make such information available to securities analysts and
prospective investors upon request. The Company may deliver the consolidated reports or financial
information of the Company to comply with the foregoing requirements. The Company will at all
times comply with TIA § 314(a).

     If, at any time, the Company is no longer subject to the periodic reporting requirements of
the Exchange Act for any reason, the Company will nevertheless continue filing the reports
specified in the preceding paragraph with the SEC within the time periods specified above unless
the SEC will not accept such a filing. The Company will not take any action for the purpose of
causing the SEC not to accept any such filings. If, notwithstanding the foregoing, the SEC will
not accept the Company’s filings for any reason, the Company will post the reports referred to in
the preceding paragraph on its website within the time periods that would apply if the Company were
required to file those reports with the SEC.

     Delivery of such reports, information and documents to the Trustee is for informational
purposes only and the Trustee’s receipt of such shall not constitute constructive notice of any
information contained therein or determinable from information contained therein, including the
Company’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to
rely exclusively on Officers’ Certificates).

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     (b) For so long as any series of Notes remain outstanding, if at any time they are not
required to file with the SEC the reports required by paragraphs (a) and (b) of this Section 4.03,
the Company and the Guarantors will furnish to the Holders of such series of Notes and to
securities analysts and prospective investors, upon their request, the information required to be
delivered pursuant to Rule 144A(d)(4) under the Securities Act.

Section 4.04 Compliance Certificate.

     (a) The Company and each Guarantor (to the extent that such Guarantor is so required under the
TIA) shall deliver to the Trustee, within 120 days after the end of each fiscal year, beginning
April 30, 2008, an Officers’ Certificate stating that a review of the activities of the Company 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 Company 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 or her knowledge the Company 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 of this Indenture
(or, if a Default or Event of Default has occurred, describing all such Defaults or Events of
Default of which he or she may have knowledge and what action the Company is taking or proposes to
take with respect thereto) and that to the best of his or her knowledge no event has occurred and
remains in existence by reason of which payments on account of the principal of or interest, if
any, on the Notes is prohibited or if such event has occurred, a description of the event and what
action the Company is taking or proposes to take with respect thereto.

     (b) So long as any of the Notes are outstanding, the Company will 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 4.05 Stay, Extension and Usury Laws.

     The Company and each of the Guarantors covenants (to the extent that it may lawfully do so)
that it will not at any time insist upon, plead, or in any manner whatsoever claim or take the
benefit or advantage of, any stay, extension or usury law wherever enacted, now or at any time
hereafter in force, that may affect the covenants or the performance of this Indenture; and the
Company and each of the Guarantors (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 has been enacted.

Section 4.06 Legal Existence.

     Subject to Article 5 hereof, the Company shall do or cause to be done all things necessary to
preserve and keep in full force and effect:

     (1) its corporate existence, and the corporate, partnership or other existence of each
of its Subsidiaries, in accordance with the respective organizational documents (as the
same may be amended from time to time) of the Company or any such Subsidiary; and

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     (2) the rights (charter and statutory), licenses and franchises of the Company and its
Subsidiaries;

     provided, however, that the Company shall not be required to preserve any such right, license
or franchise, or the corporate, partnership or other existence of any of its Subsidiaries, if the
Company shall determine that the preservation thereof is no longer desirable in the conduct of the
business of the Company and its Subsidiaries, taken as a whole, and that the loss thereof is not
adverse in any material respect to the Holders of the Notes.

ARTICLE 5

SUCCESSORS

Section 5.01 Merger, Consolidation, or Sale of Assets.

     The Company may not, in a single transaction or a series of related transactions, consolidate
or merge with or into any Person, or sell, assign, transfer, lease, convey or otherwise dispose of
all or substantially all of the properties or assets of the Company and its Subsidiaries, taken as
a whole, to any Person or adopt a Plan of Liquidation unless:

     (1) either

     (A) in the case of a consolidation or merger, the Company, or any successor
thereto, is the surviving or continuing corporation, or

     (B) the Person (if other than the Company) formed by such consolidation or
into which the Company is merged or the Person which acquires by sale, assignment,
transfer, lease, conveyance or other disposition of the properties and assets of
the Company and its Subsidiaries, taken as a whole, or in the case of a Plan of
Liquidation, the Person to which assets of the Company and its Subsidiaries have
been transferred (i) shall be a corporation or other entity organized and validly
existing under the laws of the United States or any State thereof or the District
of Columbia; provided, that if the successor is an entity other than a corporation,
the Notes shall be co-issued or assumed on a co-issuer basis by a corporation
organized and validly existing under the laws of the United States or any State
thereof or the District of Columbia and (ii) shall expressly assume, by
supplemental indenture (in form and substance satisfactory to the Trustee),
executed and delivered to the Trustee, the due and punctual payment of the
principal of, and premium, if any, and interest and Additional Interest, if any, on
all of the Notes and the performance of every covenant of the Notes and this
Indenture on the part of the Company to be performed or observed;

     (2) immediately before and immediately after giving effect to such transaction and the
assumption contemplated by clause (1)(B)(ii) above no Default and no Event of Default shall
have occurred or be continuing; and

     (3) the Company or such other Person shall have delivered to the Trustee an Officers’
Certificate and an Opinion of Counsel, each stating that such consolidation, merger, sale,
assignment, transfer, lease, conveyance, other disposition or Plan of Liquidation and, if a
supplemental indenture is required in connection with such transaction, such supplemental
indenture, comply with the applicable provisions of this

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Indenture and that all conditions precedent in this Indenture relating to such
transaction have been satisfied.

     Notwithstanding the provisions in this Section 5.01 above:

     (1) any Restricted Subsidiary may consolidate with, or merge with or into, or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its assets to the
Company or to a Restricted Subsidiary, and

     (2) the Company or any Subsidiary may consolidate with or merge with or into, or sell, assign,
transfer, lease, convey or otherwise dispose of all or substantially all of its assets to any
Person if such transaction is solely for the purpose of effecting a change in the state of
incorporation or form of organization of the Company or such Subsidiary.

     For purposes of the foregoing, the transfer (by lease, assignment, sale or otherwise, in a
single transaction or series of transactions) of all or substantially all of the properties and
assets of one or more Subsidiaries of the Company, the Capital Stock of which constitutes all or
substantially all of the properties and assets of the Company, shall be deemed to be the transfer
of all or substantially all of the properties and assets of the Company.

Section 5.02 Successor Person Substituted.

     Upon any consolidation or merger, or any sale, assignment, transfer, lease, conveyance or
other disposition of all or substantially all of the properties or assets of the Company in a
transaction that is subject to, and that complies with the provisions of, Section 5.01 hereof, the
successor Person formed by such consolidation or into or with which the Company is merged or to
which such sale, assignment, transfer, lease, conveyance or other disposition is made shall succeed
to, and be substituted for (so that from and after the date of such consolidation, merger, sale,
assignment, transfer, lease, conveyance or other disposition, the provisions of this Indenture
referring to the Company shall refer instead to the successor Person and not to the Company), and
may exercise every right and power of the Company under this Indenture with the same effect as if
such successor Person had been named as the Company herein; and thereafter the predecessor Company
and the Guarantors shall be relieved from the obligation to pay the principal of and interest on
the Notes and from any further obligation under this Indenture.

ARTICLE 6

DEFAULTS AND REMEDIES

Section 6.01 Events of Default.

     Each of the following is an “Event of Default” with respect to Notes of any series:

     (1) default for 30 days in the payment when due of interest (including any Additional
Interest) on the Notes of such series or the Guaranties of such series;

     (2) default in payment of the principal of or premium, if any, on the Notes of such
series or the Guaranties of such series when due and payable, at maturity, upon
acceleration, redemption or otherwise;

     (3) failure by any Obligor to comply with any of its other agreements in this
Indenture (other than an agreement that has been included in this Indenture solely for the

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benefit of a series of Notes other than such series), the Notes of such series or the
Guaranties of such series for 60 days after written notice to the Company by the Trustee or
by Holders of not less than 25% in aggregate principal amount of the Notes of such series
then outstanding voting as a single class;

     (4) default under any mortgage, indenture or instrument under which there may be
issued or by which there may be secured or evidenced any Indebtedness for money borrowed by
any Obligor (or the payment of which is guaranteed by any Obligor) whether such
Indebtedness or guarantee now exists, or is created after the date such series of Notes was
first issued;

     (A) is caused by a failure to pay principal of or premium, if any, or
interest, if any, on such Indebtedness prior to the expiration of the grace period
provided in such Indebtedness on the date of such default (a “Payment Default”), or

     (B) results in the acceleration of such Indebtedness prior to its express
maturity

          and, in each case, the principal amount of any such Indebtedness, together with the principal
amount of any other such Indebtedness under which there has been a Payment Default or the maturity
of which has been so accelerated, aggregates $50 million or more;

     (5) failure by any Obligor to pay final judgments aggregating in excess of $50
million, net of any amounts reasonably expected to be covered by insurance, which
judgments are not paid, discharged or stayed for a period of 60 days after such judgment or
judgments become final and non-appealable;

     (6) any Obligor pursuant to or within the meaning of 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, or

     (D) makes a general assignment for the benefit of its creditors, and

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

     (A) is for relief against any Obligor in an involuntary case;

     (B) appoints a custodian of any Obligor or for all or substantially all of the
property of any Obligor; or

     (C) orders the liquidation of any Obligor;

          and the order or decree remains unstayed and in effect for 60 consecutive days.

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Section 6.02 Acceleration.

     If an Event of Default with respect to the Notes of any series (other than an Event of Default
with respect to clauses (6) and (7) of Section 6.01 hereof with respect to the Company or any of
its Significant Subsidiaries or any group of Obligors that, taken together as a whole, would
constitute a Significant Subsidiary), including, without limitation, an Event of Default specified
in clauses (6) and (7) of Section 6.01 hereof, with respect to a single Obligor that does not
constitute a Significant Subsidiary or a group of Obligors that taken together as a whole would not
constitute a Significant Subsidiary, occurs and is continuing, then and in every such case, the
Trustee or the Holders of not less than 25% in aggregate principal amount of the then outstanding
Notes of such series may declare the principal amount, together with any accrued and unpaid
interest and premium and Additional Interest, if any, on all the Notes of such series and
Guaranties of such series then outstanding to be due and payable, by a notice in writing to the
Company (and to the Trustee, if given by Holders) specifying the Event of Default and that it is a
“notice of acceleration” and on the fifth Business Day after delivery of such notice the principal
amount, in either case, together with any accrued and unpaid interest and premium and Additional
Interest, if any, on all the Notes of such series or the Guaranties of such series then outstanding
will become immediately due and payable, notwithstanding anything contained in this Indenture, the
Notes or the Guaranties to the contrary. Upon the occurrence of specified Events of Default
specified in clause (6) or (7) of Section 6.01 hereof with respect to the Company or any of its
Significant Subsidiaries or any group of Obligors that, taken together as a whole, would constitute
a Significant Subsidiary, the principal amount, together with any accrued and unpaid interest and
premium and Additional Interest, if any, will immediately and automatically become due and payable,
without the necessity of notice or any other action by any Person. Holders of the Notes of such
series may not enforce this Indenture, the Notes or the Guaranties except as provided in this
Indenture. Subject to certain limitations, Holders of a majority in principal amount of the then
outstanding Notes of a series may direct the Trustee in its exercise of any trust or power. The
Trustee shall be under no obligation to exercise any of the rights or powers at the request or
direction of any of the Holders unless such Holders shall have offered to the trustee security or
indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction. The Trustee may withhold from Holders
of the Notes of a series notice of any continuing Default or Event of Default (except a Default or
Event of Default relating to the payment of principal or interest or Additional Interest, if any)
if it determines that withholding notice is in their interest.

          Upon any such declaration of acceleration, the Notes of such series shall become due and
payable immediately.

          Notwithstanding any other provision of this Indenture, the sole remedy for an Event of Default
relating to the failure to comply with the reporting obligations described under Section 4.03, and
for any failure to comply with the requirements of Section 314(a) of the TIA, will for the 365 days
after the occurrence of such an Event of Default consist exclusively of the right to receive
Additional Interest on the principal amount of the Notes of such series at a rate equal to 0.50%
per annum. This Additional Interest will be payable in the same manner and subject to the same
terms as other interest payable under this Indenture. The Additional Interest will accrue on all
outstanding Notes of such series from and including the date on which an Event of Default relating
to a failure to comply with the reporting obligations described under Section 4.03 or Section
314(a) of the TIA first occurs to but not excluding the 365th day thereafter (or such earlier date
on which the Event of Default relating to the reporting obligations described under Section 4.03 or
Section 314(a) of the TIA shall have been cured or waived). On such 365th day (or earlier, if the
Event of Default relating to such reporting obligations is cured or waived

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prior to such 365th day), such Additional Interest will cease to accrue and the Notes of such
series will be subject to the other remedies as provided under this Section 6.02 if the Event of
Default is continuing. For the avoidance of doubt, the provisions of this paragraph will not
affect the rights of Holders of Notes of such series in the event of the occurrence of any other
Event of Default.

          The Holders of a majority in aggregate principal amount of the then outstanding Notes of such
series by written notice to the Trustee may, on behalf of all of the Holders of the Notes of such
series, rescind an acceleration and its consequences, if the rescission would not conflict with any
judgment or decree and if all existing Events of Default (except nonpayment of principal, interest
or premium or Additional Interest, if any, that has become due solely because of the acceleration)
have been cured or waived.

Section 6.03 Other Remedies.

          If an Event of Default with respect to the Notes of a series occurs and is continuing, the
Trustee may pursue any available remedy to collect the payment of principal, premium and Additional
Interest, if any, and interest on the Notes of such series or to enforce the performance of any
provision of the Notes of such series or this Indenture.

          The Trustee may maintain a proceeding even if it does not possess any of the Notes of such
series or does not produce any of them in the proceeding. A delay or omission by the Trustee or
any Holder of a Note of such series in exercising any right or remedy accruing upon an Event of
Default shall not impair the right or remedy or constitute a waiver of or acquiescence in the Event
of Default. All remedies are cumulative to the extent permitted by law.

Section 6.04 Waiver of Past Defaults.

          The Holders of a majority in aggregate principal amount of the Notes of any series then
outstanding by notice to the Trustee may on behalf of the Holders of all of the Notes of such
series waive any existing Default or Event of Default with respect to the Notes of such series and
its consequences under this Indenture except a continuing Default or Event of Default in the
payment of principal of, premium, if any, or interest, on the Notes of such series or the
Guaranties of any series (including in connection with an offer to purchase) (provided, however,
that the Holders of a majority in aggregate principal amount of the then outstanding Notes of such
series may rescind an acceleration and its consequences, including any related payment default that
resulted solely from such acceleration). The waiver by the holders of any Indebtedness described
in clause (4) of Section 6.01 of the predicating default under such Indebtedness shall be deemed a
waiver of such Default or Event of Default arising under, and a rescission of any acceleration
resulting from the application of clause (4), from the effective date, during the effective period
and to the extent of, the waiver by the holders of such other Indebtedness. Upon any waiver
granted or deemed granted in accordance with the terms hereof, such Default shall cease to exist,
and any Event of Default arising therefrom shall be deemed to have been cured and waived 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 6.05 Control by Majority.

          Holders of a majority in aggregate principal amount of the then outstanding Notes of any
series may direct the time, method and place of conducting any proceeding for exercising any remedy
available to the Trustee or exercising any trust or power conferred on it with respect to the Notes
of such series. However, the Trustee may refuse to follow any direction

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that conflicts with law or this Indenture that the Trustee determines may be unduly
prejudicial to the rights of other Holders of such series of Notes or that may involve the Trustee
in personal liability.

Section 6.06 Limitation on Suits.

          A Holder of any series of Notes may pursue a remedy with respect to this Indenture or the
Notes only if:

     (1) such Holder gives to the Trustee written notice that an Event of Default is
continuing;

     (2) Holders of at least 25% in aggregate principal amount of the then outstanding
Notes of such series make a written request to the Trustee to pursue the remedy;

     (3) such Holder or Holders offer and, if requested, provide to the Trustee security or
indemnity reasonably satisfactory to the Trustee against any loss, liability or expense;

     (4) the Trustee does not comply with the request within 60 days after receipt of the
request and the offer of security or indemnity; and

     (5) during such 60-day period, Holders of a majority in aggregate principal amount of
the then outstanding Notes of such series do not give the Trustee a direction inconsistent
with such request.

          A Holder of any series of Notes may not use this Indenture to prejudice the rights of another
Holder of such series of Notes or to obtain a preference or priority over another Holder of Notes
of such series.

Section 6.07 Rights of Holders of Notes to Receive Payment.

          Notwithstanding any other provision of this Indenture, the right of any Holder of a Note to
receive payment of principal, premium and Additional Interest, if any, and interest on such Note,
on or after the respective due dates expressed in such Note (including in connection with an offer
to purchase), or to bring suit for the enforcement of any such payment on or after such respective
dates, shall not be impaired or affected without the consent of such Holder.

Section 6.08 Collection Suit by Trustee.

          If an Event of Default specified in Section 6.01(1) or (2) hereof occurs and is continuing,
the Trustee is authorized to recover judgment in its own name and as trustee of an express trust
against the Company for the whole amount of principal of, premium and Additional Interest, if any,
and interest remaining unpaid on, the Notes of all series as to which such Event of Default has
occurred and is continuing and interest on overdue principal and, to the extent lawful, interest
and 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.

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Section 6.09 Trustee May File Proofs of Claim.

          The Trustee for each series of Notes is authorized to file such proofs of claim and 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 the Holders of the Notes allowed in any judicial proceedings
relative to the Company (or any other obligor upon the Notes), its creditors or its property and
shall be entitled and empowered to collect, receive and distribute any money or other property
payable or deliverable on any such claims and any custodian 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 to 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 7.07 hereof.
To the extent that the payment of any such compensation, expenses, disbursements and advances of
the Trustee, its agents and counsel, and any other amounts due the Trustee under Section 7.07
hereof out of the estate in any such proceeding, shall be denied for any reason, payment of the
same shall be secured by a Lien on, and shall be paid out of, any and all distributions, dividends,
money, securities and other properties that the Holders may be entitled to receive in such
proceeding whether in liquidation or under any plan of reorganization or arrangement or otherwise.
Nothing herein contained 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 Notes or the rights of any Holder, or to authorize the Trustee to vote in
respect of the claim of any Holder in any such proceeding.

Section 6.10 Priorities.

          If the Trustee collects any money pursuant to this Article 6, it shall pay out the money in
the following order:

          First: to the Trustee, its agents and attorneys for amounts due under Section 7.07 hereof,
including payment of all compensation, expenses and liabilities incurred, and all advances made, by
the Trustee and the costs and expenses of collection;

          Second: to Holders of Notes in respect of which or for the benefit of which such money has
been collected for amounts due and unpaid on the Notes for principal, premium and Additional
Interest, if any, and interest, ratably, without preference or priority of any kind, according to
the amounts due and payable on the applicable Notes for principal, premium and Additional Interest,
if any and interest, respectively; and

          Third: to the Company or to such party as a court of competent jurisdiction shall direct.

          The Trustee may fix a record date and payment date for any payment to Holders of Notes
pursuant to this Section 6.10.

Section 6.11 Undertaking for Costs.

          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 a Trustee, a court in its discretion
may require the filing by any party litigant in the suit of an undertaking to pay the costs

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of the suit, and the court in its discretion may assess reasonable costs, including reasonable
attorneys’ fees and expenses, against any party litigant in the suit, having due regard to the
merits and good faith of the claims or defenses made by the party litigant. This Section 6.11 does
not apply to a suit by the Trustee, a suit by a Holder of a Note pursuant to Section 6.07 hereof,
or a suit by Holders of more than 10% in aggregate principal amount of the then outstanding Notes
of any series.

Section 6.12 Remedies Subject to Applicable Law.

          All rights, remedies and powers provided by this Article 6 may be exercised only to the extent
that the exercise thereof does not violate any applicable provision of law, and all the provisions
of this Indenture are intended to be subject to all applicable laws, including applicable Gaming
Laws, and to be limited to the extent necessary so that they will not render this Indenture
invalid, unenforceable or not entitled to be recorded, registered or filed under the provisions of
any applicable law.

Section 6.13 Disqualified Holders.

     To the extent required by applicable Gaming Laws, Notes held by a Disqualified Holder shall,
so long as held by such Person, be disregarded for purposes of providing notices, directions,
waivers or other actions and determining the sufficiency of such notices, directions, waivers or
actions under this Article 6.

ARTICLE 7

TRUSTEE

Section 7.01 Duties of Trustee.

     (a) If an Event of Default with respect to Notes of any series has occurred and is continuing,
the Trustee will, with respect to such Notes, exercise such of 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.

     (b) Except during the continuance of an Event of Default with respect to Notes of any series:

     (1) the duties of the Trustee will be determined solely by the express provisions of
this Indenture and the Trustee need perform only those duties that are specifically set
forth in this Indenture and no others, and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

     (2) 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
certificates or opinions furnished to the Trustee and conforming to the requirements of
this Indenture. However, in the case of certificates or opinions specifically required by
any provision hereof to be furnished to it, the Trustee will examine the certificates and
opinions to determine whether or not they conform to the requirements of this Indenture

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(but need not confirm or investigate the accuracy of mathematical calculations or
other facts stated therein).

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

     (1) this paragraph does not limit the effect of paragraph (b) of this Section 7.01;

     (2) the Trustee will 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; and

     (3) the Trustee will not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 6.05
hereof.

     (d) Whether or not therein expressly so provided, every provision of this Indenture that in
any way relates to the Trustee is subject to paragraphs (a), (b), and of this Section 7.01.

     (e) No provision of this Indenture will require the Trustee to expend or risk its own funds or
incur any liability. The Trustee will be under no obligation to exercise any of its rights and
powers under this Indenture at the request of any Holders, unless such Holder has offered to the
Trustee security and indemnity satisfactory to it against any loss, liability or expense.

     (f) The Trustee will not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Company. Money held in trust by the Trustee need not be
segregated from other funds except to the extent required by law.

     (g) The Trustee shall reasonably cooperate with any Gaming Authority of any jurisdiction in
which the Company or any of its Subsidiaries conducts or proposes to conduct gaming and shall
produce any document or information as any of them may reasonably request.

Section 7.02 Rights of Trustee.

     (a) The Trustee may conclusively rely upon any document (whether in original or facsimile
form) believed by it to be genuine and to have been signed or presented by the proper Person. The
Trustee need not investigate any fact or matter stated in the document.

     (b) Before the Trustee acts or refrains from acting, it may require an Officers’ Certificate
or an Opinion of Counsel or both. The Trustee will not be liable for any action it takes or omits
to take in good faith in reliance on such Officers’ Certificate or Opinion of Counsel. The Trustee
may consult with counsel of its own selection and the advice of such counsel or any Opinion of
Counsel will be full and complete authorization and protection from liability in respect of any
action taken, suffered or omitted by it hereunder in good faith and in reliance thereon.

     (c) The Trustee may act through its attorneys and agents and will not be responsible for the
misconduct or negligence of any agent appointed with due care.

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     (d) The Trustee will not be liable for any action it takes or omits to take in good faith that
it believes to be authorized or within the rights or powers conferred upon it by this Indenture.

     (e) Unless otherwise specifically provided in this Indenture, any demand, request, direction
or notice from the Company will be sufficient if signed by an Officer of the Company.

     (f) The Trustee will be under no obligation to exercise any of the rights or powers vested in
it by this Indenture at the request or direction of any of the Holders unless such Holders have
offered to the Trustee indemnity or security reasonably satisfactory to it against the losses,
liabilities and expenses that might be incurred by it in compliance with such request or direction.

     (g) In no event shall the Trustee be responsible or liable for special, indirect, or
consequential loss or damage of any kind whatsoever (including, but not limited to, loss of profit)
irrespective of whether the Trustee has been advised of the likelihood of such loss or damage and
regardless of the form of action.

     (h) The Trustee shall not be deemed to have notice of any Default or Event of Default unless a
Responsible Officer of the Trustee has actual knowledge thereof or unless written notice of any
event which is in fact such a Default is received by the Trustee at the Corporate Trust Office of
the Trustee, and such notice references the Notes and this Indenture.

     (i) The rights, privileges, protections, immunities and benefits given to the Trustee,
including, without limitation, its right to be indemnified, are extended to, and shall be
enforceable by, the Trustee in each of its capacities hereunder, and each agent, custodian and
other Person employed to act hereunder.

     (j) The Trustee may request that the Company deliver an Officers’ Certificate setting forth
the names of individuals and/or titles of officers authorized at such time to take specified
actions pursuant to this Indenture, which Officers’ Certificate may be signed by any person
authorized to sign an Officers’ Certificate, including any person specified as so authorized in any
such certificate previously delivered and not superseded.

Section 7.03 Individual Rights of Trustee.

          The Trustee in its individual or any other capacity may become the owner or pledgee of Notes
and may otherwise deal with the Company or any Affiliate of the Company with the same rights it
would have if it were not Trustee. However, in the event that the Trustee acquires any conflicting
interest it must eliminate such conflict within 90 days, apply to the SEC for permission to
continue as trustee (if this Indenture has been qualified under the TIA) or resign. Any Agent may
do the same with like rights and duties. The Trustee is also subject to Sections 7.10 and 7.11
hereof.

Section 7.04 Trustee’s Disclaimer.

          The Trustee will not be responsible for and makes no representation as to the validity or
adequacy of this Indenture or the Notes, it shall not be accountable for the Company’s use of the
proceeds from the Notes or any money paid to the Company or upon the Company’s direction under any
provision of this Indenture, it will not be responsible for the use or application of any money
received by any Paying Agent other than the Trustee, and it will not be responsible for any
statement or recital herein or any statement in the Notes or any other

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document in connection with the sale of the Notes or pursuant to this Indenture other than its
certificate of authentication.

Section 7.05 Notice of Defaults.

          If a Default or Event of Default occurs and is continuing and if it is known to the Trustee,
the Trustee will mail to Holders of Notes of all applicable series a notice of the Default or Event
of Default within 90 days after it occurs. Except in the case of a Default or Event of Default in
payment of principal of, premium or Additional Interest, if any, or interest on, any Note, the
Trustee may withhold the notice if and so long as a committee of its Responsible Officers in good
faith determines that withholding the notice is in the interests of the Holders of the Notes of
such series.

Section 7.06 Reports by Trustee to Holders of the Notes.

     (a) Within 60 days after each May 15 beginning with the May 15 following the date of this
Indenture, and for so long as Notes remain outstanding, the Trustee will mail to the Holders of the
Notes a brief report dated as of such reporting date that complies with TIA § 313(a) (but if no
event described in TIA § 313(a) has occurred within the twelve months preceding the reporting date,
no report need be transmitted). The Trustee also will comply with TIA § 313(b). The Trustee will
also transmit by mail all reports as required by TIA § 313(c).

     (b) A copy of each report at the time of its mailing to the Holders of Notes will be mailed by
the Trustee to the Company and filed by the Trustee with the SEC and each stock exchange on which
the Notes are listed in accordance with TIA § 313(d). The Company will promptly notify the Trustee
when the Notes of any series are listed on any stock exchange or delisted therefrom.

Section 7.07 Compensation and Indemnity.

     (a) The Company will pay to the Trustee from time to time reasonable compensation for its
acceptance of this Indenture and services hereunder. The Trustee’s compensation will not be
limited by any law on compensation of a trustee of an express trust. The Company will reimburse
the Trustee promptly upon request for all reasonable disbursements, advances and expenses incurred
or made by it in addition to the compensation for its services. Such expenses will include the
reasonable compensation, disbursements and expenses of the Trustee’s agents and counsel.

     (b) The Company and the Guarantors, jointly and severally, will indemnify the Trustee against
any and all losses, claims, damages, liabilities or expenses incurred by it arising out of or in
connection with the acceptance or administration of its duties under this Indenture, including the
costs and expenses of enforcing this Indenture against the Company and the Guarantors (including
this Section 7.07) and defending itself against any claim (whether asserted by the Company, the
Guarantors, any Holder or any other Person) or liability in connection with the exercise or
performance of any of its powers or duties hereunder, except to the extent any such loss, liability
or expense may be determined to have been caused by its negligence or bad faith. The Trustee will
notify the Company promptly of any claim for which it may seek indemnity. Failure by the Trustee
to so notify the Company will not relieve the Company or any of the Guarantors of their obligations
hereunder. The Company or such Guarantor will defend the claim and the Trustee will cooperate in
the defense. The Trustee may have separate counsel and the Company will pay the reasonable fees
and expenses of such counsel. Neither the Company

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nor any Guarantor need pay for any settlement made without its consent, which consent will not
be unreasonably withheld.

     (c) The obligations of the Company and the Guarantors under this Section 7.07 will survive the
satisfaction and discharge of this Indenture.

     (d) To secure the Company’s and the Guarantors’ payment obligations in this Section 7.07, the
Trustee will have a Lien prior to the Notes on all money or property held or collected by the
Trustee, except that held in trust to pay principal and interest on particular Notes or particular
series of Notes. Such Lien will survive the satisfaction and discharge of this Indenture.

     (e) When the Trustee incurs expenses or renders services after an Event of Default specified
in Section 6.01(6) or (7) hereof occurs, the expenses and the compensation for the services
(including the fees and expenses of its agents and counsel) are intended to constitute expenses of
administration under any Bankruptcy Law.

     (f) The Trustee will comply with the provisions of TIA § 313(b)(2) to the extent applicable.

Section 7.08 Replacement of Trustee.

     (a) A resignation or removal of the Trustee and appointment of a successor Trustee will become
effective only upon the successor Trustee’s acceptance of appointment as provided in this Section
7.08.

     (b) The Trustee may resign in writing at any time and be discharged from the trust hereby
created by so notifying the Company. The Holders of a majority in aggregate principal amount of
the then outstanding Notes of any series may remove the Trustee as to such series of Notes by so
notifying the Trustee and the Company in writing. The Company may remove the Trustee if:

     (1) the Trustee fails to comply with Section 7.10 hereof;

     (2) the Trustee is adjudged a bankrupt or an insolvent or an order for relief is
entered with respect to the Trustee under any Bankruptcy Law;

     (3) a custodian or public officer takes charge of the Trustee or its property; or

     (4) the Trustee becomes incapable of acting.

     (c) If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for
any reason, the Company will promptly appoint a successor Trustee. Within one year after the
successor Trustee takes office, the Holders of a majority in aggregate principal amount of the then
outstanding Notes of any series may appoint a successor Trustee for such series of Notes to replace
the successor Trustee for such series of Notes appointed by the Company.

     (d) If a successor Trustee does not take office within 60 days after the retiring Trustee
resigns or is removed, the retiring Trustee, the Company, or the Holders of at least 10% in
aggregate principal amount of the then outstanding Notes of any series may petition any court

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of competent jurisdiction for the appointment of a successor Trustee for such series of Notes
at the expense of the Company.

     (e) If the Trustee, after written request by any Holder who has been a Holder for at least six
months, fails to comply with Section 7.10 hereof, such Holder may petition any court of competent
jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

     (f) A successor Trustee will deliver a written acceptance of its appointment to the retiring
Trustee and to the Company. Thereupon, the resignation or removal of the retiring Trustee will
become effective, and the successor Trustee will have all the rights, powers and duties of the
Trustee under this Indenture. The successor Trustee will mail a notice of its succession to
Holders. The retiring Trustee will promptly transfer all property held by it as Trustee to the
successor Trustee; provided all sums owing to the Trustee hereunder have been paid and subject to
the Lien provided for in Section 7.07 hereof. Notwithstanding replacement of the Trustee pursuant
to this Section 7.08, the Company’s obligations under Section 7.07 hereof will continue for the
benefit of the retiring Trustee.

Section 7.09 Successor Trustee by Merger, etc.

          If the Trustee consolidates, merges or converts into, or transfers all or substantially all of
its corporate trust business to, another corporation, the successor corporation without any further
act will be the successor Trustee.

Section 7.10 Eligibility; Disqualification.

          There will at all times be a Trustee hereunder that is a corporation organized and doing
business under the laws of the United States of America or of any state thereof that is authorized
under such laws to exercise corporate trustee power, that is subject to supervision or examination
by federal or state authorities and that has a combined capital and surplus of at least $100.0
million as set forth in its most recent published annual report of condition.

          This Indenture will always have a Trustee who satisfies the requirements of TIA § 310(a)(1),
(2) and (5). The Trustee is subject to TIA § 310(b).

Section 7.11 Preferential Collection of Claims Against Company.

          The Trustee is subject to TIA § 311(a), excluding any creditor relationship listed in TIA §
311(b). A Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated therein.

ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE

Section 8.01 Option to Effect Legal Defeasance or Covenant Defeasance.

          The Company may at any time, at the option of its Board evidenced by a resolution set forth in
an Officers’ Certificate, elect to have either Section 8.02 or 8.03 hereof be applied to all
outstanding Notes or any series of Notes upon compliance with the conditions set forth below in
this Article 8.

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Section 8.02 Legal Defeasance and Discharge.

          Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.02, the Company and each of the Guarantors will, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be deemed to have been discharged from their obligations with
respect to all outstanding Notes (including the Guaranties) of such series on the date the
conditions set forth below are satisfied (hereinafter, “Legal Defeasance”). For this purpose,
Legal Defeasance means that the Company and the Guarantors will be deemed to have paid and
discharged the entire Indebtedness represented by the outstanding Notes (including the Guaranties)
of such series, which will thereafter be deemed to be “outstanding” only for the purposes of
Section 8.05 hereof and the other Sections of this Indenture referred to in clauses (1) and (2)
below, and to have satisfied all their other obligations under such Notes of such series, the
Guaranties thereof and this Indenture (and the Trustee, on demand of and at the expense of the
Company, shall execute proper instruments acknowledging the same) with respect to such series,
except for the following provisions which will survive until otherwise terminated or discharged
hereunder:

     (1) the rights of Holders of outstanding Notes of such series to receive payments in
respect of the principal of, or interest or premium and Additional Interest, if any, on,
such Notes when such payments are due from the trust referred to in Section 8.04 hereof;

     (2) the Company’s obligations with respect to such Notes under Article 2 and Section
4.02 hereof;

     (3) the rights, powers, trusts, duties and immunities of the Trustee hereunder and the
Company’s obligations in connection therewith; and

     (4) this Article 8.

     Subject to compliance with this Article 8, the Company may exercise its option under this
Section 8.02 notwithstanding the prior exercise of its option under Section 8.03 hereof.

Section 8.03 Covenant Defeasance.

          Upon the Company’s exercise under Section 8.01 hereof of the option applicable to this Section
8.03, the Company and each of the Guarantors will, subject to the satisfaction of the conditions
set forth in Section 8.04 hereof, be released from each of their obligations under the covenants
contained in Sections 4.03, 4.04, and 4.05 hereof and clause (3) of Section 5.01 hereof with
respect to the outstanding Notes of the applicable series (and with any additional specified terms,
provisions or conditions set forth in any Board Resolution, Officers’ Certificate or supplemental
indenture that establishes or amends the terms of the Notes of any series) on and after the date
the conditions set forth in Section 8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”),
and the Notes of such series will thereafter be deemed not “outstanding” for the purposes of any
direction, waiver, consent or declaration or act of Holders of Notes of such series (and the
consequences of any thereof) in connection with such covenants, but will continue to be deemed
“outstanding” for all other purposes hereunder (it being understood that such Notes will not be
deemed outstanding for accounting purposes). For this purpose, Covenant Defeasance means that,
with respect to the outstanding Notes and Guaranties of such series, the Company and the Guarantors
may omit to comply with and will have no liability in respect of any term, condition or limitation
set forth in any such covenant, whether directly or indirectly, by reason of

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any reference elsewhere herein to any such covenant or by reason of any reference in any such
covenant to any other provision herein or in any other document and such omission to comply will
not constitute a Default or an Event of Default under Section 6.01 hereof, but, except as specified
above, the remainder of this Indenture and such Notes and Guaranties will be unaffected thereby.
In addition, upon the Company’s exercise under Section 8.01 hereof of the option applicable to this
Section 8.03, subject to the satisfaction of the conditions set forth in Section 8.04 hereof,
Sections 6.01(3) through 6.01(5) hereof will not constitute Events of Default with respect to such
series of Notes.

Section 8.04 Conditions to Legal or Covenant Defeasance.

          In order to exercise either Legal Defeasance or Covenant Defeasance under either Section 8.02
or 8.03 hereof with respect to any outstanding series of Notes:

     (1) the Company must irrevocably deposit with the Trustee, in trust, for the benefit
of the Holders of Notes of such series, cash in U.S. dollars, non-callable Government
Securities, or a combination thereof, in such amounts as will be sufficient, in the opinion
of a nationally recognized firm of independent public accountants, to pay the principal of,
premium, if any, and interest and Additional Interest, if any, on the outstanding Notes of
such series on the stated maturity or on the applicable redemption date, as the case may
be, and the Company must specify whether the Notes of such series are being defeased to
maturity or to a particular redemption date;

     (2) in the case of an election under Section 8.02 hereof, the Company shall have
delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee
confirming that:

     (A) the Company has received from, or there has been published by, the
Internal Revenue Service a ruling, or

     (B) since the date 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 the outstanding Notes of such series will not
recognize income, gain or loss for federal income tax purposes as a result of such
Legal 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 Legal
Defeasance had not occurred;

     (3) in the case of an election under Section 8.03 hereof, the Company shall have
delivered to the Trustee an Opinion of Counsel reasonably acceptable to the Trustee
confirming that the Holders of the outstanding Notes of such series will not recognize
income, gain or loss for federal income tax purposes as a result of such Covenant
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 Covenant Defeasance had
not occurred;

     (4) no Default or Event of Default with respect to such series of Notes shall have
occurred and be continuing either:

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     (A) on the date of such deposit (other than a Default or Event of Default
resulting from transactions occurring contemporaneously with the borrowing of
funds, or the borrowing of funds, to be applied to such deposit); or

     (B) insofar as the occurrence of Events of Default resulting from bankruptcy
or insolvency events are concerned, at any time in the period ending on the 91st
day after the date of deposit (in which case such defeasance shall have been
effective on the date of deposit until the time of such occurrence and, upon such
occurrence, shall immediately cease to be effective);

     (5) such Legal Defeasance or Covenant Defeasance will not result in a breach or
violation of, or constitute a default under any material agreement or instrument (other
than this Indenture) to which the Company or any of the Guarantors is a party or by which
the Company or any of the Guarantors is bound;

     (6) the Company must deliver to the Trustee an Officers’ Certificate stating that the
deposit was not made by the Company with the intent of preferring the Holders of Notes of
such series over the other creditors of the Company with the intent of defeating,
hindering, delaying or defrauding creditors of the Company or others; and

     (7) the Company must deliver to the Trustee an Officers’ Certificate and an Opinion of
Counsel, each stating that all conditions precedent relating to the Legal Defeasance or the
Covenant Defeasance have been complied with.

Section 8.05 Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous
Provisions.

          Subject to Section 8.06 hereof, all money and non-callable Government Securities (including
the proceeds thereof) deposited with the Trustee (or other qualifying trustee, collectively for
purposes of this Section 8.05, the “Trustee”) pursuant to Section 8.04 hereof in respect of the
outstanding Notes of any series will be held in trust and applied by the Trustee, in accordance
with the provisions of such Notes and this Indenture, to the payment, either directly or through
any Paying Agent (including any Obligor acting as Paying Agent) as the Trustee may determine, to
the Holders of such Notes of all sums due and to become due thereon in respect of principal,
premium and Additional Interest, if any, and interest, but such money need not be segregated from
other funds except to the extent required by law.

          The Company will pay and indemnify the Trustee against any tax, fee or other charge imposed on
or assessed against the cash or non-callable Government Securities deposited pursuant to Section
8.04 hereof or the principal and interest received in respect thereof other than any such tax, fee
or other charge which by law is for the account of the Holders of the outstanding Notes of such
series.

          Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to
the Company from time to time upon the request of the Company any money or non-callable Government
Securities held by it as provided in Section 8.04 hereof which, in the opinion of a nationally
recognized firm of independent public accountants expressed in a written certification thereof
delivered to the Trustee (which may be the opinion delivered under Section 8.04(1) hereof), are in
excess of the amount thereof that would then be required to be deposited to effect an equivalent
Legal Defeasance or Covenant Defeasance.

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Section 8.06 Repayment to Company.

          Any money deposited with the Trustee or any Paying Agent, or then held by the Company, in
trust for the payment of the principal of, premium or Additional Interest, if any, or interest on,
any Note and remaining unclaimed for two years after such principal, premium or Additional
Interest, if any, or interest has become due and payable shall be paid to the Company on its
request or (if then held by the Company) will be discharged from such trust; and the Holder of such
Note will thereafter be permitted to look only to the Company for payment thereof, and all
liability of the Trustee or such Paying Agent with respect to such trust money, and all liability
of the Company as trustee thereof, will 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
Company cause to be published once, in the New York Times and The Wall Street Journal (national
edition), notice that such money remains unclaimed and that, after a date specified therein, which
will not be less than 30 days from the date of such notification or publication, any unclaimed
balance of such money then remaining will be repaid to the Company.

Section 8.07 Reinstatement.

          If the Trustee or Paying Agent is unable to apply any U.S. dollars or non-callable Government
Securities in accordance with Section 8.02 or 8.03 hereof, as the case may be, by reason of any
order or judgment of any court or governmental authority enjoining, restraining or otherwise
prohibiting such application, then the Company’s and the Guarantors’ obligations under this
Indenture and the applicable Notes and the Guaranties will be revived and reinstated as though no
deposit had occurred pursuant to Section 8.02 or 8.03 hereof until such time as the Trustee or
Paying Agent is permitted to apply all such money in accordance with Section 8.02 or 8.03 hereof,
as the case may be; provided, however, that, if the Company makes any payment of principal of,
premium or Additional Interest, if any, or interest on, any such Note following the reinstatement
of its obligations, the Company will be subrogated to the rights of the Holders of such Notes to
receive such payment from the money held by the Trustee or Paying Agent.

ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER

Section 9.01 Without Consent of Holders of Notes.

          Notwithstanding Section 9.02 of this Indenture, the Obligors and the Trustee may amend or
supplement this Indenture or the Notes or the Guaranties of one or more series without the consent
of any Holder of Notes:

     (1) to cure any ambiguity, defect or inconsistency;

     (2) to provide for uncertificated Notes in addition to or in place of certificated
Notes;

     (3) to provide for the assumption of the Company’s or a Guarantor’s obligations to the
Holders of the Notes and Guaranties of any series by a successor to the Company or such
Guarantor pursuant to Article 5 or Article 10 hereof;

     (4) to make any change that would provide any additional rights or benefits to the
Holders of all or any series of Notes (and if such additional rights or benefits are for
the benefit of less than all series of Notes, stating that such additional rights or

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benefits are expressly being included solely for the benefit of such series) or that
does not adversely affect the legal rights hereunder of any Holder;

     (5) to comply with requirements of the SEC in order to effect or maintain the
qualification of this Indenture under the TIA;

     (6) to comply with requirements of applicable Gaming Laws or to provide for
requirements imposed by applicable Gaming Authorities;

     (7) to conform the text of this Indenture or the Notes of any series or the Guaranties
of such series to any provision of the “Description of Notes” section of any prospectus or
prospectus supplement or other offering document or similarly named section thereof,
relating to the initial offering of such series of Notes, to the extent that such provision
in that “Description of Notes” section of any prospectus or prospectus supplement or other
offering document or similarly named section thereof was intended to be a verbatim
recitation of a provision of this Indenture, the Notes of such series or the Guaranties of
such series;

     (8) to provide for the issuance of Additional Notes of any series of Notes (including
any additional or different restrictions on transfer or exchange of such Additional Notes,
including without limitation those that would be appropriate if the Additional Notes were
issued in a transaction exempt from registration under the Securities Act) in accordance
with the limitations set forth in this Indenture prior to such issuance of Additional
Notes;

     (9) to allow any Guarantor to execute a supplemental indenture and/or a Notation of
Guaranty with respect to any series of Notes and to release Guaranties when permitted by
the terms of this Indenture;

     (10) to secure the Notes of any series;

     (11) to add to the covenants of the Company and/or the Guarantors for the benefit of
the Holders of all or any series of Notes (and if such covenants are to be for the benefit
of less than all series of Notes, stating that such covenants are expressly being included
solely for the benefit of such series) or to surrender any right or power conferred upon
the Company and/or the Guarantors;

     (12) to establish the form or terms of Notes of any series as permitted by this
Indenture;

     (13) to evidence and provide for the acceptance of appointment hereunder by a
successor Trustee with respect to the Notes 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; or

     (14) to add to, change or eliminate any of the provisions of this Indenture in respect
of one or more series of Notes, provided that any such addition, change or elimination (i)
shall neither (A) apply to any Note of any series created prior to the execution of such
supplemental indenture and entitled to the benefit of such provision nor (B) modify the
rights of the Holder of any such Note with respect to such provision or (ii) shall become
effective only when there is no Note described in clause (i) outstanding.

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          Upon the request of the Company accompanied by a resolution of its Board authorizing the
execution of any such amended or supplemental indenture, and upon receipt by the Trustee of the
documents described in Section 7.02 hereof, the Trustee will join with the Company and the
Guarantors in the execution of any amended or supplemental indenture authorized or permitted by the
terms of this Indenture and to make any further appropriate agreements and stipulations that may be
therein contained, but the Trustee will not be obligated to enter into such amended or supplemental
indenture that affects its own rights, duties or immunities under this Indenture or otherwise.

Section 9.02 With Consent of Holders of Notes.

          Except as provided below in this Section 9.02, the Company and the Trustee may amend or
supplement this Indenture (including, without limitation, any provisions relating to any mandatory
offer by the Company to purchase or repurchase any Notes and the defined terms used therein) and
the Notes and the Guaranties, with respect to a particular series of Notes affected by such
amendment or supplement, with the consent of the Holders of at least a majority in aggregate
principal amount then outstanding of such series of the Notes (including, without limitation,
Additional Notes, if any) voting as a separate class (including, without limitation, consents
obtained in connection with a tender offer or exchange offer for, or purchase of, such series of
Notes), and, subject to Sections 6.04 and 6.07 hereof, any existing Default or Event of Default
(other than a Default or Event of Default in the payment of the principal of, premium or Additional
Interest, if any, or interest on, a series of Notes, except a payment default resulting from an
acceleration that has been rescinded) or compliance with any provision of this Indenture or the
Notes or the Guaranties may be waived with respect to a particular series of Notes with the consent
of the Holders of a majority in aggregate principal amount of the then outstanding Notes of such
series (including, without limitation, Additional Notes, if any) voting as a separate class
(including, without limitation, consents obtained in connection with a tender offer or exchange
offer for, or purchase of, such series of Notes). Without the consent of at least 66-2/3% in
aggregate principal amount then outstanding of a particular series of Notes affected by such waiver
or amendment voting as a separate class (including consents obtained in connection with a tender
offer or exchange offer for, or purchase of, such series of Notes), no waiver or amendment to this
Indenture may make any in the provisions Article 10 hereof that releases any Guarantor from its
obligations under any Guaranty of such series that adversely affects the rights of any Holder of
Notes of such series. Section 2.08 hereof shall determine which Notes are considered to be
“outstanding” for purposes of this Section 9.02.

          Upon the request of the Company accompanied by a resolution of its Board authorizing the
execution of any such amended or supplemental indenture, and upon the filing with the Trustee of
evidence satisfactory to the Trustee of the consent of the appropriate Holders as aforesaid, and
upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee will
join with the Company and the Guarantors in the execution of such amended or supplemental indenture
unless such amended or supplemental indenture directly affects the Trustee’s own rights, duties or
immunities under this Indenture or otherwise, in which case the Trustee may in its discretion, but
will not be obligated to, enter into such amended or supplemental Indenture.

          It is not be necessary for the consent of the Holders of Notes under this Section 9.02 to
approve the particular form of any proposed amendment, supplement or waiver, but it is sufficient
if such consent approves the substance thereof.

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          After an amendment, supplement or waiver under this Section 9.02 becomes effective, the
Company will mail to the Holders of Notes affected thereby a notice briefly describing the
amendment, supplement or waiver. Any failure of the Company to mail such notice, or any defect
therein, will not, however, in any way impair or affect the validity of any such amended or
supplemental indenture or waiver.

          However, without the consent of each Holder affected, an amendment, supplement or waiver under
this Section 9.02 may not (with respect to any Notes held by a non-consenting Holder):

     (1) reduce the principal amount of Notes of any series whose Holders must consent to
an amendment, supplement or waiver,

     (2) reduce the principal of or change the fixed maturity of any Note or alter the
provisions with respect to the redemption of any series of Notes; provided, however, that
any provision providing for the mandatory offer by the Company to purchase or repurchase of
Notes (and any related provision) shall not be deemed a provision with respect to the
redemption of the Notes,

     (3) reduce the rate of or change the time for payment of interest on any Note,
including default interest,

     (4) waive a Default or Event of Default in the payment of principal of or premium, if
any, or interest or Additional Interest, if any, on any series of Notes (except a
rescission of acceleration of the Notes of such series by the Holders of at least a
majority in aggregate principal amount of the then outstanding Notes of such series and a
waiver of the payment default that resulted from such acceleration),

     (5) make any Note payable in money other than that stated in the Notes,

     (6) make any change in the provisions of this Indenture relating to waivers of past
Defaults or the rights of Holders of Notes to receive payments of principal of or premium,
if any, or interest or Additional Interest, if any, on the Notes,

     (7) waive a redemption payment with respect to any Note; provided, however, that any
purchase or repurchase of Notes by the Company pursuant to a mandatory offer to purchase or
repurchase by the Company shall not be deemed a redemption of a Note, or

     (8) make any change in the foregoing amendment and waiver provisions.

          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 Notes, or which modifies the rights of the Holders of Notes 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 Notes of any other series. A supplemental indenture which changes or eliminates any
covenant or other provision of this Indenture with respect to one or more particular series of
Notes (whether or not such covenant or other provision has expressly been included solely for the
benefit of such series of Notes), or which modifies the rights of the Holders of Notes 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 Notes of any other series.

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Section 9.03 Compliance with Trust Indenture Act.

          Every amendment or supplement to this Indenture or the Notes of one or more series will be set
forth in a amended or supplemental indenture that complies with the TIA as then in effect.

Section 9.04 Revocation and Effect of Consents.

          Until an amendment, supplement or waiver becomes effective, a consent to it by a Holder of a
Note is a continuing consent by the Holder of a Note and every subsequent Holder of a Note or
portion of a Note that evidences the same debt as the consenting Holder’s Note, even if notation of
the consent is not made on any Note. However, any such Holder of a Note or subsequent Holder of a
Note may revoke the consent as to its Note if the Trustee receives written notice of revocation
before the date upon which the requisite consents for the applicable amendment, supplement or
waiver have been obtained. An amendment, supplement or waiver becomes effective in accordance with
its terms and thereafter binds every Holder.

Section 9.05 Notation on or Exchange of Notes.

          The Trustee may place an appropriate notation about an amendment, supplement or waiver on any
Note thereafter authenticated. The Company in exchange for all Notes of a series may issue and the
Trustee shall, upon receipt of an Authentication Order, authenticate new Notes of such series that
reflect the amendment, supplement or waiver.

          Failure to make the appropriate notation or issue a new Note of an affected series will not
affect the validity and effect of such amendment, supplement or waiver.

Section 9.06 Trustee to Sign Amendments, etc.

          The Trustee will sign any amended or supplemental indenture authorized pursuant to this
Article 9 if the amendment or supplement does not adversely affect the rights, duties, liabilities
or immunities of the Trustee. The Company may not sign an amended or supplemental indenture until
the Board of the Company approves it. In executing any amended or supplemental indenture, the
Trustee will be provided with and (subject to Section 7.01 hereof) will be fully protected in
relying upon, in addition to the documents required by Section 12.04 hereof, an Officers’
Certificate and an Opinion of Counsel stating that the execution of such amended or supplemental
indenture is authorized or permitted by this Indenture.

Section 9.07 Reference in Notes to Supplemental Indentures.

          Notes of any series authenticated and delivered after the execution of any supplemental
indenture pursuant this Article and affected thereby may, 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 Company shall so determine, new Notes of any series so modified as to conform,
in the opinion of the Trustee and the Board of Directors, to any such supplemental indenture may be
prepared and executed by the Company and authenticated and delivered by the Trustee in exchange for
outstanding Notes of such series.

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ARTICLE 10

NOTE GUARANTIES

Section 10.01 Guaranty.

          (a) Subject to this Article 10, each of the Guarantors hereby, jointly and severally,
unconditionally guarantees to each Holder of a Note of a particular 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, the Notes of such series or the obligations of the
Company hereunder or thereunder, that:

     (1) the principal of, premium and Additional Interest, if any, and interest on, the
Notes of such series will be promptly paid in full when due, whether at maturity, by
acceleration, redemption or otherwise, and interest on the overdue principal of and
interest on the Notes of such series, if any, if lawful, and all other obligations of the
Company to the Holders or the Trustee hereunder or thereunder will be promptly paid in full
or performed, all in accordance with the terms hereof and thereof; and

     (2) in case of any extension of time of payment or renewal of any Notes of such series
or any of such other obligations, that 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 of any amount so guaranteed or any performance so guaranteed for
whatever reason, the Guarantors will be jointly and severally obligated to pay the same
immediately. Each Guarantor agrees that this is a guarantee of payment and not a guarantee of
collection.

     (b) The Guarantors hereby agree that their obligations hereunder are unconditional,
irrespective of the validity, regularity or enforceability of the Notes of a particular series or
this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder
of the Notes of such series with respect to any provisions hereof or thereof, the recovery of any
judgment against the Company, any action to enforce the same or any other circumstance which might
otherwise constitute a legal or equitable discharge or defense of a guarantor. Each Guarantor
hereby waives diligence, presentment, demand of payment, filing of claims with a court in the event
of insolvency or bankruptcy of the Company, any right to require a proceeding first against the
Company, protest, notice and all demands whatsoever and covenant that this Guaranty will not be
discharged except by complete performance of the obligations contained in the Notes of such series
and this Indenture.

     (c) If any Holder or the Trustee is required by any court or otherwise to return to the
Company, the Guarantors or any custodian, trustee, liquidator or other similar official acting in
relation to either the Company or the Guarantors, any amount paid by either to the Trustee or such
Holder, this Guaranty, to the extent theretofore discharged, will be reinstated in full force and
effect.

     (d) Each Guarantor agrees that it will 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 guaranteed hereby. Each Guarantor further agrees that, as between the Guarantors, on
the one hand, and the Holders and the Trustee, on the other hand, (1) the maturity of the
obligations guaranteed hereby may be accelerated as provided in Article 6 hereof for the purposes

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of this Guaranty, notwithstanding any stay, injunction or other prohibition preventing such
acceleration in respect of the obligations guaranteed hereby, and (2) in the event of any
declaration of acceleration of such obligations as provided in Article 6 hereof, such obligations
(whether or not due and payable) will forthwith become due and payable by the Guarantors for the
purpose of this Guaranty. The Guarantors will have the right to seek contribution from any
non-paying Guarantor so long as the exercise of such right does not impair the rights of the
Holders under the Guaranty.

Section 10.02 Limitation on Guarantor Liability.

          Each Guarantor, and by its acceptance of Notes of a particular series, each Holder of a Notes
of such series, hereby confirms that it is the intention of all such parties that the Guaranty of
such series of such Guarantor not constitute a fraudulent transfer or conveyance for purposes of
Bankruptcy Law, the Uniform Fraudulent Conveyance Act, the Uniform Fraudulent Transfer Act or any
similar federal or state law to the extent applicable to any Guaranty. To effectuate the foregoing
intention, the Trustee, the Holders and the Guarantors hereby irrevocably agree that the
obligations of such Guarantor will be limited to the maximum amount that will, after giving effect
to such maximum amount and all other contingent and fixed liabilities of such Guarantor that are
relevant under such laws, and after giving effect to any collections from, rights to receive
contribution from or payments made by or on behalf of any other Guarantor in respect of the
obligations of such other Guarantor under this Article 10, result in the obligations of such
Guarantor under its Guaranty not constituting a fraudulent transfer or conveyance.

Section 10.03 Execution and Delivery of Guaranty.

          To evidence its Guaranty set forth in Section 10.01 hereof, each Guarantor hereby agrees that
a notation of such Guaranty substantially in the form attached as Exhibit B hereto will be endorsed
by an Officer of such Guarantor on each Note of a particular series authenticated and delivered by
the Trustee and that this Indenture will be executed on behalf of such Guarantor by one of its
Officers.

          Each Guarantor hereby agrees that its Guaranty set forth in Section 10.01 hereof will remain
in full force and effect notwithstanding any failure to endorse on each Note of such series a
notation of such Guaranty.

          If an Officer whose signature is on this Indenture or on the Guaranty no longer holds that
office at the time the Trustee authenticates the Note of such series on which a Guaranty is
endorsed, the Guaranty will be valid nevertheless.

          The delivery of any Note of such series by the Trustee, after the authentication thereof
hereunder, will constitute due delivery of the Guaranty set forth in this Indenture on behalf of
the Guarantors.

Section 10.04 Releases.

          (a) In the event of any sale or other disposition of all or substantially all of the assets of
any Guarantor, by way of merger, consolidation or otherwise, or a sale or other disposition
(including by way of liquidation permitted hereunder) of all of the Capital Stock of any Guarantor,
in each case to a Person that is not (either before or after giving effect to such transactions)
the Company or a Restricted Subsidiary of the Company, then such Guarantor (in the event of a sale
or other disposition, by way of merger, consolidation or otherwise, of all of the

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Capital Stock of such Guarantor) or the Person acquiring the property (in the event of a sale
or other disposition of all or substantially all of the assets of such Guarantor) will be released
and relieved of any obligations under its Guaranty. Upon delivery by the Company to the Trustee of
an Officers’ Certificate and an Opinion of Counsel to the effect that such sale or other
disposition was made by the Company in accordance with the provisions of this Indenture, the
Trustee will execute any documents reasonably required in order to evidence the release of any
Guarantor from its obligations under its Guaranty.

          (b) Upon designation of any Guarantor as an Unrestricted Subsidiary in accordance with the
terms of this Indenture, such Guarantor will be released and relieved of any obligations under its
Guaranty.

          (c) Upon Legal Defeasance in accordance with Article 8 hereof or satisfaction and discharge of
this Indenture in accordance with Article 11 hereof, each Guarantor will be released and relieved
of any obligations under its Guaranty.

          Any Guarantor not released from its obligations under its Guaranty as provided in this Section
10.04 will remain liable for the full amount of principal of and interest and premium and
Additional Interest, if any, on the Notes of such series and for the other obligations of any
Guarantor under this Indenture as provided in this Article 10.

ARTICLE 11

SATISFACTION AND DISCHARGE

Section 11.01 Satisfaction and Discharge.

          This Indenture will be discharged and will cease to be of further effect as to all Notes of a
particular series issued hereunder, when:

          (1) either:

     (A) all Notes of such series that have been authenticated, except lost, stolen
or destroyed Notes that have been replaced or paid and Notes of such series for
whose payment money has been deposited in trust and thereafter repaid to the
Company, have been delivered to the trustee for cancellation; or

     (B) all Notes of such series that have not been delivered to the Trustee for
cancellation have become due and payable by reason of the mailing of a notice of
redemption (and all conditions to such redemption having been satisfied or waived)
or otherwise or will become due and payable within one year and the Company or any
Guarantor has irrevocably deposited or caused to be deposited with the Trustee as
trust funds in trust solely for the benefit of the Holders, cash in U.S. dollars,
non-callable Government Securities, or a combination of cash in U.S. dollars and
non-callable Government Securities, in amounts as will be sufficient, without
consideration of any reinvestment of interest, to pay and discharge the entire
Indebtedness on the Notes of such series not delivered to the Trustee for
cancellation for principal, premium and Additional Interest, if any, and accrued
interest to the date of maturity or redemption;

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     (2) no Default or Event of Default with respect to such series of Notes has occurred
and is continuing on the date of the deposit (other than a Default or Event of Default with
respect to such series of Notes resulting from transactions occurring contemporaneously
with the borrowing of funds, or the borrowing of funds, to be applied to such deposit) and
the deposit will not result in a breach or violation of, or constitute a default under, any
other instrument to which the Company or any Guarantor is a party or by which the Company
or any Guarantor is bound;

     (3) the Company or any Guarantor has paid or caused to be paid all sums payable by it
under this Indenture as they relate to such series of Notes; and

     (4) the Company has delivered irrevocable instructions to the Trustee under this
Indenture to apply the deposited money toward the payment of the Notes of such series at
maturity or on the redemption date, as the case may be.

In addition, the Company must deliver an Officers’ Certificate and an Opinion of Counsel to the
Trustee stating that all conditions precedent to satisfaction and discharge have been satisfied.

          Upon compliance with the foregoing, the Trustee shall execute proper instrument(s)
acknowledging the satisfaction and discharge of all the Company’s and the Guarantors’ obligations
under the Notes of such series, the Guaranties of such Notes and this Indenture.

          Notwithstanding the satisfaction and discharge of this Indenture, if money has been deposited
with the Trustee pursuant to subclause (b) of clause (1) of this Section 11.01, the provisions of
Sections 11.02 and 8.06 hereof will survive. In addition, nothing in this Section 11.01 will be
deemed to discharge those provisions of Section 7.07 hereof, that, by their terms, survive the
satisfaction and discharge of this Indenture.

Section 11.02 Application of Trust Money.

          Subject to the provisions of Section 8.06 hereof, all money deposited with the Trustee
pursuant to Section 11.01 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes of a particular series and this Indenture, to the payment, either directly
or through any Paying Agent (including the Company acting as its own Paying Agent) as the Trustee
may determine, to the Persons entitled thereto, of the principal (and premium and Additional
Interest, if any) and interest for whose payment such money has been deposited with the Trustee;
but such money need not be segregated from other funds except to the extent required by law.

          If the Trustee or Paying Agent is unable to apply any money or Government Securities in
accordance with Section 11.01 hereof by reason of any legal proceeding or by reason of any order or
judgment of any court or governmental authority enjoining, restraining or otherwise prohibiting
such application, the Company’s and any Guarantor’s obligations under this Indenture and the Notes
of such series shall be revived and reinstated as though no deposit had occurred pursuant to
Section 11.01 hereof; provided that if the Company has made any payment of principal of, premium or
Additional Interest, if any, or interest on, any Notes of such series because of the reinstatement
of its obligations, the Company shall be subrogated to the rights of the Holders of such Notes of
such series to receive such payment from the money or Government Securities held by the Trustee or
Paying Agent.

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ARTICLE 12

MISCELLANEOUS

Section 12.01 Trust Indenture Act Controls.

          If any provision of this Indenture limits, qualifies or conflicts with the duties imposed by
TIA §318(c), the imposed duties will control.

Section 12.02 Notices.

          Any notice or communication by the Company, any Guarantor or the Trustee to the others is duly
given if in writing and delivered in Person or by first class mail (registered or certified, return
receipt requested), facsimile transmission or overnight air courier guaranteeing next day delivery,
to the others’ address:

If to the Company and/or any Guarantor:

Pinnacle Entertainment, Inc.

3800 Howard Hughes Parkway

Las Vegas, Nevada 89169

Facsimile No.: (702) 784-7778

Attention: John A. Godfrey, Esq.

With a copy to:

Irell & Manella LLP

1800 Avenue of the Stars, Suite 900

Los Angeles, California 90067

Facsimile No.: (310) 203-7199

Attention: Kevin McGeehan, Esq.

If to the Trustee:

[____________________________

____________________________

____________________________]

Facsimile No.: [________________]

Attention: [________________]

          The Company, any Guarantor or the Trustee, by notice to the others, may designate additional
or different addresses for subsequent notices or communications.

          All notices and communications (other than those sent to Holders) will be deemed to have been
duly given: at the time delivered by hand, if personally delivered; five Business Days after being
deposited in the mail, postage prepaid, if mailed; when receipt acknowledged, if transmitted by
facsimile; and the next Business Day after timely delivery to the courier, if sent by overnight air
courier guaranteeing next day delivery.

          The Trustee agrees to accept and act upon facsimile transmission of written instructions
and/or directions pursuant to this Indenture given by the Company, provided,

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however that: (i) the Company, subsequent to such facsimile transmission of written
instructions and/or directions, shall provide the originally executed instructions and/or
directions to the Trustee in a timely manner and (ii) such originally executed instructions and/or
directions shall be signed by an authorized Officer of the Company.

          Any notice or communication to a Holder will be mailed by first class mail, certified or
registered, return receipt requested, or by overnight air courier guaranteeing next day delivery to
its address shown on the register kept by the Registrar. Any notice or communication will also be
so mailed to any Person described in TIA § 313(c), to the extent required by the TIA. Failure to
mail a notice or communication to a Holder or any defect in it will not affect its sufficiency with
respect to other Holders.

          If a notice or communication is mailed in the manner provided above within the time
prescribed, it is duly given, whether or not the addressee receives it.

          If the Company mails a notice or communication to Holders, it will mail a copy to the Trustee
and each Agent at the same time.

Section 12.03 Communication by Holders of Notes with Other Holders of Notes.

          Holders of any series of Notes may communicate pursuant to TIA § 312(b) with other Holders of
such series or any other series with respect to their rights under this Indenture or the Notes.
The Company, any Guarantor, the Trustee, the Registrar and anyone else shall have the protection of
TIA § 312(c).

Section 12.04 Certificate and Opinion as to Conditions Precedent.

          Upon any request or application by the Company to the Trustee to take any action under this
Indenture, except the initial authentication and delivery of a series of Notes, the Company shall
furnish to the Trustee:

     (1) an Officers’ Certificate in form and substance reasonably satisfactory to the
Trustee (which must include the statements set forth in Section 12.05 hereof) stating that,
in the opinion of the signers, all conditions precedent and covenants, if any, provided for
in this Indenture relating to the proposed action have been satisfied; and

     (2) an Opinion of Counsel in form and substance reasonably satisfactory to the Trustee
(which must include the statements set forth in Section 12.05 hereof) stating that, in the
opinion of such counsel, all such conditions precedent and covenants have been satisfied.
Such counsel may rely on representations, warranties and certificates of other Persons as
to matters of fact, and may qualify the Opinion of Counsel with customary assumptions and
exceptions.

Section 12.05 Statements Required in Certificate or Opinion.

          Each certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture (other than a certificate provided pursuant to TIA § 314(a)(4)) must comply
with the provisions of TIA § 314(e) and must include:

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     (1) a statement that the Person making such certificate or opinion has read such
covenant or condition;

     (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 such Person, he or she has made such
examination or investigation as is necessary to enable him or her to express an informed
opinion as to whether or not such covenant or condition has been satisfied; and

     (4) a statement as to whether or not, in the opinion of such Person, such condition or
covenant has been satisfied.

Section 12.06 Rules by Trustee and Agents.

          The Trustee may make reasonable rules for action by or at a meeting of Holders. The Registrar
or Paying Agent may make reasonable rules and set reasonable requirements for its functions.

Section 12.07 No Personal Liability of Directors, Officers, Employees and Stockholders.

          No past, present or future director, officer, employee, agent, manager, partner, member,
incorporator or stockholder of any Obligor, in such capacity, will have any liability for any
obligations of any Obligor under the Notes, this Indenture or the Guaranties or for any claim based
on, in respect of, or by reason of, such obligations or their creation. Each Holder of Notes by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for issuance of the Notes and the Guaranties.

Section 12.08 Governing Law.

          THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THIS INDENTURE,
THE NOTES AND THE GUARANTIES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO
THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY.

Section 12.09 No Adverse Interpretation of Other Agreements.

          This Indenture may not be used to interpret any other indenture, loan or debt agreement of the
Company or its Subsidiaries or of any other Person. Any such indenture, loan or debt agreement may
not be used to interpret this Indenture.

Section 12.10 Successors.

          All agreements of the Company in this Indenture and the Notes will bind its successors. All
agreements of the Trustee in this Indenture will bind its successors. All agreements of each
Guarantor in this Indenture will bind its successors, except as otherwise provided in Section 10.04
hereof.

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Section 12.11 Severability.

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

Section 12.12 Counterpart Originals.

          The parties may sign any number of copies of this Indenture. Each signed copy will be an
original, but all of them together represent the same agreement.

Section 12.13 Table of Contents, Headings, etc.

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

Section 12.14 Waiver of Jury Trial.

          EACH OF THE COMPANY AND THE TRUSTEE HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED
BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATING TO THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY.

Section 12.15 Force Majeure

          In no event shall the Trustee be responsible or liable for any failure or delay in the
performance of its obligations hereunder arising out of or caused by, directly or indirectly,
forces beyond its control, including, without limitation, strikes, work stoppages, accidents, acts
of war or terrorism, civil or military disturbances, nuclear or natural catastrophes or acts of
God, and interruptions, loss or malfunctions of utilities, communications or computer (software and
hardware) services; it being understood that the Trustee shall use reasonable efforts which are
consistent with accepted practices in the banking industry to resume performance as soon as
practicable under the circumstances.

          (Signatures on following page)

-57-

 

SIGNATURES

Dated as of [______, ___ ]

	 	 	 	 	 
	 	PINNACLE ENTERTAINMENT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	[ _______________ ] 	 
	 	 	Title:  	[ _______________ ] 	 
	 
	 	[GUARANTOR ]

 	 
	 	By:  	 	 
	 	 	Name:  	[ _______________ ] 	 
	 	 	Title:  	[ _______________ ] 	 
	 
	 	[GUARANTOR ]

 	 
	 	By:  	 	 
	 	 	Name:  	[ _______________ ] 	 
	 	 	Title:  	[ _______________ ] 	 

-58-

 

	 	 	 	 	 

THE TRUSTEE

Dated as of [______, ___ ]

	 	 	 	 	 
	 	[ ______________________________  ].

 	 
	 	By:  	 	 
	 	 	Name:  	[ _______________ ] 	 
	 	 	Title:  	[ _______________ ] 	 
	 

-59-

 

EXHIBIT A

[Face of Note ]

 

CUSIP/CINS ____________

[ __  ]% Senior Notes due [ ___  ]

			
	No. ___
	 	$__________________

PINNACLE ENTERTAINMENT, INC.

promises to pay to [ _________  ] or registered assigns,

the principal sum of __________________ DOLLARS on [ ______  ] .

Interest Payment Dates: [ ______  ] and [ ______  ]

Record Dates: [ ______  ] and [ ______  ]

Dated: ____________, 20___

	 	 	 	 	 
	 	PINNACLE ENTERTAINMENT, INC.

 	 
	 	By:  	 	 
	 	 	Name:  	[ _______________ ] 	 
	 	 	Title:  	[ _______________ ] 	 
	 

This is one of the Notes referred to

in the within-mentioned Indenture:

[ _____________________  ],

as Trustee

	 	 	 	 	 
	 	 
	By:  	 	 
	 	Authorized Signatory 	 

 

A-1

 

	 	 	 	 	 

[Back of Note ]

[ __  ]% Senior Notes due [ ___  ]

[Insert the Global Note Legend, if applicable pursuant to the provisions of the Indenture]

          THE NOTES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO RESTRICTIONS ON OWNERSHIP AND
TRANSFER IMPOSED BY APPLICABLE GAMING LAWS, THE PROVISIONS OF ARTICLE XIII OF THE COMPANY’S
RESTATED CERTIFICATE OF INCORPORATION, INCLUDING ANY AMENDMENTS THERETO OR ANY SUCCESSOR PROVISIONS
THERETO, AND SECTION 3.08 OF THE INDENTURE (WHICH IS SUMMARIZED ON THIS CERTIFICATE). A COPY OF
ARTICLE XIII OF THE COMPANY’S RESTATED CERTIFICATE OF INCORPORATION IS ON FILE AT THE OFFICE OF THE
COMPANY, AND MADE A PART HEREOF AS FULLY AS THOUGH THE PROVISIONS OF SAID PROVISIONS OF THE
COMPANY’S RESTATED CERTIFICATE OF INCORPORATION WERE PRINTED IN FULL ON THIS CERTIFICATE, TO ALL OF
WHICH THE HOLDER OF THIS CERTIFICATE, BY ACCEPTANCE HEREOF, ASSENTS AND AGREES TO BE BOUND. ANY
HOLDER OF A NOTE MAY OBTAIN, UPON REQUEST AND WITHOUT CHARGE, A COPY OF SUCH PROVISIONS OF THE
COMPANY’S RESTATED CERTIFICATE OF INCORPORATION. ANY SUCH REQUEST SHALL BE ADDRESSED TO THE
SECRETARY OF THE COMPANY.

          Capitalized terms used herein have the meanings assigned to them in the Indenture referred to
below unless otherwise indicated.

          (1) INTEREST. Pinnacle Entertainment, Inc., a Delaware corporation (the “Company”), promises
to pay interest on the principal amount of this Note at [ ___  ]% per annum from ____________,
20 ___ until maturity. The Company will pay interest and Additional Interest, if any, semi-annually
in arrears on [ ______  ] and [ ______  ] of each year, or if any such day is not a Business Day, on the
next succeeding Business Day (each, an “Interest Payment Date”). Interest on the Notes will accrue
from the most recent date to which interest has been paid or, if no interest has been paid, from
the date of issuance; provided that if there is no existing Default in the payment of interest, and
if this Note is authenticated between a record date referred to on the face hereof and the next
succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment
Date; provided further that the first Interest Payment Date shall be ____________, 20_. The
Company will pay interest (including post-petition interest in any proceeding under any Bankruptcy
Law) on overdue principal and premium, if any, from time to time on demand at a rate that is 1% per
annum in excess of the rate then in effect to the extent lawful; it will pay interest (including
post-petition interest in any proceeding under any Bankruptcy Law) on overdue installments of
interest and Additional Interest, if any, (without regard to any applicable grace periods) from
time to time on demand at the same rate to the extent lawful. Interest will be computed on the
basis of a 360-day year of twelve 30-day months.

          (2) METHOD OF PAYMENT. The Company will pay interest on the Notes (except defaulted interest)
and Additional Interest, if any, to the Persons who are registered Holders of Notes at the close of
business on the [ ______  ] and [ ______  ] next preceding the Interest Payment Date, even if such Notes
are canceled after such record date and on or before such Interest Payment Date, except as provided
in Section 2.12 of the Indenture with respect to defaulted interest. The Notes will be payable as
to principal, premium and Additional Interest, if any, and interest at the office or agency of the
Company maintained for such purpose within or without the City and State of New York, or, at the
option of the Company, payment of interest and Additional Interest, if any, may be made by check
mailed to the Holders at their addresses set

A-2

 

forth in the register of Holders; provided that payment by wire transfer of immediately
available funds will be required with respect to principal of and interest, premium and Additional
Interest, if any, on, all Global Notes and all other Notes the Holders of which will have provided
wire transfer instructions to the Company or the Paying Agent. Such payment will be 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.

          (3)
PAYING AGENT AND REGISTRAR. Initially, [ _________  ], the Trustee under the Indenture,
will act as Paying Agent and Registrar. The Company may change any Paying Agent or Registrar
without notice to any Holder. The Company or any of its Subsidiaries may act in any such capacity.

          (4) INDENTURE. The Company issued the Notes under an Indenture dated as of [ ___, ___  ]
(the “Indenture”) among the Company, the Guarantors and the Trustee. The terms of the Notes
include those stated in the Indenture and those made part of the Indenture by reference to the TIA.
The Notes are subject to all such terms, and Holders are referred to the Indenture and such Act
for a statement of such terms. To the extent any provision of this Note conflicts with the express
provisions of the Indenture, the provisions of the Indenture shall govern and be controlling. The
Notes are unsecured obligations of the Company. The Indenture does not limit the aggregate
principal amount of the Notes that may be issued thereunder.

          (5) OPTIONAL REDEMPTION.

[Insert, if applicable:]

               (a) Except as set forth in subparagraphs (b), (c), (d) and (e) of this Paragraph 5, the
Company will not have the option to redeem the Notes prior to [ _________  ]. On or after [ _________
 ], the Company will have the option to redeem the Notes, in whole or in part, upon not less than 15
nor more than 60 days’ notice, at the redemption prices (expressed as percentages of principal
amount thereof) set forth below plus accrued and unpaid interest and Additional Interest, if any,
on the Notes redeemed, to the applicable redemption date, if redeemed during the twelve-month
period beginning on June 15 of the years indicated below:

	 	 	 	 	 	 	 	 	 
	Year	 		 	Percentage
	[ ___  ]

	 	 		 	 	 	[ ___  ] 	%
	[ ___  ]

	 	 		 	 	 	[ ___  ] 	%
	[ ___  ]

	 	 		 	 	 	[ ___  ] 	%
	[ ___  ] and thereafter

	 	
	 	 	100.000	%

Unless the Company defaults in the payment of the redemption price, interest and the Additional
Interest, if any, will cease to accrue on the Notes or portions thereof called for redemption on
the applicable redemption date.

[Insert, if applicable: ]

               (b) Notwithstanding the provisions of subparagraph (a) of this Paragraph 5, at any time prior
to [ _________ ], the Company may redeem up to 35% of the initially

A-3

 

outstanding aggregate principal amount of Notes issued under this Indenture at a redemption
price in cash of [ ___  ] % of the principal amount thereof, plus accrued and unpaid interest and
Additional Interest, if any, to the redemption date, with the net cash proceeds of one or more
Equity Offerings of the Company; provided that at least 65% of the initially outstanding aggregate
principal amount of Notes (excluding Notes held by the Company and its Subsidiaries) remains
outstanding immediately after the occurrence of such redemption, notice of any such redemption
shall be given by the Company to the Holders and the Trustee within 15 days after the consummation
of any such Equity Offering, and such redemption shall occur within 60 days of the date of such
notice.

[Insert, if applicable:]

               (c) At any time prior to [ ___ ], the Company may also redeem all or a part of the Notes
upon not less than 15 nor more than 60 days’ prior notice mailed by first-class mail to each
Holder’s registered address, at a redemption price equal to 100% of the principal amount of notes
redeemed plus the Applicable Premium as of, and accrued and unpaid interest and Additional
Interest, if any, to the redemption date, subject to the rights of holders of Notes on the relevant
record dates occurring prior to the redemption date to receive interest due on the relevant
interest payment date.

     “Applicable Premium” means with respect to any Note on any redemption date, as
determined by the Company, the greater of:

     (1) 1.0% of the principal amount of the Note; or

     (2) the excess of:

     (a) the present value at such redemption date of (i) the redemption
price of the Note at [____________] (such redemption price being set
forth in the table appearing under Section 5 of this Note) plus (ii) all
required interest payments due on the Note through [____________]
(excluding accrued but unpaid interest to the redemption date), computed
using a discount rate equal to the Treasury Rate as of such redemption date
plus 50 basis points; over

     (b) the principal amount of the Note.

          (6) MANDATORY DISPOSITION OR REDEMPTION OF NOTES PURSUANT TO GAMING LAWS.

               (a) In addition to the foregoing, if (1) any Gaming Authority makes a determination of
unsuitability of a Holder or beneficial owner of Notes (or of an Affiliate of such Holder or
beneficial owner), or (2) any Gaming Authority requires that a Holder or beneficial owner of Notes
(or an Affiliate thereof) must (i) be licensed, qualified or found suitable under any applicable
Gaming Laws or (ii) reduce its position in the Notes to below a level that would require licensure,
qualification or a finding of suitability, and such Holder or beneficial owner (or Affiliate
thereof): (A) fails to apply for a license, qualification or a finding of suitability within 30
days (or such shorter period as may be required by the applicable Gaming Authority) after being
requested to do so by the Gaming Authority, (B) fails to reduce its position in the Notes
appropriately, or (C) is denied such license or qualification or not found suitable, the Company
shall have the right at any time from or after [ _________  ],at its option: (1) to require any such

A-4

 

Holder or beneficial owner to dispose of all or a portion of its Notes within 30 days (or such
earlier date as may be required by the applicable Gaming Authority) of receipt of such notice or
finding by such Gaming Authority, or (2) to call for the redemption of all or a portion of the
Notes of such Holder or beneficial owner at a redemption price equal to the least of: (A) the
principal amount thereof, (B) the price at which such Holder or beneficial owner acquired the
Notes, in the case of either clause (A) above or this clause (B), together with accrued and unpaid
interest and Additional Interest, if any, to the earlier of the date of redemption or the date of
the denial of license or qualification or of the finding of unsuitability by such Gaming Authority
(subject to the rights of Holders of Notes on the relevant record dates occurring prior to such
redemption date to receive interest on the relevant interest payment date), or (C) such other
lesser amount as may be required by any Gaming Authority. Immediately upon a determination by a
Gaming Authority that a Holder or beneficial owner of the Notes (or an Affiliate thereof) will not
be licensed, qualified or found suitable or is denied a license, qualification or finding of
suitability, the Holder or beneficial owner will not have any further rights with respect to the
Notes to: (1) exercise, directly or indirectly, through any Person, any right conferred by the
Notes; or (2) receive any interest or Additional Interest, if any, or any other distribution or
payment with respect to the Notes, or any remuneration in any form from the Company for services
rendered or otherwise, except the redemption price of the Notes; or (3) receive any remuneration in
any form from the Company or its Affiliates for services rendered or otherwise, except the
redemption price of the Notes. The Company shall notify the Trustee in writing of any such
redemption as soon as practicable. The Holder or beneficial owner (of an Affiliate thereof)
applying for a license, qualification or a finding of suitability must pay all costs of the
licensure or investigation for such qualification or finding of suitability.

               (b) In addition, by accepting a Note, each Holder or beneficial owner of a Note will be deemed
to have agreed to comply with all requirements of the Gaming Laws and Gaming Authorities in each
jurisdiction where the Company and its Affiliates are licensed or registered or proposed to be
licensed or registered under applicable Gaming Laws or conduct or propose to conduct gaming
activities, including without limitation, if so required, apply for any license, qualification or
finding of suitability within the required time period. Each Holder or beneficial owner will also
be deemed to have agreed that the Notes held by such Holder or beneficial owner shall be subject to
the provisions of Article XIII of the Company’s Restated Certificate of Incorporation (dealing with
Gaming Laws and gaming-related restrictions on ownership and transfer), including any amendments
thereto or any successor provisions thereto, a copy of which is on file at the office of the
Company, and made a part hereof as fully as though the provisions of said provisions of the
Company’s Restated Certificate of Incorporation were printed in full on this certificate, to all of
which the Holder of this certificate, by acceptance hereof, assents and agrees to be bound. Any
Holder of a Note may obtain, upon request and without charge, a copy of such provisions of the
Company’s Certificate of Incorporation. Any such request shall be addressed to the Secretary of
the Company.

          (7) MANDATORY REDEMPTION. The Company is not required to make mandatory redemption or sinking
fund payments with respect to the Notes.

          (8) NOTICE OF REDEMPTION. Notice of redemption will be mailed at least 15 days but not more
than 60 days before the redemption date to each Holder whose Notes are to be redeemed at its
registered address, except that redemption notices may be mailed more than 60 days prior to a
redemption date if the notice is issued in connection with a defeasance of the Notes or a
satisfaction or discharge of the Indenture as to the Notes. Notes in denominations larger than
$1,000 may be redeemed in part but only in whole multiples of $1,000, unless all of

A-5

 

the Notes held by a Holder are to be redeemed. A notice of redemption may be conditional in
that the Company may, notwithstanding the giving of the notice of redemption, condition the
redemption of the Notes specified in the notice of redemption upon the completion of other
transactions, such as refinancings or acquisitions (whether of the Company or by the Company).

          (9) DENOMINATIONS, TRANSFER, EXCHANGE. The Notes are in registered form without coupons in
denominations of $1,000 and integral multiples of $1,000. The transfer of Notes may be registered
and Notes may be exchanged as provided in the Indenture. The Registrar and the Trustee may require
a Holder, among other things, to furnish appropriate endorsements and transfer documents and the
Company may require a Holder to pay any taxes and fees required by law or permitted by the
Indenture. The Company need not exchange or register the transfer of any Note or portion of a Note
selected for redemption, except for the unredeemed portion of any Note being redeemed in part.
Also, the Company need not exchange or register the transfer of any Notes for a period of 15 days
before a selection of Notes to be redeemed or during the period between a record date and the
corresponding Interest Payment Date.

          (10) PERSONS DEEMED OWNERS. The registered Holder of a Note may be treated as its owner for
all purposes.

          (11) AMENDMENT, SUPPLEMENT AND WAIVER. Subject to certain exceptions, the Indenture and the
Notes and the Guaranties may be amended or supplemented with respect to a series of Notes affected
by such amendment or supplement with the consent of the Holders of at least a majority in aggregate
principal amount then outstanding of such series of Notes (including Additional Notes, if any)
voting as a separate class, and, subject to certain exceptions, any existing Default or Event or
Default or compliance with any provision of the Indenture or the Notes or the Guaranties may be
waived with respect to a series of Notes with the consent of the Holders of a majority in aggregate
principal amount of the then outstanding Notes of such series (including Additional Notes of such
series, if any) voting as a separate class. Without the consent of any Holder of Notes, the
Indenture or the Notes or the Guaranties of one or more series may be amended or supplemented to
cure any ambiguity, defect or inconsistency, to provide for uncertificated Notes in addition to or
in place of certificated Notes, to provide for the assumption of the Company’s or a Guarantor’s
obligations to Holders of all or any series of Notes and Guaranties in case of a merger or
consolidation, to make any change that would provide any additional rights or benefits to the
Holders of any series of Notes (and if such additional rights or benefits are for the benefit of
less than all series of Notes, stating that such additional rights or benefits are expressly being
included solely for the benefit of such series) or that does not adversely affect the legal rights
under the Indenture of any such Holder, to comply with the requirements of the SEC in order to
effect or maintain the qualification of the Indenture under the TIA, to comply with the
requirements of applicable Gaming Laws or to provide for requirements imposed by applicable Gaming
Authorities, to conform the text of the Indenture or the Notes to any provision of the “Description
of Notes” section of any prospectus or prospectus supplement or other offering document or
similarly named section, relating to the initial offering of the Notes, to the extent that such
provision in that “Description of Notes” was intended to be a verbatim recitation of a provision of
the Indenture, the Guaranties or the Notes, to provide for the issuance of Additional Notes of such
series in accordance with the limitations set forth in the Indenture prior to such issuance of
Additional Notes, to allow any Guarantor to execute a supplemental indenture to the Indenture
and/or a Guaranty with respect to the Notes and to release Guaranties when permitted by the terms
thereof, to secure the Notes of any series, to add to the covenants of the Company and/or the
Guarantors for the benefit of the Holders of all or any series of Notes (and if such covenants are
to be for the benefit of less than all series of Notes,

A-6

 

stating that such covenants are expressly being included solely for the benefit of such
series) or to surrender any right or power conferred upon the Company and/or the Guarantors, to
establish the form and terms of any series as permitted by the Indenture, or to add to, change or
eliminate any of the provisions of the Indenture in respect of one or more series of Notes subject
to certain limitations.

          (12) DEFAULTS AND REMEDIES. Events of Default include with respect to Notes of any series:
(i) default for 30 days in the payment when due of interest (including any Additional Interest) on
the Notes of such series or the Guaranties of such series; (ii) default in payment of the principal
of or premium, if any, on the Notes of such series or the Guaranties of such series when due and
payable, at maturity, upon acceleration, redemption or otherwise; (iii) failure by any Obligor to
comply with any of its other agreements in the Indenture (other than an agreement that has been
included in the Indenture solely for the benefit of a series of Notes other than such series), the
Notes of such series or the Guaranties of such series for 60 days after written notice to the
Company by the Trustee or the Holders of at least 25% in principal amount of the Notes of such
series then outstanding voting as a single class; (iv) default under any mortgage, indenture or
instrument under which there may be issued or by which there may be secured or evidenced any
Indebtedness for money borrowed by any Obligor (or the payment of which is guaranteed by any
Obligor) whether such Indebtedness or guarantee now exists, or is created after the date such
series of Notes was first issued, which default is caused by a failure to pay principal of or
premium, if any, or interest, if any, on such Indebtedness prior to the expiration of the grace
period provided in such Indebtedness on the date of such default (a “Payment Default”), or results
in the acceleration of such Indebtedness prior to its express maturity and, in each case, the
principal amount of any such Indebtedness, together with the principal amount of any other such
Indebtedness under which there has been a Payment Default or the maturity of which has been so
accelerated, aggregates $50 million or more; (v) certain final judgments for the payment of money
that remain undischarged for a period of 60 days after such judgment or judgments become final and
non-appealable; and (vi) certain events of bankruptcy or insolvency with respect to any Obligor.
If any Event of Default with respect to the Notes of any series occurs and is continuing, the
Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Notes
of such series may declare all the Notes of such series to be due and payable immediately.
Notwithstanding the foregoing, in the case of an Event of Default arising from certain events of
bankruptcy or insolvency, all outstanding Notes of such series will become due and payable
immediately without further action or notice. Holders may not enforce the Indenture or the Notes
of such series except as provided in the Indenture. Subject to certain limitations, Holders of a
majority in aggregate principal amount of the then outstanding Notes of such series may direct the
Trustee in its exercise of any trust or power with respect to the Notes of such series. The
Trustee shall be under no obligation to exercise any of the rights or powers at the request or
direction of any of the Holders unless such Holders shall have offered to the Trustee security or
indemnity satisfactory to the Trustee against the costs, expenses and liabilities which might be
incurred by it in compliance with such request or direction. The Trustee may withhold from Holders
of the Notes of such series notice of any continuing Default or Event of Default (except a Default
or Event of Default relating to the payment of principal or interest or premium or Additional
Interest, if any,) if it determines that withholding notice is in their interest. Notwithstanding
any other provision of the Indenture, the sole remedy for an Event of Default relating to the
failure to comply with the SEC reporting obligations described under the Indenture, and for any
failure to comply with the requirements of section 314(a) of the TIA, will for the 365 days after
the occurrence of such an Event of Default consist exclusively of the right to receive Additional
Interest on the principal amount of the Notes of such series at a rate equal to 0.50% per annum.
The Holders of a majority in aggregate principal amount of the then outstanding Notes of such
series by notice to the Trustee may, on behalf of the Holders of all of

A-7

 

the Notes of such series, rescind an acceleration or waive any existing Default or Event of
Default with respect to the Notes of such series and its consequences under the Indenture except a
continuing Default or Event of Default in the payment of interest or premium or Additional
Interest, if any, on, or the principal of, the Notes of such series. The Company is required to
deliver to the Trustee annually a statement regarding compliance with the Indenture, and the
Company is required, upon becoming aware of any Default or Event of Default, to deliver to the
Trustee a statement specifying such Default or Event of Default.

          (13) TRUSTEE DEALINGS WITH OBLIGORS. The Trustee, in its individual or any other capacity,
may make loans to, accept deposits from, and perform services for the Obligors or their Affiliates,
and may otherwise deal with the Obligors or their Affiliates, as if it were not the Trustee.

          (14) NO RECOURSE AGAINST OTHERS. A director, officer, employee, incorporator or stockholder
of the Company or any of the Guarantors, as such, will not have any liability for any obligations
of the Company or the Guarantors under the Notes, the Guaranties or the Indenture or for any claim
based on, in respect of, or by reason of, such obligations or their creation. Each Holder by
accepting a Note waives and releases all such liability. The waiver and release are part of the
consideration for the issuance of the Notes.

          (15) AUTHENTICATION. This Note will not be valid until authenticated by the manual signature
of the Trustee or an authenticating agent.

          (16) ABBREVIATIONS. Customary abbreviations may be used in the name of a Holder or an
assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (=
joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and
U/G/M/A (= Uniform Gifts to Minors Act).

          (17) CUSIP NUMBERS. Pursuant to a recommendation promulgated by the Committee on Uniform
Security Identification Procedures, the Company has caused CUSIP numbers to be printed on the
Notes, and the Trustee may use CUSIP numbers in notices of redemption as a convenience to Holders.
No representation is made as to the accuracy of such numbers either as printed on the Notes or as
contained in any notice of redemption, and reliance may be placed only on the other identification
numbers placed thereon.

          (18) GOVERNING LAW. THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO
CONSTRUE THE INDENTURE, THIS NOTE AND THE GUARANTIES WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES
OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY.

          The Company will furnish to any Holder upon written request and without charge a copy of the
Indenture. Requests may be made to:

Pinnacle Entertainment, Inc.

3800 Howard Hughes Parkway

Las Vegas, Nevada 89169

Attention: General Counsel.

A-8

 

Assignment Form

          To assign this Note, fill in the form below:

(I) or (we) assign and transfer this Note to:
 

(Insert assignee’s legal name)

 

(Insert assignee’s soc. sec. or tax I.D. no.)

 

 

 

 

(Print or type assignee’s name, address and zip code)

and irrevocably appoint  

to transfer this Note on the books of the Company. The agent may substitute another to act for
him.

Date: _______________

Your Signature:
 

(Sign exactly as your name appears on the face of this Note)

Signature Guarantee*: _________________________

 

			
	*	 	Participant in a recognized Signature Guarantee Medallion Program (or other signature guarantor
acceptable to the Trustee).

A-9

 

SCHEDULE OF EXCHANGES OF INTERESTS IN THE GLOBAL NOTE *

     The following exchanges of a part of this Global Note for an interest in another Global Note
or for a Definitive Note, or exchanges of a part of another Global Note or Definitive Note for an
interest in this Global Note, have been made:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Principal Amount of	 	 
	 	 	 	 	 	 	this Global Note	 	Signature of
	 	 	Amount of decrease	 	Amount of increase	 	following such	 	authorized officer
	 	 	in Principal Amount	 	in Principal Amount	 	decrease	 	of Trustee or
	Date of Exchange	 	of this Global Note	 	of this Global Note	 	(or increase)	 	Custodian
	 

	 	 
	 	 
	 	 
	 	 
	 	 	 	 	 	 	 	 	 

 

			
	*	 	This schedule should be included only if the Note is issued in global form.

A-10

 

[FORM OF NOTATION OF GUARANTY ]

          For value received, each Guarantor (which term includes any successor Person under the
Indenture) has, jointly and severally, unconditionally guaranteed, to the extent set forth in the
Indenture and subject to the provisions in the Indenture dated as of [ _________  ] (the
“Indenture”) among Pinnacle Entertainment, Inc. (the “Company”), the Guarantors party thereto and [
_________  ], as trustee (the “Trustee”), (a) the due and punctual payment of the principal of,
premium and Additional Interest, if any, and interest on, the [ ___  ]% Senior Notes due [ ___  ] (the
“Notes”), whether at maturity, by acceleration, redemption or otherwise, the due and punctual
payment of interest on overdue principal of and interest on the Notes, if any, if lawful, and the
due and punctual performance of all other obligations of the Company 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 Notes 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 Guarantors to the
Holders of Notes and to the Trustee pursuant to the Guaranty and the Indenture are expressly set
forth in Article 10 of the Indenture and reference is hereby made to the Indenture for the precise
terms of the Guaranty. Each Holder of a Note, by accepting the same, (a) agrees to and shall be
bound by such provisions, and (b) appoints the Trustee attorney-in-fact of such Holder for such
purpose.

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

	 	 	 	 	 
	 	[NAME OF GUARANTOR(S) ]

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:

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