Document:

gden-ex41_130.htm

Exhibit 4.1

 

 

GOLDEN ENTERTAINMENT, INC.

the Guarantors party hereto

and

Wilmington Trust, National Association
as Trustee

$375,000,000

7.625% SENIOR NOTES DUE 2026 

 

 

INDENTURE

Dated as of April 15, 2019

 

 

 

 

 

 

 

 

TABLE OF CONTENTS

	
 
	
Page
	
	
 
	
 
	
	
ARTICLE 1

DEFINITIONS
	
	
 
	
	
Section 1.01
	
 
	
Definitions.
	
 

	
Section 1.02
	
 
	
Other Definitions.
	
35

	
Section 1.03
	
 
	
Rules of Construction.
	
36

	
Section 1.04
	
 
	
Financial Calculations for Limited Condition Transactions.
	
36

	
 
	
 
	
 
	
 

	
ARTICLE 2

THE NOTES
	
	
 
	
	
Section 2.01
	
 
	
Form and Dating.
	
37

	
Section 2.02
	
 
	
Execution and Authentication.
	
38

	
Section 2.03
	
 
	
Registrar and Paying Agent.
	
38

	
Section 2.04
	
 
	
Paying Agent to Hold Money in Trust.
	
39

	
Section 2.05
	
 
	
Holder Lists.
	
39

	
Section 2.06
	
 
	
Transfer and Exchange.
	
39

	
Section 2.07
	
 
	
Replacement Notes.
	
49

	
Section 2.08
	
 
	
Outstanding Notes.
	
49

	
Section 2.09
	
 
	
Treasury Notes.
	
49

	
Section 2.10
	
 
	
Temporary Notes.
	
50

	
Section 2.11
	
 
	
Cancellation.
	
50

	
Section 2.12
	
 
	
Defaulted Interest.
	
50

	
Section 2.13
	
 
	
CUSIP and ISIN Numbers.
	
50

	
 
	
 
	
 
	
 

	
ARTICLE 3

REDEMPTION AND PREPAYMENT
	
	
 
	
 
	
 
	
 

	
Section 3.01
	
 
	
Notices to Trustee.
	
51

	
Section 3.02
	
 
	
Selection of Notes to Be Redeemed or Purchased.
	
51

	
Section 3.03
	
 
	
Notice of Redemption.
	
51

	
Section 3.04
	
 
	
Effect of Notice of Redemption.
	
52

	
Section 3.05
	
 
	
Deposit of Redemption or Purchase Price.
	
53

	
Section 3.06
	
 
	
Notes Redeemed or Purchased in Part.
	
53

	
Section 3.07
	
 
	
Optional Redemption.
	
53

	
Section 3.08
	
 
	
Gaming Redemption
	
54

	
Section 3.09
	
 
	
Mandatory Redemption.
	
55

	
Section 3.10
	
 
	
Offer to Purchase by Application of Excess Proceeds.
	
55

	
 
	
 
	
 
	
 

	
ARTICLE 4

COVENANTS
	
	
 
	
 
	
 
	
 

	
Section 4.01
	
 
	
Payment of Notes.
	
57

	
Section 4.02
	
 
	
Maintenance of Office or Agency.
	
57

	
Section 4.03
	
 
	
Reports.
	
58

	
Section 4.04
	
 
	
Compliance Certificate.
	
59

	
Section 4.05
	
 
	
Taxes.
	
59

	
Section 4.06
	
 
	
Stay, Extension and Usury Laws.
	
59

	
Section 4.07
	
 
	
Restricted Payments.
	
59

	
Section 4.08
	
 
	
Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.
	
64

i

 

Page

	
Section 4.09
	
 
	
Incurrence of Indebtedness and Issuance of Preferred Stock.
	
66

	
Section 4.10
	
 
	
Asset Sales.
	
71

	
Section 4.11
	
 
	
Transactions with Affiliates.
	
74

	
Section 4.12
	
 
	
Liens.
	
76

	
Section 4.13
	
 
	
Business Activities.
	
77

	
Section 4.14
	
 
	
Corporate Existence.
	
77

	
Section 4.15
	
 
	
Offer to Repurchase Upon Change of Control.
	
77

	
Section 4.16
	
 
	
No Layering.
	
79

	
Section 4.17
	
 
	
Suspension of Covenants.
	
79

	
Section 4.18
	
 
	
Additional Note Guarantees.
	
80

	
Section 4.19
	
 
	
Designation of Restricted and Unrestricted Subsidiaries.
	
81

	
 
	
 
	
 
	
 

	
ARTICLE 5

SUCCESSORS
	
	
 
	
 
	
 
	
 

	
Section 5.01
	
 
	
Merger, Consolidation or Sale of Assets.
	
81

	
Section 5.02
	
 
	
Successor Corporation Substituted.
	
82

	
 
	
 
	
 
	
 

	
ARTICLE 6

DEFAULTS AND REMEDIES
	
	
 
	
 
	
 
	
 

	
Section 6.01
	
 
	
Events of Default.
	
83

	
Section 6.02
	
 
	
Acceleration.
	
84

	
Section 6.03
	
 
	
Other Remedies.
	
84

	
Section 6.04
	
 
	
Waiver of Past Defaults.
	
84

	
Section 6.05
	
 
	
Control by Majority.
	
84

	
Section 6.06
	
 
	
Limitation on Suits.
	
85

	
Section 6.07
	
 
	
Rights of Holders of Notes to Receive Payment.
	
86

	
Section 6.08
	
 
	
Collection Suit by Trustee.
	
86

	
Section 6.09
	
 
	
Trustee May File Proofs of Claim.
	
86

	
Section 6.10
	
 
	
Priorities.
	
86

	
Section 6.11
	
 
	
Undertaking for Costs.
	
87

	
Section 6.12
	
 
	
Remedies Subject to Applicable Law.
	
87

	
 
	
 
	
 
	
 

	
ARTICLE 7

TRUSTEE
	
	
 
	
 
	
 
	
 

	
Section 7.01
	
 
	
Duties of Trustee.
	
87

	
Section 7.02
	
 
	
Rights of Trustee.
	
88

	
Section 7.03
	
 
	
Individual Rights of Trustee.
	
89

	
Section 7.04
	
 
	
Trustee’s Disclaimer.
	
89

	
Section 7.05
	
 
	
Notice of Defaults.
	
90

	
Section 7.06
	
 
	
Compensation and Indemnity.
	
90

	
Section 7.07
	
 
	
Replacement of Trustee.
	
91

	
Section 7.08
	
 
	
Successor Trustee by Merger, etc.
	
91

	
Section 7.09
	
 
	
Eligibility; Disqualification.
	
92

	
 
	
 
	
 
	
 

	
ARTICLE 8

LEGAL DEFEASANCE AND COVENANT DEFEASANCE
	
	
 
	
 
	
 
	
 

	
Section 8.01
	
 
	
Option to Effect Legal Defeasance or Covenant Defeasance.
	
92

	
Section 8.02
	
 
	
Legal Defeasance and Discharge.
	
92

	
Section 8.03
	
 
	
Covenant Defeasance.
	
93

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Page

	
Section 8.04
	
 
	
Conditions to Legal or Covenant Defeasance.
	
93

	
Section 8.05
	
 
	
Deposited Money and Government Securities to be Held in Trust; Other Miscellaneous Provisions.
	
94

	
Section 8.06
	
 
	
Repayment to Issuer.
	
95

	
Section 8.07
	
 
	
Reinstatement.
	
95

	
 
	
 
	
 
	
 

	
ARTICLE 9

AMENDMENT, SUPPLEMENT AND WAIVER
	
	
 
	
 
	
 
	
 

	
Section 9.01
	
 
	
Without Consent of Holders of Notes.
	
95

	
Section 9.02
	
 
	
With Consent of Holders of Notes.
	
97

	
Section 9.03
	
 
	
[Reserved].
	
98

	
Section 9.04
	
 
	
Revocation and Effect of Consents.
	
98

	
Section 9.05
	
 
	
Notation on or Exchange of Notes.
	
98

	
Section 9.06
	
 
	
Trustee to Sign Amendments, etc.
	
98

	
 
	
 
	
 
	
 

	
ARTICLE 10

NOTE GUARANTEES
	
	
 
	
 
	
 
	
 

	
Section 10.01
	
 
	
Guarantee.
	
99

	
Section 10.02
	
 
	
Limitation on Guarantor Liability.
	
100

	
Section 10.03
	
 
	
Execution and Delivery of Note Guarantee.
	
100

	
Section 10.04
	
 
	
Guarantors May Consolidate, etc., on Certain Terms.
	
100

	
Section 10.05
	
 
	
Releases.
	
101

	
 
	
 
	
 
	
 

	
ARTICLE 11

Satisfaction and Discharge
	
	
 
	
 
	
 
	
 

	
Section 11.01
	
 
	
Satisfaction and Discharge.
	
102

	
Section 11.02
	
 
	
Application of Trust Money.
	
103

	
 
	
 
	
 
	
 

	
ARTICLE 12

MISCELLANEOUS
	
	
 
	
 
	
 
	
 

	
Section 12.01
	
 
	
[Reserved].
	
103

	
Section 12.02
	
 
	
Notices.
	
103

	
Section 12.03
	
 
	
[Reserved].
	
104

	
Section 12.04
	
 
	
Certificate and Opinion as to Conditions Precedent.
	
104

	
Section 12.05
	
 
	
Statements Required in Certificate or Opinion.
	
105

	
Section 12.06
	
 
	
Rules by Trustee and Agents.
	
105

	
Section 12.07
	
 
	
No Personal Liability of Directors, Partners, Members, Officers, Employees and Stockholders.
	
105

	
Section 12.08
	
 
	
Governing Law.
	
105

	
Section 12.09
	
 
	
No Adverse Interpretation of Other Agreements.
	
106

	
Section 12.10
	
 
	
Successors.
	
106

	
Section 12.11
	
 
	
Severability.
	
106

	
Section 12.12
	
 
	
Counterpart Originals.
	
106

	
Section 12.13
	
 
	
Table of Contents, Headings, etc.
	
106

	
Section 12.14
	
 
	
Waiver of Jury Trial.
	
106

	
Section 12.15
	
 
	
U.S.A.  PATRIOT Act.
	
106

	
Section 12.16
	
 
	
Force Majeure.
	
107

 

 

iii

 

 

 

EXHIBITS

	
Exhibit A
	
FORM OF NOTE

	
Exhibit B
	
FORM OF CERTIFICATE OF TRANSFER

	
Exhibit C
	
FORM OF CERTIFICATE OF EXCHANGE

	
Exhibit D
	
FORM OF NOTATION OF GUARANTEE

	
Exhibit E
	
FORM OF SUPPLEMENTAL INDENTURE TO BE DELIVERED BY SUBSEQUENT GUARANTORS

 

 

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INDENTURE dated as of April 15, 2019 among Golden Entertainment, Inc., a Minnesota corporation (“Issuer”), the Guarantors (as defined herein) party hereto, and Wilmington Trust, National Association, a national banking association, as trustee (the “Trustee”).

RECITALS

The Issuer has duly authorized the creation of and issue of 7.625% Senior Notes due 2026 (the “Notes”) and of the tenor and amount hereinafter set forth, and to provide therefor the Issuer has duly authorized the execution and delivery of this Indenture.

NOW, THEREFORE, THIS INDENTURE WITNESSETH:

For and in consideration of the premises and the purchase of the Notes by the Holders (as defined herein) thereof, each party agrees as follows for the benefit of each other and for the equal and ratable benefit of the Holders of the Notes:

ARTICLE 1
DEFINITIONS

	
Section 1.01
	
Definitions.

For purposes of this Indenture, unless otherwise specifically indicated, the term “consolidated” with respect to any Person refers to such Person on a consolidated basis in accordance with GAAP, but excluding from such consolidation any Unrestricted Subsidiary as if such Unrestricted Subsidiary were not an Affiliate of such Person.

“144A Global Note” means a Global Note substantially in the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of, and registered in the name of, the Depositary or its nominee that will be issued in a denomination equal to the outstanding principal amount of the Notes sold in reliance on Rule 144A.

“Acquired Debt” means, with respect to any specified Person:

(1)    Indebtedness, Disqualified Stock or preferred stock of any other Person existing at the time such other Person is merged, acquired, consolidated, liquidated or amalgamated with or into or became a Restricted Subsidiary of such specified Person, whether or not such Indebtedness, Disqualified Stock or preferred stock is incurred in connection with, or in contemplation of, such other Person merging with or into, or becoming a Restricted Subsidiary of, such specified Person; and

(2)    Indebtedness secured by a Lien encumbering any asset acquired by such specified Person; 

provided that, for the avoidance of doubt, if such Indebtedness, Disqualified Stock, or preferred stock is redeemed, retired, or defeased (whether by covenant or legal defeasance), repurchased, discharged or otherwise repaid or acquired (or if irrevocable deposit has been made for the purpose of such repurchase, redemption, retirement, defeasance (whether covenant or legal), discharge or repayment or other acquisition) at the time, or substantially concurrently with the consummation, of the transaction by which such Person is merged, acquired, consolidated, liquidated or amalgamated with or into or became a Restricted Subsidiary (including by designation) of such specified Person, then such Indebtedness, Disqualified Stock, or preferred stock shall not constitute Acquired Debt.

 

 

 

 

 

“Acquisition” means the transactions contemplated by the Acquisition Purchase Agreement.

“Acquisition Purchase Agreement” means the Membership Interest Purchase Agreement, dated July 14, 2018, between the Issuer, as the buyer, and Marnell Gaming, LLC, as the seller, pursuant to which the Issuer agreed to acquire all of the outstanding equity interests of Colorado Belle Gaming, LLC and Edgewater Gaming, LLC, as amended or supplemented from time to time (together with the exhibits and disclosure schedules thereto).

“Additional Notes” means additional notes (other than the Initial Notes) issued under this Indenture in accordance with Sections 2.02 and 4.09 hereof, as part of the same series as the Initial Notes.  

“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, means 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; provided that beneficial ownership of 10% or more of the Voting Stock of a Person will be deemed to be control.  For purposes of this definition, the terms “controlling,” “controlled by” and “under common control with” have correlative meanings.

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

“Applicable Premium” means, with respect to any Note on any redemption date, 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 April 15, 2022 (such redemption price being set forth in the table appearing in Section 3.07 hereof), plus (ii) all required interest payments due on the Note through April 15, 2022 (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 such Note.  

The Trustee shall have no duty to calculate or verify the calculation of the Applicable Premium.

“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.

“Asset Sale” means:  

(1)    the sale, lease, conveyance or other disposition of any assets or rights, whether effected pursuant to a Division or otherwise, by the Issuer or any of the Issuer’s Restricted Subsidiaries; provided that the sale, lease, conveyance or other disposition of all or substantially all of the assets of the Issuer and its Restricted Subsidiaries taken as a whole will be governed by Section 4.15 and/or Section 5.01 hereof and not by Section 4.10 hereof; and

(2)    the issuance of Equity Interests by any of the Issuer’s Restricted Subsidiaries or the sale by the Issuer or any of the Issuer’s Restricted Subsidiaries of Equity Interests in any of the Issuer’s Restricted Subsidiaries (other than preferred stock issued in compliance with Section 4.09 hereof).

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Notwithstanding the preceding, none of the following items will be deemed to be an Asset Sale:

(1)    any single transaction or series of related transactions that involves assets having a Fair Market Value not to exceed the greater of (x) $10.0 million and (y) 5.0% of Consolidated EBITDA;

(2)    any transaction that is consummated in accordance with the provisions of Section 5.01 hereof;

(3)    a transfer of assets between or among the Issuer and its Restricted Subsidiaries; 

(4)    an issuance of Equity Interests by a Restricted Subsidiary of the Issuer to the Issuer or to a Restricted Subsidiary of the Issuer;

(5)    the sale, disposition, exchange for replacement items or other items used or useful in a Permitted Business, lease or other transfer of inventory, products, services or accounts receivable in the ordinary course of business or in bankruptcy or similar proceedings;

(6)    any sale or other disposition of damaged, non-core, worn-out or obsolete assets in the ordinary course of business (including the abandonment or other disposition of intellectual property that is, in the reasonable judgment of the Issuer, no longer economically practicable to maintain or useful in the conduct of the business of the Issuer and its Restricted Subsidiaries taken as a whole);

(7)    licenses and sublicenses by the Issuer or any of its Restricted Subsidiaries of software or intellectual property in the ordinary course of business;

(8)    any surrender or waiver of contract rights or settlement, release, recovery on or surrender of contract, tort or other claims in the ordinary course of business;

(9)    the granting of Liens not prohibited by Section 4.12 hereof;

(10)    the sale or other disposition of cash or Cash Equivalents;

(11)    a Restricted Payment that does not violate Section 4.07 hereof or a Permitted Investment;

(12)    any exchange of property pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended, for use in a related business;

(13)    foreclosures, condemnations or any similar action on assets;

(14)    any leases of retail, restaurant or entertainment venues and other similar spaces in the ordinary course of business;

(15)    terminations of Hedging Obligations; 

(16)    any settlement, release, waiver or surrender of contract rights or contract, tort or other litigation claims, or voluntary terminations of other contracts or assets, in the ordinary course of business; 

(17)    the lease, assignment, sublease, license or sublicense of any real or personal property in the ordinary course of business and which do not materially interfere with the business of the Issuer and the Restricted Subsidiaries taken as a whole;(18) foreclosures, condemnation, eminent domain or any similar action on assets or the granting of Liens not prohibited by this Indenture;

3

 

 

(18)    any surrender or waiver of contractual rights or the settlement, release or surrender or contractual rights or other litigation claims in the ordinary course of business;

(19)    the sale, lease, assignment, sublease or discount of inventory, equipment, accounts receivable, notes receivable or other current assets in the ordinary course of business or the conversion of accounts receivable for notes receivable or other dispositions or accounts receivable in connection with the collection or compromise thereof;

(20)    the licensing of intellectual property or other general intangibles in the ordinary course of business or that is immaterial;

(21)    any disposition of Equity Interests of a Restricted Subsidiary pursuant to an agreement or other obligation with or to a Person (other than the Issuer or any of its Restricted Subsidiaries) from whom such Restricted Subsidiary was acquired, or from whom such Restricted Subsidiary acquired its business and assets (having been newly formed in connection with such acquisition), made as part of such acquisition and in each case comprising all or a portion of the consideration in respect of such sale or acquisition; 

(22)    any financing transaction with respect to property constructed, acquired, replaced, repaired or improved (including any reconstruction, refurbishment, renovation and/or development of real property) by the Issuer or any of its Restricted Subsidiaries, including sale and leaseback transactions and asset securitizations, permitted by this Indenture; 

(23)    sales of Unrestricted Subsidiaries or Joint Ventures or other development ventures, or issuances or sales of Equity Interests, Indebtedness, other securities or other Investments therein, or assets thereof; 

(24)    any transfer of Equity Interests of any Restricted Subsidiary or any Gaming Facility in connection with the occurrence of a Triggering Event;

(25)    (i) the lease, sublease or license of any portion of any Property to Persons who, either directly or through Affiliates of such Persons, intend to operate or manage nightclubs, bars, restaurants, recreation areas, spas, pools, exercise or gym facilities, or entertainment or retail venues or similar or related establishments or facilities and (ii) the grant of declarations of covenants, conditions and restrictions and/or easements with respect to common area spaces and similar instruments benefiting such tenants of such leases, subleases and licenses;

(26)    the dedication of space or other dispositions of Property in connection with and in furtherance of constructing structures or improvements reasonably related to the development, construction and operation of any project;

(27)    dedications of, or the granting of easements, rights of way, rights of access and/or similar rights, to any Governmental Authority, utility providers, cable or other communication providers and/or other parties providing services or benefits to any project, any real Property held by Issuer or the Restricted Subsidiaries or the public at large that would not reasonably be expected to interfere in any material respect with the operations of Issuer and the Restricted Subsidiaries; and

(28)    the disposition of non-core assets acquired in connection with any acquisition or Investment permitted under this Indenture in an amount not to exceed 25% of the aggregate purchase price for such acquisition or Investment.

4

 

 

In the event that a transaction (or a portion thereof) meets the criteria of more than one of the categories described in clauses (1) through (28), the Issuer, in its sole discretion, will be entitled to divide and classify or reclassify such transaction (or a portion thereof) between or among such categories.

“Attributable Debt” in respect of a sale and leaseback transaction means, at the time of determination, the present value of the obligation of the lessee for net rental payments during the remaining term of the lease included in such sale and leaseback transaction including any period for which such lease has been extended or may, at the option of the lessor, be extended.  Such present value will be calculated using a discount rate equal to the rate of interest implicit in such transaction, determined in accordance with GAAP; provided, however, that if such sale and leaseback transaction results in a Capital Lease Obligation, the amount of Indebtedness represented thereby will be determined in accordance with the definition of “Capital Lease Obligation.”

“Bank Refinancing” means, collectively, (i) the repayment of all of the outstanding indebtedness under the Existing Second Lien Credit Agreement, (ii)  the repayment of all of the outstanding revolving indebtedness under the Existing First Lien Credit Agreement and (iii) the repayment of a portion of the outstanding term loan indebtedness under the Existing First Lien Credit Agreement.

“Bankruptcy Code” means Title 11 of the United States Code.  

“Beneficial Owner” has the meaning assigned to such term in Rule 13d-3 and Rule 13d-5 under the Exchange Act, except that in calculating the beneficial ownership of any particular “person” (as that term is used in Section 13(d)(3) of the Exchange Act), such “person” will be deemed to have beneficial ownership of all securities that such “person” has the right to acquire by conversion or exercise of other securities, whether such right is currently exercisable or is exercisable only after the passage of time.  The terms “Beneficially Owns,” “Beneficially Owning” and “Beneficially Owned” have a corresponding meaning.

“Board of Directors” 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 of the general partner of the partnership; 

(3)    with respect to a limited liability company, the board of managers of such limited liability company or any committee thereof duly authorized to act on behalf of such board or the managing member or members or any controlling committee of managing members thereof, as applicable; and

(4)    with respect to any other Person, the board or committee of such Person serving a similar function.

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

“Calculation Date” has the meaning assigned to that term in the definition of “Fixed Charge Coverage Ratio.”

5

 

 

“Capital Lease Obligation” means, at the time any determination is to be made, the amount of the liability in respect of a capital lease that would at that time be required to be capitalized on a balance sheet prepared in accordance with GAAP as in effect on the Issue Date, and the Stated Maturity thereof 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 prepaid by the lessee without payment of a penalty; provided, however, that for the avoidance of doubt, any lease that would be accounted for by any Person as an operating lease as of the Issue Date and any similar lease entered into after the Issue Date by any Person may, in the sole discretion of the Issuer, be accounted for as an operating lease and not as a Capital Lease Obligation.

“Capital Stock” means:

(1)    in the case of a corporation, corporate stock;

(2)    in the case of an association or business entity, any and all shares, interests, participations, rights or other equivalents (however designated) of corporate stock;

(3)    in the case of a partnership or limited liability company, partnership interests (whether general or limited) or membership interests; and 

(4)    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, the issuing Person; 

but excluding from all of the foregoing any debt securities convertible into Capital Stock, whether or not such debt securities include any right of participation with Capital Stock.

“Cash Equivalents” means:

(1)    United States dollars;

(2)    securities issued or directly and fully guaranteed or insured by the United States government or any agency or instrumentality of the United States government (provided that the full faith and credit of the United States is pledged in support of those securities) having maturities of not more than one year from the date of acquisition;

(3)    money market deposits, certificates of deposit and eurodollar time deposits with maturities of one year or less from the date of acquisition, bankers’ acceptances with maturities not exceeding one year and overnight bank deposits, in each case, with any lender party to the Senior Credit Facilities or with any domestic commercial bank having capital and surplus in excess of $500.0 million and a Thomson Bank Watch Rating of “B” or better;

(4)    repurchase obligations with a term of not more than 30 days for underlying securities of the types described in clauses (2) and (3) above entered into with any financial institution meeting the qualifications specified in clause (3) above;

(5)    commercial paper having rated at least “A-2” or the equivalent thereof by S&P or at least “P-2” or the equivalent thereof by Moody’s (or, if neither S&P nor Moody’s shall be rating such securities, then from another nationally recognized rating service), in each case, maturing within two years after the date of acquisition;

(6)    marketable short term money market and similar securities rated at least “A” by S&P or “A-2” by Moody’s (or, if neither S&P nor Moody’s shall be rating such securities, then from another nationally recognized rating service) at the time of acquisition and in each case maturing within two years after the date of acquisition; 

6

 

 

(7)    other dollar denominated securities issued by any Person incorporated in the United States and that at the time of acquisition have an investment grade rating from Moody’s or S&P (or, if neither S&P nor Moody’s shall be rating such securities, then from another nationally recognized rating service) and maturing not more than two years after the date of acquisition; 

(8)    local currencies by the Issuer or any Restricted Subsidiary from time to time in the ordinary course of business;

(9)    money market funds that invest primarily in Cash Equivalents of the kinds described in clauses (1) through (8) of this definition; and

(10)    investment funds investing at least 90% of their assets in securities of the types described in clauses (1) through (8) of this definition.

“Change of Control” means the occurrence of any of the following:  

(1)    the direct or indirect sale, lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in one or a series of related transactions, of all or substantially all of the properties or assets of the Issuer and its Subsidiaries taken as a whole to any Person (including any “person” (as that term is used in Section 13(d)(3) of the Exchange Act)) other than a Permitted Holder or a Related Party of a Permitted Holder; or

(2)    the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any Person (including any “person” (as defined above)), other than (i) any employee benefit plan of such Person or its subsidiaries, any Person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan, or any Person formed as a holding company for the Issuer (in a transaction where the Voting Stock of the Issuer outstanding prior to such transaction is converted into or exchanged for the Voting Stock of the surviving or transferee Person constituting all or substantially all of the outstanding shares of such Voting Stock of such surviving or transferee Person (immediately after giving effect to such issuance)), (ii) any Person that has received Voting Stock of the Issuer in consideration of any acquisition or Investment, whether by purchase, merger, consolidation or otherwise, by the Issuer or any of its Subsidiaries, which Person is temporarily holding such Voting Stock pending distribution to other Persons (so long as, immediately after giving effect to such distribution, no Change of Control shall otherwise have occurred) and (iii) the Permitted Holders and their Related Parties, becomes the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Issuer, measured by voting power rather than number of shares.

“Change of Control Time” has the meaning assigned to that term in the definition of “Rating Decline.”  

“Change of Control Triggering Event” means both (1) a Change of Control and (2) a Rating Decline.  

“Clearstream” means Clearstream Banking, S.A.

7

 

 

“Consolidated EBITDA” means, for any Test Period, the sum (without duplication) of Consolidated Net Income for such Test Period; plus

(a)    in each case to the extent deducted in calculating such Consolidated Net Income:

(1)    provisions for taxes based on income or profits or capital gains, plus franchise or similar taxes, of Issuer and its Restricted Subsidiaries for such Test Period; 

(2)    Fixed Charges (net of interest income (other than interest income in respect of notes receivable and similar items)) of Issuer and its Restricted Subsidiaries for such Test Period, whether paid or accrued and whether or not capitalized; 

(3)    any cost, charge, fee or expense (including discounts and commissions,  and including fees and charges incurred in respect of letters of credit or bankers acceptance financings) (or any amortization of any of the foregoing) associated with any issuance (or proposed issuance) of debt, or equity or any refinancing transaction (or proposed refinancing transaction) or any amendment or other modification of any debt instrument; 

(4)    depreciation and amortization (including amortization of goodwill and other intangibles but excluding amortization of prepaid cash expenses that were paid in a prior Test Period); 

(5)    any Pre-Opening Expenses; 

(6)    amount of any restructuring costs, charges, accruals, expenses or reserves (including those relating to severance, relocation costs and one-time compensation charges), costs incurred in connection with any non-recurring strategic initiatives, other business optimization expenses (including incentive costs and expenses relating to business optimization programs and signing, retention and completion bonuses) (other than to the extent such items represent the reversal of any accrual or reserve added back in a prior period);

(7)    any unusual or non-recurring costs, charges, accruals, reserves or items of loss or expense (including, without limitation, losses on asset sales (other than asset sales in the ordinary course of business)) (other than to the extent such items represent the reversal of any accrual or reserve added back in a prior period); 

(8)    any charges, fees and expenses (or any amortization thereof) related to any acquisition, Investment or disposition (or any such proposed acquisition, Investment or disposition) (including amortization or write offs of debt issuance or deferred financing costs, premiums and prepayment penalties), in each case, whether or not successful;

(9)    any losses resulting from mark to market accounting of derivative instruments;

(10)    to the extent included in calculating such Consolidated Net Income, non-cash items decreasing such Consolidated Net Income for such Test Period, other than the accrual of revenue in the ordinary course of business, and other than any items which represent the reversal of any accrual of, or cash reserve for, anticipated cash charges for any prior Test Period subsequent to the Issue Date which was not added back to Consolidated EBITDA when accrued; minus

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(b)    each of the following:

(1)    to the extent included in calculating such Consolidated Net Income, non-cash items increasing such Consolidated Net Income for such Test Period, other than the accrual of revenue in the ordinary course of business, and other than any items which represent the reversal of any accrual of, or cash reserve for, anticipated cash charges for any prior Test Period subsequent to the Issue Date which was not added back to Consolidated EBITDA when accrued;

(2)    to the extent included in calculating such Consolidated Net Income, the amount of any gains resulting from mark to market accounting of derivative instruments; and

(3)    to the extent included in calculating such Consolidated Net Income, any unusual or nonrecurring items of income or gain to the extent increasing Consolidated Net Income for such Test Period; plus

(c)    the amount of cost savings, operating expense reductions, other operating improvements and synergies projected by Issuer in good faith to be realized as a result of specified actions taken or with respect to which steps have been initiated (in the good faith determination of Issuer) during such Test Period (or with respect to Specified Transactions, are reasonably expected to be initiated within eighteen (18) months of the closing date of the Specified Transaction), including in connection with any Specified Transaction (calculated on a Pro Forma Basis as though such cost savings, operating expense reductions, other operating improvements and synergies had been realized during the entirety of such Test Period), net of the amount of actual benefits realized during such Test Period from such actions; provided that within eighteen (18) months after the consummation of such Specified Transaction, restructuring or implementation of an initiative that is expected to result in such cost savings, expense reductions, other operating improvements or synergies, no cost savings, operating expense reductions, other operating improvements and synergies shall be added pursuant to this clause (c) to the extent duplicative of any expenses or charges otherwise added to Consolidated EBITDA, whether through a pro forma adjustment or otherwise, for such Test Period, and projected amounts (and not yet realized) may no longer be added in calculating Consolidated EBITDA pursuant to this clause (c) to the extent more than eighteen (18) months have elapsed after the specified action taken in order to realize such projected cost savings, operating expense reductions, other operating improvements and synergies; provided that the aggregate amount of additions made to Consolidated EBITDA for any Test Period pursuant to this clause (c) and clause (ii) under the definition of Pro Forma Basis shall not (i) exceed 20.0% of Consolidated EBITDA for such Test Period (after giving effect to this clause (c) and clause (ii) under the definition of Pro Forma Basis) or (ii) be duplicative of one another; plus

(d)    to the extent not included in Consolidated Net Income or, if otherwise excluded from Consolidated EBITDA due to the operation of clause (b)(3) above, the amount of insurance proceeds received during such Test Period or after such Test Period and on or prior to the date the calculation is made with respect to such Test Period, attributable to any property which has been closed or had operations curtailed for such Test Period; provided that such amount of insurance proceeds shall only be included pursuant to this clause (d) to the extent the amount of insurance proceeds plus Consolidated EBITDA attributable to such property for such Test Period (without giving effect to this clause (d)) does not exceed Consolidated EBITDA attributable to such property during the most recently completed four fiscal quarters for which financial results are available that such property was fully operational (or if such property has not been fully operational for four consecutive fiscal quarters for which financial results are available prior to such closure or curtailment, the Consolidated EBITDA attributable to such property during the Test Period prior to such closure or curtailment (for which financial results are available) annualized over four fiscal quarters); plus

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(e)    cash receipts (or any netting arrangements resulting in reduced cash expenditures) not representing Consolidated EBITDA or Consolidated Net Income in any Test Period to the extent non-cash gains relating to such income were deducted in the calculation of Consolidated EBITDA pursuant to paragraph (b) above for any previous Test Period and not added back.

Consolidated EBITDA will further be further adjusted (without duplication):

(A)    to include the Consolidated EBITDA of (i) any Person, property, business or asset (including a management agreement or similar agreement) (other than an Unrestricted Subsidiary) acquired by Issuer or any Restricted Subsidiary during such Test Period and (ii) any Unrestricted Subsidiary that is revoked and converted into a Restricted Subsidiary during such Test Period, in each case, based on the Consolidated EBITDA of such Person (or attributable to such property, business or asset) for such period (including the portion thereof occurring prior to such acquisition or revocation), determined as if references to the Issuer and its Restricted Subsidiaries in Consolidated Net Income and other defined terms therein were to such Person and its Subsidiaries;

(B)    to exclude the Consolidated EBITDA of (i) any Person, property, business or asset (other than an Unrestricted Subsidiary) sold, transferred or otherwise disposed of, closed or classified as discontinued operations by Issuer or any Restricted Subsidiary during such Test Period and (ii) any Restricted Subsidiary that is designated as an Unrestricted Subsidiary during such Test Period, in each case based on the actual Consolidated EBITDA of such Person for such period (including the portion thereof occurring prior to such sale, transfer, disposition, closing, classification or conversion), determined as if references to the Issuer and its Restricted Subsidiaries in Consolidated Net Income and other defined terms therein were to such Person and its Subsidiaries;

(C)    in the event of any Expansion Capital Expenditures that were opened for business during such Test Period, by multiplying the Consolidated EBITDA attributable to such Expansion Capital Expenditures (as determined by the Issuer in good faith) in respect of the first three (3) complete fiscal quarters following opening of the business representing such Expansion Capital Expenditures by:  (x) 4 (with respect to the first such quarter), (y) 2 (with respect to the first two such quarters), and (z) 4/3 (with respect to the first three such quarters) and, for the avoidance of doubt, excluding Consolidated EBITDA attributable to such Expansion Capital Expenditures during the quarter in which the business representing such Expansion Capital Expenditure opened (unless such business opened on the first day of a fiscal quarter);

(D)    in the event of any Development Project that was opened for business during such Test Period, by multiplying the Consolidated EBITDA attributable to such Development Project (as determined by the Issuer in good faith) in respect of the first three (3) complete fiscal quarters following opening of the business representing such Development Project by:  (x) 4 (with respect to the first such quarter), (y) 2 (with respect to the first two such quarters), and (z) 4/3 (with respect to the first three such quarters) and, for the avoidance of doubt, excluding Consolidated EBITDA attributable to such Development Project during the quarter in which such Development Project opened (unless such business opened on the first day of a fiscal quarter);  

(E)    in the event of any new operations of the Issuer or any Subsidiary that have been organically developed by Issuer or any Subsidiary (e.g., not an acquisition, but self-developed or self-constructed) that were opened during such Test Period, by multiplying the Consolidated EBITDA attributable to such new organically developed operations (as determined by the Issuer in good faith) in respect of the first three (3) complete fiscal quarters following opening of the business representing such organically developed operations by:  (x) 4 (with respect to the first such quarter), 

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(y) 2 (with respect to the first two such quarters), and (z) 4/3 (with respect to the first three such quarters) and, for the avoidance of doubt, excluding Consolidated EBITDA attributable to such new organically developed operations during the quarter in which such new organically developed operations opened (unless such business opened on the first day of a fiscal quarter); and

(F)    in any fiscal quarter during which a purchase of property that prior to such purchase was subject to any operating lease that will be terminated in connection with such purchase shall occur and during the three (3) following fiscal quarters, by increasing Consolidated EBITDA by an amount equal to the quarterly payment in respect of such lease (as if such purchase did not occur) times (a) four (4) (in the case of the quarter in which such purchase occurs), (b) three (3) (in the case of the quarter following such purchase), (c) two (2) (in the case of the second quarter following such purchase) and (d) one (1) (in the case of the third quarter following such purchase), all as determined on a consolidated basis for the Issuer and its Restricted Subsidiaries.

“Consolidated Leverage Ratio” means, with respect to any Person, as of any date of determination, the ratio of (x) (i) Consolidated Total Indebtedness of such Person as the applicable Calculation Date, after giving effect to all transactions to occur on the Calculation Date, including, without limitation, giving pro forma effect to any transactions with respect to Indebtedness consistent with paragraph (1) of the definition of “Fixed Charge Coverage Ratio,” minus (ii) Unrestricted Cash to (y) Consolidated EBITDA of such Person for the most recently ended four full fiscal quarters for which internal financial statements are available (the “reference period”) immediately preceding the Calculation Date.  For the avoidance of doubt, for purposes of this definition, “Consolidated EBITDA” shall be calculated after giving effect on a Pro Forma Basis, without duplication, to the items in clauses (A) — (F) of the definition thereof.

“Consolidated Net Income” shall mean, for any Test Period, the aggregate of the net income of the Issuer and its Restricted Subsidiaries for such Test Period, on a consolidated basis, determined in accordance with GAAP; provided that, without duplication:  

(1)    any gain or loss (together with any related provision for taxes thereon) realized in connection with (i) any asset sale or (ii) any disposition of any securities by such Person or any of its Restricted Subsidiaries shall be excluded;

(2)    any extraordinary gain or loss (together with any related provision for taxes thereon) shall be excluded; 

(3)    the net income of any Person that (i) is not a Restricted Subsidiary, (ii) is accounted for by the equity method of accounting, (iii) is an Unrestricted Subsidiary or (iv) is a Restricted Subsidiary (or former Restricted Subsidiary) with respect to which a Triggering Event has occurred following the occurrence and during the continuance of such Triggering Event shall be excluded; provided that Consolidated Net Income of the Issuer and its Restricted Subsidiaries shall be increased by the amount of dividends or distributions or other payments (including management fees) that are actually paid or are payable in cash to the Issuer or a Restricted Subsidiary thereof in respect of such period by such Persons (or to the extent converted into cash); 

(4)    the undistributed earnings of any Restricted Subsidiary of the Issuer that is not a Guarantor to the extent that, on the date of determination the payment of cash dividends or similar cash distributions by such Restricted Subsidiary (or loans or advances by such subsidiary to any parent company) are not permitted by the terms of any Contractual Obligation (other than under this Indenture) or Requirement of Law applicable to such Restricted Subsidiary shall be excluded, unless such restrictions with respect to the payment of cash dividends and other similar cash distributions have been waived; provided that Consolidated Net Income of the Issuer and its 

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Restricted Subsidiaries shall be increased by the amount of dividends or distributions or other payments (including management fees) that are actually paid or are payable in cash to the Issuer or a Restricted Subsidiary (not subject to such restriction) thereof in respect of such period by such Restricted Subsidiaries (or to the extent converted into cash); any goodwill or other asset impairment charges or other asset write-offs or write downs, including any resulting from the application of Accounting Standards Codification Nos.  350 and 360, and any expenses or charges relating to the amortization of intangibles as a result of the application of Accounting Standards Codification No. 805, shall be excluded;

(5)    any non-cash charges or expenses related to the repurchase of stock options to the extent not prohibited by this Indenture, and any non-cash charges or expenses related to the grant, issuance or repricing of, or any amendment or substitution with respect to, or otherwise in respect of, stock appreciation or similar rights, stock options, restricted stock, or other Equity Interests or other equity based awards or rights or equivalent instruments, shall be excluded; 

(6)    the cumulative effect of a change in accounting principles shall be excluded; 

(7)    any expenses or reserves for liabilities shall be excluded to the extent that the Issuer or any of its Restricted Subsidiaries is entitled to indemnification therefor under binding agreements; provided that any such liabilities for which the Issuer or any of its Restricted Subsidiaries is not actually indemnified shall reduce Consolidated Net Income for the period in which it is determined that the Issuer or such Restricted Subsidiary will not be indemnified (to the extent such liabilities would otherwise reduce Consolidated Net Income without giving effect to this clause (7)); 

(8)    losses, to the extent covered by insurance and actually reimbursed, or, so long as the Issuer has made a determination that there exists reasonable evidence that such amount will in fact be reimbursed by the insurer and only to the extent that such amount is (i) not denied by the applicable carrier in writing within 180 days and (ii) in fact reimbursed within 365 days of the date of such evidence (with a deduction for any amount so added back to the extent not so reimbursed within 365 days), expenses with respect to liability or casualty events or business interruption shall be excluded; 

(9)    gains and losses resulting solely from fluctuations in currency values and the related tax effects shall be excluded, and charges relating to Accounting Standards Codification Nos.  815 and 820 shall be excluded; and 

(10)    the net income (or loss) of a Restricted Subsidiary that is not a Wholly Owned Restricted Subsidiary shall be included in an amount proportional to the Issuer’s economic ownership interest therein.

“Consolidated Secured Leverage Ratio” means, with respect to any Person, as of any date of determination, the ratio of (x) (i) Consolidated Total Indebtedness of such Person as the applicable Calculation Date that is secured by a Lien on the assets or property of such Person or any of its Restricted Subsidiaries, after giving effect to all transactions to occur on the Calculation Date, including, without limitation, giving pro forma effect to any transactions with respect to Indebtedness consistent with paragraph (1) of the definition of “Fixed Charge Coverage Ratio,” minus (ii) Unrestricted Cash to (y) Consolidated EBITDA of such Person for the most recently ended four full fiscal quarters for which internal financial statements are available (the “reference period”) immediately preceding the Calculation Date.  For the avoidance of doubt, for purposes of this definition, “Consolidated EBITDA” shall be calculated after giving effect on a Pro Forma Basis, without duplication, to the items in clauses (A)—(E) of the definition thereof.

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“Consolidated Tangible Assets” of any Person as of any date means the Consolidated Total Assets of such Person and its Restricted Subsidiaries as of the, minus total goodwill and other intangible assets of such Person and its Restricted Subsidiaries reflected on such balance sheet, all calculated on a consolidated basis in accordance with GAAP.

“Consolidated Total Assets” of any Person as of any date means the total assets of such Person and its Restricted Subsidiaries in accordance with GAAP as of the most recent fiscal quarter end for which a consolidated balance sheet of such Person and its Restricted Subsidiaries is available.

“Consolidated Total Indebtedness” means, with respect to any Person as at any date of determination, (a) an amount equal to the aggregate amount of all outstanding Indebtedness of such Person and its Restricted Subsidiaries as of such date determined on a consolidated basis in accordance with GAAP, excluding (i) Indebtedness which has been repaid, Discharged, defeased (whether by covenant or legal defeasance), retired, repurchased or redeemed on or prior to such date or which a Person has irrevocably made a deposit to repay, defease (whether by covenant or legal defeasance), discharge, repurchase, retire or redeem or which a Person has called for redemption, defeasance (whether by covenant or legal defeasance), discharge, repurchase or retirement, on or prior to such date, (ii) Indebtedness of the type described in clause (5) of the definition thereof or any guarantee thereof and Indebtedness constituting banker’s acceptances, letters of credit and Hedging Obligations, and (iii) in the case of Indebtedness of a non-Wholly-Owned Restricted Subsidiary, to the extent Consolidated EBITDA (including through the calculation of Consolidated Net Income or due to non-controlling interests in such Restricted Subsidiary owned by a Person other than the Issuer or any of its Restricted Subsidiaries) did not include all of the net income of such Restricted Subsidiary, an amount of Indebtedness of such Restricted Subsidiary (provided that such Indebtedness is not otherwise guaranteed by the Issuer or another Restricted Subsidiary, if any, that guarantees the notes) directly proportional to the amount of net income of such Restricted Subsidiary not so included in Consolidated EBITDA (including through the calculation of Consolidated Net Income), less (b) (i) Unrestricted Cash and (ii) Development Expenses (x) of the type in clause (a) of the definition thereof and (y) to the extent paid using Unrestricted Cash, of the type in clause (b) in such definition thereof (excluding Development Expense that consist of Unrestricted Cash that was deducted from Consolidated Total Indebtedness pursuant to clause (b) above, if any).

“Contingent Obligation” means as to any Person, any obligation of such Person guaranteeing or intended to guarantee any Indebtedness (“primary obligations”) of any other Person (the “primary obligor”) in any manner, whether directly or indirectly, including any obligation of such Person, whether or not contingent, (a) to purchase any such primary obligation or any property constituting direct or indirect security therefor; (b) to advance or supply funds (i) for the purchase or payment of any such primary obligation or (ii) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor; (c) to purchase property, securities or services primarily for the purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation; or (d) otherwise to assure or hold harmless the holder of such primary obligation against loss in respect thereof; provided, however, that the term Contingent Obligation shall not include endorsements of instruments for deposit or collection in the ordinary course of business and any lease guarantees executed in the ordinary course of business.  The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is made (or, if less, the maximum amount of such primary obligation for which such Person may be liable pursuant to the terms of the instrument evidencing such Contingent Obligation) or, if not stated or determinable, the maximum reasonably anticipated potential liability in respect thereof (assuming such Person is required to perform thereunder) as determined by such Person in good faith.

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“continuing” means, with respect to any Default or Event of Default, that such Default or Event of Default has not been cured or waived.  

“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 Issuer.

“Contractual Obligation” means as to any Person, any provision of any security issued by such Person or of any mortgage, deed of trust, security agreement, pledge agreement, promissory note, indenture, credit or loan agreement, guaranty, securities purchase agreement, instrument, lease, contract, agreement or other contractual obligation to which such Person is a party or by which it or any of its Property is bound or subject.

“Core Property” means, collectively, (a) (i) Stratosphere Casino, Hotel & Tower, located in Las Vegas Nevada, (ii) Arizona Charlie’s Hotel & Casino – Boulder, located in Las Vegas, Nevada, (iii) Arizona Charlie’s Hotel & Casino – Decatur, located in Las Vegas, Nevada, (iv) Aquarius Casino Resort, located in Laughlin, Nevada, and (v) the Rocky Gap Property and (b) each casino or hotel property (for purposes of clarification, excluding Route Agreements or real property associated therewith) hereafter owned or operated by the Issuer or a Restricted Subsidiary (but not any such property that is (i) owned by an Unrestricted Subsidiary or (ii) so long as not owned by the Issuer or a Restricted Subsidiary, operated by an Unrestricted Subsidiary) whose individual Consolidated EBITDA (determined in a manner acceptable to the Administrative Agent) for the then most recently ended Test Period exceeds 5.0% of the Consolidated EBITDA of the Issuer and its Restricted Subsidiaries at the time of determination, excluding any real property or improvements that have been released from the liens of the collateral agent under the Senior Credit Facilities in accordance with the terms thereunder.

“Credit Facility,” or “Credit Facilities” means, one or more debt facilities (including, without limitation, the Senior Credit Facilities), indentures, notes, notes purchase agreements or commercial paper facilities, in each case, with banks or other institutional lenders or accredited investors or institutional investors providing for revolving credit loans, term loans, term debt, debt securities, receivables financing (including through the sale of receivables to such lenders or to special purpose entities formed to borrow from such lenders against such receivables) or letters of credit, in each case, as amended, restated, modified, renewed, extended, increased, refunded, replaced in any manner (whether upon or after termination or otherwise) or refinanced (including by means of sales of debt securities to institutional investors)in whole or in part from time to time.

“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.

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“Designated Non-Cash Consideration” means the fair market value of non-cash consideration received by the Issuer or any of its Restricted Subsidiaries in connection with an Asset Sale that is so designated as Designated Non-Cash Consideration pursuant to an Officer’s Certificate setting forth the basis of such valuation, executed by a financial officer of the Issuer, less the amount of cash or Cash Equivalents received in connection with a subsequent sale of or collection on such Designated Non-Cash Consideration.

“Development Expenses” means without duplication, the aggregate principal amount, not to exceed $75.0 million at any time, of (a) outstanding Indebtedness incurred after the Issue Date, the proceeds of which, at the time of determination, as certified in an Officer’s Certificate, are pending application and are required or intended to be used to fund and (b) amounts spent after the Issue Date (whether funded with the proceeds of Indebtedness, cash flow or otherwise) to fund, in each case, (i) Expansion Capital Expenditures of the Issuer or any Restricted Subsidiary, (ii) a Development Project or (iii) interest, fees or related charges with respect to such Indebtedness; provided that (A) the Issuer or the Restricted Subsidiary or other Person that owns assets subject to the Expansion Capital Expenditure or Development Project, as applicable, is diligently pursuing the completion thereof and has not at any time ceased construction of such Expansion Capital Expenditure or Development Project, as applicable, for a period in excess of 90 consecutive days (other than as a result of a force majeure event or inability to obtain requisite Gaming Approvals or other governmental authorizations, so long as, in the case of any such Gaming Approvals or other governmental authorizations, the Issuer or a Restricted Subsidiary or other applicable Person is diligently pursuing such Gaming Approvals or governmental authorizations), (B) no such Indebtedness or funded costs shall constitute Development Expenses with respect to an Expansion Capital Expenditure or a Development Project from and after the end of the first full fiscal quarter after the completion of construction of the applicable Expansion Capital Expenditure or Development Project or, in the case of a Development Project or Expansion Capital Expenditure that was not open for business when construction commenced, from and after the end of the first full fiscal quarter after the date of opening of such Development Project or Expansion Capital Expenditure, if earlier, and (C) in order to avoid duplication, it is acknowledged that to the extent that the proceeds of any Indebtedness referred to in clause (a) above have been applied (whether for the purposes described in clauses (i), (ii) or (iii) above or any other purpose), such Indebtedness shall no longer constitute Development Expenses under clause (a) above (it being understood, however, that any such application in accordance with clauses (i), (ii) or (iii) above shall, subject to the other requirements and limitations of this definition, constitute Development Expenses under clause (b) above).

“Development Project” means Investments, directly or indirectly, (a) in any Joint Ventures or Unrestricted Subsidiaries in which the Issuer or any of its Restricted Subsidiaries, directly or indirectly, has control or with whom it has a management, development or similar contract and, in the case of a Joint Venture, in which the Issuer or any of its Restricted Subsidiaries owns (directly or indirectly) at least 25% of the Equity Interest of such Joint Venture, or (b) in, or expenditures with respect to, casinos, “racinos,” full-service casino resorts, non-gaming resorts, distributed gaming applications or taverns or Persons that own casinos, “racinos,” full-service casino resorts, non-gaming resorts, distributed gaming applications or taverns in development or under construction that are not presently opening or operating) with respect to which the Issuer or any of its Restricted Subsidiaries will directly manage the development thereof or (directly or indirectly through Subsidiaries) the Issuer or any of its Restricted Subsidiaries has entered into a management, development or similar contract (or an agreement to enter into such a management, development or similar contract) and such contract remains in full force and effect at the time of such Investment, though it may be subject to regulatory approvals, in each case, used to finance, or made for the purpose of allowing such Joint Venture, Unrestricted Subsidiary, casino, “racino,” full service casino resort, non-gaming resort, distributed gaming application or tavern, as the case may be, to finance the purchase or other acquisition or construction of any fixed or capital assets or the refurbishment of existing assets or properties that develops, adds to or significantly improves the property of such Joint Venture, Unrestricted Subsidiary, casino, “racino,” full-service casino resort, non-gaming resort, distributed gaming application 

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or tavern and assets ancillary or related thereto, or the construction and development of a casino, “racino,” full-service casino resort, non-gaming resort, distributed gaming application, tavern or assets ancillary or related thereto and including Pre-Opening Expenses with respect to such Joint Venture, Unrestricted Subsidiary, casino, “racino,” full-service casino resort, non-gaming resort, distributed gaming application or tavern and other fees and payments to be made to such Joint Venture, Unrestricted Subsidiary or the owners of such casino, “racino,” full-service casino resort, nongaming resort, distributed gaming application or tavern.

“Discharged” means Indebtedness that has been defeased (pursuant to a contractual or legal defeasance) or discharged pursuant to the prepayment or deposit of amounts sufficient to satisfy such Indebtedness as it becomes due or irrevocably called for redemption (and regardless of whether such Indebtedness constitutes a liability on the balance sheet of the obligors thereof); provided, however, that the Indebtedness shall be deemed Discharged if the payment or deposit of all amounts required for defeasance or discharge or redemption thereof have been made even if certain conditions thereto have not been satisfied, so long as such conditions are reasonably expected to be satisfied within 95 days after such prepayment or deposit.

“Disqualified Stock” means any Capital Stock that, by its terms (or by the terms of any security into which it is convertible, or for which it is exchangeable, in each case, at the option of the holder of the Capital Stock), or upon the happening of any event, matures or is mandatorily redeemable, pursuant to a sinking fund obligation or otherwise, or redeemable at the option of the holder of the Capital Stock, in whole or in part, on or prior to the date that is 91 days after the date on which the Notes mature.  Notwithstanding the preceding sentence, any Capital Stock that would constitute Disqualified Stock solely because the holders of the Capital Stock have the right to require the Issuer to repurchase such Capital Stock upon the occurrence of a Change of Control, an Asset Sale or an event of loss will not constitute Disqualified Stock if the terms of such Capital Stock provide that the Issuer may not repurchase or redeem any such Capital Stock pursuant to such provisions unless such repurchase or redemption complies with Section 4.07 hereof.  The amount of Disqualified Stock deemed to be outstanding at any time for purposes of this Indenture will be the maximum amount that the Issuer and its Restricted Subsidiaries may become obligated to pay upon the maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified Stock, exclusive of accrued dividends.  Disqualified Stock shall not include any shares of Capital Stock, which, after the issuance thereof, become subject to mandatory redemption due to the actions or requirements of any Gaming Authority, to the extent that such issuance was made in compliance with applicable laws and, at the time of such issuance, such Capital Stock did not constitute Disqualified Stock.

“Dividing Person” has the meaning assigned to it in the definition of “Division.”

“Division” means the division of the assets, liabilities and/or obligations of a Person (the “Dividing Person”) among two or more Persons (whether pursuant to a “plan of division” or similar arrangement), which may or may not include the Dividing Person and pursuant to which the Dividing Person may or may not survive.  

“Division Successor” means any Person that, upon the consummation of a Division of a Dividing Person, holds all or any portion of the assets, liabilities and/or obligations previously held by such Dividing Person immediately prior to the consummation of such Division.  A Dividing Person which retains any of its assets, liabilities and/or obligations after a Division shall be deemed a Division Successor upon the occurrence of such Division.

“Domestic Subsidiary” means any Restricted Subsidiary of the Issuer (a) that was formed under the laws of the United States or any state of the United States or the District of Columbia and does not constitute an Immaterial Subsidiary or (b) that directly or indirectly, guarantees, or pledges any property or assets to secure Indebtedness incurred under a Credit Facility.

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“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 a public or private sale of Equity Interests of (a) the Issuer or (b) any Parent Entities, to the extent such net cash proceeds are actually contributed to the Issuer (in each case, other than Disqualified Stock and other than sales to a Subsidiary of the Issuer).

“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.

“Escrowed Indebtedness” means Indebtedness issued in escrow pursuant to customary escrow arrangements pending the release thereof.

“Existing First Lien Credit Agreement” means certain first lien credit agreement, dated as of October 20, 2017, by and among the Issuer, as the borrower, the guarantors party thereto and JPMorgan Chase Bank, N.A., as administrative agent and as collateral agent, as amended by the Incremental Joinder Agreement No. 1, dated as of June 11, 2018 and the Incremental Joinder Agreement No. 2, dated November 8, 2018.

“Existing Second Lien Credit Agreement” means that certain second lien credit agreement, dated October 20, 2017, by and among the Issuer, as the borrower, the guarantors party thereto and Credit Suisse AG, Cayman Islands Branch, as administrative agent and as collateral agent.  

“Expansion Capital Expenditures” means any capital expenditure by the Issuer or any of its Restricted Subsidiaries in respect of the purchase, construction or other acquisition of any fixed or capital assets or the refurbishment of existing assets or properties that, in the Issuer’s reasonable determination, adds to or significantly improves (or is reasonably expected to add to or significantly improve) the property of the Issuer and its Restricted Subsidiaries, excluding any such capital expenditures financed with Net Proceeds of an Asset Sale and excluding capital expenditures made in the ordinary course made to maintain, repair, restore or refurbish the property of the Issuer and its Restricted Subsidiaries in its then existing state or to support the continuation of such Person’s day to day operations as then conducted.

“Fair Market Value” means the value that would be paid by a willing buyer to an unaffiliated willing seller in a transaction not involving distress or necessity of either party.

“FF&E” means furniture, fixtures and equipment used in the ordinary course of business in the operation of a Permitted Business.

“FF&E Financing” means Indebtedness, the proceeds of which will be used solely to finance or refinance the acquisition or lease by the Issuer or a Restricted Subsidiary of the Issuer of FF&E.

“Fixed Charge Coverage Ratio” means with respect to any specified Person for any period, the ratio of the Consolidated EBITDA of such Person for such period to the Fixed Charges of such Person for such period.  In the event that the specified Person or any of its Restricted Subsidiaries incurs, assumes, guarantees, repays, repurchases, redeems, defeases or otherwise discharges any Indebtedness (other than ordinary working capital borrowings) or issues, repurchases or redeems preferred stock subsequent to the commencement of the period for which the Fixed Charge Coverage Ratio is being calculated and on or prior to the date on which the event for which the calculation of the Fixed Charge Coverage Ratio is made (the “Calculation Date”), then the Fixed Charge Coverage Ratio will be calculated on a Pro Forma Basis.

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“Fixed Charges” means, with respect to any specified Person for any period, the sum, without duplication, of:

(1)    the consolidated interest expense of such Person and its Restricted Subsidiaries for such period, whether paid or accrued, including, without limitation, amortization of original issue discount or premium, non-cash interest payments (but excluding any non-cash interest expense attributable to the movement in the mark-to-market valuation of Hedging Obligations or other derivative instruments pursuant to Accounting Standards Codification Nos.  815 and 820), the interest component of any deferred payment obligations, the interest component of all payments associated with Capital Lease Obligations, imputed interest with respect to Attributable Debt, commissions, discounts and other fees and charges incurred in respect of letter of credit or bankers’ acceptance financings, and net of the effect of all payments made or received pursuant to Hedging Obligations in respect of interest rates, but excluding any amortization or write-off of deferred financing costs or debt issuance costs and excluding commitment fees, underwriting fees, assignment fees, debt issuance costs or fees, redemption or prepayment premiums, and other transaction expenses or costs or fees consisting of Transaction Activities associated with undertaking, or proposing to undertake, any Transaction Activity; plus

(2)    the consolidated interest expense of such Person and its Restricted Subsidiaries that was capitalized during such period; plus

(3)    any interest expense on Indebtedness of another Person that is guaranteed by such Person or one of its Restricted Subsidiaries or secured by a Lien on assets of such Person or one of its Restricted Subsidiaries, whether or not such Guarantee or Lien is called upon; plus

(4)    the product of (a) all dividends, whether paid or accrued and whether or not in cash, on any series of preferred stock of such Person or any of its Restricted Subsidiaries, other than dividends on Equity Interests payable solely in Equity Interests of the Issuer (other than Disqualified Stock) or to the Issuer or a Restricted Subsidiary of the Issuer, times (b) a fraction, the numerator of which is one minus the then current combined, federal, state and local statutory tax rate of such Person, expressed as a decimal, in each case, determined on a consolidated basis in accordance with GAAP.

“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 in such other statements by such other entity as have been approved by a significant segment of the accounting profession, which are in effect on the Issue Date.  

“Gaming Approval” means any and all approvals, authorizations, permits, consents, rulings, orders or directives of any Governmental Authority (including, without limitation, any Gaming Authority) in favor of the Issuer or any of its Restricted Subsidiaries (a) necessary to enable the Issuer or any of its Restricted Subsidiaries to engage in, operate or manage the casino, gambling, horse racing or gaming business or otherwise continue to conduct, operate or manage such business substantially as is presently conducted, operated or managed or contemplated to be conducted, operated or managed following the Issue Date, (b) required by any Gaming Law or (c) necessary as is contemplated on the Issue Date, in connection with the offering of the Notes and other transactions contemplated hereby.

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“Gaming Authority” means any Governmental Authority with regulatory, licensing or permitting authority or jurisdiction over any gaming business or enterprise or horse racing business or enterprise or any Gaming Facility (including, without limitation, the following as of the Issue Date:  the Nevada Gaming Commission, the Nevada State Gaming Control Board, the Montana Gambling Control Division, the Illinois Gaming Board, the Maryland Lottery & Gaming Control Commission and the Pennsylvania Gaming Control Board), or with regulatory, licensing or permitting authority or jurisdiction over any gaming or racing operation (or proposed gaming or racing operation) owned, managed, leased or operated by the Issuer or any of its Restricted Subsidiaries.

“Gaming Facility” means any gaming establishment and other property or assets ancillary thereto or used in connection therewith, including, without limitation, any casinos, hotels, resorts, race tracks, off-track wagering sites, gambling taverns, distributed gaming locations, theaters, parking facilities, recreational vehicle parks, timeshare operations, retail shops, restaurants, other buildings, land, golf courses and other recreation and entertainment facilities, marinas, vessels, barges, ships and related equipment.

“Gaming Laws” means all applicable provisions of all:  (a) constitutions, treaties, statutes or laws governing Gaming Facilities and rules, regulations, codes and ordinances of, and all administrative or judicial orders or decrees or other laws pursuant to which, any Gaming Authority possesses regulatory, licensing or permit authority over gambling, gaming, racing or Gaming Facility activities conducted, operated or managed by the Issuer or any of its Restricted Subsidiaries within its jurisdiction; (b) Gaming Approvals; and (c) orders, decisions, determinations, judgments, awards and decrees of any Gaming Authority.

“Gaming License” means any Gaming Approval or other casino, gambling, horse racing or gaming license issued by any Gaming Authority in favor of the Issuer or any of its Restricted Subsidiaries covering any such activity at any Gaming Facility.

“Global Note Legend” means the legend set forth in Section 2.06(g)(2) hereof, which is required to be placed on all Global Notes issued under this Indenture.

“Global Notes” means, individually and collectively, each of the Restricted Global Notes and the Unrestricted Global Notes deposited with or on behalf of and registered in the name of the Depository or its nominee, 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, 2.06(b)(3), 2.06(b)(4), 2.06(d)(2) or 2.06(d)(3) hereof.

“Government Securities” means securities that are direct obligations of the United States of America for the timely payment of which its full faith and credit is pledged.

“Guarantee” means a guarantee other than by endorsement of negotiable instruments for collection in the ordinary course of business, direct or indirect, in any manner including, without limitation, by way of a pledge of assets or through letters of credit or reimbursement agreements in respect thereof, of all or any part of any Indebtedness (whether arising by virtue of partnership arrangements, or by agreements to keep-well, to purchase assets, goods, securities or services, to take or pay or to maintain financial statement conditions or otherwise).

“Guarantors” means any Subsidiary of the Issuer that executes a Note Guarantee in accordance with the provisions of this Indenture, and their respective successors and assigns, in each case, until the Note Guarantee of such Person has been released in accordance with the provisions of this Indenture.  

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“Hedging Obligations” of any Person means the obligations of such Person pursuant to (1) any interest rate swap agreement, interest rate cap agreement, interest rate collar agreement or other similar agreement or arrangement designed to protect such Person against fluctuations in interest rates, (2) agreements or arrangements designed to protect such Person against fluctuations in foreign currency exchange rates in the conduct of its operations, or (3) any forward contract, commodity swap agreement, commodity option agreement or other similar agreement or arrangement designed to protect such Person against fluctuations in commodity prices, in each case entered into in the ordinary course of business for bona fide hedging purposes and not for purposes of speculation.  

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

“Immaterial Subsidiary” means any Restricted Subsidiary that is designated by the Issuer as an “Immaterial Subsidiary” provided that no Restricted Subsidiary will be so designated, if, as of the date of its designation (or if already designated, as of any date following such designation) (x) such Restricted Subsidiary’s (1) Consolidated EBITDA for the then most recently ended Test Period is in excess of 2.5% of the Consolidated EBITDA of Issuer and its Restricted Subsidiaries or (2) Consolidated Total Assets as of the last day of the then most recently ended Test Period is in excess of 2.5% of the Consolidated Total Assets of the Issuer and its Restricted Subsidiaries on a consolidated basis and (y) when such Restricted Subsidiary is taken together with all other Immaterial Subsidiaries as of such date, all such Immaterial Subsidiaries’ (1) Consolidated EBITDA for the then most recently ended Test Period is in excess of 10.0% of the Consolidated EBITDA of the Issuer and its Restricted Subsidiaries or (2) Consolidated Total Assets as of the last day of the then most recently ended Test Period is in excess of 10.0% of the Consolidated Tangible Assets of the Issuer and its Restricted Subsidiaries on a consolidated basis, (ii) it owns any interest in any Core Property or any Equity Interests in any Guarantor, (iii) it owns any material assets which are used in connection with any Gaming Facility (other than a Gaming Facility with 200 gaming machines or less), or (iv) any Default or Event of Default has occurred and remains continuing.

“Indebtedness” means, with respect to any specified Person, any indebtedness of such Person (excluding accrued expenses and trade payables) whether or not contingent:

(1)    in respect of borrowed money; 

(2)    evidenced by bonds, Notes, debentures or similar instruments or letters of credit (or reimbursement agreements in respect thereof) other than obligations with respect to letters of credit to the extent such letters of credit have not been drawn upon or, if and to the extent drawn upon, are reimbursed no later than the third Business Day following receipt by such Person of a demand for reimbursement following payment on such letter of credit;

(3)    in respect of banker’s acceptances; 

(4)    representing Capital Lease Obligations or Attributable Debt in respect of sale and leaseback transactions;

(5)    representing the balance deferred and unpaid of the purchase price of any property or services (other than accounts payable or trade payables and other accrued liabilities arising in the ordinary course of business); or

(6)    representing any Hedging Obligations;

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if and to the extent any of the preceding items (other than letters of credit, Attributable Debt and Hedging Obligations) would appear as a liability upon a balance sheet of the specified Person prepared in accordance with GAAP.  In addition, the term “Indebtedness” includes all Indebtedness of others secured by a Lien, other than a Permitted Lien described in clause (27) of the definition thereof on any asset of the specified Person (whether or not such Indebtedness is assumed by the specified Person) and, to the extent not otherwise included, the Guarantee by the specified Person of any Indebtedness of any other Person.  Indebtedness shall be calculated without giving effect to the effects of Statement of Financial Accounting Standards No. 133 and related interpretations, as amended from time to time, to the extent such effects would otherwise increase or decrease an amount of Indebtedness for any purpose under this Indenture as a result of accounting for any embedded derivatives created by the terms of such Indebtedness.

“Indenture” means this Indenture, as amended or supplemented from time to time.

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

“Initial Notes” means the first $375,000,000 aggregate principal amount of Notes issued under this Indenture on the date hereof.

“Initial Purchasers” means J.P. Morgan Securities, LLC, Credit Suisse Securities (USA) LLC, Macquarie Capital (USA) Inc., Morgan Stanley & Co. LLC, Capital One Securities Inc., Citizens Capital Markets, Inc., and Fifth Third Securities, Inc.

“Insolvency or Liquidation Proceeding” means:  

(1)    any case commenced by or against the Issuer or any Guarantor under Title 11, U.S. Code or any similar federal or state law for the relief of debtors, any other proceeding for the reorganization, recapitalization or adjustment or marshalling of the assets or liabilities of the Issuer or any other grantor, any receivership or assignment for the benefit of creditors relating to the Issuer or any other grantor or any similar case or proceeding relative to the Issuer or any other grantor or its creditors, as such, in each case whether or not voluntary;

(2)    any liquidation, dissolution, marshalling of assets or liabilities or other winding up of or relating to the Issuer or any other grantor, in each case whether or not voluntary and whether or not involving bankruptcy or insolvency; or

(3)    any other proceeding of any type or nature in which substantially all claims of creditors of the Issuer or any other grantor are determined and any payment or distribution is or may be made on account of such claims.

“Internal Revenue Code” means the Internal Revenue Code of 1986, as amended.

“Investment Grade Rating” means a rating equal to or higher than Baa3 (or the equivalent) by Moody’s (or any successor to the rating agency business thereof) and BBB– (or the equivalent) by S&P (or any successor to the rating agency business thereof) or an equivalent rating by any other Rating Agency.  

“Investment Grade Status” means any time at which the ratings of the Notes by each of Moody’s (or any successor to the rating agency business thereof) and S&P (or any successor to the rating agency business thereof) are Investment Grade Ratings.

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“Investments” means, with respect to any Person, all direct or indirect investments by such Person in other Persons (including Affiliates) in the forms of loans (including Guarantees or other obligations), advances or capital contributions (excluding commission, travel and similar advances to officers and employees made in the ordinary course of business), purchases or other acquisitions for consideration of Indebtedness, Equity Interests or other securities, together with all items that are or would be classified as investments on a balance sheet prepared in accordance with GAAP.  If the Issuer or any Restricted Subsidiary of the Issuer sells or otherwise disposes of any Equity Interests of any direct or indirect Restricted Subsidiary of the Issuer such that, after giving effect to any such sale or disposition, such Person is no longer a Restricted Subsidiary of the Issuer, the Issuer will be deemed to have made an Investment on the date of any such sale or disposition equal to the Fair Market Value of the Issuer’s Investments in such Restricted Subsidiary that were not sold or disposed of in an amount determined as provided in the final paragraph of Section 4.07 hereof.  The acquisition by the Issuer or any Restricted Subsidiary of the Issuer of a Person that holds an Investment in a third Person will be deemed to be an Investment by the Issuer or such Restricted Subsidiary in such third Person in an amount equal to the Fair Market Value of the Investments held by the acquired Person in such third Person in an amount determined as provided in the final paragraph of Section 4.07 hereof.  Except as otherwise provided in this Indenture, the amount of an Investment will be the original cost of such Investment, plus the cost of all additions thereto and minus the amount of any portion of such Investment repaid to the Person making such Investment in cash as a repayment of principal or return of capital, as the case may be, but without giving effect to subsequent changes in value.

“Issue Date” means April 15, 2019.

“Joint Venture” means any Person, other than an individual or a wholly-owned Subsidiary of the Issuer, in which the Issuer or a Restricted Subsidiary or the Issuer (directly or indirectly) holds or acquires an ownership interest (whether by way of capital stock, partnership or limited liability company interest, or other evidence of ownership).

“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.

“Lien” means, with respect to any asset, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, whether or not filed, recorded or otherwise perfected under applicable law, including any conditional sale or other title retention agreement, or any lease in the nature thereof.

“Limited Condition Transaction” means any acquisition or other Investment, including by way of purchase, merger, amalgamation or consolidation or similar transaction, by the Issuer or one or more of its Restricted Subsidiaries, with respect to which the Issuer or any such Restricted Subsidiaries have entered into an agreement or is otherwise contractually committed to consummate and the consummation of which is not expressly conditioned upon the availability of, or on obtaining, third party financing.

“Moody’s” means Moody’s Investors Service, Inc.

“Net Proceeds” means the aggregate cash proceeds and Cash Equivalents received by the Issuer or any of its Restricted Subsidiaries in respect of any Asset Sale (including, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration received in any Asset Sale), net of (i) the direct costs relating to such Asset Sale, including, without limitation, legal, 

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accounting and investment banking fees, and sales commissions, and any relocation expenses incurred as a result of the Asset Sale, (ii) taxes paid or payable as a result of the Asset Sale, in each case, after taking into account any available tax credits or deductions and any tax sharing arrangements, (iii) amounts required to be applied to the repayment of Indebtedness, other than Indebtedness under a Credit Facility, secured by a Lien on the asset or assets that were the subject of such Asset Sale, (iv) all distributions to other holders of Equity Interests in Restricted Subsidiaries contractually required to be made as a result of such Asset Sale, (v) any reserve for adjustment or indemnification obligations in respect of the sale price of such asset or assets established in accordance with GAAP and (vi) amounts reserved, in accordance with GAAP, against any liabilities associated with the Asset Sale and related thereto, including pension and other retirement benefit liabilities, purchase price adjustments, liabilities related to environmental matters and liabilities under any indemnification obligations associated with such Asset Sale; provided that Net Proceeds shall include any cash payments received upon the reversal (without the satisfaction of any applicable liabilities in cash in a corresponding amount) of any reserve described in clause (vi) or, if such liabilities have not been satisfied in cash and such reserve is not reversed within eighteen (18) months after such Asset Sale, the amount of such reserve.

“Non-Recourse Debt” means Indebtedness as to which neither the Issuer nor any of its Restricted Subsidiaries (a) provides credit support of any kind (including any undertaking, agreement or instrument that would constitute Indebtedness) or (b) is directly or indirectly liable as a guarantor or otherwise.  Notwithstanding the foregoing, the Issuer and its Restricted Subsidiaries may enter into customary “completion guaranties” or “support agreements” in respect of construction projects undertaken by Unrestricted Subsidiaries so long as such “completion guaranties” or “support agreements:” (i) are unsecured or secured only by cash deposits; (ii) are subject to a fixed liability cap stated in United States dollars; and (iii) the aggregate amount of capped liability of such “completion guaranties” or “support agreements” shall not exceed $25.0 million at any one time outstanding.  For the avoidance of doubt, any such “completion guaranties” or “support agreements” that satisfy the requirements of the preceding sentence shall constitute “Non-Recourse Debt” for purposes of the definition of Unrestricted Subsidiary.

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

“Note Documents” means this Indenture, the Notes and the Note Guarantees.

“Note Guarantee” means the Guarantee by each Guarantor of the Issuer’s obligations under this Indenture and the Notes, executed pursuant to the provisions of this Indenture.

“Notes” means the $375,000,000 aggregate principal amount of the Issuer’s 7.625% Senior Notes due 2026.

“Obligations” means any principal, interest, penalties, fees, indemnifications, reimbursements, damages and other liabilities payable under the documentation governing any Indebtedness (including, without limitation, interest accruing at the then applicable rate provided in such documentation after the maturity of such Indebtedness and interest accruing at the then applicable rate provided in such documentation after the filing of a petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, relating to any debtor under such documentation, whether or not a claim for post-filing or post-petition interest is allowed in such proceeding).

“Offering Memorandum” means the final Offering Memorandum, dated April 8, 2019 related to the Notes offered hereby.

“Officer” means, with respect to any Person, 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, any Senior Vice President, any Vice President or any Assistant Vice President of such Person.

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“Officer’s Certificate” means a certificate signed on behalf of the Issuer by an Officer of the Issuer.

“Opinion of Counsel” means an opinion from legal counsel who is reasonably acceptable to the Trustee, that meets the requirements of Section 12.05 hereof.  The counsel may be an employee of or counsel to the Issuer, any Subsidiary of the Issuer or the Trustee.  

“Parent Entity” means any Person that is a direct or indirect parent company that owns, directly or indirectly, more than 50% of the total voting power of the Voting Stock of the Issuer.

“Pari Passu Debt” means any Indebtedness of the Issuer or any Guarantor that ranks equally in right of payment with the Notes or the Note Guarantee of such Guarantor, as applicable (without giving effect to collateral arrangements).  

“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).

“Permitted Business” means any business that is the same as, or reasonably related, ancillary or complementary to, any of the businesses in which the Issuer and its Restricted Subsidiaries are engaged on the Issue Date, including any gaming business and other business or activity that is incidental, related or complementary thereto, including without limitation any related hotel, hospitality, food, beverage, entertainment or transportation activities.

“Permitted Holder” means (a) Mr.  Blake Sartini, Mr.  Lyle Berman and Mr.  Neil Sell and, in each case, their immediate family members, lineal descendants, heirs, estates, trusts and entities related thereto, associated therewith or for the benefit thereof and (b) any Person with which one or more of the foregoing Persons set forth in clause (a) (such Persons described in clause, the “Group Investors”) form a “group” (within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act or any successor provision) so long as, in the case of this clause (b), the relevant Group Investors (taken as a whole) directly or indirectly beneficially own more than 50% of the relevant voting power of the issued and outstanding voting stock of the Issuer owned by such “group.”

“Permitted Investments” means:  

(1)    any Investment in the Issuer or in a Restricted Subsidiary of the Issuer;

(2)    any Investment in Cash Equivalents; 

(3)    any Investment by the Issuer or any Restricted Subsidiary of the Issuer in a Person, if as a result of such Investment:

(A)    such Person becomes a Restricted Subsidiary of the Issuer, including by means of a Division; or

(B)    such Person is merged, consolidated or amalgamated with or into, or Divided with, or transfers or conveys substantially all of its assets to, or is liquidated into, the Issuer or a Restricted Subsidiary of the Issuer;

(4)    any Investment made as a result of the receipt of non-cash consideration from an Asset Sale that was made pursuant to and in compliance with Section 4.10 hereof;

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(5)    any Investment the payment of which consists of Equity Interests (other than Disqualified Stock) of the Issuer or proceeds from the sale of such Equity Interests; provided that such Equity Interests will not increase the amount available for Investments under Section 4.07(a)(III)(B)(iii) hereof;

(6)    receivables owing to the Issuer or its Restricted Subsidiaries, if created or acquired in the ordinary course of business and payable or dischargeable in accordance with customary trade terms, including without limitation credit extended to customers;

(7)    any Investments received in compromise or resolution of (a) obligations of trade creditors or customers that were incurred in the ordinary course of business of the Issuer or any of its Restricted Subsidiaries, including pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; or (b) litigation, arbitration or other disputes;

(8)    Investments represented by Hedging Obligations; 

(9)    loans and advances to officers, directors and employees for payroll, business-related travel expenses, moving or relocation expenses, drawing accounts and other similar expenses, in each case, made in the ordinary course of business;

(10)    other loans or advances to officers, directors and employees in an aggregate principal amount not to exceed $10.0 million at any one time outstanding;

(11)    repurchases of the Notes; 

(12)    any guarantee of Indebtedness permitted to be incurred by Section 4.09 hereof other than a guarantee of Indebtedness of an Affiliate of the Issuer that is not a Restricted Subsidiary of the Issuer;

(13)    any Investment existing on, or made pursuant to binding commitments existing on, the Issue Date and any Investment consisting of an extension, modification or renewal of any Investment existing on, or made pursuant to a binding commitment existing on, the Issue Date; provided that the amount of any such Investment may be increased (a) as required by the terms of such Investment as in existence on the Issue Date or (b) as otherwise permitted under this Indenture;

(14)    Investments acquired after the Issue Date as a result of the acquisition by the Issuer or any Restricted Subsidiary of the Issuer of another Person, including by way of a merger, amalgamation or consolidation with or into the Issuer or any of its Restricted Subsidiaries in a transaction that is not prohibited by Section 5.01 hereof after the Issue Date to the extent that such Investments were not made in contemplation of such acquisition, merger, amalgamation or consolidation and were in existence on the date of such acquisition, merger, amalgamation or consolidation;

(15)    Investments resulting from the acquisition of a Restricted Subsidiary that was otherwise permitted by this Indenture, which Investments were held by such Restricted Subsidiary at the time of such acquisition and were not acquired in contemplation of such acquisition;

(16)    Investments consisting of the licensing or contribution of intellectual property pursuant to joint marketing arrangements with other Persons in the ordinary course of business;

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(17)    Investments required by a Gaming Authority or made in lieu of payment of a tax or in consideration of a reduction in tax;

(18)    Investments in prepaid expenses, negotiable instruments held for collection and lease, utility and workers' compensation, performance and similar deposits entered into as a result of the operations of the business in the ordinary course of business;

(19)    Investments in Joint Ventures established to develop or operate nightclubs, bars, restaurants, hotels, timeshares, recreation, exercise or gym facilities, or entertainment or retail venues or similar or related establishments or facilities within, in close proximity to or otherwise for the benefit of any Property of the Issuer and its Restricted Subsidiaries (as reasonably determined by Issuer) (provided that Investments pursuant to this clause (19) shall not exceed $25.0 million in the aggregate outstanding at any time, plus an amount equal to any returns (including dividends, interest, distributions, returns of principal, profits on sale, repayments, income and similar amounts) actually received in respect of any such Investment;

(20)    guarantee obligations of the Issuer or any of its Restricted Subsidiaries in respect of leases (other than Capital Lease Obligations);

(21)    Investments consisting of purchases and acquisitions of assets or services in the ordinary course of business and any earnest money deposits in connection therewith; 

(22)    the occurrence of a Reverse Trigger Event under any applicable Transfer Agreement;

(23)    payments with respect to any Qualified Contingent Obligations, so long as, at the time such Qualified Contingent Obligation was incurred or, if earlier, the agreement to incur such Qualified Contingent Obligations was entered into, such Investment was permitted under this Indenture; 

(24)    Investments in Joint Ventures or other non-wholly owned Subsidiaries of Issuer or any of its Restricted Subsidiaries taken together with all other Investments made pursuant to this clause (24) that are at that time outstanding not to exceed the sum of (i) the greater of (x) $35.0 million and (y) 20% of Consolidated EBITDA (in each case, determined on the date such Investment is made, with the fair market value of each Investment being measured at the time made and without giving effect to subsequent changes in value), plus (ii) any reduction in the amount of such Investments as provided in the definition of "Investments";

(25)    Investments in any Person having an aggregate Fair Market Value (measured on the date each such Investment was made and without giving effect to subsequent changes in value), when taken together with all other Investments made pursuant to this clause (25) that are at the time outstanding not to exceed the greater of (x) $125.0 million and (y) 60% of Consolidated EBITDA; provided, however, that if an Investment made pursuant to this clause (25) is made in any Person that is not a Restricted Subsidiary as of the date of the making of such Investment and such Person becomes a Restricted Subsidiary after such date, such Investment shall thereafter be deemed to have been made pursuant to clause (1) above and shall cease to have been made pursuant to this clause (25) for so long as such Person continues to be a Restricted Subsidiary; and 

(26)    any Investment so long as, at the time the Investment is made and after giving effect thereto, (i) no Event of Default has occurred and is continuing and (y) the Consolidated Leverage Ratio of the Issuer is less than or equal to 4.85 to 1.00 on a pro forma basis.

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“Permitted Liens” means:  

(1)    Liens securing Permitted Debt incurred pursuant to and outstanding under Section 4.09(b)(1);

(2)    (a) Liens to secure the performance of statutory obligations, surety or appeal bonds, performance bonds or other obligations of a like nature incurred in the ordinary course of business; (b) Liens incurred or deposits made in the ordinary course of business in connection with workers’ compensation, unemployment insurance and other types of insurance or social security or premiums with respect thereto (and Liens on proceeds of related policies); (c) Liens imposed by Gaming Laws or Gaming Authorities, and Liens on deposits made to secure Gaming License applications or to secure the performance of surety or other bonds; and (d) Liens securing obligations with respect to letters of credit issued in connection with any of the items referred to in this clause (2);

(3)    Liens in favor of the Issuer or the Guarantors;

(4)    Liens on property or assets (including Capital Stock) of a Person (or its Subsidiaries) existing at the time such Person is merged with or into or consolidated with the Issuer or any Subsidiary of the Issuer or otherwise becomes a Subsidiary of the Issuer and amendments or modifications thereto and replacements or refinancings thereof; provided that such Liens were not granted in connection with, or in anticipation of, such merger or consolidation or acquisition (except for Liens securing Indebtedness incurred pursuant to Section 4.09(b)(15)) and do not extend to any assets other than those of such Person (and its Subsidiaries) merged into or consolidated with the Issuer or the Subsidiary or which becomes a Subsidiary of the Issuer;

(5)    Liens (including extensions, renewals or replacements thereof) on property existing at the time of acquisition of the property by the Issuer or any Subsidiary of the Issuer; provided that (except for Liens securing Indebtedness incurred pursuant to Section 4.09(b)(15)) such Liens were in existence prior to, or not incurred in contemplation of, such acquisition;

(6)    Liens to secure Indebtedness (including Capital Lease Obligations and FF&E Financing) permitted by Section 4.09(b)(4) hereof covering only the assets acquired with or financed by such Indebtedness (and directly related assets, including proceeds (including insurance proceeds) and replacements thereof or assets which were financed with Indebtedness permitted by such clause that has been refinanced (including successive refinancings));

(7)    Liens existing on the Issue Date;

(8)    Liens for taxes, assessments or governmental charges, levies or claims that are not yet due and payable or delinquent or that are being contested in good faith by appropriate proceedings; provided that any reserve or other appropriate provision as is required in conformity with GAAP has been made therefor;

(9)    Liens imposed by law, such as carriers’, warehousemen’s, landlord’s and mechanics’ liens, in each case, incurred in the ordinary course of business;

(10)    survey exceptions, easements, encroachments, subdivisions or reservations of, or rights of others for, licenses, rights-of-way, sewers, electric lines, telegraph and telephone lines and other similar purposes, or zoning or other restrictions as to the use of real property that were not incurred in connection with Indebtedness and that do not in the aggregate materially adversely affect the value of said properties or materially impair their use in the operation of the business of such Person;

27

 

 

(11)    Liens created for the benefit of (or to secure) the Notes (or the Note Guarantees);

(12)    Liens to secure any Permitted Refinancing Indebtedness (and customary obligations related thereto); provided, however, that the new Lien is limited to all or part of the same property and assets that secured or, under the written agreements pursuant to which the original Lien arose, could secure the original Lien (plus improvements and accessions to, such property or proceeds or distributions thereof); 

(13)    Liens on insurance policies and proceeds thereof, or other deposits, to secure insurance premium financings;

(14)    filing of Uniform Commercial Code financing statements as a precautionary measure in connection with operating leases;

(15)    bankers’ Liens, rights of setoff, Liens arising out of judgments or awards not constituting an Event of Default and notices of lis pendens and associated rights related to litigation being contested in good faith by appropriate proceedings and for which adequate reserves have been made;

(16)    Liens on cash, Cash Equivalents or other property arising in connection with the defeasance, discharge or redemption of Indebtedness;

(17)    Liens on specific items of inventory or other goods (and the proceeds thereof) of any Person securing such Person’s obligations in respect of bankers’ acceptances issued or created in the ordinary course of business for the account of such Person to facilitate the purchase, shipment or storage of such inventory or other goods;

(18)    grants of software and other technology licenses in the ordinary course of business;

(19)    Liens arising out of conditional sale, title retention, consignment or similar arrangements for the sale of goods entered into in the ordinary course of business;

(20)    other Liens incidental to the conduct of the business of the Issuer and its Subsidiaries or the ownership of their Properties which were not created in connection with the incurrence of Indebtedness and do not in the aggregate materially detract from the value of such Properties or materially impair the use thereof;

(21)    Liens securing obligations to the Trustee pursuant to the compensation and indemnity provisions of this Indenture and Liens owing to an indenture trustee in respect of any other Indebtedness permitted to be incurred pursuant to Section 4.09 hereof;

(22)    pledges or deposits made in connection with any letter of intent or purchase agreement;

(23)    Liens to secure Indebtedness permitted by Section 4.09(b)(12) and Section 4.09(b)(20) hereof; provided that such Liens to secure Indebtedness permitted by Section 4.09(b)(20) do not encumber any property other than the Property of any Joint Venture and the Equity Interests in the applicable Joint Venture;

(24)    Liens securing Hedging Obligations that are incurred in the ordinary course of business (and not for speculative purposes);

28

 

 

(25)    Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the importation of goods in the ordinary course of business;

(26)    Liens securing customary cash management obligations not otherwise prohibited by this Indenture;

(27)    Liens solely on any cash earnest money deposits made by the Issuer or any of its Restricted Subsidiaries in connection with any letter of intent or purchase agreement permitted under this Indenture;

(28)    Liens on Equity Interests in an Unrestricted Subsidiary to the extent that such Liens secure Non-Recourse Debt or other Indebtedness of an Unrestricted Subsidiary or Joint Venture;

(29)    Permitted Vessel Liens; 

(30)    Liens with respect to obligations incurred at a time that the Issuer’s Consolidated Secured Leverage Ratio is not greater than 4.50 to 1.00 after giving pro forma effect to the incurrence of such obligation;

(31)    Liens created by the applicable Transfer Agreement;

(32)    licenses of intellectual property granted by the Issuer or any Restricted Subsidiary in the ordinary course of business and not interfering in any material respect with the ordinary conduct of the business of the Issuer and its Restricted Subsidiaries, taken as a whole;

(33)    Liens pursuant to leases entered into for the purpose of, or with respect to, operating or managing gaming facilities and related assets, which Liens are limited to the leased property under the applicable lease and granted to the landlord under such lease for the purpose of securing the obligations of the tenant under such lease to such landlord and (ii) Liens on cash and Cash Equivalents (and on the related escrow accounts or similar accounts, if any) required to be paid to the lessors (or lenders to such lessors) under such leases or maintained in an escrow account or similar account pending application of such proceeds in accordance with the applicable lease; and

(34)    Liens securing Indebtedness; provided, that the principal amount of such Indebtedness secured pursuant to this clause (34) together with all other Indebtedness then outstanding and incurred under this clause (34) does not to exceed the greater of (x) $35.0 million and (y) 20% of Consolidated EBITDA.

“Permitted Refinancing Indebtedness” means any Indebtedness of the Issuer or any of its Restricted Subsidiaries issued in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease or discharge other Indebtedness, Disqualified Stock or preferred stock of the Issuer or any of its Restricted Subsidiaries (other than intercompany Indebtedness); provided, that:

(1)    the principal amount (or accreted value, if applicable) of such Permitted Refinancing Indebtedness does not exceed the principal amount (or accreted value, if applicable) (or, if greater, the committed amount (only to the extent the committed amount could have been incurred or issued on the date of initial incurrence or issuance and was deemed incurred or issued at such time for the purposes of Section 4.09 hereof)) of the Indebtedness, Disqualified Stock or preferred stock renewed, refunded, refinanced, replaced, defeased or discharged (plus all accrued interest on the Indebtedness, all accrued or accumulated dividends on the Disqualified Stock or preferred stock, and the amount of all penalties, fees, expenses, costs, discounts and premiums incurred in connection therewith and any original issue discount or debt issuance costs with respect thereto); 

29

 

 

(2)    other than in connection with a refinancing of the Notes (including any redemption or repurchase) that is financed with Indebtedness under a Credit Facility, such Permitted Refinancing Indebtedness has a final maturity date later than the final maturity date of, and has a Weighted Average Life to Maturity that is (a) equal to or greater than the Weighted Average Life to Maturity of, the Indebtedness, Disqualified Stock or preferred stock being renewed, refunded, refinanced, replaced, defeased or discharged or (b) more than 90 days after the final maturity date of the Notes; 

(3)    to the extent the Permitted Refinancing Indebtedness refinances (a) Indebtedness that is subordinated in right of payment to the Notes, such Permitted Refinancing Indebtedness is subordinated in right of payment to, the Notes on terms at least as favorable, taken as a whole, to the Holders of Notes as those contained in the documentation governing the Indebtedness being refinanced or (b) Disqualified Stock or preferred stock, such Permitted Refinancing Indebtedness is Disqualified Stock or preferred stock, as applicable; and 

(4)    if the Indebtedness being renewed, refunded, refinanced, replaced, defeased or discharged is unsecured, such Permitted Refinancing Indebtedness is unsecured;

provided, however, that, unless otherwise permitted by this Indenture, Permitted Refinancing Indebtedness shall not include Indebtedness of the Issuer or any Restricted Subsidiary that refinances debt of a Subsidiary that is not a Guarantor.

“Permitted Vessel Liens” means maritime Liens on ships, barges or other vessels for damages arising out of a maritime tort, wages of a stevedore, when employed directly by a person listed in 46 U.S.C. Section 31341, crew’s wages, salvage and general average, whether now existing or hereafter arising and other maritime Liens which arise by operation of law during normal operations of such ships, barges or other vessels.

“Person” means any individual, corporation, partnership, Joint Venture, association, joint-stock company, trust, unincorporated organization, limited liability company or government or other entity.

“Pre-Opening Expenses” means, with respect to any fiscal period, the amount of expenses (including Fixed Charges) incurred with respect to capital projects which are classified as “pre-opening expenses” on the applicable financial statements of the Issuer and its Restricted Subsidiaries for such period, prepared in accordance with GAAP.

“Private Placement Legend” means the legend set forth in Section 2.06(f)(1)(A) hereof to be placed on all Notes issued under this Indenture except where otherwise permitted by the provisions of this Indenture.

“Pro Forma Basis” means (i) with respect to compliance with any test or covenant or calculation of any ratio under this Indenture in connection with any Specified Transaction (including the incurrence or repayment of Indebtedness in connection therewith), the determination or calculation of any applicable tests or ratios shall be calculated assuming that all Specified Transactions (and any increase or decrease in Consolidated EBITDA and the component financial definitions used therein attributable to any Specified Transaction) had occurred on the first day of the applicable Test Period and (ii) whenever pro forma effect is to be given to a Specified Transaction, the pro forma calculations shall be made in good faith by an Officer of Issuer and include, for the avoidance of doubt, the amount of cost savings, operating expense reductions, other operating improvements and synergies projected by Issuer in good faith to be realized as a result of specified actions taken or with respect to which steps have been initiated, or are reasonably expected to be initiated, within eighteen (18) months of the closing date of such Specified Transaction (in 

30

 

 

the good faith determination of Issuer) (calculated on a pro forma basis as though such cost savings, operating expense reductions, other operating improvements and synergies had been realized during the entirety of the applicable period), net of the amount of actual benefits realized during such period from such actions; provided that, with respect to any such cost savings, operating expense reductions, other operating improvements and synergies, the limitations and requirements set forth in clause (c) of the definition of Consolidated EBITDA (other than the requirement set forth in clause (c) of Consolidated EBITDA that steps have been initiated or taken) shall apply; provided, further, that the aggregate amount of additions made to Consolidated EBITDA for any Test Period pursuant to this clause (c) and clause (c) of the definition of “Consolidated EBITDA” shall not (i) exceed 20.0% of Consolidated EBITDA for such Test Period (after giving effect to this clause (c) and clause (c) of the definition of “Consolidated EBITDA”) or (ii) be duplicative of one another.

“Property” means, with respect to any Person, any interest of such Person in any land, property or asset, whether real, personal or mixed, or tangible or intangible, including, without limitation, Capital Stock in any other Person.

“QIB” means a “qualified institutional buyer” as defined in Rule 144A.

“Qualified Contingent Obligation” means Contingent Obligations in respect of (a) Indebtedness of any Joint Venture in which the Issuer or any of its Restricted Subsidiaries owns (directly or indirectly) at least 25% of the Equity Interest of such Joint Venture or (b) Indebtedness of casinos, “racinos,” full-service casino resorts, non-gaming resorts, distributed gaming applications or taverns (and properties ancillary or related thereto (or owners of casinos, “racinos,” full service casino resorts, non-gaming resorts, distributed gaming applications or taverns)) with respect to which Issuer or any of its Restricted Subsidiaries has (directly or indirectly through Subsidiaries) entered into a management, development or similar contract and such contract remains in full force and effect at the time such Contingent Obligations are incurred.

“Qualifying Equity Interests” means Equity Interests of the Issuer other than Disqualified Stock.

“Rating Agency” means (a) Moody’s or S&P or (b) if Moody’s or S&P or both shall not make a rating on the Notes publicly available, a nationally recognized statistical rating agency or agencies, as the case may be, selected by the Issuer which shall be substituted for Moody’s or S&P or both, as the case may be.

“Rating Decline” shall be deemed to have occurred if, at any date within 90 calendar days after the earlier of (x) the occurrence of a Change of Control, (y) the date of public disclosure of the occurrence of a Change of Control or (z) public notice of the intention of the Issuer to effect a Change of Control (the earlier of such events in clauses (x), (y) and (z), the “Change of Control Time”) (which 90-day period shall be extended for so long as the Issuer’s debt ratings are under publicly announced consideration for possible downgrading (or without an indication of the direction of a possible ratings change) by either Moody’s or S&P or their respective successors), the Notes do not have Investment Grade Status.

“Regulation S” means Regulation S promulgated under the Securities Act.

“Regulation S Global Note” means a permanent Global Note in the form of Exhibit A hereto bearing the Global Note Legend and the Private Placement Legend and deposited with or on behalf of and registered in the name of the Depositary or its nominee, issued in a denomination equal to the outstanding principal amount of the Notes initially sold in reliance on Regulation S.

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“Related Party” means:  

(1)    any controlling stockholder, majority owned Subsidiary, or immediate family member, including, without limitation, present, former and future spouses, sons-in-law and daughters-in-law (in the case of an individual) of any Permitted Holder; or

(2)    any trust, corporation, partnership, limited liability company or other entity, the beneficiaries, stockholders, partners, members, owners or Persons beneficially holding a majority (and controlling) interest of which consist of any one or more Permitted Holders and/or such other Persons referred to in the immediately preceding clause (1).

“Representative” shall mean J.P. Morgan Securities LLC, in its capacity as representative of the initial purchasers.

“Requirement of Law” means, as to any Person, any Law or determination of an arbitrator or any Governmental Authority, in each case applicable to or binding upon such Person or any of its Property or to which such Person or any of its Property is subject.

“Responsible Officer” means, when used with respect to the Trustee, any officer within the Corporate Trust Office 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 who shall have direct responsibility for the administration of this Indenture at the Corporate Trust Office of the Trustee, and also means, with respect to a particular corporate trust matter relating to this Indenture, any other officer to whom such matter is referred because of his knowledge of and familiarity with the particular subject.

“Restricted Definitive Note” means a Definitive Note bearing the Private Placement Legend.

“Restricted Global Note” means a Global Note bearing the Private Placement Legend.

“Restricted Investment” means an Investment other than a Permitted Investment.  

“Restricted Period” means the 40-day distribution compliance period as defined in Regulation S.

“Restricted Subsidiary” of a Person means any Subsidiary of the referent Person that is not an Unrestricted Subsidiary.

“Reverse Trigger Event” means the transfer of Equity Interests of any Restricted Subsidiary or any Gaming Facility from a trust or other similar arrangement to the Issuer or any of its Restricted Subsidiaries from time to time.

“Route Agreement” shall mean any written agreement entered into by the Issuer or any Restricted Subsidiary with another Person providing for the right to install, maintain and operate slot machines, video poker machines or other approved electronic gaming devices at premises owned or operated by such Person.

“Rule 144” means Rule 144 promulgated under the Securities Act.

“Rule 144A” means Rule 144A promulgated under the Securities Act.

“Rule 903” means Rule 903 promulgated under the Securities Act.

“Rule 904” means Rule 904 promulgated under the Securities Act.

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

“SEC” means the U.S. Securities and Exchange Commission.

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

“Senior Credit Facilities” means the revolving credit facility and term loan facility under that certain Existing First Lien Credit Agreement, including any related notes, guarantees, collateral documents, instruments and agreements executed in connection therewith, and, in each case, as amended, restated, modified, renewed, refunded, replaced in any manner (whether upon or after termination or otherwise) or refinanced (including by means of sales of debt securities) in whole or in part from time to time.  

“Significant Subsidiary” means any Restricted Subsidiary 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 Issue Date.

“Specified Transaction” means (a) any incurrence or repayment of Indebtedness (other than for working capital purposes or under a revolving facility), (b) any Investment that results in a Person becoming a Restricted Subsidiary or an Unrestricted Subsidiary, (c) any acquisition, (d) any Asset Sale or designation of a Restricted Subsidiary that results in a Restricted Subsidiary ceasing to be a Restricted Subsidiary of the Issuer or re-designation of an Unrestricted Subsidiary that results in an Unrestricted Subsidiary becoming a Restricted Subsidiary and (e) any acquisition or Investment constituting an acquisition of assets constituting a business unit, line of business or division of another Person.

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

“Stated Maturity” means, with respect to any installment of interest or principal on any series of Indebtedness, the date on which the payment of interest or principal was scheduled to be paid in the documentation governing such Indebtedness as of the Issue Date, and will 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” means, with respect to any specified Person:

(1)    any corporation, association or other business entity of which more than 50% of the total voting power of shares of Capital Stock entitled (without regard to the occurrence of any contingency and after giving effect to any voting agreement or stockholders’ agreement that effectively transfers voting power) to vote in the election of directors, managers or trustees of the corporation, association or other business entity is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of that Person (or a combination thereof); and

(2)    any partnership or limited liability company of which (a) more than 50% of the capital accounts, distribution rights, total equity and voting interests or general and limited partnership interests, as applicable, are owned or controlled, directly or indirectly, by such Person or one or more of the other Subsidiaries of that Person or a combination thereof, whether in the form of membership, general, special or limited partnership interests or otherwise, and (b) such Person or any Subsidiary of such Person is a controlling general partner or otherwise controls such entity.

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“Test Period” means, for any date of determination, the period of the four most recently ended consecutive fiscal quarters of the Issuer and its Restricted Subsidiaries for which quarterly or annual financial statements have been filed with the SEC.

“Transaction Activity” means any of the following (and, in each case, whether or not successful):  (a) the actual or attempted incurrence of any Indebtedness or the issuance of any Equity Interests by the Issuer or any Restricted Subsidiary, activities related to any such actual or attempted incurrence or issuance, or the issuance of commitments in respect thereof, (b) amending or modifying, or redeeming, refinancing, tendering for, refunding, defeasing (whether by covenant or legal defeasance), discharging, repaying, retiring or otherwise acquiring for value, any Indebtedness prior to the Stated Maturity thereof or any Equity Interests (including any premium, penalty, commissions or fees), (c) the termination of any Hedging Obligations or other derivative instruments or any fees paid to enter into any Hedging Obligations or other derivative instruments, or (d) any acquisition or disposition of any Person, property or assets permitted pursuant to the terms of this Indenture.

“Transfer Agreement” means any trust or similar arrangement required by any Gaming Authority from time to time with respect to the Equity Interests of any Restricted Subsidiary (or any Person that was a Restricted Subsidiary) or any Gaming Facility.

“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 (2) 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 April 15, 2022, provided, however, that if the period from the redemption date to April 15, 2022, 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.

“Triggering Event” means the transfer of shares of Equity Interests of any Restricted Subsidiary or any Gaming Facility into trusts or other similar arrangements required by any Gaming Authority from time to time.  

“Unrestricted Cash” means as of any date of determination, the greater of (a) (i) unrestricted cash and Cash Equivalents of the Issuer and its Restricted Subsidiaries plus (ii) cash and Cash Equivalents of Issuer and its Restricted Subsidiaries that are restricted in favor of the obligations under the Senior Credit Facilities (which may include cash and Cash Equivalents securing other Indebtedness secured by a lien on the collateral securing the Senior Credit Facilities) minus (iii) $40 million and (b) zero.

“Trustee” means Wilmington Trust, National Association, until a successor replaces it in accordance with the applicable provisions of this Indenture and thereafter means the successor serving hereunder.

“Unrestricted Definitive Note” means a Definitive Note that does not bear and is not required to bear the Private Placement Legend.

“Unrestricted Global Note” means a Global Note that does not bear and is not required to bear the Private Placement Legend.

“Unrestricted Subsidiary” means any Subsidiary of the Issuer that is designated by the Board of Directors of the Issuer as an Unrestricted Subsidiary pursuant to a resolution of the Board of Directors, but only to the extent that as of the time of such designation:

34

 

 

(1)    has no Indebtedness other than Non-Recourse Debt (other than “completion guaranties” or “support agreements” that constitute Non-Recourse Debt); and

(2)    such Subsidiary does not own Capital Stock or Indebtedness of or hold any Lien on any Property of the Issuer or any Subsidiary of the Issuer that is not a Subsidiary of the Subsidiary so designated.

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

“Voting Stock” of any specified Person as of any date means the Capital Stock of such Person that is at the time entitled to vote in the election of the Board of Directors of such Person.

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

(1)    the sum of the products obtained by multiplying (a) the amount of each then remaining installment, sinking fund, serial maturity or other required payments of principal, including payment at final maturity, in respect of the Indebtedness, by (b) the number of years (calculated to the nearest one-twelfth) that will elapse between such date and the making of such payment; by

(2)    the then outstanding principal amount of such Indebtedness.  

“Wholly‐Owned Restricted Subsidiary” of any specified Person means a Restricted Subsidiary of such Person all of the outstanding Capital Stock or other ownership interests of which (other than directors’ qualifying shares) will at the time be owned by such Person or by one or more Wholly‐Owned Restricted Subsidiaries of such Person.

	
Section 1.02
	
Other Definitions.

	
Term
	
Defined in
Section

	
“Advance Offer”
	
4.10(d)

	
“Advance Portion”
	
4.10(d)

	
“Affiliate Transaction”
	
4.11(a)

	
“Asset Sale Offer”
	
4.10(d)

	
“Authentication Order”
	
2.02

	
“Change of Control Offer”
	
4.15(a)

	
“Change of Control Payment”
	
4.15(a)

	
“Change of Control Payment Date”
	
4.15(a)(2)

	
“Covenant Defeasance”
	
8.03

	
“Covenant Suspension Event”
	
4.17(a)

	
“DTC”
	
2.03

	
“Event of Default”
	
6.01

	
“Excess Proceeds”
	
4.10(d)

	
“incur”
	
4.09(a)

	
“Legal Defeasance”
	
8.02

	
“Offer Amount”
	
3.10(b)

	
“Offer Period”
	
3.10(b)

	
“Paying Agent”
	
2.03

	
“Permitted Debt”
	
4.09(b)

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Term
	
Defined in
Section

	
“Payment Default”
	
6.01(5)(A)

	
“Purchase Date”
	
3.10(b)

	
“Registrar”
	
2.03

	
“Restricted Payments”
	
4.07

	
“Reversion Date”
	
4.17(b)

	
“Suspended Covenants”
	
4.17(a)

	
“Suspension Period”
	
4.17(b)

 

	
Section 1.03
	
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” or “shall” shall be interpreted to express a command; 

(6)provisions apply to successive events and transactions; and

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

	
Section 1.04
	
Financial Calculations for Limited Condition Transactions.

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When calculating the availability under any basket or ratio under this Indenture, in each case in connection with a Limited Condition Transaction and other transactions in connection therewith (including any incurrence or issuance of Indebtedness, Disqualified Stock or preferred stock and the use of proceeds thereof), the date of determination of such basket or ratio and of any Default or Event of Default may, at the option of the Issuer, be the date the definitive agreement(s) for such Limited Condition Transaction is entered into.  Any such ratio or basket shall be calculated on a Pro Forma Basis after giving effect to such Limited Condition Transaction and other transactions in connection therewith (including any incurrence or issuance of Indebtedness, Disqualified Stock or preferred stock and the use of proceeds thereof) as if they had been consummated at the beginning of the applicable period for purposes of determining the ability to consummate any such Limited Condition Transaction; provided that if the Issuer elects to make such determination as of the date of such definitive agreement(s), then (x) the Issuer shall be deemed to be in compliance with such ratios or baskets solely for purposes of determining whether the Limited Condition Transaction and other transactions in connection therewith (including any incurrence or issuance of Indebtedness, Disqualified Stock or preferred stock and the use of proceeds thereof), is permitted under this Indenture, and (y) such ratios or baskets shall not be tested at the time of consummation of such Limited Condition Transaction or related transactions; provided, further, that if the Issuer elects to have such determinations occur at the time of entry into such definitive agreement(s), any such transactions (including any incurrence or issuance of Indebtedness, Disqualified Stock or preferred stock and the use of proceeds thereof) shall be deemed to have occurred on the date the definitive agreement(s) is entered into and shall be deemed outstanding thereafter for purposes of calculating any ratios or baskets under this Indenture after the date of such definitive agreement(s) and before the consummation of such Limited Condition Transaction, unless such definitive agreement(s) is terminated or such Limited Condition Transaction or incurrence or issuance of Indebtedness, Disqualified Stock or preferred stock or such other transaction to which pro forma effect is being given does not occur.

ARTICLE 2
THE NOTES

	
Section 2.01
	
Form and Dating.

(a)General.  The Notes will be substantially in the form of Exhibit A hereto.  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 minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  The terms and provisions contained in the Notes will constitute, and are hereby expressly made, a part of this Indenture and the Issuer, 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)Additional Notes.  The aggregate principal amount of Notes that may be authenticated and delivered under this Indenture is unlimited.  Additional Notes ranking pari passu with the Initial Notes may be created and issued from time to time by the Issuer without notice to or consent of the Holders and shall be consolidated with and form a single class with the Initial Notes and shall have the same terms as to status, redemption or otherwise (other than issue date, issue price and, if applicable, the first Interest Payment Date and the first date from which interest will accrue) as the Initial Notes; provided that the Issuer’s ability to issue Additional Notes shall be subject to the Issuer’s compliance with Section 4.09.  If any Additional Notes are not fungible with the Notes for U.S. federal income tax or securities law purposes, such Additional Notes shall be issued as a separate series under this Indenture and shall have a separate CUSIP number and ISIN from the Notes.

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(c)Global Notes.  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).  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 direction of the Trustee, in accordance with instructions given by the holder thereof as required by Section 2.06 hereof.

	
Section 2.02
	
Execution and Authentication.

At least one Officer must sign the Notes for the Issuer 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.

The Trustee will, upon receipt of a written order signed by an Officer of the Issuer (an “Authentication Order”), authenticate Notes for original issue that may be validly issued under this Indenture, including any Additional Notes.  The aggregate principal amount of Notes outstanding at any time may not exceed the aggregate principal amount of Notes authorized for issuance by the Issuer 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 Issuer 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 Issuer.

	
Section 2.03
	
Registrar and Paying Agent.

The Issuer 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 Issuer 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 Issuer may change any Paying Agent or Registrar without notice to any Holder.  The Issuer will notify the Trustee in writing of the name and address of any Agent not a party to this Indenture.  If the Issuer fails to appoint or maintain another entity as Registrar or Paying Agent, the Trustee shall act as such.  The Issuer or any of its Subsidiaries may act as Paying Agent or Registrar.

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

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

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Section 2.04
	
Paying Agent to Hold Money in Trust.

The Issuer 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 of, premium on, if any, or interest, if any, on, the Notes, and will notify the Trustee of any default by the Issuer 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 Issuer 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 Issuer or a Subsidiary) will have no further liability for the money.  If the Issuer 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 Issuer, the Trustee will automatically serve as Paying Agent for the Notes without any further action.

	
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.  If the Trustee is not the Registrar, the Issuer 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 Notes.

	
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 will be exchanged by the Issuer for Definitive Notes if:

(1)the Issuer 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 Issuer within 120 days after the date of such notice from the Depositary; 

(2)the Issuer in its sole discretion determines that the Global Notes (in whole but not in part) should be exchanged for Definitive Notes 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 and the Depositary or the Issuer specifically requests such exchange.

Upon the occurrence of either of the preceding events in (1) or (2) above, Definitive Notes 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.  Beneficial interests in the Restricted Global Notes will be subject to restrictions on transfer comparable to those set forth herein to the extent required by the Securities Act.  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 Restricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in the same Restricted Global Note in accordance with the transfer restrictions set forth in the Private Placement Legend.  Beneficial interests in any Unrestricted Global Note may be transferred to Persons who take delivery thereof in the form of a beneficial interest in an Unrestricted 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, subject to Section 2.06(a), 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 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 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 shall be registered to effect the transfer or exchange referred to in (1) above;

(3)Transfer of Beneficial Interests to Another Restricted Global Note.  A beneficial interest in any Restricted Global Note may be transferred to a Person who takes delivery thereof in the form of a beneficial interest in another Restricted Global Note if the transfer complies with the requirements of Section 2.06(b)(2) above and the Registrar receives the following:

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(A)if the transferee will take delivery in the form of a beneficial interest in the 144A Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof;

(B)if the transferee will take delivery in the form of a beneficial interest in the Regulation S Global Note, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof; and

(4)Transfer and Exchange of Beneficial Interests in a Restricted Global Note for Beneficial Interests in an Unrestricted Global Note.  A beneficial interest in any Restricted Global Note may be exchanged by any Holder thereof for a beneficial interest in an Unrestricted Global Note or transferred to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note if the exchange or transfer complies with the requirements of Section 2.06(b)(2) above and the Registrar receives the following:

(i)if the Holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a beneficial interest in an Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(a) thereof; or

(ii)if the Holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of a beneficial interest in an Unrestricted Global Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (4), if the Issuer or the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Issuer to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

If any such transfer is effected pursuant to subparagraph (4) above at a time when an Unrestricted Global Note has not yet been issued, the Issuer shall issue and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee shall authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the aggregate principal amount of beneficial interests transferred pursuant to subparagraph (4) above.

Beneficial interests in an Unrestricted Global Note cannot be exchanged for, or transferred to Persons who take delivery thereof in the form of, a beneficial interest in a Restricted Global Note.

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

(1)Beneficial Interests in Restricted Global Notes to Restricted Definitive Notes.  If any Holder of a beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Restricted Definitive Note, then, subject to Section 2.06(a), upon receipt by the Registrar of the following documentation:

(A)if the Holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for a Restricted Definitive Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(a) thereof;

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(B)if such beneficial interest is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof;

(C)if such beneficial interest is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

(D)if such beneficial interest is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof;

(E)if such beneficial interest is being transferred to the Issuer or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or

(F)if such beneficial interest is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

the Trustee shall cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(g) hereof, and the Issuer shall execute and the Trustee shall authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)(1) shall be registered in such name or names and in such authorized denomination or denominations as the Holder of such beneficial interest shall instruct the Registrar through instructions from 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.  Any Definitive Note issued in exchange for a beneficial interest in a Restricted Global Note pursuant to this Section 2.06(c)(1) shall bear the Private Placement Legend and shall be subject to all restrictions on transfer contained therein.

(2)Beneficial Interests in Restricted Global Notes to Unrestricted Definitive Notes.  A Holder of a beneficial interest in a Restricted Global Note may exchange such beneficial interest for an Unrestricted Definitive Note or may transfer such beneficial interest to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note only if Definitive Notes are then issuable under Section 2.01(a) hereof the Registrar receives the following:

(i)if the Holder of such beneficial interest in a Restricted Global Note proposes to exchange such beneficial interest for an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(b) thereof; or

(ii)if the Holder of such beneficial interest in a Restricted Global Note proposes to transfer such beneficial interest to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (2), if the Issuer or the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Issuer to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

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Upon satisfaction of the conditions set forth in Section 2.06(b)(3) hereof and this Section 2.06(c)(2), the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(g) hereof, and the Issuer will execute and the Trustee will authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(2) will 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.  

(3)Beneficial Interests in Unrestricted Global Notes to Unrestricted Definitive Notes.  If any Holder of a beneficial interest in an Unrestricted Global Note proposes to exchange such beneficial interest for a Definitive Note or to transfer such beneficial interest to a Person who takes delivery thereof in the form of a Definitive Note, then, subject to Section 2.06(a) and upon satisfaction of the conditions set forth in Section 2.06(b)(2) hereof, the Trustee will cause the aggregate principal amount of the applicable Global Note to be reduced accordingly pursuant to Section 2.06(g) hereof, and the Issuer will execute and the Trustee will authenticate and deliver to the Person designated in the instructions a Definitive Note in the appropriate principal amount.  Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(3) will 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 will deliver such Definitive Notes to the Persons in whose names such Notes are so registered.  Any Definitive Note issued in exchange for a beneficial interest pursuant to this Section 2.06(c)(3) will not bear the Private Placement Legend.

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

(1)Restricted Definitive Notes to Beneficial Interests in Restricted Global Notes.  If any Holder of a Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note or to transfer such Restricted Definitive Notes to a Person who takes delivery thereof in the form of a beneficial interest in a Restricted Global Note, then, upon receipt by the Registrar of the following documentation:

(A)if the Holder of such Restricted Definitive Note proposes to exchange such Note for a beneficial interest in a Restricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (2)(b) thereof;

(B)if such Restricted Definitive Note is being transferred to a QIB in accordance with Rule 144A, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (1) thereof;

(C)if such Restricted Definitive Note is being transferred to a Non-U.S. Person in an offshore transaction in accordance with Rule 903 or Rule 904, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (2) thereof;

(D)if such Restricted Definitive Note is being transferred pursuant to an exemption from the registration requirements of the Securities Act in accordance with Rule 144, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(a) thereof;

(E)if such Restricted Definitive Note is being transferred to the Issuer or any of its Subsidiaries, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(b) thereof; or

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(F)if such Restricted Definitive Note is being transferred pursuant to an effective registration statement under the Securities Act, a certificate to the effect set forth in Exhibit B hereto, including the certifications in item (3)(c) thereof,

the Trustee will cancel the Restricted Definitive Note, increase or cause to be increased the aggregate principal amount of, in the case of clause (A) above, the appropriate Restricted Global Note, in the case of clause (B) above, the 144A Global Note, and in the case of clause (C) above, the Regulation S Global Note.

Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(1), the Trustee will cancel the Definitive Notes and increase or cause to be increased the aggregate principal amount of the applicable Restricted Global Note.

(2)Restricted Definitive Notes to Beneficial Interests in Unrestricted Global Notes.  A Holder of a Restricted Definitive Note may exchange such Note for a beneficial interest in an Unrestricted Global Note or transfer such Restricted Definitive Note to a Person who takes delivery thereof in the form of a beneficial interest in an Unrestricted Global Note only if the Registrar receives the following:

(i)if the Holder of such Definitive Notes proposes to exchange such Notes for a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(c) thereof; or

(ii)if the Holder of such Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the form of a beneficial interest in the Unrestricted Global Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (2), if the Issuer or the Registrar so requests or if the Applicable Procedures so require, an Opinion of Counsel in form reasonably acceptable to the Issuer to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

Upon satisfaction of the conditions of any of the subparagraphs in this Section 2.06(d)(2), the Trustee will cancel the Definitive Notes and increase or cause to be increased the aggregate principal amount of the Unrestricted Global Note.

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

If any such exchange or transfer from a Definitive Note to a beneficial interest is effected pursuant to subparagraphs (2) or (3) above at a time when an Unrestricted Global Note has not yet been issued, the Issuer will issue and, upon receipt of an Authentication Order in accordance with Section 2.02 hereof, the Trustee will authenticate one or more Unrestricted Global Notes in an aggregate principal amount equal to the principal amount of Definitive Notes so transferred.

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(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 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.  In addition, the requesting Holder must provide any additional certifications, documents and information, as applicable, required pursuant to the following provisions of this Section 2.06(e).

(1)Restricted Definitive Notes to Restricted Definitive Notes.  Any Restricted Definitive Note may be transferred to and registered in the name of Persons who take delivery thereof in the form of a Restricted Definitive Note if the Registrar receives the following:

(A)if the transfer will be made pursuant to Rule 144A, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (1) thereof;

(B)if the transfer will be made pursuant to Rule 903 or Rule 904, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications in item (2) thereof; and

(C)if the transfer will be made pursuant to any other exemption from the registration requirements of the Securities Act, then the transferor must deliver a certificate in the form of Exhibit B hereto, including the certifications, certificates and Opinion of Counsel required by item (3) thereof, if applicable.

(2)Restricted Definitive Notes to Unrestricted Definitive Notes.  Any Restricted Definitive Note may be exchanged by the Holder thereof for an Unrestricted Definitive Note or transferred to a Person or Persons who take delivery thereof in the form of an Unrestricted Definitive Note if the Registrar receives the following:

(i)if the Holder of such Restricted Definitive Notes proposes to exchange such Notes for an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit C hereto, including the certifications in item (1)(d) thereof; or

(ii)if the Holder of such Restricted Definitive Notes proposes to transfer such Notes to a Person who shall take delivery thereof in the form of an Unrestricted Definitive Note, a certificate from such Holder in the form of Exhibit B hereto, including the certifications in item (4) thereof;

and, in each such case set forth in this subparagraph (2), if the Issuer or the Registrar so requests, an Opinion of Counsel in form reasonably acceptable to the Issuer to the effect that such exchange or transfer is in compliance with the Securities Act and that the restrictions on transfer contained herein and in the Private Placement Legend are no longer required in order to maintain compliance with the Securities Act.

(3)Unrestricted Definitive Notes to Unrestricted Definitive Notes.  A Holder of Unrestricted Definitive Notes may transfer such Notes to a Person who takes delivery thereof in the form of an Unrestricted Definitive Note.  Upon receipt of a request to register such a transfer, the Registrar shall register the Unrestricted Definitive Notes pursuant to the instructions from the Holder thereof.

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(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)Private Placement Legend.

(A)Except as permitted by subparagraph (B) below, each Global Note and each Definitive Note (and all Notes issued in exchange therefor or substitution thereof) shall bear the legend in substantially the following form:

“THIS SECURITY HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE OR OTHER JURISDICTION.  NEITHER THIS SECURITY NOR ANY INTEREST OR PARTICIPATION HEREIN MAY BE REOFFERED, SOLD, ASSIGNED, TRANSFERRED, PLEDGED, ENCUMBERED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF SUCH REGISTRATION OR UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT.  THE HOLDER OF THIS SECURITY, BY ITS ACCEPTANCE HEREOF, AGREES ON ITS OWN BEHALF AND ON BEHALF OF ANY INVESTOR ACCOUNT FOR WHICH IT HAS PURCHASED SECURITIES, TO OFFER, SELL OR OTHERWISE TRANSFER SUCH SECURITY, PRIOR TO THE DATE THAT IS ONE YEAR (IN THE CASE OF THE 144A NOTES) OR 40 DAYS (IN THE CASE OF THE REGULATION S NOTES) AFTER THE LATER OF THE ORIGINAL ISSUE DATE OF THE NOTES AND THE LAST DATE ON WHICH THE COMPANY OR ANY AFFILIATE OF THE COMPANY WAS THE OWNER OF THIS NOTE (OR ANY PREDECESSOR OF THIS NOTE) ONLY (A) TO THE COMPANY OR ANY SUBSIDIARY THEREOF, (B) PURSUANT TO A REGISTRATION STATEMENT THAT HAS BEEN DECLARED EFFECTIVE UNDER THE SECURITIES ACT, (C) FOR SO LONG AS THE SECURITIES ARE ELIGIBLE FOR RESALE PURSUANT TO RULE 144A UNDER THE SECURITIES ACT, TO A PERSON IT REASONABLY BELIEVES IS A “QUALIFIED INSTITUTIONAL BUYER” AS DEFINED IN RULE 144A UNDER THE SECURITIES ACT THAT PURCHASES FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QUALIFIED INSTITUTIONAL BUYER TO WHOM NOTICE IS GIVEN THAT THE TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A UNDER THE SECURITIES ACT, (D) PURSUANT TO OFFERS AND SALES THAT OCCUR OUTSIDE THE UNITED STATES WITHIN THE MEANING OF REGULATION S UNDER THE SECURITIES ACT OR (E) PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT, OTHER THAN THE EXEMPTION PROVIDED BY RULE 144, SUBJECT TO THE COMPANY’S AND THE TRUSTEE’S RIGHTS PRIOR TO ANY SUCH OFFER, SALE OR TRANSFER PURSUANT TO CLAUSE (C), (D) OR (E) TO REQUIRE THE DELIVERY OF AN OPINION OF COUNSEL, CERTIFICATION AND/ OR OTHER INFORMATION SATISFACTORY TO EACH OF THEM.”

(B)Notwithstanding the foregoing, any Global Note or Definitive Note issued pursuant to subparagraphs (b), (c)(2), (c)(3), (d)(2), (d)(3), (e)(2) or (e)(3) of this Section 2.06 (and all Notes issued in exchange therefor or substitution thereof) will not bear the Private Placement Legend.

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(2)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 BE TRANSFERRED TO A SUCCESSOR DEPOSITARY WITH THE PRIOR WRITTEN CONSENT OF THE ISSUER.

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 ISSUER 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.”

(g)Cancellation and/or Adjustment of Global Notes.  At such time as all beneficial interests in a particular Global Note have been exchanged for Definitive Notes 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 is exchanged for or transferred to a Person who will take delivery thereof in the form of a beneficial interest in another Global Note or for Definitive Notes, the principal amount of Notes represented by such Global Note will be reduced accordingly and an endorsement will be made on the Schedule of Exchanges of Interests in such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such reduction; and if the beneficial 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, such other Global Note will be increased accordingly and an endorsement will be made on the Schedule of Exchanges of Interests in such Global Note by the Trustee or by the Depositary at the direction of the Trustee to reflect such increase.

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(h)General Provisions Relating to Transfers and Exchanges.

(1)To permit registrations of transfers and exchanges, the Issuer and Guarantors will execute and the Trustee will authenticate Global Notes, Note Guarantees 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 Issuer 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, 3.06, 3.10, 4.10, 4.15 and 9.05 hereof).  

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

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

(A)to issue, to register the transfer of or to exchange any Notes during a period beginning at the opening of business 15 days before the day of any selection of Notes for redemption under Section 3.02 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 between a record date and the next succeeding interest payment date.

(6)Prior to due presentment for the registration of a transfer of any Note, the Trustee, any Agent and the Issuer 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 payment of principal of and interest on such Notes and for all other purposes, and none of the Trustee, any Agent or the Issuer 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, certificates and Opinions of Counsel 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.

(9)Neither the Trustee nor the Registrar shall have any duty to monitor the Issuer’s compliance with or have any responsibility with respect to the Issuer’s compliance with any federal or state securities laws in connection with registrations of transfers and exchanges of the Notes.  Neither the Trustee nor the Registrar shall have any obligation or duty to monitor, determine or inquire as to compliance with any restrictions on transfer imposed under this Indenture or under applicable law with respect to any transfer of 

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any interest in any Notes (including any transfers between or among the Depositary’s participants or beneficial owners of interests in any Global Note) other than to require delivery of such certificates and other documentation, as is expressly required by, and to do so if and when expressly required by, the terms of this Indenture and to examine the same to determine substantial compliance as to form with the express requirements hereof.

(10)Neither the Trustee nor any Agent shall have any responsibility or liability for any actions taken or not taken by the Depositary.

	
Section 2.07
	
Replacement Notes.

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

Every replacement Note is an additional obligation of the Issuer and the Guarantors and will be entitled to all of the benefits of this Indenture equally and proportionately with all other Notes 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, a Note does not cease to be outstanding because the Issuer or an Affiliate of the Issuer holds the Note; however, Notes held by the Issuer or a Subsidiary of the Issuer shall not be deemed to be outstanding for purposes of Section 3.07(a) hereof.  

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 protected 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 Issuer, 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 have concurred in any direction, waiver or consent, Notes owned by the Issuer or any Guarantor, or by any Person directly or indirectly controlling or controlled by or under direct or indirect common control with the Issuer 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 that a Responsible Officer of the Trustee knows are so owned will be so disregarded.

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Section 2.10
	
Temporary Notes.

Until certificates representing Notes are ready for delivery, the Issuer 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 Issuer considers appropriate for temporary Notes and as may be reasonably acceptable to the Trustee.  Without unreasonable delay, the Issuer 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 Issuer 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 canceled Notes in accordance with its standard procedures (subject to the record retention requirement of the Exchange Act).  Certification of the cancellation of all canceled Notes will be delivered to the Issuer upon request.  The Issuer 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 Issuer defaults in a payment of interest on the 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 Issuer will notify the Trustee in writing of the amount of defaulted interest proposed to be paid on each Note and the date of the proposed payment.  The Issuer 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 Issuer (or, upon the written request of the Issuer, the Trustee in the name and at the expense of the Issuer) will mail or cause to be mailed to Holders 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 and ISIN Numbers.

The Issuer in issuing the Notes may use CUSIP, ISIN or other similar numbers, if then generally in use, and thereafter with respect to such series, the Trustee may use such numbers in any notice with respect to the Notes 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 (including any notice of redemption or exchange) and that reliance may be placed only on the other identification numbers printed on the Notes, and any such notice or notice of redemption shall not be affected by any defect in or omission of such numbers.  The Issuer will promptly notify the Trustee in writing of any change in the CUSIP, ISIN or other similar numbers.

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ARTICLE 3
REDEMPTION AND PREPAYMENT

	
Section 3.01
	
Notices to Trustee.

If the Issuer elects to redeem Notes pursuant to the optional redemption provisions of Section 3.07 hereof, it must furnish to the Trustee, at least 15 days but not more than 60 days before a redemption date, an Officer’s Certificate setting forth:

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

(2)the redemption date;

(3)the principal amount of Notes to be redeemed; and 

(4)the redemption price (or manner of calculation if not then known).

If the redemption price is not known at the time such notice is to be given, the actual redemption price, calculated as described in the terms of the Notes, will be set forth in an Officer’s Certificate delivered to the Trustee no later than two Business Days prior to the redemption date.

	
Section 3.02
	
Selection of Notes to Be Redeemed or Purchased.

If less than all of the Notes are to be redeemed or purchased in an offer to purchase at any time, the Trustee will select Notes for redemption or purchase on a pro rata basis (or, in the case of Notes issued in global form pursuant to Article 2 hereof, based on a method that most nearly approximates a pro rata selection or by lot, but in any case subject to the rules and procedures of the applicable Depositary) unless otherwise required by law or applicable stock exchange or depositary requirements.

In the event of partial redemption or purchase by lot, the particular Notes to be redeemed or purchased will be selected, unless otherwise provided herein, not less than 15 nor more than 60 days prior to the redemption or purchase date by the Trustee from the outstanding Notes not previously called for redemption or purchase.

The Trustee will promptly notify the Issuer 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 and portions of Notes selected will be in amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by such Holder shall be redeemed or purchased.  Except as provided in the preceding sentence, provisions of this Indenture that apply to Notes called for redemption or purchase also apply to portions of Notes called for redemption or purchase.

	
Section 3.03
	
Notice of Redemption.

Subject to the provisions of Sections 3.10 hereof, at least 15 days but not more than 60 days before a redemption date, the Issuer will mail or cause to be mailed, by first class mail (or send such notices electronically in accordance with the applicable procedures of the Depositary in the case of Notes in global form), a notice of redemption to each Holder whose Notes are to be redeemed at its registered address (with a copy to the Trustee), 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.

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

(1)the redemption date;

(2)the redemption price (or manner of calculation if not then known);

(3)if any Note 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 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 called for redemption must be surrendered to the Paying Agent to collect the redemption price;

(6)that, unless the Issuer defaults in making such redemption payment, interest on Notes called for redemption ceases to accrue on and after the redemption date;

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

(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; and

(9)any conditions to such redemption.

At the Issuer’s request, the Trustee will give the notice of redemption in the Issuer’s name and at its expense; provided, however, that the Issuer has delivered to the Trustee, at least 5 Business Days prior to the date on which notice is to be sent to Holders (unless a shorter time period shall be satisfactory to the Trustee), an Officer’s 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 along with a copy of the redemption notice to be delivered to the Holders.

	
Section 3.04
	
Effect of Notice of Redemption.

Subject to Section 3.07(f), once notice of redemption is given in accordance with Section 3.03 and any conditions thereto are satisfied, Notes called for redemption become irrevocably due and payable on the redemption date at the redemption price.  The notice, if given in a manner herein provided, shall be conclusively presumed to have been given, whether or not the Holder receives such notice.  In any case, failure to give such notice or any defect in the notice to the Holder of any Note designated for redemption in whole or in part shall not affect the validity of the proceedings for the redemption of any other Note.

Subject to Section 3.05, on and after the redemption date, interest ceases to accrue on Notes or portions of Notes called for redemption.

Any notice of redemption may be conditional in accordance with Section 3.07(f).

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Section 3.05
	
Deposit of Redemption or Purchase Price.

One Business Day prior to the redemption or purchase date, the Issuer will deposit with the Trustee or with the Paying Agent money sufficient to pay the redemption or purchase price of and accrued 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 Issuer any money deposited with the Trustee or the Paying Agent by the Issuer in excess of the amounts necessary to pay the redemption or purchase price of and accrued interest, if any, on all Notes to be redeemed or purchased.

If the Issuer complies with the provisions of the preceding paragraph, on and after the redemption or purchase date, 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 Issuer 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 3.06
	
Notes Redeemed or Purchased in Part.

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

	
Section 3.07
	
Optional Redemption.

(a)At any time prior to April 15, 2022, the Issuer may on any one or more occasions redeem up to 40% of the aggregate principal amount of Notes issued under this Indenture, upon not less than 15 nor more than 60 days’ prior written notice to the Holders and the Trustee, at a redemption price equal to 107.625% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption (subject to the rights of Holders of Notes on the relevant record date to receive interest on the relevant interest payment date) with the net cash proceeds of an Equity Offering; provided that:  

(1)at least 50% of the aggregate principal amount of Notes originally issued under this Indenture (excluding Notes held by the Issuer and its Subsidiaries) remains outstanding immediately after the occurrence of such redemption, unless all such Notes are redeemed substantially concurrently with the redemption of Notes pursuant to this paragraph; and 

(2)the redemption occurs prior to 180 days after the date of the closing of such Equity Offering.

(b)At any time prior to April 15, 2022, the Issuer, at its option, may on one or more occasions redeem all or a part of the Notes, upon not less than 15 nor more than 60 days’ prior written notice to the Holders and the Trustee, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus the Applicable Premium as of, and accrued and unpaid interest, if any, to, but not including, the date of redemption, subject to the rights of Holders on the relevant record date to receive interest due on the relevant payment date.

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(c)Except pursuant to the two preceding paragraphs, the Notes will not be redeemable at the Issuer’s option prior to April 15, 2022.

(d)On or after April 15, 2022, the Issuer may on any one or more occasions redeem all or a part of the Notes upon not less than 15 nor more than 60 days’ prior written notice to the Holders and the Trustee, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if any on the Notes redeemed to, but not including, the applicable date of redemption, if redeemed during the 12-month period beginning on April 15 of the years indicated below (subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date):

	
Year
	
Percentage

	
2022
	
103.813%

	
2023
	
101.906%

	
2024 and thereafter 
	
100.000%

 

Unless the Issuer defaults in the payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

(e)Any redemption pursuant to this Section 3.07 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

(f)Any redemption notice in connection with this Section 3.07 (including upon an Equity Offering, financing transaction, or in connection with a transaction (or series of related transactions) or an event that constitutes a Change of Control) may, at the Issuer’s discretion, be given prior to the completion or the occurrence thereof and any such redemption or notice may, at the Issuer’s discretion, be subject to one or more conditions precedent, including, but not limited to, completion or occurrence of the related transaction or event, as the case may be.  In addition, if such redemption or purchase is subject to the satisfaction of one or more conditions precedent, such notice shall describe each such condition, and if applicable, shall state that, in the Issuer’s discretion, the redemption date may be delayed until such time (including more than 60 days after the date the notice of redemption was mailed or delivered, including by electronic transmission) as any or all such conditions shall be satisfied, or such redemption or purchase may not occur and such notice may be rescinded in the event that any or all such conditions shall not have been satisfied by the redemption date, or by the redemption date as so delayed, or such notice may be rescinded at any time in the Issuer’s discretion if in the good faith judgment of the Issuer any or all of such conditions will not be satisfied.  In addition, the Issuer may provide in such notice that payment of the redemption price and performance of the Issuer’s obligations with respect to such redemption may be performed by another Person.

(g)The Issuer may acquire Notes by means other than a redemption, whether by tender offer, open market purchases, negotiated transactions or otherwise, in accordance with applicable securities laws, so long as such acquisition does not otherwise violate the terms of this Indenture.

	
Section 3.08
	
Gaming Redemption

Each holder, by accepting a Note, shall be deemed to have agreed that, if any Gaming Authority requires that a person who is a holder or the beneficial owner of Notes be registered, licensed, qualified or found suitable under applicable Gaming Laws, such Holder or beneficial owner, as the case may be, shall apply for a license, qualification or a finding of suitability in accordance with such Gaming Laws and shall cooperate with the requests of any Gaming Authority for information, documentation, and/or testimony.  If such Person (a) fails to apply for a license, qualification or a finding of suitability, or (b) is notified by a Gaming Authority that it will not be licensed, qualified or found suitable, then the Issuer shall have the right, at its option:

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(a)to require such Person to dispose of its Notes or beneficial interest therein within 30 days of receipt of notice of the Issuer’s election or such earlier date as may be requested or prescribed by such Gaming Authority; or

(b)to redeem such Notes, upon not less than 30 days’ prior written notice to the Holders and the Trustee (or such earlier date as may be requested or prescribed by such Gaming Authority), at a redemption price equal to either; 

(1)the lesser of:

(A)the Person’s cost for such Notes, plus accrued and unpaid interest, if any, to the earlier of the date of redemption or the date of the finding of unsuitability or failure to comply; and

(B)100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the earlier of the date of redemption or the date of the finding of unsuitability, denial of a license as qualification, or other failure to comply; or

(2)such other amount as may be required by applicable law or order of the Gaming Authority.  

(c)The Issuer shall notify the Trustee in writing of any such disqualified holder status or redemption as soon as practicable.  Neither the Issuer nor the Trustee shall be responsible for any costs or expenses any Holder or beneficial owner may incur in connection with its registration, application for a license, qualification or a finding of suitability, or any renewal or continuation of the foregoing or compliance with any other requirement of a Gaming Authority.  Those costs and expenses will be the obligations of the Holder or beneficial owner, as applicable.  In addition, any holder or beneficial owner, as applicable, required to be licensed, qualified or found suitable under applicable Gaming Laws must pay all investigative fees and costs of any Gaming Authority in connection with such license, qualification, finding of suitability or application therefor.

	
Section 3.09
	
Mandatory Redemption.

The Issuer is not required to make mandatory redemption (other than as required by Section 3.08) or sinking fund payments with respect to the Notes.

	
Section 3.10
	
Offer to Purchase by Application of Excess Proceeds.

(a)In the event that, pursuant to Section 4.10 hereof, the Issuer is required to commence an Asset Sale Offer, it will follow the procedures specified below.

(b)The Asset Sale Offer shall be made to all Holders (with a copy to the Trustee) and all Holders of other Pari Passu Debt containing provisions similar to those set forth in this Indenture with respect to offers to purchase, prepay or redeem with the proceeds of Asset Sales.  The Asset Sale Offer will remain open for a period of at least 20 Business Days following its commencement and not more than 30 Business Days, except to the extent that a longer period is required by applicable law (the “Offer Period”).  No later than three Business Days after the termination of the Offer Period (the “Purchase Date”), the Issuer will apply all Excess Proceeds (the “Offer Amount”) to the purchase of Notes and such other Pari Passu Debt (on a pro rata basis based on the principal amount of Notes and such other Pari Passu Debt surrendered, if applicable) or, if less than the Offer Amount has been tendered, all Notes and other Pari Passu Debt tendered in response to the Asset Sale Offer.  Payment for any Notes so purchased will be made in the same manner as interest payments are made.

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(c)If the Purchase Date is on or after an interest record date and on or before the related interest payment date, any accrued and unpaid interest, if any, will be paid to the Person in whose name a Note is registered at the close of business on such record date, and no additional interest will be payable to Holders who tender Notes pursuant to the Asset Sale Offer.

(d)Upon the commencement of an Asset Sale Offer, the Issuer will send, by first class mail (or in the case of Notes in global form, electronically in accordance with the applicable procedures of the Depositary), a notice to the Trustee and each of the Holders.  The notice will contain all instructions and materials necessary to enable such Holders to tender Notes pursuant to the Asset Sale Offer.  The notice, which will govern the terms of the Asset Sale Offer, will state:

(1)that the Asset Sale Offer is being made pursuant to this Section 3.10 and Section 4.10 hereof and the length of time the Asset Sale Offer will remain open;

(2)the Offer Amount, the purchase price and the Purchase Date;

(3)that any Note not tendered or accepted for payment will continue to accrue interest;

(4)that, unless the Issuer defaults in making such payment, any Note accepted for payment pursuant to the Asset Sale Offer will cease to accrue interest after the Purchase Date;

(5)that Holders electing to have a Note purchased pursuant to an Asset Sale Offer may elect to have Notes purchased in minimum denominations of $2,000 or an integral multiple of $1,000 in excess thereof;

(6)that Holders electing to have Notes purchased pursuant to any Asset Sale Offer will be required to surrender the Note, with the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the Issuer, a Depositary, if appointed by the Issuer, or a Paying Agent at the address specified in the notice at least three days before the Purchase Date;

(7)that Holders will be entitled to withdraw their election if the Issuer, the Depositary or the Paying Agent, as the case may be, receives, not later than the expiration of the Offer Period, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of the Note the Holder delivered for purchase and a statement that such Holder is withdrawing his election to have such Note purchased;

(8)that, if the aggregate principal amount of Notes and other Pari Passu Debt surrendered by Holders thereof exceeds the Offer Amount, the Issuer will select the Notes and other Pari Passu Debt to be purchased on a pro rata basis based on the principal amount of Notes and such other Pari Passu Debt surrendered (with such adjustments as may be deemed appropriate by the Issuer so that only Notes in minimum denominations of $2,000, or an integral multiple of $1,000 in excess thereof, will be left outstanding); and

(9)that Holders whose Notes were purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered (or transferred by book-entry transfer).

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On or before the Purchase Date, the Issuer will, to the extent lawful, accept for payment, on a pro rata basis to the extent necessary, the Offer Amount of Notes or portions thereof tendered pursuant to the Asset Sale Offer, or if less than the Offer Amount has been tendered, all Notes tendered, and will deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating that such Notes or portions thereof were accepted for payment by the Issuer in accordance with the terms of this Section 3.10.  The Issuer, the Depositary or the Paying Agent, as the case may be, will promptly (but in any case not later than five days after the Purchase Date) mail or deliver to each tendering Holder an amount equal to the purchase price of the Notes tendered by such Holder and accepted by the Issuer for purchase, and the Issuer will promptly issue a new Note, and the Trustee, upon written request from the Issuer, will authenticate and mail or deliver (or cause to be transferred by book entry) such new Note to such Holder, in a principal amount equal to any unpurchased portion of the Note surrendered.  Any Note not so accepted shall be promptly mailed or delivered by the Issuer to the Holder thereof.  The Issuer will publicly announce the results of the Asset Sale Offer on the Purchase Date.

Other than as specifically provided in this Section 3.10, any purchase pursuant to this Section 3.10 shall be made pursuant to the provisions of Sections 3.01 through 3.06 hereof.

ARTICLE 4
COVENANTS

	
Section 4.01
	
Payment of Notes.

The Issuer will pay or cause to be paid the principal of, premium on, if any, and interest on, the Notes on the dates and in the manner provided in the Notes.  Principal, premium, if any, and interest will be considered paid on the date due if the Paying Agent, if other than the Issuer or a Subsidiary thereof, holds as of 10:00 a.m. New York City Time on the due date money deposited by the Issuer in immediately available funds and designated for and sufficient to pay all principal, premium, if any, and interest, if any, then due.

The Issuer will pay interest (including post-petition interest in any proceeding under the Bankruptcy Code) on overdue principal at a rate that is 1% per annum higher than the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including post-petition interest in any proceeding under the Bankruptcy Code) on overdue installments of interest, if any (without regard to any applicable grace period), 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.

	
Section 4.02
	
Maintenance of Office or Agency.  

The Issuer will maintain 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 Issuer in respect of the Notes and this Indenture may be made.  The Issuer 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 Issuer 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 at the Corporate Trust Office of the Trustee.

The Issuer 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 Issuer of its obligation to maintain an office or agency for such purposes.  The Issuer 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.

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The Issuer hereby designates the Corporate Trust Office of the Trustee as one such office or agency of the Issuer in accordance with Section 2.03 hereof; provided that no office of the Trustee shall be an office or agency of the Issuer for purposes of service of legal process against the Issuer or any Guarantor.  

	
Section 4.03
	
Reports.  

Whether or not required by the SEC, so long as any Notes are outstanding, the Issuer will furnish to the Trustee and Holders:  

(a)within 90 days after the end of each fiscal year, annual reports of the Issuer containing the information that would have been required to be contained in an Annual Report on Form 10-K under the Exchange Act if the Issuer had been a reporting company under the Exchange Act, including (A) “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and (B) audited financial statements prepared in accordance with GAAP;

(b)within 45 days after the end of each of the first three fiscal quarters of each fiscal year, quarterly reports of the Issuer containing the information that would have been required to be contained in a Quarterly Report on Form 10-Q under the Exchange Act if the Issuer had been a reporting company under the Exchange Act, including (A) “Management’s Discussion and Analysis of Financial Condition and Results of Operations,” and (B) unaudited quarterly financial statements prepared in accordance with GAAP and reviewed pursuant to Public Company Accounting Oversight Board Auditing Standards No. 4105 (or any successor provision); and

(c)within five Business Days after the occurrence of each event that would have been required to be reported in a Current Report on Form 8-K under the Exchange Act if the Issuer had been a reporting company under the Exchange Act, current reports containing substantially all of the information that would have been required to be contained in a Current Report on Form 8-K under the Exchange Act if the Issuer had been a reporting company under the Exchange Act; provided, however, that no such current report will be required to be furnished if the Issuer determines in its good faith judgment that such event is not material to noteholders or the business, assets, operations, financial positions or prospects of the Issuer and its Restricted Subsidiaries, taken as a whole;

provided, that such distribution requirements shall be deemed to have been satisfied if the Issuer files all such information meeting the above requirements within the applicable time periods with the SEC through the SEC’s Electronic Data Gathering, Analysis, and Retrieval System (EDGAR) (or any successor system);

provided further, however, that all such reports (A) will not be required to comply with Section 302 or Section 404 of the Sarbanes-Oxley Act of 2002, or related Items 307 and 308 of Regulation S-K promulgated by the SEC, or Item 10(e) of Regulation S-K (with respect to any non-GAAP financial measures contained therein), (B) will not be required to contain the separate financial information for Guarantors contemplated by Rule 3-10 or Rule 3-16 of Regulation S-X promulgated by the SEC, (C)  will only be required to include limited executive compensation disclosure consisting of a summary compensation table (including any equity awards), a description of employment agreements with officers and a description of any incentive plans and (D) will not be required to include exhibits that would otherwise be required to be filed pursuant to Item 601 of Regulation S-K.

In addition, the Issuer shall furnish to noteholders, prospective investors, broker-dealers and securities analysts, upon their request, any information required to be delivered pursuant to Rule 144A(d)(4) under the Securities Act so long as the Notes are not freely transferable under the Securities Act.

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Section 4.04
	
Compliance Certificate.

(a)The Issuer and each Guarantor shall deliver to the Trustee, within 90 days after the end of each fiscal year, an Officer’s Certificate that need not comply with Section 12.05 stating that a review of the activities of the Issuer and its Subsidiaries during the preceding fiscal year has been made under the supervision of the signing Officer with a view to determining whether the Issuer has kept, observed, performed and fulfilled its obligations under this Indenture, and further stating, as to such Officer signing such certificate, that to the best of his or her knowledge the Issuer 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 Issuer 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, premium on, if any, or interest, if any, on, the Notes is prohibited or if such event has occurred, a description of the event and what action the Issuer is taking or proposes to take with respect thereto.  

(b)So long as any of the Notes are outstanding, the Issuer will deliver to the Trustee, within 30 days of any Officer becoming aware of any Default or Event of Default, an Officer’s Certificate specifying such Default or Event of Default and what action the Issuer is taking or proposes to take with respect thereto.  

	
Section 4.05
	
Taxes.  

The Issuer will pay, and will cause each of its Subsidiaries to pay, prior to delinquency, all material taxes, assessments, and governmental levies except such as are contested in good faith and by appropriate proceedings or where the failure to effect such payment is not adverse in any material respect to the Holders of the Notes.  

	
Section 4.06
	
Stay, Extension and Usury Laws.  

The Issuer 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 Issuer 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 4.07
	
Restricted Payments.

(a)The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly:

(1)declare or pay any dividend or make any other payment or distribution on account of the Issuer’s or any of its Restricted Subsidiaries’ Equity Interests (including, without limitation, any payment in connection with any merger or consolidation involving the Issuer or any of its Restricted Subsidiaries) or to the direct or indirect holders of the Issuer’s or any of its Restricted Subsidiaries’ Equity Interests in their capacity as such (other than dividends or distributions payable in Equity Interests (other than Disqualified Stock) of the Issuer and other than dividends or distributions payable to the Issuer or a Restricted Subsidiary of the Issuer);

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(2)purchase, redeem or otherwise acquire or retire for value (including, without limitation, in connection with any merger or consolidation involving the Issuer, any direct or indirect parent of the Issuer or any Restricted Subsidiary) any Equity Interests of the Issuer or any Restricted Subsidiary (other than Disqualified Stock within one year of the Stated Maturity thereof or any such Equity Interests held by the Issuer, any direct or indirect parent of the Issuer or a Restricted Subsidiary of the Issuer); 

(3)make any payment on or with respect to, or purchase, redeem, defease or otherwise acquire or retire for value any Indebtedness of the Issuer or any Guarantor that is contractually subordinated to the Notes or to any Note Guarantee (excluding any intercompany Indebtedness between or among the Issuer and any of its Restricted Subsidiaries), except a payment of interest or principal at the Stated Maturity thereof or a purchase, repurchase, or other acquisition of Indebtedness subordinated in right of payment to the Notes or any Note Guarantee made in contemplation of satisfying a sinking fund obligation, principal installment or final maturity, in each case, due within one year of the date of such purchase, redemption or other acquisition; or 

(4)make any Restricted Investment, 

(all such payments and other actions set forth in these clauses (1) through (4) above being collectively referred to as “Restricted Payments”) unless, at the time of and after giving effect to such Restricted Payment:

(I)no Default or Event of Default shall have occurred and be continuing or would occur as a consequence of such Restricted Payment; 

(II) the Issuer would, at the time of such Restricted Payment and after giving pro forma effect thereto as if such Restricted Payment had been made at the beginning of the applicable four-quarter period, have been permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a) hereof; and

(III) such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Issuer and its Restricted Subsidiaries since the Issue Date (excluding Restricted Payments permitted by clauses (2) through (15) of Section 4.07(b)), is less than the sum, without duplication, of:

(A)50% of the Consolidated Net Income of the Issuer for the period (taken as one accounting period) from the beginning of the fiscal quarter in which the Notes are initially issued to the end of the Issuer’s most recently ended fiscal quarter for which internal financial statements are available at the time of such Restricted Payment (or, if such Consolidated Net Income for such period is a deficit, less 100% of such deficit); plus 

(B)100% of the Fair Market Value of the aggregate net cash proceeds and the fair market value of marketable securities or other property received by the Issuer and its Restricted Subsidiaries since the Issue Date (other than net cash proceeds to the extent such net cash proceeds have been used to incur Indebtedness, Disqualified Stock or preferred stock pursuant to Section 4.09(b)(23) as a contribution to its equity capital or from the issue or sale of:

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(i)Qualifying Equity Interests of the Issuer or from the issue or sale of convertible or exchangeable Disqualified Stock of the Issuer or convertible or exchangeable debt securities of the Issuer, in each case that have been converted into or exchanged for Qualifying Equity Interests of the Issuer (other than Qualifying Equity Interests and convertible or exchangeable Disqualified Stock or debt securities sold to a Subsidiary of the Issuer); 

(ii)Qualifying Equity Interests to any future, current or former officer, director, employee or consultant (or family members, spouses or former spouses, heirs of, estates of or trusts formed by such persons) of the Issuer, its Subsidiaries or any Parent Entity (excluding contributions to the extent such amounts have been applied to Restricted Payments made in accordance with Section 4.07(b)(10));

(iii)Equity Interests of Parent Entities, to the extent such net cash proceeds are actually contributed to the Issuer (excluding contributions to the extent such amounts have been applied to Restricted Payments made in accordance with Section 4.07(b)(10)); plus

(C)to the extent that any Restricted Investment that was made after the Issue Date is (a) sold or otherwise cancelled, liquidated or repaid for value, or results in, or is otherwise returned or reduced by, the payment of principal, interest, dividends or distributions, or repayments of loans or advances, or other transfers of assets, or the satisfaction, release, expiration, cancellation or reduction (other than by means of payments by the Issuer or a Restricted Subsidiary) of Indebtedness or other obligations (including any such Indebtedness or other obligations guaranteed by the Issuer or any of its Restricted Subsidiaries), or any payments under management contracts or services agreements, or (b) made in an entity that subsequently becomes a Restricted Subsidiary of the Issuer or has been merged, consolidated or amalgamated with or into, or transfers or conveys its assets to, or is liquidated into, the Issuer or a Restricted Subsidiary, the amount of any such cash payment or the Fair Market Value of any such Property so received in a transaction described in clause (a) and, in the case of clause (b) the Fair Market Value of such Restricted Investment; plus 

(D)to the extent that any Unrestricted Subsidiary of the Issuer designated as such after the Issue Date is redesignated as a Restricted Subsidiary after the Issue Date, the Fair Market Value of the Issuer’s Restricted Investment in such Subsidiary as of the date of such redesignation; plus

(E)100% of any dividends or distributions received in cash and 100% of the Fair Market Value of any Property received in any such dividend or distribution by the Issuer or a Restricted Subsidiary after the Issue Date from an Unrestricted Subsidiary of the Issuer, to the extent that such dividends were not otherwise included in the Consolidated Net Income of the Issuer for such period; plus

(F)100% of any remaining Excess Proceeds after the completion of an Asset Sale Offer (assuming such Excess Proceeds were not reset at zero); plus

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(G)$45.0 million.

(b)The provisions of Section 4.07(a) hereof will not prohibit:

(1)the payment of any dividend or the consummation of any irrevocable repurchase, redemption, defeasance or other acquisition or retirement within 60 days after the date of declaration of the dividend or giving of the notice of repurchase, redemption, defeasance or other acquisition or retirement, as the case may be, if at the date of declaration or notice, the dividend or repurchase, redemption, defeasance or other acquisition or retirement would have complied with the provisions of this Indenture;  

(2)the making of any Restricted Payment in exchange for, or out of or with the net cash proceeds of the substantially concurrent sale (other than to a Subsidiary of the Issuer) of, Equity Interests of the Issuer (other than Disqualified Stock) or from the substantially concurrent contribution of equity capital to the Issuer; provided that the amount of any such net cash proceeds that are utilized for any such Restricted Payment will not be considered to be net proceeds of Qualifying Equity Interests for purposes of Section 4.07(a)(III)(B) and will not be considered to be net cash proceeds from an Equity Offering for purposes of Section 3.07;

(3)the payment of any dividend (or, in the case of any partnership or limited liability company, any similar distribution) by a Restricted Subsidiary of the Issuer to the holders of its Equity Interests on a pro rata basis or on a basis that is more favorable to the Issuer and its Restricted Subsidiaries;

(4)the repurchase, redemption, defeasance or other acquisition or retirement for value of Indebtedness of the Issuer or any Guarantor that is contractually subordinated to the Notes or to any Note Guarantee or any Disqualified Stock of the Issuer or any Restricted Subsidiary thereof (including all accrued interest on the Indebtedness, all accrued and unpaid dividends on Disqualified Stock, and the amount of all penalties, fees, costs, expenses, discounts and premiums incurred in connection therewith and any original issue discount or debt issuance costs with respect thereto) in exchange for or with the net cash proceeds from a substantially concurrent incurrence of Permitted Refinancing Indebtedness or through conversion of such Indebtedness or Disqualified Stock into, or exchange of such Indebtedness or Disqualified Stock for Equity Interests;

(5)repurchases of Indebtedness of the Issuer or any Guarantor that is unsecured or contractually subordinated in right of payment to the Notes or a Note Guarantee at a purchase price not greater than (i) 101% of the principal amount of such subordinated Indebtedness in the event of a Change of Control or (ii) 100% of the principal amount of such subordinated Indebtedness in the event of an Asset Sale, in each case, plus accrued and unpaid interest thereon, to the extent required by the terms of such Indebtedness, but only if:

(A)in the case of a Change of Control, the Issuer has first complied with and fully satisfied its obligations under the provisions described under Section 4.15; or

(B) in the case of an Asset Sale, the Issuer has complied with and fully satisfied its obligations under the provisions described under Section 4.15;

(6)the payment of amounts necessary to repurchase or retire Indebtedness or Equity Interests of the Issuer or any Subsidiary to the extent required by any Gaming Authority in order to avoid the suspension, revocation or denial of a Gaming License by that Gaming Authority; provided that, in the case of any such repurchase of Equity Interests of the Issuer or any Subsidiary, if such 

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efforts do not jeopardize any Gaming License, Issuer or any such Subsidiary will have previously used commercially reasonable efforts to attempt to find a suitable purchaser for such Equity Interests and no suitable purchaser acceptable to the applicable Gaming Authority and Issuer was willing to purchase such Equity Interests on terms acceptable to the holder thereof within a time period acceptable to such Gaming Authority;

(7)the repurchase of Equity Interests deemed to occur upon the exercise, conversion or exchange of stock options, warrants, other rights to acquire Equity Interests or other convertible or exchangeable securities if such Equity Interests represent all or a portion of the exercise price thereof or upon the grant, vesting or exercise of restricted stock, restricted stock units or similar equity incentives to satisfy tax withholding or similar tax obligations with respect thereto;

(8)the payment, by the Issuer, of cash in lieu of the issuance of fractional shares upon the exercise of any option, warrant or similar instrument or upon the conversion or exchange of Equity Interests of the Issuer;

(9)the declaration and payment of regularly scheduled or accrued dividends to holders of any class or series of Disqualified Stock of the Issuer or any preferred stock of any Restricted Subsidiary of the Issuer issued on or after the Issue Date in accordance with the Fixed Charge Coverage Ratio test set forth in Section 4.09(a);

(10)the repurchase, redemption or other acquisition or retirement for value of any Equity Interests of the Issuer, any Parent Entity or any Restricted Subsidiary of the Issuer held by any current or former officer, director, employee or consultant (or family members, spouses or former spouses, heirs of, estates of or trusts formed by such persons) of the Issuer or any of its Restricted Subsidiaries pursuant to any equity subscription agreement, stock option agreement, employment agreement, severance agreement, shareholders’ agreement or similar agreement; provided that the aggregate amount of payments made under this clause may not exceed in any fiscal year of the Issuer the greater of (x) $10.0 million and (y) 5.0% of Consolidated EBITDA (with unused amounts in any fiscal year being carried over to succeeding fiscal years); provided, further, that such amount in any twelve-month period under this clause may be increased by an amount not to exceed:

(A)the cash proceeds from the sale of Equity Interests (other than Disqualified Stock) of the Issuer and, to the extent contributed to the Issuer, the cash proceeds from the sale of Equity Interests of any Parent Entity, in each case, to any future, present or former employees, directors, officers, members of management or consultants of the Issuer, any of its Subsidiaries, or any Parent Entity that occurs after the Issue Date, to the extent the cash proceeds from the sale of such Equity Interests have not otherwise been applied to the payment of Restricted Payments by virtue of the first paragraph of this covenant; plus

(B)the cash proceeds of key man life insurance policies received by the Issuer or its Restricted Subsidiaries (or by any Parent Entity to the extent contributed to the Issuer) after the Issue Date; minus

(C)the amount of any Restricted Payments previously made with the cash proceeds described in clauses (A) and (B) of this clause (10);

provided that the Issuer may elect to apply all or any portion of the aggregate increase contemplated by clauses (A) and (B) above in any twelve-month period;

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(11)any payments made, or the performance of any transactions, in each case, as described in the Offering Memorandum under the heading “Use of proceeds”;

(12)the distribution, as a dividend or otherwise, of Equity Interests of, or Indebtedness owed to the Issuer or a Restricted Subsidiary by, Unrestricted Subsidiaries;

(13)payments and distributions to dissenting shareholders pursuant to applicable law, pursuant to or in connection with a merger, amalgamation, consolidation or transfer of all or substantially all of the assets of the Issuer and its Subsidiaries, taken as a whole, that complies with the terms of this Indenture;

(14)any Restricted Payment, so long as (i) immediately before and after giving effect to such Restricted Payment no Event of Default has occurred and is continuing and (ii) after giving effect to such Restricted Payment and any related incurrence of Indebtedness, the Consolidated Leverage Ratio of the Issuer on a Pro Forma Basis is less than 4.50 to 1.00; and

(15)so long as no Default or Event of Default has occurred and is continuing, other Restricted Payments in an aggregate amount not to exceed $75.0 million since the Issue Date.

The amount of all Restricted Payments (other than cash) will be the Fair Market Value on the date of the Restricted Payment of the asset(s) or securities proposed to be transferred or issued by the Issuer or such Restricted Subsidiary, as the case may be, pursuant to the Restricted Payment.  For purposes of determining compliance with this Section 4.07, in the event that a Restricted Payment or Investment (or a portion thereof) meets the criteria of more than one of the categories described in clauses (1) through (15) above, or is permitted pursuant to the first paragraph of this Section 4.07 or pursuant to any of clauses (1) through (26) of the definition of “Permitted Investments,” the Issuer will be entitled to divide or classify (or later divide, classify or reclassify in whole or in part in its sole discretion) such Restricted Payment or Investment (or, in each case, portion thereof) in any manner that complies with this Section 4.07.

If any Person in which an Investment is made, which Investment constitutes a Restricted Payment when made, thereafter becomes a Restricted Subsidiary in accordance with this Indenture, all such Investments previously made in such Person shall be Permitted Investments under clause (3) of the definition of “Permitted Investments,” and for the avoidance of doubt, all such Investments shall no longer be counted as Restricted Payments pursuant to Section 4.07(a)(iii), in each case, to the extent such Investments would otherwise be so counted.

	
Section 4.08
	
Dividend and Other Payment Restrictions Affecting Restricted Subsidiaries.  

(a)The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create or permit to exist or become effective any consensual encumbrance or restriction on the ability of any Restricted Subsidiary to:

(1)pay dividends or make any other distributions on its Capital Stock to the Issuer or any of its Restricted Subsidiaries or with respect to any other interest or participation in, or measured by, its profits, or pay any indebtedness owed to the Issuer or any of its Restricted Subsidiaries;

(2)make loans or advances to the Issuer or any of its Restricted Subsidiaries; or

(3)sell, lease or transfer any of its properties or assets to the Issuer or any of its Restricted Subsidiaries.

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(b)The restrictions in Section 4.08(a) hereof will not apply to encumbrances or restrictions existing under or by reason of:

(1)agreements in effect on the Issue Date and any amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings are not, in the good faith determination of the Board of Directors of the Issuer, materially more restrictive, taken as a whole, with respect to such dividend and other payment restrictions than those contained in those agreements on the Issue Date;

(2)this Indenture, the Notes and the Note Guarantees;

(3)agreements governing other Indebtedness permitted to be incurred under Section 4.09 hereof and any amendments, restatements, modifications, renewals, supplements, refundings, replacements or refinancings of those agreements; provided that the restrictions therein are not, in the good faith determination of the Issuer, materially more restrictive, taken as a whole, than those contained in this Indenture, the Notes and the Note Guarantees;

(4)applicable law, rule, regulation or order, including without limitation restrictions imposed by Gaming Authorities;

(5)any instrument governing Indebtedness or Capital Stock of a Person acquired by the Issuer or any of its Restricted Subsidiaries as in effect at the time of such acquisition (except to the extent such Indebtedness or Capital Stock was incurred in connection with or in contemplation of such acquisition), which encumbrance or restriction is not applicable to any Person, or the properties or assets of any Person, other than the Person, or the property or assets of the Person, so acquired; provided that, in the case of Indebtedness, such Indebtedness was permitted by the terms of this Indenture to be incurred;

(6)customary non-assignment provisions in contracts, licenses and leases entered into in the ordinary course of business;

(7)purchase money obligations for property acquired in the ordinary course of business and Capital Lease Obligations that impose restrictions on the property purchased or leased of the nature described in Section 4.08(a)(3) hereof;

(8)any agreement for the sale or other disposition of a Restricted Subsidiary that restricts distributions by that Restricted Subsidiary pending its sale or other disposition;

(9)any restriction or encumbrance contained in contracts for the sale of assets to be consummated in accordance with this Indenture solely in respect of the assets to be sold pursuant to such contract;

(10)Permitted Refinancing Indebtedness; provided that the restrictions contained in the agreements governing such Permitted Refinancing Indebtedness are not, in the good faith determination of the Board of Directors of the Issuer, materially more restrictive, taken as a whole, than those contained in the agreements governing the Indebtedness being refinanced;

(11)Liens permitted to be incurred under the provisions of Section 4.12 hereof that limit the right of the debtor to dispose of the assets subject to such Liens;

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(12)agreements in existence with respect to a Restricted Subsidiary at the time it becomes a Restricted Subsidiary; provided, however, that such agreements are not entered into in anticipation or contemplation thereof;

(13)provisions limiting the disposition or distribution of assets or property in Joint Venture agreements, asset sale agreements, sale-leaseback agreements, stock sale agreements and other similar agreements (including agreements entered into in connection with a Restricted Investment), which limitation is applicable only to the assets that are the subject of such agreements; 

(14)restrictions on cash or other deposits or net worth made to secure letters of credit or surety or other bonds issued in connection therewith or imposed by customers or suppliers under contracts entered into in the ordinary course of business;

(15)Credit Facilities that, taken as a whole, are, in the good faith determination of the Board of Directors of the Issuer, customary for Credit Facilities of Persons engaged in a Permitted Business; and

(16)restrictions contained in Indebtedness used to finance, or incurred for the purpose of financings, Expansion Capital Expenditures and/or Development Projects and Permitted Refinancing Indebtedness in respect thereof; provided that such restrictions apply only to the asset (or the Person owning such asset) being financed pursuant to such Indebtedness.

	
Section 4.09
	
Incurrence of Indebtedness and Issuance of Preferred Stock.  

(a)The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur, issue, assume, guarantee or otherwise become directly or indirectly liable, contingently or otherwise, with respect to (collectively, “incur”) any Indebtedness (including Acquired Debt), and the Issuer will not issue any Disqualified Stock and will not permit any of its Restricted Subsidiaries to issue any shares of preferred stock; provided, however, that the Issuer may incur Indebtedness (including Acquired Debt) or issue Disqualified Stock, and the Restricted Subsidiaries may incur Indebtedness (including Acquired Debt) or issue preferred stock, if the Fixed Charge Coverage Ratio for the Issuer’s most recently ended four full fiscal quarters for which internal financial statements are available immediately preceding the date on which such additional Indebtedness is incurred or such Disqualified Stock or such preferred stock is issued, as the case may be, would have been at least 2.00 to 1.00, determined on a Pro Forma Basis (including a pro forma application of the net proceeds therefrom), as if the additional Indebtedness had been incurred or the Disqualified Stock or the preferred stock had been issued, as the case may be, at the beginning of such four-quarter period; provided, further, that Restricted Subsidiaries that are not Guarantors may not incur Indebtedness or issue Disqualified Stock or preferred stock pursuant to this Section 4.09(a) if, after giving pro forma effect to such incurrence or issuance (including a pro forma application of the net proceeds therefrom), the aggregate principal amount of Indebtedness or Disqualified Stock or preferred stock of Restricted Subsidiaries that are not Guarantors incurred pursuant to this Section 4.09(a), together with amounts incurred under clauses (17) and (22) of Section 4.09(b) by Restricted Subsidiaries that are not Guarantors, that would be outstanding at such time would exceed the greater of (x) $35.0 million and (y) 20% of Consolidated EBITDA.

(b)The provisions of Section 4.09(a) hereof will not prohibit the incurrence of any of the following items of Indebtedness (collectively, “Permitted Debt”):

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(1) the incurrence by the Issuer or any Guarantor (and/or the guarantee thereof by the Issuer or any Guarantor) of Indebtedness and letters of credit under the Senior Credit Facilities or other Credit Facilities; provided that the aggregate principal amount of all such Indebtedness outstanding under this clause (1) as of any date of incurrence (after giving pro forma effect to the application of the proceeds of such incurrence), including all Permitted Refinancing Indebtedness incurred to repay, redeem, extend, refinance, renew, replace, defease or refund any Indebtedness incurred pursuant to this clause (1), shall not exceed $1,190 million, to be reduced dollar for dollar by the aggregate amount of all Net Proceeds from Asset Sales applied by the Issuer or any of its Restricted Subsidiaries to permanently repay Indebtedness under the Credit Facilities pursuant to Section 4.10(d);

(2)Indebtedness of the Issuer and its Restricted Subsidiaries in existence on the Issue Date;

(3)the incurrence by the Issuer and the Guarantors of Indebtedness represented by the Notes to be issued on the Issue Date and the related Note Guarantees;

(4)the incurrence by the Issuer or any of its Restricted Subsidiaries of Indebtedness represented by Capital Lease Obligations, FF&E Financing, mortgage financings or purchase money obligations or other Indebtedness, in each case, incurred in connection with capital expenditures or for the purpose of financing all or any part of the purchase price or cost of design, construction, installation, renovation, repair, expansion, replacement, refurbishment or improvement of property (real or personal), plant or equipment used or useful in the business of the Issuer or any of its Restricted Subsidiaries, whether through the direct purchase of assets or the Capital Stock of any Person owning such assets, in an aggregate principal amount, including all Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause (4) not to exceed the greater of (x) $75.0 million and (y) 40% of Consolidated EBITDA;

(5)the incurrence by the Issuer or any of its Restricted Subsidiaries of Permitted Refinancing Indebtedness in exchange for, or the net proceeds of which are used to renew, refund, refinance, replace, defease or discharge, any Indebtedness (other than intercompany Indebtedness) that was permitted by this Indenture to be incurred under Section 4.09(a) or clauses (2), (3), (5) or (17) of this Section 4.09(b);

(6)the incurrence by the Issuer or any of its Restricted Subsidiaries of intercompany Indebtedness between or among the Issuer and any of its Restricted Subsidiaries; provided, however, that:

(A)if the Issuer or any Guarantor is the obligor on such Indebtedness and the payee is not the Issuer or a Guarantor, such Indebtedness must be unsecured and expressly subordinated to the prior payment in full in cash of all Obligations then due with respect to the Notes, in the case of the Issuer, or the Note Guarantee, in the case of a Guarantor; and

(B)(i) any subsequent issuance or transfer of Equity Interests that results in any such Indebtedness being held by a Person other than the Issuer or a Restricted Subsidiary of the Issuer and (ii) any sale or other transfer of any such Indebtedness to a Person that is not either the Issuer or a Restricted Subsidiary of the Issuer, will be deemed, in each case, to constitute an incurrence of such Indebtedness by the Issuer or such Restricted Subsidiary, as the case may be, that was not permitted by this clause (6);

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(7)the issuance by any of the Issuer’s Restricted Subsidiaries to the Issuer or to any of its Restricted Subsidiaries of shares of preferred stock; provided, however, that:

(A)any subsequent issuance or transfer of Equity Interests that results in any such preferred stock being held by a Person other than the Issuer or a Restricted Subsidiary of the Issuer; and

(B)any sale or other transfer of any such preferred stock to a Person that is not either the Issuer or a Restricted Subsidiary of the Issuer, will be deemed, in each case, to constitute an issuance of such preferred stock by such Restricted Subsidiary that was not permitted by this clause (7); 

(8)the incurrence by the Issuer or any of its Restricted Subsidiaries of Hedging Obligations in the ordinary course of business;

(9)the incurrence of Escrowed Indebtedness;

(10)the incurrence of Indebtedness that has been Discharged;

(11)the guarantee by the Issuer or any of the Guarantors of Indebtedness of the Issuer or a Restricted Subsidiary of the Issuer to the extent that the guaranteed Indebtedness was permitted to be incurred by another provision of this Section 4.09; provided that if the Indebtedness being guaranteed is subordinated to or pari passu with the Notes, then the Guarantee must be subordinated or pari passu, as applicable, to the same extent as the Indebtedness guaranteed;

(12)the incurrence by the Issuer or any of the Guarantors of Indebtedness in respect of bid, payment or other performance bonds, surety bonds, release, appeal and similar bonds, statutory obligations, workers’ compensation claims, self-insurance obligations, bankers’ acceptances, completion guarantees and letters of credit provided by the Issuer or any of its Restricted Subsidiaries in the ordinary course of business (including to support the Issuer’s or any of its Restricted Subsidiaries’ applications for Gaming Licenses or for the purposes referenced in this clause (12)), and reimbursement obligations in respect of the foregoing;

(13)the incurrence by the Issuer or any of the Guarantors of Indebtedness arising from the honoring by a bank or other financial institution of a check, draft or similar instrument inadvertently drawn against insufficient funds, so long as such Indebtedness is covered within five Business Days; 

(14)the incurrence by the Issuer or any of its Restricted Subsidiaries arising in connection with endorsement of instruments for deposit in the ordinary course of business;

(15)the incurrence by the Issuer or any of its Restricted Subsidiaries of Indebtedness deemed to exist pursuant to the terms of a Joint Venture agreement as a result of a failure of the Issuer or such Restricted Subsidiary to make a required capital contribution therein; provided that the only recourse on such Indebtedness is limited to the Issuer’s or such Restricted Subsidiary’s equity interests in the related Joint Venture;

(16)Indebtedness arising from agreements of the Issuer or any of its Restricted Subsidiaries providing for indemnification, adjustment of purchase price or similar obligations, in each case, incurred or assumed in connection with the acquisition or disposition of any business, assets or a subsidiary, other than guarantees of Indebtedness incurred by any Person acquiring all or any portion of such business, assets or subsidiary for the purpose of financing that acquisition;

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(17)Acquired Debt and other Indebtedness of Persons outstanding on the date on which such Person became a Restricted Subsidiary or was acquired by, or merged into, the Issuer or any of its Restricted Subsidiaries or incurred or issued to finance a merger consolidation or other acquisition; provided, that (A) at the time such Person is acquired, either (i) the Issuer would have been able to incur at least $1.00 of additional Indebtedness pursuant to the first paragraph of this covenant on a Pro Forma Basis after giving effect to the incurrence of such Acquired Debt or Indebtedness pursuant to this clause (17) or (ii) on a Pro Forma Basis, the Fixed Charge Coverage Ratio of the Issuer and its Restricted Subsidiaries would no lower than such ratio immediately prior to such acquisition or merger or (B) such Indebtedness is Indebtedness of a Restricted Subsidiary that existed at the time such Person became a Subsidiary and was not created in contemplation thereof; provided, further, that Restricted Subsidiaries that are not Guarantors may not incur Indebtedness pursuant to this clause (17) if, on a Pro Forma Basis, the aggregate principal amount of Indebtedness of Restricted Subsidiaries that are not Guarantors incurred pursuant to this clause (17), together with amounts incurred pursuant to the third proviso of Section 4.09(a) and clause (22) of Section 4.09(b) of this covenant by Restricted Subsidiaries that are not Guarantors that would be outstanding at such time would exceed (x) $35.0 million and (y) 20% of Consolidated EBITDA;

(18) (i) Indebtedness representing deferred compensation to employees of the Issuer or any of its Restricted Subsidiaries incurred in the ordinary course of business, and (ii) Indebtedness consisting of obligations of the Issuer or any of its Restricted Subsidiaries under deferred compensation or other similar arrangements incurred by such Person in connection with any Investment permitted under Section 4.07; 

(19)Indebtedness consisting of the financing of insurance premiums; 

(20)Indebtedness of Joint Ventures in an aggregate principal amount that at the time of, and after giving effect to, the incurrence thereof, would not, at any time outstanding, exceed the greater of (x) $20.0 million (y) 10.0% Consolidated EBITDA;

(21)Indebtedness constituting Development Expenses that are used to finance, or incurred or issued for the purpose of financing, Expansion Capital Expenditures or Development Projects in an aggregate principal amount not to exceed $75.0 million at any time outstanding so longs as no Event of Default shall have occurred and be continuing after giving effect thereto; 

(22)Indebtedness, Disqualified Stock or preferred stock of Restricted Subsidiaries that are not Guarantors, together with amounts incurred and outstanding pursuant to the third proviso of Section 4.09(a) and clause (17) of this Section 4.09(b), in an aggregate principal amount not to exceed the greater of (x) $35.0 million and (y) 20% of Consolidated EBITDA;

(23)Indebtedness, Disqualified Stock or preferred stock of the Issuer or any Restricted Subsidiary in an aggregate principal amount or liquidation preference up to 100% of the net cash proceeds received by the Issuer after the Issue Date from the issue or sale of Equity Interests of the Issuer or cash contributed to the capital of the Issuer (in each case, other than proceeds of Disqualified Stock or sales of Equity Interests to the Issuer or any of its Subsidiaries) as determined in accordance with clause (2) of Section 4.07(b) to the extent such net cash proceeds or cash have not been applied pursuant to such clause to make Restricted Payments or to make other Investments, payments or exchanges pursuant to the third paragraph of Section 4.07 or to make Permitted Investments (other than Permitted Investments specified in clauses (1), (2) and (3) of the definition thereof);

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(24)the incurrence by the Issuer or any of its Restricted Subsidiaries of Indebtedness in an aggregate principal amount (or accreted value, as applicable) at any time outstanding, including all Permitted Refinancing Indebtedness incurred to renew, refund, refinance, replace, defease or discharge any Indebtedness incurred pursuant to this clause (24) not to exceed the greater of (x) $100.0 million and (y) 50% of Consolidated EBITDA; 

(25)Indebtedness of the Issuer or any of its Restricted Subsidiaries supported by a letter of credit issued pursuant to a Credit Facility, in a principal amount not in excess of the stated amount of such letter of credit;

(26)Indebtedness incurred by the Issuer or any of the Restricted Subsidiaries to the extent that the net proceeds thereof are promptly deposited with the trustee to satisfy and discharge the Notes in accordance with this Indenture; and

(27)all premiums (if any, including tender premiums), defeasance costs, interest (including post-petition interest), fees, expenses, charges and additional or contingent interest on obligations described in clauses (1) through (26) of this Section 4.09(b).  

For purposes of determining compliance with this Section 4.09, in the event that an item of Indebtedness meets the criteria of more than one of the categories of Permitted Debt described in clauses (2) through (27) above, or is entitled to be incurred pursuant to the first paragraph of this Section 4.09, the Issuer will be permitted to divide or classify (or later divide, classify or reclassify in whole or in part in its sole discretion) such item of Indebtedness.  For the avoidance of doubt, all Indebtedness under the Senior Credit Facilities will be deemed to have been incurred on such date in reliance on the exception provided by clause (1) of the definition of Permitted Debt and may not be reclassified; provided, however, if obligations in respect of letters of credit are incurred pursuant to a Credit Facility and relate to other Indebtedness, then such letters of credit shall be treated as incurred pursuant to clause (1) of the definition of Permitted Debt.  Except as provided in the preceding sentence, Guarantees of, or obligations in respect of letters of credit relating to, Indebtedness that is otherwise included in the determination of a particular amount of Indebtedness shall not be included.  In connection with the incurrence or issuance, as applicable, of (x) revolving loan Indebtedness under this Section 4.09 or (y) any commitment relating to the incurrence or issuance of Indebtedness, Disqualified Stock or preferred stock under this Section 4.09 and the granting of any Lien to secure any such Indebtedness, the Issuer or the applicable Restricted Subsidiary may designate such incurrence or issuance and the granting of any such Lien as having occurred on the date of first incurrence or issuance of such revolving loan Indebtedness or commitment (such date, the “Deemed Date”), and any related subsequent actual incurrence or issuance or granting of any such Lien therefor will be deemed for all purposes under this Indenture to have been incurred or issued and granted on such Deemed Date, including, without limitation, for purposes of calculating the Fixed Charge Coverage Ratio and usage of any other baskets or ratios under this Indenture (as applicable).  The accrual of interest or preferred stock dividends, the accretion or amortization of original issue discount, the payment of interest on, or fees with respect to, any Indebtedness in the form of additional Indebtedness with the same terms, the reclassification of preferred stock as Indebtedness due to a change in accounting principles, and the payment of dividends on preferred stock or Disqualified Stock in the form of additional shares of the same class of preferred stock or Disqualified Stock will not be deemed to be an incurrence of Indebtedness or an issuance of preferred stock or Disqualified Stock for purposes of this Section 4.09; provided, in each such case, that the amount of any such accrual, accretion or payment shall be included in Fixed Charges of the Issuer as accrued.  For purposes of determining compliance with any U.S. dollar‐denominated restriction on the incurrence of Indebtedness, the U.S. dollar‐equivalent principal amount of Indebtedness denominated in a foreign currency shall be utilized, calculated based on the relevant currency exchange rate in effect on the date such Indebtedness was incurred.  Notwithstanding any other provision of this Section 4.09, the maximum amount of Indebtedness that the Issuer or any Restricted Subsidiary may incur pursuant to this Section 4.09 shall not be deemed to be exceeded solely as a result of fluctuations in exchange rates or currency values.

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The amount of any Indebtedness outstanding as of any date will be:

(1)the accreted value of the Indebtedness determined on a constant yield to maturity basis over time, in the case of any Indebtedness issued with original issue discount;

(2)the principal amount of the Indebtedness, in the case of any other Indebtedness; 

(3)in the case of a Guarantee of Indebtedness, the maximum amount of the Indebtedness guaranteed under such Guarantee; and

(4)in respect of Indebtedness of another Person secured by a Lien on the assets of the specified Person, the lesser of:

(A)the Fair Market Value of such assets subject to such Lien at the date of determination; and

(B)the amount of the Indebtedness of the other Person secured by such Lien.

	
Section 4.10
	
Asset Sales.

(a)The Issuer will not, and will not permit any of its Restricted Subsidiaries to, consummate an Asset Sale unless:

(1)the Issuer (or such Restricted Subsidiary, as the case may be) receives consideration at the time of the Asset Sale at least equal to the Fair Market Value (measured as of the date of the definitive agreement with respect to such Asset Sale) of the assets or Equity Interests issued or sold or otherwise disposed of; and

(2)at least 75% of the consideration received in the Asset Sale by the Issuer or such Restricted Subsidiary is in the form of cash or Cash Equivalents.  For purposes of this provision, each of the following will be deemed to be cash:

(A)any liabilities, as shown on the Issuer’s most recent consolidated balance sheet, of the Issuer or any Restricted Subsidiary (other than liabilities that are by their terms subordinated to the Notes or any Note Guarantee) that are assumed by the transferee of any such assets pursuant to a customary novation or indemnity agreement that releases the Issuer or such Restricted Subsidiary from, or indemnifies against, further liability or that are otherwise cancelled or terminated as a result of payment by the buyer in such Asset Sale in connection with the transaction with the transferee; 

(B)any securities, Notes or other obligations received by the Issuer or any such Restricted Subsidiary from such transferee that are within 180 days following the closing of such Asset Sale converted by the Issuer or such Restricted Subsidiary into cash or Cash Equivalents, to the extent of the cash or Cash Equivalents actually so received;

(C)Indebtedness (other than contingent liabilities and liabilities that are by their terms subordinated to the Notes or a Note Guarantee) of any Restricted Subsidiary that ceases to be a Restricted Subsidiary as a result of such Asset Sale, to the extent that the Issuer and each other Restricted Subsidiary are released from any Guarantee of or other liability on account of such Indebtedness; 

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(D)any Designated Non-Cash Consideration received by the Issuer or such Restricted Subsidiary in such Asset Sale having an aggregate fair market value, taken together with all other Designated Non-Cash Consideration received pursuant to this clause (d) that is at the time outstanding, not to exceed an amount equal to the greater of (x) $35.0 million and (y) 5% of the Issuer’s Consolidated Tangible Assets (determined as of the date of the definitive agreement with respect to such Asset Sale), with the fair market value of each item of Designated Non-Cash Consideration being measured as of the date of the definitive agreement with respect to such Asset Sale and without giving effect to subsequent changes in value; and

(E)any stock or assets of the kind referred to in clauses (2), (3) or (4) of Section 4.10(b).

(b)Within 365 days after the receipt of any Net Proceeds from an Asset Sale (the “Asset Sale Proceeds Application Period”) (as may be extended pursuant to the next succeeding paragraph), the Issuer (or the applicable Restricted Subsidiary, as the case may be) may apply such Net Proceeds:

(1)to permanently repay, prepay, redeem or purchase;

(A)Obligations under (i) the Senior Credit Facilities (and, in the case of revolving obligations, permanently reduce commitments with respect thereto); (ii) other secured Indebtedness of the Issuer, if applicable (other than any Disqualified Stock), or secured Indebtedness of any Guarantor and (iii) other Indebtedness of a non-Guarantor Restricted Subsidiary; and/or

(B)Obligations under this Indenture, the Notes and the Note Guarantees or any other Pari Passu Debt of the Issuer or any Guarantor; provided that if the Issuer or any Restricted Subsidiary shall so repay or prepay any such other Pari Passu Debt, the Issuer will reduce (or offer to reduce) Obligations under this Indenture, the Notes and the Note Guarantees on a pro rata basis (based on the amount so applied to such repayments or prepayments) by, at its option, (i) redeeming Notes pursuant to Article 3 of this Indenture, (ii) making an offer (in accordance with the procedures set forth below for an Asset Sale Offer) to all holders to purchase their Notes; or (iii) purchasing Notes through privately negotiated transactions or open market purchases, in a manner that complies with this Indenture and applicable securities law at a purchase price of at least 100% of the principal amount thereof, plus the amount of accrued but unpaid interest thereon up to the principal amount of Notes to be repurchased;

(2)to acquire all or substantially all of the assets of, or any Capital Stock of, one or more other Persons engaged in a Permitted Business, if, after giving effect to any such acquisition of Capital Stock, the Permitted Business is or becomes a Restricted Subsidiary of the Issuer;

(3)to make capital expenditures or to make other expenditures for maintenance, repair or improvement of existing properties and assets; 

(4)to acquire other assets and properties (including fee and leasehold interests) that are used or useful in a Permitted Business, or that replace, in whole or in part, the properties or assets that are the subject of such Asset Sale; or

(5)any combination of clauses (1) through (4) of this Section 4.10(b);

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provided, however, that if the Issuer or any Restricted Subsidiary contractually commits within such 365-day period to apply the Net Proceeds within 180 days of such contractual commitment in accordance with any of the above clauses (1) through (5) of this Section 4.10(b) (an “Acceptable Commitment”), and such Net Proceeds are subsequently applied as contemplated by such contractual commitment, then the requirement for the application of Net Proceeds set forth in this paragraph shall be considered satisfied, and, in the event any Acceptable Commitment is later cancelled or terminated for any reason before the Net Proceeds are applied in connection therewith, then such Net Proceeds shall constitute Excess Proceeds (defined below) unless the Issuer or such Restricted Subsidiary enters into another Acceptable Commitment within 180 days of such cancellation or termination (a “Second Commitment”) and such Net Proceeds are actually applied in such manner within such 180 days; provided, further, that if any Second Commitment is later cancelled or terminated for any reason before such Net Proceeds are applied, then such Net Proceeds shall constitute Excess Proceeds to the extent the Asset Sale Proceeds Application Period has expired.

(c)Pending the final application of any Net Proceeds, the Issuer (or the applicable Restricted Subsidiary) may temporarily reduce revolving credit borrowings or otherwise invest the Net Proceeds from Asset Sales in any manner that is not prohibited by this Indenture.

(d)Any Net Proceeds from Asset Sales that are not applied or invested as provided in Section 4.10(b) will constitute “Excess Proceeds.” Within 20 Business Days (or earlier at the Issuer’s option) after the aggregate amount of Excess Proceeds exceeds $50.0 million, the Issuer will make an offer (an “Asset Sale Offer”) to all holders of Notes (with a copy to the Trustee) and all holders of other Pari Passu Debt containing provisions similar to those set forth in this Indenture with respect to offers to purchase, prepay or redeem with the proceeds of sales of assets to purchase, prepay or redeem the maximum principal amount of Notes and such other Pari Passu Debt (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection therewith) that may be purchased, prepaid or redeemed out of the Excess Proceeds.  The offer price in any Asset Sale Offer will be equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of purchase, prepayment or redemption, subject to the rights of holders of Notes on the relevant record date to receive interest due on the relevant interest payment date, and will be payable in cash.  The Issuer may satisfy the foregoing obligation with respect to Net Proceeds from an Asset Sale by making an Asset Sale Offer in advance of being required to do so by this Indenture (an “Advance Offer”) with respect to all or part of the available Net Proceeds (the “Advance Portion”).  If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Issuer may use those Excess Proceeds for any purpose not otherwise prohibited by this Indenture.  If the aggregate principal amount of Notes and other Pari Passu Debt tendered into (or required to be prepaid or redeemed in connection with) such Asset Sale Offer exceeds the amount of Excess Proceeds, the Issuer will select the Notes and the Pari Passu Debt to be purchased on a pro rata basis or by lot (and, in the case of Notes in global form, in accordance with the applicable procedures of the Depositary), based on the amounts tendered or required to be prepaid or redeemed (with such adjustments as may be deemed appropriate by the Issuer so that only Notes in minimum denominations of $2,000, or an integral multiple of $1,000 in excess thereof, will be left outstanding).  Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero (regardless of whether there are any remaining Excess Proceeds upon such completion), and in the case of an Advance Offer, the Advance Portion shall be excluded in subsequent calculation of Excess Proceeds.

(e)The Issuer will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to an Asset Sale Offer.  To the extent that the provisions of any securities laws or regulations conflict with the provisions of this Section 4.10, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 4.10 by virtue of such compliance.

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Section 4.11
	
Transactions with Affiliates.  

(a)The Issuer will not, and will not permit any of its Restricted Subsidiaries to, make any payment to, or sell, lease, transfer or otherwise dispose of any of its properties or assets to, or purchase any property or assets from, or enter into or make or amend any transaction, contract, agreement, understanding, loan, advance or guarantee with, or for the benefit of, any Affiliate of the Issuer involving aggregate payments or consideration in excess of $5.0 million (each, an “Affiliate Transaction”) unless:  

(1)the Affiliate Transaction is on terms that are no less favorable to the Issuer or the relevant Restricted Subsidiary than those that would have been obtained in a comparable transaction by the Issuer or such Restricted Subsidiary with an unrelated Person; and

(2)with respect to any Affiliate Transaction or series of related Affiliate Transactions involving aggregate consideration in excess of $20.0 million, a majority of the disinterested members of the Board of Directors of the Issuer (and of any affected Restricted Subsidiary, where applicable) shall have approved such Affiliate Transaction, as evidenced by a resolution of the Board of Directors of the Issuer.

(b)The following items will not be deemed to be Affiliate Transactions and, therefore, will not be subject to the provisions of Section 4.11(a) hereof:

(1) any indemnification or employment, consultancy, advisory, severance or separation agreement, employee benefit plan or any similar arrangement, including any issuances of securities, loans or other payments, grants or awards, in each case in respect of or to employees, officers, directors, advisors or consultants entered into by the Issuer or any of its Restricted Subsidiaries in the ordinary course of business and payments pursuant thereto;

(2)transactions between or among the Issuer and/or its Restricted Subsidiaries;

(3)management agreements (including tax management arrangements arising out of, or related to, the filing of a consolidated tax return) entered into, consistent with past practice, by the Issuer or any Restricted Subsidiary, on the one hand, and an Unrestricted Subsidiary or other entity, on the other hand, pursuant to which the Issuer or such Restricted Subsidiary controls the day‐to‐day operations of such entity;

(4)transactions with a Person (other than an Unrestricted Subsidiary of the Issuer) that is an Affiliate of the Issuer solely because the Issuer owns, directly or through a Restricted Subsidiary, an Equity Interest in, or controls, such Person;

(5)payment of reasonable and customary fees and reimbursements of expenses (pursuant to indemnity arrangements or otherwise) of officers, directors, employees or consultants of the Issuer or any of its Restricted Subsidiaries;

(6)any issuance of Equity Interests (other than Disqualified Stock) of the Issuer to Affiliates of the Issuer; 

(7)Permitted Investments and Restricted Payments that do not violate Section 4.07 hereof;

(8)loans or advances to employees in the ordinary course of business not to exceed $1.0 million in the aggregate at any one time outstanding;

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(9)any transaction pursuant to any contract or arrangement in existence on the date the Notes are first issued (including pursuant to any amendment thereto) or by any renewal, replacement, supplement or modification thereof so long as any such amendment, renewal, replacement, supplement or modification is not more disadvantageous to the holders in any material respect taken as a whole as compared to the original agreement or arrangement as in effect on the date the Notes are first issued as determined in good faith by the Board of Directors of the Issuer; 

(10)transactions with Persons who have entered into an agreement, contract or arrangement with the Issuer or any of its Restricted Subsidiaries to manage, own or operate a Gaming Facility because the Issuer and its Restricted Subsidiaries have not received the requisite approvals of the Gaming Authorities or are otherwise not permitted to manage, own or operate such Gaming Facility under applicable Gaming Laws; provided that such transactions shall have been approved by a majority of the disinterested members of the Issuer’s Board of Directors (or by the audit committee or any committee of the Board of Directors consisting of disinterested members of the Board of Directors) and determined by them to be in the best interests of the Issuer; 

(11)transactions with customers, clients, suppliers, contractors, landlords, lessors, lessees, licensors, licensees, Joint Venture or development partners or purchasers or sellers of goods or services, in each case in the ordinary course of business and otherwise in compliance with the terms of this Indenture which are fair to the Issuer and its Restricted Subsidiaries taken as a whole, in the determination of the Issuer’s Board of Directors (or by the audit committee or any committee of the Board of Directors) or management, or are on terms at least as favorable as might reasonably have been obtained at such time from an unaffiliated party; 

(12)transactions with Joint Ventures and Subsidiaries thereof and Unrestricted Subsidiaries relating to the provision of management services, overhead, sharing of customer lists and customer loyalty programs or that are approved by a majority of the disinterested members of the Issuer’s Board of Directors (or by the audit committee or any committee of the Board of Directors consisting of disinterested members of the Board of Directors) (a director shall be disinterested if he or she has no interest in such Joint Venture or Unrestricted Subsidiary other than through the Issuer and its Restricted Subsidiaries); provided that no Affiliate of the Issuer (other than the Issuer’s Restricted Subsidiaries) has an interest (other than indirectly through the Issuer and other than Unrestricted Subsidiaries or such Joint Ventures) in any such Joint Venture or Unrestricted Subsidiary; 

(13)any transaction with respect to which the Issuer or any of its Restricted Subsidiaries obtains an opinion as to the fairness to the Issuer or such Restricted Subsidiary, as applicable, of such Affiliate Transaction from a financial point of view issued by an accounting, appraisal or investment banking firm of national standing that such transaction is fair to the Issuer or such Restricted Subsidiary from a financial point of view or that such transaction meets the requirements of Section 4.11(a)(1); 

(14)transactions with a Person who is not an Affiliate immediately before the consummation of such transaction that becomes an Affiliate as a result of such transaction;

(15)(x) any lease entered into between the Issuer or any Restricted Subsidiary, as lessee and any Affiliate of the Issuer, as lessor, which is approved by the Board of Directors of the Issuer in good faith or (y) any lease entered into between the Issuer or any Restricted Subsidiary, as lessee, and any Affiliate of the Issuer, as lessor in the ordinary course of business; provided, that, in each case, such lease includes fair and reasonable terms no less favorable to the Issuer or such Restricted Subsidiary, as the case may be, than it would obtain in a comparable arm’s length transaction with a Person that is not an Affiliate; 

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(16)payments to and from, and transactions with, any Joint Ventures entered into in the ordinary course of business (including, including without limitation, any cash management activities related thereto);

(17)the payment of reasonable out-of-pocket costs and expenses relating to registration rights and indemnities provided to stockholders of the Issuer or any Parent Entity pursuant to a stockholders agreement or a registration rights agreement entered into on or after the Issue Date in connection therewith or similar equity holder’s agreements or limited liability company agreements;

(18)pledges of Equity Interests of Unrestricted Subsidiaries; and 

(19)transactions between the Issuer or any Restricted Subsidiary and any Person, which is an Affiliate solely due to a director or directors of such Person (or a parent company of such Person) also being a director of the Issuer; provided, however, that any such director abstains from voting as a director of the Issuer on any matter involving such other Person.

	
Section 4.12
	
Liens.  

(a)The Issuer will not, and will not permit any of its Restricted Subsidiaries to, directly or indirectly, create, incur or assume any Lien, except a Permitted Lien on or with respect to any of its property or assets including any shares of stock or Indebtedness of any Restricted Subsidiary, whether owned on the Issue Date or thereafter acquired, or any income, profits or proceeds therefrom, unless, in the case of any Lien securing Indebtedness that is subordinate in right of payment to the Notes or the Note Guarantees, the Notes or the Note Guarantees are secured by a Lien on such property, assets or proceeds that is senior in priority to such Lien, as long as such Indebtedness is secured by such Lien; and in all other cases, the Notes or the Guarantees, as the case may be, are secured on an equal and ratable basis with the obligations secured by such Lien for so long as such obligations are secured by such Lien.

(b)Any Lien created for the benefit of the holders of the Notes pursuant to the preceding paragraph shall provide by its terms that the Lien securing the Notes or the Guarantees, as the case may be, shall automatically and unconditionally be released and discharged upon the release and discharge of such Lien securing such Indebtedness or any sale, exchange or transfer to any Person not an Affiliate of the Issuer of the property or assets secured by such Lien securing such Indebtedness, or all of the Capital Stock held by the Issuer or any Restricted Subsidiary in, or all or substantially all of the properties and assets of, any Restricted Subsidiary that created such Lien securing such Indebtedness, in each case, in accordance with the provisions of this Indenture.  

(c)For purposes of determining compliance with this Section 4.12, (1) a Lien securing an item of Indebtedness need not be permitted solely by reference to one category of permitted Liens (or any portion thereof) described in the definition of “Permitted Liens” or pursuant to Section 4.12(a), but may be permitted in part under any combination thereof and (2) in the event that a Lien securing an item of Indebtedness (or any portion thereof) meets the criteria of one or more of the categories of permitted Liens (or any portion thereof) described in the definition of “Permitted Liens” or pursuant to Section 4.12(a), the Issuer may, in its sole discretion, classify or reclassify, or later divide, classify or reclassify (as if incurred or issued at such later time), such Lien securing such item of Indebtedness (or any portion thereof) in any manner that complies with this Section 4.12 and at the time of incurrence, issuance, classification or reclassification will be entitled to only include the amount and type of such Lien or such item of Indebtedness secured by such Lien (or any portion thereof) in one of the categories of permitted Liens (or any portion thereof) described in the definition of “Permitted Liens” or pursuant to Section 4.12(a) and, in such event, such Lien securing such item of Indebtedness (or any portion thereof) will be treated as being incurred, issued or existing pursuant to only such clause or clauses (or any portion thereof) or pursuant to 

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Section 4.12(a) without giving pro forma effect to such item (or portion thereof) when calculating the amount of Liens or Indebtedness that may be incurred or issued pursuant to any other clause or paragraph (or portion thereof) at such time.  In addition, with respect to any revolving loan Indebtedness or commitment relating to the incurrence or issuance of Indebtedness that is designated to be incurred or issued on any date pursuant to Section 4.09(b)(4), any Lien that does or that shall secure such Indebtedness may also be designated by the Issuer or any Restricted Subsidiary to be incurred on such date and, in such event, any related subsequent actual incurrence of such Lien shall be deemed for all purposes under this Indenture to be incurred on such prior date, including for purposes of calculating usage of any “Permitted Lien.” 

(d)With respect to any Lien securing Indebtedness that was permitted to secure such Indebtedness at the time of the incurrence or issuance of such Indebtedness, such Lien shall also be permitted to secure any Increased Amount of such Indebtedness.  The “Increased Amount” of any Indebtedness shall mean any increase in the amount of such Indebtedness that is not deemed to be an incurrence of Indebtedness for purposes of Section 4.09.

	
Section 4.13
	
Business Activities.  

The Issuer will not, and will not permit any of its Restricted Subsidiaries to, engage in any business other than Permitted Businesses, except to such extent as would not be material to the Issuer and its Restricted Subsidiaries taken as a whole.

	
Section 4.14
	
Corporate Existence.

Subject to Article 5 hereof, the Issuer 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 Issuer or any such Subsidiary; and 

(2)the rights (charter and statutory), licenses and franchises of the Issuer and its Subsidiaries; provided, however, that the Issuer 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 Board of Directors shall determine that the preservation thereof is no longer desirable in the conduct of the business of the Issuer 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.  

	
Section 4.15
	
Offer to Repurchase Upon Change of Control.  

(a)Upon the occurrence of (i) a Change of Control (if, at the Change of Control Time, the Notes do not have Investment Grade Status) or (ii) a Change of Control Triggering Event (if, at the Change of Control Time, the Notes have Investment Grade Status), the Issuer will make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to, but not including, the date of purchase, subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date (the “Change of Control Payment”).  Within 10 Business Days following any Change of Control, the Issuer will mail a notice to each Holder (with copies to the Trustee and paying agent) (or send electronically in accordance with the Applicable Procedures in the case of Notes in global form) describing the transaction or transactions that constitute the Change of Control and stating:

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(1)that the Change of Control Offer is being made pursuant to this Section 4.15 and that all Notes tendered will be accepted for payment; 

(2)the purchase price and the purchase date, which shall be no earlier than 20 days and no later than 60 days from the date such notice is mailed (the “Change of Control Payment Date”); 

(3)that any Note not tendered will continue to accrue interest; 

(4)that, unless the Issuer defaults in the payment of the Change of Control Payment, all Notes accepted for payment pursuant to the Change of Control Offer will cease to accrue interest after the Change of Control Payment Date;

(5)that Holders electing to have any Notes purchased pursuant to a Change of Control Offer will be required to surrender the Notes, with the form entitled “Option of Holder to Elect Purchase” attached to the Notes completed, or transfer by book-entry transfer, to the paying agent at the address specified in the notice prior to the close of business on the third Business Day preceding the Change of Control Payment Date;

(6)that Holders will be entitled to withdraw their election if the paying agent receives, not later than the close of business on the second Business Day preceding the Change of Control Payment Date, a telegram, telex, facsimile transmission or letter setting forth the name of the Holder, the principal amount of Notes delivered for purchase, and a statement that such Holder is withdrawing his election to have the Notes purchased; and

(7)that Holders whose Notes are being purchased only in part will be issued new Notes equal in principal amount to the unpurchased portion of the Notes surrendered, which unpurchased portion must be equal to $2,000 in principal amount or an integral multiple of $1,000 in excess thereof.

(b)On the Change of Control Payment Date, the Issuer will, to the extent lawful:

(1)accept for payment all Notes or portions of Notes properly tendered pursuant to the Change of Control Offer;

(2)deposit with the paying agent an amount equal to the Change of Control Payment in respect of all Notes or portions of Notes properly tendered; and

(3)deliver or cause to be delivered to the Trustee the Notes properly accepted together with an Officer’s Certificate stating the aggregate principal amount of Notes or portions of Notes being purchased by the Issuer.

(c)The paying agent will promptly send (but in any case not later than five days after the Change of Control Payment Date) to each Holder of Notes properly tendered the Change of Control Payment for such Notes, and the Trustee will promptly authenticate and mail (or cause to be transferred by book entry in accordance with the applicable procedures of the Depositary) to each Holder a new Note equal in principal amount to any unpurchased portion of the Notes surrendered, if any.  The Issuer will publicly announce the results of the Change of Control Offer on or as soon as practicable after the Change of Control Payment Date.

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(d)Notwithstanding anything to the contrary in this Section 4.15, the Issuer will not be required to make a Change of Control Offer upon a Change of Control if (1) a third party makes the Change of Control Offer in the manner, at the times and otherwise in compliance with the requirements set forth in this Section 4.15 and purchases all Notes properly tendered and not withdrawn under the Change of Control Offer, or (2) notice of redemption has been given pursuant to Section 3.07 hereof, unless and until there is a default in payment of the applicable redemption price.  

(e)If Holders of not less than 90% in aggregate principal amount of the outstanding Notes then outstanding validly tender and do not withdraw such Notes in a Change of Control Offer and the Issuer, or any third party making a Change of Control Offer in lieu of the Issuer as described in Section 4.15(d) hereof, purchases all of the Notes validly tendered and not withdrawn by such Holders, the Issuer or such third party will have the right, upon not less than 15 nor more than 60 days’ prior notice, given not more than 30 days following such purchase pursuant to the Change of Control Offer described in Section 4.15(d) hereof, to redeem all Notes that remain outstanding following such purchase at a price in cash equal to 101% of the principal amount thereof plus accrued and unpaid interest to, but not including, the date of redemption (subject to the right of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date).

(f)Notwithstanding anything to the contrary contained herein, a Change of Control Offer may be made in advance of a Change of Control, conditioned upon the consummation of such Change of Control, if a definitive agreement is in place for the Change of Control at the time the Change of Control Offer is made.  

(g)The Issuer will comply with the requirements of Rule 14e-1 under the Exchange Act and any other securities laws and regulations thereunder to the extent those laws and regulations are applicable in connection with each repurchase of Notes pursuant to a Change of Control Offer.  To the extent that the provisions of any securities laws or regulations conflict with the Change of Control provisions of this Section 4.15, the Issuer will comply with the applicable securities laws and regulations and will not be deemed to have breached its obligations under this Section 4.15 by virtue of such compliance.

	
Section 4.16
	
No Layering.

The Issuer will not, and will not permit any Guarantor to, incur or suffer to exist Indebtedness that is contractually subordinated in right of payment to any other Indebtedness of the Issuer or such Guarantor, as the case may be, unless such Indebtedness is also contractually subordinated in right of payment to the Notes or such Guarantor’s Note Guarantee, as the case may be.

	
Section 4.17
	
Suspension of Covenants.

(a)During any period of time that:  (i) the Notes have Investment Grade Status and (ii) no Default or Event of Default has occurred and is continuing (the occurrence of the events described in the foregoing clauses (i) and (ii) being collectively referred to as a “Covenant Suspension Event”), the Issuer and its Restricted Subsidiaries will not be subject to the provisions of Sections 4.07, 4.09 and 4.10 (collectively, the “Suspended Covenants”); provided that with respect to those covenants that will remain in effect (the “Effective Covenants”), references in such Effective Covenants to clauses in the Suspended Covenants will be deemed to continue to exist for purposes of interpretation of the Effective Covenants.

(b)In the event that the Issuer and its Restricted Subsidiaries are not subject to the Suspended Covenants with respect to the Notes for any period of time as a result of the foregoing, and, subsequently, at least one of the two designated Rating Agencies withdraws its rating or assigns the Notes a rating below the required Investment Grade Ratings (such date, the “Reversion Date”), then the Issuer and its Restricted 

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Subsidiaries will thereafter again be subject to the Suspended Covenants for the benefit of the Notes with respect to future events and the Guarantees, if any, of any Subsidiary Guarantors will be reinstated if such guarantees are then required by the terms of this Indenture.  The period of time between the date of the suspension of the covenants and the Reversion Date is referred to in this Indenture as the “Suspension Period.”

(c)On each Reversion Date, all Indebtedness incurred, or Disqualified Stock or preferred stock issued, during the Suspension Period will be classified as having been incurred or issued pursuant to Section 4.09(a) or (b) (to the extent such Indebtedness or Disqualified Stock or Preferred Stock would be permitted to be Incurred or issued thereunder as of the Reversion Date and after giving effect to Indebtedness Incurred or issued prior to the Suspension Period and outstanding on the Reversion Date).  To the extent such Indebtedness or Disqualified Stock or Preferred Stock would not be so permitted to be incurred or issued pursuant to Section 4.09(a) or (b), such Indebtedness or Disqualified Stock or Preferred Stock will be deemed to have been Existing Indebtedness, so that it is classified as permitted under Section 4.09(b)(ii).

(d)Calculations made after the Reversion Date of the amount available to be made as Restricted Payments under Section 4.07 will be made as though such Section 4.07 had been in effect since the Effective Date and throughout the Suspension Period.  Accordingly, Restricted Payments made during the Suspension Period will reduce the amount available to be made as Restricted Payments under Section 4.07(a).  Notwithstanding that the Suspended Covenants may be reinstated, no Default or Event of Default will be deemed to have occurred on the Reversion Date solely as a result of any actions taken by the Issuer or its Restricted Subsidiaries during the Suspension Period.  For purposes of Section 4.10 on the Reversion Date, the unutilized Excess Proceeds amount will be reset to zero.

(e)In the event that the Issuer and its Restricted Subsidiaries are not subject to the Suspended Covenants with respect to the Notes for any period of time as described above, during such period no Restricted Subsidiary may be designated as an Unrestricted Subsidiary.

(f)The Issuer shall deliver promptly to the Trustee an Officer’s Certificate notifying the Trustee of any Covenant Suspension Event or Reversion Date, as the case may be, pursuant to this Section 4.17, and the Trustee may rely on such Officer’s Certificate without independent investigation.  The Trustee shall have no obligation to monitor the ratings of the Notes, determine whether a Covenant Suspension Event or Reversion Date has occurred or notify the Holders of the same.

	
Section 4.18
	
Additional Note Guarantees.  

If the Issuer or any of its Restricted Subsidiaries acquires or creates another (i) Domestic Subsidiary after the Issue Date that incurs or Guarantees Indebtedness under the Senior Credit Facilities or (ii) Domestic Subsidiary after the Issue Date that incurs, Guarantees or otherwise becomes liable for any other Indebtedness of the Issuer or any Guarantor in an aggregate amount in excess of $10.0 million, then that newly acquired or created Domestic Subsidiary will become a Guarantor and execute a supplemental indenture within thirty (30) days after the date on which it was acquired or created (or such longer period of time as may be required to obtain any necessary approvals under applicable Gaming Laws or other regulatory requirements).  The Issuer shall use commercially reasonable efforts to obtain all approvals of any Gaming Authority necessary to permit a Domestic Subsidiary to become a Guarantor as promptly as practicable.

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Section 4.19
	
Designation of Restricted and Unrestricted Subsidiaries.

The Board of Directors of the Issuer may designate any Restricted Subsidiary to be an Unrestricted Subsidiary if that designation would not cause a Default.  If a Restricted Subsidiary is designated as an Unrestricted Subsidiary, the aggregate Fair Market Value of all outstanding Investments owned by the Issuer and its Restricted Subsidiaries in the Subsidiary designated as an Unrestricted Subsidiary will be deemed to be either (1) an Investment made as of the time of the designation and will reduce the amount available for Restricted Payments under Section 4.07 hereof or (2) a Permitted Investment under one or more clauses of the definition of Permitted Investments, as determined by the Issuer.  That designation will only be permitted if the Investment would be permitted at that time and if the Restricted Subsidiary otherwise meets the definition of an Unrestricted Subsidiary.  The Board of Directors of the Issuer may re-designate any Unrestricted Subsidiary to be a Restricted Subsidiary if that re-designation would not cause a Default.

ARTICLE 5
SUCCESSORS

	
Section 5.01
	
Merger, Consolidation or Sale of Assets.

The Issuer will not, directly or indirectly:  (1) consolidate or merge with or into another Person or consummate a Division as the Dividing Person (whether or not the Issuer is the surviving entity or Division Successor, as applicable), or (2) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Issuer and its Restricted Subsidiaries taken as a whole, in one or more related transactions, to another Person, unless:

(1)(A)  the Issuer is the surviving entity; or 

(B)the Person formed by or surviving any such consolidation or merger (if other than the Issuer) or to which such sale, assignment, transfer, conveyance or other disposition has been made (the “Successor”) is an entity organized or existing under the laws of the United States, any state of the United States or the District of Columbia; and, if such entity is not a corporation, a co-obligor of the Notes is a corporation organized or existing under any such laws; or

(C)in the case of a Division where the Issuer is the Dividing Person, either all Division Successors shall become co-Issuers of the Notes or the Division, as to any Division Successor that will not be a co-Issuer, is permitted under the provisions of Section 4.07 hereof (it being understood for the avoidance of doubt that a Division by the Issuer constitutes a Restricted Payment);

(2)the Successor (if other than the Issuer), assumes all the obligations of the Issuer under the Notes and this Indenture pursuant to a supplemental indenture;

(3)immediately after such transaction, no Default or Event of Default exists; and 

(4)the Issuer or the Successor would, on the date of such transaction after giving pro forma effect thereto and any related financing transactions as if the same had occurred at the beginning of the applicable four-quarter period (a) be permitted to incur at least $1.00 of additional Indebtedness pursuant to the Fixed Charge Coverage Ratio test set forth in Section 4.09(a); or (b) have had a Fixed Charge Coverage Ratio equal to or greater than the actual Fixed Charge Coverage Ratio for the Issuer for such four quarter period.

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In addition, the Issuer will not, directly or indirectly, lease all or substantially all of the properties and assets of it and its Restricted Subsidiaries taken as a whole, in one or more related transactions, to any other Person.

A Guarantor may not sell or otherwise dispose of all or substantially all of its assets to, or consolidate with or merge with or into or consummate a Division as the Dividing Person (whether or not such Guarantor is the surviving Person or Division Successor, as applicable), another Person, other than the Issuer or another Guarantor, unless:

(1)immediately after giving effect to that transaction, no Default or Event of Default exists; and

(2)either:

(A)the Person or Division Successor, as applicable, acquiring the property in any such sale, disposition or Division or the Person formed by or surviving any such consolidation, merger or Division assumes all the obligations of that Guarantor under its Note Guarantee and this Indenture pursuant to a supplemental indenture; or

(B)the Net Proceeds of such sale or other disposition are applied in accordance with the applicable provisions of this Indenture.

Upon any sale, assignment, transfer, conveyance or other disposition of all or substantially all of the Issuer’s and its Restricted Subsidiaries’ assets, taken as a whole, in compliance with the provisions of this Section 5.01, the Issuer will be released from the obligations under the Notes and this Indenture except with respect to any obligations that arise from, or are related to, such transaction.

This Section 5.01 will not apply to any sale, assignment, transfer, conveyance, lease or other disposition of assets between or among the Issuer and its Restricted Subsidiaries.  Clauses (3) and (4) of this Section 5.01 will not apply to (1) any merger or consolidation of the Issuer with or into one of its Restricted Subsidiaries for any purpose or (2) with or into an Affiliate solely for the purpose of reincorporating the Issuer in another jurisdiction.

	
Section 5.02
	
Successor Corporation 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 Issuer 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 Issuer 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 “Issuer” shall refer instead to the successor Person and not to the Issuer), and may exercise every right and power of such Issuer under this Indenture with the same effect as if such successor Person had been named as the Issuer herein; provided, however, that the predecessor Issuer shall not be relieved from the obligation to pay the principal of, premium on, if any, and interest on, the Notes except in the case of a sale of all of such Issuer’s assets in a transaction that is subject to, and that complies with the provisions of, Section 5.01 hereof.  

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ARTICLE 6
DEFAULTS AND REMEDIES

	
Section 6.01
	
Events of Default.

Each of the following is an “Event of Default”:

(1)default for 30 days in the payment when due of interest on the Notes;

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

(3)failure by the Issuer or any of its Restricted Subsidiaries to comply with the provisions of Section 5.01 hereof;

(4)subject to the last paragraph of Section 6.06, failure by the Issuer or any of its Restricted Subsidiaries for 60 days after notice to the Issuer by the Trustee or the Holders of at least 30% in aggregate principal amount of the Notes then outstanding (with a copy to the Trustee if given by the Holders) voting as a single class to comply with any of the other agreements in this Indenture;

(5)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 the Issuer or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Issuer or any of its Restricted Subsidiaries), whether such Indebtedness 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 interest or premium, 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 $25.0 million or more; provided, however, that if, prior to any acceleration of the Notes, (i) any such Payment Default is cured or waived, (ii) any such acceleration is rescinded, or (iii) such Indebtedness is repaid during the 15 business day period commencing upon the end of any applicable grace period for such Payment Default or the occurrence of such acceleration, as the case may be, any Default or Event of Default (but not any acceleration of the Notes) caused by such Payment Default or acceleration shall be automatically rescinded, so long as such rescission does not conflict with any judgment, decree or applicable law;

(6)failure by the Issuer or any of its Restricted Subsidiaries to pay final non-appealable judgments entered by a court or courts of competent jurisdiction in an uninsured aggregate amount in excess of $25.0 million, which judgments are not paid, waived, satisfied, discharged or stayed for a period of 60 days;

(7)except as permitted by this Indenture, any Note Guarantee is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms its obligations under its Note Guarantee; and

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(8)any Insolvency or Liquidation Proceeding with respect to the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary.

	
Section 6.02
	
Acceleration.

In the case of an Event of Default specified in clause 8 of Section 6.01 hereof, with respect to the Issuer, any Restricted Subsidiary of the Issuer that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Issuer that, taken together, would constitute a Significant Subsidiary, all outstanding Notes will 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 30% in aggregate principal amount of the then outstanding Notes by notice to the Issuer (with a copy to the Trustee if given by the Holders) may declare all the Notes to be due and payable immediately.

	
Section 6.03
	
Other Remedies.

If an Event of Default occurs and is continuing, the Trustee may pursue any available remedy to collect the payment of principal of, premium on, if any, or interest on, the Notes or to enforce the performance of any provision of the Notes, the Note Guarantees or this Indenture.

The Trustee may maintain a proceeding even if it does not possess any of the Notes or does not produce any of them in the proceeding.  A delay or omission by the Trustee or any Holder of a Note 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 then-outstanding Notes by written notice to the Trustee may, on behalf of the Holders of all of the Notes waive any existing Default or Event of Default and its consequences hereunder, except a continuing Default or Event of Default in the payment of principal of, premium on, if any, or interest, if any, on, the Notes (including in connection with an Asset Sale Offer or a Change of Control Offer); provided, however, that the Holders of a majority in aggregate principal amount of the then-outstanding Notes may rescind an acceleration and its consequences, including any related payment default that resulted from such acceleration.  Upon any such waiver, such Default shall cease to exist, and any Event of Default arising therefrom shall be deemed to have been cured 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 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.  However, the Trustee may refuse to follow any direction that conflicts with law or this Indenture, that the Trustee determines may be unduly prejudicial to the rights of other Holders of Notes or that may involve the Trustee in personal liability.  The Trustee may take any other action deemed proper by the Trustee which is not inconsistent with such direction.

The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default if it determines that withholding notice is in their interest, except a Default or Event of Default relating to the payment of principal, interest or premium, if any.  

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Section 6.06
	
Limitation on Suits.

In case an Event of Default occurs and is continuing, the Trustee will be under no obligation to exercise any of the rights or powers under this Indenture at the request or direction of any Holders of Notes unless such Holders have offered, and if requested, provided, to the Trustee indemnity or security satisfactory to the Trustee against any loss, liability or expense.  Except to enforce the right to receive payment of principal, premium, if any, or interest when due, no Holder of a Note may pursue any remedy with respect to this Indenture or the Notes unless:

(1)such Holder has previously given the Trustee notice that an Event of Default is continuing;

(2)Holders of at least 30% in aggregate principal amount of the then-outstanding Notes have requested the Trustee to pursue the remedy in writing;

(3)such Holders have offered, and if requested, provided the Trustee reasonable security or indemnity against any loss, liability or expense;

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

(5)Holders of a majority in aggregate principal amount of the then-outstanding Notes have not given the Trustee a direction inconsistent with such request within such 60-day period.

Notwithstanding clause (4) of Section 6.01 hereof, except as provided in the second to last sentence of this paragraph, the sole remedy for any failure to comply by the Issuer with Section 4.03 hereof shall be the payment of liquidated damages as described in the following sentence, such failure to comply shall not constitute an Event of Default, and Holders of the Notes shall not have any right under this Indenture to accelerate the maturity of the Notes as a result of any such failure to comply.  If a failure to comply by the Issuer with Section 4.03 hereof continues for 60 days after the Issuer receives notice of such failure to comply in accordance with clause (4) of the first paragraph of Section 6.01 hereof (such notice, the “Reports Default Notice”), and is continuing on the 60th day following the Issuer’s receipt of the Reports Default Notice, the Issuer will pay liquidated damages to all Holders of Notes at a rate per annum equal to 0.25% of the principal amount of the Notes from the 60th day following the Issuer’s receipt of the Reports Default Notice to but not including the earlier of (x) the 121st day following the Issuer’s receipt of the Reports Default Notice and (y) the date on which the failure to comply by the Issuer with Section 4.03 hereof shall have been cured or waived.  On the earlier of the dates specified in the immediately preceding clauses (x) and (y), such liquidated damages will cease to accrue.  If the failure to comply by the Issuer with Section 4.03 hereof shall not have been cured or waived on or before the 121st day following the Issuer’s receipt of the Reports Default Notice, then the failure to comply by the Issuer with Section 4.03 hereof shall on such 121st day constitute an Event of Default.  A failure to comply with Section 4.03 hereof automatically shall cease to be continuing and shall be deemed cured at such time as the Issuer furnishes to the Trustee the applicable information or report (it being understood that the availability of such information or report on the Commission’s EDGAR service (or any successor thereto) shall be deemed to satisfy the Issuer’s obligation to furnish such information or report to the Trustee); provided, however, that the Trustee shall have no obligation whatsoever to determine whether or not such information, documents or reports have been filed pursuant to the EDGAR service (or its successor).

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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 of, premium on, if any, or interest on, the Note, on or after the respective due dates expressed in the 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; provided that a Holder shall not have the right to institute any such suit for the enforcement or payment if and to the extent that the institution or prosecution thereof or the entry of judgment therein would, under applicable law, result in the surrender, impairment, waiver or loss of the Lien of this Indenture upon any property subject to such Lien.

	
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 Issuer for the whole amount of principal of, premium on, if any, and interest remaining unpaid on, the Notes 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.

	
Section 6.09
	
Trustee May File Proofs of Claim.

The Trustee 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 compensation and reasonable 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 Issuer (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 compensation and reasonable 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.  The Trustee may, on behalf of the Holders, vote for the election of a trustee in bankruptcy or similar official and be a member of a creditors’ or other similar committee.

	
Section 6.10
	
Priorities.

After an Event of Default any moneys or properties distributable in respect of the Issuer’s or any Guarantor’s obligations under this Indenture, or if the Trustee collects any money or property pursuant to this Article 6, shall be paid out or distributed in the following order:

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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 for amounts due and unpaid on the Notes for principal, premium, if any, and interest ratably, without preference or priority of any kind, according to the amounts due and payable on the Notes for principal, premium, if any, and interest respectively; and

Third:  to the Issuer 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 of the suit, and the court in its discretion may assess reasonable costs, including reasonable attorneys’ fees, 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.

	
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.

ARTICLE 7
TRUSTEE

	
Section 7.01
	
Duties of Trustee.

(a)If an Event of Default has occurred and is continuing, the Trustee will 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:

(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, the Trustee will examine the certificates and opinions to determine whether or not they conform to the requirements of this Indenture (but shall not be required to verify any amounts or calculations contained therein).

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(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), (c) and (e) 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 or direction of any Holders, unless such Holder has offered, and if requested, provided, to the Trustee security and indemnity satisfactory to the Trustee 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 Issuer.  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 not be responsible for, and makes no representation as to any Gaming Law or any Gaming Authority, whether any holder or beneficial owner of Notes could be licensed, qualified or found suitable under any Gaming Law or by any Gaming Authority, and any consequence to any Holder or beneficial owner of Notes under any Gaming Law or by any Gaming Authority.

	
Section 7.02
	
Rights of Trustee.

(a)The Trustee may conclusively rely upon any document 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 Officer’s 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 Officer’s Certificate or Opinion of Counsel.  The Trustee may consult with counsel 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.

(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.  The permissive right of the Trustee to do things enumerated in this Indenture shall not be construed as a duty of the Trustee.

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

(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, and if requested, provided to the Trustee indemnity or security satisfactory to the Trustee against the losses, liabilities and expenses that might be incurred by it in compliance with such request or direction.

(g)The Trustee shall not be required to give a note, bond or surety in respect of the trusts and powers under this Indenture.  

(h)Delivery of reports, information and documents to the Trustee described in Section 4.03 of this Indenture is for informational purposes only and the Trustee’s receipt of such shall not constitute actual or constructive notice of any information contained therein or determinable from information contained therein, including the Issuer’s compliance with any of its covenants hereunder (as to which the Trustee is entitled to rely conclusively on Officer’s Certificates).  The Trustee is under no duty to examine such reports, information or documents to ensure compliance with the provision of this Indenture or to ascertain the correctness or otherwise of the information or the statements contained therein.

(i)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.

(j)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.

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

	
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 Issuer or any Affiliate of the Issuer with the same rights it would have if it were not Trustee.  Any Agent may do the same with like rights and duties.  The Trustee is also subject to Section 7.10 and Section 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 or the Note Guarantees, it shall not be accountable for the Issuer’s use of the proceeds from the Notes or any money paid to the Issuer or upon the Issuer’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 document in connection with the sale of the Notes or pursuant to this Indenture other than its certificate of authentication.  The Trustee shall have no responsibility or liability with respect to any information, statement or recital in the Offering Memorandum or in any other disclosure material prepared or distributed with respect to the Issuance of the Notes.

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Section 7.05
	
Notice of Defaults.

If a Default or Event of Default occurs and is continuing and if the Trustee has notice (in accordance with Section 7.02(j)), the Trustee will mail to Holders of Notes a notice of the Default or Event of Default within 90 days after it occurs or if known after 90 days, promptly upon obtaining knowledge thereof.  Except in the case of a Default or Event of Default in payment of principal of, premium on, if any, or interest on, any Note, the Trustee may withhold the notice if and so long as the Trustee in good faith determines that withholding the notice is in the interests of the Holders of the Notes.

	
Section 7.06
	
Compensation and Indemnity.

(a)The Issuer will pay to the Trustee from time to time compensation for its acceptance of this Indenture and services hereunder as agreed from time to time.  The Trustee’s compensation will not be limited by any law on compensation of a trustee of an express trust.  The Issuer 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, counsel, accountants and experts.

(b)The Issuer and the Guarantors will jointly and severally indemnify the Trustee against any and all losses, liabilities or expenses (including reasonable attorneys’ fees and expenses) incurred by it arising out of or in connection with the acceptance or administration of its duties under this Indenture or the exercise of its rights and powers under this Indenture, the Notes and the Guarantees, including the costs and expenses of enforcing this Indenture against the Issuer and the Guarantors (including this Section 7.06) and defending itself against any claim (whether asserted by the Issuer, 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 attributable to its gross negligence or willful misconduct.  The Trustee will notify the Issuer promptly of any claim for which it may seek indemnity.  Failure by the Trustee to so notify the Issuer will not relieve the Issuer or any of the Guarantors of their obligations hereunder.  Such Issuer or such Guarantor will defend the claim and the Trustee will cooperate in the defense as determined by a final order of a court of competent jurisdiction.  The Trustee may have separate counsel and the Issuer will pay the reasonable fees and expenses of such counsel.  Neither the Issuer nor any Guarantor need pay for any settlement made without its consent, which consent will not be unreasonably withheld.  References in this paragraph 7.06(b) shall include the Trustee and its officers, directors, employees and agents.

(c)The obligations of the Issuer and the Guarantors under this Section 7.06 will survive the (i) satisfaction and discharge of this Indenture and (ii) resignation or removal of the Trustee.

(d)To secure the Issuer’s and the Guarantors’ payment obligations in this Section 7.06, 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 of, premium on, if any, or interest on, particular 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(7) or (8) 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 the Bankruptcy Code.

	
(f)
	
“Trustee” for the purposes of this Section 7.06 shall include any predecessor Trustee and the Trustee in each of its capacities hereunder and each agent, custodian and other person employed to act hereunder; provided, however, that the negligence, willful misconduct or bad faith of any Trustee hereunder shall not affect the rights of any other Trustee hereunder.

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Section 7.07
	
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 7.07.

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

(1)the Trustee fails to comply with Section 7.09 hereof;

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

(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 Issuer 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 may appoint a successor Trustee to replace the successor Trustee appointed by the Issuer.

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

(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 7.09 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 Issuer.  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 7.06 hereof.  Notwithstanding replacement of the Trustee pursuant to this Section 7.07, the Issuer’s obligations under Section 7.06 hereof will continue for the benefit of the retiring Trustee.

	
Section 7.08
	
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.

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Section 7.09
	
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.  

ARTICLE 8
LEGAL DEFEASANCE AND COVENANT DEFEASANCE

	
Section 8.01
	
Option to Effect Legal Defeasance or Covenant Defeasance.

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

	
Section 8.02
	
Legal Defeasance and Discharge.

Upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to this Section 8.02, the Issuer 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 Note Guarantees) on the date the conditions set forth below are satisfied (hereinafter, “Legal Defeasance”).  For this purpose, Legal Defeasance means that the Issuer and the Guarantors will be deemed to have paid and discharged the entire Indebtedness represented by the outstanding Notes (including the Note Guarantees), 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, the Note Guarantees and this Indenture (and the Trustee, on demand of and at the expense of the Issuer, shall execute such instruments requested by the Issuer acknowledging the same), except for the following provisions which will survive until otherwise terminated or discharged hereunder:

(1)the rights of Holders of outstanding Notes to receive payments in respect of the principal of, or interest or premium on, if any, such Notes when such payments are due from the trust referred to in Section 8.05 hereof;

(2)the Issuer’s obligations with respect to the Notes concerning issuing temporary Notes, registration of Notes, mutilated, destroyed, lost or stolen Notes and the maintenance of an office or agency for payment and money for security payments held in trust;

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

(4)this Article 8.

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

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Section 8.03
	
Covenant Defeasance.

Upon the Issuer’s exercise under Section 8.01 hereof of the option applicable to this Section 8.03, the Issuer 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 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.18 and 4.19 hereof and clause (4) of Section 5.01 hereof with respect to the outstanding Notes on and after the date the conditions set forth in Section 8.04 hereof are satisfied (hereinafter, “Covenant Defeasance”), and the Notes will 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 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 Note Guarantees, the Issuer 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 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 Note Guarantees will be unaffected thereby.  In addition, upon the Issuer’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), (4), (5), (6) and (7) hereof will not constitute Events of Default.

	
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:

(1)the Issuer must irrevocably deposit with the Trustee, in trust, for the benefit of the Holders of the Notes, 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, in the opinion of a nationally recognized investment bank, appraisal firm or firm of independent public accountants, to pay the principal of, or interest and premium, if any, on, the outstanding Notes on the stated date for payment thereof or on the applicable redemption date, as the case may be, and the Issuer must specify whether the Notes are being defeased to such stated date for payment or to a particular redemption date;

(2)in the case of an election under Section 8.02 hereof, the Issuer must deliver to the Trustee an Opinion of Counsel in form reasonably acceptable to the Trustee confirming that:

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

(B)since the Issue Date, 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 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;

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(3)in the case of an election under Section 8.03 hereof, the Issuer must deliver to the Trustee an Opinion of Counsel in form reasonably acceptable to the Trustee confirming that the Holders of the outstanding Notes 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 (other than a Default or Event of Default resulting from the borrowing of funds to be applied to such deposit (and any similar concurrent deposit relating to other Indebtedness), and the granting of Liens to secure such borrowings) has occurred and is continuing on the date of such deposit (other than a Default or Event of Default resulting from transactions occurring substantially contemporaneously with the borrowing of funds, or from the borrowing of funds to be applied to such deposit (and any similar concurrent deposit relating to other Indebtedness), and the granting of Liens to secure such borrowings);

(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 and the agreements governing any other Indebtedness being defeased, discharged or replaced) to which the Issuer or any of the Guarantors is a party or by which the Issuer or any of the Guarantors is bound;

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

(7)The Issuer must deliver to the Trustee an Officer’s 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 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 the 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 Issuer 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.

Notwithstanding anything in this Article 8 to the contrary, the Trustee will deliver or pay to the Issuer from time to time upon the request of the Issuer 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 Issuer.

Subject to applicable abandoned property laws, money deposited with the Trustee or any Paying Agent, or then held by the Issuer, 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 Issuer on its request or (if then held by the Issuer) will be discharged from such trust; and the Holder of such Note will thereafter be permitted to look only to the Issuer for payment thereof, and all liability of the Trustee or such Paying Agent with respect to such trust money, and all liability of the Issuer 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 Issuer 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 Issuer.

	
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 Issuer’s and the Guarantors’ obligations under this Indenture and the Notes and the Note Guarantees 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 Issuer makes any payment of principal of, premium on, if any, or interest on, any Note following the reinstatement of its obligations, the Issuer 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, without the consent of any Holder of Notes, the Issuer, the Guarantors and the Trustee may amend or supplement any of the Note Documents:

(1)to cure any ambiguity, defect, omission, mistake 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 Issuer’s or a Guarantor’s obligations to the Holders of the Notes and Note Guarantees by a successor to such Issuer 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 any Notes or that does not adversely affect the legal rights under this Indenture of any holder of Notes, including to comply with requirements of the SEC or any applicable securities depository in order to maintain the transferability of the Notes pursuant to Rule 144A or Regulation S;

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(5)to make any change that would provide any additional rights or benefits to the Holders of the Notes and, in each case, the release, suspension or termination thereof, or that does not adversely affect the legal rights hereunder of any such Holder;

(6)to conform the text of this Indenture, the Notes or the Note Guarantees to any provision of the “Description of the notes” section of the Offering Memorandum, to the extent that such provision in that “Description of the notes” was intended to be a verbatim recitation of a provision of this Indenture, the Notes or the Note Guarantees;

(7)to release the Note Guarantee of a Guarantor in accordance with the terms of this Indenture;

(8)to allow any Guarantor to execute a supplemental indenture and/or a Note Guarantee with respect to the Notes;

(9)to provide for the issuance of Additional Notes in accordance with the limitations set forth in this Indenture as of the date hereof;

(10)to comply with requirements of the SEC in order to effect or maintain the qualification of this Indenture under the Trust Indenture Act of 1939, as amended, if then applicable;

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

(12)to provide for the acceptance or appointment of a successor trustee; or

(13)to amend the provisions of this Indenture relating to the transfer and legending of Notes as permitted by this Indenture, including to facilitate the issuance and administration of the Notes.  

For the avoidance of doubt, no amendment or deletion of any of the covenants described under Article 4 hereof in accordance with the amendment provisions set forth in this Indenture, or action taken in compliance with such covenants in effect at the time of such action, shall be deemed to make any change in the provisions of this Indenture relating to the contractual right of any Holder of the Notes to receive payments of principal of, or interest or premium, if any, on the Note.

The consent of the Holders is not necessary under this Indenture to approve the particular form of any proposed amendment, supplement, waiver or consent.  It is sufficient if such consent approves the substance of the proposed amendment, supplement, waiver or consent.

Upon the request of the Issuer accompanied by a resolution of the Issuer’s Board of Directors authorizing the execution of any such amended or supplemental indenture, and upon receipt by the Trustee of the documents described in Sections 7.02 and 9.06 hereof, the Trustee will join with the Issuer 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.  Notwithstanding the foregoing, no Opinion of Counsel or board resolution, shall be required in connection with the addition of a Guarantor under this Indenture upon execution and delivery by such Guarantor and the Trustee of a supplemental indenture to this Indenture, in the form attached as Exhibit E hereto.

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Section 9.02
	
With Consent of Holders of Notes.

Except as provided below in this Section 9.02, the Issuer, the Guarantors and the Trustee may amend or supplement this Indenture (including, without limitation, Section 3.10, 4.10 and 4.15 hereof) and the Notes and the Note Guarantees with the consent of the Holders of at least a majority in aggregate principal amount of the then-outstanding Notes (including, without limitation, Additional Notes, if any) voting as a single class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for 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 on, if any, or interest on the Notes, except a payment default resulting from an acceleration that has been rescinded) or compliance with any provision of this Indenture, the Notes, or the Note Guarantees may be waived with the consent of the Holders of a majority in aggregate principal amount of the then-outstanding Notes (including, without limitation, Additional Notes, if any) voting as a single class (including, without limitation, consents obtained in connection with a purchase of, or tender offer or exchange offer for, Notes).  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 Issuer accompanied by a resolution of its Board of Directors 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 Holders of Notes as aforesaid, and upon receipt by the Trustee of the documents described in Section 7.02 hereof, the Trustee will join with the Issuer and the Guarantors in the execution of such amended or supplemental indenture unless such amended or supplemental indenture 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 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.

After an amendment, supplement or waiver under this Section 9.02 becomes effective, the Issuer will send to the Holders of Notes affected thereby a notice briefly describing the amendment, supplement or waiver.  Any failure of the Issuer 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.  Subject to Sections 6.04 and 6.07 hereof, the Holders of a majority in aggregate principal amount of the Notes then outstanding voting as a single class may waive compliance in a particular instance by the Issuer with any provision of this Indenture, the Notes or the Note Guarantees.  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 whose Holders must consent to an amendment, supplement or waiver;

(2)reduce the principal of or change the fixed maturity of any Note or the premium payable in connection with the redemption of the Notes;

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

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

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(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 contractual rights of Holders of Notes to receive payments of principal of, premium on, if any, or interest on, the Notes (other than as permitted by clause (7) below);

(7)waive a redemption payment with respect to any Note (other than a payment required by Sections 3.10, 4.10 or 4.15 hereof);

(8)contractually subordinate the Notes or the Guarantees to any other Indebtedness; or

(9)make any change in the preceding amendment and waiver provisions.

	
Section 9.03
	
[Reserved].

	
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 the amendment, supplement or waiver becomes effective.  An amendment, supplement or waiver becomes effective in accordance with its terms and thereafter binds every Holder.

The Issuer may, but shall not be obligated to, fix a record date for the purpose of determining the Holders entitled to give their consent or take any other action described above or required or permitted to be taken pursuant to this Indenture.  If a record date is fixed, then notwithstanding the immediately preceding paragraph, those Persons who were Holders at such record date (or their duly designated proxies), and only those Persons, shall be entitled to give such consent or to revoke any consent previously given or to take any such action, whether or not such Persons continue to be Holders after such record date.

	
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 Issuer in exchange for all Notes may issue and the Trustee shall, upon receipt of an Authentication Order, authenticate new Notes that reflect the amendment, supplement or waiver.

Failure to make the appropriate notation or issue a new Note 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 Issuer may not sign an amended or supplemental indenture until its Board of Directors approves it.  In executing any amended or supplemental indenture, the Trustee will be entitled to receive 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 Officer’s Certificate and an Opinion of Counsel stating that the 

98

 

 

execution of such amended or supplemental indenture is authorized or permitted by this Indenture, and an Opinion of Counsel that it will be valid and binding upon the Issuer and Guarantors in accordance with its terms, subject to customary exceptions.  Notwithstanding the foregoing, neither an Opinion of Counsel nor a resolution, shall be required for the Trustee to execute any supplemental indenture to this Indenture, the form of which is attached as Exhibit E hereto adding a new Guarantor under this Indenture.

ARTICLE 10
NOTE GUARANTEES

	
Section 10.01
	
Guarantee.

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

(1) the principal of, premium on, if any, and interest on, the Notes will be promptly paid in full when due, whether at maturity, by acceleration, redemption or otherwise, and interest on the overdue principal of, premium on, if any, and interest on, the Notes, if lawful, and all other obligations of the Issuer 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 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 or this Indenture, the absence of any action to enforce the same, any waiver or consent by any Holder of the Notes with respect to any provisions hereof or thereof, the recovery of any judgment against the Issuer, 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 Issuer, any right to require a proceeding first against the Issuer, protest, notice and all demands whatsoever and covenant that this Note Guarantee will not be discharged except by complete performance of the obligations contained in the Notes and this Indenture.

(c)If any Holder or the Trustee is required by any court or otherwise to return to the Issuer, the Guarantors or any custodian, trustee, liquidator or other similar official acting in relation to either the Issuer or the Guarantors, any amount paid by either to the Trustee or such Holder, this Note Guarantee, 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 of this Note Guarantee, notwithstanding any 

99

 

 

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 Note Guarantee.  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 Note Guarantee.

	
Section 10.02
	
Limitation on Guarantor Liability.

Each Guarantor, and by its acceptance of Notes, each Holder, hereby confirms that it is the intention of all such parties that the Note Guarantee 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 Note Guarantee.  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 Note Guarantee not constituting a fraudulent transfer or conveyance.

	
Section 10.03
	
Execution and Delivery of Note Guarantee.

To evidence its Note Guarantee set forth in Section 10.01 hereof, each Guarantor hereby agrees that a notation of such Note Guarantee substantially in the form attached as Exhibit D hereto will be endorsed by an Officer of such Guarantor on each Note 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 Note Guarantee set forth in Section 10.01 hereof will remain in full force and effect notwithstanding any failure to endorse on each Note a notation of such Note Guarantee.

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

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

In the event that the Issuer or any of its Restricted Subsidiaries creates or acquires any Subsidiary after the Issue Date, if required by Section 4.18 hereof, the Issuer will cause such Restricted Subsidiary to comply with the provisions of Section 4.18 hereof and this Article 10, to the extent applicable.

	
Section 10.04
	
Guarantors May Consolidate, etc., on Certain Terms.

Except as otherwise provided in Section 10.05 hereof, no Guarantor may sell or otherwise dispose of all or substantially all of its assets to, or consolidate with or merge with or into (whether or not such Guarantor is the surviving Person) another Person, other than the Issuer or another Guarantor, unless:

(1)immediately after giving effect to such transaction, no Default or Event of Default exists; 

100

 

 

(2)either:

(A)subject to Section 10.05 hereof, the Person acquiring the property in any such sale or disposition or the Person formed by or surviving any such consolidation or merger unconditionally assumes all the obligations of that Guarantor under its Note Guarantee and this Indenture, pursuant to a supplemental indenture in form satisfactory to the Trustee; or

(B)the Net Proceeds of such sale or other disposition are applied in accordance with the applicable provisions of this Indenture, including without limitation, Section 4.10 hereof.  

In case of any such consolidation, merger, sale or conveyance and upon the assumption by the successor Person, by supplemental indenture, executed and delivered to the Trustee and satisfactory in form to the Trustee, of the Note Guarantee endorsed upon the Notes and the due and punctual performance of all of the covenants and conditions of this Indenture to be performed by the Guarantor, such successor Person will succeed to and be substituted for the Guarantor with the same effect as if it had been named herein as a Guarantor.  Such successor Person thereupon may cause to be signed any or all of the Note Guarantees to be endorsed upon all of the Notes issuable hereunder which theretofore shall not have been signed by the Issuer and delivered to the Trustee.  All the Note Guarantees so issued will in all respects have the same legal rank and benefit under this Indenture as the Note Guarantees theretofore and thereafter issued in accordance with the terms of this Indenture as though all of such Note Guarantees had been issued at the date of the execution hereof.

Except as set forth in Articles 4 and 5 hereof, and notwithstanding clauses 2(A) and (B) above, nothing contained in this Indenture or in any of the Notes will prevent any consolidation or merger of a Guarantor with or into the Issuer or another Guarantor, or will prevent any sale or conveyance of the property of a Guarantor as an entirety or substantially as an entirety to such Issuer or another Guarantor.

	
Section 10.05
	
Releases.

The Note Guarantee of a Guarantor will be released:

(1)in connection with any sale, assignment, exchange, transfer, conveyance or other disposition of all or substantially all of the properties or assets of that Guarantor (including by way of merger, consolidation, amalgamation or otherwise) to a Person that is not (either before or after giving effect to such transaction) the Issuer or a Restricted Subsidiary of the Issuer, if such sale, assignment, exchange, transfer, conveyance or other disposition is made in accordance with the applicable provisions of this Indenture;

(2)in connection with any sale, assignment, exchange, transfer, conveyance or other disposition of Capital Stock of that Guarantor by way of merger, consolidation, amalgamation or otherwise after which the applicable Guarantor is no longer a Restricted Subsidiary, if such sale, assignment, exchange, transfer, conveyance or other disposition is made in accordance with the applicable provisions of this Indenture;

(3)if the release or discharge of the Guarantee by such Guarantor is with respect to the Indebtedness that resulted in the creation of such Guarantee;

(4)if the Issuer designates any Restricted Subsidiary that is a Guarantor to be an Unrestricted Subsidiary in accordance with Section 4.19 hereof;

101

 

 

(5)upon Legal Defeasance or Covenant Defeasance in accordance with Article 8 hereof or Satisfaction and Discharge of this Indenture in accordance with Article 11 hereof; or

(6)upon the liquidation or dissolution of a Guarantor in a transaction or series of transactions that does not violate the terms of this Indenture.

Upon delivery to the Trustee of an Officer’s Certificate and Opinion of Counsel to the effect that the conditions set forth in clauses (1) through (6) hereof, as applicable, have been complied with, the Trustee, at the Issuer’s expense, will execute any documents reasonably requested by the Issuer to evidence the release of the applicable Note Guarantee.

Any Guarantor not released from its obligations under its Note Guarantee as provided in this Section 10.05 will remain liable for the full amount of principal of, premium on, if any, and interest, if any, on, the Notes 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 satisfied and discharged and will cease to be of further effect as to all Notes issued hereunder (except for certain surviving rights of the Trustee and the Issuer’s obligations in connection therewith), when:

(1)either:

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

(B)all Notes 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 or otherwise or will become due and payable within one year (or are to be irrevocably called for redemption within one year) and the Issuer 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 not delivered to the Trustee for cancellation for principal of, premium on if any, and accrued interest to the date of maturity or redemption;

(2)the Issuer has or any Guarantor has paid or caused to be paid all sums payable by them under this Indenture; and

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

102

 

 

In addition, the Issuer must deliver an Officer’s Certificate and an Opinion of Counsel to the Trustee stating that all conditions precedent to satisfaction and discharge have been complied with.

The satisfaction and discharge will be effective on the day on which all the applicable conditions above have been satisfied.  Upon compliance with the foregoing, the Trustee shall execute, at the Issuer’s expense, such instrument(s) requested by the Issuer acknowledging the satisfaction and discharge of all of the Issuer’s Obligations under the 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 7.06 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 and this Indenture, to the payment, either directly or through any Paying Agent (including the Issuer acting as their own Paying Agent) as the Trustee may determine, to the Persons entitled thereto, of the principal, premium, 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 Issuer’s and any Guarantor’s obligations under this Indenture and the Notes shall be revived and reinstated as though no deposit had occurred pursuant to Section 11.01 hereof; provided that if the Issuer has made any payment of principal of, premium on, if any, or interest on any Notes because of the reinstatement of its obligations, the Issuer shall be subrogated to the rights of the Holders of such Notes to receive such payment from the money or Government Securities held by the Trustee or Paying Agent.

ARTICLE 12
MISCELLANEOUS

	
Section 12.01
	
[Reserved].

	
Section 12.02
	
Notices.

Any notice or communication by the Issuer, 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 Issuer and/or any Guarantor:

Golden Entertainment, Inc.
6595 S. Jones Boulevard
Las Vegas, Nevada 89118
Facsimile:  (702) 922-3667
Email:  shiggins@goldenent.com 
Attention:  Sean T. Higgins

103

 

 

With a copy to:

Latham & Watkins LLP
885 Third Avenue 
New York, New York 10022
Facsimile:  (212) 751-4864
Email:  senet.bischoff@lw.com 
Attention:  Senet Bischoff

If to the Trustee:

Wilmington Trust, National Association
246 Goose Lane, Suite 105
Guilford, Connecticut 06437 
Facsimile No.:  (203) 453-1183
Attention:  Golden Entertainment Notes Administrator

With a copy to:

Shipman & Goodwin LLP
One Constitution Plaza
Hartford, Connecticut 06103
Facsimile No. (860) 251-5212
Attention:  Marie C. Pollio, Esq.

The Issuer, 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 of Notes) 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; provided that notices given to the Trustee will be deemed given on the date actually received by a Responsible Officer of the Trustee.

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.

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, or in the case of Notes in global form, sent electronically in accordance with the applicable procedures of the Depositary.  Failure to send a notice or communication to a Holder or any defect in it will not affect its sufficiency with respect to other Holders.

	
Section 12.03
	
[Reserved].

	
Section 12.04
	
Certificate and Opinion as to Conditions Precedent.

Upon any request or application by the Issuer to the Trustee to take any action under this Indenture, the Issuer shall furnish to the Trustee:

104

 

 

(1)an Officer’s Certificate in form 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 complied with; and

(2)an Opinion of Counsel in form 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 complied with.

	
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 Section 4.04(a)) must include:

(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 complied with; and

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

	
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, Partners, Members, Officers, Employees and Stockholders.

No director, partner, member officer, employee, incorporator or stockholder of the Issuer or any Guarantor, as such, will have any liability for any obligations of the Issuer or the Guarantors under the Notes, this Indenture, the Note Guarantees 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.  The waiver may not be effective to waive liabilities under the federal securities laws.

	
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 NOTE GUARANTEES 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.

105

 

 

	
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 Issuer 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 Issuer 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 10.05 hereof.

	
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.  The exchange of copies of this Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Indenture as to the parties hereto and may be used in lieu of the original Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

	
Section 12.13
	
Table of Contents, Headings, etc.

The Table of Contents 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 ISSUER, THE GUARANTORS 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 TRANSACTIONS CONTEMPLATED HEREBY.

	
Section 12.15
	
U.S.A.  PATRIOT Act.

The parties hereto acknowledge that in accordance with Section 326 of the USA PATRIOT Act, the Trustee, like all financial institutions and in order to help fight the funding of terrorism and money laundering, is required to obtain, verify, and record information that identifies each person or legal entity that establishes a relationship or opens an account with the Trustee.  The parties to this Indenture agree that they will provide the Trustee with such information as it may request in order for the Trustee to satisfy the requirements of the USA PATRIOT Act.

106

 

 

	
Section 12.16
	
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]

 

107

 

 

Dated as of the date first written above.

 

	
GOLDEN ENTERTAINMENT, INC.

	
 

	
By:
	
 
	
/s/ Sean T. Higgins

	
 
	
 
	
Name: Sean T. Higgins

	
 
	
 
	
Title:  Chief Legal Officer and Executive Vice President of Development, Compliance and Government Affairs

 

Golden Holdings, Inc. 

77 Golden Gaming, LLC 

Golden Route Operations-Montana LLC

Big Sky Gaming Management, LLC

Golden Route Operations-Illinois LLC 

Golden Route Operations-Pennsylvania LLC

Sartini Synergy Online, LLC

Golden Gaming, LLC

Golden Aviation, LLC

Golden Pahrump Nugget, LLC

Golden Pahrump Town, LLC

Golden Pahrump Lakeside, LLC

Golden Route Operations LLC

Golden Tavern Group, LLC

Sartini Gaming, LLC

Market Gaming, LLC

Cardivan, LLC

Corral Country Coin, LLC

Golden - PT’s Pub Stewart-Nellis 2, LLC

Golden - PT’s Pub East Sahara 3, LLC

Golden - PT’s Pub Cheyenne-Nellis 5, LLC

Golden - PT’s Pub Summerlin 6, LLC

Golden - PT’s Pub Vegas Valley 7, LLC

Golden - PT’s Pub West Sahara 8, LLC

Golden - PT’s Pub Spring Mountain 9, LLC

Golden - PT’s Pub Flamingo 10, LLC

Golden - PT’s Pub Rainbow 11, LLC

Golden - PT’s Pub Durango 12, LLC

Golden - PT’s Pub Warm Springs 13, LLC

Golden - PT’s Pub Twain 14, LLC

Golden - PT’s Pub Tropicana 15, LLC

Golden - PT’s Pub Winterwood 16, LLC

Golden - PT’s Pub Sunset-Pecos 17, LLC

Golden - PT’s Pub MLK 18, LLC

Golden - PT’s Pub Tunes 19, LLC

Golden - PT’s Pub Decatur-Hacienda 20, LLC

Golden - PT’s Pub Decatur-Sobb 21, LLC

Golden - PT’s Pub Silverado-Maryland 22, LLC

Golden - PT’s Pub Silverado-Bermuda 23, LLC

Golden - PT’s Pub Sunrise 24, LLC

 

 

 

Golden - PT’s Pub Hualapai 25, LLC

Golden – PT’s Pub Big Game 26, LLC

Golden – PT’s Pub Cantina 27, LLC

Golden – PT’s Pub Fort Apache 29, LLC

Golden-PT’s Pub Ann 30, LLC

Golden - PT’s Pub Russell 31, LLC

Golden-PT’s Pub Centennial 32, LLC

Golden - PT’s Pub Horizon 33, LLC

Golden - PT’s Pub St. Rose 35, LLC

Golden - PT’s Pub Eastern 36, LLC

Golden - PT’s Pub Racetrack 37, LLC

Golden - PT’s Pub Anthem 38, LLC

Golden - PT’s Pub Sunset-Buffalo 39, LLC

Golden-PT’s Pub Triple Bar 40, LLC

Golden-PT’s Pub Oceans 41, LLC

Golden-PT’s Pub Desert Inn 42, LLC

Golden - PT’s Pub Spring Valley 44, LLC

Golden-O’Aces Bar Rainbow 46, LLC

Golden-O’Aces Bar Post 47, LLC

Golden - PT’s Pub Foothills 48, LLC

Golden-PT’s Pub Fred’s 49, LLC

Golden-PT’s Pub Crossroads TC 50, LLC

Golden-PT’s Pub Whitney Ranch 51, LLC

Golden-PT’s Pub Black Mountain 52, LLC

Golden-PT’s Pub Molly Malone’s 53 LLC

Golden-PT’s Pub Kavanaugh’s 54 LLC

Golden-PT’s Pub Sean Patrick’s 55 LLC

Golden-PT’s Pub Morrissey’s 56 LLC

Golden-PT’s Pub GB’s 57 LLC

Golden-PT’s Pub Owl 58 LLC

Golden-PT’s Pub Fireside 59 LLC

Golden-PT’s Pub Mountainside 60 LLC

Golden-PT’s Pub Oyster 61 LLC

Golden-PT’s Pub Beano’s 62 LLC

Golden-PT’s Pub Brew 63 LLC

Golden-PT’s Pub Ranch 64 LLC

Golden-PT’s BWS 65 LLC

Golden-PT’s SRD 66 LLC

Golden-PT’s Oso Blanca 67 LLC

Golden-PT’s El Capitan 68 LLC

Golden-PT’s West Martin 69 LLC

Golden-PT’s Huntington Cove 70 LLC

Golden-PT’s GVHR 71 L.L.C.

Golden-PT’s Peccole Sahara 72 LLC

Golden-PT’s Decatur 73 LLC

Golden-PT’s Buffalo-Blue Diamond 74 LLC

Golden-PT’s LV Cactus 75 LLC

Golden-PT’s Maule 76 LLC

Golden-Sierra Gold Double R 1, LLC

Golden-Sierra Junction Double R 2, LLC

Sierra Gold Jones 3, LLC

[Signature Page to Indenture]

 

Sierra Gold Buffalo 4, LLC

Sierra Gold Stephanie 5, LLC

Sierra Gold Aliante 6, LLC

Sierra Gold Flamingo 7 LLC

Golden RR Eastern 3, LLC

Bonnie’s 1 LLC

Lakes Game Development, LLC

Lakes Gaming and Resorts, LLC

Lakes Jamul, Inc.

Lakes KAR Shingle Springs, L.L.C.

Lakes Kean Argovitz Resorts-California, L.L.C.

Lakes Nipmuc, LLC

Lakes Pawnee Consulting, LLC

Lakes Shingle Springs, Inc.

Lakes Maryland Development, LLC

Evitts Resort, LLC

Golden Casinos Nevada LLC (f/k/a American Casino & Entertainment Properties LLC)

ACEP Advertising Agency, LLC

Stratosphere Leasing, LLC

ACEP Interactive, LLC

Stratosphere Gaming LLC

Aquarius Gaming LLC

Arizona Charlie’s, LLC

Fresca, LLC

Stratosphere Entertainment L.L.C.

W2007 Stratosphere Land Propco, LLC

cOLORADO BELLE GAMING, LLC

EDGEWATER GAMING, LLC

GOLDEN PT’S ANN 77 LLC

GOLDEN-PT’S LINDELL-BLUE DIAMOND 78 LLC

GOLDEN-PT’S WARM SPRINGS 79 LLC

SIERRA GOLD EASTERN 8 LLC

 

	
By:
	
 
	
/s/ Sean T. Higgins

	
 
	
 
	
Name: Sean T. Higgins

	
 
	
 
	
Title:  Chief Legal Officer and Executive Vice President of Development, Compliance and Government Affairs of Golden Entertainment, Inc., in such capacity acting as agent for each of the foregoing entities

 

[Signature Page to Indenture]

 

 

	
WILMINGTON TRUST, NATIONAL ASSOCIATION,

	
as Trustee

	
By:
	
 
	
/s/ Hallie E. Field

	
 
	
 
	
Name: Hallie E. Field

	
 
	
 
	
Title:   Vice President

 

 

 

[Signature Page to Indenture]

 

Face of NoteEXHIBIT A

 

			
	
 
	
 
	
CUSIP:1

	
 
	
 
	
ISIN:  

7.625% Senior Notes due 2026

			
	
No.         
	
 
	
$               

 

GOLDEN ENTERTAINMENT, INC.

promises to pay to [CEDE & CO.] or registered assigns, 

the principal sum of                                                                                                                     DOLLARS* on April 15, 2026.

Interest Payment Dates:  April 15 and October 15

Record Dates:  April 1 and October 1

Dated:  April 15, 2019

	
	 

	
1 
	
 To be added.

A-1

 

 

	
GOLDEN ENTERTAINMENT, INC.

	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

 

A-2

 

 

This is one of the Notes referred to
in the within-mentioned Indenture:

WILMINGTON TRUST, NATIONAL ASSOCIATION
  as Trustee

By:                                    Dated:  April 15, 2019
Authorized Signatory

 

A-3

 

 

Back of Note

7.625% Senior Notes due 2026

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

[Insert the Private Placement Legend, if applicable pursuant to the provisions of the Indenture]

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

(1)Interest.  Golden Entertainment, Inc., a Minnesota corporation (the “Issuer”), promises to pay or cause to be paid interest on the principal amount of this Note at 7.625% per annum from April 15, 2019 until maturity.  The Issuer will pay interest, if any, semi-annually in arrears on April 15 and October 15 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 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 October 15, 2019.  The Issuer will pay interest (including post-petition interest in any proceeding under the Bankruptcy Code) on overdue principal at a rate that is 1% per annum higher than the then applicable interest rate on the Notes to the extent lawful; it will pay interest (including post-petition interest in any proceeding under the Bankruptcy Code) on overdue installments of interest (without regard to any applicable grace period), at the same rate to the extent lawful.  

Interest will be computed on the basis of a 360-day year comprised of twelve 30-day months.

(2)Method of Payment.  The Issuer will 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 1 or October 1 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, if any, and interest at the office or agency of the Paying Agent and Registrar, or, at the option of the Issuer, payment of interest may be made by check mailed to the Holders at their addresses set forth in the register of Holders; provided that payment by wire transfer of immediately available funds will be required with respect to principal of, premium on, if any, and interest on, all Global Notes and all other Notes the Holders of which will have provided wire transfer instructions to the Issuer 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, Wilmington Trust, National Association, the Trustee under the Indenture, will act as Paying Agent and Registrar.  The Issuer may change the Paying Agent or Registrar without prior notice to the Holders of the Notes.  The Issuer or any of its Subsidiaries may act as Paying Agent or Registrar.

(4)Indenture.  The Issuer issued the Notes under an Indenture dated as of April 15, 2019 (the “Indenture”) among the Issuer, the guarantors party thereto, and the Trustee.  The terms of the Notes include those stated in the Indenture.  The Notes are subject to all such terms, and Holders are referred to the Indenture for a statement of such terms.  The Notes are unsecured obligations of the Issuer.  To the extent any provision of this Note conflicts with the express 

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provisions of the Indenture, the provisions of the Indenture shall govern and be controlling.  The Indenture does not limit the aggregate principal amount of Notes that may be issued thereunder.  The Issuer shall be entitled to issue Additional Notes pursuant to Section 2.01 and Section 4.09 of the Indenture.  The Notes and any Additional Notes issued under the Indenture shall be treated as a single class of securities under the Indenture.

(5)Optional Redemption.

(a)At any time prior to April 15, 2022, the Issuer may on any one or more occasions redeem up to 40% of the aggregate principal amount of Notes issued under the Indenture, upon not less than 15 nor more than 60 days’ prior written notice to the Holders and the Trustee, at a redemption price equal to 107.625% of the principal amount of the Notes redeemed, plus accrued and unpaid interest, if any, to, but not including, the date of redemption (subject to the rights of Holders of Notes on the relevant record date to receive interest on the relevant interest payment date) with the net cash proceeds of an Equity Offering; provided that:  

(1)at least 50% of the aggregate principal amount of Notes originally issued under the Indenture (excluding Notes held by the Issuer and its Subsidiaries) remains outstanding immediately after the occurrence of such redemption, unless all such Notes are redeemed substantially concurrently with the redemption of Notes pursuant to this paragraph; and 

(2)the redemption occurs prior to 180 days after the date of the closing of such Equity Offering.

(b)At any time prior to April 15, 2022, the Issuer, at its option, may on one or more occasions redeem all or a part of the Notes, upon not less than 15 nor more than 60 days’ prior written notice to the Holders and the Trustee, at a redemption price equal to 100% of the principal amount of the Notes redeemed, plus the Applicable Premium as of, and accrued and unpaid interest, if any, to, but not including, the date of redemption, subject to the rights of Holders on the relevant record date to receive interest due on the relevant payment date.

(c)Except pursuant to the two preceding paragraphs, the Notes will not be redeemable at the Issuer’s option prior to April 15, 2022.

(d)On or after April 15, 2022, the Issuer may on any one or more occasions redeem all or a part of the Notes upon not less than 15 nor more than 60 days’ prior written notice to the Holders and the Trustee, at the redemption prices (expressed as percentages of principal amount) set forth below, plus accrued and unpaid interest, if any, on the Notes redeemed to, but not including, the applicable date of redemption, if redeemed during the 12-month period beginning on April 15 of the years indicated below (subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date):

	
Year
	
Percentage

	
2022
	
103.813%

	
2023
	
101.906%

	
2024 and thereafter
	
100.000%

 

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Unless the Issuer defaults in the payment of the redemption price, interest will cease to accrue on the Notes or portions thereof called for redemption on the applicable redemption date.

(6)GAMING REDEMPTION.  Each holder, by accepting a Note, shall be deemed to have agreed that, if any Gaming Authority requires that a person who is a holder or the beneficial owner of Notes be registered, licensed, qualified or found suitable under applicable Gaming Laws, such Holder or beneficial owner, as the case may be, shall apply for a license, qualification or a finding of suitability in accordance with such Gaming Laws and shall cooperate with the requests of any Gaming Authority for information, documentation and/or testimony.  If such Person (a) fails to apply for a license, qualification or a finding of suitability or (b) is notified by a Gaming Authority that it will not be licensed, qualified or found suitable, then the Issuer shall have the right, at its option:

(a)to require such Person to dispose of its Notes or beneficial interest therein within 30 days of receipt of notice of the Issuer’s election or such earlier date as may be requested or prescribed by such Gaming Authority; or

(b)to redeem such Notes, upon not less than 30 days’ prior written notice to the Holders and the Trustee (or such earlier date as may be requested or prescribed by such Gaming Authority), at a redemption price equal to either;

(1)the lesser of:

(A)the Person’s cost for such Notes, plus accrued and unpaid interest, if any, to the earlier of the date of redemption or the date of the finding of unsuitability or failure to comply; and

(B)100% of the principal amount thereof, plus accrued and unpaid interest, if any, to the earlier of the date of redemption or the date of the finding of unsuitability, denial of a license as qualification, or other failure to comply; or

(2)such other amount as may be required by applicable law or order of the Gaming Authority.  

(b)the Issuer shall notify the Trustee in writing of any such disqualified holder status or redemption as soon as practicable.  Neither the Issuer nor the Trustee shall be responsible for any costs or expenses any Holder or beneficial owner may incur in connection with its registration, application for a license, qualification or a finding of suitability, or any renewal or continuation of the foregoing or compliance with any other requirement of a Gaming Authority.  Those costs and expenses will be the obligations of the Holder or beneficial owner, as applicable.  In addition, any holder or beneficial owner, as applicable, required to be licensed, qualified or found suitable under applicable Gaming Laws must pay all investigative fees and costs of any Gaming Authority in connection with such license, qualification, finding of suitability or application therefor.

(7)Mandatory Redemption.  The Issuer is not required to make mandatory redemption (except as set forth in paragraph (6) hereof) or sinking fund payments with respect to the Notes.

(8)Repurchase at the Option of Holder.

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(A)Upon the occurrence of (i) a Change of Control (if, at the Change of Control Time, the Notes do not have Investment Grade Status) or (ii) a Change of Control Triggering Event (if, at the Change of Control Time, the Notes have Investment Grade Status), the Issuer will make an offer (a “Change of Control Offer”) to each Holder to repurchase all or any part (equal to $2,000 or an integral multiple of $1,000 in excess thereof) of that Holder’s Notes at a purchase price in cash equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased to, but not including, the date of purchase, subject to the rights of Holders of Notes on the relevant record date to receive interest due on the relevant interest payment date (the “Change of Control Payment”).  Within 10 Business Days following any Change of Control, the Issuer will mail a notice to each Holder (with copies to the Trustee and paying agent) (or send electronically in accordance with the applicable procedures of the Depositary in the case of Notes in global form) describing the transaction or transactions that constitute the Change of Control Offer as required by the Indenture.

(B)If the Issuer or a Restricted Subsidiary of the Issuer consummates any Asset Sales, within 20 Business Days (or earlier at the Issuer’s option) after the aggregate amount of Excess Proceeds exceeds $50.0 million, the Issuer will make an offer (an “Asset Sale Offer”) to all holders of Notes (with a copy to the Trustee) and all holders of other Pari Passu Debt containing provisions similar to those set forth in the Indenture with respect to offers to purchase, prepay or redeem with the proceeds of sales of assets to purchase, prepay or redeem the maximum principal amount of Notes and such other Pari Passu Debt (plus all accrued interest on the Indebtedness and the amount of all fees and expenses, including premiums, incurred in connection therewith) that may be purchased, prepaid or redeemed out of the Excess Proceeds.  The offer price in any Asset Sale Offer will be equal to 100% of the principal amount, plus accrued and unpaid interest, if any, to, but not including, the date of purchase, prepayment or redemption, subject to the rights of holders of Notes on the relevant record date to receive interest due on the relevant interest payment date, and will be payable in cash.  The Issuer may satisfy the foregoing obligation with respect to Net Proceeds from an Asset Sale by making an Asset Sale Offer in advance of being required to do so by the Indenture (an “Advance Offer”) with respect to all or part of the available Net Proceeds (the “Advance Portion”).  If any Excess Proceeds remain after consummation of an Asset Sale Offer, the Issuer may use those Excess Proceeds for any purpose not otherwise prohibited by the Indenture.  If the aggregate principal amount of Notes and other Pari Passu Debt tendered into (or required to be prepaid or redeemed in connection with) such Asset Sale Offer exceeds the amount of Excess Proceeds, the Issuer will select the Notes and the Pari Passu Debt to be purchased on a pro rata basis or by lot (and, in the case of Notes in global form, in accordance with the applicable procedures of the Depositary), based on the amounts tendered or required to be prepaid or redeemed (with such adjustments as may be deemed appropriate by the Issuer so that only Notes in minimum denominations of $2,000, or an integral multiple of $1,000 in excess thereof, will be left outstanding).  Upon completion of each Asset Sale Offer, the amount of Excess Proceeds will be reset at zero (regardless of whether there are any remaining Excess Proceeds upon such completion), and in the case of an Advance Offer, the Advance Portion shall be excluded in subsequent calculation of Excess Proceeds.  Holders of Notes that are the subject of an offer to purchase will receive an Asset Sale Offer from the Issuer prior to any related purchase date and may elect to have such Notes purchased by completing the form entitled “Option of Holder to Elect Purchase” attached to the Notes.

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(9)Notice of Redemption.  At least 15 days but not more than 60 days before a redemption date, the Issuer will mail or cause to be mailed, by first class mail (or send such notices electronically in accordance with the Applicable Procedures in the case of Notes in global form), a notice of redemption to each Holder whose Notes are to be redeemed at its registered address (with a copy to the Trustee), 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 the Indenture pursuant to Articles 8 or 11 thereof.  Notes and portions of Notes selected will be in amounts of $2,000 or whole multiples of $1,000 in excess thereof; except that if all of the Notes of a Holder are to be redeemed or purchased, the entire outstanding amount of Notes held by such Holder shall be redeemed or purchased

(10)Denominations, Transfer, Exchange.  The Notes are in registered form in minimum denominations of $2,000 and integral multiples of $1,000 in excess thereof.  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 Issuer may require a Holder to pay any taxes and fees required by law or permitted by the Indenture.  The Issuer 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 Issuer 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 next succeeding Interest Payment Date.

(11)Persons Deemed Owners.  The registered Holder of a Note may be treated as the owner of it for all purposes.  Only registered Holders have rights under the Indenture.  

(12)Amendment, Supplement and Waiver.  Subject to certain exceptions, the Indenture, the Notes or the Note Guarantees may be amended or supplemented with the consent of the Holders of at least a majority in aggregate principal amount of the then-outstanding Notes including Additional Notes, if any, voting as a single class, and any existing Default or Event of Default or compliance with any provision of the Indenture or the Notes or the Note Guarantees may be waived with the consent of the Holders of a majority in aggregate principal amount of the then-outstanding Notes including Additional Notes, if any, voting as a single class.  Without the consent of any Holder of Notes, the Indenture, the Notes or the Note Guarantees may be amended or supplemented to cure any ambiguity, defect, omission, mistake or inconsistency, to provide for uncertificated Notes in addition to or in place of certificated Notes, to provide for the assumption of the Issuer’s or a Guarantor’s obligations to the Holders of the Notes and Note Guarantees by a successor to such Issuer or such Guarantor pursuant to Article 5 or Article 10 of the Indenture to any change that would provide any additional rights or benefits to the holders of any Notes or that does not adversely affect the legal rights under the indenture of any holder of Notes, including to comply with requirements of the SEC or any applicable securities depository in order to maintain the transferability of the Notes pursuant to Rule 144A under the Securities Act or Regulation S under the Securities Act, to make any change that would provide any additional rights or benefits to the Holders of the Notes, and in each case, the release, suspension or termination thereof, or that does not adversely affect the legal rights hereunder of any such Holder, to conform the text of the Indenture, the Notes or the Note Guarantees to any provision of the “Description of the notes” section of the Offering Memorandum, to the extent that such provision in that “Description of the notes” was intended to be a verbatim recitation of a provision of the Indenture, the Notes or the Note Guarantees, to release the Note Guarantee of a Guarantor in accordance with the terms of the Indenture, to allow any Guarantor to execute a supplemental indenture and/or a Note Guarantee with respect to the Notes, to provide for the issuance of Additional Notes in accordance with the limitations set forth in the Indenture as of the Issue Date, to comply with requirements of the SEC 

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in order to effect or maintain the qualification of the Indenture under the TIA, if then applicable, to comply with requirements of applicable Gaming Laws, to provide for requirements imposed by applicable Gaming Authorities, to provide for the acceptance or appointment of a successor trustee, or to amend the provisions of the Indenture relating to the transfer and legending of Notes as permitted by the indenture, including to facilitate the issuance and administration of the Notes.

(13)Defaults and Remedies.  Events of Default include:  (i) default for 30 days in the payment when due of interest on the Notes; (ii) default in the payment when due (at maturity, upon redemption or otherwise) of the principal of, or premium, if any, on the Notes; (iii) failure by the Issuer or any of its Restricted Subsidiaries to comply with the provisions of Section 5.01 of the Indenture; (iv) subject to certain exceptions, failure by the Issuer or any of its Restricted Subsidiaries for 60 days after notice to the Issuer from the Trustee or the Holders of at least 30% in aggregate principal amount of the Notes then outstanding (with a copy to the Trustee if given by the Holders) voting as a single class to comply with any of the other agreements in the Indenture; (v) 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 the Issuer or any of its Restricted Subsidiaries (or the payment of which is guaranteed by the Issuer or any of its Restricted Subsidiaries), whether such Indebtedness or Guarantee now exists, or is created after the Issue Date, if that default (a) is caused by a failure to pay principal of, premium on, if any, or interest on, if any, 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 $25.0 million or more; provided, however, that if, prior to any acceleration of the Notes, (i) any such Payment Default is cured or waived, (ii) any such acceleration is rescinded, or (iii) such Indebtedness is repaid during the 15 business day period commencing upon the end of any applicable grace period for such Payment Default or the occurrence of such acceleration, as the case may be, any Default or Event of Default (but not any acceleration of the Notes) caused by such Payment Default or acceleration shall be automatically rescinded, so long as such rescission does not conflict with any judgment, decree or applicable law; (vi) failure by the Issuer or any of its Restricted Subsidiaries to pay final non-appealable judgments entered by a court or courts of competent jurisdiction in an uninsured aggregate amount in excess of $25.0 million, which judgments are not paid, waived, satisfied, discharged or stayed, for a period of 60 days; (vii) except as permitted by the Indenture, any Note Guarantee is held in any judicial proceeding to be unenforceable or invalid or ceases for any reason to be in full force and effect, or any Guarantor, or any Person acting on behalf of any Guarantor, denies or disaffirms its obligations under its Note Guarantee; and (viii) any Insolvency or Liquidation Proceeding with respect to the Issuer or any of its Restricted Subsidiaries that is a Significant Subsidiary or any group of its Restricted Subsidiaries that, taken together, would constitute a Significant Subsidiary.

In the case of an Event of Default arising from certain events of bankruptcy or insolvency with respect to the Issuer, any Restricted Subsidiary of the Issuer that is a Significant Subsidiary or any group of Restricted Subsidiaries of the Issuer that, taken together, would constitute a Significant Subsidiary, all outstanding Notes will 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 30% in aggregate principal amount of the then-outstanding Notes by notice to the Issuer (with a copy to the Trustee if given by the Holders) may declare all the Notes to be due and payable immediately.  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 time, method and place of conducting any proceeding 

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for exercising any remedy available to the Trustee or exercising any trust or power conferred on it.  The Trustee may withhold from Holders of the Notes notice of any continuing Default or Event of Default (except a Default or Event of Default relating to the payment of principal, premium, if any, or interest, if any) if it determines that withholding notice is in their interest.  The Holders of a majority in aggregate principal amount of the then-outstanding Notes by notice to the Trustee may, on behalf of all the Holders, rescind an acceleration or waive an existing Default or Event of Default and its respective consequences under the Indenture except a continuing Default or Event of Default in the payment of principal of, premium on, if any, or interest, if any, on, the Notes (including in connection with an offer to purchase).  The Issuer is required to deliver to the Trustee annually a statement regarding compliance with the Indenture, and the Issuer 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.

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

(15)No Recourse Against Others.  No director, partner, member, officer, employee, incorporator or stockholder of the Issuer or any Guarantor, as such, will have any liability for any obligations of the Issuer or the Guarantors under the Notes, the Indenture, the Note Guarantees, 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.  The waiver may not be effective to waive liabilities under the federal securities laws.

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

(17)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).

(18)CUSIP and isin Numbers.  Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification Procedures, the Issuer 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.

(19)GOVERNING LAW.  THE INTERNAL LAW OF THE STATE OF NEW YORK WILL GOVERN AND BE USED TO CONSTRUE THE INDENTURE, THIS NOTE AND THE NOTE GUARANTEES 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 Issuer will furnish to any Holder upon written request and without charge a copy of the Indenture.  Requests may be made to:

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Golden Entertainment, Inc.
6595 S Jones Boulevard
Las Vegas, Nevada 89118
Facsimile:  (702) 922-3667
Attention:  Sean T. Higgins

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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 Issuer.  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).

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Option of Holder to Elect Purchase

 

If you want to elect to have this Note purchased by the Issuer pursuant to Section 4.10 or 4.15 of the Indenture, check the appropriate box below:

			
	
ØSection 4.10
	
 
	
ØSection 4.15

 

If you want to elect to have only part of the Note purchased by the Issuer pursuant to Section 4.10 or Section 4.15 of the Indenture, state the amount you elect to have purchased:

$_______________

Date:                    

					
	
Your Signature:
	
 
	
 

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

	
Tax Identification No.:
	
 

 

 

Signature Guarantee*:  _________________________

 

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

 

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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:

	
Date of Exchange
	
 
	
Amount of

decrease in

Principal Amount

at maturity of

this Global Note
	
 
	
Amount of

increase in

Principal Amount

at maturity of

this Global Note
	
 
	
Principal Amount

at maturity of this

Global Note

following such

decrease

(or increase)
	
 
	
Signature of

authorized officer

of Trustee or

Custodian

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

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EXHIBIT B

FORM OF CERTIFICATE OF TRANSFER

Golden Entertainment, Inc.
6595 S Jones Boulevard
Las Vegas, Nevada 89118 

Wilmington Trust, National Association

246 Goose Lane, Suite 105

Guilford, Connecticut 06437
Facsimile No.:  (203) 453-1183
Attention:  Golden Entertainment Notes Administrator

Re:  7.625% Senior Notes due 2026

Reference is hereby made to the Indenture, dated as of April 15, 2019 (the “Indenture”), among Golden Entertainment, Inc., as issuer (the “Company”), the guarantors party thereto and Wilmington Trust, National Association, as trustee.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

___________________, (the “Transferor”) owns and proposes to transfer the Note[s] or interest in such Note[s] specified in Annex A hereto, in the principal amount of $___________ in such Note[s] or interests (the “Transfer”), to ___________________________ (the “Transferee”), as further specified in Annex A hereto.  In connection with the Transfer, the Transferor hereby certifies that:

[CHECK ALL THAT APPLY]

1.   ̈   Check if Transferee will take delivery of a beneficial interest in the 144A Global Note or a Restricted Definitive Note pursuant to Rule 144A.  The Transfer is being effected pursuant to and in accordance with Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”), and, accordingly, the Transferor hereby further certifies that the beneficial interest or Definitive Note is being transferred to a Person that the Transferor reasonably believes is purchasing the beneficial interest or Definitive Note for its own account, or for one or more accounts with respect to which such Person exercises sole investment discretion, and such Person and each such account is a “qualified institutional buyer” within the meaning of Rule 144A in a transaction meeting the requirements of Rule 144A, and such Transfer is in compliance with any applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the 144A Global Note and/or the Restricted Definitive Note and in the Indenture and the Securities Act.

2.   ̈   Check if Transferee will take delivery of a beneficial interest in the Regulation S Global Note or a Restricted Definitive Note pursuant to Regulation S.  The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and, accordingly, the Transferor hereby further certifies that (i) the Transfer is not being made to a Person in the United States and (x) at the time the buy order was originated, the Transferee was outside the United States or such Transferor and any Person acting on its behalf reasonably believed and believes that the Transferee was outside the United States or (y) the transaction was executed in, on or through the facilities of a designated offshore securities market and neither such Transferor nor any Person acting on its behalf knows that the transaction was prearranged with a buyer in the United States, (ii) no directed selling efforts have been made in 

B-1

 

 

contravention of the requirements of Rule 903(b) or Rule 904(b) of Regulation S under the Securities Act, (iii) the transaction is not part of a plan or scheme to evade the registration requirements of the Securities Act and (iv) if the proposed transfer is being made prior to the expiration of the Restricted Period, the transfer is not being made to a U.S. Person or for the account or benefit of a U.S. Person (other than an Initial Purchaser).  Upon consummation of the proposed transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will be subject to the restrictions on Transfer enumerated in the Private Placement Legend printed on the Regulation S Global Note and/or the Restricted Definitive Note and in the Indenture and the Securities Act.

3.   ̈   Check and complete if Transferee will take delivery of a beneficial interest in a Restricted Definitive Note pursuant to any provision of the Securities Act other than Rule 144A or Regulation S.  The Transfer is being effected in compliance with the transfer restrictions applicable to beneficial interests in Restricted Global Notes and Restricted Definitive Notes and pursuant to and in accordance with the Securities Act and any applicable blue sky securities laws of any state of the United States, and accordingly the Transferor hereby further certifies that (check one):

(a) ̈   such Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act;

or

(b) ̈   such Transfer is being effected to the Company or a subsidiary thereof;

or

(c) ̈   such Transfer is being effected pursuant to an effective registration statement under the Securities Act and in compliance with the prospectus delivery requirements of the Securities Act;

4.   ̈   Check if Transferee will take delivery of a beneficial interest in an Unrestricted Global Note or of an Unrestricted Definitive Note.

(a)   ̈   Check if Transfer is pursuant to Rule 144.  (i) The Transfer is being effected pursuant to and in accordance with Rule 144 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

(b)   ̈   Check if Transfer is Pursuant to Regulation S.  (i) The Transfer is being effected pursuant to and in accordance with Rule 903 or Rule 904 under the Securities Act and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any state of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will no longer be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes, on Restricted Definitive Notes and in the Indenture.

B-2

 

 

(c)   ̈   Check if Transfer is Pursuant to Other Exemption.  (i) The Transfer is being effected pursuant to and in compliance with an exemption from the registration requirements of the Securities Act other than Rule 144, Rule 903 or Rule 904 and in compliance with the transfer restrictions contained in the Indenture and any applicable blue sky securities laws of any State of the United States and (ii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act.  Upon consummation of the proposed Transfer in accordance with the terms of the Indenture, the transferred beneficial interest or Definitive Note will not be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Global Notes or Restricted Definitive Notes and in the Indenture.

This certificate and the statements contained herein are made for your benefit and the benefit of the Company.

 

			
	
 
	
 

	
 
	
 
	
[Insert Name of Transferor]

	
 
	
 
	
 

	
 
	
By:
	
 

	
Dated:                                 
	
 
	
Name:

	
 
	
 
	
Title:

 

 

 

B-3

 

 

ANNEX A TO CERTIFICATE OF TRANSFER

1.    The Transferor owns and proposes to transfer the following:

[CHECK ONE OF (a) OR (b)]

(a) ̈   a beneficial interest in the:

(i) ̈   144A Global Note (CUSIP _________), or

(ii) ̈   Regulation S Global Note (CUSIP _________), or

 (b)   ̈    a Restricted Definitive Note.

2.    After the Transfer the Transferee will hold:

[CHECK ONE]

(a)   ̈   a beneficial interest in the:

(i) ̈   144A Global Note (CUSIP _________), or

(ii) ̈   Regulation S Global Note (CUSIP _________), or

(iii) ̈   Unrestricted Global Note (CUSIP _________); or

(b)   ̈   a Restricted Definitive Note; or

(c)   ̈   an Unrestricted Definitive Note,

in accordance with the terms of the Indenture.

 

B-4

 

 

FORM OF CERTIFICATE OF EXCHANGE

Golden Entertainment, Inc.

 6595 S Jones Boulevard
Las Vegas, Nevada 89118 

 Wilmington Trust, National Association

246 Goose Lane, Suite 105

Guilford, Connecticut 06437
Facsimile No.:  (203) 453-1183
Attention:  Golden Entertainment Notes Administrator

Re:  7.625% Senior Notes due 2026

(CUSIP:            )

Reference is hereby made to the Indenture, dated as of April 15, 2019 (the “Indenture”), among Golden Entertainment, Inc., Inc.), as issuer (the “Company”), the Guarantors party thereto and Wilmington Trust, National Association, as trustee.  Capitalized terms used but not defined herein shall have the meanings given to them in the Indenture.

__________________________, (the “Owner”) owns and proposes to exchange the Note[s] or interest in such Note[s] specified herein, in the principal amount of $____________ in such Note[s] or interests (the “Exchange”).  In connection with the Exchange, the Owner hereby certifies that:

1.    Exchange of Restricted Definitive Notes or Beneficial Interests in a Restricted Global Note for Unrestricted Definitive Notes or Beneficial Interests in an Unrestricted Global Note

(a)   ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to beneficial interest in an Unrestricted Global Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a beneficial interest in an Unrestricted Global Note in an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Global Notes and pursuant to and in accordance with the Securities Act of 1933, as amended (the “Securities Act”), (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest in an Unrestricted Global Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

(b)   ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to Unrestricted Definitive Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

 

 

 

(c)   ̈ Check if Exchange is from Restricted Definitive Note to beneficial interest in an Unrestricted Global Note.  In connection with the Owner’s Exchange of a Restricted Definitive Note for a beneficial interest in an Unrestricted Global Note, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the beneficial interest is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

(d)   ̈ Check if Exchange is from Restricted Definitive Note to Unrestricted Definitive Note.  In connection with the Owner’s Exchange of a Restricted Definitive Note for an Unrestricted Definitive Note, the Owner hereby certifies (i) the Unrestricted Definitive Note is being acquired for the Owner’s own account without transfer, (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to Restricted Definitive Notes and pursuant to and in accordance with the Securities Act, (iii) the restrictions on transfer contained in the Indenture and the Private Placement Legend are not required in order to maintain compliance with the Securities Act and (iv) the Unrestricted Definitive Note is being acquired in compliance with any applicable blue sky securities laws of any state of the United States.

2.    Exchange of Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes for Restricted Definitive Notes or Beneficial Interests in Restricted Global Notes

(a)   ̈ Check if Exchange is from beneficial interest in a Restricted Global Note to Restricted Definitive Note.  In connection with the Exchange of the Owner’s beneficial interest in a Restricted Global Note for a Restricted Definitive Note with an equal principal amount, the Owner hereby certifies that the Restricted Definitive Note is being acquired for the Owner’s own account without transfer.  Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the Restricted Definitive Note issued will continue to be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the Restricted Definitive Note and in the Indenture and the Securities Act.

(b)   ̈ Check if Exchange is from Restricted Definitive Note to beneficial interest in a Restricted Global Note.  In connection with the Exchange of the Owner’s Restricted Definitive Note for a beneficial interest in the [CHECK ONE]  ̈ 144A Global Note,  ̈ Regulation S Global Note, with an equal principal amount, the Owner hereby certifies (i) the beneficial interest is being acquired for the Owner’s own account without transfer and (ii) such Exchange has been effected in compliance with the transfer restrictions applicable to the Restricted Global Notes and pursuant to and in accordance with the Securities Act, and in compliance with any applicable blue sky securities laws of any state of the United States.  Upon consummation of the proposed Exchange in accordance with the terms of the Indenture, the beneficial interest issued will be subject to the restrictions on transfer enumerated in the Private Placement Legend printed on the relevant Restricted Global Note and in the Indenture and the Securities Act.

This certificate and the statements contained herein are made for your benefit and the benefit of the Company.

 

			
	
 
	
 

	
 
	
 
	
[Insert Name of Transferor]

	
 
	
 
	
 

	
 
	
By:
	
 

	
Dated:                            
	
 
	
Name:

	
 
	
 
	
Title:

 

 

2

 

 

EXHIBIT D

FORM OF NOTATION OF GUARANTEE

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 April 15, 2019 (the “Indenture”), among Golden Entertainment, Inc., as issuer (the “Company”), the Guarantors party thereto and Wilmington Trust, National Association, as Trustee, (a) the due and punctual payment of the principal of, premium on, if any, and interest, if any, on, the Notes, whether at maturity, by acceleration, redemption or otherwise, the due and punctual payment of interest on overdue principal of, premium on, if any, and interest, if any, 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 Note Guarantee 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 Note Guarantee.  

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

 

	
[Name of Guarantor(s)]

	
 
	
 

	
By:
	
 

	
 
	
Name:

	
 
	
Title:

 

 

 

 

 

 

EXHIBIT E

FORM OF SUPPLEMENTAL INDENTURE
TO BE DELIVERED BY SUBSEQUENT GUARANTORS

[__________] Supplemental Indenture (this “Supplemental Indenture”), dated as of ________________, among __________________ (the “Guaranteeing Subsidiary”), a subsidiary of Golden Entertainment, Inc. (or its permitted successor), a Minnesota corporation (the “Company”), the Company, the other Guarantors (as defined in the Indenture referred to herein) and Wilmington Trust, National Association, as trustee under the Indenture referred to below (the “Trustee”).

W I T N E S S E T H

WHEREAS, the Company has heretofore executed and delivered to the Trustee an indenture (the “Indenture”), dated as of April 15, 2019 providing for the issuance of 7.625% Senior Notes due 2026 (the “Notes”);

WHEREAS, the Indenture provides that under certain circumstances the Guaranteeing Subsidiary shall execute and deliver to the Trustee a supplemental indenture pursuant to which the Guaranteeing Subsidiary shall unconditionally guarantee all of the Company’s Obligations under the Notes and the Indenture on the terms and conditions set forth herein (the “Note Guarantee”); and

WHEREAS, pursuant to Section 9.01 of the Indenture, the Trustee is authorized to execute and deliver this Supplemental Indenture without the consent of Holders of the Notes.

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

1.    Capitalized Terms.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

2.    Agreement to Guarantee.  The Guaranteeing Subsidiary hereby agrees to provide an unconditional Guarantee on the terms and subject to the conditions set forth in the Note Guarantee and in the Indenture including but not limited to Article 10 thereof.

3.    No Recourse Against Others.  No director, officer, employee, incorporator or stockholder of the Company or any Guarantor, as such, will have any liability for any obligations of the Company or the Guarantors under the Notes, the Indenture, the Note Guarantees, 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.  The waiver may not be effective to waive liabilities under the federal securities laws.

4.    NEW YORK LAW TO GOVERN.  THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE 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.

E-1

 

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.

The exchange of copies of this Supplemental Indenture and of signature pages by facsimile or PDF transmission shall constitute effective execution and delivery of this Supplemental Indenture as to the parties hereto and may be used in lieu of the original Supplemental Indenture for all purposes.  Signatures of the parties hereto transmitted by facsimile or PDF shall be deemed to be their original signatures for all purposes.

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

7.    The Trustee.  The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Guaranteeing Subsidiary and the Company.

E-2

 

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

Dated:  _______________, 

 

	
[Guaranteeing Subsidiary]

	
 
	
 

	
By:
	
 

	
 
	
Name:

	
 
	
Title:

	
 
	
 

	
 
	
 

	
WILMINGTON TRUST, NATIONAL ASSOCIATION

	
as Trustee

	
 
	
 

	
By:
	
 

	
 
	
Name:

	
 
	
Title:

 

E-3pbyi-ex103_259.htm

 

 

Exhibit 10.3

 

[***] Certain information in this document has been excluded pursuant to Regulation S-K, Item 601(b)(10).  Such excluded information is not material and would likely cause competitive harm to the registrant if publicly disclosed.

 

LICENSE AGREEMENT

THIS LICENSE AGREEMENT (“Agreement”) dated as of March 29th, 2019 (“Effective Date”) is entered into between Puma Biotechnology, Inc., a corporation organized and existing under the laws of Delaware with its principal place of business at 10880 Wilshire Blvd, Los Angeles, CA 90024 (“Licensor”) and Pierre Fabre Medicament SAS, a company duly organized and existing under the laws of France, having offices and principal place of business at 45, Place Abel Gance 92100 Boulogne Billancourt, France (“Licensee”). 

BACKGROUND

A.Licensor owns or controls certain patents, know-how and other intellectual property relating to the product known as Nerlynx® and has obtained marketing approval for such product in the European Union; 

B.Licensee has experience in developing, marketing and distributing pharmaceutical products; and

C.Licensor is willing to grant to Licensee, and Licensee desires to obtain, certain exclusive rights and licenses with respect to the development, manufacture, registration and commercialization of Nerlynx® in certain countries.  

NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Parties hereby agree as follows:

Article I

DEFINITIONS

1.1“Affiliate” shall mean, with respect to a Party, any Person that controls, is controlled by, or is under common control with that Party. For the purpose of this definition, “control” shall refer to: (a) the possession, directly or indirectly, of the power to direct the management or policies of an entity, whether through the ownership of voting securities, by contract or otherwise, or (b) the ownership, directly or indirectly, of fifty percent (50%) or more of the voting securities of such entity.

1.2“Annual Royalty Bearing Net Sales” shall mean the Royalty Bearing Net Sales generated (a) over any given Calendar Year, (b) the period comprised between the First Commercial Sale of the Product and December 31 of the year of the First Commercial Sale, or (c) the period comprised between January 1 and the date of expiration of the Royalty Term or termination of the Agreement, as applicable.

1.3“Background Agreements” means the (i) Pfizer License Agreement and (ii) the License Agreement between The General Hospital Corporation d/b/a Massachusetts General Hospital and Wyeth, an Affiliate of Pfizer Inc., acting through its Wyeth Pharmaceuticals Divisions dated December 21, 2006. 

1.4“Business Days” shall mean any day other than Saturday, Sunday or any other day on which commercial banks in USA or France are authorized or required by law to remain closed.

1.5“Calendar Quarter” shall mean the respective periods of three (3) consecutive months ending on March 31, June 30, September 30, and December 31. 

 

 

1.6“Calendar Year” shall mean any twelve (12) month period commencing on January 1. 

1.7“Clinical Studies” shall mean any human clinical study of the Product, whether interventional or not, including without limitation Post-Approval Marketing Studies and PRAS. 

1.8“Combination Product” shall mean any pharmaceutical preparations, in any dosage strengths, formulations and methods of administration, that include the Compound and at least one (1) Other Active Ingredient, whether co-formulated or co-packaged. 

1.9“Commercialize” shall mean to market, promote, distribute, import, export, offer to sell and/or sell a product and/or conduct related commercialization activities. “Commercialization” and “Commercializing” shall have the correlative meanings.  

1.10“Commercially Reasonable Efforts” shall mean with respect to the Development or Commercialization of the Product, that level of efforts and resources commonly dedicated in the research-based pharmaceutical industry by a company to the development or commercialization, as the case may be, of a product of similar commercial potential at a similar stage in its lifecycle, in each case taking into account issues of safety and efficacy, product profile, the proprietary position, the then current competitive environment for such product and the likely timing of such product's entry into the market, the regulatory environment and status of such product, and other relevant scientific, technical and commercial factors.   

1.11“Compound” shall mean the compound known as “neratinib,” and all stereoisomers, all salts, solvates, hydrates, and polymorphs, as well as solid forms of any of the foregoing.   

1.12“Control” (including any variations such as “Controlled” and “Controlling”), shall mean with respect to any Intellectual Property Rights, material or document, the legal authority or right (whether by ownership, license or otherwise) of a Party to grant a license or a sublicense of or under such Intellectual Property Rights, or to provide or provide access to such material or document, to the other Party without breaching the terms of any agreement with a Third Party.  

1.13“Cover” shall mean with respect to any Patent and activity, that such Patent would be infringed by such activity in the absence of the licenses granted pursuant to this Agreement.   

1.14“CTA” shall mean a Clinical Study application (including any amendments thereto) as provided for in European Community Directive 2001/20/EC and the regulations promulgated thereunder, filed with a Regulatory Authority in the European Union before the commencement of Clinical Studies for the Product, or any comparable filing with any Regulatory Authority in any other jurisdiction within or outside the Licensee Territory (including any Investigational New Drug Application filed with a Regulatory Authority in the United States pursuant to 21 C.F.R. §321).  

1.15“Data” shall mean, subject to Article 4.2, any and all research data, pharmacology data, preclinical data, clinical data, including raw data, as well as marketing, market access, pharmacovigilance, and other data related to the Product, in each case to the extent Controlled by a Party or its Affiliates as of the Effective Date or during the term of this Agreement.

1.16“Data Protection Law” means all applicable Laws, including the Health Insurance Portability and Accountability Act (“HIPAA”), the California Consumer Privacy Act of 2018 (“CCPA”) and any national legislation relating to privacy and data protection, direct marketing or the interception or communication of electronic messages, in each case as amended, consolidated, re-enacted or replaced from time to time, including European Data Protection Laws.

2

 

 

1.17“Data Subject” means a natural person who is identified or identifiable natural person.  An identifiable natural person is one who can be identified, directly or indirectly, in particular by reference to an identifier such as a name, an identification number, location data, an online identifier or to one or more factors specific to the physical, physiological, genetic, mental, economic, cultural or social identity of that natural person. 

1.18“Development” or “Develop” shall mean development activities, including, with respect to drugs, research, preclinical activities, Clinical Studies, test method development and stability testing, assay development and audit development, toxicology, formulation, as the case may be. 

1.19“DMF” shall mean a drug master file and all equivalents in any country or jurisdiction for the Product, and any components of such Product, submitted by a Party and/or its applicable Subcontractor(s) to Regulatory Authorities. For the avoidance of doubt, DMF shall include any active substance master files.

1.20“EC” shall mean the European Commission, or any successor entity thereto performing similar functions.

1.21“EMA” shall mean the European Medicines Agency, or any successor entity thereto performing similar functions.

1.22“Encumbered Territory” shall mean those countries within the Licensor Territory, excluding the Non-Encumbered Territory.

1.23“European Data Protection Laws” means the General Data Protection Regulation 2016/679 (the “GDPR”), the e-Privacy Directive 2002/58/EC, the e-Privacy Regulation 2017/003 (once it takes effect), and any relevant Law, or other binding instrument which implements, replaces, adds to, amends, extends, reconstitutes or consolidates such laws from time to time, in each case as amended, consolidated, re-enacted or replaced from time to time.

1.24“EU Standard Contractual Clauses” means those standard contractual clauses issued by the European Commission that offer sufficient safeguards on data protection for Personal Data to be transferred internationally, which presently consist of two sets of standard contractual clauses for transfers from data controllers in the European Union to controllers established outside the European Union or European Economic Area (Decision 2001/497/EC and Decision 2004/915/EC) and one set of standard contractual clauses for transfers of Personal Data from controllers in the European Union to processors established outside the European Union or European Economic Area (Decision 2010/87/EU), in each case as amended, consolidated, re-enacted or replaced from time to time.

1.25“FDA” shall mean the US Food and Drug Administration, or any successor entity thereto.  

1.26“Field” shall mean all therapeutic and prophylactic indications for human or veterinary use.  

1.27“First Commercial Sale” shall mean the first sale for use or consumption by an end user of the Product following receipt of the first Marketing Approval of such Product in a country in the Licensee Territory.   

1.28“FTE” shall mean a commitment of time and effort to constitute full-time, which shall consist of [***] for a twelve (12) month period, equivalent person (i.e., one fully committed person or multiple partially committed persons aggregating to one (1) full time person), with appropriate Development, regulatory or other relevant capabilities and seniority employed by a Party or its Affiliates 

3

 

 

assigned to directly perform specified activities with respect to the Shared Clinical Trial and/or the Post-Approval Marketing Studies, as applicable, pursuant to this Agreement.   

1.29“FTE Costs” means the product of: (a) that number of FTEs (proportionately, on a per-FTE basis) used by a Party or its Affiliates in directly performing the activities with respect to any Shared Clinical Trial and Post-Approval Marketing Studies, as applicable, multiplied by (b) the applicable FTE Rate.  

1.30“FTE Rate” means, unless otherwise agreed between the Parties, an annual rate per FTE of [***] per year, which may be prorated on a daily or hourly basis as necessary and as may be adjusted from time to time by mutual agreement of the Parties.  This annual FTE Rate is “fully burdened” and will cover employee salaries, benefits, travel (e.g., airfare, mobile allowance, meal expenses, and hotel expenses) and other incidental expenses incurred by such personnel in the ordinary course of employment, and such facilities and equipment and other materials and services including ordinary laboratory and manufacturing consumables procured from distributors of relevant products as they may use.   

1.31“GAAP” shall mean, with respect to a Person, the generally accepted accounting principles in the United States as consistently applied to such Person, including with respect to Licensee, International Financial Reporting Standards.   

1.32“Generic Competitors” shall mean, with respect to the Product being sold in a country, one or more Generic Drugs therefor, where a “Generic Drug” is a generic pharmaceutical product (a) sold under a Marketing Approval granted by a Regulatory Authority to a Third Party (who is not a Sublicensee of Licensee or otherwise has been authorized by Licensee to sell such product), (b) that contains the same Compound as the relevant Product (whether or not in the same formulation or a similar formulation as the Product), and (c) is approved in reliance on a prior Marketing Approval of the Product granted to by the applicable Regulatory Authority, including for the avoidance of doubt the Marketing Approval to be transferred from Licensor to Licensee in accordance with Article 4.6(a).  For purposes of the foregoing, different salts, esters, ethers, isomers, mixtures of isomers, complexes or derivatives of the Compound shall be considered to be the same Compound, unless they differ significantly in properties with regard to safety and/or efficacy from such Compound. 

1.33“Generic Market Share” means, with respect to the Product in a country, the total unit volume of Generic Competitors(s) of such Product sold in such country, as a percentage of the combined unit volume of such Product and such Generic Competitor(s), in the aggregate in such country. Such unit volumes shall be determined based on data provided by a reputable Third Party data source generally accepted in the pharmaceutical industry in the relevant country, such as IQVIA.

1.34“Good Clinical Practice” or “GCP” shall mean the current standards for clinical studies for pharmaceuticals, as set forth in the ICH guidelines and applicable regulations promulgated thereunder, as amended from time to time, and such standards of good clinical practice as are required by the European Union and other organizations and governmental agencies in countries in which the Product is intended to be sold to the extent such standards are not less stringent than United States Good Clinical Practice.

1.35“Good Laboratory Practice” or “GLP” shall mean the current standards for laboratory activities for pharmaceuticals, as set forth in the FDA’s Good Laboratory Practice regulations or the Good Laboratory Practice principles of the Organization for Economic Co-Operation and Development, as amended from time to time, and such standards of good laboratory practice as are required by the European Union and other organizations and governmental agencies in countries in which the Product is intended to be sold, to the extent such standards are not less stringent than United States Good Laboratory Practice.

4

 

 

1.36“Good Manufacturing Practices” or “GMP” shall mean current good manufacturing practices and standards as provided for (and as amended from time to time) in European Community Directive 91/356/EEC (Principles and Guidelines of Good Manufacturing Practice for Medicinal Products), subject to any arrangements, additions, or clarifications agreed in writing from time to time between the Parties. 

1.37“Governmental Authority” means any domestic or foreign entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including any governmental authority, agency, department, board, commission, court, tribunal, judicial body or instrumentality of any union of nations, federation, nation, state, municipality, county, locality or other political subdivision thereof.

1.38“Indication” shall mean an initial, expanded or additional patient population for which use of the Product is indicated, as reflected or to be reflected in the approved label for the Product. 

1.39“Initial Indication” shall mean extended adjuvant treatment of an adult patients with early stage hormone receptor positive HER2-overexpressed/amplified breast cancer and who are less than one year from the completion of prior adjuvant trastuzamab based therapy.

1.40“Inventions” means any and all inventions (whether or not patentable), that are conceived during the term of this Agreement and in the course of activities conducted pursuant to this Agreement by one or more employees, Affiliates, sublicensees (including Sublicensees) or independent contractors of Licensor and/or Licensee.  

1.41“Investigator Sponsored Clinical Study” shall mean a Clinical Study of the Product that is sponsored and conducted by a physician, physician group or other Third Party not acting on behalf of a Party or its Affiliate or Sublicensee and who does not have a license from a Party or its Affiliate or Sublicensee to Commercialize such Product, pursuant to a CTA owned by such Third Party, and with respect to which a Party or its Affiliate or Sublicensee provides clinical supplies of the Product, funding or other support for such Clinical Study.

1.42“Intellectual Property Rights” shall mean all Patents, trade secrets, copyrights, Trademarks, moral rights, Know-How and any and all other intellectual property or proprietary rights now known or hereafter recognized in any jurisdiction. 

1.43“Know-How” shall mean any invention, discovery, Data, information, process, method, technique, material (including any chemical or biological material), technology, result, cell line, compound, probe, sequence or other know-how, whether or not patentable.

1.44“Law” shall mean any applicable national, supranational, federal, state, local or foreign law, statute, ordinance, principle of common law, or any rule, regulation, standard, judgment, order, writ, injunction, decree, arbitration award, agency requirement, license or permit of any Governmental Authority, including any rules, regulations, guidelines, directives or other requirements of Regulatory Authorities, including all GMP, GLP and GCP, and including all laws pertaining to the pharmaceutical industry or the healthcare industry, anti-trust or competition laws and all anti-bribery or anti-corruption laws, as applicable.   

1.45“Licensed Intellectual Property” shall mean the Licensed Patents and the Licensed Technology.

5

 

 

1.46“Licensed Patents” shall mean any and all Patents Controlled by the Licensor or its Affiliates, including the Patents licensed to the Licensor under the Background Agreements, as of the Effective Date or at any time during the term of this Agreement that:

(a)are listed in EXHIBIT 1; or 

(b)but for the license granted under this Agreement, would be infringed by the Development, Manufacture, registration or Commercialization of the Product in the Field in the Licensee Territory, in each case (a) and (b), including all additions, divisions, continuations, continuations-in-part, substitutions, re-issues, re-examinations, registrations, patent term extensions, supplemental protection certificates, inventors’ certificates, substitutions, extensions and renewals of any the Patents listed on EXHIBIT 1 and of the Patents that satisfy the requirements of subsection (b) above.  For the avoidance of doubt, to the extent included in the foregoing, “Licensed Patent” shall:

(i)include any Patent claim that claims the composition of matter of, or any method of making or method of using, a Compound Combination, where a “Compound Combination” is the combination of the Compound together with any one or more Other Active Ingredients as a Combination Product;

(ii)exclude any Patent claim that solely claims any composition of matter of, or method of making or method of using, any Other Active Ingredient or the composition of matter of, or any method of making or method of using, any combination of active ingredients other than a Compound Combination; and

(iii)include any Patent claim that claims, generically, the composition of matter of or the method of making or method of using both the Compound and an Other Active Ingredient.  

1.47“Licensed Technology” shall mean all Know-How or other information that is Controlled by Licensor or its Affiliates, including Know-How licensed to Licensor under the Background Agreements as of the Effective Date, or at any time during the term of this Agreement, that is not generally known and is necessary or reasonably useful for the conduct of the Development, Manufacture, Commercialization and otherwise the exploitation of the Compound and the Product in accordance with this Agreement.

1.48“Licensee Territory” shall mean Austria, Belgium, Bulgaria, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Latvia, Liechtenstein, Lithuania, Luxembourg, Malta, Netherlands, Norway, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden, United Kingdom, Switzerland, Albania, Bosnia-Herzegovina, Croatia, Kosovo, Republic of Macedonia, Montenegro, Serbia, Tunisia, Algeria, Morocco, Western African Countries and any other countries as may be added from time to time pursuant to Article 2.6 or by mutual agreement.  

1.49“Licensor Territory” shall mean all countries of the world other than the Licensee Territory.

1.50“Major Markets” mean [***].   

1.51“Manufacture” shall mean all activities related to the production of the Product and any drug substance produced in bulk form for use as an active pharmaceutical ingredient, drug product, compounded or finished final packaged and labelled form, and in intermediate states, in each case, to the extent used in the Product, and includes without limitation reference standard preparation, purification, 

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formulation, scale-up, packaging, disposition of product, quality assurance oversight, quality control testing (including in-process release and stability testing), storage of product or any component or ingredient thereof and validation activities directly related to all of the foregoing, and data management and recordkeeping related to all of the foregoing.   

1.52“Manufacturing Agreements” shall mean that [***].

1.53“Manufacturing Standards” shall mean all applicable specifications, GMP and any requirements of any Regulatory Authority. 

1.54“Market Access” shall mean any and all processes and activities conducted to establish, seek and maintain national country pricing and reimbursement, including Pricing and Reimbursement Approval, as well as country level, regional and local payor processes and activities to obtain and maintain local and regional patient access for the Product, including price setting, national mandatory rebate negotiations with applicable Governmental Authorities and preparing reimbursement and economic dossiers.

1.55“Marketing Approval” shall mean such approvals, licenses, registrations or authorizations granted, provided or otherwise issued by the applicable Regulatory Authority(ies) in a country, that are necessary to Commercialize the Product in such country. Marketing Approval shall not include Pricing and Reimbursement Approval.

1.56“Marketing Approval Application” shall mean an application requesting Marketing Approval for the Commercialization of the Product for a particular Indication in a particular jurisdiction filed with the relevant Regulatory Authorities in such jurisdiction.

1.57“Materials” shall have the meaning set forth in Article 8.1(a).

1.58“Material Agreements” shall mean the Background Agreements and the Manufacturing Agreements.  

1.59[***]. 

1.60“Net Sales” means the gross amount invoiced by or on behalf of Licensee, its Affiliates and their respective Sublicensees for sales of the Product in the Licensee Territory (other than sales among Licensee, its Affiliates or Sublicensees for subsequent resale in which case the first sale to a Third Party that is not a Sublicensee shall be used for calculation of Net Sales), less the following deductions if and to the extent they are (i) included in the gross invoiced sales price of the Product or otherwise directly incurred by Licensee, its Affiliates and their respective Sublicensees with respect to the sale of the Product, (ii) normal and customary for Licensee, its Affiliates or their respective Sublicensees as applicable, and (iii) not otherwise deducted in computing other amounts hereunder: 

(a)rebates, quantity and cash discounts, and other discounts to customers,

(b)taxes (except income taxes) and tariffs or duties paid, absorbed or allowed which are directly related to the sale or promotion of the Product,

(c)credits, allowances, discounts and rebates to, and chargebacks for, spoiled, damaged, out-dated, rejected or returned Product (including in connection with Product withdrawals, expired Product and Product recalls), 

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(d)actual freight and insurance costs, including without limitation the costs of export licenses, shipping, postage and handling charges, incurred in transporting the Product to customers,

(e)discounts or rebates or other payments required by Law, including any governmental special medical assistance programs.  For clarity, the foregoing shall [***], 

(f)customs duties, surcharges and other governmental charges incurred in connection with the exportation or importation of the Product, and

(g)bad debts actually written off in connection with the Product.

In the case of any sale of the Product which is not invoiced or is delivered before invoice, Net Sales shall be calculated at the time of shipment or when the Product is paid for, if paid for before shipment or invoice.  In the case of any sale or other disposal of the Product for non-cash consideration, Net Sales shall be calculated as the fair market price of the Product in the country of sale or disposal. Notwithstanding the foregoing, provision of the Product for the purpose of conducting pre-clinical or clinical research shall not be deemed to be a sale. For clarity, any consideration received for the Product provided as free samples, as charitable donations, or for compassionate use shall not be included in the calculation of Net Sales.

Net Sales shall be determined in accordance with GAAP.

Notwithstanding the foregoing, in the event the Product is sold in a country in the Licensee Territory as a Combination Product, Net Sales of the Combination Product will be calculated as follows:

(i)If the Compound contained in the Combination Product and Other Active Ingredient(s) contained in the Combination Product each are sold separately in such country, Net Sales will be calculated by multiplying the total Net Sales (as described above) of the Combination Product by the fraction A/(A+B), where A is the average gross selling price in such country of the Compound sold separately in the same formulation and dosage, and B is the sum of the average gross selling prices in such country of such Other Active Ingredient(s) sold separately in the same formulation and dosage, during the applicable Calendar Year.  

(ii)If the Compound contained in the Combination Product is sold independently of the Other Active Ingredient(s) contained in the Combination Product in such country, but the average gross selling price of such Other Active Ingredient(s) in such country cannot be determined, Net Sales will be calculated by multiplying the total Net Sales (as described above) of the Combination Product by the fraction A/C where A is the average gross selling price in such country of such Compound sold independently and C is the average gross selling price in such country of the entire Combination Product, during the applicable Calendar Year.

(iii)If the Other Active Ingredient(s) contained in the Combination Product are sold independently of the Compound contained in the Combination Product in such country, but the average gross selling price of such Compound in such country cannot be determined, Net Sales will be calculated by multiplying the total Net Sales (as described above) of the Combination Product by the fraction (1-(B/C)), where B is the average gross selling price in such country of such Other Active Ingredient(s) and C is the average gross selling price in such country of the entire Combination Product, during the applicable Calendar Year.  

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(iv)If the Compound contained in the Combination Product and Other Active Ingredient(s) contained in the Combination Product are not sold separately in such country, or if they are sold separately but the average gross selling price of neither such Compound nor such Other Active Ingredient(s) can be determined in such country, Net Sales of the Combination Product in such country will be calculated by mutual agreement of the Parties.

1.61“Non-Encumbered Territory” means, with respect to any right granted by Licensor to Licensee hereunder, any country for which Licensor is not prevented, prohibited or inhibited by any Third Party agreement, entered into before or after the Effective Date, from granting that right, provided that the Non-Encumbered Territory shall in any event be deemed to include [***]. 

1.62“Option Territory” shall mean [***].  

1.63“Other Active Ingredient” means any therapeutically active pharmaceutical ingredient other than the Compound. 

1.64“Out-of-Pocket Costs” means reasonable amounts actually paid to Third Party vendors, consultants, suppliers or contractors, for services or materials, as applicable, provided by each such Third Party that is directly related to the Shared Clinical Trial or the Post-Approval Marketing Study, as applicable, to the extent such services or materials apply to the activities contemplated in this Agreement. For clarity, Out-of-Pocket Costs do not include payments for a Party’s internal salaries or benefits for its employees; facilities (including leased facilities); utilities; general office or facility supplies; insurance; information technology, capital expenditures or the like; or items included in the determination of the FTE Rate.

1.65“Party” shall mean Licensor or Licensee, individually; and “Parties” shall mean Licensor and Licensee, collectively.

1.66“Patent(s)” shall mean (a) unexpired patents (including without limitation inventor’s certificates), including without limitation any substitution, extension, registration, confirmation, reissue, re-examination, addition, renewal, supplemental protection certificate, or inventor’s certificate, and (b) pending applications for patents, including without limitation any continuation, divisional, or continuation-in-part thereof, and any provisional or nonprovisional applications, and (c) all foreign or international equivalents of any of the foregoing in any country.

1.67“Person” shall mean an individual, corporation, partnership, limited liability company, trust, business trust, association, joint stock company, joint venture, pool, syndicate, sole proprietorship, unincorporated organization, governmental authority or any other form of entity not specifically listed herein. 

1.68“Personal Data”, “Process”, “Processed” and “Processing” will be construed in accordance with the GDPR.

1.69“Pfizer License Agreement” shall mean the license agreement between Licensor and Pfizer Inc. (“Pfizer”), dated August 18, 2011 as amended by amendment n°1 dated July 18, 2014, pursuant to which, among other rights, Licensor received an exclusive, worldwide license with the right to grant sublicenses to develop and to commercialize the Compound.

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1.70“Post Regulatory Approval Study” (“PRAS”) means any Clinical Study sponsored by a Party, or any Investigator Sponsored Clinical Study (whether conducted as a phase I, II, III or IV clinical trial, as applicable) that is conducted after a Marketing Approval other than with the objective to seek an extension of the indication or label of the Marketing Approval, but excluding Post-Approval Marketing Studies.

1.71“Post-Approval Marketing Study” means any non-clinical study or Clinical Study (other than PRAS) that is conducted as a commitment made to a Regulatory Authority as a condition of, or in connection with obtaining or maintaining, a Marketing Approval.  Currently contemplated Post-Approval Marketing Studies are set forth in EXHIBIT 4.  

1.72“Post-Approval Marketing Study Costs” shall mean FTE Costs and Out-of-Pocket Costs directly related to Post-Approval Marketing Studies conducted in accordance with Article 4.1(b). 

1.73“Pricing and Reimbursement Approval” shall mean, with respect to any country or jurisdiction in the Licensee Territory in which one or more Governmental Authorities determine the pricing at which the Product will be reimbursed by public and/or private payors, the approval, agreement, determination or decision by such applicable Governmental Authority(ies) establishing the pricing and reimbursement status for such Product. 

1.74“Product” shall mean any product containing, as an active ingredient, the Compound.  For the avoidance of doubt, each product containing the Compound irrespective of its dosage, formulation or indication shall be deemed to be the same Product.

1.75“Product Trademarks” shall mean: (a) the product-specific Trademarks owned or Controlled by Licensor and designated by Licensor for use with the Product in the Licensee Territory, as reflected on EXHIBIT 5; and (b) any other product-specific Trademark(s) Controlled by Licensee in connection with the distribution, marketing, promotion and sale of the Product in the Licensee Territory, or accompanying logos, trade dress or indicia of origin. 

1.76“Regulatory Authority” shall means any governmental agency or authority responsible for granting Regulatory Filings for the Product. 

1.77“Regulatory Filing” shall mean, with respect to the Product, all approvals, licenses, registrations, submissions and authorizations made to or received from a Regulatory Authority in a jurisdiction necessary for or in connection with the development, manufacture and/or commercialization of a pharmaceutical product, including any CTAs, Marketing Approval Applications, Marketing Approvals, and Pricing and Reimbursement Approvals.

1.78“Royalty Bearing Net Sales” shall mean the Net Sales generated in any given country of the Licensee Territory during the Royalty Term in such country.  

1.79“Royalty Term” shall mean, on country -by -country basis within the Licensee Territory, the period beginning on the date of the First Commercial Sale of the Product in such country and expiring upon the later of: (a) expiration or abandonment of the last Valid Claim of the Licensed Patents which Covers the Use of the Product Commercialized in such country and (b) the earlier of: (i) the time when Generic Competitors to the Product have achieved [***] percent ([***]%) or more market share in such country based on unit volume, and (ii) [***] years following the date of First Commercial Sale of the Product in such country.  [***] percent ([***]%) or more market share means that the sales of all such Generic Competitors in such country equal or exceed, on a unit volume basis, [***] percent ([***]%) of the total combined unit sales of the Product and all such Generic Competitors in any Calendar Quarter.   

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1.80“Senior Executives” shall mean the Chief Executive Officers of each of Licensee and Licensor.  

1.81“Shared Clinical Trial” shall have the meaning set forth in Article 4.3(c). 

1.82“Shared Clinical Trial Costs” shall mean FTE Costs and Out-of-Pocket Costs directly related to Shared Clinical Trials conducted in accordance with this Agreement. 

1.83“Shared Development Budget” shall have the meaning set forth in Article 4.3(c).

1.84“Subcontractor” shall mean any Third Party to which a Party or its Affiliate may subcontract the performance of any activities undertaken in accordance with this Agreement in accordance with Article 17.9.

1.85“Sublicensee” shall mean a Third Party that has been granted a right to sell, market, distribute and/or promote the Product in the Field and in the Licensee Territory pursuant to Article 2.3; and “Sublicense” shall mean an agreement or arrangement granting any such rights.  As used in this Agreement, “Sublicensee” shall not include a wholesaler, distributor or reseller of such Product, to the extent that Licensee or its Affiliate sells to such Person the Product at only supply prices.

1.86“Supply Agreement” shall have the meaning set forth in Article 8.2.

1.87“Third Party” shall mean any person, corporation, joint venture or other entity, other than Licensor, Licensee and their respective Affiliates.

1.88“Third Party Manufacturer” shall mean one or more Third Party manufacturers engaged by Licensor in connection with the Manufacture of the applicable Materials, including, [***].   

1.89“Trademark” shall mean any registered or unregistered trademark, service mark, trade dress, trade name, logo, insignia, domain name, symbol, design, or combinations thereof 

1.90 “Transferred Data” shall mean any Data transferred, disclosed or provided by a  Party to the other Party pursuant to this Agreement.

1.91 “Transition Plan” shall mean a transition plan established between Licensor and Licensee in order to transition in a smooth and efficient manner the ongoing activities currently handled by Licensor with respect to the Licensee Territory, including but not limited to [***].  The Transition Plan detailing each Party’s responsibility for each activity and timelines is attached hereto as EXHIBIT 2.  In the event of any conflict between the Transition Plan and the terms of this Agreement, the terms of this Agreement shall govern.

1.92“Use” means to Develop, Manufacture, Commercialize, use, sell, have sold, offer for sale, have offered for sale, import, and export.

1.93“Valid Claim” shall mean (i) a claim of an issued and unexpired patent included within the Licensed Patents, which has not been permanently revoked or declared unenforceable or invalid by an unreversed and unappealable or unreversed and unappealed decision of a court or other appropriate body of competent jurisdiction, or (ii) a claim of a pending patent application included within the Licensed Patents which claim was filed in good faith, has not been pending for more than [***] ([***]) years from the priority date, and has not been abandoned or finally disallowed without the possibility of appeal or refiling of such application.

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1.94“Western African Countries” shall mean Burundi, Republic of the Congo (Brazzaville), Benin, Burkina Faso, Cameroon, Chad, Democratic Republic of the Congo, Ivory Coast, Gabon, Guinea, Libya, Madagascar, Mali, Mauritania, Mauritius, Niger, Senegal, Togo, Djibouti and Central African Republic.

Article II

GRANT OF LICENSE

2.1License. Subject to the terms and conditions of this Agreement, Licensor hereby grants to Licensee and its Affiliates an exclusive (even as to Licensor and its Affiliates), royalty bearing license under the Licensed Intellectual Property, with the right to sublicense (subject to Article 2.3) through multiple tiers:

(a)to Develop the Product in the Licensee Territory and any Non-Encumbered Territory for Commercialization of the Product in the Licensee Territory in the Field; and 

(b)to Manufacture, or have Manufactured, Materials in or outside the Licensee Territory solely for Commercialization of the Product in the Licensee Territory in the Field in accordance with this Agreement and the Supply Agreement; and

(c)to seek approval of Regulatory Filings and Commercialize of the Product in the Licensee Territory in the Field.

2.2Pfizer License Agreement.  For clarity, Licensed Intellectual Property includes all Intellectual Property Rights licensed to Licensor under the Pfizer License Agreement, including any rights licensed to Licensor through the Pfizer License Agreement as a result of the sub-license provided for therein to Licensor of Pfizer’s rights under the GHC License Agreement, to the extent claiming or constituting technology or inventions reasonably necessary or useful for the Development, Manufacture or Commercialization of the Product in the Licensee Territory.  [***].  Licensor represents and warrants that the provisions provided under Schedule 2.2 as well as the other provisions included in this Agreement constitute all material obligations resulting from the Pfizer License Agreement which may materially impact Licensee’s rights and obligations with respect to the Product as provided under this Agreement.  For the avoidance of doubt, pursuant to the Pfizer License Agreement, Licensee acknowledges that Licensor will furnish to Pfizer a true and complete copy of this Agreement and any current and future amendments hereto in accordance with Article 9.4(b).  To the extent reasonably requested by Licensor from time-to-time, Licensee will take reasonable steps to support Licensor’s compliance with obligations under the Pfizer License Agreement that have been disclosed to Licensee prior to execution of this Agreement and provided that Licensee shall not be required to incur [***].

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2.3Sublicense.  Licensee may sublicense the rights granted to it by Licensor under this Agreement to any of its Affiliates without notice to Licensor, and to any Third Party with Licensor’s prior written consent, which shall not be unreasonably withheld or delayed, provided that any Third Party Sublicensee shall have the necessary financial, regulatory and technical capacity to carry out the portion of Licensee’s obligations under this Agreement sublicensed to such Third Party, and further provided that if a Sublicense is granted to an Affiliate pursuant to the foregoing and such Affiliate becomes a non-Affiliate during the term of any such Sublicense, Licensee shall provide prompt written notice to Licensor of such change of such Sublicensee’s status to non-Affiliate and such non-Affiliate shall only be permitted to continue performance under the applicable Sublicense if approved in writing by Licensor, such approval not to be unreasonably withheld.  Any and all Sublicenses shall be subject to the following requirements:  

(a)All Sublicenses shall be subject to and consistent with the terms and conditions of this Agreement.  In no event shall any Sublicense relieve Licensee of any of its obligations under this Agreement.

(b)Licensee shall furnish to Licensor a true and complete copy of each Sublicense agreement entered into with a Third Party and each amendment thereto, which Sublicense agreement may be redacted to omit information not directly relevant to the performance of Licensee’s obligations under this Agreement, within [***] ([***]) days after the Sublicense or amendment has been executed.

(c)Any Sublicense of the rights granted to a Sublicensee under this Article 2.3 shall be granted only in connection with a Sublicense of the rights granted to Licensee under Article 2.1.

2.4Retained Rights. 

(a)Licensee acknowledges and agrees that notwithstanding the exclusive rights granted to Licensee, Licensor retains the following rights:

(i)to conduct, as the sponsor, those Ongoing Clinical Studies identified in EXHIBIT 3 and any Post-Approval Marketing Studies described in Article 4.1(b), each in the Licensee Territory; and   

(ii)to Manufacture or have Manufactured, or Develop or have Developed subject to Article 4.3, the Compound or the Product in the Licensee Territory for Commercialization of the Product by or on behalf of Licensor, its Affiliates or licensees in the Licensor Territory, or for Commercialization by or on behalf of Licensee in the Licensee Territory. 

(b)Licensee acknowledges and agrees that Pfizer (i) retains the right for itself and its affiliates to make, have made, use, have used, import and export the Product for all research purposes and (ii) may use for any purpose (other than the Development, Manufacture or Commercialization of the Compound or the Product during the term of this Agreement) the Residuals resulting from Pfizer’s access to or work with the Product related Know-How. As used herein, “Residuals” means information in non-tangible form which may be retained by persons who have had access to the Product or Know-How, including information relating to ideas, concepts, know-how or techniques.  

2.5Transfer of Licensed Technology. 

(a)Initial Transfer.  Licensor or its Affiliates will make available to Licensee all Licensed Technology as Licensee may reasonably request that exists as of the Effective Date in accordance with the Transition Plan, provided, the Data and such other documents set forth under the Transition Plan 

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shall be made available by Licensor to Licensee within the time set forth in the Transition Plan, but in any event no later than [***] ([***]) days from the Effective Date.  Licensor shall implement the Transition Plan, including providing reasonable assistance to Licensee, to ensure an effective transfer of the Licensed Technology.  

(b)Subsequent Transfers.  During the term of the Agreement, Licensor shall promptly deliver any and all Licensed Technology, together with supporting documentation as each may become Controlled by Licensor, and provide reasonable assistance to Licensee which is necessary or reasonably useful for Licensee to Develop, Commercialize the Product in the Field and the Licensee Territory, provided, however that with respect to Licensed Technology that is not feasible  for Licensor to deliver to Licensee in accordance with this Article 2.5(b), the Parties shall cooperate to enable Licensee to access such Licensed Technology in another manner, including by enabling Licensee to visit Licensor’s facilities for such access or engage Licensor to perform analyses on such Licensed Technology on Licensee’s behalf.  

2.6Right of First Negotiation in the Option Territory.  [***].  

2.7Activities Outside the Respective Territory. 

(a)Licensee covenants and agrees that it and its Affiliates shall not, and it shall contractually obligate its licensees, Sublicensees and contractors [***].  

(b)Licensor covenants and agrees that it and its Affiliates shall not, and it shall contractually obligate its licensees, Sublicensees and contractors not to, [***].  

2.8No Other Rights. Except for the rights and licenses expressly granted in this Agreement, each Party retains all rights under its Intellectual Property Rights, and no additional rights shall be deemed granted to the other Party by implication, estoppel or otherwise. 

Article III

GOVERNANCE

3.1Joint Steering Committee.  

(a)Duties. Within [***] ([***]) days following the Effective Date, Licensor and Licensee shall establish a joint steering committee (“Joint Steering Committee” or “JSC”).  The Joint Steering Committee shall perform the functions and assume the responsibilities and have such authority only as set forth in this Agreement.  The Joint Steering Committee shall have the following duties:  

(i)Be responsible, directly or through Working Groups, for the overall coordination, follow-up, and oversight of the Transition Plan, the Ongoing Clinical Studies and the Post-Approval Marketing Studies, including (x) providing general oversight to the conduct of such Clinical Studies, (y) reviewing and approving any Regulatory Filings related to such Clinical Studies, and any amendments to such clinical plans and (z) overseeing data analysis and Clinical Studies completion activities related thereto;

(ii)Review and approve substantive amendments and updates with respect to any Shared Clinical Trial, including to the Shared Development Budget;

(iii)Review proposed study protocols and substantive amendments and updates in connection with Additional Clinical Studies in accordance with Article 4.3(a);  

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(iv)Be informed on a periodic basis of the Investigator Sponsored Clinical Study and PRAS authorized or supported by either Party in the Licensee Territory and the Non-Encumbered Territory, as applicable; 

(v)Provide a forum of exchange and discussion with respect to regulatory and Market Access strategies, marketing and promotional activities, Patent and manufacturing strategies for the Product in the Licensee Territory and the Non-Encumbered Territory, as applicable; and

(vi)Perform such other duties as are specifically assigned to the JSC in accordance with this Agreement.

(b)Membership. The JSC shall each be composed of an equal number of representatives from each of Licensee and Licensor, selected by such Party. Unless the Parties otherwise agree, the exact number of representatives for each of Licensee and Licensor shall be three (3) representatives, each of whom shall be at a level which allows him/her to make decisions on behalf of the Party he/she represent with respect to the relevant matters. Either Party may replace its respective JSC representatives at any time with prior written notice to the other Party; provided that the criteria for composition of the JSC set forth in the preceding sentence continues to be satisfied following any such replacement of a Party’s representative on any such Committee. 

(c)Committee Meetings. The JSC shall meet at least twice each Calendar Year, or more or less often as otherwise agreed to by the Parties, provided that it shall meet within [***] ([***]) days after the formation of the JSC in accordance with Article 3.1(a). JSC meetings may be conducted by telephone, video-conference or in person as determined by its members; provided that the JSC shall hold its first meeting in person at least once each Calendar Year. Unless otherwise agreed by the Parties, all in-person meetings of JSC shall be held on an alternating basis between Licensor’s facilities and Licensee’s facilities. [***]. With the consent of the Parties (not to be withheld unreasonably), other employee representatives of the Parties may attend any JSC meeting as non-voting observers at such Party’s sole cost and expense. 

(d)Decision-Making. Matters for which approval of the JSC is expressly required herein (i.e., pursuant to Articles 3.1(a)(i) and (ii)) shall be decided by unanimous vote, with at least one (1) representative from each Party participating in any vote.  In the event that the JSC fails to reach unanimous agreement with respect to such matter for which approval of the JSC is expressly required herein, then either Party may, by written notice to the other Party, have such matter referred to the Senior Executives, who shall meet promptly and negotiate in good faith pursuant to Article 16.1. If despite such good faith efforts, the Senior Executives are unable to resolve such dispute, then:

(i)if such dispute relates to substantive amendments and updates with respect to a Shared Clinical Trial or Post-Approval Marketing Study, all changes shall require mutual consent of the Parties, provided that no such consent shall be unreasonably withheld or delayed if the change is required to comply with any request of a Regulatory Authority, including the EMA or other Regulatory Authority in the Licensee Territory;   

(ii)if such dispute relates to [***],  Licensor shall be entitled to make the final determination, provided that such determination is not likely to have a material adverse impact [***]; or

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(iii)if such dispute  relates to the [***],  Licensee shall be entitled to make the final determination, provided that such determination does not create a material obligation on [***].

3.2Working Groups. 

(a)Establishment. From time to time, the JSC may establish and delegate duties to sub-committees or teams (each, a “Working Group”) to oversee particular projects or activities within their respective authority. Each Working Group and its activities shall be subject to the oversight, review and approval of, and shall report to the JSC.  A Working Group shall be composed of an equal number of representatives from each of Licensor and Licensee, selected by such Party, and the total number of members of each Working Group will be determined by the JSC. Each Working Group shall meet at such times and in such places as directed by the JSC. In no event shall the authority of any Working Group exceed that specified for the JSC, as set forth in this Article 3. 

(b)Specific Working Groups. The Parties already agree to form the following Working Groups : 

(i)a transition Working Group which will monitor and coordinate the conduct of the Transition Plan, including the transfer of the supply chain in accordance with Article 8.4; 

(ii)a Working Group which will monitor and coordinate Patent strategies and prosecution, defense and enforcement procedures set out in Article 10; 

(iii)a Working Group which will monitor and coordinate Development and regulatory activities in accordance with Article 4; 

(iv)a Working Group which will monitor and coordinate the publication and communication strategy on the Product in accordance with Article 9.5 and which will establish an annual publication plan for submission to the JSC; and

(v)a Manufacturing and supply Working Group which will monitor and coordinate the Manufacture, supply and quality of the applicable Materials supplied to by each Party to the other Party in accordance with the applicable supply agreement and the quality agreement to ensure a continuous and reliable supply on a cost effective basis.  

3.3Alliance Managers.  Within [***] ([***]) days following the Effective Date, each Party shall appoint a representative (“Alliance Manager”) to facilitate communications between the Parties (including, coordinating the exchange of Know-How of each Party as required under this Agreement) and to act as a liaison between the Parties with respect to such other matters as the Parties may mutually agree in order to maximize the efficiency of the collaboration. Each Party may replace its Alliance Manager with an alternative representative at any time with prior written notice to the other Party. Each Party’s Alliance Managers shall be entitled to attend all JSC and Working Group meetings, as applicable, except if the other Party specifically requests the exclusion of Alliance Managers (including its own Alliance Managers) from a particular meeting. Each Alliance Manager may bring any matter to the attention of the JSC where such Alliance Manager reasonably believes that such matter requires attention of the JSC. Each Alliance Manager shall be responsible with creating and maintaining a collaborative work environment within the JSC.  For clarity, an Alliance Manager may also be a member of the JSC and/or one or more Working Groups.

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3.4Scope of Governance. Notwithstanding the creation of the JSC and/or any Working Group, each Party shall retain the rights, powers and discretion granted to it hereunder, and neither JSC nor any Working Group shall be delegated or vested with rights, powers or discretion unless such delegation or vesting is expressly provided herein, or the Parties expressly do so agree in writing. Neither JSC nor any Working Group shall have the power to amend or modify this Agreement, and their decisions shall not be in contravention of any terms and conditions of this Agreement. The Alliance Managers shall not have any rights, powers or discretion except as expressly granted to the Alliance Managers hereunder and in no event shall the Alliance Managers have any power to modify or amend this Agreement. It is understood and agreed that issues to be formally decided by the JSC are only those specific issues that are expressly provided in this Agreement to be decided by the JSC. 

3.5Cost of Governance. The Parties agree that the costs incurred by each Party in connection with its participation at any meetings under this Article 3 shall be borne [***].

Article IV

DEVELOPMENT AND REGULATORY ACTIVITIES

4.1Current Development Status.

(a)Ongoing Clinical Studies.  [***] shall remain responsible for and shall complete [***] all ongoing Clinical Studies as of the Effective Date that are listed in EXHIBIT 3, including all analysis and reports that are reasonably necessary to obtain, extend or update the Marketing Authorization of the Product with the EMA, and shall remain responsible for contracting with and managing any Third Party that may be involved with such Clinical Studies (each, an “Ongoing Clinical Study”). 

(b)Post-Approval Marketing Studies.  In the event one or more Regulatory Authorities in the Licensee Territory, including the EMA, require [***] to conduct one or more Post-Approval Marketing Studies for the Product in the Indication(s) in which [***] acted as the sponsor of an Ongoing Clinical Study, then [***] shall pay for the Post-Approval Marketing Study Costs for such Post-Approval Marketing Study. Without limiting the foregoing, the sponsorship and the responsibility for conducting, as the sponsor, the following Post-Approval Marketing Studies shall be the responsibility of the following Party:

(i)[***]: The Clinical Studies designated as [***] and [***]; and 

(ii)[***]: The Clinical Study designated as [***], provided that if [***] intends to subcontract the performance of [***] in [***], [***] shall consider [***] as a preferred partner to conduct such Clinical Study, and if [***] at its sole discretion selects [***] as such subcontractor, [***] shall be conducted [***]. 

(c)[***] shall reimburse [***] for all Post-Approval Marketing Study Costs incurred by Licensee for the conduct of such Post-Approval Marketing Studies pursuant to Article 4.1(b)(i), [***], provided that in the event that any amounts are incurred in connection with such Post-Approval Marketing Studies in excess of such amount that arise from any circumstances arising beyond [***] reasonable control (including additional Regulatory Authorities’ requirements), the Parties shall discuss in good faith on how to mitigate such excess amount, provided that [***]. 

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4.2Rights of Reference and Access to Data. 

(a)Subject to Article 4.3 below, each Party shall have the right to cross-reference the Regulatory Filings Controlled by the other Party during the term of this Agreement that relates to the Product (including each other’s, and their Affiliate’s or Subcontractor’s DMF), and to access such Regulatory Filings and any Data for the sole purpose of the performance of its obligations and exercise of its rights under this Agreement, including inclusion of such Data in its own Regulatory Filings for the Product; provided, however, that (i) with respect to Data obtained from new Clinical Studies conducted at the other Party’s expense in accordance with Article 4.3, the non-funding Party’s right to cross-reference, or to include such Data in its Regulatory Filings for the Product, shall be subject to compliance with the corresponding reimbursement obligation set forth in that Article, and (ii) the definition of “Data” shall not include the closed portions of any DMF, nor any information contained in any such portions of a DMF and, notwithstanding any other provision of this Agreement, neither Party shall have any obligation to disclose to the other Party, or any of its Affiliates or Sublicensees, the closed portions of such DMFs or any information contained therein, but shall provide to the other Party all necessary or useful Right of Reference to such closed portion. Subject to Article 4.3 below, each Party hereby grants to the other Party, its Affiliates and Sublicensees, a “Right of Reference,” as that term is defined in 21 C.F.R. § 314.3(b) in the United States, or an equivalent right of access/reference in any other country or region, to any Data, including such Party’s or its Affiliate’s clinical dossiers, Controlled by such Party or such Affiliates that relates to the Product for the sole purpose of the performance of its obligations and exercise of its rights under this Agreement, subject to the limitations set forth in this Article 4.2(a).  With respect to any country within the Non-Encumbered Territory, if during the term of this Agreement, one or more of such countries become an Encumbered Territory, Licensor shall structure any agreement with a Third Party that renders such country(ies) to be an Encumbered Territory so that Licensee has continued access and right to any Data generated with respect to the Product in such country(ies) while it was a Non-Encumbered Territory and for which Licensee had a right under this Article 4.2(a) prior to such country(ies) becoming an Encumbered Territory.    

(b)Each Party or its Affiliates shall provide a signed statement to this effect, if requested by the other Party, in accordance with 21 C.F.R. § 314.50(g)(3) or the equivalent as required in any country or region or otherwise provide appropriate notification of such right of the other Party to the applicable Regulatory Authority. Each Party will provide, and cause its Affiliates to provide, cooperation to the other Party to effect the foregoing. 

4.3New Clinical Trials. 

(a)In the event a Party (the “Additional Development Party”) proposes to perform a Clinical Study (other than a PRAS) (any such Clinical Study, an “Additional Clinical Study”) of the Product in the Field as a sponsor, it shall provide the other Party (“non-Additional Development Party”) an opportunity to review a proposed study protocol and related budget to such protocol (together, the “Protocol”) as well as the publication plan in accordance with Article 9.5, if available, through the JSC, provided, however, that with respect to Licensor, this Article 4.3 shall only apply to those Clinical Studies that are being conducted or proposed to be conducted in the Non-Encumbered Territory, unless Licensor, in its sole discretion, offers to Licensee the opportunity to participate in such Clinical Studies.

(b)The non-Additional Development Party shall have [***] ([***]) days upon receipt of the Protocol to elect whether to participate in such Additional Clinical Study.  

(c)In the event the non-Additional Development Party provides a written notice to the Additional Development Party within such [***] ([***])-day period expressing its intent to participate in the Additional Clinical Study by establishing Clinical Study sites for such study within its respective 

18

 

 

territory, then such Additional Clinical Study will be designated as a shared Clinical Study (“Shared Clinical Trial”).  Within [***] ([***]) days after such election by such non-Additional Development Party to participate, the Parties will discuss and agree to a budget related to such Shared Clinical Trial (the “Shared Development Budget”).  Licensee shall bear [***] ([***]) of the costs of the applicable Shared Development Budget and Licensor shall bear [***] ([***]) of the applicable Shared Development Budget.

(d)If the non-Additional Development Party declines to participate in the Additional Clinical Study, either expressly or by failing to provide the written notice within the [***] ([***])-day period as provided under Article 4.3(c), then the Additional Development Party shall be free to conduct such Additional Clinical Study at its sole cost and expense, by itself or with or through a Third Party within its respective territory. 

(e)If upon completion of an Additional Clinical Study by the Additional Development Party, the non-Additional Development Party wishes to use any Data arising out of such Additional Clinical Study in a substantive manner by filing the same with a Regulatory Authority (either directly or by reference) in the non-Additional Development Party’s territory as the basis for obtaining new or expanded Marketing Approval for the Product for the same Indication that was the subject of such Additional Clinical Study, the non-Additional Development Party shall [***].   

(f)Notwithstanding anything to the contrary herein, no payments shall be required to use (i) the safety Data arising out of any Additional Clinical Study, which shall be available to both Parties at all times free of charge in accordance with the Safety Data Exchange Agreement, or (ii) by Licensee of the Data arising out of any Post-Approval Marketing Studies that are described in Article 4.1(b).   

(g)In the event either Party undertakes new Development activities comprising material non-Clinical Studies of the Product, the Parties will apply the sharing and reimbursement principles set forth in Articles 4.3(c) and (e) above should the other Party wish to use such Data and such Data is Controlled by the Party conducting such new Development activities, provided, with respect to such Data Controlled by Licensor, this Article 4.3 shall only apply to those non-Clinical Study Data that are being conducted or proposed to be conducted in the Non-Encumbered Territory, unless Licensor, in its sole discretion, offers to Licensee the opportunity to use such non-Clinical Studies in accordance with this Article 4.3(g).   

(h)For the avoidance of doubt, if Licensee does not elect to use the Data from any new Development activities, such election shall not in and of itself be deemed in breach of its Commercially Reasonable Efforts obligations pursuant to this Agreement.   

(i)Prior to the commencement of each Shared Clinical Trial, the JSC shall define the common database format to be used, the owner of such database, the access of the other Party to the database, the relevant clinical information to be contained within, in a manner designed to address both FDA and EMA requirements, and whether any amendment or addendum to this Agreement is required in accordance with Article 9.26 to ensure the Parties’ compliance with Data Protection Law in relation to any Processing of Personal Data by or on behalf of the Parties as joint controllers in connection with such Shared Clinical Study.

(j)Generally, for purposes of the above, each Party shall calculate and maintain records of any Shared Clinical Trial Costs incurred by such Party and its Affiliates in accordance with procedures to be established by the JSC.  The procedures for reporting of actual results, review and discussion of potential discrepancies, quarterly reconciliation, reasonable cost forecasting, and other finance and accounting matters related to such Shared Clinical Trial Costs will be determined by the JSC.  Such procedures will provide the ability to comply with financial reporting requirements of each Party. 

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4.4Notwithstanding anything to the contrary in this Agreement, neither Party shall initiate after the Effective Date an Additional Clinical Study or a PRAS within the other Party’s territory (i.e., Licensee in the Licensor Territory or Licensor in the Licensee Territory) or authorize or contribute to any Investigator Sponsored Clinical Study within the other Party’s territory, in each case, without the prior written approval of the other Party to be given in its sole discretion.  Licensor represents and warrants that Exhibit 3 contains an exhaustive list of all Ongoing Clinical Studies, Investigator Sponsored Clinical Study or other Clinical Studies that Licensor has initiated as of the Effective Date in the Licensee Territory. 

4.5Development Efforts; Manner of Performance; Reports.   

(a)Development Efforts. Each Party and its Affiliates shall conduct its Development activities for the Product in the Field in good scientific manner and in compliance with applicable Law, including Laws regarding environmental, safety and industrial hygiene, Good Manufacturing Practice, Good Laboratory Practice and Good Clinical Practice, current standards for pharmacovigilance practice, and all applicable requirements relating to the protection of human subjects such as Data Protection Law.  

(b)Day-to-Day Responsibility. Each Party shall be responsible for the day-to-day implementation of the Development activities of the Product in the Field and shall keep the other Party reasonably informed as to the progress of such activities.

(c)Development Reports. At each meeting of the JSC, each Party will report on its Development activities of the Product in the Field that such Party and its Affiliates has performed or caused to be performed since the last meeting of the JSC, and evaluate the work performed with respect to any Ongoing Clinical Studies, and Post-Approval Marketing Studies, and provide such other information as may be reasonably requested by the JSC with respect to such Development activities. 

(d)Compliance Audits. With respect to any facility or site at which a Party, its Affiliates or its Subcontractor conducts Development activities pursuant to this Agreement, the other Party shall have the right, [***], upon reasonable written notice to such Party (and if applicable, such Affiliate or as described below, Subcontractor), and during normal business hours, to inspect such site and facility and any records relating thereto once per year, or more often with cause, to verify such Party’s compliance with the terms of this Agreement relating to all applicable Laws, including Good Manufacturing Practice, Good Laboratory Practices, Good Clinical Practices and current standards for pharmacovigilance practice. Such inspection shall be subject to the confidentiality provisions set forth in Article 9.  With respect to Licensor, prior to initiation of the transfer of Licensed Technology in connection with the Materials to Licensee in accordance with Article 8.4, Licensor shall have the right, [***], upon reasonable written notice to Licensee and/or its Affiliates, as applicable, and during normal business hours, to inspect such site and facility and any records relating thereto to verify Licensee’s and/or its Affiliate’s compliance with all applicable Laws with respect to any facility or site at which Licensee and/or its Affiliates intends to conduct Manufacturing activities pursuant to this Agreement.  Each Party agrees to use commercially reasonable efforts to include in any contract or other written arrangement with its Subcontractors a clause permitting the other Party to exercise its rights under this Article 4.5(d).  In the event a Party is unable to secure such inspection rights from any of its Subcontractors, such Party agrees to secure such rights for itself and, if requested by the other Party, shall exercise such rights, [***], on behalf of the other Party and fully report the results thereof to the other Party.  If Licensee desires to conduct such an audit of Licensor’s manufacturing Subcontractors, the Parties will reasonably cooperate to minimize the number of separate audits being conducted by Licensor of such Subcontractor by, for example, allowing Licensee to participate in an audit being conducted for Licensor or one of its other licensees. 

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(e)Quality Assurance Audits. Licensee’s quality assurance department will be responsible for establishing audit plans for the Development activities assigned to Licensee with respect to any Shared Clinical Trial, and Post-Approval Marketing Studies according to Licensee’s internal SOP. Licensor’s quality assurance department will be responsible for establishing audit plans for the Development activities assigned to Licensor with respect to any Shared Clinical Trial, ongoing Clinical Trials and Post-Approval Marketing Studies according to Licensor’s internal SOP.  The JSC shall form a joint Oversight/Quality Working Group (the “Oversight/Quality Working Group”) and such Oversight/Quality Working Group may review and provide comments on the audit plans established by Licensee’s and Licensor’s quality assurance personnel. Licensee’s and Licensor’s quality assurance personnel will each consider in good faith all such comments submitted by the Oversight/Quality Working Group, but Licensee’s and Licensor’s quality assurance personnel shall each have final decision-making authority with respect to the audit plans it develops.

(f)If Licensor is conducting any activities that could be deemed to fall within the scope of this Article 4.5 with or through its Third Party licensees in the Encumbered Territory, such Third Party licensees and their subcontractors shall not be deemed to be Subcontractors of Licensor, and, except as set forth in Article 4.2, the foregoing provisions of this Article 4.5 shall not apply to any activities conducted by, or Data or other Know-How controlled or owned by, such Third Party licensee unless and until Licensor, in its sole discretion, agrees to extend this Article 4.5 thereto and Licensee agrees in writing to do so.  

4.6Submissions and Marketing Approvals. 

(a)Regulatory Responsibilities. Licensor shall transfer to Licensee or its Affiliates all Regulatory Filings and Marketing Approvals for the Product in the Field in the Licensee Territory existing as of the Effective Date and thereafter during the term of this Agreement, as applicable for Shared Clinical Trials, in accordance with the terms of this Agreement and the Transition Plan, subject to subclause (c) below.  Before the transfer of the applicable Marketing Authorization in the Licensee Territory to Licensee, Licensor shall (i) not take or omit to take any material action or make any material communication with respect to any Regulatory Filings or such Marketing Authorization for the Product in the Licensee Territory without Licensee’s prior written consent and (ii) promptly transmit to Licensee any communication received from or draft of any planned communication or submission to the Regulatory Authorities with respect to any such Marketing Authorization.  

(b)Ownership of Marketing Approvals. Upon completion of the Transition Plan and subject to Article 4.6(a) with respect to Ongoing Clinical Studies and Post-Approval Marketing Studies to be sponsored by Licensor in accordance with Article 4.1(b), Licensee or its  Affiliates (or if required by applicable Law, its Sublicensees) shall own all regulatory submissions, including all applications, for Marketing Approvals for the Product in the Field in the Licensee Territory. 

(c)CTAs and Temporary Use Authorizations. 

(i)Each Party shall own the CTAs of the Clinical Studies for which it is the sponsor.  With respect to any Ongoing Clinical Studies or Post-Approval Marketing Studies to be performed in accordance with Article 4.1(b), the Parties and their Affiliates shall cooperate fully so that the Party which is the sponsor of such Ongoing Clinical Study or Post-Approval Marketing Study, as applicable, in the Licensee Territory, may make the necessary and appropriate Regulatory Filings and submissions and undertaking such regulatory interactions. 

21

 

 

(ii)Licensor shall maintain named patient, temporary use, or similar programs, Regulatory Filings or approvals, for the Product as existing on or prior to the Effective Date in each country of the Licensee Territory and supply all Product requirements thereunder, [***], in consultation with Licensee, provided that no named patient, temporary use, or similar program shall be initiated by Licensor after the transfer of the Marketing Authorization to Licensee.

(d)Regulatory Cooperation. The JSC shall review the overall regulatory strategy and positioning for the Product in the Licensee Territory and the Non-Encumbered Territory.  In connection with such review, each Party shall provide to the JSC such information regarding a proposed filing as either Party may reasonably request.  Each Party shall provide to the JSC, copies of all material submissions it makes to, and all material correspondence it receives from the EMA or the FDA pertaining to the Product, and the other Party may provide comments regarding such documents and correspondence prior to their submission, which comments shall be considered in good faith. 

(e)Regulatory Audits. The Parties shall cooperate in good faith with respect to Regulatory Authority inspections of any site or facility where Clinical Studies, manufacturing or pharmacovigilance activities with respect to the Product are conducted by or on behalf a Party pursuant to this Agreement, whether such site or facility is such Party’s or its Affiliate’s or Subcontractor’s (each an “Audited Site”), subject to terms and conditions of Third Party agreements (provided that each Party shall use reasonable efforts to ensure that Third Party agreements do not prevent the exercise of such rights).  Each Party shall be given a reasonable opportunity (taking into account the timing and notice provided by the applicable Regulatory Authority) to assist in the preparation of the other Party’s Audited Sites for inspection, where appropriate, and to attend any inspection by any Regulatory Authority of the other Party’s Audited Sites, and the summary, or wrap-up, meeting with a Regulatory Authority at the conclusion of such inspection.  If such attendance would result in the disclosure to the other Party of Confidential Information unrelated to the subject matter of this Agreement, the Parties shall enter into a confidentiality agreement covering such unrelated subject matter.  In the event that any Audited Site is found to be non-compliant with one or more Good Laboratory Practice, Good Clinical Practice, Good Manufacturing Practice or current standards for pharmacovigilance practice, the non-compliant Party shall submit to the other Party a proposed recovery plan or Corrective and Preventative Actions (“CAPA”) within a reasonable period after such non-compliant Party, its Affiliate or its Subcontractor receives notification of such non-compliance from the relevant Regulatory Authority and such non-compliant Party shall use commercially reasonable efforts to implement such recovery plan or CAPA promptly after submission.  Each Party shall use commercially reasonable efforts to secure for the other Party the rights set forth in this Article 4.6(e) from its Subcontractors.  In the event a Party is unable to secure such inspection rights from any of its Subcontractors, such Party agrees to secure such rights for itself and, if requested by the other Party, shall exercise such rights, [***], on behalf of the other Party and fully report the results thereof to the other Party.  If Licensee desires to conduct such an audit of Licensor’s manufacturing Subcontractors, the Parties will reasonably cooperate to minimize the number of separate audits being conducted by Licensor of such Subcontractor by, for example, allowing Licensee to participate in an audit being conducted for Licensor or one of its other licensees.

4.7Pricing and Reimbursement Approvals.  As between the Parties, after completion of the transfer of the Marketing Authorization to Licensee in the Licensee Territory in accordance with the Transition Plan, Licensee shall be solely responsible for and have the exclusive right to seek and attempt in accordance with Article 5.1 to obtain Pricing and Reimbursement Approval for the Product in the Field in the Licensee Territory, provided that Licensee shall keep the JSC reasonably informed with regard to any Pricing and Reimbursement Approval proceedings for the Product in the Field in the Licensee Territory.  Prior to the transfer of such Marketing Authorization to Licensee, Licensor shall not submit any application for the Pricing and Reimbursement Approval to a Regulatory Authority or any update thereto, or 

22

 

 

communication with a Regulatory Authority, in each case with respect to the Product in the Licensee Territory, without Licensee’s prior written consent and shall promptly transmit to Licensee any communication received from or draft of any planned communication or submission to the Regulatory Authorities in Licensee Territory with respect to the Product in the Licensee Territory.  As between the Parties, Licensor shall be responsible for and have the exclusive right to seek and attempt to obtain Pricing and Reimbursement Approvals for the Product in the Field in the Licensor Territory and Licensor shall keep the JSC reasonably informed with regard to any Pricing and Reimbursement Approval proceedings for the Product in the Non-Encumbered Territory.  Neither Party shall be obliged to provide information in violation of applicable Law.

4.8Reporting; Adverse Drug Reactions.

(a)Licensor shall be responsible for maintaining the global safety database (“Global Safety Database”).  

(b)The Parties shall use good faith efforts to elaborate and execute, prior to the transfer of the Marketing Approval by Licensor to Licensee in accordance with the Transition Plan, a safety data exchange agreement (“Safety Data Exchange Agreement”), which shall provide that Licensor shall be responsible for maintaining the Global Safety Database and shall delineate the specific rights and responsibilities of each Party with respect to the management and the exchange of safety information for the Product within and outside of the Licensee Territory, provided, that for purposes of this Article 4.8 and notwithstanding any other provision to the contrary, (i) all safety Data generated by or on behalf of Licensor, its Affiliates and their respective licensees anywhere in the world and (ii) all Regulatory Filings (and related Data) of Licensor, its Affiliates and their respective licensees filed in the United States, shall be deemed Controlled by Licensor and available to Licensee in accordance with the Safety Data Exchange Agreement.

4.9Recalls. Without prejudice to Licensee’s right to indemnity pursuant to this Agreement or the Supply Agreement, to the extent that: (a) any Regulatory Authority in the Licensee Territory issues a directive or order that any Product be recalled or withdrawn in any country within the Licensee Territory; (b) a court of competent jurisdiction orders a recall or withdrawal of any Product in any country within the Licensee Territory, or (c) Licensee determines the Product should be recalled or withdrawn voluntarily in any country within the Licensee Territory, Licensee will recall or withdraw the Product.  Either Party shall advise the other Party of any Regulatory Authority-initiated mandatory recall of the Product in its respective territory.  Neither Party shall initiate any voluntary recall of the Product in its respective territory without the prior written notice to the other Party.  

Article V

COMMERCIALIZATION AND PROMOTION

5.1Licensee Commercialization. 

(a)Licensee shall, itself or through its Affiliates or Sublicensees, be responsible for, and shall control the conduct of, the Commercialization of the Product in the Licensee Territory, [***], and shall use Commercially Reasonable Efforts to Commercialize the Product in the Initial Indication in the Major Markets and in any other indication for which Marketing Approval of the Product is obtained in such Major Markets.  For clarity, it is understood and agreed that nothing in this Agreement shall require Licensee to conduct any Development activities with respect to the Product.  The Parties acknowledge that under appropriate circumstances it may fall within Commercially Reasonable Efforts in Commercializing the Product for Licensee to decide not to advance to the next stage of Commercialization depending on the outcomes of prior stages of Commercialization, including Market Access in the Licensee Territory.

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(b)Licensor shall supply to Licensee representative forms of Marketing, advertising and promotional core materials (together “Core Marketing Materials”), training manuals and educational materials for the Product used by Licensor in the Licensor Territory, which Licensee, its Affiliates and Sublicensees may adapt, in Licensee’s reasonable discretion and subject to any Third Party copyright, for use with respect to the Product in the Licensee Territory.  

(c)Licensee shall use Commercially Reasonable Efforts to develop and launch a patient support program for the Product in the Field and in the Licensee Territory [***], provided, in the event such patient support program is required under applicable Law in the countries of the Licensee Territory where the Licensed Product is Commercialized, Licensee shall develop and launch such patient support program [***].  

(d)Licensee shall supply to Licensor final approved forms of the Core Marketing Materials, training manuals and educational materials for the Product used by Licensee, its Affiliates and Sublicensees in the Licensee Territory, which Licensor, its Affiliates and sublicensees may adapt, subject to Licensor’s reasonable discretion and subject to any Third Party copyright, for use with respect to the Product in the Licensor Territory.  Upon Licensor’s reasonable request, Licensee shall also provide Licensor with all other marketing materials other than Core Marketing Materials developed, generated or otherwise prepared by or on behalf of Licensee.

Article VI

PAYMENTS

6.1License Fee. In consideration for the exclusive rights and licenses granted by Licensor to Licensee hereunder, Licensee shall pay to Licensor a license fee equal to sixty million USD (US $60,000,000) within [***] ([***]) days following the Effective Date in accordance with the payment provisions of Article 7.  Payment made in accordance with this Article 6.1 shall be non-refundable, non-creditable and non-cancellable.    

6.2Milestone Payments. 

(a)Development Milestone Payments. In further consideration for the exclusive rights and licenses granted by Licensor to Licensee hereunder, Licensee shall pay to Licensor the milestone payments set out below following the first achievement by Licensee, and/or any of its Affiliates or Sublicensees, of the corresponding milestone events set out below with respect to the Product, in accordance with this Article 6.2 and the payment provisions in Article 7:  

		
	
Milestone Event
	
Milestone Payment

	
     [***]

 
	
[***]

	
[***]
	
[***]

 

Total development milestones payable under this Article 6.2(a) shall not exceed [***] ([***]).

 

(b)Sales Milestone Payments. In further consideration for the exclusive rights and licenses granted by Licensor to Licensee hereunder, Licensee shall pay to Licensor the milestone payments set out below following the first time that the Annual Royalty Bearing Net Sales of the Product reach the following thresholds, in accordance with this Article 6.2 and the payment provisions in Article 7:    

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Sales Milestone Events
	
 Milestone Payment

	
 
	
 

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

	
[***]
	
[***]

 

(c)With respect to the Sales Milestones, each such Sales Milestone payment shall be payable only once, provided that if two (2) or more Sales Milestones are due and payable during the same Calendar Year, then Licensee may pay only the higher Sale Milestone payment due and payable during such Calendar Year and the payment of the lower Sales Milestone(s) would be deferred to the subsequent Calendar Year (any such deferred Sales Milestone payment amount, collectively, “Deferred Sales Milestone Amount”).  

(d)Licensor acknowledges and agrees that, the Development Milestones and Sales Milestones set forth in this Article 6 are conditional and nothing in this Agreement shall be interpreted to impose on Licensee any obligation to reach any such Development Milestones and Sales Milestones or to make the corresponding payments, provided Licensee complies with its obligations under this Agreement. Licensor further acknowledges and agrees that the sales levels set forth in Articles 6.2(b) and 6.4 shall not be construed as representing an estimate or projection of anticipated sales of the Product or implying any level of diligence or Commercially Reasonable Efforts, in the Licensee Territory but are merely intended to define Licensee’s royalty and other payment obligations, as applicable, in the event such sales levels are achieved.  

6.3Reports and Payments. Licensee shall notify Licensor in writing within [***] ([***]) days after Licensee first learns of the achievement of each milestone set out in Article 6.2 (and with respect to sales related milestones, following [***]) by Licensee, or any of its Affiliates or Sublicensees. The corresponding milestone payment shall be due within [***] ([***]) days of receipt by Licensee of an invoice from Licensor and issued no earlier than the notice of achievement of the corresponding milestone event.  Any payment made in accordance with Article 6.2 shall be non-refundable, non-creditable and non-cancellable, subject to Section 12.6(ii).

6.4Royalties. 

(a)During the Royalty Term, Licensee shall pay to Licensor, on a [***] basis, a royalty on the Annual Royalty Bearing Net Sales of the Product in the Licensee Territory by Licensee, its Affiliates or Sublicensees. Such royalty shall be paid [***], at the applicable rates set forth below, based on the Annual Royalty Bearing Net Sales of the Product, subject to the adjustments set forth in Article 6.6 (the “Royalty Payments”).

 

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Annual Royalty Bearing Net Sales in a 
Given Calendar Year

	
Royalty Rate

	
With respect to the portion of Annual Royalty Bearing Net Sales [***] 
	
[***]%

	
With respect to the portion of Annual Royalty Bearing Net Sales [***]
	
[***]%

	
With respect to the portion of Annual Royalty Bearing Net Sales [***]
	
[***]%

 

(b)Consequences of Expiration of the Royalty Term. Licensee shall not owe royalty on any Product sold in a country after expiration of the Royalty Term for such Product in such country.  Upon expiration of the Royalty Term with respect to the Product Commercialized in a country, Licensee shall have a fully paid up, perpetual license under the rights granted in this Agreement with respect to the Product in such country. 

(c)Royalty Payments and Reports. Within [***] after the end of each [***], commencing with the [***] in which the First Commercial Sale occurs, Licensee shall deliver to Licensor a report (each, a “Royalty Report”) setting out in compliance with the template attached in EXHIBIT 8 all details necessary to calculate the payments due under this Article 6.4, including Royalty Bearing Net Sales in the relevant [***] on a country-by-country basis, all relevant exchange rate conversions in accordance with Article 7.3 and the amount of any payment due from Licensee to Licensor, calculated in accordance with this Article 6.  Licensee shall provide preliminary estimated Royalty Report within [***] of the end of each [***].  The royalty payment shall be due within [***] of receipt by Licensee of an invoice from Licensor and issued no earlier than the date of receipt of the Royalty Report by Licensor.  

6.5Reduction for Generic Competition.  If during the Royalty Term, the Generic Competitors have achieved a Generic Market Share of more than [***]% within the Licensee Territory, in lieu of the royalty rate specified in Article 6.4(a) above, the royalty rate applicable to Annual Royalty Bearing Net Sales of the Product shall be reduced to [***] percent ([***]%), irrespective of the level of Net Sales.

6.6Third Party Licenses. If Licensee or any of its Affiliates or Sublicensee determines in its good faith judgment that it is necessary or reasonably advisable to obtain a license from any Third Party in order to Use the Product for any given country of the Licensee Territory then Licensee may deduct [***] percent ([***]%) of any such Third Party payments from the payment set forth in Article 6, provided that in no event shall the royalty rate payable to Licensor for the Annual Royalty Bearing Net Sales in a given Calendar Year (“Royalty Rate”) be reduced to a number that is less than [***] percent ([***]%) by application of such deduction, and any excess amount shall be carried forward to the subsequent Calendar Year(s).  

6.7Third Party Payments. [***] shall be solely responsible for all Third Party license payments, milestones and royalties owed with respect to the Product, or Intellectual Property Rights that are owned or licensed by [***] on or prior to the Effective Date (including for the avoidance of doubt any Third Party license payments owed under the Background Agreements).

6.8[***] shall reimburse [***]’s any Post-Approval Marketing Study Costs to be conducted in accordance with Article 4.1(b) on a [***] basis within [***] from receipt of an invoice from [***].  Such invoice shall be accompanied by documentation supporting the calculation of such reimbursement amounts.  

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Article VII

PAYMENTS; BOOKS AND RECORDS

7.1Payment Method. All payments under this Agreement shall be made by bank wire transfer in immediately available funds to an account designated with at least [***] ([***]) Business Days’ notice by the Party to which such payments are due, which account shall be opened in the name of such Party in the book of a bank in the European Union or the United States of America, as applicable.  Each Party undertakes to provide to the other Party all information and documents required by such other Party in connection with the relevant provisions of Laws relating to anti-money laundering/KYC and any existing related internal policies and which are satisfactory to it and allow it to comply with such Laws and policies.   

7.2Interest. Any payments or portions thereof due under this Agreement that are not paid by the date such payments are due under this Agreement shall bear interest at a rate equal [***] applicable on the date the payment becomes due with respect to payments in US Dollars, or the [***] with respect to payments in other currencies, plus in each case [***] percent ([***]%) per year, calculated on the number of days such payment is delinquent, compounded monthly and computed on the basis of a three hundred sixty five (365) day year. This Article 7.2 shall in no way limit any other remedies available to the Parties.   

7.3Currency Conversion. Unless otherwise expressly stated in this Agreement, all amounts specified in this Agreement are in US Dollars, and all payments by one Party to the other Party under this Agreement shall be paid in US Dollars. If any currency conversion shall be required in connection with the payment of royalties or other amounts under this Agreement, such conversion shall be calculated by the paying Party using the applicable average daily mid foreign exchange rates published in the Reuters pages over the period in which the payment obligation arises.

7.4Taxes.   

(a)If Laws or regulations require withholding of any taxes imposed upon a payee on account of any royalties or other payments paid under this Agreement, such taxes shall be deducted by the payor of such royalties or other payments as required by Law from such payment and shall be paid by the payor to the proper taxing authorities. The payor shall use Commercially Reasonable Efforts to (i) secure official receipts of payment of any withholding tax and shall send them to the payee as evidence of such payment and (ii) give advance notice to payee of the intention to withhold or deduct such taxes.  Any such amounts deducted by the payor in respect of such withholding or similar tax shall be treated as having been paid by the payee for purposes of this Agreement.  Notwithstanding the foregoing, if (i) the payor redomiciles, assigns its rights or obligations or delegates (including to an Affiliate pursuant to Article 17.8(c)) its rights under this Agreement, (ii) as a result of such redomiciliation, assignment or delegation, the payor (or its assignee or delegate) is required by applicable Law to withhold taxes from or in respect of any amount payable under this Agreement, and (iii) such withholding taxes exceed the amount of withholding taxes that would have been applicable but for such redomiciliation, assignment or delegation, then any such amount payable shall be increased to take into account such withholding taxes as may be necessary so that, after making all required withholdings (including withholdings on the additional amounts payable), the payee (or its assignee) receives an amount equal to the sum it would have received had no such increased withholding been made, provided however that if the payee receives, in the year of such withholding or the following year, a cash tax benefit from a refund of any such withholding taxes (or a credit in lieu of a refund), the payee shall pay to the payor an amount equal to such cash tax benefit, net of all reasonable out-of-pocket expenses incurred by the payee and its Affiliates in connection with the obtaining or receipt of such refund (or credit), it being specified that the payee shall use its commercially reasonable efforts to secure such refund (or credit) in the year of the relevant withholding or the following year.  Solely for purposes of this Article 7.4(a), a Party’s “domicile” shall include its jurisdiction of incorporation or tax residence and a “redomiciliation” shall include a reincorporation or other action 

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resulting in a change in tax residence of the applicable Party or its assignee.  Each Party shall cooperate with the other and furnish the other with appropriate documents, including Tax Documentation, to secure application of the most favorable rate of withholding tax under applicable Law (or exemption from such withholding tax payments, as applicable). “Tax Documentation” means any certificate or documentary evidence necessary to alleviate withholding on payments made by payor to payee under this Agreement, which includes, as  applicable, French tax forms number 5000 and 5003, as such forms may be amended from time to time in accordance with applicable Law duly stamped and validated by the relevant governmental entity with responsibility for taxes in connection with any tax reduction or exemption under any applicable international tax treaty between France and USA. Notwithstanding anything to the contrary in this Article 7.4(a), the Parties acknowledge and agree that Licensee will not, absent a change in Law or relevant circumstance between the date of this Agreement and the applicable date of payment, deduct or withhold from the amounts payable pursuant to Articles 6.1, 6.2, 6.4 or 6.5 any amount in respect of any taxes provided that Licensor provides Licensee with applicable Tax Documentation establishing an exemption from withholding under Article 12 of the 1994 income tax treaty between the government of the United States and the French Republic (as amended by the 2006 protocol and the 2009 protocol).  

(b)Indirect Taxes. All payments under Articles 6.1, 6.2, 6.4, and 6.5 of this Agreement are stated exclusive of Indirect Taxes.  Any Indirect Taxes required to be paid in connection with such payments due to Licensor shall [***].  “Indirect Tax” means any sales tax (including any consumption tax or value added tax), use tax, transfer taxes, duties or similar governmental charges. 

7.5Records; Inspection. Licensee shall keep, and require its Affiliates and Sublicensees to keep, complete, true and accurate books of accounts and records for the purpose of determining the amounts payable to Licensor pursuant to this Agreement and, if applicable, Licensee’s prosecution, maintenance and enforcement of Licensed Patents (“Records”).  Such Records shall be kept for the longer of (a) the period of time required by applicable Law in the Licensee Territory and (b) at least [***] ([***]) years following the expiration or termination of this Agreement.  Licensee shall require its Sublicensees to provide to Licensor (so that Licensor may provide the same to Pfizer) copies of all Records relating to such Sublicensees’ sale of the Product as necessary to allow Licensor or, if applicable, Pfizer (under the Pfizer License Agreement) to review such Records when conducting an audit of Licensee or Licensor, as applicable, pursuant to this Article 7.5.  Notwithstanding Article 9, pursuant to the Pfizer License Agreement, Pfizer will be allowed to review such Records.  Such Records will be open for inspection by an independent auditor chosen by Licensor and reasonably acceptable to Licensee for the purpose of verifying the amounts payable by Licensee hereunder. Such inspections may be made [***] each Calendar Year, at reasonable times and on reasonable prior written notice. Such Records for any particular Calendar Quarter shall be subject to [***]. The independent auditor shall be obligated to execute a reasonable confidentiality agreement prior to commencing any such inspection.  Inspections conducted under this Article 7.5 shall be at the expense of Licensor, unless a variation or error producing an underpayment in amounts payable exceeding [***] of the amount paid for a period covered by the inspection is established, in which case all reasonable costs relating to the inspection for such period and any unpaid amounts that are discovered shall be paid by Licensee, together with interest on such unpaid amounts at the rate set forth in Article 7.2 above. The Parties will endeavor in such inspection to minimize disruption of Licensee’s normal business activities to the extent reasonably practicable.  Licensor’s right to inspect under this Article 7.5 shall survive the expiration or termination of this Agreement for a term of [***] ([***]) years.  

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Article VIII

PRODUCT MANUFACTURING AND SUPPLY 

8.1General.  

(a)Subject to the terms and conditions of this Agreement, Licensor shall supply, or secure supply of, Licensee’s requirements for Drug Substance, Drug Product, Finished Product and Brite Stock (collectively, the “Materials”) for the Licensee Territory pursuant to a supply agreement to be entered into by the Parties as set forth below. 

(b)For purposes of this Article 8:

(i)“Brite Stock” shall mean Drug Product in un-labelled bottles for commercial supply; 

(ii)“Cost of Goods Sold” means, with respect to any Materials, the amount equal to the price paid by Licensor for the Materials to the Third Party as such Materials are ordered by Licensee (but excluding any costs relating to the maintenance of a safety stock), plus [***];      

(iii)“Drug Product” shall mean a finished dosage form containing Drug Substance that is not fully packaged and labelled; 

(iv)“Drug Substance” shall mean the active ingredient of the Product consisting of  the Compound in bulk form meeting the applicable specifications therefor that, but does not include intermediates used in the synthesis of such ingredient; and

(v)“Finished Product” shall mean finished (i.e., fully packaged and labelled) Drug Product for commercial supply.

8.2Supply Agreement. Within [***] ([***]) days after the Effective Date, the Parties will enter into a commercial supply agreement (a “Supply Agreement”) pursuant to which Licensor shall supply Licensee’s requirements of the applicable Materials for the Licensee Territory in accordance with the Manufacturing Standards, and the provisions set forth in EXHIBIT 6 and the terms of this Agreement. 

8.3Quality Agreement.  The Parties shall enter into separate quality agreement regarding supply of the Materials by Licensor to Licensee, incorporating provisions that are standard in the pharmaceutical field within [***] ([***]) days after Effective Date, and in any event prior to any delivery of Materials, as set forth in more details in EXHIBIT 6. 

8.4Licensed Technology Transfer and Transfer of the Supply Chain. 

(a)Notwithstanding anything in this Agreement, from the Effective Date, Licensee shall have the right (but not the obligation) to Manufacture or package or have Manufactured and or packaged by its Affiliates, Licensee’s requirements of the Finished Product, as well as, Licensee’s requirements of Drug Product and Drug Substance for the Licensee Territory, as set forth in more detail in EXHIBIT 6.

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(b)For the purposes of subclause (a), upon Licensee’s written request, Licensor shall cooperate with Licensee, [***], to transfer, or cause to be transferred, to Licensee or its Affiliate within mutually agreed reasonable timelines the Know-How Controlled by Licensor that is necessary or actually used for the Manufacture, packaging and/or testing and release of the Materials, and shall make personnel of Licensor reasonably available to assist Licensee and its Affiliate in practicing the Know-How so transferred in accordance with this Article 8.4(b).  With respect to any Brite Stock or Drug Substance Manufactured by Licensee or its Affiliate, Licensee shall have the option to terminate the Supply Agreement or to keep Licensor and the Third Party Manufacturer as second manufacturer. 

(c)Upon completion of technology transfer of any Material in accordance with Article 8.4(b) and validation of Licensee’s or Licensee’s Affiliate Manufacture of such Material and qualification of the applicable facility, if Licensor so requests, Licensee shall act a secondary manufacturer of Licensor with respect to the supply of the Materials and the Parties shall discuss in good faith the terms and conditions of supply of such Materials by Licensee to Licensor, provided that Licensee shall have no obligation to supply Licensor in any country in which Licensee’s facilities for Manufacturing the Materials are not yet qualified, and Licensee shall not be required to make any investment or obtain any new authorizations or permits to Manufacture and supply such Material for any such country.  

Article IX

CONFIDENTIALITY AND DATA PROTECTION

9.1Definition. 

(a)“Confidential Information” shall mean this Agreement and the terms and provisions of this Agreement and other proprietary information and data of a financial, commercial or technical nature (including such information or data of or relating to a Third Party) that the disclosing Party or any of its Affiliates have supplied or otherwise made available to the other Party or its Affiliates, which are disclosed, whether orally, visually or in writing. 

(b)Confidential Terms. The terms of this Agreement shall be deemed Confidential Information of both Licensee and Licensor. 

9.2Obligations. During the term of this Agreement and for [***] ([***]) years thereafter, the receiving Party will:

(a)protect all Confidential Information of the disclosing Party against unauthorized disclosure to Third Parties; 

(b)not use the Confidential Information of the disclosing Party except as permitted by or in furtherance of exercising rights or carrying out obligations hereunder. Each receiving Party will treat Confidential Information provided by the other Party with the same degree of care as if it were the receiving Party’s own confidential information (but under no circumstances less than reasonable care); and

(c)The receiving Party may disclose the Confidential Information of the disclosing Party to its Affiliates, and their respective directors, officers, employees, subcontractors, sublicensees, consultants, attorneys, accountants, banks, acquirers and investors (collectively, “Recipients”) who have a need-to-know such information for purposes related to this Agreement, provided that the receiving Party shall hold such Recipients to written obligations of confidentiality and non-use with terms and conditions at least as restrictive as those set forth in this Agreement.

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9.3Exceptions. The obligations under this Article 9 shall not apply to any information to the extent the receiving Party can provide convincing evidence that such information:

(a)is (at the time of disclosure) or becomes (after the time of disclosure) known to the public or part of the public domain through no breach of this Agreement by the receiving Party or any Recipients to whom it disclosed such information;

(b)was known to, or was otherwise in the possession of, the receiving Party prior to the time of disclosure by the disclosing Party other than under obligations of confidentiality;

(c)is disclosed to the receiving Party on a non-confidential basis by a Third Party who is entitled to disclose it without breaching any confidentiality obligation; or

(d)is independently developed by or on behalf of the receiving Party or any of its Affiliates, as evidenced by its written records, without use or access to the Confidential Information.

9.4Permitted Disclosures. 

(a)The restrictions set forth in this Article 9 shall not prohibit the receiving Party from disclosing or using (as specified below) any Confidential Information of the disclosing Party (i) that the receiving Party is required to disclose under Laws, a court order or other governmental order, or the rules and regulations of the Securities and Exchange Commission (“SEC”) or any national securities exchange, (ii) that the receiving Party needs to disclose or use to file, prosecute or enforce any Licensed Patents or Patents on jointly-owned inventions under Article 10, or (iii) that the receiving Party needs to disclose or use for purposes of obtaining or maintaining Regulatory Filings of the Product; provided that the receiving Party (A) as to subsection (i), provides the disclosing Party at least [***] ([***]) Business Days prior written notice of such disclosure (and the right to review and comment on the proposed disclosure)[***] (B) as to subsection (i) afford the disclosing Party an opportunity to review and comment on the confidential treatment for such required disclosure required by the SEC or national securities exchange and use reasonable efforts to secure confidential treatment for such required disclosure, (C) as to subsection (i) discloses only that portion of the Confidential Information that the receiving Party is legally required to disclose in the receiving Party’s legal counsel opinion and (D) as to subsections (ii) and (iii), the receiving Party provides reasonable advance notice to the other Party where reasonably practicable and discloses only that portion of the Confidential Information that it is reasonably necessary to disclose for such purpose and maintain confidential treatment for the longest possible period.  

(b)A receiving Party hereto may also disclose the disclosing Party’s Confidential Information to its Affiliates, licensees (with respect to Licensor), permitted Sublicensees (with respect to Licensee), investors and lenders and any other Third Parties to the extent such disclosure is reasonably necessary to exercise the rights granted to it, or reserved by it, under this Agreement, including granting a sublicense or obtaining any Marketing Approvals.  Notwithstanding anything to the contrary herein, Licensee acknowledges and hereby agrees that Licensor shall furnish to Pfizer a true and complete copy of this Agreement and each amendment thereto, subject to redactions that are not directly relevant to the performance of Licensor’s obligations under the Pfizer License Agreement, within [***] ([***]) days of the Effective Date and any Sublicense and amendments thereto, subject to redactions in accordance with this Article 9.4(b).

9.5Scientific Papers and Scientific Meetings. The Parties through a dedicated Working Group pursuant to Article 3.2(b) shall discuss their projected publications and elaborate an annual publication plan which will address all planned Scientific Papers and Scientific Presentations in scientific meetings on an annual basis. 

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9.6Scientific Papers.  Each Party may present, disclose or publish any information, data (including Data), and other results related to the Compound and the Product that have not previously been presented, disclosed or published (“Compound and Product Information”) through scientific publications in accordance with this Article 9.6 and subject to any obligations set forth under Licensor’s agreements with Third Party licensees. 

(a)Each Party shall provide to the other Party, prior to submission for publication, a draft of the proposed submission concerning the Compound and Product Information which have been prepared by or on behalf of such Party (or by a Clinical Study site contracted by such Party as sponsor of the relevant Clinical Study) or through any Investigator Sponsored Clinical Studies (each a “Scientific Paper”) to be published in indexed medical and scientific journals and similar publications (“Medical Journals”).   

(b)Commencing with the receipt of such draft Scientific Paper, the receiving Party shall have [***] ([***]) Business Days to notify the sending Party of its consent or denial with respect to the publication of such Scientific Paper (it being understood that, during such [***] ([***]) Business Day period, no submission for publication thereof shall take place).   

(c)In the event the receiving Party consents to the publications, but has comments thereto, the Party proposing to publish such Scientific Paper shall, in good faith, consider the comments made by the receiving Party, particularly if such publication may be prejudicial to the receiving Party’s opportunity to obtain any Patent rights.  

(d)The receiving Party may require that the publication of such Scientific Paper be suspended for a period of time not exceeding [***] ([***]) days to permit a Patent to be filed using the Know-How covered in the proposed Scientific Paper.  

(e)Neither Party will publish or present any Confidential Information of the other Party without such other Party’s prior written consent.  

(f)The sending Party shall provide to the receiving Party copies of any final Scientific Paper accepted by a Medical Journal within [***] ([***]) Business Days after the approval thereof, subject to applicable Medical Journal publisher’s rules, guidelines and any other health care compliance guidelines.  

(g)To enable free exchange of copyrighted material between the Parties, each Party agrees that it has or shall (i) obtain and maintain, at its own expense, an annual copyright license or equivalent license from the copyright clearance center and (ii) list the other Party as a collaborator in an agreement with the copyright clearance center if required by such agreement. 

(h)Notwithstanding anything to the contrary in this Article 9.6, Licensor retains the right to publish, subject to subsections (a), (d), (e), (f) and (g), Compound and Product Information arising from the Ongoing Clinical Studies.

(i)Notwithstanding anything to the contrary in this Article 9.6, with respect a Scientific Paper containing Compound and Product Information arising from an Investigator Sponsored Clinical Study supported by a Party, each Party will use reasonable efforts to follow the process described in subsections (a), (d), (e), (f) and (g), subject to compliance with best practices guidelines in the pharma industry and the provisions of such Party’s agreement with the Third Party sponsor.   

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9.7Abstracts, Posters and Slide Decks. Each Party may present any Compound and Product Information through publications, presentations, lectures, symposia or other meetings of healthcare professionals, or international congresses, conferences or meetings organized by a professional society or organization anywhere in the world (any such occasion, a “Presentation”) in accordance with this Article 9.7, and subject to Licensor’s obligations under Licensor’s agreements with Third Party licensees.  

(a)Each Party shall provide to the other Party, prior to presentation and through a dedicated working group, an initial draft of the proposed presentation concerning the Compound and Product Information which has been prepared by or on behalf of such Party (or by a Clinical Study site contracted by such Party as sponsor of the relevant Clinical Study) (each a “Scientific Presentation”) to be presented at a Presentation.  The presenting Party shall make reasonable efforts to provide to the other Party the initial draft of such Scientific Presentation within [***] ([***]) Business Days prior to the Presentation.

(b)Commencing with the receipt of any such draft Presentation, the receiving Party shall have [***] ([***]) Business Days to inform the sending Party of its observations and suggestions with respect thereto (it being understood that, during such review period, as applicable, no Presentation thereof shall take place) and the Parties shall discuss such observations and suggestions in good faith, particularly if such Presentation may be prejudicial to the other Party’s opportunity to obtain any Patent rights.  

(c)The receiving Party may require that the Presentation be suspended for a period of time not exceeding [***] ([***]) days to permit a Patent to be filed using the Know-How covered in the proposed Presentation. 

(d)Neither Party will present any Confidential Information of the other Party without such other Party’s prior written consent.  

(e)The sending Party shall provide to the receiving Party copies of all final versions of the Presentation presented at a Scientific Presentation within [***] ([***]) Business Days after the presentation thereof, subject to applicable publisher’s rules, guidelines and any other health care compliance guidelines.  

(f)Notwithstanding anything to the contrary in this Article 9.7, Licensor retains the right to publish, subject to subsections (a), (b), (d) and (e) Data and information arising from the Ongoing Clinical Studies.

(g)Notwithstanding anything to the contrary in this Article 9.7, with respect to a Scientific Presentation containing Compound and Product Information arising from an Investigator Sponsored Clinical  Study supported by a Party, each Party will use reasonable efforts to follow the process described in subsections (a), (b), (d), and (e), subject to compliance with best practices guidelines in the pharma industry and the provisions of such Party’s agreement with the Third Party sponsor.   

9.8Clinical Trial Website Registries. Each Party shall be free to register the Clinical Studies it is sponsoring with respect to the Product on ClinicalTrials.gov, clinicaltrialsregister.eu or in similar clinical trial registries.  Neither Party shall disclose or publish any Compound and Product Information on any website registries unless required by applicable Law or by such Party’s policies as consistently applied (provided that if either Party’s policies change so that they require disclosing or publishing any Compound and Product Information, such Party shall inform the other Party of such policy change), in which case the Party proposing to make such disclosure shall provide the other Party a detailed description of such required disclosure at least [***] ([***]) days prior to such registration or disclosure and shall, in good faith, consider the comments made by the other Party regarding the proposed registration or disclosure and the protection of any Intellectual Property Rights contained therein.  

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9.9Press Releases. Notwithstanding anything to the contrary in Article 9.2, the Parties have agreed on a mutual press release to announce the execution of this Agreement in the form attached in EXHIBIT 7, together with a corresponding Question & Answer outline for use in responding to inquiries about this Agreement. The Parties agree to consult with each other reasonably and in good faith with respect to the text of any subsequent press releases or other disclosures and obtain the approval of the other Party, no later than within [***] ([***]) Business Days prior to the issuance thereof; provided, however, that a Party may not unreasonably withhold or delay consent to such releases unless such release would adversely affect the rights or interests of such Party.   

9.10Prior Non-Disclosure Agreements. Upon execution of this Agreement, the terms of this Article 9 shall supersede any prior non-disclosure, secrecy or confidentiality agreement between the Parties, including the Confidentiality Agreement between the Parties dated January 9, 2018 and amended December 19, 2018. Any information disclosed under such prior agreements shall be deemed disclosed under this Agreement.  

9.11Disclosing Party Obligations.  To the extent a Party (the “Disclosing Party”) discloses, transfers or otherwise makes available any Transferred Data (which may include Personal Data) to the other Party (the “Receiving Party”) in connection with this Agreement, the Disclosing Party:

(a)shall, notwithstanding any other provision of this Agreement, use commercially reasonable efforts to: (i) ensure that the Transferred Data cannot be used by the Receiving Party to identify a Data Subject and (ii) not provide the Receiving Party with any additional information (if any), including any key codes or any other mechanism or data, that may enable the Receiving Party to attribute the Transferred Data to any identifiable Data Subjects; and

(b)has, to the best of its knowledge, complied with all applicable Data Protection Laws from time to time relating to the Processing of the Transferred Data.

9.12Independent Data Controllers.  Unless otherwise agreed between the Parties in accordance with Article 9.26 (for example in relation to any Processing of Personal Data by or on behalf of the Parties as joint controllers in connection with an Additional Clinical Study), the Receiving Party and the Disclosing Party agree that (to the extent that any Personal Data contained within the Transferred Data is disclosed to the Receiving Party), for the purposes of Data Protection Law, each of the Receiving Party and the Disclosing Party is an independent data controller.  

9.13Fair Processing Notices. The Receiving Party further agrees that the Disclosing Party (to the extent that any Personal Data contained within the Transferred Data is disclosed to the Receiving Party) may delay the disclosure of specific Personal Data to the Receiving Party until the Disclosing Party has provided such additional fair processing information to Data Subjects in relation to the Receiving Party’s Processing of such Personal Data or taken such other actions as the Disclosing Party reasonably believes to be required by Data Protection Law to enable the Disclosing Party to comply with its obligations thereunder.  If a Party reasonably believes that additional fair processing information or actions are required to ensure either Party’s compliance with Data Protection Law from time to time, such Party shall notify the other Party and the Parties shall discuss in good faith what action, if any, is required to be taken provided that the Receiving Party agrees that, as between the Parties, the Disclosing Party shall have the sole right (but not the obligation) to communicate or procure the communication of fair processing information (including updating such fair processing information during the term of this Agreement) to Data Subjects, in a manner and form to be reasonably determined by the Disclosing Party in accordance with Data Protection Law, with any and all reasonable costs incurred by the Disclosing Party arising from such support to be borne by the Receiving Party.

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9.14Personal Data Transfers. The Receiving Party shall, other than to countries approved, from time to time, as having equivalent protection for Personal Data as under European Data Protection Laws by the EC, not Process such Personal Data outside the EEA unless where the Receiving Party complies with the data importer’s obligations set out in the EU Standard Contractual Clauses for transfers from data controllers in the European Union or European Economic Area to controllers established outside the European Union or European Economic Area pursuant to EU Commission Decision 2004/915/EC (as amended or replaced from time to time) (the “Controller to Controller Clauses”) which are hereby incorporated into and form part of this Agreement (and for the purposes of Annex B of such Controller to Controller Clauses, categories of Data Subjects, purpose of transfer, types of Personal Data, recipients and categories of sensitive Personal Data shall be as set out in Articles 9.15 to 9.20 below. 

9.15Nature and Purpose of Sharing.  Unless otherwise agreed between the Parties in accordance with Article 9.26 (for example in relation to any Processing of Personal Data by or on behalf of the Parties as joint controllers in connection with an Additional Clinical Study), the Personal Data is shared, on a controller to controller basis, solely for the purpose of the Development, Manufacture, Regulatory Filings and Commercialization of the Products by the Parties in connection with this Agreement. The sharing of the Personal Data is necessary for the purpose of the legitimate interests pursued by the Parties in Developing, Manufacturing, Regulatory Filings and Commercializing the Product as contemplated by this Agreement.

9.16Categories of Recipients. the Personal Data may only be onward transferred by the receiving Party as permitted by and on the terms of this Agreement.

9.17Duration of Sharing. As set forth in this Agreement.

9.18Types of Personal Data Shared. The Personal Data will include:

(a)identification information, such as name, address, contact information and qualifications, relating to each Party’s personnel and those working on such Party’s behalf in connection with the Development, Manufacture, Regulatory Filings and Commercialization of the Products by the Parties in connection with this Agreement; and

(b)identification information, such as name, address, contact information and qualifications on healthcare professionals and on investigators involved in Clinical Studies, each to the extent included in the Transferred Data. 

9.19Special Category Personal Data Shared. The Personal Data will include any special categories of Personal Data included in the Transferred Data including but not limited to identification patient number, medical records, ethnic or racial background, test results, results of physical examinations, samples, adverse effects and any other health information relating to the Data Subjects listed in (c) and (d) of Article 9.20 below.

9.20Categories of Data Subjects. The Personal Data will relate to data subjects including: (a) each Party’s personnel and those working on such Party’s behalf in connection with a Clinical Study; (b) healthcare professionals and investigators involved in Clinical Studies; (c) Clinical Study subjects and/or patients; and (d) end users of and/or patients using the Product;

9.21Data Minimization. Each Party acknowledges that, pursuant to European Data Protection Laws, each Party is under an obligation to ensure that the Personal Data they Process and which the Disclosing Party discloses is limited to only that which is necessary for the purposes of the Processing, therefore the Disclosing Party shall (to the extent that any Personal Data contained within the Transferred 

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Data is disclosed to the Receiving Party), notwithstanding any other provision of this Agreement, use commercially reasonable efforts to transfer only that Personal Data which is required to facilitate the performance of this Agreement. If the Receiving Party reasonably believes that additional Personal Data is required to be disclosed to enable the performance of this Agreement, the Receiving Party shall notify the Disclosing Party and the Parties shall discuss in good faith whether such additional Personal Data will be disclosed by the Disclosing Party, taking into account the Disclosing Party’s obligations under applicable European Data Protection Laws, the potential for the provision of anonymized data in place of the requested Personal Data, and any actions which are required to be taken by either Party in connection with such requested disclosure.

9.22Receiving Party Obligations. The Receiving Party shall, and shall cause its officers, employees, agents, attorneys, consultants, advisors and other representatives to:

(a)Process any Personal Data contained within the Transferred Data in accordance with Data Protection Law and solely for the purposes disclosed and purposes compatible under applicable Data Protection Law with the purposes disclosed to the relevant Data Subjects from time to time or as otherwise permitted by applicable Data Protection Law; 

(b)implement appropriate technical and organizational measures to ensure a level of security appropriate to the risk, taking into account the state of the art, the costs of implementation and the nature, scope, context and purpose of processing and promptly notify the Disclosing Party if any Personal Data is subject to any unauthorized or unlawful access, loss, destruction or damage; and

(c)not further disclose the Personal Data to any Third Party (including, for clarity, any subcontractors) in a manner incompatible with the fair processing information provided to the relevant Data Subjects.

9.23Data Subject Requests. In the event that either Party directly receives a request from a Data Subject for the rectification or erasure of such Personal Data (or any other request regarding Data Subjects exercising rights under any European Data Protection Law) (a “Data Subject Request”), the party receiving the request shall where appropriate pass on the details of the request to the other Party; and each Party shall provide the other any reasonable assistance as is required for the purposes of responding to the Data Subject Request in accordance with any European Data Protection Law especially in terms of time limit to respond to a Data Subject, which may involve contacting clinical sites, investigators or other subcontractors of the disclosing Party and providing additional information.

9.24Governmental Authority Requests. In the event that either Party receives a request from a Governmental Authority in relation to any Personal Data comprised within the Transferred Data, the other Party agrees to provide reasonable assistance to such Party to enable it to respond to the Governmental Authority’s request which may involve contacting any clinical sites, investigators or other subcontractors of the other Party and providing additional information, with any and all reasonable costs incurred by the other Party arising from such support to be borne by the Party which has received the request from the Governmental Authority.

9.25CCPA. To the extent that the CCPA is applicable to either Party: (a) such Party agrees to comply with all of its obligations under the CCPA; and (b) to the extent that the Transferred Data involves any communication of “personal information” (as defined by the CCPA) from one Party to the other Party pursuant to this Agreement, the Parties agree that no monetary or other valuable consideration is being provided for such personal information and therefore neither Party is “selling” (as defined by the CCPA) personal information to the other Party.  

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9.26Changes. If a Party reasonably believes that any changes are required to this Agreement to ensure a Party’s compliance with Data Protection Law or to address the legal interpretation of Data Protection Law, including in relation to the respective roles of the Parties with regard to any Personal Data Processed under this Agreement, that Party may notify the other and the Parties shall negotiate in good faith appropriate amendments or addenda to this Agreement to the extent required to ensure both Parties’ compliance with Data Protection Law from time to time. Without prejudice to the generality of the foregoing, if a Party reasonably believes that the Parties may be joint controllers in respect of certain Processing of Personal Data in connection with this Agreement, in particular, in the event of the Parties jointly conducting Shared Clinical Trial or of one Party requesting the other to perform a Clinical Study, regardless of the country where such Clinical Studies are performed, the Parties shall negotiate in good faith whether to amend or enter into an addendum to this Agreement in order to reflect such joint controller relationship and to allocate the Parties’ respective responsibilities as joint controllers in respect of such Processing.

Article X

PATENT PROSECUTION AND ENFORCEMENT 

10.1Ownership of Inventions. 

(a)Pre-existing IP. Subject only to the rights expressly granted to the other Party under this Agreement, each Party shall retain all rights, title and interests in and to any Intellectual Property Rights that are owned by, or licensed or sublicensed to, such Party prior to the Effective Date or independent of this Agreement.

(b)Inventorship of Inventions shall be determined in accordance with the rules and regulations of the U.S. Patent and Trademark Office.

(c)All Inventions made solely by employees, agents and independent contractors of Licensor or its Affiliates pursuant to this Agreement and all Intellectual Property Rights therein, shall be owned, as between the Parties, solely by the Licensor (“Licensor Inventions”).

(d)All Inventions made solely by employees, agents and independent contractors of Licensee or its Affiliates or Sublicensees, pursuant to this Agreement and all Intellectual Property Rights therein, shall be owned, as between the Parties, solely by Licensee (“Licensee Inventions”).

(e)All Inventions made jointly by employees, agents and independent contractors of each Party or its Affiliates or sublicensees (including Sublicensees as applicable) pursuant to this Agreement, and all Intellectual Property Rights therein, shall be owned jointly by the Parties such that each Party shall have an undivided interest therein (“Joint Inventions”).

(f)All Patents claiming patentable, jointly owned Joint Inventions shall be referred to herein as “Joint Patent Rights.”  Except to the extent either Party is restricted by the licenses granted to the other Party and covenants set forth herein, each Party shall be entitled to practice and exploit the Joint Inventions and the Intellectual Property Rights therein, for all purposes on a worldwide basis and to grant licenses thereunder, without any duty of accounting or obligation to seek consent from the other Party with respect thereto.  Each Party will: (i) grant and hereby does grant all permissions, consents and waivers with respect to, and all licenses under, the Joint Inventions, and Intellectual Property Rights therein, throughout the world, (ii) execute documents as reasonably necessary to accomplish the foregoing, and (iii) reasonably cooperate with the other Party to transfer to such other Party physical embodiments (or copies thereof) of any Joint Inventions, [***].

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(g)Each Party shall, and shall cause its sublicensees and Affiliates, and all independent contractors, employees and agents of such Party, to cooperate with the other Party and take all reasonable actions and execute such agreements, declarations, assignments, legal instruments and documents as may be reasonably required to perfect the other Party’s right, title and interest in and to Inventions, and Patents thereon, and other Intellectual Property Rights as set forth in this Article 10.1.  Each Party shall also include provisions in its relevant agreements with Third Parties that affect the intent of this Article 10.1. 

(h)During the term of this Agreement, Licensee shall and hereby does grant to Licensor a royalty free, fully paid up, perpetual, irrevocable, non-exclusive, license, with the right to sublicense through multiple tiers, under Licensee Inventions and all Intellectual Property Rights therein, solely to Develop, Manufacture and Commercialize the Compound and/or the Product in the Licensor Territory, provided, that the license under Licensee Inventions and all Intellectual Property Rights therein covering or claiming any new uses of the Product outside of the Initial Indication shall be exclusive in the Licensor Territory solely to Develop, Manufacture and Commercialize the Compound and/or the Product.  This license shall be superseded by the license granted under Article 13.2(d) upon the expiration or termination of this Agreement.   

10.2Prosecution and Maintenance of Licensed Patents. 

(a)Prosecution of Licensed Patents.   

(i)As between Licensee and Licensor, Licensor shall have the sole right but not the obligation for the filing, prosecution and maintenance of all Licensed Patents in the Licensor Territory at Licensor’s  sole discretion and [***].   

(ii)As between Licensee and Licensor, Licensor shall have the first right, but not the obligation, for the filing, prosecution and maintenance of all Licensed Patents (including the Joint Patent Rights) in the Licensee Territory [***], provided that if Licensor intends to abandon, or not to file a patent application covering, any such Licensed Patents (including Joint Patent Rights) that is not sublicensed to Licensee under the Pfizer License Agreement in any country in the Licensee Territory (a “Non-Pfizer Puma Patent Right”), Licensor shall provide Licensee with a written notice of such intent at least [***] ([***]) days in advance of the relevant deadline.  In such case: (X) Licensee will provide a written response to Licensor at least [***] ([***]) days in advance of the relevant deadline if Licensee wishes to, file, prosecute and maintain (in its sole discretion) such Non-Pfizer Puma Patent Right in such country; (Y) if Licensee provides the affirmative notice under clause (X) above, Licensor shall promptly provide all files related to filing, prosecuting and maintaining such Non-Pfizer Puma Patent Right to counsel designated by Licensee; (c) upon completion of the transfer of such files under clause (Y), Licensor shall no longer be responsible for the costs and expenses relating to filing, prosecuting and maintaining (as applicable) such Non-Pfizer Puma Patent Right in such country; and (d) solely for the purpose of determining the Royalty Term for the Product, the term “Licensed Patent” automatically shall be modified to exclude such Non-Pfizer Puma Patent Right in such country as of the date Licensee provides such written request to Licensor.  

(iii)Licensor agrees to inform with sufficient advance notice and coordinate with Licensee through the Patent Working Group with respect to patent prosecution or other proceedings with respect to the Licensed Patents in the Licensee Territory.  Licensor shall provide Licensee with copies of each draft patent application to be filed as well as copies of each office action received from the relevant patent offices in each country of the 

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Licensee Territory, in each case with enough lead time where reasonably practicable, to enable Licensee to review and comment on such application or action, which comments shall be taken into account by Licensor.  

(iv)Licensor shall consider in good faith Licensee’s comments and feedback with respect to strategic patent prosecution decisions, including extension countries, patent term extension (or similar additional or supplementary protection), and Unitary Patent court opt-out.  Subject to the above good faith consideration, Licensor is not required to incorporate Licensee’s comments and, subject to the provisions of this Agreement, retains final decision-making authority with respect to prosecution and maintenance of such Licensed Patents.

(v)Licensor shall not decide to not file a patent or to discontinue prosecution, maintenance or defense of any Licensed Patents (other than Non-Pfizer Puma Patent Right) or otherwise abandon any such Licensed Patents without Licensee’s written consent, which shall not be unreasonably withheld or delayed.  Without limiting the foregoing, Licensee may withhold consent if Licensor has not obtained a permission from Pfizer to assign to Licensee the right to undertake or continue such prosecution, maintenance or defense at its sole cost and expense.  If responsibility for prosecution, maintenance or defense of any of the Licensed Patents (other than Non-Pfizer Puma Patent Right) are assigned to the Licensee in accordance with this Article, then [***].  Licensee shall hold all information disclosed to it under this Article 10.2 as confidential.  If such responsibility is so assigned to the Licensee, then Licensee shall be responsible for providing information required to be provided to Pfizer pursuant to the Pfizer License Agreement in connection with such activities as provided in Article 7.5 thereof.

(b)Patent Term Extensions. 

(i)The Parties shall determine the strategy with respect to patent term extension or similar additional or supplemental protection in the Licensee Territory, including the Patent(s) to be extended in order to maximize the sales of the Product in the Licensee Territory (the “Patent Extension Strategy”).  If the Parties cannot agree on the Patent Extension Strategy at least [***] ([***]) months before the applicable deadline to file the patent term extension or similar additional or supplemental protection in the Licensee Territory, the Parties shall designate an independent patent counsel (“Expert”) by mutual agreement no later than [***] ([***]) months before the applicable filing deadline (and in the absence of such agreement by such time, such Expert shall be selected by the ICC International Centre for ADR in accordance with the Rules for the Appointment of Experts and Neutrals of the International Chamber of Commerce, which procedure shall only apply to such selection).  Within [***] ([***]) days after such expert has been selected, Licensor will provide to the expert and to Licensee copies of the EP Patents in EXHIBIT 1 along with the Summary of Product Characteristics (“SumPC”) issued by the EMA for the Product. Within [***] ([***]) days after receiving the EP Patents in EXHIBIT 1 and the SumPC, the Expert shall make a recommendation as to which of the EP Patents to choose for Supplemental Protection Certificate (“SPC”) protection.  The decision of the Expert will be [***] on the Parties, provided that in the event that neither Party agrees with the Expert’s recommendation as to the EP Patents to choose for SPC, [***] will [***] the final decision making right regarding the same.  [***].

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(ii)After the Patent Extension Strategy has been determined, Licensor shall implement such strategy and file all applications and take actions necessary to obtain patent term extensions, or similar additional or supplemental protection [***], with respect to the Product under statutes in any country within the Licensee Territory, which extensions shall be owned, as between the Parties, by Licensor.  The Parties shall fully cooperate to obtain such extensions and additional protection.   

10.3Notice. Each Party will promptly notify the other Party in writing of (a) any actual or threatened infringement, misappropriation, other violation, or challenge to the validity, scope or enforceability by a Third Party of any Licensed Intellectual Property in the Non-Encumbered Territory or the Licensee Territory of which it becomes aware (“Third Party Infringement”), (b) any allegation by a Third Party that any Intellectual Property Right owned by it is infringed, misappropriated, or otherwise violated by the Development, Manufacturing or Commercialization of the Product in the Licensee Territory or the Non-Encumbered Territory, each of which it becomes aware (“Defense Action”). 

10.4Third Party Infringement Claims. 

(a)Licensee Control. Subject to this Article 10.4(a), Licensee shall have the first right (but not the obligation), [***], to control enforcement of the Licensed Intellectual Property against any Third Party Infringement in the Licensee Territory.  Prior to commencing involvement in any such suit, action or proceeding, Licensee shall consult with Licensor and shall consider Licensor’s timely recommendations regarding the proposed suit, action or proceeding, except to the extent delay may reasonably result in the loss of rights by or otherwise adversely impact Licensee.  Licensee shall give Licensor timely notice of any proposed settlement of any such suit, action or proceeding that Licensee controls and [***]. Notwithstanding anything to the contrary herein, Licensor shall have the sole right, [***], to control enforcement of [***] against any Third Party Infringement in the Licensee Territory. 

(b)Licensor’s Control. Licensor shall have the right (but not the obligation) to control enforcement of the Licensed Intellectual Property against any Third Party Infringement if Licensee provides Licensor with written notice that it is not exercising its right to control such enforcement, or if Licensee fails to timely initiate or file the relevant response to (as applicable), a suit, action or proceeding with respect to such Third Party Infringement prior to the expiration of the [***] ([***]) day period following first receipt by either Party of notice from the other Party of such Third Party Infringement.  

(c)Rights of Non-Controlling Party. Notwithstanding anything to the contrary herein, the Party that is not controlling the suit, action or proceeding pertaining to enforcement of the Licensed Intellectual Property against Third Party Infringement as described in this Article 10.4 shall join as a party to such suit, action or proceeding upon the reasonable request and expense of the Party controlling such action if necessary for standing purposes. The Party that is not controlling such a suit, action or proceeding shall have the right to be represented by counsel (which shall act in an advisory capacity only, except for matters solely directed to such Party) of its own choice and [***] (subject to subsection (d) below) in any such suit, action or proceeding.

(d)Recovery. After giving effect to any applicable allocation of recoveries pursuant to the Pfizer License Agreement, recoveries shall be allocated as follows: [***].   

(e)Defense Actions.  Licensee shall have all authority with respect to any such Defense Action in the Licensee Territory, including the right to exclusive control of the defense of any such suit, action or proceeding and the exclusive right to compromise, litigate, settle or otherwise dispose of any such suit, action, or proceeding; provided that Licensee shall keep Licensor timely informed of the proceedings and filings, and provide Licensor with copies of all communications pertaining to each such Defense Action and [***].   

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10.5Recordation. In those countries where Licensee wishes to record its patent licenses, promptly following Licensee’s request, Licensor shall record the Pfizer License Agreement at Licensor’s expenses, and will provide to Licensee, a separate license for the Licensed Patents so that Licensee can arrange for the recordation of its license with the appropriate governmental agency, [***]. The Parties shall cooperate in the preparation and execution of such documents and Licensor shall provide all reasonable assistance to Licensee in this respect.  Notwithstanding anything to the contrary herein, in the event the recording of the Pfizer License Agreement requires the consent, approval or other execution of signature(s) by Pfizer or its Affiliates, then Licensor shall use its commercially reasonable efforts to obtain such consent, approval or signature, as applicable, and if Pfizer or its Affiliate does not consent, approve or otherwise provide with its signature, then Licensor shall not be in breach of this Article 10.6. 

10.6Patent Marking. To the extent required by applicable Laws, Licensee agrees to mark, and have its Affiliates and Sublicensees mark, all patented Product they sell or distribute pursuant to this Agreement in accordance with the applicable patent statutes or regulations in the country or countries of sale thereof. 

Article XI

TRADEMARKS 

11.1Display. 

(a)All packaging materials, labels and Marketing Materials for the Product shall display the Product Trademarks and no other product-specific trademarks or branding. 

(b)Each Product shall be sold in the Licensee Territory under the trade name of Licensee or other trade name chosen by Licensee and the logo of Licensee.  Licensee shall use Licensor’s registered trademark Nerlynx®.  The trademarks of Licensee, trade dress, style of packaging and the like with respect to Products in the Licensee Territory may be determined by Licensee in a manner that is consistent with Licensee’s standard trade dress and style, but shall be subject to the review by the JSC to ensure the same are consistent with Licensor’s global trademark guidelines.  

11.2Grant of License. Subject to the terms and conditions of this Agreement, Licensor hereby grants, and shall cause its Affiliates to grant, to Licensee a royalty-free, fully paid up, exclusive license to use the Product Trademark(s) solely for the purpose of Commercializing the Product in the Field and in the Licensee Territory in accordance with this Agreement.  Licensor shall [***] and use its commercially reasonably efforts to otherwise maintain the registered Product Trademark(s) throughout the Licensee Territory [***].  If the Product Trademark(s) is not registered in any country of the Licensee Territory, Licensor shall file and [***], and use its commercially reasonable efforts to register, and maintain such Product Trademark(s) in such country as reasonably requested by Licensee, [***], and such Product Trademark(s) shall be deemed to be included in EXHIBIT 5.  

11.3Recordation of Licenses. In those countries where Licensee wishes to record its trademark license, Licensor will provide to Licensee, on Licensee’s written request, a separate trademark license for the Product Trademarks licensed by Licensor to Licensee, and Licensee will arrange for the recordation of such trademark license with the appropriate Governmental Authority, [***], promptly following receipt of such license from Licensor.  The Parties shall cooperate in the preparation and execution of such documents and Licensor shall provide all reasonable assistance to Licensee in this respect [***]. 

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11.4Enforcement. 

(a)If either Party becomes aware of any actual or threatened infringement of any Product Trademarks in the Licensee Territory, such Party shall promptly notify the other Party in writing.  Licensee shall have the first right, [***], to initiate infringement proceedings or take other appropriate actions against an infringement of any Product Trademarks in the Licensee Territory and/or to defend any actions or proceedings involving the Product Trademarks in the Licensee Territory, as the case may be. 

(b)If Licensee does not initiate proceedings or take other appropriate action within [***] ([***]) days of receipt of a request by Licensor to do so, then Licensor shall be entitled, [***], to initiate infringement proceedings or take other appropriate action against an infringement of the Product Trademark in the Licensee Territory, or to defend any actions or proceedings involving or affecting a Product Trademarks in the Licensee Territory, as the case may be. 

(c)The Party conducting such action shall have full control over the conduct of such action, including settlement thereof; provided, however, that [***]. 

(d)In any event, the Parties shall keep one another informed of the status of their respective activities regarding any litigation in the Licensee Territory involving a Product Trademarks or settlement thereof and shall assist one another and cooperate in any such litigation at the other’s reasonable request (including joining as a party plaintiff to the extent necessary and requested by the other Party).  [***]. 

11.5Domain Names. Licensor shall own rights to, and shall be responsible, [***], for registering and maintaining, the Internet domain names listed on EXHIBIT 5 (each of the foregoing, a “Domain Name”) and agrees to grant, and hereby grants to Licensee a royalty-free, fully paid-up non-exclusive license to use those particular Domain Names in connection with its Commercialization of the Product in the Licensee Territory in accordance with this Agreement.  In the event Licensee would like to use an available Internet domain name that includes any Product Trademarks Controlled by Licensor and not previously registered in the Licensee Territory as a country-level Internet domain name, Licensor grants Licensee its consent to register and maintain such Internet domain names in Licensee’s name and [***]. 

Article XII

TERM AND TERMINATION

12.1Term. This Agreement shall commence on the Effective Date and, unless terminated earlier pursuant to this Article 12, shall expire upon the last-to-expire Royalty Term.

12.2Termination for Material Breach. Either Party shall have the right to terminate this Agreement in the event the other Party has materially breached or defaulted in the performance of any of its material obligations hereunder and in the overall context of the Agreement, and such breach continues for ninety (90) days after written notice thereof was provided to the breaching Party by the non-breaching Party which clearly mentions the remedies that the non-breaching Party intends to apply should the breach remain uncured (the “Notice of Termination”).  Any such termination shall become effective at the end of such ninety (90) day period if, prior to the expiration of the ninety (90) day period, the breaching Party has not disputed or cured any such breach or default.  Such ninety (90) day period may be extended if the breaching party communicates to the non-breaching Party a written remediation plan reasonably designed to cure such breach or default within a reasonable additional time period, not to exceed an additional ninety (90) days following expiration of the foregoing ninety (90) day period.  If the allegedly breaching Party disputes in good faith the material breach set forth in a Notice of Termination provided by the non-breaching Party in accordance with this Article 12.2 and provides written notice of such dispute to the non-breaching 

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Party within thirty (30) of the Notice of Termination, this Agreement shall not be terminable by the non-breaching Party until it has been determined by arbitration under Article 16.3 (“Arbitration Period”) that this Agreement was materially breached by the breaching Party and then only if the breaching Party has not cured the material breach set forth in the Notice of Termination within thirty (30) days following such arbitration determination.  [***]

12.3Termination for Bankruptcy. Either Party shall have the right to terminate this Agreement upon written notice to the other Party: (a) if such other Party is declared insolvent or bankrupt by a court of competent jurisdiction; (b) if a voluntary or involuntary petition in bankruptcy is filed in any court of competent jurisdiction against such other Party and such petition is not dismissed within ninety (90) days after filing; (c) if such other Party shall make or execute an assignment of substantially all of its assets for the benefit of creditors; or (d) substantially all of the assets of such other Party are seized or attached and not released within ninety (90) days thereafter. All licenses granted under this Agreement are deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code, licenses of right to intellectual property as defined in Section 101 of such Code. The Parties agree that Licensee may fully exercise all of its rights and elections under the U.S. Bankruptcy Code and any foreign equivalent thereto in any country having jurisdiction over a Party or its assets. The Parties further agree that, in the event Licensee elects to retain its rights as a licensee under such Code, Licensee shall be entitled to complete access to any Licensed Intellectual Property and all embodiments of such technology. 

12.4Termination for Convenience. Licensee shall be permitted to terminate the Agreement at will with six (6) months’ prior written notice.   

12.5Termination for Safety Reasons. Licensee shall be permitted to terminate the Agreement for safety reasons upon sixty (60) days written notice to Licensor if Licensee has evidence of safety issues on the basis of which a reasonable investigator would conclude that such issues will prevent the successful Development and Commercialization of the Product hereunder.  Licensee shall provide such evidence to Licensor together with such notice and shall discuss such evidence as reasonably requested by Licensor. If Licensee determines, in its reasonable judgement, that it has evidence of safety issues that are likely to prevent the successful Development and Commercialization of the Product hereunder, Licensee may so notify Licensor in writing.  In such event, whether or not the situation is determined to trigger Licensee’s right to terminate the Agreement for safety reasons pursuant to the first sentence of this Article 12.5, Licensee’s obligations under Article 5.1 shall be suspended for a reasonable time period to enable the Parties to understand whether such issues exist and if so, address such issues (such suspension period not to be longer than ninety (90) days).   

12.6Alternative to Termination for Material Breach. If Licensor has materially breached or defaulted in the performance of any of its material obligations hereunder, including its representations and warranties pursuant to Article 14, and such breach is not curable or has not been cured within ninety (90) days after written notice thereof was provided by Licensee, then, without limiting any other remedies of Licensee, Licensee may elect to continue the Agreement, provided that (i) Licensee shall be released of its diligence obligations pursuant to Article 5.1(a) to the extent such obligations are impacted by Licensor’s breach and (ii) the payments to be made hereunder by Licensee to Licensor shall be reduced by [***] until such time as the resulting aggregate reduction equals the damages Licensee suffered as a result of Licensor’s breach as will be finally determined by mutual agreement or pursuant to Article 16 [***]; provided that in no event shall a Royalty Rate under this Agreement be reduced to a number that is less than [***] by reason of such offset and/or through the application of Article 6.5.

12.7No Partial Termination. This Agreement may not be terminated by Licensee under Article 12.4, 12.5 or by either Party for cause under Article 12.2 or for bankruptcy under Article 12.3 on a country-by-country or other partial basis. 

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Article XIII

EFFECT OF TERMINATION

13.1Accrued Obligations. The expiration or termination of this Agreement for any reason shall not release either Party from any liability which, at the time of such expiration or termination, has already accrued to the other Party or which is attributable to a period prior to such expiration or termination, nor will any termination of this Agreement preclude either Party from pursuing all rights and remedies it may have under this Agreement, or at law or in equity, with respect to breach of this Agreement, provided that any milestone payment that is achieved under Article 6.2 during the termination notice period shall be reduced by [***] percent ([***]%).  For clarity, any Deferred Sales Milestone Amount shall not be subject to the foregoing reduction.  

13.2Rights on Termination of Agreement. In case of termination of this Agreement by either Party, this Article 13.2 shall apply: 

(a)Wind-down Period. 

(i)Licensee shall use commercially reasonable efforts to effect a smooth termination of the Agreement, including by performing the activities set forth in Articles 13.2(a)(iii), (iv) or (v), for a period not exceeding six (6) months following the termination of the Agreement (“Transition Period”).

(ii)Licensee shall have the right to sell its remaining inventory of the Product in the Licensee Territory following the termination of this Agreement during the Transition Period.

(iii)In the event Licensee is the sponsor of or conducting any on-going Clinical Studies of the Product and/or any ongoing pre-clinical studies and/or formulation studies (e.g., stability studies) of the Product following the date a notice of termination has been issued by Licensor or Licensee, as applicable, Licensee shall be entitled to complete or wind down such activities, unless Licensor requests that they be transitioned to Licensor, in which case Licensee shall use commercially reasonable efforts to support such transition to Licensor, at Licensor’s costs.

(iv)Each Party shall use commercially reasonable efforts to cooperate with the other and/or its designee to effect a smooth and orderly wind down or transition in of the activities related to the Product in the Licensee Territory during the Transition Period.

(v)Licensee shall provide Licensor with country specific Marketing Materials for use limited to the Product and subject to Third Party copyrights.

[***].  

(b)Each Party shall pay to the other Party all amounts due to the other Party with respect to the Shared Development Budget, Post-Approval Marketing Study Costs and any Deferred Sales Milestone Amount accrued and unpaid as of the effective date of termination or expiration, within sixty (60) days following the effective date of termination or expiration. 

(c)Subject to Article 13.2(a)(i), upon termination of this Agreement all licenses granted by Licensor to Licensee shall terminate.

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(d)Effective automatically upon any expiration or termination of this Agreement, Licensee shall and hereby does grant to Licensor a non-exclusive, worldwide, transferable, perpetual and irrevocable license, with the right to sublicense through multiple tiers, under any Intellectual Property Rights Controlled by Licensee claiming Inventions that are necessary or reasonably useful for the Development, Manufacture, Commercialization or other Use of the Product as they exist at the time of such termination of this Agreement solely to Develop, Manufacture, Commercialize and otherwise Use the Product, provided, that in case of termination of this Agreement (as opposed to expiration), the license under Licensee Inventions and all Intellectual Property Rights therein covering or claiming any new uses of the Product outside of the Initial Indication shall be exclusive to Develop, Manufacture and Commercialize the Compound and/or the Product. 

(i)Within sixty (60) days following any expiration or termination of this Agreement, the Parties shall meet and discuss in good faith the appropriate compensation payable to Licensee, if any, in consideration for such license (“Termination License Compensation”).  In determining Termination License Compensation, relevant factors including but not limited to the value of the intellectual property involved, the jurisdictions in which any relevant Patents have been filed, whether Licensee is a sole or joint inventor and the nonexclusive nature of the license shall be considered.  If the Parties do not, within such sixty (60) day time period, agree upon the Termination License Compensation, then either Party may submit for resolution pursuant to subsection (ii) whether any Termination License Compensation should be paid, and if so, the amount of the Termination License Compensation (a “Termination License Dispute”).  

(ii)Any Termination License Dispute that remains unresolved after the discussions conducted pursuant to subsection (i), but no other issues arising under this Agreement, shall be submitted for resolution by expedited arbitration pursuant to this Article 13.2(d).  Any arbitration under this Article 13.2(d) shall be decided by a single arbitrator appointed pursuant to the Expedited Procedure Provisions of the Rules of Arbitration of the International Chamber of Commerce, irrespective of the amount in dispute.  The place and language of the arbitration shall be those provided for in Article 16.3 herein. In such expedited arbitration, the arbitrator shall select an independent expert with significant experience relating to the valuation of intellectual property licenses in the life sciences industry, at a senior executive level, to advise the arbitrator with respect to the subject matter of the dispute.  The Parties agree that the arbitrator shall have the power to resolve any disputes to be resolved pursuant to this Article 13.2(d) based on principles of fairness and equity.  [***].  Notwithstanding the foregoing, Licensor shall have the right to decline or terminate a license under one or more Licensee Inventions and Intellectual Property Rights therein by written notice to Licensee, in which case the foregoing license shall not include the declined or terminated Licensee Inventions and Intellectual Property Rights therein and Licensor shall not have any payment obligations with respect thereto.

(e)Assignment of Regulatory Filings and Marketing Approvals. Licensee shall assign (or cause to be assigned) to Licensor or its designee, [***] (or to the extent not so assignable, Licensee shall take all reasonable actions to make available to Licensor or its designee the benefits of) all Regulatory Filings for the Product in the Licensee Territory, including any such Regulatory Filings made or owned by its Affiliates and/or Sublicensees. In each case, unless otherwise required by any applicable Law or regulation or requested by Licensor, the foregoing assignment (or availability) shall be made within a period of time agreed upon and consistent with the Wind-Down Period. 

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(f)Return of Confidential Information. Within thirty (30) days after the end of the Wind-down Period upon request by Licensor, Licensee shall either return to Licensor or destroy all tangible items comprising, bearing or containing Confidential Information of Licensor, that is in Licensee’s possession, subject to Licensee’s right to keep one copy for archiving purposes. 

(g)Trademarks. 

(i)Effective upon the end of the Wind-down Period, Licensee shall cease to use all Trademarks of Licensor (including the Product Trademarks) in the Licensee Territory, and all rights granted to Licensee hereunder with respect to the Product in the Licensee Territory shall terminate. 

(ii)Effective upon the effective date of termination, Licensee agrees to assign on reasonable commercial terms to be agreed by the Parties all worldwide rights in and to any Product Trademarks, other than Product Trademarks of Licensor, specific to one or more Product that Licensee or any of its Affiliates used in connection with Product(s). It is understood that such assignment shall not include the name of Licensee or any of its Affiliates, nor the corporate logo, service mark, or trademark for Licensee or for any of its Affiliates as a corporate entity.

(iii)Sublicensees. Any contracts with Sublicensees in the Licensee Territory engaged by Licensee shall, at the request of Licensee in its discretion, be assigned to Licensor to the furthest extent possible.  Licensee shall use commercially reasonable efforts, and cause its Affiliates to use Commercially Reasonably Efforts, to waive any exclusive dealing obligations of such Third Party with respect to such Third Party agreement, and to provide to Licensor information relevant to the Third Party agreement and make introductions to such Third Party so that Licensor may enter into direct discussions with such Third Party to secure the relevant items or services.

(h)Miscellaneous. The grant by Licensee to Licensor of the rights set forth in Articles 13.2(a)(i), (d), (e) and (g)(ii) is conditioned upon the grant by Licensor of the indemnity set forth in Article 15.2 with respect to the Third Party Claims resulting from Licensor (or its designee’s) Development, registration, Manufacture and Commercialization of the Product in the Licensee Territory following termination of this Agreement.  

13.3Survival. Upon the expiration or termination of this Agreement, all rights and obligations of the Parties under this Agreement shall terminate except those which are expressly or by their nature set to survive termination as well as those described in the following Articles: 1, 2.2, 2.3(a), 2.4, 2.8, 7, 9, 10.1, 12.7, 13, 15 (solely to the extent Third Party Claims were incurred during the term of this Agreement), 17.2 through 17.8 (inclusive), 17.10 through 17.13 (inclusive).  

Article XIV

REPRESENTATIONS, WARRANTIES AND COVENANTS 

14.1Mutual Covenants, Representations and Warranties. Each Party covenants, represents and warrants to the other Party that, as of the Effective Date: 

(a)it is a corporation duly organized, validly existing and is in good standing under its Laws or incorporation, is qualified to do business and is in good standing as a foreign corporation in each jurisdiction in which the conduct of its business or the ownership of its properties requires such qualification and failure to have such would prevent such Party from performing its obligations under this Agreement;

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(b)this Agreement is a legal and valid obligation binding upon such Party and enforceable in accordance with its terms. The execution, delivery and performance of this Agreement by such Party has been duly authorized by all necessary corporate action and does not and will not: (i) require the consent or approval of such Party’s stockholders; (ii) to its knowledge, violate any Law, rule, regulation, order, writ, judgment, decree, determination or award of any court, governmental body or administrative or other agency having jurisdiction over it; nor (iii) conflict with, or constitute a default under, any agreement, instrument or understanding, oral or written, to which it is a party or by which it is bound;

(c)it, its subsidiaries, and its Affiliates are in compliance with, and at all times during the term of this Agreement shall remain in compliance with, all applicable antibribery or anticorruption Laws.  Neither such Party nor any of its subsidiaries, or Affiliates has, or will, authorize, offer, promise, or make payments or otherwise provide anything of value directly or indirectly to: (i) an executive, official, employee or agent of a government, governmental department, agency or instrumentality, (ii) a director, officer, employee or agent of a wholly or partially government-owned or controlled entity, (iii) a political party or official thereof, or candidate for political office, or (iv) an executive, official, employee or agent of a public international organization (e.g., the International Monetary Fund or the World Bank) (“Government Official”) for purposes of (A) (i) improperly influencing any act or decision of such Government Official in his or her official capacity, (ii) inducing such Government Official to do or omit to do any act in violation of the lawful duty of such Government Official, or (iii) securing any improper advantage; or (B) inducing such Government Official improperly to use his or her influence in order to assist the Company or any of its subsidiaries in obtaining or retaining business or to direct business to any person. Neither Party shall, during the term of this Agreement, provide anything of value to any person that may be considered a bribe, kickback, an illegal influence payment, or other illegal payment;

(d)all necessary consents, approvals and authorizations of all Regulatory Authorities, other Governmental Authorities and other persons or entities required to be obtained by it in order to enter into this Agreement have been obtained; and

(e)it is not subject to a corporate integrity agreement or equivalent thereof, or a comparable obligation to a Governmental Authority, in each case that is relevant to this Agreement or the Supply Agreement.

14.2Representations and Warranties of Licensor. Licensor represents, warrants to Licensee that, as of the Effective Date:  

(a)Licensor has the right and authority to grant the rights and licenses granted herein; 

(b)Licensor has not previously granted any right, license or interest in or to the Licensed Intellectual Property that would interfere with the exercise of the licenses granted under this Agreement; 

(c)As of the Effective Date, with the exception of proceedings with respect to Licensed Patents set forth in Schedule 14.2(c), there are (i) no actual, pending, or, to the Licensor’s knowledge, alleged, threatened, action, suits, claims, interference or governmental investigations involving the Product (including with respect to the Manufacturing of the Product), the Licensed Intellectual Property or the Product Trademarks by or against Licensor, or any of its Affiliates in the Licensee Territory, and (ii) to the Licensor’s knowledge, there is no circumstances that may lead to any such action, suit, claims, interference or investigations;

47

 

 

(d)Licensor has not brought a claim alleging an infringement by a Third Party of any of the Licensed Intellectual Property in the Licensee Territory, and to Licensor’s knowledge, as of the Effective Date, with the exception of proceedings with respect to Licensed Patents set forth in Schedule 14.2(d), there is no circumstances that may lead to any such claim; 

(e)To Licensor’s knowledge, as of the Effective Date, the Use of the Product does not infringe the Intellectual Property Rights of any Third Party and Licensor has not received any claim alleging such any infringement.  To Licensor’s knowledge, none of the Licensed Patents are invalid or unenforceable;

(f)the Licensed Patents in the Licensee Territory listed on EXHIBIT 1 constitute a true, accurate and complete list of all Patents in existence as of the Effective Date Controlled by Licensor in the Licensee Territory relating to the Product in the Licensee Territory, and Licensor Controls such Licensed Patents in the Field and in the Licensee Territory, free of security interest; 

(g)To Licensor’s knowledge, all individuals who participated in the invention of any of the inventions claimed in the Licensed Patents have made effective assignments of all ownership rights either pursuant to written agreement or by operation of applicable Law; 

(h)To Licensor’s knowledge, all application and registration fees that have become due in respect of the Licensed Patents listed on EXHIBIT 1 and the Product Trademarks listed on EXHIBIT 5 have been paid and all necessary documents and certificates have been filed with the relevant agencies for the purpose of registering such Licensed Patents and such Product Trademarks; 

(i)Licensor has taken reasonable precautions to preserve the confidentiality of the Licensed Technology; 

(j)All Data with respect to Product that was provided or is intended to be provided to a Regulatory Authority, as of the Effective Date, has been generated and provided in compliance with applicable Laws, including applicable with GLP, GCP and GMP, in all material respects;

(k)Licensor has disclosed or made available to Licensee in writing, on the electronic diligence datasite,  all copies of: (i) material study reports and Data from Clinical Studies or GLP preclinical studies of the Product in its possession that relate or is relevant to the Licensee Territory, and (ii) all material filings and correspondence between Licensor and its Affiliates, on the one hand, and any Regulatory Authority, on the other hand, relating to clinical or preclinical studies of the Product, in each case that are relevant to the rights granted to Licensee pursuant to this Agreement.  

(l)No information or documentation provided by Licensor to Licensee contain, any untrue or misleading statement of a material fact or to Licensor’s knowledge omit to state a material fact, with respect to the efficacy, side effects, formulation, stability, or preclinical or clinical testing or manufacturing of the Product;

(m)To Licensor’s knowledge, in the course of the Development of the Product, Licensor has not used any employee or consultant who has been debarred by any Regulatory Authority, or was the subject of debarment proceedings by a Regulatory Authority, and to Licensor’s knowledge, no such employees or consultants have been used by any Third Party contractor of Licensor in connection with the Development of the Product;

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(n)The documents containing Data and Licensed Technology disclosed or made available to Licensee by Licensor are true and accurate copies of such documents in Licensor’s possession; 

(o)Licensor has the right to grant to Licensee the right to refer to and use any data and technology that has been generated by the manufacturers of the Product engaged by Licensor or its Affiliates for the use and registration of the Product as provided for in this Agreement and the Supply Agreement. 

(p)With the exception of those proceedings relating to the Licensed Patents set forth in Schedule 14.2(p), Licensor is not engaged in any litigation, opposition or arbitration affecting or relating to the Product, excluding oppositions before Patent authorities.   

(q)To Licensor’s knowledge, Licensor and its Affiliates are in material compliance with each Material Agreement, and have performed all material obligations required to be performed by them to date under the Material Agreement, except such non-compliance would not have a material impact on Licensor.  To Licensor’s knowledge, neither Licensor nor its Affiliates are in material breach under the Material Agreement and, to the knowledge of Licensor, no other party to any Material Agreement is in material breach in any respect thereunder, in each case, except such breach would not have a material impact on Licensor.

14.3Representations and Warranties of Both Parties Related to Future Activities. Each Party represents, warrants to the other Party that: 

(a)to the extent material to Use of the Compounds and the Product in the Licensee Territory, such Party shall, and shall ensure all Third Parties that it engages with respect to activities directed to the Compounds and the Product pursuant to this Agreement shall, comply in all material respects with all applicable Laws with respect to the performance of activities and obligations under this Agreement and the Supply Agreement; 

(b)it will not knowingly utilize, in conducting Development, Manufacturing or Commercialization of the Product, any Person or entities that at such time are debarred by FDA, or that, at such time, are, to such Party’s knowledge, under investigation by FDA for debarment action pursuant to the provisions of the Generic Drug Enforcement Act of 1992 (21 U.S.C. § 335);

(c)all employees, officers, contractors, and consultants of such Party or its Affiliates performing activities in connection with this Agreement shall execute or have executed agreements requiring assignment to such Party of all right, title and interest in and to their inventions and discoveries invented or otherwise discovered or generated during the course of and as a result of such activities, whether or not patentable, if any, prior to commencing such activities;

(d)such Party currently has, and will maintain during the term of this Agreement, directly or through Affiliates or Third Party subcontractors (i) sufficient qualified and trained personnel and resources, and (ii) necessary financial and technical capacity to effectively fulfill its obligations related to the Product as contemplated in this Agreement; and

(e)each Party represents and warrants to the other Party that as of the Effective Date, other than the Product, such Party is not, directly or with or through an Affiliate or Third Party, Developing, Manufacturing or Commercializing in or for the Licensee Territory, any product that targets the HER-2 receptor and that is intended for use, or approved for use, for the Initial Indication, provided that Licensee shall give no representation as to the activities of Pierre Fabre Médicament Production, its contract manufacturing Affiliate. 

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14.4Certain Rights and Obligations under the Material Agreements. 

(a)To the extent that any Background Agreement does not, as of the Effective Date, allow upon any termination of such Background Agreement, for the licenses granted to Licensor and sublicensed to Licensee to continue on substantially the same terms as were granted to Licensor, then, where requested by Licensee, Licensor shall use reasonable efforts to enable Licensee to secure such a separate agreement between Licensee and the applicable Third Party to provide for the grant of such rights to  Licensee.  In particular, within [***] ([***]) Business Days of the Effective Date, Licensor shall [***].   

(b)To the extent that a Third Party is obligated to indemnify sublicensees of Licensor under a Material Agreement, and Licensee desires to assert a claim for indemnification, Licensor shall use reasonable efforts to cooperate with Licensee (at Licensee’ expense) to permit Licensee to assert such claim against such Third Party.   

(c)To the extent relating to the Product in the Licensee Territory, whenever Licensor receives any written report, notice or other communication from a Third Party with respect to the corresponding Material Agreement, Licensor shall promptly provide a copy of such report, notice or other communication to Licensee, in each case solely if such report, notice or communication would materially adversely affect the Product in the Licensee Territory or Licensee’s rights under such Material Agreement with respect to the Product in the Licensee Territory.   

(d)To the extent relating to the Product in the Licensee Territory, Licensor shall, if reasonably requested by Licensee and subject to obligations and limitations as provided under Third Party agreements, take reasonable efforts to exercise any of Licensor’s rights or enforce any material obligation of a Third Party, [***], under the applicable Material Agreement.  In addition, [***]. 

(e)To the extent relating to the Product in the Licensee Territory, Licensor shall not agree or consent to any substantive amendment, supplement or other modification to the Material Agreement or exercise any other right of agreement or consent thereunder, in each case to the extent that such amendment, supplement, modification, exercise or consent could adversely affect Licensee’s rights under this Agreement, unless Licensee shall have consented in writing to the same, which consent may not be unreasonably withheld or delayed (and which agreement or consent of Licensee shall be provided within [***] ([***]) Business Days after a request therefor if such amendment, supplement or other modification would not adversely affect Licensee’s rights under this Agreement). 

(f)Licensor shall not terminate any Material Agreement and shall not take or fail to take any action that would reasonably permit the Third Party to terminate, (either unilaterally or by mutual agreement with the applicable Third Party), or any right thereunder relating to the Product in the Licensee Territory, without the prior written consent of Licensee, which consent may not be unreasonably withheld or delayed. 

(g)Licensor shall not during the term of this Agreement (i) grant any lien, pledge, encumbrance, mortgage, or security interest (excluding any license rights or equivalents thereof) (collectively “Liens”) with respect to this Agreement or any of the Licensed Patents or Licensed Technology in the Licensee Territory or (ii) permit such a Lien, to attach to this Agreement or any of such rights, in each case if such Lien would conflict with the rights granted to Licensee hereunder. 

(h)Licensor shall at all times comply with the terms of the Material Agreements.  Licensor shall promptly notify Licensee of any actual or threatened breach of any Material Agreements of which Licensor becomes aware.  Without limiting the foregoing, within [***] ([***]) Business Days after Licensor’s receipt of any written notice, or otherwise becoming aware that such a notice may be 

50

 

 

forthcoming, relating to any alleged breach by Licensor under such Material Agreements, Licensor shall notify Licensee thereof, specifying the basis for the alleged breach, as set out in the notice or otherwise known to Licensor.  Without prejudice to any of Licensee’s other rights under the Agreement or other remedies available to it, Licensee shall have the right to take step to cure an actual breach of the Material Agreements or prevent a termination of the Material Agreements, [***]. [***]

(i)If any Intellectual Property Right becomes Controlled by Licensor after the Effective Date that is subject to the licenses granted to Licensee under this Agreement, Licensor shall not revise, terminate or enter into any Third Party agreement related to or involving such Intellectual Property Right on terms that will cause such Intellectual Property Right to be no longer Controlled by Licensor for purposes of this Agreement.

14.5Except as otherwise expressly set forth in this Agreement, neither Party makes any representation or extends any warranties of any kind either express or implied, including, but not limited to, warranties of merchantability, fitness for a particular purpose, noninfringement or validity of any Patents issued or pending.

Article XV

INDEMNIFICATION 

15.1Indemnification of Licensor. Licensee shall indemnify and hold harmless each of Licensor, its Affiliates and the directors, officers, shareholders and employees of such entities and the successors and assigns of any of the foregoing (the “Licensor Indemnitees”), from and against any and all liabilities, damages, penalties, fines, costs, expenses (including, reasonable attorneys’ fees and other expenses of litigation) (“Liabilities”) from any claims, actions, suits or proceedings brought by a Third Party (a “Third Party Claim”) incurred by any Licensor Indemnitee, arising from, or occurring as a result of: (a) the Development, Manufacturing, Commercialization or other Use of any Compounds and Product by Licensee, its Affiliates or Sublicensees in the Licensee Territory or otherwise pursuant to this Agreement, including any products liability claim arising therefrom; (b) any Clinical Studies sponsored by or on behalf of Licensee in the Licensee Territory (other than Post-Approval Marketing Studies sponsored by Licensor in the Licensee Territory in accordance with Article 4.1(b)), including any products liability claim arising therefrom, (c) the gross negligence or wrongful intentional acts or omissions of Licensee, its Affiliates, subcontractors or Sublicensees; (d) breach by Licensee of any representation, warranty, obligation or covenant as set forth in this Agreement, or (e) the practice by Licensee of the Licensee Technology outside the scope of the licenses granted to Licensee as set forth in this Agreement; except, in each case (a), (b), (c) and (d), to the extent such Third Party Claims arises from the circumstances for which Licensor shall indemnify Licensee Indemnities pursuant to Article 15.2. 

15.2Indemnification of Licensee. Licensor shall indemnify and hold harmless each of Licensee, its Affiliates and Sublicensees and the directors, officers and employees of Licensee, its Affiliates and Sublicensees and the successors and assigns of any of the foregoing (the “Licensee Indemnitees”), from and against any and all Liabilities from any Third Party Claims incurred by any Licensee Indemnitee, arising from, or occurring as a result of: (a) the Development, Manufacturing, Commercialization or other Use of any Compounds and Product by Licensor, its Affiliates or Sublicensees in the Licensor Territory, including any products liability claim arising therefrom (or following termination of this Agreement, anywhere in the world); (b) any Post-Approval Marketing Studies sponsored by Licensor in the Licensee Territory in accordance with Article 4.1(b), (c) the gross negligence or wrongful intentional acts or omissions of Licensor, its Affiliates, subcontractors or Sublicensees; (d) Clinical Studies sponsored by or on behalf of Licensor in the Licensee Territory, including any products liability claim arising therefrom, (d) breach by Licensor of any representation, warranty, obligation or covenant as set forth in this Agreement, or (e) the practice by Licensor of the intellectual property rights licensed to Licensor by Licensee outside the scope of the licenses granted to Licensor as set forth in this Agreement. 

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15.3Procedure. A Party that intends to claim indemnification under this Article 15.3 (the “Indemnitee”) shall promptly notify the other Party (the “Indemnitor”) in writing of any Third Party Claim, in respect of which the Indemnitee intends to claim such indemnification, and the Indemnitor shall have sole control of the defense and/or settlement, provided the Indemnitor may not settle the Third Party Claim without the Indemnitee’s prior written consent, which shall not be unreasonably withheld or delayed, in the event such settlement materially adversely impacts the Indemnitee’s rights or obligations, and further provided that the Indemnitor shall keep the Indemnitee regularly informed of the status of the defense of the Third Party Claim and shall take into consideration the Indemnitee’s reasonable comments thereon.  The Indemnitee shall have the right to participate (but not control) and be represented in any suit or action by advisory council of its selection and [***].  [***].  The failure to deliver written notice to the Indemnitor within a reasonable time after the commencement of any action with respect to a Third Party Claim, if prejudicial to its ability to defend such action, shall relieve such Indemnitor of any liability to the Indemnitee under this Article 15.3, but the omission to so deliver written notice to the Indemnitor shall not relieve the Indemnitor of any liability that it may have to any Indemnitee otherwise than under this Article 15.3.  The Indemnitee under this Article 15.3 shall cooperate fully with the Indemnitor and its legal representatives in the investigation of any action with respect to a Third Party Claim covered by this indemnification.

15.4Disclaimer of Liability for Consequential Damages. UNLESS EXPRESSLY PROVIDED HEREUNDER, IN NO EVENT SHALL EITHER PARTY OR ANY OF ITS RESPECTIVE AFFILIATES AND THEIR RESPECTIVE OFFICERS, DIRECTORS AND EMPLOYEES BE LIABLE UNDER THIS AGREEMENT FOR SPECIAL, INDIRECT, PUNITIVE, INCIDENTAL OR CONSEQUENTIAL DAMAGES SUFFERED BY THE OTHER PARTY UNDER THIS AGREEMENT, OF ANY KIND WHATEVER AND HOWEVER CAUSED, AND WHETHER BASED ON AN ACTION OR CLAIM IN CONTRACT, TORT (INCLUDING NEGLIGENCE), BREACH OF STATUTORY DUTY OR OTHERWISE, AND EVEN IF FORESEEABLE OR SUFFERED IN CIRCUMSTANCES WHERE A PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSSES. NOTWITHSTANDING THE FOREGOING, NOTHING IN THIS ARTICLE 15.4 IS INTENDED TO OR SHALL LIMIT OR RESTRICT THE AMOUNTS PAYABLE TO THIRD PARTIES UNDER THE INDEMNITIES PROVIDED PURSUANT TO ARTICLES 15.1 AND 15.2 ABOVE.

15.5During the term of the Agreement as set forth in Article 12.1 and thereafter for a period of [***] ([***]) years, each Party shall procure and maintain adequate insurance coverage with international reputable company(ies) or a program of self-insurance (which shall be of types and amounts sufficient to cover the liabilities hereunder, contingent or otherwise of such Party and its Affiliates). It is understood that such insurances shall not be construed to create a limit of either Party’s liability with respect to its indemnification obligations under this Article 15. Each Party shall provide the other Party with written evidence of such insurance upon request. Each Party shall provide the other Party with written notice at least [***] ([***]) days prior to the cancellation, non-renewal or material change in such insurance.

Article XVI

DISPUTE RESOLUTION

16.1Referral to Senior Executives. The Parties recognize that a dispute arising out of or in connection with this Agreement (“Dispute”) may from time to time arise during the term of this Agreement. Any such Dispute which cannot be resolved by good faith negotiations shall be referred, by written notice from either Party to the other, to the Senior Executives (or their respective designees) for resolution. The Senior Executives (or their respective designees) shall negotiate in good faith to resolve such Dispute through discussions promptly following such written notice. If the Senior Executives cannot resolve the Dispute within [***] ([***]) days of such written notice, or either Party concludes that the matter will not be so resolved, then, the provisions of Article 16.2 shall apply.  If the Parties should resolve such Dispute pursuant to the procedures in this Article 16.1, a memorandum setting forth their agreement will be prepared and signed by both Parties, if requested by either Party.

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16.2Mediation. If the Senior Executives (or their respective designees) cannot resolve the Dispute during the [***] ([***]) day period pursuant to Article 16.1, the Parties shall first refer the dispute to proceedings under the ICC Mediation Rules.  Such mediation shall take place in Paris, France and shall be attended on behalf of each Party for at least one session by a senior business person with authority to resolve the Dispute.

16.3Arbitration. Any Dispute not resolved under the procedures in Article 16.2 within [***] ([***]) days following the filing of a Request for Mediation or within such other period as the parties may agree in writing, such Dispute shall thereafter be finally settled under the Rules of Arbitration of the International Chamber of Commerce by three (3) arbitrators.  The President of the Tribunal shall be nominated by the two-party nominated arbitrators within [***] ([***]) days of the second arbitrator’s appointment.  The seat, or legal place, of arbitration shall be Paris, France. The language of the arbitration shall be English.  The final award shall be rendered within [***] ([***]) months of the constitution of the tribunal, unless the tribunal determines that the interest of justice requires that such limit be extended.  Except as may be required to confirm or enforce a final award, or as may be required by applicable Law, neither a Party nor an arbitrator may disclose the existence, content, or results of any arbitration hereunder without the prior written consent of both Parties. 

16.4Non-Disclosure of Communications with Internal Counsel. Notwithstanding any rights to the contrary under applicable procedural or substantive rules of Law, any communications exchanged between members of each Party’s respective legal department and directors, employees or agents in connection with any disputes, investigations, administrative or other proceedings, shall not be requested, produced or otherwise used, to the extent such communications would have been covered by legal privilege and not discloseable, had these communications been exchanged between such Party and its external attorneys. 

Article XVII

GENERAL PROVISIONS

17.1Force Majeure. If the performance of any part of this Agreement (except for any payment obligation under this Agreement) by either Party is prevented, restricted, interfered with or delayed by reason of any cause beyond the reasonable control of such Party (including, fire, flood, earthquake, tsunami, embargo, power shortage or failure, acts of war, insurrection, riot, terrorism, strike, lockout or other labor disturbance, acts of God or any acts, omissions or delays in acting of the other Party), the Party so affected shall, upon giving written notice to the other Party, be excused from such performance to the extent of such prevention, restriction, interference or delay; provided that the affected Party shall use its reasonable efforts to avoid or remove such causes of non-performance and shall continue performance with the utmost dispatch whenever such causes are removed. 

17.2Governing Law. This Agreement and all questions regarding its validity or interpretation, or the breach or performance of this Agreement, shall be governed by, and construed and enforced in accordance with, the laws of France, without reference to conflict of law principles.  The Parties hereby agree that the provisions of the United Nations Convention on Contracts for the International Sale of Goods shall not apply to this Agreement and are strictly excluded. 

17.3Waiver of Breach. The failure of either Party at any time or times to require performance of any provision hereof shall in no manner affect its rights at a later time to enforce the same. No waiver by either Party of any condition or term in any one or more instances shall be construed as a further or continuing waiver of such condition or term or of another condition or term.

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17.4Modification. No amendment or modification of any provision of this Agreement shall be effective unless in writing signed by both Parties hereto.  No provision of this Agreement shall be varied, contradicted or explained by any oral agreement, course of dealing or performance or any other matter not set forth in an agreement in writing and signed by both Parties hereto.

17.5Severability. In the event any provision of this Agreement should be held invalid, illegal, or unenforceable in any jurisdiction, the Parties shall negotiate in good faith a valid, legal and enforceable substitute provision that most nearly reflects the original intent of the Parties and all other provisions of this Agreement shall remain in full force and effect in such jurisdiction.  Such invalidity, illegality or unenforceability shall not affect the validity, legality or enforceability of such provision in any other jurisdiction.   

17.6Entire Agreement; Amendments. This Agreement (including the Exhibits attached hereto), together with the Pharmacovigilance Agreement, the Quality Agreement, and the Supply Agreement (in each case, when executed) constitute the entire agreement between the Parties relating to the subject matter hereof and supersede all prior and contemporaneous agreements, representations and/or understandings, including the Confidentiality Agreement between the Parties dated January 9, 2018 and amended on December 19, 2018.  No terms or provisions of this Agreement shall be varied or modified by any prior or subsequent statement, conduct or act of either of the Parties, except that the Parties may amend this Agreement by written instruments specifically referring to and executed in the same manner as this Agreement.

17.7Notices. Unless otherwise agreed by the Parties or specified in this Agreement, all communications between the Parties relating to, and all written documentation to be prepared and provided under, this Agreement shall be in the English language. Any notice required or permitted under this Agreement shall be in writing in the English language, and (a) delivered personally, (b) sent by air mail or express courier service providing evidence of receipt, postage pre-paid where applicable, or (c) by electronic transmission or facsimile (complete transmission confirmed and a copy promptly sent by another permissible method of providing notice described in paragraph (a) or (b) above), to the following addresses of the Parties (or such other address for a Party as may be specified by like notice):

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To Licensor:

Puma Biotechnology, Inc.

10880 Wilshire Blvd

Suite 2150

Los Angeles, CA 90024

Fax: [***]

Attention: [***]

 

 
	
To Licensee:

Pierre Fabre Medicament SAS

45 place Abel Gance

92100 Boulogne Billancourt, France

Attn: Chief Executive Officer

	
With a copy to (which shall
not constitute notice):

Latham & Watkins LLP
140 Scott Drive 
Menlo Park, CA 94025, USA
Attn: [***]

 
	
With a copy to (which shall
not constitute notice):

Pierre Fabre Medicament SAS

Parc Industiel La Chartreuse

81106 Castres, France

Attn: General Counsel

Any notice required or permitted to be given concerning this Agreement shall be effective upon receipt by the Party to whom it is addressed.

17.8Assignment. 

(a)Except as provided in Article 17.8(b), neither Party may assign or transfer this Agreement or any rights or obligations hereunder to a Third Party without the prior written consent of the other Party.

(b)A Party may assign this Agreement without the other Party’s consent (i) with respect to Licensor, to a Third Party that acquires substantially all of the business or assets of Licensor, or (ii) with respect to Licensee, to a Third Party that acquires all or substantially all of Licensee’s oncology business or assets, in each case (i) and (ii) whether by merger, acquisition or otherwise, provided that the acquiring party agrees in a writing delivered to the non-assigning Party to assume all of the rights and obligations of the assigning Party under this Agreement.   

(c)A Party shall have the right to assign this Agreement to an Affiliate, with the prior written consent of the other Party (which shall not be unreasonably withheld or delayed), provided that (i) the assigning Party guarantees the performance of this Agreement by such Affiliate, (ii) such Affiliate agrees in a writing delivered to the non-assigning Party to assume all of the rights and obligations of the assigning Party under this Agreement, and (iii) if the non-assigning Party reasonably believes such assignment could result in material adverse tax consequences to the non-assigning Party, the non-assigning Party shall have no obligation to consent to the proposed assignment.     

(d)Subject to the foregoing, this Agreement shall inure to the benefit of each Party, its successors and permitted assigns. Any assignment of this Agreement in contravention of this Article 17.8 shall be null and void.

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(e)Notwithstanding anything contrary in this Agreement, Licensor shall not assign, pledge or otherwise transfer its rights to receive some or all of the Milestone Payments and Royalties payable hereunder without Licensee’s prior written consent in its sole discretion.

17.9Performance. Unless expressly otherwise provided hereunder, each Party or its Affiliates may perform its obligations hereunder through its Affiliates or Subcontractors, provided that such Party shall have entered into a written agreement (a “Subcontract”) with its Subcontractors which shall be consistent with the terms and conditions of this Agreement, shall contain confidentiality and non-use provisions no less restrictive than those set forth in Article 9.  Additionally, to the extent that such Subcontractor shall be responsible for performance of any Development activities undertaken in accordance with this Agreement, then the applicable Subcontract shall contain a certification that such Subcontractor has not been debarred, and is not subject to debarment, pursuant to Section 306 of the United States Federal Food, Drug and Cosmetics Act (or similar Laws of any other country), and is not the subject of a conviction described in such section.  Notwithstanding the foregoing, the subcontracting Party (or Party whose Affiliate enters into a Subcontract) shall remain liable under this Agreement for the performance of all its obligations under this Agreement and shall be responsible for and liable for compliance by its Subcontractors with the applicable provisions of this Agreement. 

17.10No Partnership or Joint Venture. Nothing in this Agreement is intended, or shall be deemed, to establish a joint venture or partnership between Licensee and Licensor.  Neither Party to this Agreement shall have any express or implied right or authority to assume or create any obligations on behalf of, or in the name of, the other Party, or to bind the other Party to any contract, agreement or undertaking with any Third Party.

17.11Interpretation. The captions to the several Articles and Sections of this Agreement are not a part of this Agreement, but are included for convenience of reference and shall not affect its meaning or interpretation. In this Agreement: (a) the word “including” shall be deemed to be followed by the phrase “without limitation” or like expression; and (b) the singular shall include the plural and vice versa. Each accounting term used herein that is not specifically defined herein shall have the meaning given to it under generally accepted cost accounting principles, but only to the extent consistent with its usage and the other definitions in this Agreement. This Agreement shall not confer any benefits on any Third Parties and no Third Party may enforce any term of this Agreement.

17.12Compliance with Laws. Notwithstanding anything to the contrary contained herein, all obligations of Licensor and Licensee are subject to compliance with regulations of the European Union, or any other relevant country and such other Laws and regulations in effect in the European Union, or any other relevant country as may be applicable, such as but not limited to export, anti-corruption, Data Protection Law, anti-trust or competition laws, and to obtaining all necessary approvals required by the applicable agencies of the governments of the countries within the European Union, and any other relevant countries. Licensor and Licensee shall cooperate with each other and shall provide assistance to the other as reasonably necessary to obtain any required approvals.

17.13Counterparts; Other Matters. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Signatures to this Agreement delivered by facsimile or similar electronic transmission will be deemed to be binding as originals. This Agreement is established in the English language. Any translation in another language shall be deemed for convenience only and shall never prevail over the original English version.

 

[Page Signature Follows]

 

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IN WITNESS WHEREOF, the Parties have executed this License Agreement as of the Effective Date.

 

 

PUMA BIOTECHNOLOGY, INC.

 

 

 

BY: _______________________________

NAME: Alan Auerbach

TITLE: Chief Executive Officer and President

 

 

PIERRE FABRE MEDICAMENT SAS

 

 

 

BY: _______________________________

NAME: Frédéric DUCHESNE

TITLE: Chief Executive Officer and President

 

 

SCHEDULE 2.2 

[***]

 

 

 

 

 

 

 

SCHEDULE 14.2(c)

[***]

 

 

 

 

US-DOCS\107490705.1

 

 

Schedule 14.2(d)

[***]

 

 

US-DOCS\107490705.1

 

Schedule 14.2(p)

[***]

 

 

 

 

Schedule 14.4(a)

 

[***]

 

 

 

EXHIBIT 1

LICENSED PATENTS

[***]

 

 

 

EXHIBIT 2

TRANSITION PLAN

 

[***]

 

 

 

EXHIBIT 3

ONGOING CLINICAL TRIALS

[***]

 

 

 

EXHIBIT 4

POST-APPROVAL MARKETING STUDIES

 

[***]

 

 

 

 

 

EXHIBIT 5

PRODUCT TRADEMARKS AND DOMAIN NAMES

[***]

 

 

 

EXHIBIT 6

KEY SUPPLY TERMS

[***]

 

 

 

 

 

EXHIBIT 7

PRESS RELEASE

 

 

 

 

 

 
News Release
 

 

Puma Biotechnology and Pierre Fabre Enter into Exclusive 

License Agreement to Develop and Commercialize 

NERLYNX® (neratinib) in Europe

 

LOS ANGELES, Calif. and CASTRES, France,  March XX, 2019 – Puma Biotechnology, Inc. (Nasdaq: PBYI) and Pierre Fabre have entered into an exclusive license agreement under which Pierre Fabre will develop and commercialize NERLYNX® (neratinib) within Europe and part of Africa. In September 2018 the European Commission granted marketing authorization for NERLYNX® (neratinib) for the extended adjuvant treatment of adult patients with early stage hormone receptor positive HER2-overexpressed/amplified breast cancer and who are less than one year from the completion of prior adjuvant trastuzumab-based therapy.  

 

Pierre Fabre will have exclusive commercialization rights for NERLYNX in European countries excluding Russia and Ukraine, along with countries in North Africa and francophone countries of West Africa. Pierre Fabre will also be responsible of conducting additional clinical studies and leading regulatory activities in connection with the European Medicines Agency (EMA). 

 

Under the terms of the agreement, Puma will receive an upfront payment of $60 million, as well as additional regulatory and commercial milestone payments totaling up to $345 million.  In addition, Puma will receive significant double-digit royalties on NERLYNX sales throughout the territory covered by the license agreement between Puma and Pierre Fabre.

 

“Puma is committed to providing access to NERLYNX to patients around the world and soon physicians and patients in Europe will have commercial availability of NERLYNX,” stated Alan H. Auerbach, Chief Executive Officer and President of Puma. “Pierre Fabre has a robust commercial and medical oncology infrastructure that we hope will lead to rapid commercial access to NERLYNX.” 

 

“We are thrilled to provide this new therapy to patients with HER2-positive breast cancer throughout Europe,” said Frederic Duchesne, Chief Executive Officer, Pierre Fabre Pharmaceuticals. “Pierre Fabre has developed a strong expertise and presence in the breast cancer treatment and the addition of NERLYNX to our historical oncology portfolio will allow us to strengthen our commercial presence. We anticipate providing access to NERLYNX to patients throughout Europe in 2019 and 2020, starting with Germany.”

 

 

 

 

About HER2-Positive Breast Cancer 

 

Approximately 20% to 25% of breast cancer tumors over-express the HER2 protein. HER2-positive breast cancer is often more aggressive than other types of breast cancer, increasing the risk of disease progression and death. Although research has shown that trastuzumab can reduce the risk of early stage HER2-positive breast cancer returning after surgery, up to 25% of patients treated with trastuzumab experience recurrence. 

 

Important EU NERLYNX® (neratinib) Safety Information

 

All suspected adverse reactions should be reported in accordance with the national reporting system.

 

The adverse reactions described in this section were identified in the randomized Phase 3 clinical trial (n=2840). The most common adverse reactions of any grade were diarrhoea (93.6%), nausea (42.5%), fatigue (27.3%), vomiting (26.8%), abdominal pain (22.7%), rash (15.4%), decreased appetite (13.7%), abdominal pain upper (13.2%), stomatitis (11.2%), and muscle spasms (10.0%).

 

The most common Grade 3-4 adverse reactions were diarrhoea (Grade 3, 36.9% and Grade 4, 0.2%) and vomiting (Grade 3, 3.4% and Grade 4, 0.1%).

 

Adverse reactions reported as serious included diarrhoea (1.9%), vomiting (1.3%), dehydration (1.1%), nausea (0.5%), alanine aminotransferase increased (0.4%), aspartate aminotransferase increased (0.4%), abdominal pain (0.3%), fatigue (0.3%) and decreased appetite (0.2%).

 

For full European prescribing information, please refer to the NERLYNX (neratinib) Summary of Product Characteristics on the European Medicines Agency website

(http://www.ema.europa.eu/ema/).

 

Important Safety Information Regarding NERLYNX® (neratinib) U.S. Indication

 

NERLYNX® (neratinib) tablets, for oral use

 

INDICATIONS AND USAGE: NERLYNX is a kinase inhibitor indicated for the extended adjuvant treatment of adult patients with HER2 overexpressed/amplified breast cancer, to follow adjuvant trastuzumab-based therapy.

 

CONTRAINDICATIONS: None

 

WARNINGS AND PRECAUTIONS:

 

	
•
	
Diarrhea: Aggressively manage diarrhea occurring despite recommended prophylaxis with additional antidiarrheals, fluids, and electrolytes as clinically indicated. Withhold NERLYNX in patients experiencing severe and/or persistent diarrhea. Permanently discontinue NERLYNX in patients experiencing Grade 4 diarrhea or Grade≥ 2 diarrhea that occurs after maximal dose reduction.

 

 

 

 

	
•
	
Hepatotoxicity: Monitor liver function tests monthly for the first 3 months of treatment, then every 3 months while on treatment and as clinically indicated. Withhold NERLYNX in patients experiencing Grade 3 liver abnormalities and permanently discontinue NERLYNX inpatients experiencing Grade 4 liver abnormalities.

 

	
•
	
Embryo-Fetal Toxicity: NERLYNX can cause fetal harm. Advise patients of potential risk to a fetus and to use effective contraception.

 

ADVERSE REACTIONS: The most common adverse reactions (≥ 5%) were diarrhea, nausea, abdominal pain, fatigue, vomiting, rash, stomatitis, decreased appetite, muscle spasms, dyspepsia, AST or ALT increase, nail disorder, dry skin, abdominal distention, epistaxis, weight decreased and urinary tract infection.

 

To report SUSPECTED ADVERSE REACTIONS, contact Puma Biotechnology, Inc. at

1-844-NERLYNX (1-844-637-5969) and www.NERLYNX.com or FDA at 1-800-FDA-1088 or www.fda.gov/medwatch.

 

DRUG INTERACTIONS:

 

	
•
	
Gastric acid reducing agents:  Avoid concomitant use with proton pump inhibitors. When patients require gastric acid reducing agents, use an H2-receptor antagonist or antacid. Separate NERLYNX by at least 3 hours with antacids. Separate NERLYNX by at least 2 hours before or 10 hours after H2-receptor antagonists.  

	
•
	
Strong or moderate CYP3A4 inhibitors:  Avoid concomitant use.

	
•
	
Strong or moderate CYP3A4 inducers:  Avoid concomitant use.

	
•
	
P-glycoprotein (P-gp) substrates:  Monitor for adverse reactions of narrow therapeutic agents that are P-gp substrates when used concomitantly with NERLYNX.

 

USE IN SPECIFIC POPULATIONS:

 

∙Lactation: Advise women not to breastfeed.

 

Please see Full Prescribing Information<https://nerlynx.com/pdf/full-prescribing-information.pdf> for additional safety information.

 

About Puma Biotechnology 

 

Puma Biotechnology, Inc. is a biopharmaceutical company with a focus on the development and commercialization of innovative products to enhance cancer care. The Company in-licenses the global development and commercialization rights to three drug candidates — PB272 (neratinib, oral), PB272 (neratinib, intravenous) and PB357. Neratinib, oral was approved by the U.S. Food and Drug Administration in July 2017 for the extended adjuvant treatment of adult patients with early stage HER2-overexpressed/amplified breast cancer, following adjuvant trastuzumab-based therapy, and is marketed in the United States as NERLYNX® (neratinib) tablets. NERLYNX was granted marketing authorization by the European Commission in September 2018 for the extended adjuvant treatment of adult patients with early stage hormone receptor-positive HER2-overexpressed/amplified breast cancer and who are less than one year from completion of prior adjuvant trastuzumab-based therapy. NERLYNX is a registered trademark of Puma Biotechnology, Inc.  

 

 

 

 

Further information about Puma Biotechnology can be found at www.pumabiotechnology.com. 

 

About Oncology at Pierre Fabre

 

Pierre Fabre’s expertise in oncology is based on almost four decades of experience in the discovery, development and global marketing of innovative cancer drugs, including monoclonal antibodies and ADCs. Navelbine® has been one of the company’s major successes and is valuable in the treatment of breast cancer patients. The company conducts its R&D in two oncology centers, based in Saint-Julien-en-Genevois (near Geneva) and at the Oncopole campus in Toulouse. The Oncopole is officially recognized by the French government as a National Center of Excellence for cancer research. In 2015, Pierre Fabre entered into an agreement with the American biotech company, Array BioPharma, to codevelop two small molecules (kinase inhibitors), Braftovi® & Mektovi®. The primary indication (melanoma) was approved in September 2018 by EMA and marketing is already underway in Germany, the UK, the Netherlands, Austria, Norway and Denmark.

 

About Pierre Fabre

 

With a portfolio representing a continuum of activities spanning from prescription drugs and consumer healthcare products to dermo-cosmetics, Pierre Fabre is the 2nd largest dermo-cosmetics laboratory in the world, the 2nd largest private French pharmaceutical group and the market leader in France for products sold over the counter in pharmacies. Its portfolio includes several global brands and franchises among which Eau Thermale Avène, Klorane, Ducray, René Furterer, A-Derma, Galénic, Elancyl, Naturactive, Pierre Fabre Health Care, Pierre Fabre Oral Care, Pierre Fabre Dermatologie and Pierre Fabre Oncologie. 

In 2018, Pierre Fabre generated 2,3 billion euros in revenues, of which 63% came from its international business and 61% from its dermo-cosmetics division. Pierre Fabre, which has always been headquartered in the South-West of France, counts about 11,000 employees worldwide, owns subsidiaries and offices in 47 countries and enjoys distribution agreements in over 130 countries. In 2018, Pierre Fabre dedicated 187 million euros to R&D efforts, split between oncology, consumer healthcare, dermatology and dermo-cosmetics. 

Pierre Fabre is 86%-owned by the Pierre Fabre Foundation, a government-recognized public-interest foundation, and secondarily by its own employees through an international employee stock ownership plan.

The independent French certification group AFNOR audited in 2015 Pierre Fabre for its corporate social responsibility policy at the “exemplary” level, according to the ISO 26000 standard for CSR.

To find out more about Pierre Fabre, please go to www.pierre-fabre.com.  

 

Forward-Looking Statements

 

This press release contains forward-looking statements, including statements regarding the commercialization and commercial availability of NERLYNX® in European countries excluding Russia and Ukraine, along with countries in North Africa and francophone countries of West Africa; the registration and regulatory approval of NERLYNX in the region; and potential payments and royalties payable under the license agreement.. All forward-looking statements involve risks and uncertainties that could cause Puma’s actual results to differ materially from the anticipated results and 

 

 

 

expectations expressed in these forward-looking statements. These statements are based on current expectations, forecasts and assumptions, and actual outcomes and results could differ materially from these statements due to a number of factors, which include, but are not limited to, the risk factors disclosed in the periodic and current reports filed by Puma with the Securities and Exchange Commission from time to time, including Puma’s Annual Report on Form 10-K for the year ended December 31, 2018. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. Puma assumes no obligation to update these forward-looking statements, except as required by law.

 

Contact:

Alan H. Auerbach or Mariann Ohanesian, Puma Biotechnology, Inc., +1 424 248 6500 

info@pumabiotechnology.com   

ir@pumabiotechnology.com 

David Schull or Alex Fudukidis, Russo Partners, +1-212-845-4271
david.schull@russopartnersllc.com 

alex.fudukidis@russopartnersllc.com 

 

Valérie Roucoules, Pierre Fabre + 33 1 49 10 83 84 / + 33 6 20 88 61 65

valerie.roucoules@pierre-fabre.com

 

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EXHIBIT 8

TEMPLATE OF ROYALTY REPORTS

 

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