Document:

Exhibit
10.12

 

EXECUTIVE
EMPLOYMENT AGREEMENT

 

THIS EMPLOYMENT AGREEMENT (this “Agreement”) is made and entered into as of
the 7th day of November, 2007, by and between STATION
CASINOS, INC., a Nevada corporation, with its principal offices
located at 1505 South Pavilion Center Drive, Las Vegas, Nevada  89135 (the “Company”),
and WILLIAM W. WARNER (the “Executive”).

 

WHEREAS, the Company and the Executive are
parties to an Executive Employment Agreement dated as of May 20, 2003 (the “Former Agreement”); and

 

WHEREAS, the Executive has agreed to
continue his employment with the Company on the terms and conditions set forth
herein; and

 

WHEREAS, the parties to this Agreement
desire to replace the Former Agreement in its entirety with this Agreement, and
the Former Agreement shall no longer be of any force or effect;

 

NOW, THEREFORE, in consideration of the
premises and mutual covenants contained herein and for other good and valuable
consideration, the Company and the Executive (each individually a “Party” and together the “Parties”) agree as follows.

 

1.             DEFINITIONS. In addition to certain
terms defined elsewhere in this Agreement, the following terms shall have the
following respective meanings:

 

1.1           “Affiliate” shall mean any Person
controlling, controlled by or under common control with, the Company.

 

1.2           “Base Salary” shall mean the salary provided
for in Section 3.1 of this
Agreement, as the same may be increased from time to time thereunder.

 

1.3           “Board” shall mean the Board of Directors of
the Company.

 

1.4           “Cause” shall mean that the Executive:

 

(a)           has been convicted of
any felony;

 

(b)           has been found
unsuitable to hold a gaming license by a final non-appealable decision of the
Nevada Gaming Commission; or

 

(c)           in carrying out his
duties under this Agreement, has engaged in acts or omissions constituting
gross negligence or willful misconduct resulting, in either case, in material
economic harm to the Company.

 

1.5           “Change in Control” shall mean the
following:  (A) prior to the occurrence
of an Initial Public Offering (as defined in the LLC Agreement), the
consummation of any transaction (including, without limitation, any merger or
consolidation) as a result of which any “person” or “group” (in each case, as
such term is used in Section 13(d)(3) of the 

 

 

Exchange Act), other than
any Member of HoldCo LLC who is an Existing Equity Holder or Permitted
Transferee (as defined in the LLC Agreement) of such a Member of HoldCo LLC, or
an Affiliate thereof, becomes the “beneficial owner” (as such term is defined
in rule 13d-3 promulgated under the Exchange Act) of more than fifty percent
(50%) of the total issued and outstanding Class A Units and Class B Units of
HoldCo LLC; (B) after the occurrence of an Initial Public Offering, the
consummation of any transaction (including, without limitation, any merger or
consolidation) as a result of which any person or group, other than a Member of
HoldCo LLC who is an Existing Equity Holder or Permitted Transferee of such a
Member of HoldCo LLC, or any Affiliate thereof, becomes the beneficial owner of
more than thirty-five percent (35%) of the total issued and outstanding shares
of Voting Stock of the IPO Corporation; or (C) the sale, lease, transfer,
conveyance or other disposition (other than by way of merger or consolidation)
in one or a series of related transactions, of more than fifty percent (50%)
(as measured by fair market value at the time of transfer) of the assets of the
Company to any person (other than the Company or a Company subsidiary), other
than (x) any Member of HoldCo LLC on the date hereof or Permitted Transferee of
such a Member of HoldCo LLC or Affiliate thereof or (y) as part of any
financing transaction engaged in by the Company or a Company subsidiary. In
addition, no Change of Control shall be deemed to have occurred as a result of
any reorganization of or similar transaction engaged in by the Company or any
subsidiary of the Company (including in respect of an Initial Public Offering).
The Executive acknowledges and agrees that the consummation of the transactions
contemplated by that Agreement and Plan of Merger dated February 23, 2007, and
amended as of May 4, 2007, among HoldCo LLC, FCP Acquisition Sub and the
Company shall not constitute a “Change in Control” hereunder.

 

1.6           “Code” shall mean the Internal Revenue Code
of 1986, as amended.

 

1.7           “Company Property” shall mean all items and
materials provided by the Company to the Executive, or to which the Executive
has access, in the course of his employment, including, without limitation, all
files, records, documents, drawings, specifications, memoranda, notes, reports,
manuals, equipment, computer disks, videotapes, drawings, blueprints and other
documents and similar items relating to the Company, its Affiliates or their
respective customers, whether prepared by the Executive or others, and any and
all copies, abstracts and summaries thereof.

 

1.8           “Competing Business” shall mean any Person
engaged in the gaming industry that directly or through an affiliate or
subsidiary conducts its business within the Restricted Area.

 

1.9           “Confidential Information” shall mean all
nonpublic and/or proprietary information respecting the business of the Company
or any Affiliate, including, without limitation, its products, programs,
projects, promotions, marketing plans and strategies, business plans or
practices, business operations, employees, research and development,
intellectual property, software, databases, trademarks, pricing information and
accounting and financing data. Confidential Information also includes
information concerning the Company’s or any Affiliate’s customers, such as
their identity, address, preferences, playing patterns and ratings or any other
information kept by the Company or any Affiliate concerning its customers
whether or not such information has been reduced to documentary form.
Confidential Information does not 

 

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include information that
is, or becomes, available to the public unless such availability occurs through
an unauthorized act on the part of the Executive.

 

1.10         “Deferred Compensation Plan for Executives”
shall mean the Company’s Deferred Compensation Plan for  Executives, effective as of November 30,
1994, as the same may be amended from time to time.

 

1.11         “Disability” shall mean a physical or mental
incapacity that prevents the Executive from performing the essential functions
of his position with the Company for a period of ninety (90) days as determined
(a) in accordance with any long-term disability plan provided by the Company of
which the Executive is a participant, or (b) by the following procedure:  The Executive agrees to submit to medical
examinations by a licensed healthcare professional selected by the Company, in
its sole discretion, to determine whether a Disability exists. In addition, the
Executive may submit to the Company documentation of a Disability, or lack
thereof, from a licensed healthcare professional of his choice. Following a
determination of a Disability or lack of Disability by the Company’s or the
Executive’s licensed healthcare professional, the other Party may submit
subsequent documentation relating to the existence of a Disability from a
licensed healthcare professional selected by such other Party. In the event
that the medical opinions of such licensed healthcare professionals conflict,
such licensed healthcare professionals shall appoint a third licensed
healthcare professional to examine the Executive, and the opinion of such third
licensed healthcare professional shall be dispositive.

 

1.12         “ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended.

 

1.13         “Existing Equity Holders” shall mean Frank
J. Fertitta III, Blake L. Sartini, Delise F. Sartini, Lorenzo J. Fertitta, the
Executive, Scott M Nielson and Richard J. Haskins, and their executors,
administrators or the legal representatives of their estates, their heirs,
distributees and beneficiaries, and any trust as to which any of the foregoing
is a settlor or co-settlor and any corporation, partnership or other entity
which is an affiliate of any of the foregoing, and any lineal descendants of
such persons (but only to the extent that the beneficial ownership of the Class
A and/or Class B Units of HoldCo LLC held by such lineal descendants was
directly received by gift, trust or sale from any such person).

 

1.14         “Good Reason,” as used in Section 7.2,
shall mean and exist if there has been a Change in Control and, thereafter,
without the Executive’s prior written consent, one or more of the following
events occurs:

 

(a)           the Executive is
assigned duties or responsibilities that are inconsistent, in any significant
respect, with the position of a senior manager;

 

(b)           the Executive is
required to relocate from, or maintain his principal office outside of, Clark
County, Nevada;

 

(c)           the Executive’s Base
Salary is decreased by the Company;

 

(d)           the Executive is
excluded from participation in any employee benefit or short-term incentive
plan or program offered to other similarly situated 

 

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executives of the Company
or his benefits under such plans or programs or opportunities under any
employee benefit or incentive plan or program of the Company is or are
materially reduced;

 

(e)           the Company fails to
pay the Executive any deferred payments that have become payable under the
Deferred Compensation Plan for Executives or other bonus or incentive plans;

 

(f)            the  Company fails to reimburse the Executive for
business expenses in accordance with the Company’s policies, procedures or
practices;

 

(g)           the Company fails to
agree to or to actually indemnify the Executive for his actions and/or
inactions, as either a director or an officer of the Company, in accordance
with Section 10, and/or the Company fails to maintain reasonably sufficient
levels of directors’ and officers’ liability insurance coverage for the
Executive when such insurance is available; or

 

(h)           the Company fails to
obtain a written agreement from any successor or assign of the Company to
assume the obligations under this Agreement upon a Change in Control.

 

For purposes of this
Agreement, a determination by the Executive that the Executive has “Good
Reason” shall be final and binding on the Company and the Executive absent a
showing of bad faith on the part of the Executive.

 

1.15         “HoldCo LLC” shall mean Fertitta Colony
Partners LLC.

 

1.16         “IPO Corporation” shall mean the Company
(or Affiliate thereof) which is the issuer of the equity interests offered and
sold in the Initial Public Offering.

 

1.17         “LLC Agreement” shall mean that Second
Amended and Restated Operating Agreement of Fertitta Colony Partners LLC, dated
of even date herewith, as the same may be amended from time to time in
accordance with the terms thereof.

 

1.18         “Long-Term Stay-On Agreement” shall mean
that Long-Term Stay-On Performance Incentive Agreement dated April 1, 2002,
between the Company and the Executive.

 

1.19         “Person” shall mean any individual, firm,
partnership, association, trust, company, corporation or other entity.

 

1.20         “Pro Rata Annual Bonus” shall mean the
amount of Annual Bonus, multiplied by a fraction, the numerator of which is the
number of days in such year during which the Executive was actually employed by
the Company and the denominator of which is 365.

 

1.21         “Restricted Area” shall mean (a) the City
of Las Vegas, Nevada, and the area within a forty-five (45) mile radius of that
city, and (b) any area in or within a one hundred fifty (150) mile radius of
any other location in which the Company or any of its Affiliates are directly or
indirectly engaged in the development, ownership, operation or management of
any 

 

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gaming activities or is
actively pursuing any such activities; provided, however, that in
the event the Executive voluntarily terminates this Agreement pursuant to Sections
6.3, 7.2 or 7.3, the Restricted Area shall (a) after the first twelve (12)
months of the Restriction Period, exclude the Las Vegas Strip (which is defined
as that area bounded by Koval Lane and straight extensions thereof on the East,
Charleston Boulevard on the North, I-15 on the West, and Sunset Road on the
South) and (b) after a Change in Control, exclude Downtown Las Vegas (which is
defined as that area bounded by Eastern Avenue and straight extensions thereof
on the East, I-515 (U.S. Highway 93/95) on the North, I-15 on the West, and
Charleston Boulevard on the South).

 

1.22         “Restriction Period” shall mean the period
ending twenty-four (24) months after the termination or expiration of the Term
of Employment, regardless of the reason for such termination or expiration.

 

1.23         “Special Long-Term Disability Plan” shall
mean the Company’s Special Long-Term Disability Plan, effective as of November
30, 1994, as the same may be amended from time to time.

 

1.24         “Sponsor Equity Holder” shall mean the
affiliates of Colony Capital, LLC, including FC Investor, LLC and its
affiliated funds and controlled accounts.

 

1.25         “Supplemental Management Retirement Plan”
shall mean the Company’s Supplemental Management Retirement Plan, effective as
of November 30, 1994, as the same may be amended from time to time.

 

1.26         “Target Annual Bonus” shall mean an amount
that is no less than one hundred percent (100%) of the Executive’s then current
Base Salary.

 

1.27         “Term of Employment” shall mean the period
specified in Section 2.2.

 

1.28         “Voting Stock” shall mean capital stock or
other equity interests of any class or classes whose holders are entitled under
ordinary circumstances (irrespective of whether at the time stock or other
equity interests of any other class or classes shall have or might have voting
power by reason of the happening of any contingency) to vote for the election
of a majority of the directors, managers, trustees or other governing body of
such Person.

 

2.             TERM OF EMPLOYMENT, POSITION AND RESPONSIBILITIES.

 

2.1           Employment  Accepted. The Company hereby employs the
Executive, and the Executive hereby accepts employment with the Company, for
the Term of Employment, in the position and with the responsibilities set forth
in Section 2.3 and upon such other
terms and conditions as are stated in this Agreement.

 

2.2           Term of Employment.
The initial Term of Employment shall commence upon the date of this
Agreement and, unless earlier terminated pursuant to the provisions of this
Agreement, shall terminate upon the close of business on the day immediately
preceding the fifth anniversary of the date of this Agreement; provided,
however, that the initial Term of Employment shall automatically be
extended for successive five-year periods if neither Party has advised the
other in writing in accordance with Section 14 at least six (6) months
prior to the end 

 

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of the then current Term
of Employment that such Term of Employment will not be extended for an
additional five year period. In the event that such notice is given, (i) the
Executive’s employment shall terminate upon the close of business on the day
immediately preceding the expiration of the then current Term of Employment,
and (ii) the Executive shall not be entitled to any additional compensation
hereunder after the expiration thereof, but such termination of employment
shall not otherwise affect accrued but unpaid compensation or benefits provided
under this Agreement or pursuant to any Company plan or program.

 

2.3           Responsibilities. During the Term of
Employment, the Executive shall be employed as Executive Vice President and
Chief Operating Officer, or in such other capacity as the Company may direct,
and shall have such responsibilities as the Company may direct from time to
time. During the Term of Employment, the Executive shall devote his full time
and attention to the business and affairs of the Company and shall use his best
efforts, skills and abilities to promote the Company’s interests. Anything
herein to the contrary notwithstanding, the Executive shall not be precluded
from engaging in charitable and community affairs and managing his personal
investments. It is expressly understood and agreed that, to the extent any such
activities have been conducted by the Executive prior to the date of this
Agreement and disclosed to the Board, the continued conduct of such activities
(or activities similar in nature and scope thereto) after the date of this
Agreement shall be deemed not to interfere with the Executive’s duties and
obligations to the Company under this Agreement. The Executive also may serve
as a member of the board of directors of other corporations, subject to the
approval of a majority of the Board, which approval shall not be unreasonably
withheld or delayed.

 

3.             COMPENSATION.

 

3.1           Base Salary. During the Term of
Employment, the Executive shall be entitled to receive a base salary (the “Base Salary”) payable no less frequently
than in equal bi-weekly installments at an annualized rate of no less than
$1,200,000. The Base Salary shall be reviewed annually for increase (but not
decrease) in the discretion of the Board. In conducting any such annual review,
the Board shall take into account any change in the Executive’s
responsibilities, increases in the compensation of other executives of the
Company or any Affiliate (or any competitor(s) of either or both), the
performance of the Executive and/or other pertinent factors. Such increased
Base Salary shall then constitute the Executive’s “Base Salary” for purposes of
this Agreement.

 

3.2           Annual Bonus. The Company may pay the
Executive an annual bonus (the “Annual Bonus”)
for each calendar year ending during the Term of Employment in an amount that
will be determined by the Board based on the Executive’s performance. Any
Annual Bonus that may be awarded to the Executive shall be paid at the same
time as annual bonuses are paid to other senior officers of the Company, and in
any event no later than March 1 of the year following the calendar year in
which such bonus is earned, unless the Executive has elected to defer receipt
of all or part of the bonus amounts to which he is entitled in respect of any
such calendar year in accordance with the terms and provisions of any deferred
compensation program maintained by the Company.

 

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3.3           Stay-On Incentives. The Executive shall
be eligible to receive a long-term stay-on performance incentive payment
pursuant to the terms of the Long-Term Stay-On Agreement.

 

3.4           Deferred Compensation. The Executive
shall be eligible to participate in the Company’s Deferred Compensation Plan
for Executives, and any other deferred compensation plans that the Company may
adopt for executives, pursuant to the terms of the plans.

 

4.             EMPLOYEE BENEFIT PROGRAMS.

 

4.1           Pension and Welfare Benefit Plans. During the Term of Employment, the
Executive shall be entitled to participate in all employee benefit programs
made available to the Company’s executives or salaried employees generally, as
such programs may be in effect from time to time, including, without
limitation, pension and other retirement plans, profit sharing plans, group
life insurance, group health insurance, accidental death and dismemberment insurance,
long-term disability, sick leave (including salary continuation arrangements),
vacations, holidays and other employee benefit programs sponsored by the
Company.

 

4.2           Additional Pension and Welfare Benefits.
In addition to the foregoing, the Company shall provide the Executive with the
following benefits:

 

(a)           Executive Group Health
Insurance Coverage pursuant to such other plan or plans as the Company may
select, and which shall be fully paid for by the Company;

 

(b)           full salary
continuation during the first ninety (90) days of any physical or mental
incapacity that prevents the Executive from performing his duties and, for any
Disability that continues thereafter, benefits pursuant to the Company’s
Special Long-Term Disability Plan and any other long-term disability benefits
pursuant to any other disability plan of which the Executive is a participant;

 

(c)           an annual supplemental
retirement benefit as set forth in the Supplemental Management Retirement Plan,
in addition to any other benefit pursuant to any other retirement plan under
which the Executive is covered; provided, however, that the
Supplemental Management Retirement Plan may not be amended or modified in any
respect without the prior written consent of the Executive; and

 

(d)           term life insurance
coverage, through individual and/or group policies, in an aggregate amount of
not less than $4.0 million.

 

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5.             BUSINESS EXPENSE REIMBURSEMENT AND PERQUISITES.

 

5.1           Expense Reimbursement. During the Term
of Employment, the Executive shall be entitled to receive reimbursement by the
Company for all reasonable out-of-pocket expenses incurred by him in performing
services under this Agreement, subject to providing the proper documentation of
said expenses.

 

5.2           Perquisites. During the
Term of Employment, the Executive shall also be entitled to any of the
Company’s executive perquisites in accordance with the terms and provisions of
the applicable policies, including, without limitation:

 

(a)           vacation of four weeks
per year;

 

(b)           payment or
reimbursement of the cost of an annual physical examination;

 

(c)           payment or
reimbursement of initiation fees and annual membership fees and assessments for
a country club, a luncheon club and a physical fitness program of the
Executive’s choice; and

 

(d)           payment or
reimbursement of fees and expenses, up to a maximum amount of $2500.00,
incurred in connection with having this Agreement reviewed by legal counsel
prior to execution.

 

6.             TERMINATION OF EMPLOYMENT.

 

6.1           Termination Due to Death or Disability. The
Executive’s employment shall be terminated immediately in the event of his
death or Disability. In the event of a termination due to the Executive’s death
or Disability, the Executive or his estate, as the case may be, shall be
entitled, in lieu of any other compensation whatsoever, to:

 

(a)           Base Salary at the rate
in effect at the time of his termination until the date of death or Disability;

 

(b)           any Annual Bonus
awarded but not yet paid;

 

(c)           a Pro Rata Annual Bonus
for the fiscal year in which death or Disability occurs;

 

(d)           immediate vesting of
any deferred compensation or bonuses, including interest or other credits on
the deferred amounts, to the extent provided in the plans or programs providing
for deferral;

 

(e)           reimbursement of
expenses incurred but not paid prior to such termination of employment; and

 

(f)            such rights to other
benefits as may be provided in applicable plans and programs of the Company,
including, without limitation, applicable 

 

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employee benefit plans
and programs, according to the terms and provisions of such plans and programs.

 

6.2           Termination by the Company for Cause. The Company may terminate the
Executive’s employment for Cause at any time during the Term of Employment by
giving written notice to the Executive. In the event of a termination for
Cause, the Executive shall be entitled, in lieu of any other compensation and
benefits whatsoever, to:

 

(a)           Base Salary at the rate
in effect at the time of his termination through the date of termination of
employment;

 

(b)           any Annual Bonus
awarded but not yet paid;

 

(c)           immediate vesting of
any deferred compensation or bonuses, including interest or other credits on
the deferred amounts to the extent provided in the plans or programs providing
for deferral;

 

(d)           reimbursement for
expenses incurred but not paid prior to such termination of employment; and

 

(e)           such rights to other
benefits as may be provided in applicable plans and programs of the Company,
including, without limitation, applicable employee benefit plans and programs,
according to the terms and conditions of such plans and programs.

 

Notwithstanding anything
to the contrary in this Section 6.2, if the Executive’s employment is
terminated for Cause (i) due to his having been formally charged pursuant to Section
1.4(a) but thereafter said charges are dismissed or the Executive is
acquitted, or (ii) due to his having been convicted pursuant to Section
1.4(a) but said conviction is subsequently overturned on appeal and he is
not required to submit to re-trial within six (6) months thereafter, the
Company shall have the option of reinstating the Executive with payment of all
base salary payments that would have been paid to him had his employment not
been terminated and restoration of all benefits provided for pursuant to Section 4,
or making a payment to him of an amount equal to three times one hundred sixty
percent (160%) of the Executive’s Base Salary at the rate in effect at the time
of his termination.

 

6.3           Termination by the Executive. The
Executive may terminate his employment on his own initiative for any reason
prior to a Change in Control upon thirty (30) days prior written notice to the
Company. Such termination shall have the same consequences as a termination for
Cause under Section 6.2.

 

6.4           Termination by the Company Without Cause. Notwithstanding any other provision
of this Agreement, the Company may terminate the Executive’s employment without
Cause, other than due to death or Disability, at any time during the Term of
Employment by giving written notice to the Executive. In the event that the
Company terminates the Executive’s employment without Cause prior to a Change
in Control, the Executive shall be entitled, in lieu of any other compensation
and benefits whatsoever, to:

 

9

 

(a)           an amount equal to
three times one hundred sixty percent (160%) of the Executive’s Base Salary at
the rate in effect at the time of his termination, one-third of which shall be
paid in a lump sum upon satisfaction of the conditions set forth in Section
8.3, and the other two-thirds of which shall be paid out in equal bi-weekly
installments for the duration of the Restriction Period;

 

(b)           any Annual Bonus
awarded but not yet paid and a Pro Rata Annual Bonus for the fiscal year in
which such termination of employment occurs;

 

(c)           immediate vesting of
any deferred compensation or bonuses, including interest or other credits on
the deferred amounts, to the extent provided in the plans or programs providing
for deferral;

 

(d)           exercise, within one
hundred eighty (180) days, all vested stock options, phantom stock units, stock
appreciation rights and other exercisable stock-based or performance-based
interests, and shall forfeit all stock options, phantom stock units, stock
appreciation rights and other exercisable stock-based or performance-based
interests that have not vested;

 

(e)           reimbursement for
expenses incurred but not paid prior to such termination of employment; and

 

(f)            continuation of the
Executive’s medical insurance, at the Company’s expense, for thirty-six (36)
months following such termination or, at the Company’s option, payment to the
Executive of the economic equivalent thereof.

 

6.5           Termination Due to Expiration of the Term of
Employment. If either Party elects not to extend the initial
Term of Employment or any successive Term of Employment, the Executive shall
not be entitled to any additional compensation after the expiration thereof,
but such termination of employment shall not otherwise affect accrued but
unpaid compensation or benefits provided under this Agreement or pursuant to
any Company plan or program.

 

7.             CHANGE IN CONTROL.

 

7.1           Change in Control. Immediately upon a
Change in Control, in addition to any other compensation or benefits payable
pursuant to this Agreement or otherwise, the Executive shall be entitled to
immediate vesting of all restricted stock, stock options, phantom stock units,
stock appreciation rights and similar stock-based or performance-based
interests.

 

7.2           Termination by the Company Without Cause or by the
Executive for Good Reason After a Change in Control. If within
five years following a Change in Control, the Executive’s employment is
terminated by the Company without Cause or by the Executive for Good Reason,
the Executive shall be entitled, in addition to any compensation and benefits
provided pursuant to Section 7.1, but in lieu of any other compensation
and benefits whatsoever, to:

 

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(a)           a lump sum payment
equal to the greater of (i) three times one hundred sixty percent (160%) of the
Executive’s Base Salary at the time of the Change in Control or (ii) three
times one hundred sixty percent (160%) of the Executive’s Base Salary at the
time of the termination of his employment;

 

(b)           a Pro Rata Annual Bonus
for the fiscal year in which such termination of employment occurs;

 

(c)           any deferred bonus,
including interest or other credits on the deferred amounts to the extent
provided in the plans or programs providing for deferral;

 

(d)           exercise, within one
hundred eighty (180) days, all vested stock options, phantom stock units, stock
appreciation rights and other exercisable stock-based or performance-based interests;

 

(e)           immediate vesting and
pay out of all amounts set forth in the Long-Term Stay-On Agreement as if the
Executive had fully satisfied all of the terms and conditions thereof;

 

(f)            immediate vesting of
the Executive’s supplemental retirement benefit as set forth in the
Supplemental Management Retirement Plan;

 

(g)           (i) continued funding
of the Executive’s term life insurance policy as if the Executive were employed
by the Company through the maturity date of such policy or payment in full of
all premium obligations under such policy, or (ii) at the Executive’s option, a
lump-sum payment to the Executive of the economic equivalent thereof, as if the
Executive were employed by the Company through the maturity date of such
policy; and

 

(h)           (i) continuation of the
Executive’s medical insurance, at the Company’s expense, for thirty-six (36)
months following such termination, or (ii) at the Executive’s option, a
lump-sum payment to the Executive of the economic equivalent thereof.

 

7.3           Termination by Executive without Good Reason After a
Change in Control. If the Executive terminates his employment
without Good Reason within ninety (90) days following the first anniversary of
a Change in Control, the Executive shall be entitled, in addition to any
compensation and benefits provided pursuant to Section 7.1, but in lieu
of any other compensation and benefits whatsoever, to:

 

(a)           a lump sum amount equal
to the greater of (i) three times one hundred sixty percent (160%) of the
Executive’s Base Salary at the time of the Change in Control or (ii) three
times one hundred sixty percent (160%) of the Executive’s Base Salary at the
time of the termination of his employment;

 

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(b)           a Pro Rata Annual Bonus
for the fiscal year in which such termination of employment occurs;

 

(c)           any deferred bonus,
including interest or other credits on the deferred amounts to the extent
provided in the plans or programs providing for deferral;

 

(d)           exercise, within one
hundred eighty (180) days, all vested stock options, phantom stock units, stock
appreciation rights and other exercisable stock-based or performance-based
interests;

 

(e)           immediate vesting of
the Executive’s supplemental retirement benefit as set forth in the
Supplemental Management Retirement Plan;

 

(f)            (i) continued funding
of the Executive’s term life insurance policy as if the Executive were employed
by the Company through the maturity date of such policy or payment in full of
all premium obligations under such policy, or (ii) at the Executive’s option, a
lump-sum payment to the Executive of the economic equivalent thereof, as if the
Executive were employed by the Company through the maturity date of such
policy; and

 

(g)           (i) continuation of the
Executive’s medical insurance, at the Company’s expense, for thirty-six (36)
months following such termination, or (ii) at the Executive’s option, a
lump-sum payment to the Executive of the economic equivalent thereof.

 

7.4           Termination for Other Reasons After a Change in
Control. If the Executive’s employment is terminated by the
Company after a Change in Control for any reason not otherwise provided for by Section
7.2 or Section 7.3, his rights shall be determined in accordance
with the applicable subsection of Section 6.

 

8.             CONDITIONS TO PAYMENTS.

 

8.1           Timing of Payments. Unless otherwise
provided herein, any payments to which the Executive shall be entitled under Sections 6
and 7 shall be payable upon the satisfaction of the conditions set forth in
Section 8.3.

 

8.2           No Mitigation; No Offset. In the event
of any termination of employment under Sections 6 or 7, the Executive
shall be under no obligation to seek other employment and there shall be no
offset against amounts due to the Executive on account of any remuneration
attributable to any subsequent employment that the Executive may obtain.
Notwithstanding any contrary provision contained herein, in the event of any
termination of employment of the Executive, the exclusive remedies available to
the Executive shall be the amounts due under Sections 6 or 7, which are
in the nature of severance payments, or liquidated damages, or both, and are
not in the nature of a penalty. In the event of a termination of this
Agreement, neither Party shall publish in any way or make any negative comment
or statement about the other Party or concerning the reasons for such
termination. The provisions of this Section 8.2 shall survive the
expiration or earlier termination of this Agreement.

 

12

 

8.3           General Release. No payments or
benefits payable to the Executive upon the termination of his employment
pursuant to Sections 6 or 7 shall be made to the Executive unless and
until he executes a general release substantially in the form annexed to this
Agreement as Exhibit A and such general release becomes effective pursuant to
its terms.

 

8.4           Compliance with the Agreement. No
payments or benefits payable to the Executive upon the termination of his
employment pursuant to Sections 6 or 7 shall be made to the Executive if
he fails to comply with all of the terms and conditions of this Agreement,
including, without limitation, Sections 11 and 12.

 

8.5           Continuing Obligations of Executive. No
act or omission by the Executive in breach of this Agreement, including, without
limitation his failure to execute the general release and the resulting
forfeiture of termination payments, shall be deemed to permit the Executive to
forego or waive such payments in order to avoid his obligations under Section 11.

 

9.             SPECIAL REIMBURSEMENT.

 

9.1           If any payment or
benefit paid or payable, or received or to be received, by or on behalf of the
Executive , whether any such payments or benefits are pursuant to the terms of
this Agreement or any other plan, program, arrangement or agreement of or with
the Company, any Affiliate, any Person, or otherwise (the “Total Payments”), will or would be subject
to the excise tax imposed under Section 4999 of the Code (the “Excise Tax”), the Company shall pay to the
Executive an additional amount (the “Gross-Up
Payment”) such that, after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes)
imposed upon or in respect of the Total Payments and the Gross-Up Payments,
including, without limitation, any income taxes (and any interest and penalties
imposed with respect thereto) and any Excise Tax imposed thereon, the Executive
retains an amount of the Gross-Up Payment equal to the Excise Tax imposed upon
the Total Payments.

 

9.2           For purposes of
determining whether any of the Total Payments will be subject to the Excise Tax
and the amount of such Excise Tax,

 

(a)           the Total Payments
shall be treated as “parachute payments” within the meaning of Section
280G(b)(2) of the Code, and all “excess parachute payments” within the meaning
of Section 280G(b)(1) of the Code shall be treated as subject to the
Excise Tax, unless in the opinion of tax counsel selected by the Company and
reasonably acceptable to the Executive (which opinion shall be provided to the
Executive) such Total Payments (in whole or in part) (i) do not constitute
parachute payments, including (without limitation) by reason of
Section 280G(b)(4)(A) of the Code, (ii) such excess parachute
payments (in whole or in part) represent reasonable compensation for services
actually rendered, within the meaning of Section 280G(b)(4)(B) of the
Code, or (iii) are not, in the opinion of legal counsel, otherwise subject
to the Excise Tax, and

 

13

 

(b)           the value of any
non-cash benefits or any deferred payment or benefit shall be determined by the
Company’s independent auditors in accordance with the principles of
Sections 280G(d)(3) and (4) of the Code.

 

9.3           In the event that the
Excise Tax is subsequently determined to be less than the amount taken into
account hereunder, the Executive shall repay to the Company, at the time that
the amount of such reduction in Excise Tax is finally determined, the portion
of the Gross-Up Payment attributable to such reduction plus interest on the
amount of such repayment at the rate provided in Section 1274(b)(2)(B) of the
Code. In the event that the Excise Tax is determined to exceed the amount taken
into account hereunder at the time of the termination of the Executive’s
employment (including by reason of any payment the existence or amount of which
cannot be determined at the time of the initial Gross-Up Payment), the Company
shall make an additional Gross-Up Payment in accordance with Section 9.1
in respect of such excess Excise Tax (plus any interest, penalties or additions
payable by the Executive with respect to such excess Excise Tax) at the time
that the amount of such excess Excise Tax is finally determined. The Executive
and the Company shall each reasonably cooperate with each other in connection
with any administrative or judicial proceedings concerning the existence or
amount of any such subsequent liability for Excise Tax with respect to the
Total Payments.

 

10.           INDEMNIFICATION.

 

10.1         General. The Company agrees that if the
Executive is made a party or is threatened to be made a party to any action,
suit or proceeding, whether civil, criminal, administrative or investigative
(an “Indemnifiable Action”), by
reason of the fact that he is or was a director or officer of the Company or is
or was serving at the request of the Company as a director, officer, member,
employee or agent of another corporation or of a partnership, joint venture,
trust or other enterprise, including service with respect to employee benefit
plans, whether or not the basis of such Indemnifiable Action is alleged action
in an official capacity as a director, officer, member, employee or agent, he
shall be indemnified and held harmless by the Company to the fullest extent
authorized by Nevada law and the Company’s bylaws, as the same exist or may
hereafter be amended (but, in the case of any such amendment to the Company’s
bylaws, only to the extent such amendment permits the Company to provide
broader indemnification rights than the Company’s bylaws permitted the Company
to provide before such amendment), against all expense, liability and loss
(including, without limitation, attorneys’ fees, judgments, fines, ERISA excise
taxes or penalties and amounts paid or to be paid in settlement) reasonably
incurred or suffered by the Executive in connection therewith.

 

10.2         Procedure. The indemnification provided
pursuant to this Section 10 shall be subject to the following
conditions:

 

(a)           The Executive must
promptly give the Company written notice of any actual or threatened
Indemnifiable Action and, upon providing such notice, the Executive shall be
presumed to be entitled to indemnification under this Agreement and the Company
shall have the burden of proof to overcome that presumption in reaching any
contrary determination; provided, however, that the Executive’s
failure to give such notice shall not affect the Company’s obligations
hereunder;

 

14

 

(b)           The Company will be
permitted, at its option, to participate in, or to assume, the defense of any
Indemnifiable Action, with counsel reasonably approved by the Executive; provided,
however, that (i) the Executive shall have the right to employ his own
counsel in such Indemnifiable Action at the Executive’s expense, and (ii) if
(A) the retention of counsel by the Executive has been previously authorized in
writing by the Company, (B) the Company shall have reasonably concluded, based
on the advice of independent legal counsel mutually selected by the Company and
the Executive, that there may be a conflict of interest between the Company and
the Executive in the conduct of any such defense, or (C) the Company shall not,
in fact, have retained counsel to assume the defense of such Indemnifiable
Action, the fees and expenses of the Executive’s counsel shall be at the
expense of the Company; and provided, further, that the Company
shall not settle any action or claim that would impose any limitation or
penalty on the Executive without obtaining the Executive’s prior written consent,
which consent shall not be unreasonably withheld;

 

(c)           The Executive must
provide reasonable cooperation to the Company in the defense of any
Indemnifiable Action; and

 

(d)           The Executive must
refrain from settling any Indemnifiable Action without obtaining the Company’s
prior written consent, which consent shall not be unreasonably withheld.

 

10.3         Advancement of Costs and Expenses. The
Company agrees to advance all costs and expenses referred to in Sections
10.1 and 10.6; provided, however, that the Executive
agrees to repay to the Company any amounts so advanced only if, and to the
extent that, it shall ultimately be determined by a court of competent
jurisdiction that the Executive is not entitled to be indemnified by the
Company as authorized by this Agreement. The advances to be made hereunder
shall be paid by the Company to or on behalf of the Executive within twenty
(20) days following delivery of a written request therefore by the Executive to
the Company. The Executive’s entitlement to advancement of costs and expenses
hereunder shall include those incurred in connection with any action, suit or
proceeding by the Executive seeking a determination, adjudication or
arbitration award with respect to his rights and/or obligations under this Section
10.

 

10.4         Non-Exclusivity of Rights. The right to
indemnification and the payment of expenses incurred in defending an
Indemnifiable Action in advance of its final disposition conferred in this Section 10
shall not be exclusive of any other right which the Executive may have or
hereafter may acquire under any statute, provision of the certificate of
incorporation or by-laws of the Company, agreement, vote of stockholders or
disinterested directors or otherwise.

 

10.5         D&O Insurance. The Company will
maintain a directors’ and officers’ liability insurance policy covering the
Executive that provides coverage that is reasonable in relation to the
Executive’s position during the Term of Employment.

 

15

 

10.6         Witness Expenses. Notwithstanding any
other provision of this Agreement, the Company shall indemnify the Executive if
and whenever he is a witness or threatened to be made a witness to any action,
suit or proceeding to which the Executive is not a party, by reason of the fact
that the Executive is or was a director or officer of the Company or its
Affiliates or by reason of anything done or not done by him in such capacity,
against all expense, liability and loss incurred or suffered by the Executive
in connection therewith; provided, however, that if the Executive
is no longer employed by the Company, the Company will compensate him, on an
hourly basis, for all time spent, at either his then current compensation rate
or his Base Salary at the rate in effect as of the termination of his
employment, whichever is higher.

 

10.7         Survival. The provisions of this Section
10 shall survive the expiration or earlier termination of this Agreement,
regardless of the reason for such termination.

 

11.           COVENANT NOT ENGAGE IN CERTAIN ACTS.

 

11.1         General. The Parties understand and
agree that the purpose of the restrictions contained in this Section 11
is to protect the goodwill and other legitimate business interests of the
Company, and that the Company would not have entered into this Agreement in the
absence of such restrictions. The Executive acknowledges and agrees that the
restrictions are reasonable and do not, and will not, unduly impair his ability
to make a living after the termination of his employment with the Company. The
provisions of this Section 11 shall survive the expiration or sooner
termination of this Agreement.

 

11.2         Non-assistance; Non-diversion. In
consideration for this Agreement to employ the Executive and the other valuable
consideration provided hereunder, the Executive agrees and covenants that
during the Term of Employment and during the Restriction Period, and except
when acting on behalf of the Company or on behalf of any Affiliate, the
Executive shall not, directly or indirectly, for himself or any third party, or
alone or as a member of a partnership, or as an officer, director, shareholder
or otherwise, engage in the following acts:

 

(a)           divert or attempt to
divert any existing business of the Company or any Affiliate;

 

(b)           accept any position or
affiliation with, or render any services on behalf of, any Competing Business;
or

 

(c)           hire or retain any
employee of the Company or any Affiliate to provide services for any other
Person or induce, solicit, attempt to solicit, encourage, divert, cause or
attempt to cause any employee or prospective employee of the Company or any
Affiliate to (i) terminate and/or leave such employment, or (ii) accept
employment with anyone other than the Company or an Affiliate.

 

11.3         Cessation/Reimbursement of Payments. If
the Executive violates any provision of this Section 11, the Company
may, upon giving written notice to the Executive, immediately cease all
payments and benefits that it may be providing to the Executive pursuant to Section
3, Section 6 or Section 7.2, and the Executive may be
required to reimburse the 

 

16

 

Company for any payments
received from, and the cash value of any benefits provided by, the Company
between the first day of the violation and the date such notice is given; provided,
however, that the foregoing shall be in addition to such other remedies
as may be available to the Company and shall not be deemed to permit the
Executive to forego or waive such payments in order to avoid his obligations
under this Section 11.

 

11.4         Survival. The Executive agrees that the
provisions of this Section 11 shall survive the termination of this
Agreement and the termination of the Executive’s employment.

 

12.           CONFIDENTIAL INFORMATION.

 

12.1         Confidential Information. The Executive
understands and acknowledges that Confidential Information constitutes a
valuable asset of the Company and its Affiliates and may not be converted to
the Executive’s own or any third party’s use. Accordingly, the Executive hereby
agrees that he shall not directly or indirectly, during the Term of Employment
or any time thereafter, disclose any Confidential Information to any Person not
expressly authorized by the Company to receive such Confidential Information.
The Executive further agrees that he shall not directly or indirectly, during
the Term of Employment or any time thereafter, use or make use of any
Confidential Information in connection with any business activity other than
that of the Company. The Parties acknowledge and agree that this Agreement is
not intended to, and does not, alter either the Company’s rights or the
Executive’s obligations under any state or federal statutory or common law
regarding trade secrets and unfair trade practices.

 

12.2         Company Property. All Company Property
is and shall remain exclusively the property of the Company. Unless authorized
in writing to the contrary, the Executive shall promptly, and without charge,
deliver to the Company on the termination of employment hereunder, or at any
other time the Company may so request, all Company Property that the Executive
may then possess or have under his control.

 

12.3         Required Disclosure. In the event the
Executive is required by law or court order to disclose any Confidential
Information or to produce any Company Property, the Executive shall promptly
notify the Company of such requirement and provide the Company with a copy of
any court order or of any law which requires such disclosure and, if the
Company so elects, to the extent permitted by applicable law, give the Company
an adequate opportunity, at its own expense, to contest such law or court order
prior to any such required disclosure or production by the Executive.

 

12.4         Survival. The Executive agrees that the
provisions of this Section 12 shall survive the termination of this
Agreement and the termination of the Executive’s employment to the extent
provided above.

 

13.           MUTUAL ARBITRATION AGREEMENT.

 

13.1         Arbitrable Claims. All disputes between
the Executive (and his attorneys, successors, and assigns) and the Company (and
its trustees, beneficiaries, officers, directors, managers, affiliates,
employees, agents, successors, attorneys, and assigns) relating in 

 

17

 

any manner whatsoever to
the employment or termination of the Executive, including, without limitation,
all disputes arising under this Agreement (“Arbitrable
Claims”), shall be resolved by binding arbitration as set forth in
this Section 13 (the “Mutual
Arbitration Agreement”). Arbitrable Claims shall include, but are
not limited to, claims for compensation, claims for breach of any contract or
covenant (express or implied), and tort claims of all kinds, as well as all
claims based on any federal, state, or local law, statute or regulation, but
shall not include the Company’s right to seek injunctive relief as provided in Section
15. Arbitration shall be final and binding upon the Parties and shall be
the exclusive remedy for all Arbitrable Claims. THE PARTIES HEREBY WAIVE ANY RIGHTS THEY MAY HAVE TO TRIAL BY JUDGE OR
JURY IN REGARD TO ARBITRABLE CLAIMS, EXCEPT AS PROVIDED BY SECTION 13.4.

 

13.2         Procedure. Arbitration of Arbitrable
Claims shall be in accordance with the National Rules for the Resolution of
Employment Disputes of the American Arbitration Association, as amended, and as
augmented in this Agreement. Either Party may bring an action in court to
compel arbitration under this Agreement and to enforce an arbitration award.
Otherwise, neither Party shall initiate or prosecute any lawsuit, appeal or
administrative action in any way related to an Arbitrable Claim. The initiating
Party must file and serve an arbitration claim within sixty (60) days of
learning the facts giving rise to the alleged claim. All arbitration hearings
under this Agreement shall be conducted in Las Vegas, Nevada. The Federal
Arbitration Act shall govern the interpretation and enforcement of this
Agreement. The fees of the arbitrator shall be divided equally between both
Parties.

 

13.3         Confidentiality. All proceedings and
all documents prepared in connection with any Arbitrable Claim shall be
confidential and, unless otherwise required by law, the subject matter and
content thereof shall not be disclosed to any Person other than the parties to
the proceedings, their counsel, witnesses and experts, the arbitrator and, if
involved, the court and court staff.

 

13.4         Applicability. This Section 13
shall apply to all disputes under this Agreement other than disputes relating
to the enforcement of the Company’s rights under Sections 11 and 12 of
this Agreement.

 

13.5         Acknowledgements. The Executive
acknowledges that he:

 

(a)           has carefully read this
Section 13;

 

(b)           understands its terms
and conditions; and

 

(c)           has entered into this
Mutual Arbitration Agreement voluntarily and not in reliance on any promises or
representations made by the Company other than those contained in this Mutual
Arbitration Agreement.

 

14.           NOTICES. All notices, demands and
requests required or permitted to be given to either Party under this Agreement
shall be in writing and shall be deemed to have been given when delivered
personally or sent by certified or registered mail, postage prepaid, return
receipt requested, duly addressed to the Party concerned at the address
indicated below or to such changed address as such Party may subsequently give
notice of:

 

18

 

	
  If
  to the Company:

  	
  Station Casinos,
  Inc.

  	 

	 
	
   

  	
  1505 S. Pavilion
  Center Drive

  
	 
	
   

  	
  Las Vegas, NV
  89135

  
	 
	
   

  	
  Attention:
  Richard J. Haskins

  
	 
	
   

  	
   

  
	 
	
  With
  a copy to:

  	
  Milbank, Tweed,
  Hadley & McCloy

  
	 
	
   

  	
  601 South
  Figueroa Street, 30th Floor

  
	 
	
   

  	
  Los Angeles, CA
  90017

  
	 
	
   

  	
  Attention:
  Kenneth J. Baronsky

  
	 
	
   

  	
   

  
	 
	
  If
  to the Executive:

  	
  William W.
  Warner

  
	 
	
   

  	
  1505 S. Pavilion
  Center Drive

  
	 
	
   

  	
  Las Vegas, NV
  89135

  
					

 

15.           RIGHT TO SEEK INJUNCTIVE RELIEF. The
Executive acknowledges that a violation on his part of any of the covenants
contained in Sections 11 and 12 would cause immeasurable and irreparable
damage to the Company. The Executive accordingly agrees and hereby grants his
consent that, without limiting the remedies available to the Company, any
actual or threatened violation of such covenants may be enforced by injunctive
relief or by other equitable remedies issued or ordered by any court of
competent jurisdiction.

 

16.           EMPLOYEE BENEFIT PLAN DOCUMENTS. In the
event that any provision of this Agreement conflicts with the terms and
provisions of any employee benefit plan document, the provisions of this
Agreement shall govern; and the Company shall take any and all actions that may
be necessary, including amendment of any plan document, to effect the provision
of benefits expressly provided upon termination of the Executive’s employment
pursuant to Sections 6 and 7.

 

17.           BENEFICIARIES/REFERENCES. The Executive
shall be entitled to select a beneficiary or beneficiaries to receive any
compensation or benefit payable hereunder following the Executive’s death, and
may change such election, by giving the Company written notice thereof. In the
event of the Executive’s death or a judicial determination of his incompetence,
reference in this Agreement to the Executive shall be deemed, where
appropriate, to refer to his beneficiary, estate or other legal representative.

 

18.           SURVIVORSHIP. The respective rights and
obligations of the Parties hereunder shall survive the termination of this
Agreement to the extent necessary to the intended preservation of such rights
and obligations. The provisions of this Section 18 are in addition to
the survivorship provisions of any other Section of this Agreement.

 

19.           REPRESENTATIONS AND WARRANTIES. Each
Party represents and warrants that he or it is fully authorized and empowered
to enter into this Agreement and that the performance of his or its obligations
under this Agreement will not violate any agreement between that Party and any
other Person.

 

19

 

20.           ENTIRE AGREEMENT. This Agreement
contains the entire agreement between the Parties concerning the subject matter
hereof and supersedes all prior agreements, understandings, discussions,
negotiations and undertakings, whether written or oral, between the Parties
with respect thereto. No representations, inducements, promises or agreements
not embodied herein shall be of any force or effect.

 

21.           ASSIGNABILITY; BINDING NATURE. This
Agreement shall be binding upon and inure to the benefit of the Parties and
their respective successors, heirs and assigns; provided, however,
that no rights or obligations of the Executive under this Agreement may be
assigned or transferred by the Executive, other than rights to compensation and
benefits hereunder, which may be transferred only by will or operation of law
and subject to the limitations of this Agreement; and provided, further,
that no rights or obligations of the Company under this Agreement may be
assigned or transferred by the Company, except that such rights or obligations
may be assigned or transferred pursuant to a merger or consolidation in which
the Company is not the continuing entity, or the sale or liquidation of all or
substantially all of the assets of the Company, provided that the assignee or
transferee is the successor to all or substantially all of the assets of the
Company and such assignee or transferee assumes the liabilities, obligations
and duties of the Company under this Agreement, either contractually or as a
matter of law. Upon the consummation of the Initial Public Offering, this
Agreement shall be assumed by the IPO Corporation and the Company and any other
Company Affiliate having obligations hereunder shall thereupon be released from
any liabilities or obligations hereunder.

 

22.           AMENDMENT OR WAIVER. No provision in
this Agreement may be amended or waived unless such amendment or waiver is
agreed to in writing, signed by both Parties. No waiver by one Party of any
breach by the other Party of any condition or provision of this Agreement to be
performed by such other Party shall be deemed a waiver of a similar or
dissimilar condition or provision at the same or any prior or subsequent time.
No failure of the Company to exercise any power given it hereunder or to insist
upon strict compliance by the Executive with any obligation hereunder, and no
custom or practice at variance with the terms hereof, shall constitute a waiver
of the right of the Company to demand strict compliance with the terms hereof.

 

23.           SEVERABILITY. In the event that any
provision or portion of this Agreement shall be determined to be invalid or
unenforceable for any reason, in whole or in part, the remaining provisions of
this Agreement shall be unaffected thereby and shall remain in full force and
effect to the fullest extent permitted by law.

 

24.           SECTION 409A. Notwithstanding anything
in this Agreement to the contrary, no payment under this Agreement shall be
made to the Executive at a time or in a form that would subject Executive to
the penalty tax of Section 409A of the Code (the “409A Tax”). If any payment under any other provision of this
Agreement would, if paid at the time or in the form called for under such
provision, subject the Executive to the 409A Tax, such payment (the “Deferred Amount”) shall instead be paid at
the earliest time that it could be paid without subjecting the Executive to the
409A Tax, and shall be paid in a form that would not subject the Executive to
the 409A Tax. The Deferred Amount shall accrue simple interest at the prime
rate of interest as published by Bank of America N.A. (or its successor) during
the deferral period and shall be paid with the Deferred Amount. The Company
will place an amount in a “rabbi 

 

20

 

trust” with Towers Perrin (or such other trustee mutually acceptable to
the Company and the Executive) equal to the Deferred Amount, plus the interest
that will accrue thereon

 

25.           GOVERNING LAW. This Agreement shall be
governed by and construed and interpreted in accordance with the laws of the
State of Nevada without reference to the principles of conflict of laws
thereof. In the event of any dispute or controversy arising out of or relating
to this Agreement that is not an arbitrable claim, the Parties mutually and
irrevocably consent to, and waive any objection to, the exclusive jurisdiction
of any court of competent jurisdiction in Clark County, Nevada, to resolve such
dispute or controversy.

 

26.           HEADINGS. The headings of the Sections
contained in this Agreement are for convenience only and shall not be deemed to
control or affect the meaning or construction of any provision of this
Agreement.

 

27.           COUNTERPARTS. This Agreement may be
executed in counterparts, each of which shall be deemed an original and all of
which shall constitute one and the same Agreement with the same effect as if
all Parties had signed the same signature page. Any signature page of this
Agreement may be detached from any counterpart of this Agreement and reattached
to any other counterpart of this Agreement identical in form hereto but having
attached to it one or more additional signature pages.

 

28.           ACKNOWLEDGEMENT. The Executive
represents and acknowledges the following: 

 

(a)           he has carefully read
this Agreement in its entirety;

 

(b)           he understands the
terms and conditions contained herein;

 

(c)           he has had the
opportunity to review this Agreement with legal counsel of his own choosing and
has not relied on any statements made by the Company or its legal counsel as to
the meaning of any term or condition contained herein or in deciding whether to
enter into this Agreement; and

 

(d)           he is entering into
this Agreement knowingly and voluntarily.

 

IN WITNESS WHEREOF, the undersigned have
executed this Agreement as of the date first written above.

 

	
   

  	
  STATION
  CASINOS, INC.

  	 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard J.
  Haskins

  	
   

  	 

	
   

  	
  Name:

  	
  Richard J. Haskins

  	 

	
   

  	
  Title:

  	
  Executive Vice
  President,

  
	
   

  	
  General Counsel and
  Secretary

  	 

	
   

  	
   

  	
   

  	 

	
   

  	
   

  	 

	
   

  	
  /s/ William W. Warner

  	
   

  	 

	
   

  	
  WILLIAM
  W. WARNER

  	 

							

 

21

 

GUARANTEE

 

Fertitta
Colony Partners LLC, a Nevada limited liability company, hereby, to the fullest
extent permitted by applicable law, irrevocably and unconditionally guarantees
to the Executive the prompt performance and payment in full when due of all
obligations of the Company to the Executive under this Employment Agreement; provided,
however, that upon an Initial Public Offering, such Guarantee shall
automatically terminate and be of no further force or effect.

 

	
   

  	
  FERTITTA
  COLONY PARTNERS LLC

  	 

	
   

  	
   

  	 

	
   

  	
  By:

  	
  /s/ Lorenzo J.
  Fertitta

  	
   

  	 

	
   

  	
  Name:

  	
  Lorenzo J.
  Fertitta

  	 

	 
	
   

  	
  Title:

  	
  Vice President

  
								

 

22

 

EXHIBIT
“A”

 

GENERAL
RELEASE AND COVENANT NOT TO SUE

 

This GENERAL RELEASE AND COVENANT NOT TO SUE
(this “Release”) is executed and
delivered by WILLIAM W. WARNER (the
“Executive”) to STATION CASINOS, INC., a Nevada corporation
(the “Company”).

 

In consideration of the
agreement by the Company to provide the separation payments and benefits in Section
6 and Section 7 of the Employment Agreement between the Executive
and the Company, dated as of November 7, 2007 (the “Employment Agreement”), and for other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
Executive hereby agrees as follows:

 

1.             RELEASE AND COVENANT. THE EXECUTIVE, OF HIS OWN FREE
WILL, VOLUNTARILY RELEASES AND FOREVER DISCHARGES THE COMPANY AND ITS
SUBSIDIARIES AND AFFILIATES, AND EACH OF THEIR RESPECTIVE PAST AND PRESENT
AGENTS, EMPLOYEES, MANAGERS, REPRESENTATIVES, OFFICERS, DIRECTORS, ATTORNEYS,
ACCOUNTANTS, TRUSTEES, SHAREHOLDERS, PARTNERS, INSURERS, HEIRS,
PREDECESSORS-IN-INTEREST, ADVISORS, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE
“RELEASED PARTIES”) FROM, AND COVENANTS NOT TO SUE OR PROCEED AGAINST ANY OF
THE FOREGOING ON THE BASIS OF, ANY AND ALL PAST OR PRESENT CAUSES OF ACTION,
SUITS, AGREEMENTS OR OTHER RIGHTS OR CLAIMS WHICH THE EXECUTIVE, HIS
DEPENDENTS, RELATIVES, HEIRS, EXECUTORS, ADMINISTRATORS, SUCCESSORS AND ASSIGNS
HAS OR HAVE AGAINST ANY OF THE RELEASED PARTIES UPON OR BY REASON OF ANY MATTER
ARISING OUT OF HIS EMPLOYMENT BY THE COMPANY AND THE CESSATION OF SAID
EMPLOYMENT, AND INCLUDING, BUT NOT LIMITED TO, ANY ALLEGED VIOLATION OF THE
CIVIL RIGHTS ACTS OF 1964 AND 1991, THE EQUAL PAY ACT OF 1963, THE AGE
DISCRIMINATION IN EMPLOYMENT ACT OF 1967 (INCLUDING THE OLDER WORKERS BENEFIT
PROTECTION ACT OF 1990), THE REHABILITATION ACT OF 1973, THE FAMILY AND MEDICAL
LEAVE ACT OF 1993, THE AMERICANS WITH DISABILITIES ACT OF 1990, THE EMPLOYMENT
RETIREMENT INCOME SECURITY ACT OF 1974, THE NEVADA FAIR EMPLOYMENT PRACTICES
ACT, THE LABOR LAWS OF THE UNITED STATES AND NEVADA, AND ANY OTHER FEDERAL,
STATE OR LOCAL LAW, REGULATION OR ORDINANCE, OR PUBLIC POLICY, CONTRACT OR TORT
LAW, HAVING ANY BEARING WHATSOEVER ON THE TERMS AND CONDITIONS OR CESSATION OF
HIS EMPLOYMENT WITH THE COMPANY.

 

2.             DUE CARE. THE EXECUTIVE ACKNOWLEDGES THAT
HE HAS RECEIVED A COPY OF THIS RELEASE PRIOR TO ITS EXECUTION AND HAS BEEN
ADVISED HEREBY OF HIS OPPORTUNITY TO REVIEW AND CONSIDER 

 

 

THIS RELEASE FOR TWENTY-ONE (21) DAYS PRIOR TO ITS EXECUTION. THE
EXECUTIVE FURTHER ACKNOWLEDGES THAT HE HAS BEEN ADVISED HEREBY TO CONSULT WITH
AN ATTORNEY PRIOR TO EXECUTING THIS RELEASE. THE EXECUTIVE ENTERS INTO THIS
RELEASE HAVING FREELY AND KNOWINGLY ELECTED, AFTER DUE CONSIDERATION, TO
EXECUTE THIS RELEASE AND TO FULFILL THE PROMISES SET FORTH HEREIN. THIS RELEASE
SHALL BE REVOCABLE BY THE EXECUTIVE DURING THE SEVEN (7) DAY PERIOD FOLLOWING
ITS EXECUTION, AND SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL THE
EXPIRATION OF SUCH SEVEN (7) DAY PERIOD. IN THE EVENT OF SUCH A REVOCATION, THE
EXECUTIVE SHALL NOT BE ENTITLED TO THE CONSIDERATION FOR THIS RELEASE SET FORTH
ABOVE.

 

3.             RELIANCE BY THE EXECUTIVE. THE
EXECUTIVE ACKNOWLEDGES THAT, IN HIS DECISION TO ENTER INTO THIS RELEASE, HE HAS
NOT RELIED ON ANY REPRESENTATIONS, PROMISES OR ARRANGEMENT OF ANY KIND,
INCLUDING ORAL STATEMENTS BY REPRESENTATIVES OF THE COMPANY, EXCEPT AS SET FORTH
IN THIS RELEASE.

 

4.             MISCELLANEOUS. THE EXECUTIVE SHALL NOT
DISCLOSE THE EXISTENCE OR CONTENTS OF THIS RELEASE TO ANYONE OTHER THAN HIS
IMMEDIATE FAMILY, ACCOUNTANTS OR ATTORNEYS, AND THE EXECUTIVE SHALL INSTRUCT
SUCH THIRD PARTIES NOT TO DISCLOSE THE SAME. THIS RELEASE SHALL BE GOVERNED BY
AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEVADA WITHOUT REFERENCE TO THE PRINCIPLES OF CONFLICT OF LAWS THEREOF. IF ANY
PROVISION OF THIS RELEASE IS HELD INVALID OR UNENFORCEABLE FOR ANY REASON, THE
REMAINING PROVISIONS SHALL BE CONSTRUED AS IF THE INVALID OR UNENFORCEABLE
PROVISION HAD NOT BEEN INCLUDED.

 

This GENERAL RELEASE AND COVENANT NOT TO SUE is
executed by the Executive and delivered to the Company on
                         .

 

	
   

  	
  “Executive”

  	 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  	 

	
   

  	
  WILLIAM
  W. WARNER

  	 

				

 

 

	
  STATE OF

  	
  )

  
	
   

  	
  ) ss:

  
	
  COUNTY OF

  	
  )

  

 

On
this           day of
              ,
     , before me, a Notary Public of the State of
                  ,
personally appeared William W. Warner, to me known and known to me to be the
person described and who executed the foregoing release and did then and there
acknowledge to me that he voluntarily executed the same.

 

 

	
   

  	
   

  
	
  NOTARY PUBLIC

  

 

[Not to be signed or notarized upon execution of
Employment Agreement]Exhibit 10.13

 

 

 

EQUITYHOLDERS AGREEMENT

 

 

OF

 

 

STATION CASINOS, INC., 

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

 

Dated
as of November 7, 2007

 

 

 

EQUITYHOLDERS AGREEMENT

OF

STATION CASINOS, INC., 

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1. DEFINITIONS

  	
  2

  
	
  Section 1.1

  	
  Definitions

  	
  2

  
	
  Section 1.2

  	
  Rules of
  Interpretation

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2. BOARD OF DIRECTORS OF STATION

  	
  8

  
	
  Section 2.1

  	
  Board of
  Directors

  	
  8

  
	
  Section 2.2

  	
  Station
  Executives

  	
  12

  
	
  Section 2.3

  	
  Other
  Activities and Competition

  	
  12

  
	
  Section 2.4

  	
  Directors’
  Insurance

  	
  12

  
	
  Section 2.5

  	
  Additional
  Shares; Preemptive Rights

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3. TRANSFERS OF INTERESTS

  	
  13

  
	
  Section 3.1

  	
  General

  	
  13

  
	
  Section 3.2

  	
  Further
  Requirements with respect to Transfers of Shares

  	
  14

  
	
  Section 3.3

  	
  Indirect
  Transfers

  	
  15

  
	
  Section 3.4

  	
  Transfer
  Provisions with respect to Station

  	
  15

  
	
  Section 3.5

  	
  Transfer
  Provisions with respect to FCP and Fertitta Partners

  	
  18

  
	
  Section 3.6

  	
  Initial
  Public Offering

  	
  22

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4. NAMED EXECUTIVE MEMBER LOANS

  	
  23

  
	
  Section 4.1

  	
  Named
  Executive Member Loans

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5. ISSUANCE OF CLASS C UNITS

  	
  23

  
	
  Section 5.1

  	
  Issuance of Class C
  Units

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6. MISCELLANEOUS

  	
  23

  
	
  Section 6.1

  	
  Amendments

  	
  23

  
	
  Section 6.2

  	
  Notices

  	
  24

  
	
  Section 6.3

  	
  Entire
  Agreement

  	
  24

  
	
  Section 6.4

  	
  Governing
  Law

  	
  24

  
	
  Section 6.5

  	
  Severability

  	
  24

  
	
  Section 6.6

  	
  Effect

  	
  24

  
	
  Section 6.7

  	
  Captions

  	
  24

  
	
  Section 6.8

  	
  Counterparts

  	
  24

  
	
  Section 6.9

  	
  Waiver of
  Trial by Jury

  	
  25

  
	
  Section 6.10

  	
  Binding
  Arbitration

  	
  25

  

 

i

	
  Section 6.11

  	
  Gaming
  Suitability

  	
  25

  
	
  Section 6.12

  	
  Restructuring,
  Exchanges, etc., Affecting the Shares

  	
  25

  
	
  Section 6.13

  	
  Conflict
  with Bylaws, Articles of Incorporation or FCP Voteco Operating Agreement

  	
  26

  
	
  Section 6.14

  	
  Supermajority
  Consent Not Required

  	
  26

  
	
   

  
	
  Schedule I

  	
  -

  	
  Major Actions

  
	
  Schedule II

  	
  -

  	
  Ownership of Station Stock

  
				

 

ii

EQUITYHOLDERS AGREEMENT

OF

STATION CASINOS, INC., 

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

This EQUITYHOLDERS AGREEMENT (this “Agreement”)
of Station Casinos, Inc., a Nevada corporation (“Station”),
Fertitta Colony Partners LLC, a Nevada limited liability company (“FCP”),
and Fertitta Partners LLC, a Nevada limited liability company (“Fertitta
Partners”), dated as of November 7, 2007, is entered into by and among
Station, FCP, Fertitta Partners, FCP Holding, Inc., a Nevada corporation (“Holding”),
FCP VoteCo LLC, a Nevada limited liability company (“FCP VoteCo”, and,
together with Holding and Fertitta Partners, the “Station Stockholders”)
and the Members of FCP and Fertitta Partners listed on the signature pages hereof
(the “Members”, and together with the Station Stockholders, the “Equityholders”).
Capitalized terms used herein and not otherwise defined herein has the meanings
set forth in Section 1.1.

 

RECITALS

 

WHEREAS,
on November 7, 2007, Station consummated the transactions contemplated by
that certain Agreement and Plan of Merger by and among Station, FCP, and FCP
Acquisition Sub, a Nevada corporation (“FCP Merger Sub”), as amended by
that certain Amendment to Agreement and Plan of Merger dated by and among
Station, FCP and FCP Merger Sub dated as of May 4, 2007 (the “Merger
Agreement”); and

 

WHEREAS,
in connection with the consummation of the transactions contemplated by the
Merger Agreement, the Members acquired their interests in FCP and Fertitta
Partners, respectively; and

 

WHEREAS, following
the consummation of the Merger, the Station Stockholders hold that number and class of
shares of common stock of Station as set forth on Schedule II; and

 

WHEREAS, as a result
of the direct and indirect interests of FCP and Fertitta Partners in Station,
the Members have a common interest in regulating the disposition of the Members’
interests of FCP and Fertitta Partners and certain other matters relating to
the direct and indirect ownership of Station by FCP and Fertitta Partners; and

 

WHEREAS,
the Station Stockholders desire to organize their mutual relationship as the
principal stockholders of Station and their participation in the governance of
Station, and FCP, Fertitta Partners and the Members desire to (i) restrict
the sale, assignment, transfer, 

 

encumbrance or other disposition of the Units and (ii) provide for
certain other rights and obligations relating to the Units.

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
promises and covenants contained herein, the parties hereto agree as follows:

 

ARTICLE 1. DEFINITIONS

 

Definitions 
The following terms used in this Agreement shall have the following
meanings.

 

“Affiliate” of an Equityholder means
any other Person controlling, controlled by or under common control with such
Equityholder. For the purpose of this definition, the term “control” (including
with correlative meanings, the terms “controlling,” “controlled by” and “under
common control with”), as used with respect to any Equityholder, shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of the management and policies of such Person, either through the
ownership of a majority of such Person’s Voting Stock, by contract or
otherwise.

 

“Agreement” has the meaning set forth
in the preamble hereto.

 

“Board of Directors” means the Board
of Directors of Station established pursuant to Section 2.1(a) hereof.

 

“Board of Managers” means the Board of
Managers of FCP, Fertitta Partners or FCP VoteCo, as applicable, established
pursuant to the FCP Operating Agreement, the Fertitta Partners Operating
Agreement or the FCP VoteCo Operating Agreement, respectively.

 

“Business Day” means any day other
than a Saturday, Sunday or a day on which commercial banks are authorized or
required to close in New York City, New York or the State of Nevada.

 

“Bylaws” means the Amended and
Restated Bylaws of Station, as amended, modified or supplemented from time to
time.

 

“Capital Stock” means (i) with
respect to any Person that is a corporation, any and all shares, interests,
participations, rights or other equivalents (however designated) of corporate
stock; and (ii) with respect to any other Person, any and all partnership,
member’s, membership or other equity interests of such Person.

 

“Cause” for the removal of any
Director means such director has been found unsuitable by a Gaming Authority.

 

“Class A Member(s)” means the
Members holding Class A Units.

 

2

“Class A Units” means Units of
FCP or Fertitta Partners, as applicable, designated as “Class A Units”
under the FCP Operating Agreement or Fertitta Partners Operating Agreement,
respectively.

 

“Class B Member(s)” means the
Members holding Class B Units.

 

“Class B Units” means Units of
FCP or Fertitta Partners, as applicable, designated as “Class B Units”
under the FCP Operating Agreement or Fertitta Partners Operating Agreement,
respectively.

 

“Class C Member(s)” means the
Members holding Class C Units.

 

“Class C Units” means Units of
FCP or Fertitta Partners, as applicable, designated as “Class C Units”
under the FCP Operating Agreement or Fertitta Partners Operating Agreement,
respectively.

 

“Code” means the Internal Revenue Code
of 1986, as amended from time to time (or any succeeding law).

 

“Common Stock” means the non-voting
common stock, $0.01 par value per share, and the voting common stock, $0.01 par
value per share, of Station.

 

“Disability” means a Person is unable
to perform the duties arising as a result of his position or employment by
Parent by reason of any medically determinable physical or mental impairment
that can reasonably be expected to last for a continuous period of not less
than 12 months.

 

“Dragged Members” has the meaning set
forth in Section 3.5.3(a).

 

“Dragged Stockholders” has the meaning
set forth in Section 3.4.3(a).

 

“Dragging Members” has the meaning set
forth in Section 3.5.3(a).

 

“Dragging Stockholders” has the
meaning set forth in Section 3.4.3(a).

 

“Drag Subject Company” has the meaning
set forth in Section 3.5.3(a).

 

“Equityholders” has the meaning set
forth in the preamble hereto.

 

“Equity Interests” of any Person means
Capital Stock of such Person or warrants, options or other rights to acquire
Capital Stock of such Person.

 

“ERISA” means the Employee Retirement
Income Security Act of 1974, as amended from time to time, and the regulations
promulgated thereunder.

 

“Family Members” means, with respect
to any individual, such Person’s spouse, children, siblings, parents and all
lineal descendants of such Person’s parents (in each case, natural or adopted).

 

3

“Family Trust” means, with respect to
any individual, a trust, limited partnership or limited liability company
benefiting solely such individual or the Family Members of such individual.

 

“FCP” has the meaning set forth in the
preamble hereto.

 

“FCP Merger Sub” has the meaning set forth
in the Recitals hereof.

 

“FCP Operating Agreement” means that
certain Second Amended and Restated Operating Agreement of FCP dated as of even
date herewith.

 

“FCP VoteCo” has the meaning set forth
in the preamble hereto.

 

“FCP VoteCo Operating Agreement” means
that certain Amended and Restated Operating Agreement of FCP VoteCo dated as of
even date herewith.

 

“Fertitta Partners” has the meaning
set forth in the preamble hereto.

 

“Fertitta Partners Operating Agreement”
means that certain Amended and Restated Operating Agreement of Fertitta
Partners dated as of even date herewith.

 

“Fertitta Units” has the meaning set
forth in Section 2.1(a)(ii).

 

“Gaming Authority” means the Nevada
Gaming Commission, the Nevada State Gaming Control Board, the National Indian
Gaming Commission or any agency of any sovereign entity, state, county, city or
other political subdivision which has, or may at any time after the date
of this Agreement have, jurisdiction over all or any portion of the gaming
activities of Station or any of the Subsidiaries, or over ownership of an
interest in an entity engaged in gaming activities, or any successor to any
such authority.

 

“Gaming Laws” means those laws
pursuant to which any Gaming Authority possesses regulatory, licensing or
permit authority over gaming or the ownership or management thereof within any
jurisdiction and, within the State of Nevada, specifically, the Nevada Gaming
Control Act, as codified in NRS Chapter 463, as amended from time to time,
and the regulations of the Nevada Gaming Authorities promulgated thereunder, as
amended from time to time.

 

“Gaming License” shall mean all
licenses, consents, permits, approvals, authorizations, registrations, findings
of suitability, franchises, entitlements and orders of registration issued by
any Gaming Authority necessary for or relating to the conduct of activities or
the ownership of an interest in an entity engaged in activities under the
Gaming Laws.

 

“Holding” has the meaning set forth in
the preamble hereto.

 

“Initial Public Offering” means the
closing of the first firm commitment underwritten public offering pursuant to a
Registration Statement that became effective after the date hereof covering the
offer and sale of Capital Stock for the account of Station or any Subsidiary or
any successor thereof (including Newco) that owns or controls substantially all
of the assets of Station or its successors to the public, which results in such
Capital Stock being 

 

4

listed for trading on the New York Stock Exchange, American Stock
Exchange or the NASDAQ Global Market or any other national securities exchange.

 

“Major Action” has the meaning set
forth in Section 2.1(f).

 

“Member” has the meaning set forth in
the preamble hereto.

 

“Merger Agreement” has the meaning set
forth in the Recitals hereof.

 

“Named Executive Director” has the
meaning set forth in Section 2.1(a)(i).

 

“Named Executive Members” means FCP Class B
Holdco LLC, a Nevada limited liability company, FJF Investco, LLC, a Nevada
limited liability company, and LJF Investco, LLC, a Nevada limited liability
company, in such Persons’ capacities as Members of FCP and Fertitta Partners.

 

“Named Executive Designees” means FJF
Investco, LLC, a Nevada limited liability company, and/or LJF Investco, LLC, a
Nevada limited liability company; provided that such Person has obtained all
necessary approvals from the Gaming Authorities.

 

“Named Executive Member Loan” has the
meaning set forth in Section 4.1.

 

“Named Executive Member Loan Amount”
has the meaning set forth in Section 4.1.

 

“Named Executive Officers” means Frank
J. Fertitta III and Lorenzo J. Fertitta.

 

“Newco” means the resulting publicly
traded company following the consummation of an Initial Public Offering.

 

“Non-voting Stockholders” means
Holding and Fertitta Partners.

 

“NRS” means the Nevada Revised
Statutes as in effect on the date hereof and as amended hereafter from time to
time.

 

“Offering Member” has the meaning set
forth in Section 3.5.1(a).

 

“Offering Stockholder” has the meaning
set forth in Section 3.4.1(a).

 

“Permitted Transfer” means (a) any
Transfer of Shares or Units, as applicable, by an Equityholder who is not an
individual to any Affiliate of such Equityholder; (b) any redemptions and
other repurchases of Shares or Units by FCP, Fertitta Partners or Station, as
applicable, or any Subsidiary thereof from an employee in connection with the
termination of his or her employment with FCP, Fertitta Partners, Station or
any Subsidiary pursuant to this Agreement, the FCP Operating Agreement, the
Fertitta Partners Operating Agreement, or such employee’s employment agreement;
(c) any pledge of Shares or Class A Units or Class B Units, as
applicable, made pursuant to a bona fide loan transaction which creates a mere
security interest (but not including any foreclosure of such pledge); (d) any
Transfer of Shares or Class A 

 

5

Units or Class B Units, as applicable, by an individual, to a
Family Trust with respect to such individual, or otherwise for estate planning
or similar purposes solely to such individual’s Family Members; and (e) any
distribution by the Sponsor Member of Units of FCP to the limited partners of
such Sponsor Member and/or such Sponsor Member’s parent entities.

 

“Person” means any individual,
partnership, limited liability company, association, corporation, trust or
other entity.

 

“Registration Statement” means, in
connection with the public offering and sale of Equity Interests of Station or
any Subsidiary or any successor thereof (including Newco) that owns or controls
substantially all of the assets of Station, a registration statement (including
pursuant to Rule 415 under the Securities Act) in compliance with the
Securities Act.

 

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

 

“Selling Member” has the meaning set
forth in Section 3.5.2.

 

“Selling Stockholder” has the meaning
set forth in Section 3.4.2.

 

“Share Drag Sale” has the meaning set
forth in Section 3.4.3(a).

 

“Share Buyer” has the meaning set
forth in Section 3.4.2.

 

“Share Offer” has the meaning set
forth in Section 3.4.1(a)(ii).

 

“Share Offer Letter” has the meaning
set forth in Section 3.4.1(a).

 

“Share Offer Period” has the meaning
set forth in Section 3.4.1(a)(ii).

 

“Share Offerees” has the meaning set
forth in Section 3.4.1(a).

 

“Share Purchaser” has the meaning set
forth in Section 3.4.3(a).

 

“Share Tag Along Notice” has the
meaning set forth in Section 3.4.2.

 

“Share Tag Sale” has the meaning set
forth in Section 3.4.2.

 

“Share Tag Seller” has the meaning set
forth in Section 3.4.2.

 

“Shares” means the Common Stock and
any and all other Capital Stock of Station.

 

“Side Letter Agreement” means that
certain letter agreement dated as of the date hereof by and among the Sponsor
Member, FJF Investco, LLC, a Nevada limited liability company, Frank J.
Fertitta III, LJF Investco, LLC, a Nevada limited liability company, and
Lorenzo J. Fertitta.

 

“Sponsor Director” has the meaning set
forth in Section 2.1(a)(i).

 

6

“Sponsor Member” means FC Investor,
LLC, a Delaware limited liability company, in such Person’s capacity as a
Member of FCP.

 

“Station” has the meaning set forth in
the preamble hereto.

 

“Station Stockholder” has the meaning
set forth in the preamble hereto.

 

“Subject Units” has the meaning set
forth in Section 3.5.1(a).

 

“Subject Shares” has the meaning set
forth in Section 3.4.1(a).

 

“Subsidiaries” means all Persons in
which Station owns, directly or indirectly, a majority of the Voting Stock or
is a general partner or otherwise has the power to control, by agreement or
otherwise, the management and general business affairs of such other Person.

 

“Supermajority” means a majority of
the Board of Directors, including at least one Named Executive Director and one
Sponsor Director, and a majority of the Board of Managers, including at least
one Named Executive Director and one Sponsor Director.

 

“Tag Along Shares” has the meaning set
forth in Section 3.4.2.

 

“Tag Along Units” has the meaning set
forth in Section 3.5.2.

 

“Transfer,” “Transferee” and “Transferor”
have the respective meanings set forth in Section 3.1.

 

“Unit Buyer” has the meaning set forth
in Section 3.5.2.

 

“Unit Purchaser” has the meaning set
forth in Section 3.5.3(a).

 

“Unit Drag Sale” has the meaning set
forth in Section 3.5.3(a).

 

“Unit Offer” has the meaning set forth
in Section 3.5.1(ii).

 

“Unit Offer Letter” has the meaning
set forth in Section 3.5.1(a).

 

“Unit Offer Period” has the meaning
set forth in Section 3.5.1(ii).

 

“Unit Offerees” has the meaning set
forth in Section 3.5.1(a).

 

“Unit Tag Along Notice” has the
meaning set forth in Section 3.5.2.

 

“Unit Tag Sale” has the meaning set
forth in Section 3.5.2.

 

“Unit Tag Seller” has the meaning set
forth in Section 3.5.2.

 

“Units” with respect to any Member,
means the units representing such Member’s interest in FCP or Fertitta
Partners, as applicable, as set forth in the books and records of FCP or
Fertitta Partners, respectively.

 

7

“VoteCo
Sponsor Member” means Thomas J. Barrack, Jr. or such Person who is the
successor to Thomas J. Barrack, Jr. as Chairman and Chief Executive Officer at
Colony Capital, LLC or is designated thereby and is the Transferee of interests
in FCP VoteCo pursuant to the terms of the FCP VoteCo Operating Agreement;
provided that such Person has obtained all necessary approvals from the Gaming
Authorities.

 

“Voting
Stock” of any Person means any Capital Stock or other Equity Interests of
any class or classes of such Person whose holders are entitled under ordinary
circumstances (irrespective of whether at the time stock or other equity
interests of any other class or classes shall have or might have voting power
by reason of the happening of any contingency) to vote for the election of a
majority of the directors, managers, trustees or other governing body of such
Person.

 

Rules of
Interpretation. Unless the context otherwise clearly requires:  (a) a term has the meaning assigned to it;
(b) “or” is not exclusive; (c) wherever from the context it appears
appropriate, each term stated in either the singular or the plural shall
include the singular and the plural, and pronouns stated in either the
masculine, feminine or neuter shall include the masculine, feminine and neuter;
(d) provisions apply to successive events and transactions; (e) all references
in this Agreement to “including” shall be deemed to be followed by the phrase
“without limitation”; (f) all references in this Agreement to designated
“Articles,” “Sections,” “paragraphs,” “clauses” and other subdivisions are to
the designated Articles, Sections, paragraphs, clauses and other subdivisions
of this Agreement, and the words “herein,” “hereof,” “hereunder” and other
words of similar import refer to this Agreement as a whole and not to any
particular Article, Section, paragraph, clause or other subdivision; and (g)
any definition of or reference to any agreement, instrument, document, statute
or regulation herein shall be construed as referring to such agreement,
instrument, document, statute or regulation as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein).

 

ARTICLE 2. BOARD OF DIRECTORS OF STATION

 

Section 2.1                                      Board
of Directors. A Board of Directors shall be established to manage the
business and affairs of Station in accordance with the following terms, and FCP
VoteCo agrees that it will at all times take all such action as is reasonably
required to elect the Board of Directors in accordance with the following
terms:

 

(a)                                  Appointment
and Term of Directors; Vacancies.

 

(i)                                     The
Board of Directors shall consist of up to five (5) directors, or such other
number of members as may be agreed by a Supermajority of the Board of Directors
and shall initially consist of three (3) directors. Subject to Sections
2.1(a)(ii), 2.1(a)(iii), 2.1(a)(iv) and 2.1(a)(v), the Named
Executive Officers shall have the right to appoint up to three (3) members of
the Board of Directors (each, a “Named Executive Director,” and,
collectively, the “Named Executive Directors”), and the VoteCo Sponsor
Member shall have the right to appoint up to two (2) members of the Board of
Directors (each, a “Sponsor Director,” and, collectively, the “Sponsor
Directors”). The Named Executive

 

8

 

Officers shall initially appoint Frank J.
Fertitta III and Lorenzo J. Fertitta as Named Executive Directors and the
VoteCo Sponsor Member shall initially appoint Thomas J. Barrack, Jr. as a
Sponsor Director. Any member of the Board of Directors may resign at any
time upon written notice to Station; provided, however, that,
subject to applicable law, for so long as Frank J. Fertitta III and Lorenzo J.
Fertitta serve as a Chief Executive Officer and/or President of Station, the
Named Executive Officers shall appoint Frank J. Fertitta III and Lorenzo J.
Fertitta to serve as Named Executive Directors. Any such resignation shall take
effect at the time specified therein or, if the time be not specified, upon
receipt thereof, and the acceptance of such resignation, unless required by the
terms thereof, shall not be necessary to make such resignation effective. The
Named Executive Officers shall have the sole right to remove the Named
Executive Directors and the VoteCo Sponsor Member shall have the sole right to
remove the Sponsor Directors; provided that, the VoteCo Sponsor Member
shall remove a Sponsor Director, and the Named Executive Officers shall remove
a Named Executive Director, if there is Cause to remove such Sponsor Director
or Named Executive Director. Subject to Sections 2.1(a)(ii), 2.1(a)(iii),
2.1(a)(iv) and 2.1(a)(v), should any individual designated
or elected as a member of the Board of Directors be unwilling or unable to
serve, or otherwise cease to serve (including by means of removal), a Named
Executive Director vacancy shall be filled by the Named Executive Members and a
Sponsor Director vacancy shall be filled by the VoteCo Sponsor Member.

 

(ii)                                  Upon
the death or Disability of both of the Named Executive Officers, the Board of
Directors shall be appointed as follows: 
(A) if the Named Executive Members continue to own, in the aggregate,
more than fifty percent (50%) of the total Class A Units and Class B
Units issued by FCP and Class A Units and Class B Units issued by
Fertitta Partners (collectively, the “Fertitta Units”) to the Named
Executive Members on the date hereof, the Named Executive Designees shall have
the right to appoint two (2) members of the Board of Directors, which
directors shall be deemed to be Named Executive Directors, and the VoteCo
Sponsor Member shall be entitled to appoint three (3) members of the Board
of Directors, which directors shall be deemed to be Sponsor Directors; (B) if
such Named Executive Members continue to own, in the aggregate, fifty percent
(50%) or less but greater than twenty-five percent (25%) of the total number of
Fertitta Units issued to the Named Executive Members on the date hereof, the
Named Executive Designees shall have the right to appoint one (1) member
of the Board of Directors, the VoteCo Sponsor Member shall be entitled to
appoint three (3) members of the Board of Directors and one (1) member
of the Board of Directors shall be appointed as mutually agreed by such Named
Executive Designees and the VoteCo Sponsor Member; (C) if such Named
Executive Members continue to own, in the aggregate, twenty-five percent (25%)
or less but greater than ten percent (10%) of the total number of Fertitta
Units issued to the Named Executive Members on the date hereof, one (1) member
of the Board of Directors shall be appointed as mutually agreed by the Named
Executive Designees and the VoteCo Sponsor Member, and the VoteCo Sponsor
Member shall be entitled to appoint four (4) members of the Board of
Directors; and (D) if such Named Executive Members continue to own, in the
aggregate, less than ten percent (10%) of the total number of Fertitta Units issued
to the Named Executive Members on the date hereof, the Named Executive
Designees shall not have the right to appoint any members to the Board of
Directors and all members of the Board of Directors shall be 

 

9

appointed by the VoteCo Sponsor Member; provided
that if the members of the Board of Directors are being appointed pursuant to Section 2.1(a)(ii)(B) or
2.1(a)(ii)(C), then no action of the Board of Directors shall require
the approval of a Supermajority of the Board of Directors; provided, further,
that the Named Executive Designees may only appoint those individuals
listed in the Side Letter Agreement as their designee(s) to the Board of
Directors, and shall make such appointments in the manner set forth in the Side
Letter Agreement, or such other individual(s) reasonably acceptable to the
VoteCo Sponsor Member; provided, further, that the Named
Executive Directors appointed pursuant to Section 2.1(a)(ii)(A) shall
be required to make timely decisions and shall not be permitted to abstain from
any decision that requires the approval of a Supermajority of the Board of
Directors.

 

(iii)                               In
the event at least one Named Executive Officer continues to serve as a member
of the board of directors of Station and as Chief Executive Officer and/or
President of Station, the Board of Directors shall be appointed as
follows:  if the Named Executive Members
continue to own, in the aggregate, twenty-five percent (25%) or less of the
total number of Fertitta Units issued to the Named Executive Members on the
date hereof, the Named Executive Officers and the Named Executive Designees
shall have the right to appoint two (2) members of the Board of Directors,
which directors will be deemed to be Named Executive Directors, and the VoteCo
Sponsor Member shall be entitled to appoint three (3) members of the Board
of Directors, which directors will be deemed to be Sponsor Directors; provided
that if the members of the Board of Directors are being appointed pursuant to
this Section 2.1(a)(iii) and the Named Executive Members
continue to own, in the aggregate, less than ten percent (10%) of the total
number of Fertitta Units issued to the Named Executive Members on the date
hereof, then no action of the Board of Directors shall require the approval of
a Supermajority of the Board of Directors.

 

(iv)                              In
the event at least one Named Executive Officer continues to serve as a member
of the board of directors of Station but neither Named Executive Officer is
serving as the Chief Executive Officer and/or the President of Station, the
Board of Directors shall be appointed as follows:  (A) if the Named Executive Members
continue to own, in the aggregate, more than twenty-five percent (25%) of
the total number of Fertitta Units issued to the Named Executive Members on the
date hereof, the Named Executive Officers and the Named Executive Designees
shall have the right to appoint two (2) members of the Board of Directors,
which directors shall be deemed to be Named Executive Directors and the VoteCo
Sponsor Member shall be entitled to appoint three (3) members of the Board
of Directors, which directors shall be deemed to be Sponsor Directors; (B) if
the Named Executive Members continue to own, in the aggregate,
twenty-five percent (25%) or less but greater than ten percent (10%)
of the total number of Fertitta Units issued to the Named Executive Members on
the date hereof, the Named Executive Officers and the Named Executive Designees
shall have the right to appoint two (2) members of the Board of Directors,
which directors shall be deemed to be Named Executive Directors, the VoteCo
Sponsor Member shall have the right to appoint two (2) members of the
Board of Directors, which directors shall be deemed to be Sponsor Directors,
and one (1) member of the Board of Directors shall be appointed as
mutually agreed by the Named Executive Officers and the Named Executive
Designees and the 

 

10

VoteCo Sponsor Member; and (C) if the
Named Executive Members continue to own, in the aggregate, less than ten
percent (10%) of the total number of Fertitta Units issued to the Named
Executive Members on the date hereof, the Named Executive Officers and the
Named Executive Designees shall have the right to appoint two (2) members
of the Board of Directors, which directors shall be deemed to be Named
Executive Directors, and the VoteCo Sponsor Member shall have the right to
appoint three (3) members of the Board of Directors; provided
that if the members of the Board of Directors are being appointed pursuant to Section 2.1(a)(iv)(B),
2.1(a)(iv)(C) or 2.1(a)(iv)(D), then no action of the Board
of Directors shall require the approval of a Supermajority of the Board of
Directors.

 

(v)                                 In
the event that the members of the Board of Directors are not being appointed
pursuant to Section 2.1(a)(ii) and neither Named Executive
Officer is serving as (i) the Chief Executive Officer and/or President of
Station nor (ii) as a member of the Board of Directors of Station, then
the VoteCo Sponsor Member shall have the right to appoint all of the members of
the Board of Directors and no action of the Board of Directors shall require
the approval of a Supermajority of the Board of Directors.

 

(b)                           Budget.
If a Supermajority of the Board of Directors is required to approve the
establishment of the annual budget or business plan and fails to agree on the
establishment of such annual budget or business plan, the members of the Board
of Directors shall work in good faith to resolve such dispute in a timely
manner and each item in the annual budget or business plan shall be 105% of
such item in the previous year’s annual budget or business plan, subject to any
equitable adjustments for acquisitions, dispositions, new developments or other
material changes to Station’s business.

 

(c)                            Quorum
and Voting. During such period of time as any action of the Board of
Directors could require approval by a Supermajority of the Board of Directors
pursuant to the terms of this Agreement, the presence, in person or by proxy,
of at least one Named Executive Director and one Sponsor Director shall
constitute a quorum for the transaction of business. At any time when no
possible action of the Board of Directors would require the approval of a
Supermajority of the Board of Directors, a whole number of directors equal to
at least a majority  of the entire
Board of Directors, either present or represented by proxy, shall constitute a
quorum for the transaction of business, but if there be less than a quorum at
any meeting of the Board of Directors, a majority of the directors present may adjourn
the meeting from time to time, provided that notice of adjournment and
the time and place of the rescheduled meeting shall be given to all of the
directors not then in attendance. Except as otherwise provided by this
Agreement, the vote of a majority of the directors present at a meeting at
which a quorum is present or at an adjourned meeting shall be the act of the
Board of Directors.

 

(d)                           Proxies.
Each director entitled to vote at a meeting of the Board of Directors may authorize
another director to act for him or her by proxy. Each proxy shall be signed by
the director giving such proxy.

 

(e)                            Expenses;
Compensation. Station shall pay all out-of-pocket expenses incurred by each
director in connection with attending regular and special meetings of the Board
of Directors and any committee of the Board of Directors. Members of the Board
of Directors 

 

11

shall not be entitled to receive compensation for services to Station
or its Subsidiaries in their capacities as members of the Board of Directors or
the board of directors of any Subsidiary.

 

(f)                              Major
Actions. Notwithstanding anything to the contrary in this Agreement, the consent
of a Supermajority of the Board of Directors shall be required for Station to,
or to authorize any of the Subsidiaries to, take any of the actions set forth
on Schedule I (each, a “Major Action”).

 

Section 2.2                                       Station
Executives.

 

So long as the Named Executive Members hold,
in the aggregate, two and one-half percent (2.5%) or more of the total number
of issued and outstanding Units of FCP and Fertitta Partners, each Named
Executive Officer shall retain the title, rights, duties and responsibilities held
at Station immediately prior to the date of this Agreement. In the event of the
death, resignation, Disability or termination of the Chief Executive Officer or
President of Station, as applicable, his successor shall be nominated by the
other Named Executive Officer and approved in good faith by the consent of a
Supermajority of the Board of Directors, which approval shall not be
unreasonably withheld.

 

Section 2.3                                       Other
Activities and Competition.

 

The members of the Board of Directors shall
not be required to manage Station as their sole and exclusive function. The
members of the Board of Directors may engage in or possess any interests
in business ventures and may engage in other activities of every kind and
description independently or with others in addition to those relating to
Station except to the extent expressly provided otherwise in agreements between
or among the parties hereto or their Affiliates. Each Stockholder authorizes,
consents to and approves of such present and future activities by such Persons.
Neither Station nor any Station Stockholder shall have any right by virtue of
this Agreement or the relationship created hereby in or to other ventures or
activities of the members of the Board of Directors or to the income or
proceeds derived therefrom except to the extent expressly provided otherwise in
agreements between or among the parties hereto or their Affiliates.

 

Section 2.4                                       Directors’
Insurance.

 

Station shall maintain directors’ and
officers’ liability insurance covering the full Board of Directors in an amount
not less than $40,000,000 or, if such amount is not available at a reasonable
cost, such other amount as is approved by a Supermajority of the Board of
Directors and “key man” life insurance for each of the Named Executive Officers
in an amount to be approved by a Supermajority of the Board of Directors.

 

Section 2.5                                       Additional Shares; Preemptive Rights.

 

(g)                           Station
may, at the discretion of a Supermajority of the Board of Directors and subject
to the receipt of all required Gaming Licenses under Gaming Laws, issue
additional Shares at any time and from time to time to any Person for any
amount of consideration, if any, as determined in good faith by the Board of
Directors;

 

(h)                           (i) 
In the event that Station shall sell or issue Equity Interests of Station to
any Person, each Non-voting Stockholder shall have the preemptive right to
purchase or subscribe to such Equity Interests on the same terms and conditions
as such interests are being offered and sold, such subscription being
conditioned upon the actual sale of such Equity Interests; provided, however,
that if the Equity Interests to be sold or issued by Station are Voting Stock,
then FCP VoteCo, and not the Non-voting Stockholders, shall have the preemptive

 

12

right to purchase or subscribe to such Voting Stock on the same terms
and conditions as such Voting Stock is being offered and sold or issued; provided,
further, that such preemptive rights shall not extend to Equity
Interests if such interests are to be issued by Station (1) to effect a
merger, (2) pursuant to employee stock option plans, employee stock
purchase plans, or other employee benefit plans established exclusively for
compensatory purposes, which plans are approved by the Board of Directors, (3) under
a plan of reorganization approved in a proceeding under any applicable act of
Congress relating to the reorganization of corporations, (4) upon
conversion of or exercise of convertible securities, warrants or options, (5) pursuant
to a public offering registered under the Securities Act, (6) in
connection with any stock split, stock dividend or recapitalization of Station
or (7) in connection with bona fide corporate partnering transactions or
other bona fide strategic transactions on terms approved by a Supermajority of
the Board of Directors the primary purpose of which are not to raise capital
for Station. A Non-voting Stockholder’s pro rata share, for purposes of this Section 2.5,
is the ratio of the number of shares of Common Stock owned by such Non-voting
Stockholder immediately prior to such issuance bears to the total number of
shares of Common Stock held by all Non-voting Stockholders immediately prior to
such issuance.

 

(ii)                                  Written notice
specifying the contemplated date the new Equity Interests are to be sold or
issued and the offering terms thereof shall be delivered by Station to each of
the Non-voting Stockholders or FCP VoteCo, as applicable, no later than
thirty (30) days or earlier than sixty (60) days prior to such
contemplated sale or issue date, and each such Non-voting Stockholder or FCP
VoteCo, as applicable, shall have until ten (10) days prior to the
contemplated sale or issue date specified in such notice to inform Station
of its intentions as to the exercise of the preemptive right provided herein.
If no written reply is received by Station prior to the tenth (10th) day
before the contemplated sale date specified in such notice, Station may treat
the preemptive right of such non-responding holder to have been waived for
that, but only for that, transaction. If the offering of Equity Interests is
not fully subscribed by the Non-voting Stockholders or FCP VoteCo, as
applicable, the remaining unsubscribed Equity Interests shall be reoffered by
Station to the Station Stockholders that purchase their full allotment upon the
terms set forth in this paragraph except that such Station Stockholders must
exercise their purchase rights within seven (7) days of receipt of
such reoffer. Any Equity Interests that are not purchased by the Non-voting
Stockholders or FCP VoteCo pursuant to this Section 2.5 may be
sold by Station to such purchasers as are approved by the Board of Directors.

 

ARTICLE 3. TRANSFERS OF
INTERESTS

 

Section 3.1                                       General.

 

(a)                            No
Equityholder may sell, assign, pledge or in any manner dispose of or
create or suffer the creation of a security interest in or any encumbrance on
all or a portion of its Shares of Station or Units of FCP or Fertitta Partners,
as applicable (the commission of any such act being referred to as a “Transfer,”
any person who effects a Transfer being referred to as a “Transferor”
and any person to whom a Transfer is effected being referred to as a “Transferee”),
except in accordance with the terms and conditions set forth in this Article 3,
the FCP Operating Agreement and the Fertitta Partners Operating Agreement. No
Transfer of Shares or Units, as applicable, shall be effective until such time
as all requirements of this Article 3 in respect thereof have been
satisfied and, if consents, approvals or waivers are required by the Board of 

 

13

Directors, all of same shall have been confirmed in writing by the
Board of Directors. No Transfer of Shares or Units, as applicable, shall be
effective without the receipt of all Gaming Licenses required under applicable
Gaming Laws. Any Transfer or purported Transfer of Shares or Units, as
applicable, not made in accordance with this Agreement shall be null and void
and of no force or effect whatsoever.

 

(b)                           Notwithstanding
the foregoing, no Member may Transfer all or any portion of its (i) Class A
Units other than (A) pursuant to a Permitted Transfer or (B) pursuant
to Sections 3.5.1, 3.5.2 and 3.5.3 or (ii) Class B
Units or Class C Units other than (x) pursuant to a Permitted Transfer or
(y) pursuant to Sections 3.5.2 and 3.5.3, in any case subject to
the terms and conditions of the FCP Operating Agreement and the Fertitta
Partners Operating Agreement; provided, that no Member may Transfer
all or any portion of its Class A Units prior to the fourth (4th)
anniversary of the date hereof, unless such Transfer is approved by the consent
of a Supermajority of the Board of Directors of Station, other than (i) a Permitted
Transfer or (ii) in the case of the Named Executive Members, upon the
death or Disability of both of the Named Executive Officers.

 

Section 3.2                                       Further Requirements with respect to Transfers of
Shares.

 

In addition to the other requirements of Section 3.1,
and unless waived in whole or in part by the Board of Directors (to
the extent waivable under applicable law), no Transfer of Shares of Station,
including a Permitted Transfer, may be made unless the following
conditions are met:

 

(a)                            The
Transferor shall have paid all reasonable costs and expenses, including
attorneys’ fees and disbursements and the cost of the preparation, filing and
publishing of any amendment to this Agreement, incurred by Station in
connection with the Transfer;

 

(b)                           The
Transferor shall have delivered to Station a fully executed copy of all
documents relating to the Transfer, executed by both the Transferor and the
Transferee, and the agreement of the Transferee in writing and otherwise in form and
substance acceptable to the Board of Directors to be bound by the terms of this
Agreement.

 

(c)                            The Board
of Directors shall have been reasonably satisfied, including, at its option,
having received an opinion of counsel to Station reasonably acceptable to the
Board of Directors, that:

 

(i)                                     the
Transfer will not violate the Securities Act or any other applicable Federal,
state or non-United States securities laws, rules or regulations;

 

(ii)                                  the
Transfer will not cause some or all of the assets of Station to be “plan assets”
or the investment activity of Station to constitute “prohibited transactions”
under ERISA or the Code;

 

(iii)                               the
Transferee shall have obtained all necessary Gaming Licenses; and

 

(iv)                              the
Transfer will not cause Station to be an investment company required to be
registered under the Investment Company Act of 1940, as amended.

 

14

Any waivers from the Board of Directors under
this Section 3.2 shall be given or denied in the good faith and
reasonable discretion of a Supermajority of the Board of Directors. Station
shall reflect each Transfer and admission authorized under this Article 3
(including the terms and conditions imposed thereon by the Board of Directors)
by preparing an amendment to this Agreement dated as of the date of such
Transfer. The form and content of all documentation delivered to the Board
of Directors under this Section 3.2 shall be subject to the
approval of the Board of Directors, which approval may be granted or
withheld in the good faith and reasonable discretion of the Board of Directors.

 

Section 3.3                                       Indirect Transfers.

 

If any Equityholder is an entity that was
formed primarily for the purpose of acquiring Shares or Units, as applicable,
or that has no substantial assets other than Shares or Units, such Equityholder
agrees that (i) its Equity Interests (and other Equity Interests in any
similar entities controlling such entity) will note the restrictions contained
in this Article 3 and (ii) none of such Equity Interests may be
transferred to any Person other than in accordance with the terms and
provisions of this Article 3 as if such Equity Interests were
Shares or Units. No Equityholder shall Transfer any Shares or Units if such
Transfer would violate the intention of this Section 3.3.
Notwithstanding the foregoing, the provisions of this Section 3.3
shall not be applicable to (a) the transfer of any limited liability
company membership interests titled “Class B Units” in the Sponsor Member
or (b) the transfer or issuance of any limited liability company
membership interests titled “Class B Units” in FCP Class B Holdco LLC
in connection with the termination of employment by Station or its Subsidiaries
of any holder thereof or the commencement of employment by Station or its
Subsidiaries of any recipient thereof.

 

Section 3.4                          Transfer
Provisions with respect to Station  

 

3.4.1            Right of First
Offer.

 

(a)                            Prior to
making any Transfer (other than pursuant to a Permitted Transfer) of Shares
(the “Subject Shares”), a Non-voting Stockholder (an “Offering Stockholder”)
shall deliver to Station and each other Non-voting Stockholder owning more than
ten percent (10%) of the total outstanding number of Shares of Station at
the time of such Transfer (the “Share Offerees”) a letter (the “Share
Offer Letter”) signed by such Offering Stockholder setting forth:

 

(i)                                     the
prospective purchase price per Share in cash for the Subject Shares;

 

(ii)                                  such
Offering Stockholder’s offer, irrevocable by its terms for thirty (30)
Business Days following the delivery of the Share Offer Letter (such period,
the “Share Offer Period”), to sell to the Share Offerees, all but not
less than all  the Subject Shares,
for a purchase price per Share equal to the purchase price per Share in cash
set forth in such Share Offer Letter (the “Share Offer”); and

 

(iii)                               closing
arrangements and, to the extent such date is determinable, a closing date
(which shall be subject to the attainment of approvals from the applicable
Gaming Authorities) for any purchase and sale that may be effected by the
Share Offerees pursuant to this Section 3.4.1.

 

15

During the Share Offer Period, the Share
Offerees shall have the right to enter into definitive agreements to purchase
all but not less than all the Subject Shares for the same price per Share set
forth in the Share Offer.

 

If more than one Share Offeree elects to
purchase the Subject Shares and the aggregate number of Subject Shares elected
to be purchased by all Share Offerees exceeds the actual number of Subject
Shares, the Subject Shares shall be allocated among such Share Offerees pro
rata according to the number of non-voting Shares of Station owned by each such
Share Offeree relative to the aggregate number of non-voting Shares of Station
owned by all such Share Offerees, up to the number of Subject Shares elected to
be purchased by such Share Offeree.

 

If, upon the expiration of the Share Offer
Period, the Share Offerees elect to not exercise the right of first offer with
respect to all of the Subject Shares, the Offering Stockholder may sell
all, but not less than all, of such Subject Shares to a third party for not
less than ninety-five percent (95%) of the purchase price per Share
contained in such Share Offer; provided, however, that any such
third party must execute a joinder agreement to this agreement in a form reasonably
satisfactory to a Supermajority of the Board of Directors pursuant to which
such third party agrees to be a “Station Stockholder” for all purposes
hereunder. Prior to consummating any such sale, the Offering Stockholder shall,
upon request from the Share Offerees or Station, provide the requesting party
with reasonable supporting documentation with respect to the price per Share of
any such sale so as to demonstrate such Offering Stockholder’s compliance with
the provisions of the preceding sentence. Station shall provide such third
party reasonable access to its books and records during reasonable business
hours and upon reasonable advance notice at the sole cost and expense of the
inspecting third party. If such sale has not been completed within
two hundred seventy (270) calendar days of the closing date
proposed in the Share Offer Letter, the Subject Shares covered by such Share
Offer may not thereafter be sold by such Offering Stockholder unless the
procedures set forth in this Section 3.4.1 shall have again been
complied with.

 

(b)                           Sale of
Subject Shares. If one or more of the Share Offerees accept in writing the
Share Offer to purchase all but not less than all of  the Subject Shares, the closing of the purchase and sale
pursuant to such acceptance shall take place at the offices of Station on the
date set forth in the Share Offer Letter, or at such other place or on such
other date as the applicable parties may agree or such later date as may be
necessary to obtain any required Gaming Licenses and other regulatory
approvals. In connection with such purchase and sale, each party shall execute
and deliver all agreements, certificates and other documentation reasonably
requested by, and in form and substance reasonably satisfactory to, the
other party to effect the purchase of the Subject Shares hereunder, and the
Offering Stockholder shall execute and deliver certificates representing the
Subject Shares duly endorsed for transfer.

 

3.4.2                        Tag Along Rights.

 

Subject to compliance with Sections 3.1
and 3.4.1, at least thirty (30) days prior to the sale of any
non-voting Shares of Station by one or more Station Stockholders (collectively,
the “Selling Stockholder”) in one or more series of related
transactions to one or more related Persons (collectively, the “Share Buyer”)
other than pursuant to a Permitted Transfer or a sale to Offerees pursuant to Section 3.4.1
(each, a “Share Tag Sale”), such Selling Stockholder shall provide to
each other Non-voting Stockholder (each, a “Share Tag 

 

16

Seller”) a notice (a
“Share Tag Along Notice”) setting forth in reasonable detail the terms
of such sale, the aggregate number of non-voting Shares such Share Buyer wishes
to purchase (the “Tag Along Shares”) and identifying the name and
address of the Share Buyer. Upon the written request of any Share Tag Seller
made prior to the later of (x) the fifteenth (15th) day after
the day the Share Tag Along Notice is received by such Share Tag Seller and
(y) five (5) Business Days following the expiration of the Share
Offer Period in respect of such Share Tag Sale under Section 3.4.1
above, subject to applicable Gaming Laws and the receipt of all required Gaming
Licenses, the Selling Stockholder proposing to make the sale shall cause the
Share Buyer to purchase from such Share Tag Seller the number of non-voting
Shares held by such Share Tag Seller equal to the lesser of (i) the number
of non-voting Shares requested to be included in the Share Tag Sale by such
Share Tag Seller and (ii) a number determined by multiplying (x) a
fraction, the numerator of which is the total number of non-voting Shares held
by such Tag Seller, and the denominator of which is the total number of
non-voting Shares held by all of the Share Tag Sellers and the Selling
Stockholder by (y) the number of Tag Along Shares to be sold in such Share Tag
Sale. Such purchase shall be made on the same date and on terms and conditions
at least as favorable to such Share Tag Seller as the terms and conditions
contained in the Share Tag Along Notice delivered in connection with such
proposed transaction. Each Share Tag Seller shall take all actions which the
Selling Stockholder deems reasonably necessary or desirable to consummate such
transaction, including (i) entering into agreements with third parties
which may include representations, indemnities, holdbacks and escrows, provided,
that such agreements are on terms substantially identical or more favorable to
such Share Tag Seller than those agreed to by the Selling Stockholder (except
that, in the case of representations, warranties, holdbacks and escrows
pertaining specifically to the Selling Stockholder, each Share Tag Seller shall
make comparable representations, warranties, holdbacks and escrows, in each
case to the extent applicable and pertaining specifically to itself and only
itself); provided, further, that all representations, warranties,
conditions, holdbacks and escrows shall be of each the Selling Stockholder and
each Share Tag Seller severally and not jointly and that any liability to the
Selling Stockholder and the Share Tag Seller thereunder shall be borne by each
of them on a pro rata basis determined according to the number of Shares sold by
each of them, and (ii) obtaining all consents and approvals reasonably
necessary or desirable to consummate such transaction. The Share Tag Sellers
and the Selling Stockholder shall each pay its pro rata share (based upon the
portion of the gross proceeds each Share Tag Seller and the Selling Stockholder
are entitled to receive in such Share Tag Sale relative to the gross proceeds
of the Share Tag Sale) of any reasonable transaction costs associated with the
sale other than the legal expenses and selling commissions of the other
participants in the Share Tag Sale.

 

3.4.3                        Drag Along Rights.

 

(a)                            If a
Supermajority of the Board of Directors of Station approves a sale of all of
the Shares to a Person (the “Share Purchaser”) other than another
Station Stockholder or an Affiliate of a Station Stockholder (a “Share Drag
Sale”), subject to applicable Gaming Laws, the Station Stockholders selling
such interests (the “Dragging Stockholders”) may, at their option,
require each other Station Stockholder (the “Dragged Stockholders”) to
sell all of the Shares held by such Dragged Stockholders.

 

17

(b)                           Subject to
the receipt of all required Gaming Licenses, the Dragging Stockholders shall
give each Dragged Stockholder not less than fifteen (15) days prior to the
date of the proposed sale, a notice summarizing the economic terms of such
Share Drag Sale, including the purchase price, closing date and the identity of
the Share Purchaser. The Dragged Stockholder sale shall be made on the same
date, at the same price and on the same terms and conditions as provided with
respect to the sale of Shares by such Dragging Stockholder to such Share
Purchaser. In connection with any Share Drag Sale, each Dragged Stockholder
shall take such actions as may be reasonably required by the Dragging
Stockholders and shall otherwise cooperate in good faith with the Dragging
Stockholders. At the closing of a Share Drag Sale, each Dragged Stockholder
shall deliver to such Share Purchaser all documents and instruments as may be
reasonably requested by such Share Purchaser in connection with such Share Drag
Sale, against payment of the appropriate purchase price; provided that
the Dragged Stockholders shall not be required to make any representations and
warranties except those relating to title of their Shares, due authorization of
the Share Drag Sale and the absence of conflicts, which such representations
and warranties shall be made severally and not jointly and that the liability
of the Station Stockholders thereunder shall be borne by each of them on a pro
rata basis determined according to the aggregate proceeds received by each of
them in the Share Drag Sale and no Dragged Stockholder shall be required to
agree to, or be deemed to have agreed to, any non-financial terms, covenants
and agreements such as non-competition and non-solicitation agreements without
its express written consent. In the event that any such Share Drag Sale is
structured as a merger, consolidation or similar business combination, each
Station Stockholder agrees to vote in favor of the transaction and take all
action to waive any dissent, appraisal or other similar rights; provided,
further, that, notwithstanding the foregoing, each Dragged Stockholder may be
liable for breaches of representations and warranties about Station or the
Subsidiaries and their operations so long as such liability is not in excess of
such Dragged Stockholder’s pro rata percentage interest in the aggregate
proceeds of the Share Drag Sale.

 

(c)                            Upon
consummation of a Share Drag Sale, if a Dragged Stockholder has not delivered
any documents and instruments as contemplated by the preceding paragraph (b),
such Dragged Stockholder shall no longer be considered a holder of Shares, and
such Dragged Stockholder’s sole rights with respect to such Shares shall be to
receive the consideration receivable in connection with such Share Drag Sale
upon delivery of the appropriate documents and instruments.

 

Section 3.5                          Transfer
Provisions with respect to FCP and Fertitta Partners

 

3.5.1                        Right of First Offer.

 

(a)                            Prior to
making any Transfer (other than pursuant to a Permitted Transfer) of Class A
Units in FCP or Fertitta Partners (the “Subject Units”), a Member (an “Offering
Member”) shall deliver to FCP, Fertitta Partners and each Class A
Member owning more than ten percent (10%) of the total outstanding number
of Class A Units of FCP and Fertitta Partners at the time of such Transfer
(the “Unit Offerees”) a letter (the “Unit Offer Letter”) signed
by such Offering Member setting forth:

 

18

(i)                                     the
prospective purchase price per Class A Unit in cash for the Subject Units;

 

(ii)                                  such
Offering Member’s offer, irrevocable by its terms for thirty (30) Business
Days following the delivery of the Unit Offer Letter (such period, the “Unit
Offer Period”), to sell to the Unit Offerees, all but not less than all  the Subject Units, for a purchase price
per Class A Unit equal to the purchase price per Class A Unit in cash
set forth in such Unit Offer Letter (the “Unit Offer”); and

 

(iii)                               closing
arrangements and, to the extent such date is determinable, a closing date
(which shall be subject to the attainment of approvals from the applicable
Gaming Authorities) for any purchase and sale that may be effected by the
Unit Offerees pursuant to this Section 3.5.1.

 

During the Unit Offer Period, the Unit
Offerees shall have the right to enter into definitive agreements to purchase
all but not less than all the Subject Units for the same price per Class A
Unit set forth in the Unit Offer.

 

If more than one Unit Offeree elects to
purchase the Subject Units and the aggregate number of Subject Units elected to
be purchased by all Unit Offerees exceeds the actual number of Subject Units,
the Subject Units shall be allocated among such Unit Offerees pro rata
according to the number of Class A Units of FCP and Fertitta Partners
owned by each such Unit Offeree relative to the aggregate number of Class A
Units of FCP and Fertitta Partners owned by all such Unit Offerees, up to the
number of Subject Units elected to be purchased by such Unit Offeree.

 

If, upon the expiration of the Unit Offer
Period, the Unit Offerees elect to not exercise the right of first offer with
respect to all of the Subject Units, the Offering Member may sell all, but
not less than all, of such Subject Units to a third party for not less than
ninety-five percent (95%) of the purchase price per Class A Unit
contained in such Unit Offer. Prior to consummating any such sale, the Offering
Member shall, upon request from the Unit Offerees, FCP or Fertitta Partners,
provide the requesting party with reasonable supporting documentation with
respect to the price per Class A Unit of any such sale so as to
demonstrate such Offering Member’s compliance with the provisions of the
preceding sentence. FCP and Fertitta Partners shall provide such third party
reasonable access to its books and records during reasonable business hours and
upon reasonable advance notice at the sole cost and expense of the inspecting
third party. If such sale has not been completed within
two hundred seventy (270) calendar days of the closing date
proposed in the Unit Offer Letter, the Subject Units covered by such Unit Offer
may not thereafter be sold by such Offering Member unless the procedures
set forth in this Section 3.5.1 shall have again been complied
with.

 

(b)                           Sale of
Subject Units. If one or more of the Unit Offerees accept in writing the
Unit Offer to purchase all but not less than all of  the Subject Units, the closing of the purchase and sale
pursuant to such acceptance shall take place at the offices of FCP and Fertitta
Partners on the date set forth in the Unit Offer Letter, or at such other place
or on such other date as the applicable parties may agree or such later
date as may be necessary to obtain any required Gaming Licenses and other
regulatory approvals. In connection with such purchase and sale, each party
shall execute and deliver all agreements, certificates and other documentation 

 

19

reasonably requested by, and in form and substance reasonably
satisfactory to, the other party to effect the purchase of the Subject Units
hereunder, and the Offering Member shall execute and deliver certificates
representing the Subject Units duly endorsed for transfer.

 

3.5.2                        Tag Along Rights.

 

Subject to compliance with Sections 3.1
and 3.5.1, at least thirty (30) days prior to the sale of any Class A
Units of FCP and/or Fertitta Partners by one or more Members (collectively, the
“Selling Member”) in one or more series of related transactions to
one or more related Persons (collectively, the “Unit Buyer”) other than
pursuant to a Permitted Transfer or a sale to Unit Offerees pursuant to Section 3.5.1
(each, a “Unit Tag Sale”), such Selling Member shall provide to each
other Member of FCP and Fertitta Partners (if and only if the equity value of
FCP and Fertitta Partners is such that a sale of all assets of FCP and Fertitta
Partners for the aggregate equity value of FCP and Fertitta Partners implied by
the purchase price of the Class A Units being sold by the Member (and if
such equity value is not mathematically determinable assuming the highest
possible implied equity value) and the distribution of such amount pursuant to
the terms of the FCP Operating Agreement and the Fertitta Partners Operating
Agreement would have resulted in the Class B Members or Class C
Members of FCP and Fertitta Partners receiving distributions) (each, a “Unit
Tag Seller”) a notice (a “Unit Tag Along Notice”) setting forth in
reasonable detail the terms of such sale, the aggregate number of Units such
Unit Buyer wishes to purchase (the “Tag Along Units”) and identifying
the name and address of the Unit Buyer. Upon the written request of any Unit
Tag Seller made prior to the later of (x) the fifteenth (15th)
day after the day the Unit Tag Along Notice is received by such Unit Tag Seller
and (y) five (5) Business Days following the expiration of the Unit
Offer Period in respect of such Unit Tag Sale under Section 3.5.1
above, subject to applicable Gaming Laws and the receipt of all required Gaming
Licenses, the Selling Member proposing to make the sale shall cause the Unit
Buyer to purchase from such Unit Tag Seller the number of Units held by such
Unit Tag Seller equal to the lesser of (i) the number of Units requested
to be included in the Unit Tag Sale by such Unit Tag Seller and (ii) a
number determined by multiplying (x) a fraction, the numerator of which is the
total number of Units of FCP and Fertitta Partners held by such Unit Tag
Seller, and the denominator of which is the total number of Units of FCP and
Fertitta Partners held by all of the Unit Tag Sellers and the Selling Member by
(y) the number of Tag Along Units to be sold in such Unit Tag Sale. Such
purchase shall be made on the same date, at a price equal to a proportionate
share of the aggregate purchase price paid in such Unit Tag Sale (which
proportionate share shall be based upon the amount that would be distributable
to such Unit Tag Seller relative to the amount that would be distributable to
all other Selling Members had an amount equal to the equity value of FCP and
Fertitta Partners implied by such purchase price been distributed pursuant to Section 5.1
of the FCP Operating Agreement and the Fertitta Partners Operating Agreement
(as determined by a Supermajority of the Board of Managers of FCP)) and on
terms and conditions at least as favorable to such Unit Tag Seller as the terms
and conditions contained in the Unit Tag Along Notice delivered in connection
with such proposed transaction (and if a unique implied equity value is not
mathematically determinable, using the highest possible implied purchase
price). Each Unit Tag Seller shall take all actions which the Selling Member
deems reasonably necessary or desirable to consummate such transaction,
including (i) entering into agreements with third parties which may include
representations, indemnities, holdbacks and escrows, provided, that such
agreements are on terms substantially identical or more favorable to such Unit
Tag Seller than those agreed to by the Selling Member (except that, in the case
of representations, warranties, holdbacks and escrows pertaining specifically
to the Selling 

 

20

Member, each Unit Tag Seller shall make comparable representations,
warranties, holdbacks and escrows, in each case to the extent applicable and
pertaining specifically to itself and only itself); provided, further,
that all representations, warranties, conditions, holdbacks and escrows shall
be of each the Selling Member and each Unit Tag Seller severally and not
jointly and that any liability to the Selling Member and the Unit Tag Seller
thereunder shall be borne by each of them on a pro rata basis determined
according to the number of Units sold by each of them, and (ii) obtaining
all consents and approvals reasonably necessary or desirable to consummate such
transaction. The Unit Tag Sellers and the Selling Member shall each pay its pro
rata share (based upon the portion of the gross proceeds each Unit Tag Seller
and the Selling Member are entitled to receive in such Unit Tag Sale relative
to the gross proceeds of the Unit Tag Sale) of any reasonable transaction costs
associated with the sale other than the legal expenses and selling commissions
of the other participants in the Unit Tag Sale.

 

3.5.3                        Drag Along Rights.

 

(a)                            If a
Supermajority of the Board of Managers of FCP approves a sale of all of the
Units of FCP and/or Fertitta Partners (such company, the “Drag Subject
Company”) to a Person (the “Unit Purchaser”) other than another
Member or an Affiliate of a Member (a “Unit Drag Sale”), subject to
applicable Gaming Laws, the Members selling such interests (the “Dragging Members”)
may, at their option, require each other Member of FCP and Fertitta Partners
(the “Dragged Members”) to sell all of the Units of FCP and Fertitta
Partners held by such Dragged Members.

 

(b)                           Subject to
the receipt of all required Gaming Licenses, the Dragging Members shall give
each Dragged Member not less than fifteen (15) days prior to the date of
the proposed sale, a notice summarizing the economic terms of such Drag Sale,
including the purchase price, closing date and the identity of the Unit
Purchaser. The Dragged Member sale shall be made on the same date, at a price
equal to a proportionate share of the aggregate purchase price paid in such
Unit Drag Sale (which proportionate share shall be based upon the amount that
would be distributable to such Dragged Member relative to the amount that would
be distributable to all other Dragging and Dragged Members had an amount equal
to the equity value of FCP and Fertitta Partners implied by such purchase price
been distributed pursuant to Section 5.1 of the FCP Operating Agreement
and the Fertitta Partners Operating Agreement (as determined by a Supermajority
of the Board of Managers of FCP)) and on terms and conditions at least as
favorable to such Dragged Member as the terms and conditions as the sale by the
Dragging Members (and if a unique implied purchase price is not mathematically
determinable, using the highest possible implied purchase price). In connection
with any Unit Drag Sale, each Dragged Member shall take such actions as may be
reasonably required by the Dragging Members and shall otherwise cooperate in
good faith with the Dragging Members. At the closing of a Unit Drag Sale, each
Dragged Member shall deliver to such Unit Purchaser all documents and
instruments as may be reasonably requested by such Unit Purchaser in
connection with such Unit Drag Sale, against payment of the appropriate
purchase price; provided that the Dragged Members shall not be required
to make any representations and warranties except those relating to title of
their Units, due authorization of the Unit Drag Sale and the absence of
conflicts, which such representations and warranties shall be made severally
and not jointly and that the liability of the Members thereunder shall be borne
by each of them on 

 

21

a pro rata basis determined according to the aggregate proceeds
received by each of them in the Unit Drag Sale and no Dragged Member shall be
required to agree to, or be deemed to have agreed to, any non-financial terms,
covenants and agreements such as non-competition and non-solicitation
agreements without its express written consent. In the event that any such Unit
Drag Sale is structured as a merger, consolidation or similar business
combination, each Member agrees to vote in favor of the transaction and take
all action to waive any dissent, appraisal or other similar rights; provided,
further, that, notwithstanding the foregoing, each Dragged Member may be
liable for breaches of representations and warranties about FCP, Fertitta
Partners or the Subsidiaries and their operations so long as such liability is
not in excess of such Dragged Member’s pro rata percentage interest in the
aggregate proceeds of the Unit Drag Sale.

 

(c)                            Upon
consummation of a Unit Drag Sale, if a Dragged Member has not delivered any
documents and instruments as contemplated by the preceding paragraph (b),
such Dragged Member shall no longer be considered a holder of Units, and such
Dragged Member’s sole rights with respect to such Units shall be to receive the
consideration receivable in connection with such Unit Drag Sale upon delivery
of the appropriate documents and instruments.

 

Section 3.6                                       Initial
Public Offering.

 

(a)                            (i) 
During the period beginning on the fourth (4th) anniversary of the
date of this Agreement and ending on the seventh (7th) anniversary
of the date of this Agreement, if the Named Executive Members and (ii) on
and after the seventh (7th) anniversary of this Agreement, if the
Sponsor Member provides Station with written notice of its desire to pursue an
Initial Public Offering, each Equityholder shall support and do all things
within its power to approve, and to cause the Board of Directors to approve,
the Initial Public Offering. The Board of Directors and the officers of Station
shall be responsible for all aspects of the Initial Public Offering. Upon the
consummation of an Initial Public Offering, Sections 2.1, 3.5.1, 3.5.2
and 3.5.3 hereof shall no longer be applicable; provided, that if
such Initial Public Offering is consummated by a Subsidiary of Station or
successor thereof (including Newco) in accordance with this Agreement, (i) the
governance structure set forth in Article 2 hereof shall continue
to be applicable to Station, (ii) a Class A Member shall have the
right, exercisable at any time and from time to time at such Member’s
discretion, to exchange Class A Units of FCP or Fertitta Partners for
shares of common stock of such Subsidiary or successor, and (iii) the
Board of Directors, including a Supermajority of the Board of Directors, if
required, and the Equityholders hereby agree to take such other actions,
including amendments to this Agreement, as may be reasonably required in
connection with such Initial Public Offering to give effect to the relative rights
and obligations of the Equityholders contained herein, which remain in effect
following an Initial Public Offering.

 

(b)                           The
Equityholders acknowledge and agree that in the event of any Initial Public
Offering, the Units of FCP and Fertitta Partners shall be converted into cash
and shares of Newco in accordance with the terms of the FCP Operating Agreement
and the Fertitta Partners Operating Agreement. Further, the Equityholders acknowledge and agree that no public offering
of the Units of FCP, Fertitta Partners or their respective corporate successors
shall be effected.

 

22

ARTICLE 4. NAMED EXECUTIVE
MEMBER LOANS

 

Section 4.1                                       Named
Executive Member Loans.

 

In the event that any Named Executive Member(s)
is entitled to make additional capital contributions to Station or any
Subsidiary pursuant to the terms of Fertitta Partners Operating Agreement and
notifies the Sponsor Member of its election to exercise its rights hereunder,
the Sponsor Member shall make a loan (a “Named Executive Member Loan”)
to the Named Executive Member(s) in an amount up to eighty percent (80%) of the
purchase price for the Additional Capital Contribution (as defined in Fertitta
Partners Operating Agreement) that the Named Executive Member(s) shall have
made pursuant to Section 3.1(d)(i) of Fertitta Partners
Operating Agreement. The Named Executive Member Loan shall be secured by a
pledge of such number of the Class A Units of Fertitta Partners owned by
the Named Executive Members equal in value to one hundred and twenty percent
(120%) of the amount loaned to the Named Executive Members for the Additional
Capital Contribution and, after the second anniversary of the date the Sponsor
Member makes the loan, any accrued but unpaid interest thereon (the “Named
Executive Member Loan Amount”). At the request of the Sponsor Member, but
in no event more than once during any twelve (12) month period, a valuation of
the Class A Units of Fertitta Partners shall be performed by a valuation
firm mutually acceptable to the Named Executive Members and the Sponsor Member.
Within ten (10) Business Days of such valuation, the Named Executive
Members shall pledge such additional number of Class A Units of Fertitta
Partners necessary to retain a pledge equal in value to one hundred and twenty
percent (120%) of the Named Executive Member Loan Amount. Each such Named
Executive Member Loan shall be made on the terms and subject to the conditions
set forth in the Secured Promissory Note attached hereto as Exhibit A.

 

ARTICLE 5. ISSUANCE OF CLASS C
UNITS

 

Section 5.1                                       Issuance
of Class C Units.

 

In the event
that Class C Units of FCP are issued pursuant to the FCP Operating
Agreement, an equal number of Class C Units of Fertitta Partners shall be
issued to the same Persons and in the same proportions as the newly-issued Class C
Units of FCP. No Class C Units of Fertitta Partners shall be issued except
in accordance with this Section 5.1.

 

ARTICLE 6. MISCELLANEOUS

 

Section 6.1                                       Amendments.

 

Amendments to this Agreement may be made
by the Board of Directors without the consent of any Equityholder if those
amendments are:  (i) of an
inconsequential nature and do not adversely affect the right of any
Equityholder in any material respect (as reasonably determined in good faith by
the Board of Directors); (ii) for the purpose of adding additional parties
hereto; or (iii) contemplated by this Agreement, the Merger Agreement or
the transactions expressly contemplated thereby. Amendments to this Agreement
other than those described in the foregoing sentence may be made only if
approved by a Supermajority of the Board of Directors; provided, however,
that, unless otherwise specifically contemplated by this Agreement, no
amendment to this Agreement shall, without the prior consent of each
Equityholder adversely affected thereby, disproportionately adversely affect
the rights of any Equityholder. Station shall send to each Equityholder a copy
of any amendment to this 

 

23

Agreement. Each Equityholder hereby agrees to cooperate and take all
actions reasonably requested by the Board of Directors to give effect to any
amendment to this Agreement approved in accordance with this Section 6.1.

 

Section 6.2                                       Notices.

 

All notices,
demands or requests required or permitted under this Agreement must be in
writing, and shall be made by hand delivery, certified mail, overnight courier
service  or facsimile to the
address or facsimile number set forth below such Equityholder’s name on the
signature page hereto, but any party may designate a different
address, or facsimile number by a notice similarly given to Station, FCP and
Fertitta Partners. Any such notice or communication shall be deemed given when
delivered by hand, if delivered on a Business Day, the next Business Day after
delivery by hand if delivered by hand on a day that is not a Business Day; four
Business Days after being deposited in the United States mail, postage prepaid,
return receipt requested, if mailed; on the next Business Day after being
deposited for next day delivery with Federal Express or a similar overnight
courier; when receipt is acknowledged, if sent by facsimile on a Business Day;
and the next Business Day following the day on which receipt is acknowledged if
sent by facsimile on a day that is not a Business Day.

 

Section 6.3                                       Entire
Agreement.

 

This Agreement, together with the FCP
Operating Agreement and the Fertitta Partners Operating Agreement, constitute
the entire agreement among the parties with respect to the subject matter
hereof. It supersedes any prior agreement or understandings among them with
respect to the subject matter hereof, and it may not be modified or
amended in any manner other than as set forth herein.

 

Section 6.4                                       Governing
Law.

 

This Agreement and the rights of the parties
hereunder shall be governed by and interpreted in accordance with the law of
the State of Nevada.

 

Section 6.5                                       Severability.

 

If any term or other provision of this
Agreement is invalid, illegal or incapable of being enforced as a result of any
rule of law or public policy, all other terms and other provisions of this
Agreement shall nevertheless remain in full force and effect so long as the
economic or legal substance of the transactions contemplated by this Agreement
is not affected in any manner materially adverse to any party. Upon such
determination that any term or other provision is invalid, illegal or incapable
of being enforced, the parties hereto shall negotiate in good faith to modify
this Agreement so as to effect the original intent of the parties as closely as
possible in an acceptable manner to the end that the transactions contemplated
by this Agreement are fulfilled to the greatest extent possible.

 

Section 6.6                                       Effect.

 

Except as herein otherwise specifically provided,
this Agreement shall be binding upon and inure to the benefit of the parties
and their legal representatives, successors and permitted assigns.

 

Section 6.7                                       Captions.

 

Captions contained in this Agreement are
inserted only as a matter of convenience and in no way define, limit or extend
the scope or intent of this Agreement or any provision hereof.

 

Section 6.8                                       Counterparts.

 

This Agreement may contain more than one
counterpart of the signature page and this Agreement may be
executed by the affixing of the signatures of each of 

 

24

the Equityholders to one of such counterpart signature pages. All
of such counterpart signatures pages shall be read as though one, and
they shall have the same force and effect as though all of the signers had
signed a single signature page.

 

Section 6.9                                       Waiver
of Trial by Jury.

 

TO THE EXTENT
PERMITTED BY APPLICABLE LAW, EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL
RIGHT OF TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTER-CLAIM, ARISING OUT
OF OR IN CONNECTION WITH THIS AGREEMENT OR ANY MATTER ARISING HEREUNDER.

 

Section 6.10                                 Binding
Arbitration.

 

Any dispute, claim or controversy arising out
of or relating to this Agreement which cannot be amicably resolved among the parties,
including the determination of the scope or applicability of this agreement to
arbitrate, shall be determined by binding arbitration in Las Vegas, Nevada,
before a panel of three arbitrators, in accordance with the laws of the State
of Nevada for agreements made in and to be performed in that State. The
arbitration shall be administered by JAMS pursuant to its Comprehensive
Arbitration Rules and Procedures in effect on the date of commencement of
the arbitration (or subsequent, equivalent JAMS rules). The decision in writing
of any two arbitrators, when delivered to the parties, shall be final and
binding on the parties. Judgment upon the award rendered may be entered in
any court having jurisdiction thereof. The arbitrators and the parties shall
maintain the confidentiality of the arbitration and dispute resolution
proceedings and shall have the authority to make appropriate rulings to
safeguard that confidentiality, unless the parties agree otherwise. The
arbitrators shall, in the award, allocate all of the costs of the arbitration,
including the fees of the arbitrators and the reasonable attorneys’ fees of the
prevailing party, against the party who did not prevail.

 

Section 6.11                                 Gaming
Suitability.

 

(a)                            For so
long as Station remains subject to regulation under any Gaming Laws, ownership
of Station shall be held subject to the applicable provisions of any applicable
Gaming Laws. If a Station Stockholder is found to be unsuitable by any Gaming
Authorities, then the Station Stockholder shall dispose of its interest in
Station pursuant to the applicable provisions or the requirements of any Gaming
Laws of any Gaming Authorities.

 

(b)                           The
election of an individual to serve as a director, manager or officer of Station
is subject to any qualifications or approvals required under any Gaming Laws.
For purposes of this Agreement, an individual shall be qualified to serve as a
director, manager or officer for so long as that individual is determined to
be, and continues to be, licensed, qualified and found suitable by all Gaming
Authorities having jurisdiction over Station, or any such director, manager or
officer and under all applicable Gaming Laws.

 

Section 6.12                                 Restructuring,
Exchanges, etc., Affecting the Shares.

 

Except as expressly provided herein, the
provisions of this Agreement shall apply to any and all Shares of Station or
any successor or assignee of Station (whether by merger, consolidation, sale of
assets or otherwise) which may be issued in respect of, in exchange for,
or in substitution for the Shares, by reason of any stock dividend, split,
reverse split, combination, restructuring, reclassification, merger,
consolidation, or otherwise in such a manner as to reflect the intent and
meaning of the provisions hereof. Upon the occurrence of any of such events,
numbers of shares and amounts hereunder and any 

 

25

other appropriate terms shall be appropriately adjusted, as determined
in good faith by the Board of Directors.

 

Section 6.13                                 Conflict
with Bylaws, Articles of Incorporation or FCP Voteco Operating Agreement.

 

The Equityholders agree that in the event any
term or provision of the Bylaws conflict with this Agreement, this Agreement
shall control and all Equityholders shall take all action reasonably necessary
to amend the Bylaws so that they shall not conflict, including voting in favor
of such amendments thereto as shall be reasonably necessary to conform the
Bylaws to the provisions of this Agreement; provided, however,
that the Equityholders further agree that to the extent that there is any
conflict among the terms and provisions of this Agreement, the Articles of
Incorporation of Station, the Bylaws and the FCP Voteco Operating Agreement,
the terms and provisions of the FCP Voteco Operating Agreement shall prevail.

 

Section 6.14                                 Supermajority
Consent Not Required.

 

Notwithstanding
anything to the contrary in this Agreement, the consent of a Supermajority of
the Board of Directors is not required at any time that the consent of a
Supermajority of the Board of Managers of FCP VoteCo would not be required
pursuant to the terms of the FCP VoteCo Operating Agreement.

 

[Signature Page Follows]

 

26

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC., 

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned has caused this counterpart signature page to
the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners
LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be duly
executed as of the date first above written.

 

 

	
   

  	
  STATION CASINOS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  Thomas M. Friel

  	
   

  
	
   

  	
  Name:

  	
  Thomas M. Friel

  
	
   

  	
  Title:

  	
  Executive Vice President,
  Chief Accounting 

  
	
   

  	
  Officer and Treasurer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  1505 S. Pavilion Center
  Drive

  
	
   

  	
  Las Vegas, Nevada 89135

  
	
   

  	
  Attn:

  	
  Richard
  J. Haskins

  
	
   

  	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  495-4265

  
	
   

  	
  Fax:

  	
  (702)
  495-3310

  
	
   

  	
  e-mail:

  	
  Richard.Haskins@StationCasinos.com

  
						

 

1

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned has caused this counterpart signature page to
the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners
LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be duly
executed as of the date first above written.

 

	
   

  	
  FERTITTA COLONY PARTNERS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Lorenzo J. Fertitta

  	
   

  
	
   

  	
  Name:

  	
  Lorenzo J. Fertitta

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
  1505 S. Pavilion Center
  Drive

  
	
   

  	
  Las Vegas, Nevada 89135

  
	
   

  	
  Attn:

  	
  Richard
  J. Haskins

  
	
   

  	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  495-4265

  
	
   

  	
  Fax:

  	
  (702)
  495-3310

  
	
   

  	
  e-mail:

  	
  Richard.Haskins@StationCasinos.com

  
					

 

1

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC., 

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned has caused this counterpart signature page to
the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners
LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be duly
executed as of the date first above written.

 

 

	
   

  	
  FERTITTA PARTNERS LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
     /s/
  Lorenzo J. Fertitta

  	
   

  
	
   

  	
  Name:

  	
  Lorenzo J. Fertitta

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  1505 S. Pavilion Center
  Drive

  
	
   

  	
  Las Vegas, Nevada 89135

  
	
   

  	
  Attn:

  	
  Richard
  J. Haskins

  
	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  495-4265

  
	
   

  	
  Fax:

  	
  (702)
  495-3310

  
	
   

  	
  e-mail:

  	
  Richard.Haskins@StationCasinos.com

  
					

 

1

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC., 

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned has caused this counterpart signature page to
the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners
LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be duly
executed as of the date first above written.

 

	
   

  	
  FCP HOLDING, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Lorenzo J. Fertitta

  	
   

  
	
   

  	
  Name:

  	
  Lorenzo J. Fertitta

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  1505 S. Pavilion Center
  Drive

  
	
   

  	
  Las Vegas, Nevada 89135

  
	
   

  	
  Attn:

  	
  Richard
  J. Haskins

  
	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  495-4265

  
	
   

  	
  Fax:

  	
  (702)
  495-3310

  
	
   

  	
  e-mail:

  	
  Richard.Haskins@StationCasinos.com

  
						

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC., 

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned has caused this counterpart signature page to
the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners
LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be duly
executed as of the date first above written.

 

	
   

  	
  FCP VOTECO LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Lorenzo J. Fertitta

  	
   

  
	
   

  	
  Name: 

  	
  Lorenzo J. Fertitta

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  1505 S. Pavilion Center
  Drive

  
	
   

  	
  Las Vegas, Nevada 89135

  
	
   

  	
  Attn:

  	
  Richard
  J. Haskins

  
	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  495-4265

  
	
   

  	
  Fax:

  	
  (702)
  495-3310

  
	
   

  	
  e-mail:

  	
  Richard.Haskins@StationCasinos.com

  
					

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

	
   

  	
  FC INVESTOR, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Thomas J. Barrack, Jr.

  	
   

  
	
   

  	
  Name: Thomas J. Barrack, Jr.

  
	
   

  	
  Title: Manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Colony Capital, LLC

  
	
   

  	
  600 Madison Avenue,
  Suite 1600

  
	
   

  	
  New York, New York
  10021

  
	
   

  	
  Attn :

  	
  Ronald M. Sanders, Esq.

  
	
   

  	
   

  
	
   

  	
  Phone:

  	
  (212) 230-3306

  
	
   

  	
  Fax:

  	
  (212) 593-5433

  
	
   

  	
  e-mail:

  	
  RSanders@colonyinc.com

  
						

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  FJF
  INVESTCO, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Frank J. Fertitta III

  	
   

  
	
   

  	
  Name: Frank J. Fertitta
  III

  
	
   

  	
  Title: Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  1505 S. Pavilion Center
  Drive

  
	
   

  	
  Las Vegas, Nevada 89135

  
	
   

  	
  Attn:

  	
  Richard
  J. Haskins

  
	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  495-4265

  
	
   

  	
  Fax:

  	
  (702)
  495-3310

  
	
   

  	
  e-mail:

  	
  Richard.Haskins@StationCasinos.com

  
					

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  LJF
  INVESTCO, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
      /s/
  Lorenzo J. Fertitta

  	
   

  
	
   

  	
  Name:

  	
  Lorenzo J. Fertitta

  
	
   

  	
  Title:

  	
  Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  1505 S. Pavilion Center
  Drive

  
	
   

  	
  Las Vegas, Nevada 89135

  
	
   

  	
  Attn:

  	
  Richard
  J. Haskins

  
	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  495-4265

  
	
   

  	
  Fax:

  	
  (702)
  495-3310

  
	
   

  	
  e-mail:

  	
  Richard.Haskins@StationCasinos.com

  
					

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  BLS
  INVESTCO, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Blake L. Sartini

  	
   

  
	
   

  	
  Name:  Blake L. Sartini

  
	
   

  	
  Title:   Manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  P.O. Box 31106

  
	
   

  	
  Las Vegas, Nevada 89173

  
	
   

  	
  Attn:

  	
  Blake
  L. Sartini

  
	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  891-4288

  
	
   

  	
  Fax:

  	
  (702)
  891-4289

  
	
   

  	
  e-mail:

  	
  Joe.Stone@sartinienterprises.com

  
					

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

	
   

  	
  FCP
  CLASS B HOLDCO LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Lorenzo J. Fertitta

  	
   

  
	
   

  	
  Name: Lorenzo J. Fertitta

  
	
   

  	
  Title: Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Address for Notices:

  	
   

  
	
   

  	
   

  
	
   

  	
  1505 S. Pavilion Center
  Drive

  
	
   

  	
  Las Vegas, Nevada 89135

  
	
   

  	
  Attn:

  	
  Richard
  J. Haskins

  
	
   

  	
   

  	
   

  
	
   

  	
  Phone:

  	
  (702)
  495-4265

  
	
   

  	
  Fax:

  	
  (702)
  495-3310

  
	
   

  	
  e-mail:

  	
  Richard.Haskins@StationCasinos.com

  
						

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

	
  IN WITNESS WHEREOF, the
  undersigned Member has caused this counterpart signature page to the
  Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners
  LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be duly
  executed as of the date first above written.

  

 

 

	
   

  	
  SCOTT
  & MARY ALICE NIELSON TRUST, as a

  Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott M Nielson

  	
   

  
	
   

  	
  Scott M Nielson, Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mary Alice Nielson

  	
   

  
	
   

  	
  Mary Alice Nielson, Trustee

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Scott
  & Mary Alice Nielson Trust

  
	
   

  	
  9037
  Waterfield Court

  
	
   

  	
  Las
  Vegas, Nevada 89134

  
	
   

  	
  Telephone:
  (702) 360-3870

  
	
   

  	
  Facsimile: (702)
  495-4245

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

	
   

  	
  WILEY,
  LLC, as a Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ William W. Warner

  	
   

  
	
   

  	
  William W. Warner,
  Managing Member

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  William
  W. Warner

  
	
   

  	
  1620
  Bayonne Drive

  
	
   

  	
  Las
  Vegas, Nevada 89134

  
	
   

  	
  Telephone:
  (702) 595-1660

  
	
   

  	
  Facsimile
  (702) 233-1692

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

	
   

  	
  HASKINS
  FAMILY TRUST,

  
	
   

  	
  as a
  Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Richard J. Haskins

  	
   

  
	
   

  	
  Richard J. Haskins,
  Co-Trustee

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Haskins
  Family Trust

  
	
   

  	
  9325
  Tournament Canyon Drive

  
	
   

  	
  Las
  Vegas, NC 89144

  
	
   

  	
  Phone:
  (702) 233-2304

  
	
   

  	
  Email:
  haskinslasv@cox.net

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  By: 

  	
  /s/ Thomas M. Friel

  	
   

  
	
   

  	
  Thomas M. Friel, as a
  Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Thomas M. Friel

  
	
   

  	
  517 Canyon Greens Drive

  
	
   

  	
  Las Vegas, NV 89144

  
	
   

  	
  Phone: (702) 495-4210

  
	
   

  	
  Fax: (702) 495-4245

  
	
   

  	
  Email:
  tom.frield@stationcasinos.com

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  HASSON
  FAMILY TRUST, as a Class A 

  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joe Hasson

  	
   

  
	
   

  	
  Joe Hasson, Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Joe
  Hasson

  
	
   

  	
  34
  Glistening Cloud Drive

  
	
   

  	
  Henderson,
  NV 89012

  
	
   

  	
  Phone:
  (702) 897-4201

  
	
   

  	
  email:

  
	
   

  	
  JOSEPH_J_HASSON@YAHOO.COM

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  By: 

  	
  /s/ Tom Roberts

  	
   

  
	
   

  	
  Tom Roberts, as a Class A
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Tom Roberts

  
	
   

  	
  11388 Rancho Villa Verde Place

  
	
   

  	
  Las Vegas, NV 89138

  
	
   

  	
  Phone: (702) 277-0516

  
	
   

  	
  Fax: (702) 495-3270

  
	
   

  	
  Emails:
  tomroberts@stationcasinos.com

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  By: 

  	
  /s/ Joe Haley

  	
   

  
	
   

  	
  Joe Haley, as a Class A
  Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Joe Haley

  
	
   

  	
  10204 Owl’s Peak Court

  
	
   

  	
  Las Vegas, NV 89144

  
	
   

  	
  Phone: (702) 341-5966

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  By:

  	
  /s/ Valerie Murzl

  	
   

  
	
   

  	
  Valerie Murzl, as a Class
  A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Valerie
  Murzl

  
	
   

  	
  10316
  Carolina Hills

  
	
   

  	
  Las
  Vegas, Nevada 89144

  
	
   

  	
  Phone:
  (702) 254-2879

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN WITNESS WHEREOF, the
undersigned Member has caused this counterpart signature page to the
Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners LLC
and Fertitta Partners LLC, dated as of November 7, 2007, to be duly executed as
of the date first above written.

 

	
   

  	
  By:

  	
  /s/ Edward W. Martin

  	
   

  
	
   

  	
  Edward W. Martin III, as a
  Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Ned
  Martin

  
	
   

  	
  2100
  Fawn Ridge Street

  
	
   

  	
  Las
  Vegas, NV 89134

  
	
   

  	
  Phone:
  (702) 242-8483

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  By:

  	
  /s/ Art Manteris

  	
   

  
	
   

  	
  Art Manteris, as a Class A
  Member

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Art
  Manteris

  
	
   

  	
  227
  Hallett Cove Court

  
	
   

  	
  Boulder
  City, NV 89005

  
	
   

  	
  Phone:
  (702) 293-2474

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

	
   

  	
  SCK
  LIVING TRUST,

  
	
   

  	
  as a
  Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Kreeger

  	
   

  
	
   

  	
  Scott Kreeger, Trustee

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Scott
  Kreeger

  
	
   

  	
  308
  Highland Mesa Court

  
	
   

  	
  Las
  Vegas, NV 89144

  
	
   

  	
  Phone:
  (702) 837-0145

  
	
   

  	
  Email:
  insearchofscottk@AOL.COM

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  JOLEEN
  LEGAKES TRUST,

  
	
   

  	
  as a
  Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  /s/ Joleen Legakes

  	
   

  
	
   

  	
  Joleen Legakes, Trustee

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Joleen
  Legakes

  
	
   

  	
  379
  Santa Candida Street

  
	
   

  	
  Las
  Vegas, NV 89138

  
	
   

  	
  Phone:
  (702) 419-0006

  
	
   

  	
  Fax:
  (702) 495-3390

  
	
   

  	
  Email:
  Joleen.legakes@stationcasinos.com

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

 

	
   

  	
  By: 

  	
  /s/ Don Richardson

  	
   

  
	
   

  	
  Don Richardson, as a Class
  A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Don
  Richardson

  
	
   

  	
  2445
  Tour Edition Drive

  
	
   

  	
  Henderson,
  NV 84074

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN
WITNESS WHEREOF, the undersigned Member has caused this counterpart signature
page to the Equityholders Agreement of Station Casinos, Inc., Fertitta Colony
Partners LLC and Fertitta Partners LLC, dated as of November 7, 2007, to be
duly executed as of the date first above written.

 

	
   

  	
  THE
  DUNKESON FAMILY TRUST, as a Class

  
	
   

  	
  A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Mark Dunkeson

  	
   

  
	
   

  	
  Mark Dunkeson, Co-Trustee

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  The
  Dunkeson Family Trust

  
	
   

  	
  9628
  Grand Isle Lane

  
	
   

  	
  Las
  Vegas, NV 89144

  
	
   

  	
  Phone:
  (702) 221-6001

  
	
   

  	
  Email:
  mark.dunkeson@stationcasinos.com

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN WITNESS WHEREOF, the
undersigned Member has caused this counterpart signature page to the
Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners LLC
and Fertitta Partners LLC, dated as of November 7, 2007, to be duly executed as
of the date first above written.

 

 

	
   

  	
  By: 

  	
  /s/ John Pasqualotto

  	
   

  
	
   

  	
  John Pasqualotto, as a
  Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  John
  Pasqualotto

  
	
   

  	
  5950
  West Quail Avenue

  
	
   

  	
  Las
  Vegas, NV 89118

  
	
   

  	
  Phone:
  (702) 247-6543

  
	
   

  	
  Fax:
  (702) 220-7537

  
	
   

  	
  Email:
  jpasqualotto@cox.net

  

 

 

EQUITYHOLDERS AGREEMENT OF

STATION CASINOS, INC.,

FERTITTA COLONY PARTNERS LLC

AND

FERTITTA PARTNERS LLC

 

IN WITNESS WHEREOF, the
undersigned Member has caused this counterpart signature page to the
Equityholders Agreement of Station Casinos, Inc., Fertitta Colony Partners LLC
and Fertitta Partners LLC, dated as of November 7, 2007, to be duly executed as
of the date first above written.

 

 

	
   

  	
  By:

  	
  /s/ Matthew L. Heinhold

  	
   

  
	
   

  	
  Matthew L. Heinhold, as a
  Class A Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  Matthew
  L. Heinhold

  
	
   

  	
  10021
  Ranch Hand Ave.

  
	
   

  	
  Las
  Vegas, NV 89117

  
	
   

  	
  Phone:
  (702) 838-0695

  
	
   

  	
  email:
  matt.heinhold@stationcasinos.com

  

 

 

SCHEDULE I

 

MAJOR ACTIONS

 

The
following actions constitute Major Actions, whether by Station or any
Subsidiary:

 

(i)            entry into any agreement or
transaction between Station or any Subsidiary, on the one hand, and any Station
Stockholder or any Affiliate of a Station Stockholder (other than Station or
any Subsidiary), on the other, if the cost of such agreement or transaction,
individually or in the aggregate, exceeds $100,000 in any year, other than (A)
transactions expressly contemplated by this Agreement, and (B) items purchased
in the ordinary course of business by the purchasing department of Station or
any Subsidiary which are purchased on behalf of a Named Executive Officer and
for which Station or such Subsidiary is promptly reimbursed by such Named
Executive Officer;

 

(ii)           the establishment or modification of
the annual budget, business plan and interest rate hedging policy of Station
and the Subsidiaries; provided, that if a Supermajority of the Board of
Directors fails to approve the performance thresholds the Named Executive
Officers and the next four (4) highest paid senior executives of Station are
required to attain in order to earn bonus targets in any year, such performance
thresholds shall be the performance thresholds of the previous year, plus a 5%
increase, subject to reasonable adjustments due to actual performance above or
below such pro forma business plan as a result of unanticipated project
expansion delays, accelerations or project acquisitions;

 

(iii)          other than as contemplated by the
annual budget, the commitment to or incurrence of any other capital expenditure
or series of related capital expenditures in an amount that exceeds $15 million
in any fiscal year;

 

(iv)          any material amendment to (A) the
Articles of Incorporation or the Bylaws of Station or the organizational
documents of any material Subsidiary, (B) this Agreement or (C) the FCP
Operating Agreement or the Fertitta Partners Operating Agreement;

 

(v)           any material change in the line of
business or entry into a gaming jurisdiction not regulated by the Nevada Gaming
Authorities or the National Indian Gaming Commission by Station;

 

(vi)          any material restriction on the
business activities of Station or any of the Subsidiaries affecting, directly
or indirectly, the business activities of the Station Stockholders;

 

(vii)         the compromise or settlement of any
lawsuit or administrative matter where the amount Station or any of the
Subsidiaries is required to pay individually or in the aggregate pursuant to
such compromise or settlement is in excess of $15 million;

 

(viii)        the setting of compensation for the
Named Executive Officers and the four (4) next highest paid senior executives
of Station, including their successors or replacements;

 

 

(ix)           the approval of the appointment of a
Chief Executive Officer and President of Station other than a Named Executive
Officer;

 

(x)            the authorization of any
contribution of additional capital to Station by any of the Station
Stockholders;

 

(xi)           prior to the fourth (4th) anniversary
of the date hereof, the authorization of an Initial Public Offering;

 

(xii)          the authorization of any dividend or
distribution to any Station Stockholder;

 

(xiii)         prior to the fourth (4th) anniversary
of the date hereof, the authorization of the Transfer of any Class A Units by
any Member, other than (A) a Permitted Transfer or (B) in the case of the Named
Executive Members, upon the death or Disability of both of the Named Executive
Officers;

 

(xiv)        a determination of the fair market value
of any asset of Station or any Subsidiary, as the case may be, as of any date;

 

(xv)         the establishment or release of any
reserves as to Station or any Subsidiary;

 

(xvi)        the establishment and composition of
committees of the Board of Directors;

 

(xvii)       the merger or consolidation of Station or
any of the Subsidiaries (other than a merger or consolidation of Station with
any of its wholly-owned Subsidiaries or of any of Station’s wholly-owned
Subsidiaries with any other of Station’s wholly-owned Subsidiaries), whether to
effect an acquisition or divestiture of assets or otherwise or any other
transaction causing a Change of Control;

 

(xviii)      any sale, lease or other conveyance of
assets of Station or any of the Subsidiaries in any transaction or series of
related transactions (other than any sale, lease or other conveyance of assets
of any wholly-owned Subsidiary to Station or any of Station’s other
wholly-owned Subsidiaries), in each case outside the ordinary course of
business or any assets (other than obsolete inventory or inventory sold in the
ordinary course of business), except for sales, leases or other conveyances of
assets in a single transaction or series of related transactions with a fair
market value of less than $15 million;

 

(xix)         any guarantee, assumption or incurrence
of indebtedness for, or grant of any security interests to secure, borrowed
money in excess of $15 million by Station or any of the Subsidiaries at any one
time other than (A) any indebtedness outstanding as of the date hereof, (B)
intercompany indebtedness and (C) trade indebtedness incurred in the ordinary
course of business;

 

(xx)          the commencement of any liquidation,
dissolution or voluntary bankruptcy, administration, recapitalization or
reorganization of Station or any Subsidiary in any 

 

 

form
of transaction, any arrangement with creditors, or the consent to entry of an
order for relief in an involuntary case, or take the conversion of an
involuntary case to a voluntary case, or the consent to the appointment or
taking possession by a receiver, trustee or other custodian for all or
substantially all of its property, or otherwise seek the protection of any
applicable bankruptcy or insolvency law, other than any such actions with
respect to a non-material Subsidiary where, in the good faith judgment of the
Board of Directors, the maintenance or preservation of such Subsidiary is no
longer desirable in the conduct of the business of Station or any Subsidiary;
and

 

(xxi)         the appointment, removal or replacement
of any independent director of Station or any Subsidiary.

 

 

SCHEDULE II

 

OWNERSHIP OF STATION STOCK

 

	
  Stockholder

  	
   

  	
  Number
  and Class of Shares in Station

  Casinos, Inc.

  
	
  FCP Holding, Inc.

  	
   

  	
  31,647,789 Shares of
  Non-Voting Common Stock

  
	
  Fertitta Partners LLC

  	
   

  	
  10,027,049 Shares of
  Non-Voting Common Stock

  
	
  FCP VoteCo, LLC

  	
   

  	
  41.7 Shares of Common
  Stock

  

 

 

EXHIBIT A

 

FORM OF

 

SECURED PROMISSORY NOTE

 

	
  $ 

  	
   

  	
  As of 

  

 

(plus
such amounts as may be added to 

principal as provided in Section 1.2 below)

 

FOR
VALUE RECEIVED,                 
(the “Borrower”), hereby promises to pay the aggregate principal sum of                                  
Dollars ($                ),
plus interest as provided below, to the order of          
(the “Secured Party”), or the Secured Party’s assigns, as applicable as
described in Section 1.1 below; Terms used herein and not otherwise
defined have the meanings ascribed to them in the Equityholders Agreement of
Station Casinos, Inc., Fertitta Colony Partners LLC and Fertitta Partners LLC,
dated as of    November 7, 2007 (the “Agreement”).

 

1.             Payment.

 

1.1           Principal. Subject to the
provisions of Section 1.4 hereof, the entire principal amount of
this Secured Promissory Note (this “Note”), together with all accrued
and unpaid interest thereon, shall be paid on the earlier to occur of (i) a
sale of FCP, Fertitta Partners or Station, (ii) one year after an initial
underwritten public offering of Station or (iii) a bankruptcy of FCP, Fertitta
Partners or Station, and may be paid in cash or in stock (such stock to be
valued at the time of such sale or initial public offering, as applicable), at
the Borrower’s option (the “Maturity Date”).

 

1.2           Interest. Until the second
anniversary of the date hereof, interest shall accrue with respect to the
unpaid principal amount of this Note at a rate of LIBOR plus one and a half
percent (1.5%) per annum and shall be paid in cash quarterly on           ,
          ,          
and             ,
commencing on             
(each a “Quarterly Payment Date”). If the last day of the calendar
quarter is a Saturday, Sunday or business holiday under the laws of the State
of Nevada, the payment that would otherwise be due thereon instead shall be due
on the next-succeeding business day, and such extension of time shall be
included in computing the interest due in respect of said payment. From and
after the second anniversary of the date of this agreement until the Maturity
Date, interest shall accrue with respect to the unpaid principal amount of this
Note at a rate of LIBOR plus four percent (4%) and the principal amount of this
Note shall be automatically increased by the amount of the accrued interest on
each Quarterly Payment Date. Interest shall be computed on the basis of a
360-day year and a 90-day calendar quarter and on the actual number of days
elapsed in any period of less than one calendar quarter. All accrued and unpaid
interest shall be due and payable on the Maturity Date.

 

 

1.3           Prepayment. The Borrower may
prepay, in whole or in part, the principal outstanding and/or the interest
accrued hereunder. The Borrower shall be required to use the after-tax cash
proceeds realized from the sale of Class A Units or Class B Units to
prepay the outstanding principal and/or interest accrued interest hereunder. All
prepayments shall first be applied to pay accrued but unpaid interest and then
to repay outstanding principal.

 

1.4           Acceleration. Upon the
occurrence of an Event of Default (as defined below), the Secured Party may
declare the entire principal amount of this Note plus accrued but unpaid
interest to be immediately due and payable and take any other action allowed by
law; provided, however, that such
amounts shall become immediately due and payable without any action of the
Secured Party in the event of an Event of Default described under clause (a) of
the definition of “Event of Default.” 
The occurrence of any of the following shall be deemed to be an event of
default (an “Event of Default”) hereunder: (a) bankruptcy, attachment,
receivership or similar liquidation event of the Borrower; (b) the breach in
any material respect of any covenant of the Borrower in this Note; (c) any
representation or warranty of the Borrower in this Note is false or misleading
in any material respect when made; or (d) the Borrower sells, transfers or
disposes of all or any portion of the Pledged Interests (as defined below)
other than the grant of the security interest in the Pledged Interests pursuant
to this Note.

 

1.5           Manner of Payment. Payments
hereunder shall be made by the Borrower to the Secured Party for the benefit of
the Secured Party, at the option of the Secured Party, by wire transfer to the
account, or by check at the address, in either case provided to the Borrower by
the Secured Party in writing, in immediately available lawful money of the
United States of America without any deduction whatsoever, including, but not
limited to, any deduction for any set off or counterclaim.

 

2.             Security Grant. As security
for the prompt and complete payment and performance of all of its obligations
under this Note, subject to the receipt of all approvals required under the
Gaming Laws, the Borrower does hereby grant to the Secured Party a continuing
lien on and security interest in all of the right, title and interest of the
Borrower in, to and under the Pledged Interests, wherever located. The Borrower
agrees to execute and deliver promptly to the Secured Party any and all
documents or instruments reasonably deemed by the Secured Party to be necessary
to perfect the security interest granted hereby. “Pledged Interests”
means all of the Borrower’s right, title and interest in [   (  )]
of the Borrower’s Class A Units of Fertitta Partners, together with all
certificates (if any) evidencing the same; provided, that such amount of
Class A Units shall be adjusted pursuant to Section 3.1(d)(ii) of Fertitta
Partners Operating Agreement.

 

3.             Remedies; Rights upon Default.

 

(a)           In
addition to all other rights and remedies granted to it under this Note, if any
Event of Default shall have occurred and be continuing, subject to Gaming Laws,
the Secured Party may exercise all of its rights and remedies as a secured
party under the Code. The Secured Party shall have the right upon any such
public sale or sales and, to the extent permitted by law, upon any such private
sale or sales, to purchase for the benefit of the Secured Party, the whole or
any part of said Pledged Interests so sold, free of any right or equity of
redemption, 

 

 

which
equity of redemption the Borrower hereby releases. Such sales may be adjourned
and continued from time to time with or without notice.

 

(b)           Until
the Secured Party is able to effect a sale, lease or other disposition of the
Pledged Interests, subject to Gaming Laws, the Secured Party shall have the
right to hold or use the Pledged Interests, or any part thereof, to the extent
that it deems appropriate for the purpose of preserving the Pledged Interests
or their value or for any other purpose deemed appropriate by the Secured Party.
The Secured Party shall have no obligation to the Borrower to maintain or
preserve the rights of the Borrower as against third parties with respect to
the Pledged Interests while the Pledged Interests are in the possession of the
Secured Party. The Secured Party may, if it so elects, seek the appointment of
a receiver or keeper to take possession of the Pledged Interests and to enforce
any of the Secured Party’s remedies, with respect to such appointment without
prior notice or hearing as to such appointment. The Secured Party shall apply
the net proceeds of any such collection, recovery, receipt, appropriation,
realization or sale to the repayment of this Note, and only after so paying
over such net proceeds, and after the payment by the Secured Party of any other
amount required by any provision of law, need the Secured Party account for the
surplus, if any, to the Borrower. To the maximum extent permitted by applicable
law, the Borrower waives all claims, damages and demands against the Secured
Party arising out of the repossession, retention or sale of the Pledged
Interests except such as arise solely out of the gross negligence or willful
misconduct of the Secured Party as finally determined by a court of competent
jurisdiction. The Borrower agrees that ten (10) days prior notice by the
Secured Party of the time and place of any public sale or of the time after
which a private sale may take place is reasonable notification of such matters.

 

(c)           Except
as otherwise specifically provided herein the Borrower hereby waives
presentment, demand, protest or any notice (to the maximum extent permitted by
applicable law) of any kind in connection with this Note or any the Pledged
Interests.

 

(d)           (i)            The
Secured Party hereby agrees that, except as set forth in Section 3(d)(ii)
below, its rights under and in respect of this Note and any claim or liability
under or reflected by this Note, including in any assertion of this Note or
such claims or liabilities against the Borrower, shall be limited to
satisfaction out of, and enforcement against, the Pledged Interests and the
additional Class A Units and Class B Units held by the Named
Executive Members. If any Event of Default shall occur and be continuing, the
Secured Party agrees that, except as set forth in Section 3(d)(ii)
below, it shall not have the right to proceed directly or indirectly against
the Borrower or against its properties and assets (other than the Pledged
Interests) for the satisfaction of this Note. The foregoing acknowledgments and
agreements shall survive the termination of this Note and shall be enforceable
by the Borrower.

 

(ii)           Notwithstanding the foregoing, it is
expressly understood and agreed, however, that nothing contained in the above
paragraph shall in any manner or any way (i) constitute or be deemed to be a
release of the obligations under this Note or the obligations secured by the
liens and security interests and possessory rights created by or arising from
this Note, or impair the enforceability of such liens, security interests and
possessory rights, in each case against the Pledged Interests, (ii) affect or
diminish any written obligation, covenant or agreement of the Borrower to which
such Person is a party, except for the limitation of recourse with respect to
this Note and any claim or liability under or reflected by this Note, or (iii)
affect 

 

 

or
diminish any rights of any person against any other person arising from
misappropriation or misapplication of any funds or for such other person’s
fraud, gross negligence or willful misconduct.

 

4.             Representations and Warranties
of the Borrower. Borrower hereby represents and warrants to the Secured
Party that the Borrower has full power and authority to execute and deliver
this Note and to perform its obligations hereunder. The execution and delivery
by the Borrower of this Note and the performance by the Borrower of its
obligations hereunder, has been duly and validly authorized by all necessary
action, and no other action on the part of any of them is required to authorize
the execution, delivery and performance of this Note. This Note has been duly
and validly executed and delivered by the Borrower and constitutes a legal,
valid and binding obligation of the Borrower enforceable against the Borrower
in accordance with its terms, except as the enforceability thereof may be
limited by bankruptcy, insolvency, fraudulent conveyance, reorganization,
moratorium or other similar laws relating to the enforcement of creditors’
rights generally and by general principles of equity.

 

5.             Covenants. Borrower hereby
covenants and agrees that, without the consent of the Secured Party, it will
not create any liens, encumbrances or other security interests of any kind or
nature whatsoever in the Pledged Interests.

 

6.             Amendment Provisions. This
Note may not be amended or modified, nor may any of its terms be waived, except
by written instruments signed by the Borrower and the Secured Party, and then
only to the extent set forth therein. Any amendment to this Note will require
the approval of the Nevada Gaming Authorities to be effective.

 

7.             Severability. If any
provision of this Note is determined to be invalid, illegal or unenforceable,
in whole or in part, the validity, legality and enforceability of any of the
remaining provisions or portions of this Note shall not in any way be affected
or impaired thereby and this Note shall nevertheless be binding between the
Borrower and the Secured Party.

 

8.             Binding Effect; Assignment. This
Note shall be binding upon, and shall inure to the benefit of, the Borrower and
the Secured Party thereof and their respective successors and permitted assigns.
This Note and the obligations of the Borrower set forth herein are not
assignable in whole or in part by the Borrower. This Note shall not be assignable
by the Secured Party without the prior written consent of the Borrower other
than to an Affiliate of the Secured Party.

 

9.             Effect of Waiver. No delay
or omission on the part of any Secured Party in exercising any right hereunder
shall operate as a waiver of such right or of any other right of such Secured
Party, nor shall any delay, omission or waiver on any one occasion be deemed a
bar to or waiver of the same or any other right on any future occasion. The
Borrower, regardless of the time, order or place of signing, waives
presentment, demand, protest and notices of every kind.

 

10.           Notices. Any notice required
by any provision of this Note to be given to the Secured Party or the Borrower
shall be in writing and may be delivered by personal service or facsimile or
sent by registered or certified mail, return receipt requested, with postage
thereon fully prepaid. All such communications shall be addressed as follows:

 

 

	
   

  	
  If
  to the Secured Party:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  If
  to Borrower:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

11.           Headings and Governing Law/Venue.
The descriptive headings in this Note are inserted for convenience only and do
not constitute a part of this Note. The validity, meaning and effect of this
Note shall be determined in accordance with the laws of the State of Nevada,
without regard to principles of conflicts or choice of law.

 

12.           WAIVER OF JURY TRIAL. THE
PARTIES HEREBY WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR
PROCEEDING IN CONNECTION WITH ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS
EXECUTED IN CONNECTION HEREWITH.

 

13.           Expenses. Each of the Borrower
and the Secured Party shall bear its own costs and expenses incurred in
connection with the enforcement or collection of this Note and the lien created
hereunder, including attorney’s and accountant’s fees and expenses, provided
that the prevailing party in any litigation shall be entitled to reimbursement
from the other party for all reasonable costs and expenses, including attorney’s
and accountant’s fees, incurred in connection with such litigation.

 

 

IN
WITNESS WHEREOF, the Borrower has duly caused this Note to be signed in its
name and on its behalf by its duly authorized officer as of the date
hereinabove written.

 

	
   

  	
   

  	
   

  	
  ,

  
	
   

  	
   

  	
  a
  

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

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