Document:

<PAGE>

                           COUNTERSIGNED AND REGISTERED:

                              CHASEMELLON SHAREHOLDER SERVICES, L.L.C.
                           BY                       TRANSFER AGENT AND REGISTRAR

                                                            AUTHORIZED SIGNATURE

       NUMBER                                                       SHARES
        AGN                         [LOGO] AEROGEN

                                     AEROGEN, INC

 INCORPORATED UNDER THE LAWS
   OF THE STATE OF DELAWARE                             SEE REVERSE FOR CERTAIN
                                                               DEFINITIONS
                                                           CUSIP 007779 10 1

     This Certifies that

     is the record holder of

   FULLY PAID AND NONASSESSABLE SHARES OF COMMON STOCK, $0.001 PAR VALUE, OF

----------------------------------               -------------------------------
---------------------------------- AEROGEN, INC. -------------------------------
----------------------------------               -------------------------------

transferable on the books of the Corporation by the holder hereof in person
or by duly authorized attorney upon surrender of this certificate properly
endorsed. This certificate is not valid until countersigned by the Transfer
Agent and registered by the Registrar.

     WITNESS the facsimile seal of the Corporation and the facsimile
     signatures of its duly authorized officers.

     Dated:

/s/ Carol Gamble              [SEAL]                 /s/ Jane E. Shaw
Secretary                                  Chairman and Chief Executive Officer

<PAGE>

    The Corporation shall furnish without charge to each stockholder who so
requests a statement of the powers, designations, preferences and relative,
participating, optional, or other special rights of each class of stock of
the Corporation or series thereof and the qualifications, limitations or
restrictions of such preferences and/or rights. Such requests shall be made
to the Corporation's Secretary at the principal office of the Corporation.

    The following abbreviations, when used in the inscription on the face of
this certificate, shall be construed as through they were written out in full
according to applicable laws or regulations:

<TABLE>
<S>                                                       <C>
    TEN COM - as tenants in common                         UNIF GIFT MIN ACT-..................Custodian...............
    TEN ENT - as tenants by the entireties                                        (Cust)                    (Minor)
    JT TEN  - as joint tenants with right of                           Under................Uniform Gifts to Minors Act
              survivorship and not as tenants                                   (State)
              in common
</TABLE>

      Additional abbreviations may also be used though not in the above list.

For Value Received, _____________________________ hereby sell(s), assign(s)
and transfer(s) unto

PLEASE INSERT SOCIAL SECURITY OR OTHER
  IDENTIFYING NUMBER OF ASSIGNEE
---------------------------------------

---------------------------------------

------------------------------------------------------------------------------
(PLEASE PRINT OR TYPEWRITE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE)

------------------------------------------------------------------------------

------------------------------------------------------------------------------

----------------------------------------------------------------------- Shares
of the common stock represented by the within certificate, and do hereby
irrevocably constitute and appoint

---------------------------------------------------------------------- Attorney
to transfer the said stock on the books of the within named Corporation with
full power of substitution in the premises.

Dated ___________________

                                       X _____________________________________

                                       X _____________________________________
                                 NOTICE: THE SIGNATURE TO THIS ASSIGNMENT
                                         MUST CORRESPOND WITH THE NAME AS
                                         WRITTEN UPON THE FACE OF THE
                                         CERTIFICATE IN EVERY PARTICULAR,
                                         WITHOUT ALTERATION OR ENLARGEMENT OR
                                         ANY CHANGE WHATEVER.

Signature(s) Guaranteed

By__________________________________________
THE SIGNATURE(S) MUST BE GUARANTEED BY AN
ELIGIBLE GUARANTOR INSTITUTION (BANKS,
STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS
AND CREDIT UNIONS WITH MEMBERSHIP IN AN
APPROVED SIGNATURE GUARANTEE MEDALLION
PROGRAM), PURSUANT TO S.E.C. RULE 17Ad-15.<PAGE>

                                                                  EXHIBIT 4.18

                  AMENDMENT NO. 5 TO THIRD AMENDED AND RESTATED
                        REDUCING REVOLVING LOAN AGREEMENT

                  This Amendment No. 5 to Third Amended and Restated Reducing
Revolving Loan Agreement (this "Amendment") dated as of August 24, 2000 among
Palace Station Hotel & Casino, Inc., Boulder Station, Inc., Texas Station, Inc.,
St. Charles Riverfront Station, Inc., Kansas City Station Corporation and Sunset
Station, Inc. (collectively, the "Borrowers"), Station Casinos, Inc. ("Parent")
(but only for the purpose of making the covenants set forth in Articles 8 and 9
of the Loan Agreement (as defined below)), and Bank of America, N.A., as
Administrative Agent (the "Administrative Agent"), is entered into with
reference to the Third Amended and Restated Reducing Revolving Loan Agreement
dated as of August 25, 1999 among Borrowers, Parent, the Lenders party thereto,
Societe Generale, as Documentation Agent, Bank of Scotland, as Co-Agent, and the
Administrative Agent (as amended from time to time, the "Loan Agreement").
Capitalized terms used but not defined herein are used with the meanings set
forth for those terms in the Loan Agreement.

                                    RECITALS

         A.       Parent has entered into the Santa Fe Acquisition Agreement (as
defined below) to purchase substantially all of the operating assets of Santa Fe
Hotel, Inc., a Nevada corporation ("Santa Fe"), located in Las Vegas, Nevada.
Parent intends to assign its rights under the Acquisition Agreement to Santa Fe
Station, Inc., a Nevada corporation ("Santa Fe Station") and a Wholly-Owned
Subsidiary of Parent. Parent and Borrowers desire that the Lenders approve the
Santa Fe Acquisition and Lenders desire to so approve on the terms and
conditions set forth below.

         B.       Parent has entered into the Fiesta Acquisition Agreement (as
defined below) to purchase substantially all of the operating assets of Fiesta
Hotel Corporation, a Nevada corporation ("Fiesta") and Los Pueblos, Inc., a New
Mexico corporation ("Pueblos" and, together with Fiesta, the "Fiesta Sellers")
located in North Las Vegas, Nevada. Parent intends to assign its rights under
the Acquisition Agreement to Fiesta Palm Station, LLC, a Nevada limited
liability company ("Fiesta Station") and a Wholly-Owned Subsidiary of Parent.
Parent and Borrowers desire that the Lenders approve the Fiesta Acquisition and
Lenders desire to so approve on the terms and conditions set forth below.

         C.       Parent and other Borrowers desire to (a) divest themselves of
the assets of St. Charles Riverfront Station, Inc. and Kansas City Station
Corporation (other than the Real Property listed as item (a) on Annex I hereto
(the "St. Charles Real Property"), (b) terminate the status of Kansas City
Station Corporation and St. Charles Riverfront Station, Inc. as Borrowers under
the Loan Agreement and (c) add St. Charles Riverfront Station as a Sibling
Guarantor under the Sibling Guaranty.

         E.       Parent, Borrowers and the Lenders further desire to amend the
Loan Agreement as set forth below.

                                       -1-

<PAGE>

                                    AGREEMENT

                  NOW, THEREFORE, Borrowers, Parent and the Administrative
Agent, acting with the consent of the Requisite Lenders pursuant to Section 14.2
of the Loan Agreement, agree as follows:

                  1.       SECTION 1.1 - NEW DEFINED TERMS.  The following
defined terms are hereby added to the Loan Agreement.

                           "ACQUISITION PURCHASER" means a wholly-owned
                  Subsidiary of Parent that acquires the capital stock or assets
                  of a New Venture Entity.

                           "BRIDGE TERM COMMITMENT" has the meaning set forth in
                  Section 2.13.

                           "FIESTA" means Fiesta Hotel Corporation, a Nevada
                  corporation.

                           "FIESTA ACQUISITION" means the purchase by Parent,
                  whether in one transaction or in a series of related
                  transactions, of substantially all of the operating assets of
                  the Fiesta Sellers, pursuant to the Fiesta Acquisition
                  Documents.

                           "FIESTA ACQUISITION AGREEMENT" means the Asset
                  Purchase Agreement, dated as of July 19, 2000, between Parent,
                  the Fiesta Sellers and Joe G. Maloof & Co., Inc., a New Mexico
                  corporation.

                           "FIESTA ACQUISITION DATE" means the date upon which
                  the Fiesta Acquisition occurs.

                           "FIESTA ACQUISITION DOCUMENTS" means the Fiesta
                  Acquisition Agreement and the other principal agreements,
                  documents, and instruments executed and delivered in
                  connection therewith.

                           "FIESTA SELLERS" means, collectively, Fiesta and
                  Pueblos.

                           "FIESTA STATION" means Fiesta Palm Station, LLC, a
                  Nevada limited liability company.

                           "FIRST PRIORITY LIEN" means a Lien that is of the
                  first priority, except for Liens and Negative Pledges
                  permitted by Section 6.6 of the Loan Agreement.

                           "MISSOURI SALE AGREEMENTS" means the Asset Purchase
                  Agreements and the other principal instruments, documents and
                  agreements pursuant to which the assets of St. Charles
                  Riverfront Station, Inc. (other than the St. Charles Real
                  Property) and of Kansas City Station Corporation shall be sold
                  to "KC Opco" and "SC Opco", two Delaware limited liability
                  companies to be formed by certain members of the management of
                  Parent.

                                       -2-

<PAGE>

                           "PUEBLOS" means Los Pueblos, Inc., a New Mexico
                  corporation.

                           "SANTA FE" means Santa Fe Hotel, Inc., a Nevada
                  corporation.

                           "SANTA FE ACQUISITION" means the purchase by Parent
                  and/or Santa Fe Station, whether in one transaction or in a
                  series of related transactions, of substantially all of the
                  operating assets of Santa Fe Hotel, Inc., a Nevada
                  corporation, pursuant to the Santa Fe Acquisition Documents.

                           "SANTA FE ACQUISITION AGREEMENT" means the Asset
                  Purchase Agreement, dated as of June 12, 2000, between Parent,
                  Santa Fe and Santa Fe Gaming Corporation, a Nevada
                  corporation.

                           "SANTA FE ACQUISITION DATE" means the date upon which
                  the Santa Fe Acquisition occurs.

                           "SANTA FE ACQUISITION DOCUMENTS" means the Santa Fe
                  Acquisition Agreement and the other principal agreements,
                  documents and instruments executed and delivered in connection
                  therewith.

                           "SANTA FE STATION" means Santa Fe Station, Inc., a
                  Nevada corporation.

                           "ST. CHARLES REAL PROPERTY" means the Real Property
                  located in Nevada and more fully described in item (a) of
                  Annex I to Amendment No. 5 to the Third Amended and Restated
                  Reducing Revolving Loan Agreement dated as of August 24,
                  2000 among the Borrowers, Parent and the Administrative Agent.

                  2.       SECTION 1.1 - AMENDED DEFINED TERMS. The following
defined terms are amended in full to read as follows:

                           "FACILITY INCREASE AMOUNT" means the amount, not in
                  excess of $200,000,000, by which the Commitments are increased
                  pursuant to a Facility Increase.

                           "FIXED CHARGE COVERAGE" means, as of the last day of
                  each Fiscal Quarter, the RATIO of:

                           (a) Annualized Adjusted EBITDA of Borrowers for the
                  fiscal period consisting of that Fiscal Quarter and the three
                  immediately preceding Fiscal Quarters (PROVIDED THAT the
                  portion of Annualized Adjusted EBITDA which is attributable to
                  any New Venture Entity which becomes a Borrower during that
                  period shall be determined on the basis of the operating
                  results of such New Venture Entity from the date upon which it
                  became a Borrower, annualized on a straight line basis), MINUS
                  Cash Income Taxes of Borrowers for such fiscal period; TO

                           (b) the SUM of (i) Interest Charges of Borrowers for
                  such fiscal period with respect to Indebtedness OTHER THAN
                  Indebtedness owed to Parent or a Restricted

                                       -3-

<PAGE>

                  Subsidiary (PROVIDED THAT such Interest Charges shall be
                  adjusted on a pro forma basis to include the Interest Charges
                  associated with Indebtedness in an amount equal to the
                  consideration paid by an Acquisition Purchaser to acquire any
                  New Venture Entity which becomes a Borrower hereunder during
                  that period (including any Indebtedness assumed in connection
                  with such acquisition) annualized on a straight line basis)
                  PLUS (ii) Maintenance Capital Expenditures of Borrowers made
                  during such fiscal period PLUS (iii) the aggregate of (A) all
                  principal payments on the Notes made during such fiscal period
                  required by Section 3.1(d)(i), (B) all voluntary principal
                  prepayments on the Notes made during such fiscal period to the
                  extent that such prepayment reduced or eliminated the amount
                  of a subsequent principal payment on the Notes which would
                  otherwise be required by Section 3.1(d)(i) and (C) all
                  scheduled principal payments on all Indebtedness of Borrowers
                  during such fiscal period and PLUS (iv) Interest Charges of
                  Borrowers for such fiscal period with respect to Deemed
                  Intercompany Indebtedness calculated at an interest rate that
                  is not less than the Minimum Intercompany Rate.

                           "FUNDED DEBT RATIO" means, with respect to any Person
                  and as of the last day of each Fiscal Quarter, the RATIO OF
                  (a) Average Quarterly Adjusted Funded Debt of that Person for
                  that Fiscal Quarter to (b) Annualized Adjusted EBITDA of that
                  Person for the fiscal period consisting of that Fiscal Quarter
                  and the three immediately preceding Fiscal Quarters (PROVIDED
                  THAT the portion of Annualized Adjusted EBITDA which is
                  attributable to any New Venture Entity which becomes a
                  Borrower during that period shall be determined on the basis
                  of the operating results of such New Venture Entity from the
                  date upon which it became a Borrower, annualized on a straight
                  line basis).

                           "PARENT TANGIBLE NET WORTH" means, as of any date of
                  determination, the consolidated Stockholders' Equity of Parent
                  and its Subsidiaries on that date minus the aggregate
                  Intangible Assets (OTHER than the value of goodwill and
                  intangibles associated with the Santa Fe Acquisition and the
                  Fiesta Acquisition) of Parent and its Subsidiaries on that
                  date, PROVIDED that in the calculation thereof, the impact of
                  equity derivative transactions entered into by Parent with one
                  or more financial institutions with respect to capital stock
                  of Parent shall be excluded.

                  3.       SECTION 2.13 - FACILITY INCREASE. The first paragraph
of Section 2.13 of the Loan Agreement is hereby amended in full to read as
follows:

                           "2.13 FACILITY INCREASE. Borrowers may, at any time,
                  request a Facility Increase pursuant to this Section in a
                  Facility Increase Amount not in excess of $200,000,000. The
                  Facility Increase may consist of either an increase to the
                  principal amount of the Line B Commitment, or a new term loan
                  commitment in an amount not in excess of $100,000,000 (the
                  "Bridge Term Commitment" which, together with any refinancings
                  thereof shall thereafter be considered to be a "Commitment"
                  hereunder), or any combination thereof, provided that any
                  extension or refinancing of any Facility Increase shall not be
                  deemed a usage of the Facility Increase. The procedure for a
                  Facility Increase shall be as follows:

                                       -4-

<PAGE>

                  (a.)     Borrowers shall notify the Administrative Agent in
                           writing of its request for a Facility Increase, which
                           request shall (i) specify the maximum amount of the
                           Facility Increase requested and (ii) describe the
                           proposed uses of the proceeds of the Facility
                           Increase Amount.

                  (b.)     The Administrative Agent shall promptly forward the
                           request for a Facility Increase and related materials
                           to the Lenders for their consideration. Each Lender
                           may determine, in its sole and absolute discretion,
                           whether or not to participate in the Facility
                           Increase and, if it does elect to participate, the
                           maximum level of its participation; PROVIDED that the
                           approval of the Lenders as a whole shall not be
                           required for a Facility Increase in accordance with
                           this Section.

                  (c.)     As soon as practicable, each Lender shall notify the
                           Administrative Agent in writing whether or not it
                           wishes to participate in the Facility Increase and,
                           if so, the maximum level of such participation. The
                           Lenders shall use their best efforts to respond
                           promptly to such request, but shall not be required
                           to respond to such request sooner than 10 Banking
                           Days after receipt of the request for Facility
                           Increase. The Administrative Agent shall promptly
                           forward such notifications to Borrower. Any Lender
                           that has not so notified the Administrative Agent
                           within 10 Banking Days after receipt of the request
                           for Facility Increase shall be deemed to have
                           declined to participate in the Facility Increase.

                  (d.)     If the aggregate amount of the maximum levels of
                           participation in the Facility Increase set forth in
                           the Lender notifications is equal to or less than the
                           maximum amount of the Facility Increase requested by
                           Borrowers, then the Facility Increase shall be
                           implemented, with each Lender's participation in the
                           Facility Increase at the maximum level indicated in
                           their respective notifications. If the aggregate
                           amount of the maximum levels of participation set
                           forth in the Lender notifications is greater than the
                           requested amount of the maximum Facility Increase,
                           then the Facility Increase shall be implemented by
                           scaling back each Lender's level of participation in
                           the Facility Increase to a level that is mutually
                           acceptable to Borrowers and the Administrative Agent.

                  (e.)     If the aggregate amount of the maximum levels of
                           participation in the Facility Increase set forth in
                           the Lender notifications is less than the maximum
                           amount of the Facility Increase requested by
                           Borrowers, Borrowers may, at their election, solicit
                           (through the Administrative Agent) any other
                           institutional lender that is an Eligible Assignee and
                           reasonably acceptable to the Administrative Agent to
                           participate in the balance of the requested maximum
                           Facility Increase amount.

                  (f.)     After completion of the foregoing, the Administrative
                           Agent shall give written notification to the Lenders
                           and any new lenders of the Facility

                                      -5-
<PAGE>

                           Increase Amount and the level of participation of
                           each Lender and such lender in the increased Line B
                           Commitment (or, where applicable, the Bridge Term
                           Commitment), and thereupon the Facility Increase
                           shall become effective. Concurrently therewith, any
                           new lender shall execute and deliver a joinder to
                           this Agreement in form and substance satisfactory to
                           the Administrative Agent and Borrowers and shall
                           become a Lender for all purposes hereunder.

                  (g.)     It is expressly acknowledged that the Pro Rata Shares
                           of the Lenders in any Commitments resulting from a
                           Facility Increase need not be equal and ratable, and
                           that, in the case of a Term Bridge Commitment, that
                           the Bridge Term Commitment may have an escalating
                           interest rate in excess of the rates otherwise
                           payable hereunder and may provide for a final
                           maturity date for the Bridge Term Commitment which is
                           different from the Maturity Date. Any extension or
                           refinancing of the Bridge Term Commitment shall be at
                           the discretion of the Lenders having an interest
                           therein, and shall not require an affirmative vote of
                           the other Lenders.

                  (h.)     Borrowers shall execute and deliver such new Notes to
                           the Lenders as are necessary to reflect the
                           foregoing. The Administrative Agent shall also
                           prepare and circulate a revised SCHEDULE 1.1 giving
                           effect to the Facility Increase.

                  (i.)     The Lenders participating in any Facility Increase
                           Amount shall be entitled to the ratable and pari
                           passu benefit of the Collateral Documents, the Parent
                           Guaranty and the Sibling Guaranty."

                  4.       SECTION 6.6 - LIENS AND NEGATIVE PLEDGES. Section
6.6(i) of the Loan Agreement is hereby amended in full, and new Sections 6.6(j)
and (k) are hereby added, each to read in full as follows:

                           "(i)     any Permitted Sale/Leaseback;

                           (j)      Liens on any personal property or fixtures
                  owned by Fiesta Station having a value not in excess of
                  $15,000,000 in the aggregate, which secure obligations of
                  Fiesta Station under any synthetic lease, financing lease or
                  similar arrangement; and

                           (k)      Liens on any personal property or fixtures
                  owned by Santa Fe Station having a value not in excess of
                  $15,000,000 in the aggregate, which secure obligations of
                  Santa Fe Station under any synthetic lease, financing lease or
                  similar arrangement."

                  5.       APPROVAL OF SANTA FE ACQUISITION. The Lenders hereby
approve the Santa Fe Acquisition; PROVIDED that substantially concurrently
therewith (a) the Santa Fe Acquisition is consummated substantially in the
manner contemplated by the executed copy of the Santa Fe Acquisition Agreement
heretofore delivered to the Administrative Agent (it being understood that all

                                      -6-
<PAGE>

or a portion of the Santa Fe property may be leased for a period from Santa Fe),
(b) Santa Fe Station executes and delivers to the Administrative Agent the
Joinder Agreement making it an additional Borrower, (c) Borrowers deliver to
Administrative Agent such amended Schedules to the Loan Agreement as are
necessary to reflect the addition of Santa Fe Station as an additional Borrower,
which amended Schedules shall be reasonably acceptable to the Administrative
Agent, (d) Santa Fe Station executes and delivers to the Administrative Agent
such Collateral Documents and related UCC-1 statements and trademark filings as
may be required to result in a First Priority Lien on all of the assets of Santa
Fe Station in favor of the Administrative Agent to secure the Obligations, (e)
Parent executes and delivers to the Administrative Agent written confirmation of
its obligation to pledge its equity interest in Santa Fe Station to Lenders
pursuant to Section 8.2, subject to necessary Gaming Board approval, (f) Santa
Fe Station executes and delivers to Administrative Agent such deeds of trust,
and obtains such title insurance policies as shall be in form and substance
satisfactory to the Requisite Lenders, as shall be required to comply with the
provisions of Sections 5.11 and 8.3, (g) Parent and Santa Fe Station deliver a
certificate, signed by a Responsible Official of each such Party, to the effect
that (i) attached thereto is a true, correct and complete fully executed copy of
the Santa Fe Acquisition Agreement, (ii) the Santa Fe Acquisition has been
completed in accordance with the terms of then Santa Fe Acquisition Documents
and all applicable Laws, including all Gaming Laws and (iii) all Governmental
Approvals required to complete the Santa Fe Acquisition have been obtained, (g)
Santa Fe and/or Santa Fe Station, as applicable, shall divest itself of all
gaming assets and Investments not located in the greater Las Vegas, Nevada
metropolitan area and (h) Parent, Santa Fe Station and the other Borrowers
deliver, or cause to be delivered, such authorizing resolutions, legal opinions
and other closing documents as may be reasonably requested by the Administrative
Agent.

                  6.       APPROVAL OF FIESTA ACQUISITION. The Lenders also
hereby approve the Fiesta Acquisition; PROVIDED that substantially concurrently
therewith (a) the Fiesta Acquisition is consummated in the manner contemplated
by the executed copy of the Fiesta Acquisition Agreement heretofore delivered to
the Administrative Agent, (b) Fiesta Station executes and delivers to the
Administrative Agent the Joinder Agreement making it an additional Borrower, (c)
Borrowers deliver to Administrative Agent such amended Schedules to the Loan
Agreement as are necessary to reflect the addition of Fiesta Station as an
additional Borrower, which amended Schedules shall be reasonably acceptable to
the Administrative Agent, (d) Fiesta Station executes and delivers to the
Administrative Agent such Collateral Documents and related UCC-1 statements and
trademark filings as may be required to result in a First Priority Lien on all
of the assets of Fiesta Station in favor of the Administrative Agent to secure
the Obligations, (e) Parent executes and delivers to the Administrative Agent
written confirmation of its obligation to pledge its equity interest in Fiesta
Station to Lenders pursuant to Section 8.2, subject to necessary Gaming Board
approval, (f) Fiesta Station executes and delivers to Administrative Agent such
deeds of trust, and obtains such title insurance policies as shall be in form
and substance satisfactory to the Requisite Lenders, as shall be required to
comply with the provisions of Sections 5.11 and 8.3, (g) Parent and Fiesta
Station deliver a certificate, signed by a Responsible Official of each such
Party, to the effect that (i) attached thereto is a true, correct and complete
fully executed copy of the Fiesta Acquisition Agreement, (ii) the Fiesta
Acquisition has been completed in accordance with the terms of then Fiesta
Acquisition Documents and all applicable Laws, including all Gaming Laws and
(iii) all Governmental Approvals required to complete the Fiesta Acquisition
have been obtained, (g) the Fiesta Sellers and/or Fiesta Station, as applicable,
shall divest itself of all gaming assets and Investments not located in the
greater Las Vegas, Nevada metropolitan area and (h) Parent, Fiesta Station and
the other Borrowers deliver, or cause to be

                                      -7-
<PAGE>

delivered, such authorizing resolutions, legal opinions and other closing
documents as may be reasonably requested by the Administrative Agent.

                  7.       APPROVAL OF MISSOURI SALE. The Lenders also hereby
approve the concurrent sale of the assets of St. Charles Riverfront Station,
Inc. (other than the St. Charles Real Property) and Kansas City Station
Corporation pursuant to the Missouri Sale Agreements for a purchase price of not
less than $475,000,000 (subject to certain purchase price adjustments), payable
in cash, subject to the fulfillment of each of the following conditions
precedent:

                  (a)      Kansas City Station Corporation and St. Charles
         Riverfront Station, Inc. shall be terminated as Borrowers under the
         Loan Agreement pursuant to an agreement acceptable to the
         Administrative Agent, consented to by Parent, the other Borrowers and
         each guarantor of the Obligations;

                  (b)      St. Charles Riverfront Station, Inc. shall execute
         and deliver to the Administrative Agent, in form and substance
         reasonably satisfactory to Administrative Agent,
         an Instrument of Joinder, pursuant to which St. Charles Riverfront
         Station, Inc. shall become a Sibling Guarantor under the Sibling
         Guaranty; and

                  (c)      The Borrowers shall cause the delivery to the
         Administrative Agent of endorsements to the policies of title insurance
         held by the Administrative Agent as are requested by the Administrative
         Agent.

Concurrently with the consummation of the transactions contemplated by this
Section 7, the Administrative Agent is authorized and directed by the Lenders to
(i) deliver to the Parent writings confirming the termination of the status of
Kansas City Station Corporation and St. Charles Riverfront Station, Inc. as
Borrowers under the Loan Agreement and (ii) other than such documentation as
shall be executed by St. Charles Riverfront Station, Inc. in connection with the
transactions contemplated by this Amendment, releases of all mortgages, deeds of
trust and other Collateral Documents to the extent that Kansas City Station
Corporation and/or St. Charles Riverfront Station is a party thereto, together
with all such UCC termination statements, partial reconveyance statements and
other similar documents as may be required or reasonably necessary to evidence
the termination of the Liens of the Administrative Agent in their respective
assets (other than the St. Charles Real Property).

                  8.       CERTAIN PREPAYMENTS. In connection with the sale of
the assets of St. Charles Riverfront Station, Inc. (other than the St. Charles
Real Property) and Kansas City Station Corporation, Parent intends to prepay
approximately $5,600,000 of purchase money Indebtedness owed to The CIT Group.
Parent also proposes to prepay not more than $11,400,000 of other senior
Indebtedness of Parent and its Subsidiaries during the period prior to December
31, 2000. The Lenders hereby agree that the prepayment of the Indebtedness
contemplated by this Section 8 shall not be subject to the covenant set forth in
Section 9.18 of the Loan Agreement.

                  9.       GUARANTY OF MISSOURI BOND PREMIUM. The parents of the
purchasers of the assets of St. Charles Riverfront Station, Inc. and Kansas City
Station Corporation (collectively, the "Purchaser Group") intend to issue, in
the aggregate, $490,000,000 of senior notes to finance the purchase thereof from
Parent and its Subsidiaries. In the event that such notes are sold prior to the
consummation of the sale, the proceeds thereof will be held in an escrow account
pending the

                                      -8-
<PAGE>

issuance of gaming licenses to the Purchaser Group and the satisfaction of other
conditions to the sale transaction and to the release of the escrow funds. In
the event that such conditions are not met by February 27, 2001, the notes will
be subject to a special mandatory redemption at 101% of their original principal
amount plus accrued and unpaid interest thereon.

While Parent and its Subsidiaries shall have no other liabilities with respect
to such notes, in order to facilitate the transaction, Parent intends to issue a
guaranty of the difference between (a) the amount deposited into the escrow
account from the net proceeds of the notes after discounts, commissions,
expenses and other applicable charges, and (b) the amount required to redeem the
notes (including the payment of the 1% redemption premium thereon, accrued
interest and any other applicable charges), in the event that the Purchaser
Group is unable to obtain the requisite Missouri gaming licenses, satisfy the
other conditions to the release of escrowed funds and/or consummate the
transaction. The Lenders hereby consent to the issuance of the guaranty
described in this Section 9 as so limited.

                  10.      EXEMPTION OF AUBURN LAND FROM PLEDGE. The Lenders
hereby agree that the approximately 49 acre site purchased by Parent and its
Subsidiaries and located in the Sacramento, California area for approximately
$1,160,000 and intended for use in connection with the Auburn Community Indian
Casino shall not be required to be subject to a Lien in favor of the
Administrative Agent and the Lenders.

                  11.      CONDITIONS PRECEDENT. The effectiveness of this
Amendment shall be conditioned upon receipt by the Administrative Agent of all
of the following:

                           (a)      Counterparts of this Amendment executed by
                                    all parties hereto;

                           (b)      Written consents of each of the Sibling
                                    Guarantors to the execution, delivery and
                                    performance hereof in the form of Exhibit A
                                    to this Amendment;

                           (c)      Written consent of the Lenders as required
                                    under Section 14.2 of the Loan Agreement in
                                    the form of Exhibit B to this Amendment; and

                           (d)      Such other assurances, certificates,
                                    documents, consents or opinions as the
                                    Administrative Agent or the Lenders
                                    reasonably may require.

                  12.      REAL PROPERTY DOCUMENTATION. Not later than 90 days
after the date of this Amendment, Parent shall execute or cause the appropriate
Borrower to execute such deeds of trust or other documents (including, without
limitation, title insurance policies or a written commitment from a nationally
recognized title insurance company to issue such policies), each in form and
substance reasonably satisfactory to Administrative Agent, as shall be
reasonably required by Administrative Agent for purposes of complying with
Section 5.11 and/or Section 8.3 of the Loan Agreement with respect to the Real
Property described on Annex I hereto. Each of the parties hereto acknowledges
that the failure to comply with this Section 12 shall constitute an Event of
Default under the Loan Agreement.

                  13.      CONSENT TO AMENDMENT TO INDENTURES. The Lenders
hereby consent to the Amendment of the Model Indenture so as to (a) modify the
definition of "Consolidated Net Income"

                                      -9-
<PAGE>

to exclude only the $110,000,000 nonrecurring loss resulting from the write-down
of asset values related to Station Casino St. Charles in the fiscal year ended
December 31, 1999 (and not all extraordinary or non-recurring losses), and (b)
modify the Restricted Payments covenant so that negative extraordinary charges
that are not reflected in Consolidated Net Income, other than the $110,000,000
nonrecurring loss resulting from the write-down of asset values related to
Station Casino St. Charles in the fiscal year ended December 31, 1999, will
reduce Consolidated Net Income available for "Restricted Payments" (as defined
therein), in each case in the form of the draft heretofore supplied to the
Administrative Agent.

                  14.      REPRESENTATIONS AND WARRANTIES. Borrowers hereby
represent and warrant that no Default or Event of Default has occurred and
remains continuing.

                [Remainder of this page intentionally left blank]

                                      -10-

<PAGE>

                  15.      CONSENT OF PARENT. The execution of this Amendment by
Parent shall constitute its consent, in its capacity as guarantor under the
Parent Guaranty, to this Amendment.

                  16.      CONFIRMATION. In all other respects, the terms of the
Loan Agreement and the other Loan Documents are hereby confirmed.

                  IN WITNESS WHEREOF, Borrowers and the Administrative Agent
have executed this Amendment as of the date first above written by their duly
authorized representatives.

                         PALACE STATION HOTEL & CASINOS, INC.
                         BOULDER STATION, INC.
                         TEXAS STATION, INC.
                         ST. CHARLES RIVERFRONT STATION, INC.
                         KANSAS CITY STATION CORPORATION
                         SUNSET STATION, INC.

                         By:      /s/ Glenn C. Christenson
                                  ----------------------------------------------
                                  Glenn C. Christenson, Senior Vice President

                         STATION CASINOS, INC.

                         By:      /s/ Glenn C. Christenson
                                  ----------------------------------------------
                                  Glenn C. Christenson, Executive Vice President
                                  and Chief Financial Officer

                         BANK OF AMERICA, N.A., as Administrative Agent

                         By:      /s/ Janice Hammond
                                  ----------------------------------------------
                                  Janice Hammond
                                  Vice President

                                      -11-

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