Document:

exv4w2

Exhibit 4.2

SECURITY AGREEMENT

          This SECURITY AGREEMENT dated as of March 16, 2010, is made by MGM GRAND HOTEL, LLC, a Nevada
limited liability company (the “Grantor”) and U.S. Bank National Association, as collateral agent
for the benefit of the Secured Parties (as defined below) under the Indenture (as defined below)
(in such capacity, together with its successors in such capacity, “Collateral Agent”), with
reference to the following facts:

RECITALS

          A. MGM MIRAGE, a Delaware corporation ( “Issuer”) concurrently entered into that certain
Indenture dated as of March 16, 2010 (as amended, supplemented or otherwise modified from time to
time, the “Indenture”), among Issuer, the guarantors party thereto (including the Grantor) and the
Trustee, pursuant to which Issuer issued those certain 9% senior secured notes due 2020 (together
with any additional notes and exchange notes issued pursuant to the Indenture, the “Notes”).

          B. The Holders of the Notes (collectively, the “Noteholders”) are willing to purchase the
Notes for the purposes of, among other things, providing Issuer and its subsidiaries funds to repay
existing indebtedness and provide working capital.

          C. The Grantor is a subsidiary of Issuer, and will derive substantial benefit from the
purchase of the Notes by the Noteholders.

          D. As a condition precedent to purchasing the Notes, the Noteholders require that the Grantor
enter into this Agreement and grant the security interests to the Collateral Agent as herein
provided as security for Issuer’s obligations under the Indenture.

          E. Pursuant to the 13% Secured Notes Indenture, the holders of the 13% Secured Notes issued
under the 13% Secured Notes Indenture (the “13% Secured Notes Secured Parties”) purchased the 13%
Secured Notes of the Issuer upon the terms and subject to the conditions set forth therein.

          F. The 13% Secured Notes Indenture restricts the ability of the Grantor to grant a security
interest in the Collateral to secure the Notes Obligations, unless the Grantor grants an equal and
ratable security interest in the Collateral to secure the Obligations under the 13% Secured Notes
and 13% Secured Notes Indenture (the “13% Secured Notes Obligations”).

AGREEMENT

          NOW, THEREFORE, for other good and valuable consideration, the receipt and adequacy of which
hereby are acknowledged, the Grantor hereby represents, warrants, covenants, agrees, assigns and
grants as follows:

          1. Definitions. This Agreement is the “Security Agreement” referred to in the
Indenture. Terms defined in the Indenture and not otherwise defined in this Agreement shall have
the meanings defined for those terms in the Indenture. Terms defined
in the Nevada Uni-

 

 

form Commercial Code (“NVUCC”) and not otherwise defined in this Agreement or in the Indenture
shall have the meanings defined for those terms in the NVUCC. As used in this Agreement, the
following terms shall have the meanings respectively set forth after each:

          “13% Secured Notes Obligations” shall have the meaning assigned to such term in Recital
F.

          “13% Secured Notes Secured Parties” shall have the meaning assigned to such term in
Recital E.

          “Agreement” means this Security Agreement, and any extensions, modifications, renewals,
restatements, supplements or amendments hereof.

          “Capital Stock” means:

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

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

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

     (d) any other interest or participation that confers on a Person the right to receive a
share of the profits and losses of, or distributions of assets or properties of, the issuing
Person.

          “Collateral” means and includes all present and future right, title and interest of the
Grantor in or to any personal property or assets whatsoever, and all rights and powers of the
Grantor to transfer any interest in or to any personal property or assets whatsoever, including,
without limitation, any and all of the following personal property:

     (a) All present and future accounts, accounts receivable, payment intangibles,
agreements, contracts, leases, contract rights, rights to payment, instruments, promissory
notes, documents, chattel paper, security agreements, guaranties, undertakings, surety
bonds, health-care-insurance receivables, insurance policies, commercial tort claims listed
on Schedule 4(h), notes and drafts, and all forms of obligations owing to the Grantor or in
which the Grantor may have any interest, however created or arising;

     (b) All present and future general intangibles, all tax refunds of every kind and
nature to which the Grantor now or hereafter may become entitled, however arising, all other
refunds, and all deposits, reserves, loans, royalties, cost savings, deferred payments,
goodwill, choses in action, trade secrets, computer programs, software, customer lists,
trademarks (including any applications therefor), trade names, service marks, patents
(including any applications therefor), licenses (including, without limitation, the
Trademark License Agreement) or sublicenses (to the extent that there exists no prohibition
as a matter of law or pursuant to any agreements governing such licenses or subli-

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censes on the transfer thereof for security as contemplated by this Agreement),
copyrights (including any applications therefor), technology, processes, proprietary
information and insurance proceeds of which the Grantor is a beneficiary (other than any
licenses issued by a Gaming Authority or pursuant to any Gaming Laws but only to the extent
that granting a security interest in such licenses would violate applicable Gaming Law);

     (c) Whether characterized as accounts, general intangibles or otherwise, all rents
(including, without limitation, prepaid rents, fixed, additional and contingent rents),
issues, profits, receipts, earnings, revenue, income, security deposits, occupancy charges,
hotel room charges, cabana charges, casino revenues, show ticket revenues, food and beverage
revenues, room service revenues, merchandise sales revenues, parking, maintenance, common
area, tax, insurance, utility and service charges and contributions, instruction fees,
membership charges, restaurant and snack bar revenues;

     (d) All present and future letter-of-credit rights of the Grantor;

     (e) All present and future books and records, including, without limitation, books of
account and ledgers of every kind and nature, all electronically recorded data relating to
the Grantor or its business, all receptacles and containers for such records, and all files
and correspondence;

     (f) All present and future goods, including, without limitation, all farm products,
inventory, equipment, video lottery terminals, slot machines and other gaming devices and
associated equipment, machinery, tools, molds, dies, furniture, furnishings, trade fixtures,
motor vehicles, aircraft, documented and undocumented vessels, ships and other watercraft,
and all other goods used in connection with or in the conduct of the Grantor’s business;

     (g) All present and future inventory and merchandise, including, without limitation,
all present and future goods held for sale or lease or to be furnished under a contract of
service, all raw materials, work in process and finished goods, all packing materials,
supplies and containers relating to or used in connection with any of the foregoing, and all
bills of lading, warehouse receipts or documents of title relating to any of the foregoing;

     (h) All present and future investment property, stocks, bonds, debentures, securities,
security entitlements, securities accounts, commodity contracts, commodity accounts,
subscription rights, options, warrants, puts, calls, certificates, partnership interests,
limited liability company membership or other interests, certificates of deposit, joint
venture interests, Investments and/or brokerage accounts and all rights, preferences,
privileges, dividends, distributions, redemption payments, or liquidation payments with
respect thereto;

     (i) All present and future accessions, appurtenances, components, repairs, repair
parts, spare parts, replacements, substitutions, additions, issue and/or improvements to or
of or with respect to any of the foregoing;

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     (j) All other tangible and intangible personal property of the Grantor;

     (k) All rights, remedies, powers and/or privileges of the Grantor with respect to any
of the foregoing; and

     (l) Any and all proceeds and products of any of the foregoing, including, without
limitation, all accounts, general intangibles, payment intangibles, documents, promissory
notes, instruments, certificates of deposit, chattel paper, investment property, goods,
insurance proceeds, and any other tangible or intangible property received upon the sale or
disposition of any of the foregoing.

          Notwithstanding anything to the contrary in this Agreement, the term “Collateral” shall not
include (i) any of the Excluded Assets, (ii) any license, permit, or authorization issued by any of
the Gaming Authorities or any other Governmental Authority, or any other Collateral, which may not
be pledged or in which a security interest may not be granted under Gaming Laws, or other
applicable law, or under the terms of any such license, permit, or authorization, or which would
require a finding of suitability or other similar approval or procedure by any of the Gaming
Authorities or any other Governmental Authority prior to being pledged, hypothecated, or given as
collateral security (collectively, the “Gaming Collateral”) (to the extent such finding or approval
has not been obtained) or (iii) any lease, license, contract, general intangible or agreement to
which the Grantor is a party or any of its rights or interests thereunder if and for so long as the
grant of such security interest shall constitute or result in (1) the abandonment, invalidation or
unenforceability of any right, title or interest of the Grantor therein or (2) in a breach or
termination pursuant to the terms of, or a default under, any such lease, license, contract,
general intangible or agreement (in each case, other than to the extent that any such term would be
rendered ineffective pursuant to Sections 104.9401, 104.9406, 104.9407, 104.9408 or 104.9409 of the
NVUCC (or any successor provision or provisions) of any relevant jurisdiction or any other
applicable Law), provided, however, that the Collateral shall include and such security interest
shall attach immediately at such time as the condition causing such abandonment, invalidation or
unenforceability shall be remedied and to the extent severable, shall attach immediately to any
portion of such lease, license, contract, general intangible or agreement that does not result in
any of the consequences specified in (1) or (2) above; and (iv) any asset owned by the Grantor that
is subject to a Lien securing Indebtedness (including Capitalized Lease Obligations) incurred to
finance the purchase, lease or improvement of such asset and permitted to be incurred pursuant to
the provisions of the Indenture if the contract or other agreement in which such Lien is granted
(or the documentation providing for such Indebtedness) validly prohibits the creation of any other
Lien on such asset.

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

          “Excluded Assets” means the cash, deposit accounts, other assets and properties to the extent
the grant of security therein is restricted by law or contract (and which is not subject to the
Uniform Commercial Code or a similar statutory override), trade name “MGM Grand” and related
trademarks, service marks and copyrights (provided that upon the transfer of the MGM Grand
trademark from the Issuer or the Grantor to another Restricted Subsidiary that is not a

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Collateral Grantor such Restricted Subsidiary will grant to Grantor a perpetual non-exclusive
license (subject to customary termination provisions) to such trademark providing for an annual
royalty not to exceed 1% total revenues of Grantor, and any sublicensees, which license and rights
thereunder will be part of the Collateral).

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

          “Indenture” shall have the meaning assigned to such term in Recital A.

          “Issuer” shall have the meaning assigned to such term in Recital A.

          “Intercompany Notes” means, collectively, any intercompany promissory note executed by any
Subsidiary of the Grantor or any Affiliate of the Grantor evidencing any Indebtedness of such party
to the Grantor.

          “Law” means, collectively, all international, foreign, United States federal and state and
local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative or
judicial precedents or authorities, including the interpretation or administration thereof by any
Governmental Authority charged with the enforcement, interpretation or administration thereof, and
all applicable administrative orders, directed duties, requests, licenses, authorizations and
permits of, and agreements with, any Governmental Authority.

          “Mortgaged Property” shall have the meaning given to the term “Trust Estate” in each Mortgage.

          “Note Documents” means this Agreement, the Indenture, the Notes, the Subsidiary Guarantees,
the Registration Rights Agreement, the Pledge Agreement or any other document, instrument or
agreement arising out of or relating to any of the foregoing, in each case as amended, supplemented
or otherwise modified from time to time.

          “Note Obligations” means any and all present and future Obligations of any type or nature of
the Grantor arising under or relating to the Indenture, the Notes, the Subsidiary Guarantees and
the other Note Documents to which the Grantor is a party.

          “Noteholders” shall have the meaning assigned to such term in Recital B.

          “Notes” shall have the meaning assigned to such term in Recital A.

          “Secured Obligations” means (i) the Note Obligations and (ii) the 13% Secured Notes
Obligations.

          “Secured Parties” means, collectively, Collateral Agent, the Trustee, the Noteholders, 13%
Secured Notes Secured Parties and the trustee under the 13% Secured Notes Indenture.

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          “Trademark License Agreement” means the Trademark License Agreement dated as of March 16,
2010, by and between MGM Mirage, a Delaware corporation, as Licensor and MGM Grand, for its and on
behalf of each of its subsidiaries, collectively, as licensee.

          2. Further Assurances. Subject to compliance with applicable Gaming Laws, at any time
and from time to time at the written request of Collateral Agent, the Grantor shall execute and
deliver to Collateral Agent all such financing statements and other instruments and documents in
form and substance satisfactory to Collateral Agent as shall be necessary or desirable to fully
perfect, when filed and/or recorded, Collateral Agent’s security interests granted pursuant to
Section 3 of this Agreement. At any time and from time to time, Collateral Agent shall be
entitled to authenticate on behalf and in the name of the Grantor, file and/or record any or all
such financing statements, instruments and documents held by it, and any or all such further
financing statements, documents and instruments, and to take all such other actions, as Collateral
Agent may deem appropriate to perfect and to maintain perfected the security interests granted in
Section 3 of this Agreement. Before and after the occurrence of any Event of Default, at
Collateral Agent’s written request, the Grantor shall execute all such further financing
statements, instruments and documents, and shall do all such further acts and things, as may be
required, or as may be deemed necessary or desirable by Collateral Agent to create and perfect, and
to continue and preserve, an indefeasible security interest in the Collateral in favor of
Collateral Agent, or the priority thereof. With respect to any Collateral consisting of
securities, instruments, partnership or joint venture interests or the like, the Grantor hereby
consents and agrees that the issuers of, or obligors on, any such Collateral, or any registrar or
transfer agent or trustee for any such Collateral, shall be entitled to accept the provisions of
this Agreement as conclusive evidence of the right of Collateral Agent to effect any transfer or
exercise any right hereunder or with respect to any such Collateral, notwithstanding any other
notice or direction to the contrary heretofore or hereafter given by the Grantor or any other
Person to such issuers or such obligors or to any such registrar or transfer agent or trustee.

          3. Security Agreement. For valuable consideration, the Grantor hereby assigns and
pledges to Collateral Agent, and grants to Collateral Agent for the benefit of the Secured Parties,
a security interest in, all Collateral, as security for the timely and complete payment and
performance of the Secured Obligations. This Agreement is a continuing and irrevocable agreement
and all the rights, powers, privileges and remedies hereunder shall apply to any and all Secured
Obligations, including those arising under successive transactions which shall either continue the
Secured Obligations, increase or decrease them and notwithstanding the bankruptcy of the Grantor or
any other Person or any other event or proceeding affecting any Person.

          4. Grantor’s Representations and Warranties. To induce the Collateral Agent to enter
into the Indenture and to induce the Noteholders to purchase the Notes, the Grantor hereby
represents and warrants to the Collateral Agent and each Secured Party that as of the Closing Date:

     (a) Title; No Other Liens. Except for the security interest granted to the Collateral
Agent pursuant to this Agreement and those Permitted Liens described in the last

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sentence of the definition of “Permitted Liens” in the Indenture, the Grantor owns each
item of the Collateral free and clear of any and all Liens.

     (b) Perfected Liens. The security interests granted pursuant to this Agreement (i)
constitute valid security interests in all of the Collateral in favor of the Collateral
Agent, for the benefit of the Secured Parties, as collateral security for the Secured
Obligations, perfected to the extent perfection may be achieved by filing UCC1 financing
statements or by other action required to be taken by the terms of this Agreement and
enforceable in accordance with the terms hereof against all creditors of the Grantor, except
as enforcement may be limited by applicable bankruptcy, insolvency, moratorium,
reorganization or other similar laws affecting the enforcement of creditors’ rights or by
equitable principles related to the granting of specific performance and other equitable
remedies as a matter of judicial discretion; and (ii) are prior to all other Liens on the
Collateral.

     (c) Securities Accounts. Schedule 4(c) sets forth a complete list of all
securities accounts maintained by the Grantor on the date hereof, except for securities
accounts which have an account balance in the aggregate not exceeding $1,000,000, and
includes the name and location of the securities intermediaries with which such securities
accounts are maintained and the account numbers. No agreement or arrangement establishing
“control” within the meaning of the NVUCC has been entered into with respect to any
securities account maintained by the Grantor.

     (d) Goods Covered by Certificate of Title. Schedule 4(d) sets forth a complete
list of all goods owned by the Grantor on the date hereof which are covered by a certificate
of title, including, without limitation, motor vehicles, except for goods that have a fair
value in the aggregate not exceeding $1,000,000.

     (e) Investment Property. Schedule 4(e) sets forth a complete list of all
investment property of the Grantor, except for investment property having a fair value in
the aggregate not exceeding $1,000,000.

     (f) Instruments. Schedule 4(f) sets forth a complete list of all instruments
of the Grantor, including, without limitation, Intercompany Notes, except for instruments
which have a face value not exceeding $1,000,000.

     (g) Chattel Paper. The Grantor does not own any material amount of chattel paper.

     (h) Commercial Tort Claims. Schedule 4(h) sets forth a complete list of all
commercial tort claims of the Grantor that have been asserted in judicial or arbitration
proceedings in existence on the Closing Date and seeking damages in excess of $1,000,000.

          5. Covenants. The Grantor covenants and agrees that, from and after the date of this
Agreement until the Notes Obligations shall have been paid in full or the relevant Collateral has
been released in accordance with Section 11.04 and 11.05 of the Indenture:

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     (a) Delivery of Collateral Perfected by Possession. With respect to any Collateral
consisting of securities, instruments or the like, as to which Collateral Agent’s security
interest need be perfected by, or the priority thereof need be assured by, possession of
such Collateral, the Grantor will promptly deliver possession of any such Collateral with a
fair value or face value equal to or exceeding $1,000,000 individually or $5,000,000 in the
aggregate in pledge to Collateral Agent or as directed by the Collateral Agent, and the
Grantor will take all actions necessary to vest such possession in Collateral Agent or any
agent of the Collateral Agent as directed by the Collateral Agent;

     (b) Securities Accounts. If the Grantor maintains any securities accounts in which
balances exceed $1,000,000 in the aggregate for any period of thirty consecutive days, the
Grantor will deliver a duly executed control agreement with respect to such Collateral in
form and substance reasonably satisfactory to Collateral Agent;

     (c) Motor Vehicles. If the Grantor at any time has motor vehicles or other Collateral
subject to certificates of title having an aggregate value exceeding $1,000,000, the Grantor
will cause certificates of title evidencing such excess amount of Collateral to reflect the
Lien in favor of Collateral Agent and notify Collateral Agent of such circumstance;

     (d) Commercial Tort Claims. The Grantor shall notify Collateral Agent of any material
commercial tort claim asserted by it in any judicial or arbitration proceeding within thirty
days of the assertion thereof and unless consented otherwise by Collateral Agent, the
Grantor shall enter into such supplemental documentation as Collateral Agent may reasonably
request to perfect a Lien in favor of Collateral Agent, for the benefit of the Secured
Parties, in such commercial tort claim;

     (e) Taxes. The Grantor will pay, prior to delinquency, all taxes, charges, Liens and
assessments against the Collateral, except such as are expressly permitted by the Indenture
or are timely contested in good faith, and upon its failure to pay or so contest such taxes,
charges, Liens and assessments, Collateral Agent at its option, following written notice to
the Grantor of its intention to do so, may pay any of them, and Collateral Agent shall be
the sole judge of the legality or validity thereof and the amount necessary to discharge the
same;

     (f) Compliance with Law. The Collateral will not be knowingly used for any unlawful
purpose or in violation of any Law, nor used in any way that will void or impair any
insurance required to be carried in connection therewith;

     (g) Preservation. The Grantor will, to the extent consistent with good business
practice, keep the Collateral in reasonably good repair, working order and condition, and
from time to time make all needful and proper repairs, renewals, replacements, additions and
improvements thereto and, as appropriate and applicable, will otherwise deal with the
Collateral in all such ways as are considered good practice by owners of like property, and
will take all commercially reasonable steps to preserve and protect the Collateral;

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     (h) Insurance. Until the release of the Liens on the Collateral as provided in this
Agreement, the Grantor will maintain insurance with respect to the Collateral with carriers
against such risks, in such amounts and with such deductibles as the Grantor determines to
be reasonably prudent (as determined by the management in good faith) and consistent with
the past practices of the Grantor, and name Collateral Agent as an additional insured or,
with respect to casualty insurance, loss payee , as the case may be, with losses in excess
of $1,000,000 payable jointly to the Grantor and Collateral Agent (unless an Event of
Default has occurred and is then continuing, in which case all losses are payable solely to
Collateral Agent), with no recourse against Trustee or Collateral Agent for the payment of
premiums, deductibles, commissions or club calls, and will furnish copies of such insurance
policies or certificates to Collateral Agent promptly upon request therefor;

     (i) Notification of Damage. The Grantor will promptly notify Collateral Agent in
writing in the event of any substantial or material damage to the Collateral from any source
whatsoever, and, except for the disposition of collections and other proceeds of the
Collateral permitted by Section 6 hereof, the Grantor will not remove or permit to
be removed any material part of the Collateral from its place of business without the prior
written consent of Collateral Agent, except for such items of the Collateral as are removed
in the ordinary course of business or in connection with any transaction or disposition
otherwise permitted by the Indenture; and

     (j) Changes of Name or Address. In the event the Grantor changes its name, its address
or its jurisdiction of organization as are set forth herein or in the Indenture, the Grantor
will notify Collateral Agent of such name and/or address change promptly, but in any event
within 5 business days and the Grantor shall take all action necessary to maintain the
perfection and priority of the security interest of the Collateral Agent for the benefit of
the Secured Parties in the Collateral.

          6. Collateral Agent’s Rights Regarding Collateral. Subject to the limitations set
forth below Collateral Agent may, subject to Gaming Laws, to the extent it may be necessary or
desirable to protect the security hereunder, but Collateral Agent shall not be obligated to, enter
upon any premises on which Collateral is situated during regular office business hours and upon
reasonable notice and examine the same. Collateral Agent may perform such Collateral inspections
no more than twice in each calendar year, unless the Grantor provides consent for additional
inspections after written request from Collateral Agent, which consent shall not be unreasonably
withheld. If an Event of Default has occurred and is continuing, without notice or demand and at
the expense of the Grantor, Collateral Agent may, subject to Gaming Laws, to the extent it may be
necessary or desirable to protect the security hereunder, but Collateral Agent shall not be
obligated to, enter upon any premises on which Collateral is situated at any time without notice
and examine the same. Upon the occurrence and continuation of an Event of Default, Collateral
Agent may, subject to Gaming Laws, to the extent it may be necessary or desirable to protect the
security hereunder, but Collateral Agent shall not be obligated to, perform any obligation of the
Grantor under this Agreement or any obligation of any other Person under the Note Documents, the
13% Secured Notes or 13% Secured Notes Indenture. The Grantor shall maintain books and records
pertaining to the Collateral in such detail, form and scope as is con-

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sistent with the Grantor’s past practices. The Grantor shall at any time at Collateral
Agent’s request mark the Collateral and/or the Grantor’s ledger cards, books of account and other
records relating to the Collateral with appropriate notations reasonably satisfactory to Collateral
Agent disclosing that they are subject to Collateral Agent’s security interests. Prior to an Event
of Default, subject to the limitation set forth below, at any time during regular office business
hours and upon reasonable notice to the Grantor, Collateral Agent shall have reasonable access to
and the right to audit any and all of the Grantor’s books and records pertaining to the Collateral,
and to confirm and verify the value of the Collateral and to do whatever else Collateral Agent
reasonably may deem necessary or desirable to protect its interests. Collateral Agent may perform
such audit of the the Grantor’s books and records twice in each calendar year, unless the Grantor
provides consent to additional audits after written request from Collateral Agent, which consent
shall not be unreasonably withheld. If an Event of Default has occurred and is continuing, at all
times on reasonable notice to the Grantor, Collateral Agent shall have full access to and the right
to audit any and all of the Grantor’s books and records pertaining to the Collateral, and to
confirm and verify the value of the Collateral and to do whatever else Collateral Agent reasonably
may deem necessary or desirable to protect its interests; provided, however, that any such action
which involves communicating with customers of the Grantor shall be carried out by Collateral Agent
through the Grantor’s independent auditors unless Collateral Agent shall then have the right
directly to notify obligors on the Collateral as provided in Section 10. Collateral Agent
shall be under no duty or obligation whatsoever to take any action to preserve any rights of or
against any prior or other parties in connection with the Collateral, to exercise any voting rights
or managerial rights with respect to any Collateral, whether or not an Event of Default shall have
occurred, or to make or give any presentments, demands for performance, notices of non-performance,
protests, notices of protests, notices of dishonor or notices of any other nature whatsoever in
connection with the Collateral or the Secured Obligations. Collateral Agent shall be under no duty
or obligation whatsoever to take any action to protect or preserve the Collateral or any rights of
the Grantor therein, or to make collections or enforce payment thereon, or to participate in any
foreclosure or other proceeding in connection therewith.

          7. Collections on the Collateral. So long as no Event of Default shall have occurred
and be continuing, and until Collateral Agent suspends such rights, the Grantor will be entitled to
receive the benefit of all cash dividends, interest and other payments made upon or with respect to
the Collateral by the Grantor. Upon the occurrence and during the continuance of an Event of
Default, at the election of Collateral Agent or the Noteholders holding a majority in aggregate
principal amount of the Notes then outstanding pursuant to Section 6.12 of the Indenture to suspend
such rights, (i) all rights of the Grantor to receive all cash dividends, interest and other
payments made upon or with respect to the Collateral will cease, and such cash dividends, interest
and other payments will be paid to Collateral Agent; (ii) all rights of the Grantor to exercise
such voting or other consensual rights shall cease, and all such rights shall become vested in
Collateral Agent which, to the extent permitted by law, will have the sole right to exercise such
rights; and (iii) Collateral Agent may sell the Collateral or any part thereof in accordance with
the terms of this Agreement. Any remittance received by the Grantor from any Person shall be
presumed to relate to the Collateral and to be subject to Collateral Agent’s security interests.
Upon the occurrence and during the continuance of an Event of Default, Collateral Agent shall have
the right at all times to receive, receipt for, endorse, assign, deposit and deliver, in the name
of Collateral Agent or in the name of the Grantor, any and all checks, notes, drafts and other in-

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struments for the payment of money constituting proceeds of or otherwise relating to the
Collateral; and the Grantor hereby authorizes Collateral Agent to affix, by facsimile signature or
otherwise, the general or special endorsement of it, in such manner as Collateral Agent shall deem
advisable, to any such instrument in the event the same has been delivered to or obtained by
Collateral Agent without appropriate endorsement, and Collateral Agent and any collecting bank are
hereby authorized to consider such endorsement to be a sufficient, valid and effective endorsement
by the Grantor, to the same extent as though it were manually executed by the duly authorized
officer of the Grantor, regardless of by whom or under what circumstances or by what authority such
facsimile signature or other endorsement actually is affixed, without duty of inquiry or
responsibility as to such matters, and the Grantor hereby expressly waives demand, presentment,
protest and notice of protest or dishonor and all other notices of every kind and nature with
respect to any such instrument.

          8. Possession of Collateral by Collateral Agent. All the Collateral now, heretofore
or hereafter delivered to Collateral Agent shall be held by Collateral Agent in its possession,
custody and control. Nothing herein shall obligate Collateral Agent to invest any Collateral or
obtain any particular return thereon. Upon the occurrence and during the continuance of an Event
of Default, whenever any of the Collateral is in Collateral Agent’s possession, custody or control,
Collateral Agent may use, operate and consume the Collateral, whether for the purpose of preserving
and/or protecting the Collateral, or for the purpose of performing any of the Grantor’s obligations
with respect thereto, or otherwise. Collateral Agent may at any time deliver or redeliver the
Collateral or any part thereof to the Grantor, and the receipt of any of the same by the Grantor
shall be complete and full acquittance for the Collateral so delivered, and Collateral Agent
thereafter shall be discharged from any liability or responsibility therefor. So long as
Collateral Agent exercises reasonable care with respect to any Collateral in its possession,
custody or control, Collateral Agent shall have no liability for any loss of or damage to such
Collateral, and in no event shall Collateral Agent have liability for any diminution in value of
Collateral occasioned by economic or market conditions or events. Collateral Agent shall be deemed
to have exercised reasonable care within the meaning of the preceding sentence if the Collateral in
the possession, custody or control of Collateral Agent is accorded treatment substantially equal to
that which Collateral Agent accords its own property, it being understood that Collateral Agent
shall not have any responsibility for (a) ascertaining or taking action with respect to calls,
conversions, exchanges, maturities, tenders or other matters relating to any Collateral, whether or
not Collateral Agent has or is deemed to have knowledge of such matters, or (b) taking any
necessary steps to preserve rights against any Person with respect to any Collateral.

          Collateral Agent shall not be responsible for filing any financing or continuation statements
or recording any documents or instruments in any public office at any time or times or otherwise
perfecting or maintaining the perfection of any security interest in the Collateral. The
Collateral Agent shall be deemed to have exercised reasonable care in the custody of the Collateral
in its possession if the Collateral is accorded treatment substantially equal to that which it
accords its own property and shall not be liable or responsible for any loss or diminution in the
value of any of the Collateral, by reason of the act or omission of any carrier, forwarding agency
or other agent or bailee selected by the Collateral Agent in good faith. Collateral Agent shall
not be responsible for the existence, genuineness or value of any of the Collateral or for the
validity, perfection, priority or enforceability of the Liens in any of the Collateral, whether
impaired by

11

 

operation of law or by reason of any action or omission to act on its part hereunder, except
to the extent such action or omission constitutes gross negligence, bad faith or willful misconduct
on the part of Collateral Agent, for the validity or sufficiency of the Collateral or any agreement
or assignment contained therein, for the validity of the title of the Grantor to the Collateral,
for insuring the Collateral or for the payment of taxes, charges, assessments or Liens upon the
Collateral or otherwise as to the maintenance of the Collateral. Notwithstanding anything in this
Agreement to the contrary and for the avoidance of doubt, the Collateral Agent shall have no duty
to act outside of the United States in respect of any Collateral located in the jurisdiction other
than the United States.

          Collateral Agent may act and rely and shall be protected in acting and relying in good faith
on the opinion or advice of or information obtained from any counsel, accountant, appraiser or
other expert or adviser, whether retained or employed by the Grantor or by the Collateral, in
relation to any matter arising in the administration of the Note Documents.

          The rights, privileges, protections immunities and indemnities contained in the Indenture in
favor of the Trustee shall apply to Collateral Agent’s acceptance and administration of the
Indenture and the other Note Documents to which the Collateral Agent is a party and shall be deemed
to be incorporated by reference therein, except that any references to negligence as they relate to
the Trustee shall be deemed to mean gross negligence as they relate to the Collateral Agent.

          9. Events of Default. There shall be an Event of Default hereunder upon the
occurrence and during the continuance of an Event of Default under the Indenture.

          10. Rights Upon Event of Default. Upon the occurrence and during the continuance of
an Event of Default, Collateral Agent shall have, in any jurisdiction where enforcement hereof is
sought, in addition to all other rights and remedies that Collateral Agent may have under
applicable Law or in equity or under this Agreement (including, without limitation, all rights set
forth in Section 6 hereof), the 13% Secured Notes, the 13% Secured Notes Indenture or under
any other Note Document, all rights and remedies of a secured party under the Uniform Commercial
Code as enacted in any applicable jurisdiction, and, in addition, the following rights and
remedies, all of which may be exercised with or without notice to the Grantor (except to the extent
notice is otherwise required to be given pursuant to the fourth paragraph this Section 10)
and without affecting the Obligations of the Grantor hereunder or under any other Note Document,
the 13% Secured Notes or the 13% Secured Notes Indenture or the enforceability of the Liens and
security interests created hereby:

     (a) to foreclose the Liens and security interests created hereunder or under any other
agreement relating to any Collateral by any available judicial procedure or without judicial
process;

     (b) to enter any premises where any Collateral may be located for the purpose of
securing, protecting, inventorying, appraising, inspecting, repairing, preserving, storing,
preparing, processing, taking possession of or removing the same;

12

 

     (c) to sell, assign, lease or otherwise dispose of any Collateral or any part thereof,
either at public or private sale or at any broker’s board, in lot or in bulk, for cash, on
credit or otherwise, with or without representations or warranties and upon such terms as
shall be acceptable to Collateral Agent;

     (d) to notify obligors on the Collateral that the Collateral has been assigned to
Collateral Agent and that all payments thereon are to be made directly and exclusively to
Collateral Agent;

     (e) to collect by legal proceedings or otherwise all dividends, distributions,
interest, principal or other sums now or hereafter payable upon or on account of the
Collateral;

     (f) to cause the Collateral to be registered in the name of Collateral Agent, as legal
owner;

     (g) to enter into any extension, reorganization, deposit, merger or consolidation
agreement, or any other agreement relating to or affecting the Collateral, and in connection
therewith Collateral Agent may deposit or surrender control of the Collateral and/or accept
other Property in exchange for the Collateral;

     (h) to settle, compromise or release, on terms acceptable to Collateral Agent, in whole
or in part, any amounts owing on the Collateral and/or any disputes with respect thereto;

     (i) to extend the time of payment, make allowances and adjustments and issue credits in
connection with the Collateral in the name of Collateral Agent or in the name of the
Grantor;

     (j) to enforce payment and prosecute any action or proceeding with respect to any or
all of the Collateral and take or bring, in the name of Collateral Agent or in the name of
the Grantor, any and all steps, actions, suits or proceedings deemed by Collateral Agent
necessary or desirable to effect collection of or to realize upon the Collateral, including
any judicial or nonjudicial foreclosure thereof or thereon in accordance with applicable
Law, and the Grantor specifically consents to any nonjudicial foreclosure of any or all of
the Collateral or any other action taken by Collateral Agent which may release any obligor
from personal liability on any of the Collateral, and the Grantor waives to the extent
permitted by Law, any right not expressly provided for in this Agreement to receive notice
of any public or private judicial or nonjudicial sale or foreclosure of any security or any
of the Collateral; and any money or other property received by Collateral Agent in exchange
for or on account of the Collateral, whether representing collections or proceeds of
Collateral, and whether resulting from voluntary payments or foreclosure proceedings or
other legal action taken by Collateral Agent or the Grantor may be applied by Collateral
Agent without notice to the Grantor to the Secured Obligations in such order and manner as
Collateral Agent in its sole discretion shall determine;

     (k) to insure, process and preserve the Collateral;

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     (l) to exercise all rights, remedies, powers or privileges provided under any of the
Note Documents;

     (m) to remove, from any premises where the same may be located, the Collateral and any
and all documents, instruments, files and records, and any receptacles and cabinets
containing the same, relating to the Collateral, and Collateral Agent may, at the cost and
expense of the Grantor, use such of its supplies, equipment, facilities and space at its
places of business as may be reasonably necessary or appropriate to properly administer,
process, store, control, prepare for sale or disposition and/or sell or dispose of the
portion of the Collateral owned by the Grantor or to properly administer and control the
handling of collections and realizations thereon, and Collateral Agent shall be deemed to
have a rent-free tenancy of any premises of the Grantor for such purposes and for such
periods of time as reasonably required by Collateral Agent;

     (n) to receive, open and dispose of all mail addressed to the Grantor and notify postal
authorities to change the address for delivery thereof to such address as Collateral Agent
may designate; provided that Collateral Agent agrees that it will promptly deliver over to
the Grantor such mail as does not relate to the Collateral; and

     (o) to exercise all other rights, powers, privileges and remedies of an owner of the
Collateral; all at Collateral Agent’s sole option and as Collateral Agent in its sole
discretion may deem advisable. The Grantor will, at Collateral Agent’s written request,
assemble the Collateral (or any part thereof, as requested) and make it available to
Collateral Agent at places which Collateral Agent may designate, whether at the premises of
the Grantor or elsewhere (provided, however, that the Grantor shall not be required to
deliver Collateral consisting of gaming devices to a location in a jurisdiction where
possession of such items is unlawful), and will make available to Collateral Agent, free of
cost, all premises, equipment and facilities of the Grantor for the purpose of Collateral
Agent’s taking possession of the Collateral or storing same or removing or putting the
Collateral in salable form or selling or disposing of same.

          Upon the occurrence and during the continuance of an Event of Default, Collateral Agent also
shall have the right, without notice or demand, either in person, by agent or by a receiver to be
appointed by a court, and without regard to the adequacy of any security for the Secured
Obligations, to take possession of the Collateral or any part thereof and to collect and receive
the rents, issues, profits, income and proceeds thereof. Taking possession of the Collateral shall
not cure or waive any Event of Default or notice thereof or invalidate any act done pursuant to
such notice. The rights, remedies and powers of any receiver appointed by a court shall be as
ordered by said court.

          Any public or private sale or other disposition of the Collateral may be held at any office of
Collateral Agent, or at the Grantor’s place of business, or at any other place permitted by
applicable Law, and without the necessity of the Collateral being within the view of prospective
purchasers. With respect to any Collateral located within or subject to the jurisdiction of the
Gaming Authority, Collateral Agent may also request, in connection therewith, the Gaming Authority
to petition such local judicial or administrative tribunal or other authority as may be deemed
appropriate by Collateral Agent for the appointment of a supervisor or similar official to

14

 

conduct the normal gaming activities on the premises following the appointment of a receiver
or similar remedy. Collateral Agent may direct the order and manner of sale of the Collateral, or
portions thereof, as it in its sole and absolute discretion may determine, and the Grantor
expressly waives any right to direct the order and manner of sale of any Collateral. Collateral
Agent or any Person on Collateral Agent’s behalf may bid and purchase at any such sale or other
disposition. The net cash proceeds resulting from the collection, liquidation, sale, lease or
other disposition of the Collateral shall be applied, first, to the expenses (including attorneys’
fees and disbursements) of retaking, holding, storing, processing and preparing for sale or lease,
selling, leasing, collecting, liquidating and the like; and thereafter pro rata to the satisfaction
of the Secured Obligations (i) as among the Noteholders, pursuant to Section 6.06 of the Indenture
and (ii) as among the 13% Secured Notes Secured Parties, as set forth in the 13% Secured Notes
Indenture. In making the determination and allocations required by this Section 10, the
Collateral Agent may conclusively rely upon information supplied by the 13% Secured Notes Secured
Parties or the trustee for the 13% Secured Notes as to the amounts of unpaid principal and interest
and other amounts outstanding with respect to the 13% Secured Notes Obligations and the Collateral
Agent shall have no liability to any of the Secured Parties for actions taken in reliance on such
information. All distributions made by the Collateral Agent pursuant to this Section 10
shall be final, and the Collateral Agent shall have no duty to inquire as to the application by the
13% Secured Notes Secured Parties or trustee for the 13% Secured Notes of any amounts distributed
to the 13% Secured Notes Secured Parties. The Grantor and any other Person then obligated therefor
shall pay to Collateral Agent on written demand any deficiency with regard thereto which may remain
after such sale, disposition, collection or liquidation of the Collateral.

          Unless the Collateral is perishable or threatens to decline speedily in value or is of a type
customarily sold on a recognized market, Collateral Agent will send or otherwise make available to
the Grantor, reasonable notice of the time and place of any public sale thereof or of the time on
or after which any private sale thereof is to be made. The requirement of sending reasonable
notice conclusively shall be met if such notice is mailed, first class mail, postage prepaid, to
the Grantor at its addresses designated below, at least ten days before the date of the sale, the
Grantor expressly waives any right to receive notice of any public or private sale of any
Collateral or other security for the Secured Obligations extent as expressly provided for in this
paragraph.

          With respect to any Collateral consisting of securities, partnership interests, joint venture
interests, Investments or the like, and whether or not any of such Collateral has been effectively
registered under the Securities Act of 1933 or other applicable Laws, Collateral Agent may, in its
sole and absolute discretion, sell all or any part of such Collateral at private sale in such
manner and under such circumstances as Collateral Agent may deem necessary or advisable in order
that the sale may be lawfully conducted. Without limiting the foregoing, Collateral Agent may (i)
approach and negotiate with a limited number of potential purchasers, and (ii) restrict the
prospective bidders or purchasers to persons who will represent and agree that they are purchasing
such Collateral for their own account for investment and not with a view to the distribution or
resale thereof. In the event that any such Collateral is sold at private sale, the Grantor agrees
that if such Collateral is sold for a price which Collateral Agent in good faith believes to be
reasonable under the circumstances then existing, then

15

 

     (a) the sale shall be deemed to be commercially reasonable in all respects,

     (b) the Grantor shall not be entitled to a credit against the Secured Obligations in an
amount in excess of the purchase price, and

     (c) Collateral Agent shall not incur any liability or responsibility to the Grantor in
connection therewith, notwithstanding the possibility that a substantially higher price
might have been realized at a public sale. The Grantor recognizes that a ready market may
not exist for such Collateral if it is not regularly traded on a recognized securities
exchange, and that a sale by Collateral Agent of any such Collateral for an amount
substantially less than a pro rata share of the fair market value of the issuer’s assets
minus liabilities may be commercially reasonable in view of the difficulties that may be
encountered in attempting to sell a large amount of such Collateral or Collateral that is
privately traded.

          Upon consummation of any sale of Collateral hereunder, Collateral Agent shall have the right
to assign, transfer and deliver to the purchaser or purchasers thereof the Collateral so sold.
Each such purchaser at any such sale shall hold the Collateral so sold absolutely free from any
claim or right upon the part of the Grantor or any other Person, and the Grantor hereby waives (to
the extent permitted by applicable Laws) all rights of redemption, stay and appraisal which it now
has or may at any time in the future have under any rule of Law or statute now existing or
hereafter enacted. If the sale of all or any part of the Collateral is made on credit or for
future delivery, Collateral Agent shall not be required to apply any portion of the sale price to
the Secured Obligations until such amount actually is received by Collateral Agent, and any
Collateral so sold may be retained by Collateral Agent until the sale price is paid in full by the
purchaser or purchasers thereof.

          Collateral Agent shall not incur any liability in case any such purchaser or purchasers shall
fail to pay for the Collateral so sold, and, in case of any such failure, the Collateral may be
sold again.

          11. Attorney-in-Fact. The Grantor hereby irrevocably nominates and appoints
Collateral Agent as its attorney-in-fact for the following purposes:

     (a) following Collateral Agent’s request thereof and the Grantor’s failure to perform
within the time frame permitted by this Agreement or any other Collateral Document, to do
all acts and things which Collateral Agent may deem necessary or advisable to perfect and to
continue to perfect the security interests created by this Agreement or any other Collateral
Document and, upon the occurrence and during the continuance of an Event of Default, to
preserve, process, develop, maintain and protect the Collateral or Mortgaged Property;

     (b) upon the occurrence and during the continuance of an Event of Default, to do any
and every act which the Grantor is obligated to do under this Agreement or any other
Collateral Document, at the expense of the Grantor and without any obligation to do so;

16

 

     (c) following Collateral Agent’s request thereof and the Grantor’s failure to perform
within the time frame permitted by this Agreement, to prepare, sign, file and/or record, for
the Grantor, in the name of the Grantor, any financing statement, application for
registration, or like paper, and to take any other action deemed by Collateral Agent
necessary or desirable in order to perfect or maintain perfected the security interests
granted hereby or any other Collateral Document; and

     (d) upon the occurrence and during the continuance of an Event of Default, to execute
any and all papers and instruments and do all other things necessary or desirable to
preserve and protect the Collateral or Mortgaged Property and to protect Collateral Agent’s
security interests therein or liens thereon; provided, however, that Collateral Agent shall
be under no obligation whatsoever to take any of the foregoing actions, and, absent bad
faith or actual malice, Collateral Agent shall have no liability or responsibility for any
act taken or omission with respect thereto.

          12. Costs and Expenses. The Grantor agrees to pay to Collateral Agent all costs and
expenses (including, without limitation, attorneys’ fees and disbursements) incurred by Collateral
Agent in the enforcement or attempted enforcement of this Agreement or any other Collateral
Document, whether or not an action is filed in connection therewith, and in connection with any
waiver or amendment of any term or provision hereof. All advances, charges, costs and expenses,
including attorneys’ fees and disbursements, incurred or paid by Collateral Agent in exercising any
right, privilege, power or remedy conferred by this Agreement or any other Collateral Document
(including, without limitation, the right to perform any Secured Obligation of the Grantor under
the Note Documents, 13% Secured Notes or 13% Secured Notes Indenture), or in the enforcement or
attempted enforcement thereof, shall be secured hereby and shall become a part of the Secured
Obligations and shall be paid to Collateral Agent by the Grantor, promptly following written
demand.

          13. Statute of Limitations and Other Laws. Until the Notes Obligations, other than
contingent indemnification obligations, shall have been paid and performed in full, the power of
sale and all other rights, privileges, powers and remedies granted to Collateral Agent hereunder
shall continue to exist and may be exercised by Collateral Agent at any time and from time to time
irrespective of the fact that any of the Secured Obligations may have become barred by any statute
of limitations. The Grantor expressly waives the benefit of any and all statutes of limitation,
and any and all Laws providing for exemption of property from execution or for valuation and
appraisal upon foreclosure, to the maximum extent permitted by applicable Law.

          14. Other Agreements. Nothing herein shall in any way modify or limit the effect of
terms or conditions set forth in any other security or other agreement executed by the Grantor or
in connection with the Secured Obligations, but each and every term and condition hereof shall be
in addition thereto. All provisions contained in the Indenture or any other Note Document that
apply to Note Documents generally are fully applicable to this Agreement and are incorporated
herein by this reference.

          15. Understandings With Respect to Waivers and Consents. The Grantor warrants and
agrees that each of the waivers and consents set forth herein are made after consultation with
legal counsel and with full knowledge of their significance and consequences, with

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the understanding that events giving rise to any defense or right waived may diminish, destroy
or otherwise adversely affect rights which the Grantor otherwise may have against Collateral Agent
or others, or against Collateral. If any of the waivers or consents herein are determined to be
contrary to any applicable Law or public policy, such waivers and consents shall be effective to
the maximum extent permitted by Law.

          16. Termination. Upon payment of all Notes Obligations in full or upon satisfaction
of the terms and conditions of Section 11.04(a) of the Indenture, this Agreement shall terminate,
and Collateral Agent shall forthwith take all necessary action (at the request of and the expense
of the Grantor) to release and reconvey the Collateral to the Grantor, and shall deliver the
Collateral in its possession to the Grantor including, without limitation, the executing and
delivering of releases and satisfactions wherever required in form reasonably satisfactory to the
Grantor and Collateral Agent, and the 13% Secured Notes Obligations shall no longer be secured
hereby. This Agreement shall terminate with respect to the 13% Secured Notes Secured Parties in
the event the 13% Secured Notes Obligations are no longer required to be secured hereby as a result
of the release of the Lien on the Collateral under the 13% Secured Notes Indenture.

          17. Release of Collateral. The Liens on the Collateral under this Agreement shall be
released upon the terms and conditions of Sections 11.04 and 11.05 of the Indenture. Any release
of Collateral shall comply with Section 11.08 of the Indenture.

          18. Certain Regulatory Requirements. At any time after the occurrence and during the
continuance of an Event of Default, the Grantor shall take all lawful action that the Collateral
Agent may reasonably request in the exercise of its rights and remedies, which include the right to
require the Grantor to transfer or assign any Gaming Collateral held by it to any party or parties
to facilitate an arms’ length public or private sale for the benefit of the Collateral Agent. In
furtherance of this right, the Grantor shall (i) cooperate fully with the Collateral Agent in
obtaining all approvals and consents from the Gaming Authority and each other Governmental
Authority and from any third parties that the Collateral Agent may deem necessary or advisable to
accomplish any transfer or assignment of the Gaming Collateral, and (ii) prepare, execute and file
with the Gaming Authority and any other Governmental Authority any application, request for
consent, certificate or instrument that the Collateral Agent may deem necessary or advisable to
accomplish any such transfer or assignment. If the Grantor fails to execute such applications,
requests for consent, certificates or instruments, the clerk of any court that has jurisdiction
over the Note Documents may, upon an ex parte request by the Collateral Agent, execute and file the
same on behalf of the Grantor for purposes of placing such request before the Gaming Authority,
except to the extent as would not be permissible under applicable Law.

          To enforce the provisions of Section 10, the Collateral Agent is authorized to request
the consent or approval of the Gaming Authority or any other Governmental Authority to a voluntary
or an involuntary transfer of control of the Grantor or the voluntary or involuntary assignment of
any Gaming Collateral held by the Grantor. In connection with the exercise of its remedies under
this Agreement, the Collateral Agent may obtain the appointment of a trustee or receiver to assume
control of the Grantor, subject to any required prior approval of the Gaming Authority or any other
Governmental Authority. Such trustee or receiver shall have all rights

18

 

and powers provided to it by law or by court order or provided to the Collateral Agent under
this Agreement.

          19. Acknowledgement by the Grantor. The Grantor acknowledges that the approval of the
Gaming Authority and each other appropriate Governmental Authority to the assignment of the Gaming
Collateral is integral to the Collateral Agent’s realization of the value of the Collateral, that
there is no adequate remedy at law for failure by the Grantor to comply with the provisions of
Section 18 and that such failure could not be adequately compensable in damages.
Therefore, the Grantor agrees that the provisions of Section 18 may be specifically
enforced, without any requirement to post bond (such rights being fully waived by the Grantor) and
without regard to the adequacy of any remedies available at law (the defense of the adequacy of
remedies at law being fully waived by the Grantor).

          20. Waivers and Consents. The Grantor acknowledges that the Liens created or granted
herein will or may secure obligations of Persons other than the Grantor and, in full recognition of
that fact, the Grantor consents and agrees that Collateral Agent may, at any time and from time to
time, without notice or demand, and without affecting the enforceability or security hereof:

     (a) supplement, modify, amend, extend, renew, accelerate, or otherwise change the time
for payment or the terms of the Notes Obligations or any part thereof, including any
increase or decrease of the rate(s) of interest thereon;

     (b) supplement, modify, amend or waive, or enter into or give any agreement, approval
or consent with respect to, the Notes Obligations or any part thereof or any of the Notes
Documents or any additional security or guaranties, or any condition, covenant, default,
remedy, right, representation or term thereof or thereunder;

     (c) accept new or additional instruments, documents or agreements in exchange for or
relative to any of the Note Documents or the Notes Obligations or any part thereof;

     (d) accept partial payments on the Notes Obligations;

     (e) receive and hold additional security or guaranties for the Notes Obligations or any
part thereof;

     (f) release, reconvey, terminate, waive, abandon, subordinate, exchange, substitute,
transfer and enforce any security or guaranties, and apply any security and direct the order
or manner of sale thereof as Collateral Agent in its sole and absolute discretion may
determine;

     (g) release any Person or any guarantor from any personal liability with respect to the
Notes Obligations or any part thereof;

     (h) settle, release on terms satisfactory to Collateral Agent or by operation of
applicable laws or otherwise liquidate or enforce any Notes Obligations and any security

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or guaranty therefor in any manner, consent to the transfer of any security and bid and
purchase at any sale; and

     (i) consent to the merger, change or any other restructuring or termination of the
corporate or other existence of Issuer or any other Person, and correspondingly restructure
the Notes Obligations, and any such merger, change, restructuring or termination shall not
affect the liability of the Grantor or the continuing existence of any Lien hereunder, under
any other Note Document to which the Grantor is a party or the enforceability hereof or
thereof with respect to all or any part of the Notes Obligations;

provided, however, that the requisite written consent of the 13% Secured Notes Secured Parties
pursuant to the 13% Secured Notes Indenture shall be required with respect to any release, waiver,
amendment or other modification of this Agreement that would materially and adversely affect the
rights of the 13% Secured Notes Secured Parties to equally and ratably share in the security
provided for herein or any other Collateral Document with respect to the Collateral or the
Mortgaged Property. Except as set forth in this Section 20, the 13% Secured Notes Secured
Parties shall not have any rights to approve any release, waiver, amendment, modification, charge,
discharge or termination with respect to this Agreement or any other Collateral Document.

          Upon the occurrence of and during the continuance of any Event of Default, Collateral Agent
may enforce this Agreement or any other Collateral Document independently of any other remedy or
security Collateral Agent at any time may have or hold in connection with the Secured Obligations,
and it shall not be necessary for Collateral Agent to marshal assets in favor of the Grantor or any
other Person or to proceed upon or against and/or exhaust any other security or remedy before
proceeding to enforce this Agreement or any other Collateral Document. The Grantor expressly
waives any right to require Collateral Agent to marshal assets in favor of the Grantor, or any
other Person or to proceed against any other Person or any collateral provided by any other Person,
and agrees that Collateral Agent may proceed against any Person and/or collateral in such order as
it shall determine in its sole and absolute discretion. Collateral Agent may file a separate
action or actions against the Grantor, whether or not action is brought or prosecuted with respect
to any other security or against Issuer or any other Person, or whether or not any other Person is
joined in any such action or actions. The Grantor agrees that Collateral Agent and Issuer and any
Person may deal with each other in connection with the Secured Obligations or otherwise, or alter
any contracts or agreements now or hereafter existing between any of them, in any manner
whatsoever, all without in any way altering or affecting the validity of, or the pledge or security
interest granted or created by, this Agreement. Collateral Agent’s rights hereunder or any other
Collateral Document shall be reinstated and revived, and the enforceability of this Agreement or
any other Collateral Document shall continue, with respect to any amount at any time paid on
account of the Secured Obligations which thereafter shall be required to be restored or returned by
Collateral Agent upon the bankruptcy, insolvency or reorganization of any other Person or otherwise
(and whether by litigation, settlement, demand or otherwise), all as though such amount had not
been paid. The Grantor agrees that the Liens created or granted herein and any other Collateral
Document and the enforceability of this Agreement and any other Collateral Document at all times
shall remain effective to secure the full amount of all the Secured Obligations including, without
limitation, the amount of all loans and interest thereon at the rates provided for in the
Indenture, the Notes, the 13% Secured Notes Indenture and the 13%

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  Secured Notes, even though the Secured Obligations, including any part
thereof or any other security or guaranty therefor, may be or hereafter may become invalid or
otherwise unenforceable as against Issuer or any other Person and whether or not Issuer or any
other Person shall have any personal liability with respect thereto. The Grantor expressly waives
any and all defenses now or hereafter arising or asserted by reason of

     (a) any disability or other defense of Issuer or any other Person with respect to the
Secured Obligations,

     (b) the unenforceability or invalidity of any security or guaranty for the Secured
Obligations or the lack of perfection or continuing perfection or failure or subordination
of priority of any security for the Secured Obligations,

     (c) the cessation for any cause whatsoever of the liability of Issuer (other than by
reason of the full payment and performance of all Secured Obligations),

     (d) any failure of Collateral Agent to marshal assets in favor of the Grantor or any
other Person,

     (e) except as otherwise provided in this Agreement, any failure of Collateral Agent to
give notice of sale or other disposition of collateral to the Grantor or any other Person or
any defect in any notice that may be given in connection with any sale or disposition of
collateral,

     (f) except as otherwise provided in this Agreement or any other Collateral Document,
any failure of Collateral Agent to comply with applicable Laws in connection with the sale
or other disposition of any Collateral or other security for any Secured Obligation,
including, without limitation, any failure of Collateral Agent to conduct a commercially
reasonable sale or other disposition of any Collateral or other security for any Secured
Obligation,

     (g) any act or omission of Collateral Agent or others that directly or indirectly
results in or aids the discharge or release of Issuer or any other Person or the Secured
Obligations or any other security or guaranty therefor by operation of Law or otherwise,

     (h) any Law which provides that the obligation of a surety or guarantor must neither be
larger in amount nor in other respects more burdensome than that of the principal or which
reduces a surety’s or guarantor’s obligation in proportion to the principal obligation,

     (i) any failure of Collateral Agent to file or enforce a claim in any bankruptcy or
other proceeding with respect to any Person,

     (j) the election by Collateral Agent, in any bankruptcy proceeding of any Person, of
the application or non-application of Section 1111(b)(2) of the United States Bankruptcy
Code,

21

 

     (k) any extension of credit or the grant of any Lien under Section 364 of the United
States Bankruptcy Code,

     (l) any use of cash collateral under Section 363 of the United States Bankruptcy Code,

     (m) any agreement or stipulation with respect to the provision of adequate protection
in any bankruptcy proceeding of any Person,

     (n) the avoidance of any Lien in favor of Collateral Agent for any reason,

     (o) any bankruptcy, insolvency, reorganization, arrangement, readjustment of debt,
liquidation or dissolution proceeding commenced by or against any Person, including any
discharge of, or bar or stay against collecting, all or any of the Secured Obligations (or
any interest thereon) in or as a result of any such proceeding,

     (p) to the extent permitted by applicable Law, the benefits of any form of one-action
rule under any applicable Law, or

     (q) any action taken by Collateral Agent that is authorized by this Section 20
or any other provision of any Notes Document.

          Until all of the Notes Obligations have been paid and performed in full, the Grantor shall
have no right of subrogation, contribution, reimbursement or indemnity, and the Grantor expressly
waives any right to enforce any remedy that Collateral Agent now has or hereafter may have against
any other Person and waives the benefit of, or any right to participate in, any other security now
or hereafter held by Collateral Agent. The Grantor waives all rights and defenses arising out of
an election of remedies by Collateral Agent, even though that election of remedies, such as a
nonjudicial foreclosure with respect to security for the Secured Obligations has destroyed the
Grantor’s rights of subrogation and reimbursement against the principal. The Grantor expressly
waives all setoffs and counterclaims and all presentments, demands for payment or performance,
notices of nonpayment or nonperformance, protests, notices of protest, notices of dishonor and all
other notices or demands of any kind or nature whatsoever with respect to the Secured Obligations,
and all notices of acceptance of this Agreement or any other Collateral Document or of the
existence, creation or incurring of new or additional Secured Obligations.

          The obligations of the Collateral Agent to the 13% Secured Notes Secured Parties hereunder and
under the other Collateral Documents shall be limited solely to (i) holding the Collateral and the
Mortgaged Property for the benefit of the 13% Secured Notes Secured Parties for so long as (A) any
Notes Obligations remain outstanding and (B) any 13% Secured Notes Obligations are secured by such
Collateral and the Mortgaged Property and (ii) distributing any proceeds received by the Collateral
Agent from the sale, collection or realization of the Collateral and the Mortgaged Property to the
13% Secured Notes Secured Parties in respect of the 13% Secured Notes Obligations in accordance
with the terms of this Agreement. The 13% Secured Notes Secured Parties shall not be entitled to
exercise (or direct the Collateral Agent to exercise) any rights or remedies hereunder with respect
to the 13% Secured Notes Obligations, including without limitation the right to enforce the
security interest in the Collateral and the Mortgaged

22

 

Property, request any action, institute proceedings, give any instructions, make any election,
give any notice to account debtors, make collections, sell or otherwise foreclose on any portion of
the Collateral and the Mortgaged Property or execute any amendment, supplement, or acknowledgment
hereof or of any other Collateral Document. This Agreement shall not create any liability of the
Collateral Agent or the Noteholders to any of the 13% Secured Notes Secured Parties by reason of
actions taken with respect to the creation, perfection or continuation of the security interest on
the Collateral and the Mortgaged Property, actions with respect to the occurrence of an Event of
Default, actions with respect to the foreclosure upon, sale, release, or depreciation of, or
failure to realize upon, any of the Collateral and the Mortgaged Property or action with respect to
the collection of any claim for all or any part of the Secured Obligations from any account debtor,
guarantor or any other party or the valuation, use or protection of the Collateral and the
Mortgaged Property. By acceptance of the benefits under this Agreement and the other Collateral
Documents, the 13% Secured Notes Secured Parties will be deemed to have acknowledged and agreed
that the provisions of the preceding sentence are intended to induce the Noteholders to permit such
persons to be Secured Parties under this Agreement and certain of the other Collateral Documents
and are being relied upon by the Noteholders as consideration therefor. The Collateral Agent shall
not be required to ascertain or inquire as to the performance by the Issuer or any other obligor of
the 13% Secured Notes Obligations.

          Notwithstanding anything to the contrary herein, nothing in this Agreement shall or shall be
construed to (i) result in the security interest in the Collateral and the Mortgaged Property
securing the 13% Secured Notes Obligations less than equally and ratably with the Notes Obligations
pursuant to the 13% Secured Notes Indenture to the extent required or (ii) modify or affect the
rights of the 13% Secured Notes Secured Parties to receive the pro rata share specified in
Section 10 of any proceeds of any collection or sale of Collateral and the Mortgaged
Property.

          The parties hereto agree that the 13% Secured Notes Obligations and the Notes Obligations are,
and will be, equally and ratably secured with each other by the Liens on the Collateral and the
Mortgaged Property, and that it is their intention to give full effect to the equal and ratable
provisions of the 13% Secured Notes Indenture, as in effect on the date hereof. To the extent that
the rights and benefits herein or in any other Collateral Document conferred on the 13% Secured
Notes Secured Parties shall be held to exceed the rights and benefits required so to be conferred
by such provisions, such rights and benefits shall be limited so as to provide such 13% Secured
Notes Secured Parties only those rights and benefits that are required by such provisions. Any and
all rights not herein expressly given to the 13% Secured Notes Secured Parties are expressly
reserved to the Collateral Agent and the Noteholders.

          21. WAIVER OF JURY TRIAL. THE GRANTOR AND COLLATERAL AGENT HEREBY EXPRESSLY WAIVE ANY
RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING UNDER THIS
AGREEMENT, ANY NOTE DOCUMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS
OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT, THE INDENTURE, THE NOTES, OR
THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND
WHETHER SOUNDING IN CONTRACT OR TORT OR

23

 

OTHERWISE; AND THE GRANTOR AND COLLATERAL AGENT HEREBY AGREE AND CONSENT THAT ANY SUCH CLAIM,
DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT THE
GRANTOR OR COLLATERAL AGENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY
COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE SIGNATORIES HERETO TO THE WAIVER OF THEIR RIGHT TO
TRIAL BY JURY.

          22. CONSENT TO JURISDICTION: CHOICE OF FORUM.

          (a) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT
MAY BE BROUGHT IN THE COURTS IN THE STATE OF NEVADA OR OF THE UNITED STATES FOR THE DISTRICT OF
NEVADA, AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, THE GRANTOR HEREBY IRREVOCABLY ACCEPTS
FOR ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE JURISDICTION OF THE
AFORESAID COURTS. THE GRANTOR HEREBY FURTHER IRREVOCABLY WAIVES ANY CLAIM THAT ANY SUCH COURTS
LACK PERSONAL JURISDICTION OVER THE GRANTOR, AND AGREES NOT TO PLEAD OR CLAIM, IN ANY LEGAL ACTION
OR PROCEEDING WITH RESPECT TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENTS BROUGHT IN ANY OF THE
AFOREMENTIONED COURTS, THAT SUCH COURTS LACK PERSONAL JURISDICTION OVER THE GRANTOR. THE GRANTOR
FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN
ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL,
POSTAGE PREPAID, TO THE GRANTOR AT ITS ADDRESS SET FORTH OPPOSITE ITS SIGNATURE BELOW, SUCH SERVICE
TO BECOME EFFECTIVE 30 DAYS AFTER SUCH MAILING. THE GRANTOR HEREBY IRREVOCABLY WAIVES ANY
OBJECTION TO SUCH SERVICE OF PROCESS AND FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR
CLAIM IN ANY ACTION OR PROCEEDING COMMENCED HEREUNDER OR UNDER THE NOTE DOCUMENTS THAT SERVICE OF
PROCESS WAS IN ANY WAY INVALID OR INEFFECTIVE. NOTHING HEREIN SHALL AFFECT THE RIGHT OF THE
COLLATERAL AGENT, ANY LENDER OR THE HOLDER OF ANY NOTE TO SERVE PROCESS IN ANY OTHER MANNER PERMITI
ED BY LAW OR TO COMMENCE LEGAL PROCEEDINGS OR OTHERWISE PROCEED AGAINST THE GRANTOR IN ANY OTHER
JURISDICTION.

          (b) THE GRANTOR HEREBY IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO
THE LAYING OF VENUE OF ANY OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION
WITH THIS AGREEMENT OR THE NOTE DOCUMENTS BROUGHT IN THE COURTS REFERRED TO IN CLAUSE (A) ABOVE AND
HEREBY FURTHER IRREVOCABLY, TO THE EXTENT PERMITTED BY APPLICABLE LAW, WAIVES AND AGREES NOT TO
PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS
BEEN BROUGHT IN AN INCONVENIENT FORUM.

24

 

          23. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEVADA BUT WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF
CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE
REQUIRED THEREBY. EACH OF THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF
THE STATE OF NEVADA IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

          24. Additional Powers and Authorization. The Collateral Agent has been appointed as
the Collateral Agent hereunder pursuant to the Indenture and shall be entitled to the benefits of
the Indenture and the other Note Documents. By accepting the benefits of this Agreement and the
other Collateral Documents, each 13% Secured Notes Secured Party hereby appoints the Collateral
Agent, to serve as collateral agent of the 13% Secured Notes Secured Parties under each of this
Agreement and the other Collateral Documents on the terms set forth herein and in the other
Collateral Documents. Notwithstanding anything contained herein to the contrary, the Collateral
Agent may employ agents, trustees, or attorneys-in-fact and may vest any of them with any property
(including, without limitation, the Collateral and the Mortgaged Property), title, right or power
deemed necessary for the purposes of such appointment.

          25. Notices. All notices, requests and demands to or upon Collateral Agent or the
Grantor hereunder shall be effected in the manner provided for in Section 12.01 of the Indenture;
provided that any such notice, request or demand to or upon the Grantor shall be addressed to the
Grantor at its notice address set forth on the signature page hereto.

[signature page follows]

25

 

          IN WITNESS WHEREOF, The Grantor has executed this Agreement by its duly authorized officer as
of the date first written above.

	 	 	 	 	 
	 	“Grantors”

MGM GRAND HOTEL, LLC, a Nevada limited liability

company

 	 
	 	By:  	/s/ John M. McManus
 	 
	 	 	Name:  	John M. McManus 	 
	 	 	Title:  	Secretary 	 
	 	
Address:

c/o MGM MIRAGE

3600 Las Vegas Boulevard South

Las Vegas, Nevada 89109 

	 	 	 	 	 
	ACCEPTED AND AGREED

AS OF THE DATE FIRST

ABOVE WRITTEN:

“Collateral Agent”

U.S. Bank National Association

 	 
	By:  	/s/ Raymond S. Haverstock
 	 
	 	Name:  	Raymond S. Haverstock 	 
	 	Title:  	Vice Presidentexv4w3

Exhibit 4.3

PLEDGE AGREEMENT

          This PLEDGE AGREEMENT dated as of March 16, 2010, is made by MGM MIRAGE, a Delaware
corporation, as Grantor (the “Grantor”) and U.S. Bank National Association, as collateral
agent for the benefit of the Secured Parties (as defined below) (in such capacity, together with
its successors in such capacity, “Collateral Agent”), with reference to the following
facts:

RECITALS

          A. MGM MIRAGE, a Delaware corporation (in such capacity, the “Issuer”), concurrently
entered into that certain Indenture dated as of March 16, 2010 (as amended, supplemented or
otherwise modified from time to time, the “Indenture”), among the Issuer, the guarantors
party thereto (including the Grantor, MGM Grand Hotel, LLC, a Nevada limited liability company
(“MGM Grand”), and the Collateral Agent, pursuant to which Issuer issued those certain 9%
senior secured notes due 2020 (the “Notes”).

          B. The holders of the Notes (collectively, the “Noteholders”) are willing to purchase
the Notes for the purposes of, among other things, providing Issuer and its subsidiaries funds to
repay existing indebtedness and provide working capital.

          C. The Grantor will derive substantial benefit from the purchase of the Notes by the
Noteholders.

          D. As a condition precedent to purchasing the Notes, the Noteholders require that the Grantor
enter into this Agreement and grant the Security Interest to Collateral Agent as herein provided as
security for Issuer’s obligations under the Indenture.

          E. Pursuant to the 13% Secured Notes Indenture, the holders of the 13% Secured Notes issued
under the 13% Secured Notes Indenture (the “13% Secured Notes Secured Parties”) purchased
the 13% Secured Notes of the Issuer upon the terms and subject to the conditions set forth therein.

          F. The 13% Secured Notes Indenture restricts the ability of the Grantor to grant a security
interest in the Pledged Collateral to secure the Notes Obligations, unless the Grantor grants an
equal and ratable security interest in the Pledged Collateral to secure the Obligations under the
13% Secured Notes and 13% Secured Notes Indenture (the “13% Secured Notes Obligations”).

AGREEMENT

          NOW, THEREFORE, for other good and valuable consideration, the receipt and adequacy of which
hereby are acknowledged, the Grantor represents, warrants, covenants, agrees, assigns and grants as
follows:

          1. Definitions. This Agreement is the “Pledge Agreement” referred to in the Indenture.
Terms defined in the Indenture and not otherwise defined in this Agreement shall have the meanings
given those terms in the Indenture as though set forth herein in full. Terms

 

 

defined in the Nevada Uniform Commercial Code and not otherwise defined in this Agreement or
in the Indenture shall have the meanings defined for those terms in the Nevada Uniform Commercial
Code. The following terms shall have the meanings respectively set forth after each:

          “13% Secured Notes Obligations” shall have the meaning assigned to such term in
Recital F.

          “13% Secured Notes Secured Parties” shall have the meaning assigned to such term in
Recital E.

          “Agreement” means this Pledge Agreement, and any extensions, modifications, renewals,
restatements, supplements or amendments hereof, including, without limitation, any documents or
agreements by which additional Grantors become party hereto.

          “Certificates” means all certificates, instruments or other documents now or hereafter
representing or evidencing any Pledged Securities.

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

          “Gaming Laws” means all Laws pursuant to which any Gaming Authority possesses
regulatory, licensing or permit authority over gambling, gaming or casino activities conducted by
Issuer and its Subsidiaries within its jurisdiction.

          “Governing Agreement” means the by-laws, partnership or operating agreement(s) and
other charter documents of each Interest Issuer, in each case as amended from time to time.

          “Indenture” shall have the meaning assigned to such term in Recital A.

          “Issuer” shall have the meaning assigned to such term in Recital A.

          “Intercompany Notes” means, collectively, any intercompany promissory note executed by
MGM Grand, any Subsidiary of MGM Grand or any Affiliate of MGM Grand evidencing any Indebtedness of
such party to the Grantor and any indebtedness of any such party to the Grantor that the Grantor
acquires in substitution for any of the foregoing, together with all instruments and other
agreements evidencing, securing, guaranteeing or otherwise supporting such indebtedness.

          “Interest Issuer” means each corporation, partnership, limited liability company or
limited liability partnership that issued the Pledged Securities.

          “Law” means, collectively, all international, foreign, United States federal and state
and local statutes, treaties, rules, guidelines, regulations, ordinances, codes and administrative
or judicial precedents or authorities, including the interpretation or administration thereof by
any Governmental Authority charged with the enforcement, interpretation or administration the-

-2-

 

reof, and all applicable administrative orders, directed duties, requests, licenses, authorizations
and permits of, and agreements with, any Governmental Authority.

          “MGM Grand” shall have the meaning assigned to such term in Recital A.

          “Note Documents” means this Agreement, the Indenture, the Notes, the Subsidiary
Guarantees, the Registration Rights Agreement, the Security Agreement [and the Trademark License
Agreement dated as of the date hereto between the grantors party thereto and the Collateral Agent,]
or any other document, instrument or agreement arising out of or relating to any of the foregoing,
in each case as amended, supplemented or otherwise modified from time to time.

          “Note Obligations” means any and all present and future Obligations of any type or
nature of the Grantor arising under or relating to the Indenture, the Notes, the Subsidiary
Guarantees and the other Note Documents to which the Grantor is a party.

          “Noteholders” shall have the meaning assigned to such term in Recital B.

          “Notes” shall have the meaning assigned to such term in Recital A.

          “Pledged Collateral” means (a) the Pledged Securities, and any Certificates or other
written evidences representing the Pledged Securities and any interest of the Grantor in the
entries on the books of any securities intermediary or financial intermediary pertaining to the
Pledged Securities, (b) any and all existing and future Intercompany Notes, (c) any and all rights,
powers, remedies and privileges of the Grantor as a general or limited partner or member of the
Interest Issuer, including all rights under the Governing Agreement and applicable Law (i) to
receive its share of profits, income, capital distributions and surplus from each Interest Issuer,
whether in the form of cash, properties or other assets, and whether upon a sale or refinancing of
any of the Interest Issuer’s assets, in the ordinary course of business, upon dissolution and
liquidation or otherwise, and (ii) to vote the Pledged Securities or manage the Interest Issuer,
and (d) any and all proceeds and products of any of the foregoing, whether now held and existing or
hereafter acquired or arising, including any and all cash, securities, instruments and other
property from time to time paid, payable or otherwise distributed in respect of or in exchange for
any or all of the foregoing (collectively, the “Proceeds”).

          “Pledged Securities” means (a) the equity, partnership, limited liability company or
limited liability partnership interests described in Schedule 1 (the “Pledged
Interests”), (b) any and all securities, security entitlements and, equity, limited liability
company, partnership, limited liability partnership or other interests issued by an Interest Issuer
or any successor to any such issuer, in each case that the Grantor acquires or has the right to
acquire from time to time in any manner in substitution for or in addition to any of the foregoing
and any and all certificates, instruments or other documents representing or evidencing such
securities or interests and (c) any and all warrants, options or other rights to subscribe to or
acquire any of the Pledged Interests or any of the foregoing.

          “Secured Obligations” means (i) the Note Obligations and (ii) the 13% Secured Notes
Obligations.

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          “Secured Parties” means, collectively, Collateral Agent, the Trustee, the Noteholders,
the 13% Secured Notes Secured Parties and the trustee under the 13% Secured Notes Indenture.

          2. Representations and Warranties. As of the Closing Date, the Grantor represents and
warrants to Collateral Agent as follows:

     (a) The Grantor is the legal and beneficial owner of the Pledged Collateral in which
the Grantor is purporting to grant a security interest to Collateral Agent, and the Pledged
Collateral is not subject to any Lien (except for the Liens in favor of the Collateral Agent
for the benefit of the Secured Parties created or provided for herein);

     (b) Subject to applicable Gaming Laws, the Grantor has the right and power to pledge
the Pledged Collateral owned by the Grantor to Collateral Agent without the consent,
approval or authorization of, or notice to, any Person (other than such consents, approvals,
authorization or notices which have been obtained or given prior to the date hereof) and
upon the receipt of approval of the Nevada Gaming Commission of the pledge described herein,
such pledge will constitute the valid, binding and enforceable obligation of the Grantor,
enforceable against the Grantor in accordance with the terms hereof and the other Note
Documents, except as enforcement may be limited by applicable bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting the enforcement of creditors’
rights or by equitable principles relating to the granting of specific performance and other
equitable remedies as a matter of judicial discretion;

     (c) Upon delivery to the Collateral Agent of the Certificates evidencing the Pledged
Interests, Collateral Agent will have a valid and first priority perfected security interest
in the Pledged Collateral securing the Secured Obligations for the benefit of Collateral
Agent on behalf of the Secured Parties;

     (d) All Pledged Interests that constitute a portion of the Pledged Collateral are duly
authorized, validly issued in accordance with all applicable laws, fully paid and
non-assessable, and represent one hundred percent (100%) of the issued and outstanding
shares of member or other equity interest of MGM Grand. There are no outstanding options,
warrants, convertible securities or other rights, contingent or absolute, to acquire any
member or other equity interest of any Interest Issuer, except as set forth in Schedule
1.

          3. Creation of Security Interest.

               3.1 Pledge of Pledged Collateral. To secure the payment and performance of the Secured
Obligations of the Grantor as and when due, effective upon receipt of the approval of the Nevada
Gaming Commission, the Grantor hereby conveys, pledges, assigns and transfers to the Collateral
Agent, and grants to the Collateral Agent, as agent and representative for the benefit of the
Secured Parties, a security interest (the “Security Interest”) in, all right, title, claim
and interest of the Grantor in and to the Pledged Collateral. Subject to Section 3.3 of
this Agreement, the Security Interest created by this Section 3.1 shall continue in effect
so long as any Note Obligation is owed to Collateral Agent or any of the Notes remain outstanding.

-4-

 

Upon receipt of the approval of the Nevada Gaming Commission, the Secured Obligations will be
secured by a valid and enforceable Security Interest in the Pledged Interests, and upon the
delivery to Collateral Agent or its agent of Certificates representing the Pledged Interests, the
Security Interest and the related Lien will be perfected and superior to and prior to the Liens of
all third persons.

               3.2 Delivery of Certain Pledged Collateral. Subject to compliance with applicable
Gaming Laws, Grantor shall cause to be delivered to Collateral Agent or its agent for the benefit
of the Secured Parties (a) the Certificates evidencing the Pledged Interests, (b) the Intercompany
Notes listed on Schedule 2 hereto and (c) any other certificates, instruments or other
agreements now or hereafter representing or evidencing any of the Pledged Collateral. To the extent
required by applicable Gaming Laws, all such Certificates shall be held in the State of Nevada at a
location approved by the Nevada State Gaming Control Board and shall be made available for
inspection by agents or employees of the Nevada State Gaming Control Board immediately upon request
during normal business hours. All Certificates at any time delivered to Collateral Agent for the
benefit of the Secured Parties shall be in suitable form for transfer by delivery, or shall be
accompanied by duly executed and undated instruments of transfer or assignment in blank, all in
form and substance reasonably satisfactory to Collateral Agent. Collateral Agent or its agent shall
hold all Certificates and the Intercompany Notes pledged hereunder pursuant to this Agreement
unless and until released in accordance with Section 3.3 of this Agreement.

               3.3 Release of Pledged Collateral. The Security Interest shall be released upon the
terms and conditions of Sections 11.04 and 11.05 of the Indenture. Any release of the Pledged
Collateral shall comply with Section 11.08 of the Indenture. Collateral Agent, at the expense of
Grantor, promptly shall redeliver all Certificates and Intercompany Notes and shall execute and
deliver to Grantor all documents requested by Grantor that are reasonably necessary to release
Pledged Collateral of record whenever Grantor shall be entitled to the release thereof in
accordance with this Section 3.3. The Security Interest shall be released with respect to
the 13% Secured Notes Secured Parties in the event the 13% Secured Notes Obligations are no longer
required to be secured hereby as a result of the release of the Lien on the Pledged Collateral
under the 13% Secured Notes Indenture.

          4. Further Assurances.

               4.1 Subject to compliance with applicable Gaming Laws, the Grantor agrees that at any time,
and from time to time, at its own expense the Grantor will promptly execute, deliver and file (or
authorize Collateral Agent to file) or record all further financing statements, instruments and
documents, and will take all further actions, including, without limitation, causing the issuers
of, or obligors on, any of the Pledged Collateral to so execute, deliver, file or take other
actions, that may be necessary or desirable, or that Collateral Agent reasonably may request, in
order to perfect and protect any pledge or security interest granted hereby or to enable Collateral
Agent to exercise and enforce its rights and remedies hereunder with respect to any Pledged
Collateral and to preserve, protect and maintain the Pledged Collateral and the value thereof,
including, without limitation, payment of all taxes, assessments and other charges imposed on or
relating to the Pledged Collateral other than claims being contested in good faith by appropriate
proceedings diligently conducted. Subject to compliance with applicable Gaming

-5-

 

Laws, Grantor hereby (a) irrevocably directs the issuers of or obligors on any such Pledged
Collateral, or each securities intermediary, registrar, transfer agent or trustee for any such
Pledged Collateral, to accept the provisions of this Agreement as conclusive evidence of the right
of Collateral Agent to effect any transfer or exercise any right hereunder or with respect to any
such Pledged Collateral, notwithstanding any other notice or direction to the contrary heretofore
or hereafter given by the Grantor or any other Person to any of such parties; and (b) covenants and
agrees to transfer or reinvest any such Pledged Collateral, promptly upon Collateral Agent’s
written request, in such manner as may be deemed necessary or desirable by Collateral Agent to
create and perfect, and to continue and preserve, a security interest in such Pledged Collateral in
favor of Collateral Agent, or the priority, control and exclusivity thereof, free of all other
Liens and claims except as may be permitted by the terms hereof or of the Indenture.

               4.2 The Grantor agrees to use commercially reasonable efforts to obtain all approvals of the
Nevada Gaming Commission or any other Gaming Authority that are required by law for or in
connection with any action or transaction contemplated by this Agreement or by Article 8 or Article
9 of the Uniform Commercial Code as in effect in the State of Nevada and, at Collateral Agent’s
written request after and during the continuance of an Event of Default, to prepare, sign and file
with the appropriate Gaming Authority the transferor’s portion of any application or applications
for consent to the transfer of control thereof necessary or appropriate under applicable Gaming
Laws for approval of any sale or transfer of the Pledged Collateral pursuant to the exercise of
Collateral Agent’s remedies hereunder and under the Note Documents.

          5. Voting Rights; Dividends; etc. So long as no Event of Default shall have occurred
and be continuing, and until Collateral Agent suspends such rights, Grantor will be entitled to
receive the benefit of all distributions and other Proceeds made upon or with respect to the
Collateral by them and to exercise any voting and other consensual rights pertaining to the
Collateral pledged by them; provided, however, that any and all such distributions
and other Proceeds received in the form of capital stock (or other equity interest) shall be, and
the Certificates representing such capital stock (or other equity interest) forthwith shall be
delivered subject to compliance with Gaming Laws to Collateral Agent or its agent to hold as
Pledged Collateral and shall, if received by the Grantor, be received in trust for the benefit of
the Secured Parties, be segregated from the other property of the Grantor, and forthwith be
delivered to Collateral Agent or its agent for the benefit of the Secured Parties as Pledged
Collateral in the same form as so received (with any necessary endorsements) in suitable form for
transfer by delivery or accompanied by executed and undated instruments of transfer or assignment
in blank, all in form and substance reasonably satisfactory to Collateral Agent.

          Upon the occurrence and during the continuance of an Event of Default, at the election of
Collateral Agent or the Noteholders holding a majority in aggregate principal amount of the
Outstanding Notes pursuant to Section 6.12 of the Indenture to suspend such rights:

     (a) Voting Rights. Upon the receipt of all required approvals from any
applicable Gaming Authority, all rights of Grantor to exercise such voting or other
consensual rights shall cease, and all such rights shall become vested in the Collateral
Agent which, to the extent permitted by law, will have the sole right to exercise such
rights.

-6-

 

     (b) Interest and Distribution Rights. All rights of Grantor to receive all
distributions and other Proceeds made upon or with respect to the Collateral will cease, and
upon the receipt of all required approvals from any applicable Gaming Authority, such cash
dividends, interest and other payments will be paid to Collateral Agent.

          6. Rights During Event of Default. When an Event of Default has occurred and is
continuing, subject to receipt of all required approvals from any applicable Gaming Authority:

               6.1 Proceeds Held in Trust. All distributions and other Proceeds which are received by
the Grantor contrary to the provisions of this Agreement shall be received in trust for the benefit
of the Secured Parties, shall be segregated from other funds of the Grantor, and forthwith shall be
paid over to Collateral Agent for the account of Collateral Agent as Pledged Collateral in the same
form as so received (with any necessary endorsements).

               6.2 Irrevocable Proxy. The Grantor hereby revokes all previous proxies with regard to
the Pledged Securities and, to the extent allowable under applicable Gaming Laws, appoints
Collateral Agent for the benefit of the Secured Parties as its proxyholder to attend and vote at
any and all meetings of the members (or other equity holders, as applicable) of the limited
liability companies (or other entities, as applicable) which issued the Pledged Securities, and any
adjournments thereof, held on or after the date of the giving of this proxy and prior to the
termination of this proxy and to execute any and all written consents of members (or other equity
holders, as applicable) of such limited liability companies (or other entities, as applicable)
executed on or after the date of the giving of this proxy and prior to the termination of this
proxy, with the same effect as if the Grantor had personally attended the meetings or had
personally voted its interests (or other equity interests, as applicable) or had personally signed
the written consents; provided, however, that the proxyholder shall have rights
hereunder only upon the occurrence and during the continuance of an Event of Default under the
Indenture and subject to compliance with Gaming Laws. The Grantor hereby authorizes Collateral
Agent to, subject to compliance with Gaming Laws, substitute another Person as the proxyholder and,
upon the occurrence or during the continuance of any Event of Default, hereby authorizes and
directs the proxyholder to file this proxy and the substitution instrument with the secretary or
other appropriate officer of the appropriate limited liability company or other entity as
applicable. This proxy is coupled with an interest and is irrevocable until such time as the
Security Interest is released pursuant to Section 3.3.

          7. Transfers and Other Liens. The Grantor agrees that, except as permitted under the
Note Documents, it will not (i) sell, assign, exchange, transfer or otherwise dispose of, or
contract to sell, assign, exchange, transfer or otherwise dispose of, or grant any option with
respect to, any of the Pledged Collateral, (ii) create or permit to exist any Lien upon or with
respect to any of the Pledged Collateral, except for Permitted Liens and other encumbrances
permitted pursuant to the Indenture, or (iii) take any action with respect to the Pledged
Collateral which is inconsistent with the provisions or purposes of this Agreement or any other
Note Document.

          8. Collateral Agent Appointed Attorney-in-Fact. The Grantor hereby irrevocably
appoints Collateral Agent for the benefit of the Secured Parties as the Grantor’s attorney-in-

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fact for the following purposes: (a) to do all acts and things and to execute all documents which
Collateral Agent may deem necessary or advisable to perfect and to continue to perfect the Security
Interest created by this Agreement, and, upon the occurrence and during the continuance of an Event
of Default, to preserve, process, develop, maintain and protect the Pledged Collateral; (b) upon
the occurrence and during the continuance of an Event of Default, to do any and every act which the
Grantor is obligated to do under this Agreement; (c) to prepare, sign, file and record, in the
Grantor’s name, any financing statement covering the Pledged Collateral; and (d) to endorse and
transfer the Pledged Collateral upon foreclosure by Collateral Agent; provided,
however, that Collateral Agent shall be under no obligation whatsoever to take any of the
foregoing actions, and, absent bad faith or actual malice, Collateral Agent shall have no liability
or responsibility for any act taken or omission with respect thereto. The foregoing power of
attorney is coupled with an interest and is irrevocable. The Grantor hereby agrees to repay
promptly upon demand all reasonable costs and expenses incurred or expended by Collateral Agent in
exercising any right or taking any action under this Agreement.

          9. Collateral Agent May Perform Obligations. If the Grantor fails to perform any
Obligation contained herein, Collateral Agent for the benefit of the Secured Parties may, but
without any obligation to do so and without further notice to or demand upon Grantor, perform the
same and take such other action as Collateral Agent may deem necessary or desirable to protect the
Pledged Collateral or Collateral Agent’s Security Interest therein, Collateral Agent being hereby
authorized (without limiting the general nature of the authority hereinabove conferred) to pay,
purchase, contest and compromise any Lien which in the reasonable judgment of Collateral Agent
appears to be prior or superior to Collateral Agent’s Security Interest, and in exercising any such
powers and authority to pay necessary expenses, employ counsel and pay reasonable attorneys’ fees.
The Grantor hereby agrees to repay promptly following demand all sums so expended by Collateral
Agent, together with interest from the date of expenditure at the rates provided for in the
Indenture. Collateral Agent shall not be under any duty or obligation to preserve, maintain or
protect the Pledged Collateral or any of the Grantor’s rights or interest therein, exercise any
voting rights with respect to the Pledged Collateral, whether or not a Default or Event of Default
has occurred or is continuing, or make or give any notices of default, presentments, demands for
performance, notices of non-performance or dishonor, protests, notices of protest or notice of any
other nature whatsoever in connection with the Pledged Collateral on behalf of the Grantor or any
other Person having any interest therein; and neither Collateral Agent nor any Noteholder assumes
and none shall be obligated to perform the Secured Obligations of the Grantor, if any, with respect
to the Pledged Collateral.

          10. Reasonable Care. Collateral Agent shall be deemed to have exercised reasonable
care in the custody and preservation of the Pledged Collateral in its possession if the Pledged
Collateral is accorded treatment substantially similar to that which Collateral Agent accords its
own property, it being understood that Collateral Agent shall not have any responsibility for
ascertaining or taking action with respect to maturities, calls, conversions, exchanges, tenders or
other matters relative to any Pledged Collateral, whether or not Collateral Agent has or is deemed
to have knowledge of such matters, or taking any necessary steps to preserve rights against any
Person with respect to any Pledged Collateral. The Collateral Agent shall comply with the
conditions, if any, imposed by the Gaming Authority in connection with the approvals of the Security Interest granted hereunder by the Grantor, including, without limitation, any
conditions requiring Collateral Agent to permit representatives of the Gaming Authority to inspect

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such securities and Certificates. Collateral Agent shall not surrender possession of any Pledged
Collateral to any party other than Grantor without the prior approval of the Gaming Authority or as
otherwise permitted by applicable Gaming Laws.

          11. Events of Default and Remedies.

               11.1 Rights Upon Event of Default. Upon the occurrence and during the continuance of
an Event of Default under the Indenture, Grantor shall be in default hereunder and Collateral Agent
shall have in any jurisdiction where enforcement is sought, in addition to all other rights and
remedies that Collateral Agent may have under this Agreement, under any other Note Document, the
13% Secured Notes, the 13% Secured Notes Indenture and under applicable Law or in equity, all of
its rights and remedies as a secured party under the Uniform Commercial Code as enacted in any such
jurisdiction, and in addition the following rights and remedies, all of which may be exercised with
or without further notice to the Grantor, subject to receipt of all required approvals from any
applicable Gaming Authority:

     (a) to notify any Interest Issuer of any Pledged Securities and any and all other
obligors on any Pledged Collateral that the same has been pledged to Collateral Agent for
the benefit of the Secured Parties and that all distributions and other Proceeds thereon are
to be made directly and exclusively to Collateral Agent for the account of Collateral Agent;
to renew, extend, modify, amend, accelerate, accept partial payments on, make allowances and
adjustments and issue credits with respect to, release, settle, compromise, compound,
collect or otherwise liquidate, on terms acceptable to Collateral Agent, in whole or in
part, the Pledged Collateral and any amounts owing thereon or any guaranty or security
therefor; to enter into any other agreement relating to or affecting the Pledged Collateral;
and to give all consents, waivers and ratifications with respect to the Pledged Collateral
and exercise all other rights (including voting rights), powers and remedies and otherwise
act with respect thereto as if Collateral Agent were the owner thereof;

     (b) to enforce payment and prosecute any action or proceeding with respect to any and
all of the Pledged Collateral and take or bring, in Collateral Agent’s name(s) or in the
name of the Grantor, all steps, actions, suits or proceedings deemed by Collateral Agent
necessary or desirable to effect collection of or to realize upon the Pledged Collateral;

     (c) in accordance with applicable Law, to take possession of the Pledged Collateral
with or without judicial process;

     (d) to endorse, in the name of the Grantor, all checks, notes, drafts, money orders,
instruments and other evidences of payment relating to the Pledged Collateral;

     (e) to transfer any or all of the Pledged Collateral into the name of Collateral Agent
or its nominee or nominees; and

     (f) in accordance with applicable Law (including applicable Gaming Laws), to foreclose
the Liens and Security Interest created under this Agreement or under any other agreement relating to the Pledged Collateral by any available judicial procedure
or without judicial process, and to sell, assign or otherwise dispose of the Pledged
Collateral

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or any part thereof, either at public or private sale or at any broker’s board or securities
exchange, in lots or in bulk, for cash, on credit or on future delivery, or otherwise, with
or without representations or warranties, and upon such terms as shall be acceptable to
Collateral Agent; all at the sole option of and in the sole discretion of Collateral Agent.

               11.2 Notice of Sale. Collateral Agent shall give Grantor at least 10 days’ written
notice of sale of all or any part of the Pledged Collateral. Subject to compliance with Gaming
Laws, any sale of the Pledged Collateral shall be held at such time or times and at such place or
places as Collateral Agent may determine in the exercise of its sole and absolute discretion.
Collateral Agent may bid (which bid may be, in whole or in part, in the form of cancellation of
Secured Obligations) for and purchase for the account of Collateral Agent or any nominee of
Collateral Agent the whole or any part of the Pledged Collateral. Collateral Agent shall not be
obligated to make any sale of the Pledged Collateral if it shall determine not to do so regardless
of the fact that notice of sale of the Pledged Collateral may have been given. Collateral Agent
may, without notice or publication, adjourn the sale from time to time by announcement at the time
and place fixed for sale, and such sale may, without further notice, be made at the time and place
to which the same was so adjourned.

               11.3 Private Sales. Subject to compliance with Gaming Laws, upon the occurrence and
during the continuance of an Event of Default under the Indenture, whether or not any of the
Pledged Collateral has been effectively registered under the Securities Act of 1933, as amended, or
other applicable Laws, Collateral Agent may, in its sole and absolute discretion, sell all or any
part of the Pledged Collateral at private sale in such manner and under such circumstances as
Collateral Agent may deem necessary or advisable in order that the sale may be lawfully conducted.
Without limiting the foregoing, Collateral Agent may (i) approach and negotiate with a limited
number of potential purchasers, and (ii) restrict the prospective bidders or purchasers to Persons
who will represent and agree that they are purchasing the Pledged Collateral for their own account
for investment and not with a view to the distribution or resale thereof. In the event that any of
the Pledged Collateral is sold at private sale, the Grantor agrees that if the Pledged Collateral
is sold for a price which Collateral Agent in good faith believes to be reasonable, then, (A) the
sale shall be deemed to be commercially reasonable in all respects, (B) the Grantor shall not be
entitled to a credit against the Secured Obligations in an amount in excess of the purchase price,
and (C) Collateral Agent shall not incur any liability or responsibility to the Grantor in
connection therewith, notwithstanding the possibility that a substantially higher price might have
been realized at a public sale. The Grantor recognizes that a ready market may not exist for
Pledged Collateral which is not regularly traded on a recognized securities exchange or in another
recognized market, and that a sale by Collateral Agent of any such Pledged Collateral for an amount
substantially less than a pro rata share of the fair market value of such Interest Issuer’s assets
minus liabilities may be commercially reasonable in view of the difficulties that may be
encountered in attempting to sell a large amount of Pledged Collateral or Pledged Collateral that
is privately traded.

               11.4 Title of Purchasers. Subject to compliance with Gaming Laws, upon consummation of
any sale of Pledged Collateral pursuant to this Section 11, Collateral Agent shall have the
right to assign, transfer and deliver to the purchaser or purchasers thereof the Pledged Collateral so sold. Each such purchaser at any such sale shall hold the Pledged
Collateral sold absolutely free from any claim or right on the part of Grantor or any other Person,

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and the Grantor hereby waives (to the extent permitted by applicable Laws) all rights of
redemption, stay and appraisal which it now has or may at any time in the future have under any
rule of Law or statute now existing or hereafter enacted. If the sale of all or any part of the
Pledged Collateral is made on credit or for future delivery, Collateral Agent shall not be required
to apply any portion of the sale price to the Secured Obligations until such amount actually is
received by Collateral Agent, and any Pledged Collateral so sold may be retained by Collateral
Agent until the sale price is paid in full by the purchaser or purchasers thereof. Collateral Agent
shall not incur any liability in case any such purchaser or purchasers shall fail to pay for the
Pledged Collateral so sold, and, in case of any such failure, the Pledged Collateral may be sold
again upon like notice.

               11.5 Disposition of Proceeds of Sale. The net cash proceeds resulting from the
collection, liquidation, sale or other disposition of the Pledged Collateral shall be applied,
first, to the reasonable costs and expenses (including attorneys’ fees) of retaking,
holding, storing, processing and preparing for sale, selling, collecting and liquidating the
Pledged Collateral, and the like; and thereafter pro rata to the satisfaction of the Secured
Obligations (i) as among the Noteholders, pursuant to Section 6.06 of the Indenture and (ii) as
among the 13% Secured Notes Secured Parties, as set forth in the 13% Secured Notes Indenture. In
making the determination and allocations required by this Section 11.5, the Collateral Agent may
conclusively rely upon information supplied by the 13% Secured Notes Secured Parties or the trustee
for the 13% Secured Notes as to the amounts of unpaid principal and interest and other amounts
outstanding with respect to the 13% Secured Notes Obligations and the Collateral Agent shall have
no liability to any of the Secured Parties for actions taken in reliance on such information. All
distributions made by the Collateral Agent pursuant to this Section 11.5 shall be final, and the
Collateral Agent shall have no duty to inquire as to the application by the 13% Secured Notes
Secured Parties or trustee for the 13% Secured Notes of any amounts distributed to the 13% Secured
Notes Secured Parties.

          12. Continuing Effect. This Agreement shall remain in full force and effect and
continue to be effective should any petition be filed by or against the Grantor for liquidation or
reorganization, should the Grantor become insolvent or make an assignment for the benefit of
creditors or should a receiver or trustee be appointed for all or any significant part of the
Grantor’s assets, and shall continue to be effective or be reinstated, as the case may be, if at
any time payment and performance of the Secured Obligations, or any part thereof, is, pursuant to
applicable Law, rescinded or reduced in amount, or must otherwise be restored or returned by
Collateral Agent or any Secured Party, whether as a “voidable preference,” “fraudulent conveyance”
or otherwise (and whether by litigation, settlement, demand or otherwise), all as though such
payment or performance had not been made. In the event that any payment or any part thereof is
rescinded, reduced, restored or returned, the Secured Obligations shall be reinstated and deemed
reduced only by such amount paid and not so rescinded, reduced, restored or returned.

          13. Regulatory Matters. Collateral Agent, on behalf of Secured Parties, acknowledges
and agrees that:

     (a) In the event that Collateral Agent exercises one or more of the remedies set forth
in Section 11 of this Agreement, including but not limited to re-registration of the
Pledged Collateral pursuant to applicable Gaming Laws, such exercise of remedies

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would be deemed a separate transfer of the Pledged Collateral and would require the separate
and prior approval of the Gaming Authority pursuant to applicable Gaming Laws as in effect
on the date hereof.

     (b) The approval by the Gaming Authority of this Agreement shall not act or be
construed as the approval, either express or implied, for the Collateral Agent to take any
actions or steps provided for in this Agreement for which prior approval of the Gaming
Authority is required, without first obtaining such prior and separate approval of the
Gaming Authority to the extent then required by this Agreement.

          14. Covenant Not To Issue Uncertificated Securities. The Grantor represents and
warrants to Collateral Agent that all of the capital stock (or other equity interests) of MGM Grand
are securities in certificated form (in each case as contemplated by Article 8 of the Uniform
Commercial Code as in effect in the State of Nevada), and covenants to Collateral Agent that,
subject to the receipt of all required approvals from the applicable Gaming Authority, it will not
cause or permit MGM Grand (or any other Interest Issuer) to issue any member interests (or other
equity interest) in a form that is not a security, or in any uncertificated form, or seek to
convert all or any part of its existing member interests (or other equity interest) into
instruments or other documents that are not securities, or into securities in uncertificated form
(in each case as contemplated by Article 8 of the Uniform Commercial Code as in effect in the State
of Nevada). The foregoing representations, warranties and covenants shall survive the execution and
delivery of this Agreement.

          15. Covenant Not To Dilute Interests of Collateral Agent in Pledged Securities. The
Grantor represents, warrants and covenants to Collateral Agent that it will not at any time cause
or permit MGM Grand to issue any additional member interests (or other equity interest), or any
warrants, options or other rights to acquire any additional capital stock (or other equity
interest), if the effect thereof would be to dilute in any way the interests of Collateral Agent in
any Pledged Securities or in any Interest Issuer.

          16. Indemnity. The Grantor agrees to indemnify and hold harmless Collateral Agent, and
each of them, from and against any and all claims, demands, losses, judgments and liabilities
(including without limitation liabilities for penalties) of whatsoever kind or nature, and to
reimburse Collateral Agent for (a) all costs and expenses including, without limitation, attorneys’
fees and expenses and/or costs and expenses associated with, arising out of or in connection with
this Agreement, or any waiver, supplementation, extension, renewal or amendment of any term or
provision hereof, and (b) all costs and expenses including, without limitation, attorneys’ fees and
expenses and/or costs and expenses associated with, arising out of or in connection with the
exercise by Collateral Agent of any right or remedy Granted to it hereunder or under the other Note
Documents (including in connection with any workout, restructuring or bankruptcy, insolvency or
other similar proceeding) or the 13% Secured Notes Indenture; except, in each case, to the extent
arising from the gross negligence or willful misconduct of Collateral Agent as determined by a
court of competent jurisdiction by final and nonappealable judgment. In no event shall Collateral
Agent be liable for any matter or thing in connection with this Agreement other than to account for
monies actually received by Collateral Agent in accordance with the terms hereof. If and to the
extent that the agreements of the Grantor under this Section 16 are unenforceable for any
reason, the Grantor hereby agrees to make the maximum contribu-

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tion to the payment and satisfaction of such obligations which is permissible under applicable Law.

          17. Waivers and Consents. The Grantor acknowledges that the Liens created or granted
herein will or may secure obligations of Persons other than the Grantor and, in full recognition of
that fact, the Grantor consents and agrees that Collateral Agent may, but is not obligated to as
determined in its sole discretion, and shall upon the direction of the Noteholders in accordance
with Section 6.12 of the Indenture, at any time and from time to time, without notice or demand,
and without affecting the enforceability or security hereof:

     (a) supplement, modify, amend, extend, renew, accelerate, or otherwise change the time
for payment or the terms of the Notes Obligations or any part thereof, including any
increase or decrease of the rate(s) of interest thereon;

     (b) supplement, modify, amend or waive, or enter into or give any agreement, approval
or consent with respect to, the Notes Obligations or any part thereof or any of the Note
Documents or any additional security or guaranties, or any condition, covenant, default,
remedy, right, representation or term thereof or thereunder;

     (c) accept new or additional instruments, documents or agreements in exchange for or
relative to any of the Note Documents or the Notes Obligations or any part thereof;

     (d) accept partial payments on the Notes Obligations;

     (e) receive and hold additional security or guaranties for the Notes Obligations or any
part thereof;

     (f) release, reconvey, terminate, waive, abandon, subordinate, exchange, substitute,
transfer and enforce any security or guaranties, and apply any security and direct the order
or manner of sale thereof as Collateral Agent in its sole and absolute discretion may
determine;

     (g) release any Person or any guarantor from any personal liability with respect to the
Notes Obligations or any part thereof;

     (h) settle, release on terms satisfactory to Collateral Agent or by operation of
applicable laws or otherwise liquidate or enforce any Notes Obligations and any security or
guaranty therefor in any manner, consent to the transfer of any security and bid and
purchase at any sale; and

     (i) consent to the merger, change or any other restructuring or termination of the
corporate or other existence of Issuer or any other Person, and correspondingly restructure
the Notes Obligations, and any such merger, change, restructuring or termination shall not
affect the liability of the Grantor or the continuing existence of any Lien hereunder, under
any other Note Document to which the Grantor is a party or the enforceability hereof or
thereof with respect to all or any part of the Notes Obligations;

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provided, however, that the requisite written consent of the 13% Secured Notes Secured Parties
pursuant to the 13% Secured Notes Indenture shall be required with respect to any release, waiver,
amendment or other modification of this Agreement that would materially and adversely affect the
rights of the 13% Secured Notes Secured Parties to equally and ratably share in the security
provided for herein with respect to the Pledged Collateral. Except as set forth in this
Section 17, the 13% Secured Notes Secured Parties shall not have any rights to approve any
release, waiver, amendment, modification, charge, discharge or termination with respect to this
Agreement.

          Upon the occurrence of and during the continuance of any Event of Default, Collateral Agent
may enforce this Agreement independently as to the Grantor and independently of any other remedy or
security Collateral Agent at any time may have or hold in connection with the Secured Obligations,
and it shall not be necessary for Collateral Agent to marshal assets in favor of the Grantor or any
other Person or to proceed upon or against and/or exhaust any other security or remedy before
proceeding to enforce this Agreement. The Grantor expressly waives any right to require Collateral
Agent to marshal assets in favor of the Grantor, or any other Person or to proceed against any
other Person or any collateral provided by any other Person, and agrees that Collateral Agent may
proceed against any Person and/or collateral in such order as it shall determine in its sole and
absolute discretion. Collateral Agent may file a separate action or actions against the Grantor,
whether or not action is brought or prosecuted with respect to any other security or against any
other Grantor, Issuer or any other Person, or whether or not any other Person is joined in any such
action or actions. The Grantor agrees that Collateral Agent and Issuer and any Person may deal with
each other in connection with the Secured Obligations or otherwise, or alter any contracts or
agreements now or hereafter existing between any of them, in any manner whatsoever, all without in
any way altering or affecting the validity of, or the pledge or Security Interest granted or
created by, this Agreement. Collateral Agent’s rights hereunder shall be reinstated and revived,
and the enforceability of this Agreement shall continue, with respect to any amount at any time
paid on account of the Secured Obligations which thereafter shall be required to be restored or
returned by Collateral Agent upon the bankruptcy, insolvency or reorganization of the Grantor or
any other Person or otherwise (and whether by litigation, settlement, demand or otherwise), all as
though such amount had not been paid. The Grantor agrees that the Liens created or granted herein
and the enforceability of this Agreement at all times shall remain effective to secure the full
amount of all the Secured Obligations including, without limitation, the amount of all loans and
interest thereon at the rates provided for in the Indenture, the 13% Secured Notes Indenture and
the note(s) thereunder, even though the Secured Obligations, including any part thereof or
any other security or guaranty therefor, maybe or hereafter may become invalid or otherwise
unenforceable as against Issuer or any other Person and whether or not Issuer or any other Person
shall have any personal liability with respect thereto. The Grantor expressly waives any and all
defenses now or hereafter arising or asserted by reason of (a) any disability or other defense of
Issuer or any other Person with respect to the Secured Obligations, (b) the unenforceability or
invalidity of any security or guaranty for the Secured Obligations or the lack of perfection or
continuing perfection or failure or subordination of priority of any security for the Secured
Obligations, (c) the cessation for any cause whatsoever of the liability of Issuer or any other
Grantor (other than by reason of the full payment and performance of all Secured Obligations), (d)
any failure of Collateral Agent to marshal assets in favor of the Grantor or any other Person, (e) except as otherwise provided in this Agreement, any failure of Collateral
Agent to give notice of sale or other disposition of collateral to the Grantor or any other Person
or any

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defect in any notice that may be given in connection with any sale or disposition of collateral,
(f) except as otherwise provided in this Agreement, any failure of Collateral Agent to comply with
applicable Laws in connection with the sale or other disposition of any Pledged Collateral or other
security for any Secured Obligation, including, without limitation, any failure of
Collateral Agent to conduct a commercially reasonable sale or other disposition of any Pledged
Collateral or other security for any Secured Obligation, (g) any act or omission of Collateral
Agent or others that directly or indirectly results in or aids the discharge or release of Issuer
or any other Person or the Secured Obligations or any other security or guaranty therefor by
operation of Law or otherwise, (h) any Law which provides that the obligation of a surety or
guarantor must neither be larger in amount nor in other respects more burdensome than that of the
principal or which reduces a surety’s or guarantor’s obligation in proportion to the principal
obligation, (i) any failure of Collateral Agent to file or enforce a claim in any bankruptcy or
other proceeding with respect to any Person, (j) the election by Collateral Agent, in any
bankruptcy proceeding of any Person, of the application or non-application of Section 1111(b)(2) of
the United States Bankruptcy Code, (k) any extension of credit or the grant of any Lien under
Section 364 of the United States Bankruptcy Code, (l) any use of cash collateral under Section 363
of the United States Bankruptcy Code, (m) any agreement or stipulation with respect to the
provision of adequate protection in any bankruptcy proceeding of any Person, (n) the avoidance of
any Lien in favor of Collateral Agent for any reason, (o) any bankruptcy, insolvency,
reorganization, arrangement, readjustment of debt, liquidation or dissolution proceeding commenced
by or against any Person, including any discharge of, or bar or stay against collecting,
all or any of the Secured Obligations (or any interest thereon) in or as a result of any such
proceeding, (p) to the extent permitted by applicable Law, the benefits of any form of one-action
rule under any applicable Law, or (q) any action taken by Collateral Agent that is authorized by
this Section 1 or any other provision of any Note Document. Until all of the Secured Obligations
have been paid and performed in full, Grantor shall have no right of subrogation, contribution,
reimbursement or indemnity, and the Grantor expressly waives any right to enforce any remedy that
Collateral Agent now has or hereafter may have against any other Person and waives the benefit of,
or any right to participate in, any other security now or hereafter held by Collateral Agent. The
Grantor waives all rights and defenses arising out of an election of remedies by Collateral Agent,
even though that election of remedies, such as a non-judicial foreclosure with respect to security
for the Secured Obligations has destroyed the Grantor’s rights of subrogation and reimbursement
against the principal. The Grantor expressly waives all setoffs and counterclaims and all
presentments, demands for payment or performance, notices of nonpayment or nonperformance,
protests, notices of protest, notices of dishonor and all other notices or demands of any kind or
nature whatsoever with respect to the Secured Obligations, and all notices of acceptance of this
Agreement or of the existence, creation or incurring of new or additional Secured Obligations.

          Notwithstanding anything contained herein to the contrary, the right of the Collateral Agent
to perform any discretionary act enumerated herein or in any other Collateral Documents to which it
is a party (including the right to consent to or approve of any action or document which requires
their consent or approval and the right to waive any provision of, or consent to any change or
amendment to, any of the Collateral Documents) shall not be construed as giving rise to any
expressed or implied duty owed by the Collateral Agent, and the Collateral Agent shall not be
answerable in connection with any of the foregoing for, or have any liability
whatsoever as a result of, (i) its refusal to perform, consent or approve of such discretionary acts
without the prior consent or direction of the applicable percentage of the Noteholders that would

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be required if such consent or direction was obtained under the Indenture or Collateral documents,
as the case may be, or (ii) its performance of any such discretionary act (except for any gross
negligence or willful misconduct in the performance of such acts). In connection with any such
discretionary acts, the Collateral Agent may in its sole discretion (but shall not, except as
otherwise provided in the Indenture or as otherwise required by applicable Law, have any obligation
to) request the approval of the Noteholders.

          The obligations of the Collateral Agent to the 13% Secured Notes Secured Parties hereunder and
under the other Collateral Documents shall be limited solely to (i) holding the Pledged Collateral
for the benefit of the 13% Secured Notes Secured Parties for so long as (A) any Notes Obligations
remain outstanding and (B) any 13% Secured Notes Obligations are secured by such Pledged Collateral
and (ii) distributing any proceeds received by the Collateral Agent from the sale, collection or
realization of the Pledged Collateral to the 13% Secured Notes Secured Parties in respect of the
13% Secured Notes Obligations in accordance with the terms of this Agreement. The 13% Secured
Notes Secured Parties shall not be entitled to exercise (or direct the Collateral Agent to
exercise) any rights or remedies hereunder with respect to the 13% Secured Notes Obligations,
including without limitation the right to enforce the security interest in the Pledged Collateral,
request any action, institute proceedings, give any instructions, make any election, give any
notice to account debtors, make collections, sell or otherwise foreclose on any portion of the
Pledged Collateral or execute any amendment, supplement, or acknowledgment hereof or of any other
Collateral Document. This Agreement shall not create any liability of the Collateral Agent or the
Noteholders to any of the 13% Secured Notes Secured Parties by reason of actions taken with respect
to the creation, perfection or continuation of the security interest on the Collateral, actions
with respect to the occurrence of an Event of Default, actions with respect to the foreclosure
upon, sale, release, or depreciation of, or failure to realize upon, any of the Collateral or
action with respect to the collection of any claim for all or any part of the Secured Obligations
from any account debtor, guarantor or any other party or the valuation, use or protection of the
Pledged Collateral. By acceptance of the benefits under this Agreement and the other Collateral
Documents, the 13% Secured Notes Secured Parties will be deemed to have acknowledged and agreed
that the provisions of the preceding sentence are intended to induce the Noteholders to permit such
persons to be Secured Parties under this Agreement and certain of the other Collateral Documents
and are being relied upon by the Noteholders as consideration therefor. The Collateral Agent shall
not be required to ascertain or inquire as to the performance by the Issuer or any other obligor of
the 13% Secured Notes Obligations.

          Notwithstanding anything to the contrary herein, nothing in this Agreement shall or shall be
construed to (i) result in the security interest in the Pledged Collateral securing the 13% Secured
Notes Obligations less than equally and ratably with the Notes Obligations pursuant to the 13%
Secured Notes Indenture to the extent required or (ii) modify or affect the rights of the 13%
Secured Notes Secured Parties to receive the pro rata share specified in Section 11.5 of any
proceeds of any collection or sale of Collateral.

          The parties hereto agree that the 13% Secured Notes Obligations and the Notes Obligations are,
and will be, equally and ratably secured with each other by the Liens on the Pledged Collateral,
and that it is their intention to give full effect to the equal and ratable provisions of the 13% Secured Notes Indenture, as in effect on the date hereof. To the extent that
the rights and benefits herein or in any other Collateral Document conferred on the 13% Secured

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Notes Secured Parties shall be held to exceed the rights and benefits required so to be conferred
by such provisions, such rights and benefits shall be limited so as to provide such 13% Secured
Notes Secured Parties only those rights and benefits that are required by such provisions. Any and
all rights not herein expressly given to the 13% Secured Notes Secured Parties are expressly
reserved to the Collateral Agent and the Noteholders.

          18. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE LAW OF THE STATE OF NEVADA.

          19. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original and all of which, taken together, shall constitute one and the
same agreement.

          20. Additional Powers and Authorization. The Collateral Agent has been appointed as
the Collateral Agent hereunder pursuant to the Indenture and shall be entitled to the benefits of
the Indenture and the other Note Documents. By accepting the benefits of this Agreement and the
other Collateral Documents, each 13% Secured Notes Secured Party hereby appoints the Collateral
Agent, to serve as collateral agent of the 13% Secured Notes Secured Parties under each of this
Agreement and the other Collateral Documents on the terms set forth herein and in the other
Collateral Documents. Notwithstanding anything contained herein to the contrary, the Collateral
Agent may employ agents, trustees, or attorneys-in-fact and may vest any of them with any property
(including, without limitation, the Pledged Collateral), title, right or power deemed necessary for
the purposes of such appointment.

          21. Notices. The Grantor hereby irrevocably appoints Issuer as its agent for the
purpose of receiving notices hereunder, and agrees that the Grantor conclusively shall be deemed to
have received any notice when such notice has been given to Issuer in the manner provided for in
Section 12.01 of the Indenture.

          22. Consent To Transfer of Pledged Collateral. Notwithstanding any restrictions or
prohibitions on assignment, transfer or other hypothecation of the Pledged Collateral contained in
any articles of organization, articles or certificate of incorporation, operating agreement,
by-laws, shareholder agreement or any similar instrument (a) with respect to Grantor or any
Subsidiary of the Grantor or (b) otherwise entered into by the Grantor or any other party which may
from time to time become a Grantor hereunder, the Grantor hereby consents to (i) the pledge of the
Pledged Collateral hereunder, (ii) the assignment, pledge, transfer or other hypothecation of the
Pledged Collateral in connection with this Agreement or (iii) the exercise of any rights or
remedies hereunder, including transfers to the Collateral Agent or third parties pursuant to
foreclosure or other exercise of remedies.

          23. WAIVER OF JURY TRIAL. THE GRANTOR HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER NOTE DOCUMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT

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OR ANY OTHER THEORY). THE GRANTOR (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY
OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE
OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER NOTE DOCUMENTS
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          24. Rights, Privileges and Protections. The rights, privileges, protections,
immunities and benefits given to the Trustee by the terms of the Indenture and the Security
Agreement, including, without limitation, its rights to be reimbursed or indemnified, are extended
to, and shall be enforceable by, the Trustee in its capacity as Collateral Agent hereunder, and
each agent, custodian and other Person employed to act hereunder.

[The remainder of this page is intentionally left blank — signature page follows]

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          IN WITNESS WHEREOF, the Grantor has caused this Agreement to be duly executed as of the date
first above written.

	 	 	 	 	 
	 	“Grantor”

MGM MIRAGE, 
a Delaware corporation

 	 
	 	By:  	/s/ John M. McManus
 	 
	 	 	Name:  	John M. McManus 	 
	 	 	Title:  	Senior Vice President,
Deputy General Counsel and
Assistant Secretary 	 

	 	 	 	 	 
	ACCEPTED AND AGREED AS OF THE

DATE FIRST ABOVE WRITTEN:

“Collateral Agent”

U.S. Bank National Association

 	 	 
	By:  	/s/ Raymond S. Haverstock
 	 	 
	 	Name:  	Raymond S. Haverstock 	 	 
	 	Title:  	Vice President 	 	 

 

 

	 	 	 	 	 

Schedule 1

	 	 	 	 	 
	Membership Interest	 	Owner/Member	 	Certificate Number
	100%
	 	MGM Mirage
	 	1

Options/Warrants/Convertible Securities

None.

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