Document:

EX-4.2

 Exhibit 4.2 

VALERO ENERGY CORPORATION 

3.40% Senior Notes due 2026 
 A
single series of Securities is hereby established pursuant to Section 301 of the Indenture dated as of March 10, 2015 (the “Indenture”), between Valero Energy Corporation, a Delaware corporation (the “Company”), and
U.S. Bank National Association, as Trustee (in such capacity, the “Trustee”), as follows (capitalized terms used and not defined herein shall have the meanings assigned to them in the Indenture, and all references herein to a Section shall
refer to the corresponding Section in the Indenture): 
 1. The title of the 3.40% Senior Notes due 2026 shall be “3.40% Notes due
2026” (the “Notes”). 
 2. The initial limit upon the aggregate principal amount of the Notes that may be authenticated and
delivered under the Indenture (except for Notes authenticated and delivered upon registration of transfer of, or in exchange for, or in lieu of, other Notes pursuant to Sections 304, 305, 306, 906 or 1207) is $1,250,000,000, provided, however, that
the authorized aggregate principal amount of the Notes may be increased above such amount by a Board Resolution to such effect. 
 3. The
Notes shall be initially issued as Registered Securities in the form of one or more global securities under the Indenture. The Depository Trust Company is hereby designated as the Depository for these global Securities under the Indenture. 

As long as any Note is in global form, then, notwithstanding clause (11) of Section 301 and the provisions of Section 302, any
such global Note shall represent such of the outstanding Notes as shall be specified therein and may provide that it shall represent the aggregate amount of outstanding Notes from time to time endorsed thereon and that the aggregate amount of
outstanding Notes represented thereby may from time to time be reduced to reflect exchanges or redemptions. Any endorsement of a global Note to reflect the amount, or any increase or decrease in the amount, of outstanding Notes represented thereby
shall be made by the Trustee in such manner and upon instructions given by such Person or Persons as shall be specified in such Note or in a Company Order to be delivered to the Trustee pursuant to Section 303. Subject to the provisions of
Section 303 and, if applicable Section 304, the Trustee shall deliver and redeliver any Note in permanent global form in the manner and upon instructions given by the Person or Persons specified in such Note or in the applicable Company
Order. With respect to Notes that are represented by a global Note, the Company authorizes the execution and delivery by the Trustee of a letter of representations or other similar agreement or instrument in the form customarily provided for by the
Depository appointed with respect to such global Note. Any global Note may be deposited with the Depository or its nominee, or may remain in the custody of the Trustee pursuant to a FAST Balance Certificate Agreement or similar agreement between the
Trustee and the Depository. If a Company Order has been, or simultaneously is, delivered, any instructions by the Company with respect to endorsement or delivery or redelivery of a Note in global form shall be in writing but need not comply with
Section 102 and need not be accompanied by an Opinion of Counsel. 
 Members of, or participants in, the Depository (“Agent
Members”) shall have no rights under the Indenture with respect to any global Note held on their behalf by the Depository, or the Trustee as its custodian, or under such global Note and the Depository may be treated by the Company, the
Trustee and any agent of the Company or the Trustee as the absolute owner of such global Note for all purposes whatsoever. Notwithstanding the foregoing, (i) the registered holder of a global Note may grant proxies and otherwise authorize any
Person, including Agent Members and Persons that may hold interests through an Agent Member, to take any action that a Holder is entitled to take under the Indenture or the Notes and (ii) nothing herein shall prevent the Company, the Trustee or
any agent of the Company or the Trustee, from giving effect to any written certification, proxy or other authorization furnished by the Depository or shall impair, as between the Depository and its Agent Members, the operation of customary practices
governing the exercise of the rights of a beneficial owner of any Note. 
 Notwithstanding Section 305, and except as otherwise
provided pursuant to Section 301, transfers of a global Note shall be limited to transfers of such global Note in whole but not in part, to the Depository, its successors or their respective nominees. Interests of beneficial owners in a global
Note may be transferred in accordance with the rules and procedures of the Depository. In all other respects, Notes shall be transferred to all beneficial owners in exchange for their beneficial interest in a Global Security solely as expressly
provided in Section 305. 

  
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 In connection with any transfer of a portion of the beneficial interest in a global Note to
beneficial owners pursuant hereto and Section 305, the Security Registrar shall reflect on its books and records the date and a decrease in the principal amount of the global Note in an amount equal to the principal amount of the beneficial
interest in the global Note to be transferred, and the Company shall execute, and the Trustee upon receipt of a Company Order for the authentication and delivery of Notes shall authenticate and deliver, one or more Notes of like tenor and amount.

 In connection with the transfer of an entire global Note to beneficial owners pursuant hereto and Section 305, the global Security
shall be deemed to be surrendered to the Trustee for cancellation, and the Company shall execute, and the Trustee shall authenticate and deliver, to each beneficial owner identified by the Depository in exchange for its beneficial interest in the
global Note, an equal aggregate principal amount of Notes of authorized denominations. 
 Neither the Company nor the Trustee will have any
responsibility or liability for any aspect of the records relating to, or payments made on account of, Notes by the Depository, or for maintaining, supervising or reviewing any records of the Depository relating to the Notes. Neither the Company nor
the Trustee shall be liable for any delay by the related global Note Holder or the Depository in identifying the beneficial owners, and each such Person may conclusively rely on, and shall be protected in relying on, instructions from such global
Note Holder or the Depository for all purposes (including with respect to the registration and delivery, and the principal amount, of the Notes to be issued). 

Notwithstanding the provisions of Sections 201 and 307, unless otherwise specified as contemplated by Section 301, payment of principal
of, premium (if any) or interest on any global Note shall be made to the Person or Persons specified in such global Note. 
 5. The date on
which the principal of the Notes are payable shall be September 15, 2026. 
 6. The rate at which the Notes shall bear interest shall
be 3.40% per annum. Interest will be computed on the basis of a 360-day year of twelve 30-day months. The date from which interest shall accrue for the Notes shall be September 12, 2016. The Interest Payment Dates on which interest on the
Notes shall be payable are March 15 and September 15, commencing March 15, 2017. Interest on the Notes shall be payable to the persons in whose name the Notes are registered at the close of business on the Regular Record Date for such
interest payment, except in the case of default interest, which will be payable as provided in the Indenture. The Regular Record Date for the interest payable on the Notes on any Interest Payment Date shall be the March 1 and September 1,
as the case may be, immediately preceding such Interest Payment Date. No Additional Amounts shall be payable with respect to the Notes. 

7. The place or places where the principal of, premium (if any) on and interest on the Notes shall be payable is at the office or agency of
the Paying Agent and Security Registrar in New York, New York or such other offices or agencies maintained for such purpose as the Company may from time to time and in accordance with the Indenture designate. If appropriate wire transfer
instructions have been received by the Trustee, not later than five Business Days prior to the record date for an applicable Interest Payment Date, then payments in respect of the Notes evidenced by a global Security (including principal, premium,
if any, and interest) shall be made by wire transfer of immediately available funds to the accounts specified by the Holder of such global Note. In all other cases, payment of interest on the Notes may be made at the option of the Company by check
mailed to the address of the person entitled thereto as such address shall appear in the Security Register. 
 8. The Notes will be
redeemable at any time and from time to time prior to June 15, 2026, in whole or in part, at the option of the Company, at a redemption price equal to the greater of (i) 100% of the principal amount of such Notes, and (ii) the sum of
the present values of the remaining scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption) calculated as if the maturity date of the Notes was June 15,
2026, discounted to the date of redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as defined below) plus 30 basis points, as calculated by an Independent Investment Banker
plus, in each case, accrued and unpaid interest thereon to the date of redemption; provided that the principal amount of a Security outstanding after redemption in part shall be $2,000 or an integral multiple of $1,000 in excess thereof. 

  
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 On or after June 15, 2026, the Notes will be redeemable at any time, in whole or in part, at
the option of the Company, at a redemption price equal to 100% of the principal amount of such Notes, plus accrued and unpaid interest to, but not including, the date of redemption. 

“Adjusted Treasury Rate” means, with respect to any date of redemption, (i) the yield, under the heading which represents
the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)“or any successor publication which is published weekly by the Board of Governors of the Federal Reserve
System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no
maturity is within three months before or after the remaining life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be interpolated or
extrapolated from such yields on a straight line basis, rounding to the nearest month); or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such yields, the rate
per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price
for such date of redemption. The Adjusted Treasury Rate shall be calculated on the third Business Day preceding the date of redemption. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a
maturity comparable to the remaining term of the Notes (assuming, for this purpose, that the Notes matured on June 15, 2026) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new
issues of corporate debt securities of comparable maturity to the remaining term of the Notes (assuming, for this purpose, that the Notes matured on June 15, 2026). 

“Comparable Treasury Price” means, with respect to any date of redemption, (i) the average of five Reference Treasury
Dealer Quotations for such date of redemption, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than five such Reference Treasury Dealer Quotations, the
average of all such Reference Treasury Dealer Quotations. 
 “Independent Investment Banker” means one of the Reference
Treasury Dealers appointed by the Company to act as the independent investment banker from time to time. 
 “Reference Treasury
Dealers” means (i) Citigroup Global Markets Inc., Barclays Capital Inc., Mizuho Securities USA Inc. and RBC Capital Markets LLC or their respective successors; provided that, if any of the foregoing shall cease to be a primary U.S.
Government securities dealer (a “Primary Treasury Dealer”), the Company shall substitute therefor another Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer selected by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption, the
average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by
such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such date of redemption. 
 Notice of any redemption
will be mailed at least 30 days but not more than 60 days before the date of redemption to each Holder of the Notes to be redeemed. Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will
cease to accrue on the Notes or portions thereof called for redemption. 

  
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 9. The Notes shall not be entitled to the benefit of any sinking fund, any optional repurchase or
redemption right in favor of any holder thereof or other mandatory repurchase or redemption provisions. 
 10. The Notes shall be in
substantially the form of Attachment A hereto (the “Form of Note”). 
 11. Each Note that is a global Security shall
bear the legend set forth on the face of the Form of Note. 

  
 4 

 Attachment A – Form of Note 

[FORM OF FACE OF SECURITY] 

[THIS SECURITY IS A GLOBAL SECURITY AS PROVIDED FOR IN THE INDENTURE HEREINAFTER REFERRED TO AND IS REGISTERED IN THE NAME OF A DEPOSITORY
OR A NOMINEE OF A DEPOSITORY. THIS SECURITY IS EXCHANGEABLE FOR SECURITIES REGISTERED IN THE NAME OF A PERSON OTHER THAN THE DEPOSITORY OR ITS NOMINEE ONLY IN THE LIMITED CIRCUMSTANCES DESCRIBED IN THE INDENTURE, AND NO TRANSFER OF THIS SECURITY
(OTHER THAN A TRANSFER OF THIS SECURITY AS A WHOLE BY THE DEPOSITORY TO A NOMINEE OF THE DEPOSITORY OR BY A NOMINEE OF THE DEPOSITORY TO THE DEPOSITORY OR ANOTHER NOMINEE OF THE DEPOSITORY) MAY BE REGISTERED EXCEPT IN SUCH LIMITED CIRCUMSTANCES.]* 
 [Unless this certificate is presented by an authorized representative of The
Depository Trust Company, a New York corporation (“DTC”), to the issuer or its agent for registration of transfer, exchange, or payment, and any certificate issued is registered in the name of Cede & Co. or such other name
as is requested by an authorized representative of DTC (and any payment is made to Cede & Co. or to such other entity as is requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE
BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede & Co., has an interest herein.]* 

VALERO ENERGY CORPORATION 
 3.40%
NOTES DUE 2026 
  

			
	No. [        ]	  	$[                    ]
	REGISTERED	  	CUSIP No. 91913Y AU4
		  	ISIN No. US919134AU47

 VALERO ENERGY CORPORATION, a Delaware corporation (the “Company,” which term includes any
successor Person under the Indenture hereinafter referred to), for value received promises to pay to Cede & Co. or registered assigns, the principal sum of [            ] Dollars
[or such lesser amount as indicated on the schedule of exchanges of Securities,]* on September 15, 2026. 

Interest Payment Dates: March 15 and September 15 

Regular Record Dates: March 1 and September 1 

Reference is hereby made to the further provisions of this Security set forth in the reverse hereof, which further provisions shall for all
purposes have the same effect as if set forth at this place. 
  

	*	To be included only if the Security is a Global Security. 

  
 A-1 

 IN WITNESS WHEREOF, the Company has caused this Security to be signed manually or by facsimile by
its duly authorized officers. 

Dated:                     , 

 

			
	VALERO ENERGY CORPORATION
		
	By:	 	  

		 	    [            ]

  

			
	ATTEST:
		
	By:	 	  

		 	    [            ]

 TRUSTEE’S CERTIFICATE OF AUTHENTICATION: 

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

 

							
	Dated:                     ,	 		 	U.S. BANK NATIONAL ASSOCIATION, as Trustee
				
		 		 	By:	 	  

		 		 		 	    Authorized Signatory

  
 A-2 

 [FORM OF REVERSE OF SECURITY] 

VALERO ENERGY CORPORATION 
 3.40%
NOTES DUE 2026 
 This Security is one of a duly authorized issue of debentures, notes or other evidences of indebtedness of
VALERO ENERGY CORPORATION, a Delaware corporation (the “Company”), issued under the Indenture hereinafter referred to and is one of a series of such debentures, notes or
other evidences of indebtedness designated pursuant thereto as 3.40% Notes due 2026 (the “Securities”) of the Company. 
 1.
Interest. The Company promises to pay interest on the principal amount of this Security at 3.40% per annum from September 12, 2016 until September 15, 2026 (“Maturity”). The Company will pay interest semiannually on
March 15 and September 15 of each year (each an “Interest Payment Date”) and on the Maturity of the Securities, or if any such day is not a Business Day, on the next succeeding Business Day. Interest on the Securities will
accrue from the most recent Interest Payment Date on which interest has been paid or, if no interest has been paid, from September 12, 2016; provided that if there is no existing Default in the payment of, or provisions for, interest, and if
this Security is authenticated between a Regular Record Date referred to on the face hereof (whether or not a Business Day) and the next succeeding Interest Payment Date, interest shall accrue from such next succeeding Interest Payment Date;
provided, further, that the first Interest Payment Date shall be March 15, 2017. The interest so payable, and punctually paid or provided for, on any Interest Payment Date will, as provided in the Indenture, be paid to the Person in whose name
this Security (or one or more Predecessor Securities) is registered at the close of business on the Regular Record Date for such interest as set forth on the face hereof; provided, however, that interest payable at Maturity of this Security will be
payable to the Person to whom the principal hereof shall be payable. Any such interest which is so payable, but is not punctually paid or duly provided for on any Interest Payment Date, shall forthwith cease to be payable to the registered Holder on
such Regular Record Date, and may be paid as more fully provided in the Indenture. Interest will be computed on the basis of a 360-day year of twelve 30-day months. 

2. Method of Payment. Payment of the principal of (and premium, if any) and interest on this Security will be made at the office or
agency of the Company maintained for that purpose in New York, New York, or at such other offices or agencies maintained for such purpose as the Company may from time to time and in accordance with the Indenture designate, in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and private debts; provided, however, that (i) payment of interest may, at the option of the Company, be made (subject to collection) by check
mailed to the address of the Person entitled thereto as such address shall appear on the Security Register or, with respect to Securities evidenced by a global Security, if appropriate wire transfer instructions have been received in writing by the
Trustee, not later than five Business Days prior to the record date for an applicable Interest Payment Date, be made by wire transfer of immediately available funds in accordance with such wire transfer instructions; and (ii) payment of
available funds upon surrender of this Security will be made at the office or agency of the Company maintained for that purpose in New York, New York or at such additional offices or agencies maintained for such purpose as the Company may from time
to time and in accordance with the Indenture designate. 
 3. Certain Office. Initially, U.S. Bank National Association (in such
capacities, the “Paying Agent” and the “Security Registrar”) will, at its offices located at 100 Wall Street, Suite 1600, New York, New York 10005, act as the Company’s office or agency solely for purposes of
where the Securities may be presented or surrendered for payment and where the Securities may be surrendered for registration of transfer or exchange. For all other purposes, including where notices and demands to or upon the Company in respect of
the Securities and the Indenture may be served, U.S. Bank National Association, the Trustee under the Indenture, will act at its offices located at 100 Wall Street, Suite 1600, New York, New York 10005. 

4. Indenture. The Company issued the Securities under an Indenture dated as of March 10, 2015 (the “Indenture”)
between the Company and the Trustee. The terms of the Securities include those stated in the Indenture (including terms defined therein, which terms when used herein, unless the context requires otherwise, shall have the meanings assigned to such
terms in the Indenture) and those made part of the Indenture by reference to the Trust Indenture Act of 1939, as amended (the “TIA”), as in effect on the date of execution of the Indenture. The Securities

  
 A-3 

 
are subject to all such terms, and Holders are referred to the Indenture and the TIA for a statement of such terms. The Securities are unsecured general obligations of the Company initially
limited to $1,250,000,000 in aggregate principal amount and will rank on a parity with all other unsecured and unsubordinated indebtedness of the Company; provided, however, that the authorized aggregate principal amount of the Securities may be
increased above such amount by a Board Resolution to such effect. The Indenture provides for the issuance of other series of debentures, notes and other evidences of indebtedness (including the Securities, the “Debt Securities”)
thereunder. 
 5. Denominations, Transfer, Exchange. The Securities are in registered form without coupons and, if not in global
form, in denominations of $2,000 and integral multiples of $1,000 in excess thereof. The transfer of Securities may be registered and Securities may be exchanged as provided in the Indenture. The Security Registrar and the Trustee may require a
Holder, among other things, to furnish appropriate endorsements and transfer documents and to pay any taxes and fees required by law or permitted by the Indenture. The Security Registrar need not exchange or register the transfer of any Securities
during the period beginning on the opening of business 15 days before the day of mailing of a notice of redemption of the Securities and ending at the close of business on the day of such mailing or of any Securities selected for redemption, except
the unredeemed portion of any Securities being redeemed in part. 
 6. Persons Deemed Owners. The registered Holder of a Security
shall be treated as its owner for all purposes. 
 7. Redemption. The Securities will be redeemable at any time and from time to time
prior to June 15, 2026, in whole or in part, at the option of the Company, at a redemption price equal to the greater of (i) 100% of the principal amount of such Securities, and (ii) the sum of the present values of the remaining
scheduled payments of principal and interest thereon (not including any portion of such payments of interest accrued as of the date of redemption), calculated as if the Maturity of the Securities was June 15, 2026 discounted to the date of
redemption on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day months) at the Adjusted Treasury Rate (as
defined below) plus 30 basis points, as calculated by the Independent Investment Banker (as defined below) plus, in each case, accrued and unpaid interest thereon to the date of redemption; provided that the principal amount of a Security
outstanding after redemption in part shall be $2,000 or an integral multiple of $1,000 in excess thereof. 
 On or after June 15, 2026,
the Securities will be redeemable at any time, in whole or in part, at the option of the Company, at a redemption price equal to 100% of the principal amount of such Securities, plus accrued and unpaid interest to, but not including, the date of
redemption. 
 “Adjusted Treasury Rate” means, with respect to any date of redemption, (i) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the
Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable
Treasury Issue (if no maturity is within three months before or after the remaining life, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be determined and the Adjusted Treasury Rate shall be
interpolated or extrapolated from such yields on a straight line basis, rounding to the nearest month); or (ii) if such release (or any successor release) is not published during the week preceding the calculation date or does not contain such
yields, the rate per annum equal to the semi-annual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage of its principal amount) equal to the Comparable
Treasury Price for such date of redemption. The Adjusted Treasury Rate shall be calculated on the third Business Day preceding the date of redemption. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having a
maturity comparable to the remaining term of the Notes (assuming, for this purpose, that the Securities matured on June 15, 2026) that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing
new issues of corporate debt securities of comparable maturity to the remaining term of the Notes (assuming, for this purpose, that the Securities matured on June 15, 2026). 

  
 A-4 

 “Comparable Treasury Price” means, with respect to any date of redemption,
(i) the average of five Reference Treasury Dealer Quotations for such date of redemption, after excluding the highest and lowest such Reference Treasury Dealer Quotations, or (ii) if the Independent Investment Banker obtains fewer than
five such Reference Treasury Dealer Quotations, the average of all such Reference Treasury Dealer Quotations. 
 “Independent
Investment Banker” means one of the Reference Treasury Dealers appointed by the Company to act as the independent investment banker from time to time. 

“Reference Treasury Dealers” means (i) Citigroup Global Markets Inc., Barclays Capital Inc., Mizuho Securities USA Inc.
and RBC Capital Markets, LLC or their respective successors; provided that, if any of the foregoing shall cease to be a primary U.S. Government securities dealer (a “Primary Treasury Dealer”), the Company shall substitute therefor
another Primary Treasury Dealer; and (ii) any other Primary Treasury Dealer selected by the Company. 
 “Reference Treasury
Dealer Quotations” means, with respect to each Reference Treasury Dealer and any date of redemption, the average, as determined by the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed
in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker by such Reference Treasury Dealer at 3:30 p.m., New York City time, on the third Business Day preceding such date of redemption. 

Notice of any redemption will be mailed at least 30 days but not more than 60 days before the date of redemption to each Holder of the Securities to be
redeemed. Unless the Company defaults in payment of the redemption price, on and after the date of redemption, interest will cease to accrue on the Securities or portions thereof called for redemption. 

8. Amendments and Waivers. Subject to certain exceptions and limitations, the Indenture or the Securities may be supplemented with the
consent of the Holders of not less than a majority in aggregate principal amount of the outstanding Securities, and any past default under the Indenture with respect to the Securities, and its consequences, may be waived (other than a default in the
payment of the principal of (or premium, if any) or interest on the Securities or in respect of a covenant or provision of the Indenture which under Article 9 thereof cannot be modified or amended without the consent of the Holder of each
outstanding Security) by the Holders of not less than a majority in principal amount of the outstanding Securities in accordance with the terms of the Indenture. Without the consent of any Holder, the Company and the Trustee may supplement the
Indenture or the Securities (i) to cure any ambiguity, omission, defect or inconsistency, in each case which shall not be inconsistent with the provisions of the Indenture and which shall not adversely affect the interest of the Holders of the
Securities in any material respect; (ii) to evidence the assumption by a successor Person of the obligations of the Company under the Indenture and this Security; (iii) to change or eliminate any restrictions on the payment of principal
(or premium, if any) on Registered Securities, to permit Registered Securities to be exchanged for Bearer Securities or to permit the issuance of Securities in uncertificated form, provided any such action shall not adversely affect the interest of
the Holders of the Securities in any material respect; (iv) to add to the covenants of the Company for the benefit of the Holders of the Securities or Holders of other series of Debt Securities, or to surrender any right or power conferred by
the Indenture upon the Company; (v) to add to, delete from or revise the conditions, limitations and restrictions on the authorized amount, terms or purpose of issue, authentication and delivery of the Securities as set forth in the Indenture;
or (vi) to evidence and provide for the acceptance of appointment under the Indenture by a successor Trustee with respect to the Securities and to add to or change any of the provisions of the Indenture as shall be necessary to provide for or
facilitate the administration of the trusts thereunder by more than one Trustee, pursuant to the requirements of the Indenture. 
 The right
of any Holder to participate in any consent required or sought pursuant to any provision of the Indenture (and the obligation of the Company to obtain any such consent otherwise required from such Holder) may be subject to the requirement that such
Holder shall have been the Holder of record of any Securities with respect to which consent is required or sought as of a date fixed in accordance with the terms of the Indenture. 

Subject to certain exceptions and limitations set forth in the Indenture, without the consent of each Holder affected, the Company may not
(i) change the Stated Maturity of the principal of or any installment of 

  
 A-5 

 
interest on any Security, (ii) reduce the principal amount of, or any premium or interest on, any Security, (iii) change any Place of Payment where, or the currency in which, any
Security or any premium or interest thereon is payable, (iv) impair the right to institute suit for the enforcement of any payment with respect to any Security after the Stated Maturity thereof (or, in the case of redemption, on or after the
applicable Redemption Date), (v) reduce the percentage in principal amount of the outstanding Securities whose Holders must consent to a supplement or waiver, or reduce the requirements in Section 1504 of the Indenture for quorum or
voting, or make any change in the percentage of principal amount of Securities necessary to waive compliance with certain provisions of the Indenture or (vi) waive a continuing Default or Event of Default in the payment of principal of or
premium (if any) or interest on the Securities. 
 A supplemental indenture that changes or eliminates any covenant or other provision of
the Indenture which has expressly been included solely for the benefit of one or more particular series of Debt Securities under the Indenture, or which modifies the rights of the Holders of Debt Securities of such series with respect to such
covenant or other provision, shall be deemed not to affect the rights under the Indenture of the Holders of Debt Securities of any other series. 

9. Defaults and Remedies. Events of Default are defined in the Indenture and generally include: (i) failure to pay principal of or
any premium on any Security when due and payable; (ii) failure to pay any interest on any Security when due and payable, and the continuation of the default for 30 days; (iii) failure to perform any other covenant, or breach of any
warranty, of the Company in the Indenture, continued for 60 days after written notice is given or received as provided in the Indenture; and (iv) certain events of bankruptcy, insolvency or reorganization. If any Event of Default at any time
outstanding occurs and is continuing, either the Trustee or the Holders of at least 25% in aggregate principal amount of the then outstanding Securities may declare the principal amount of all Securities to be due and payable immediately. At any
time after a declaration or occurrence of acceleration with respect to the Securities has been made, but before a judgment or decree based on acceleration has been obtained, the Event of Default giving rise to such declaration of acceleration shall,
under certain circumstances, be deemed to have been waived, and such declaration and its consequences shall be deemed to have been rescinded and annulled. 

Holders may not enforce the Indenture or the Securities except as provided in the Indenture. The Trustee may require indemnity reasonably
satisfactory to it before it enforces the Indenture or the Securities. Subject to certain limitations, Holders of a majority in principal amount of the then outstanding Securities may direct the Trustee in its exercise of any trust or power with
respect to the Securities. The Trustee may withhold from Holders notice of any continuing default (except a default in payment of principal, premium (if any) or interest) if in good faith it determines that withholding notice is in their interests.
The Company must furnish an annual compliance certificate to the Trustee. 
 10. Discharge Prior to Maturity. The Indenture with
respect to the Securities shall be discharged and canceled upon the payment of all Securities and, as provided in the Indenture, shall be discharged except for certain obligations upon the irrevocable deposit with the Trustee of funds sufficient for
such payment. 
 11. Trustee Dealings with Company. The Trustee, in its individual or any other capacity, may make loans to, accept
deposits from, and perform services for the Company or its Affiliates, and may otherwise deal with the Company or its Affiliates, as if it were not Trustee. 

12. Authentication. This Security shall not be valid until authenticated by the manual signature of an authorized signer of the
Trustee. 
 13. CUSIP Numbers. Pursuant to a recommendation promulgated by the Committee on Uniform Security Identification
Procedures, the Company has caused CUSIP numbers to be printed on the Securities as a convenience to the Holders of the Securities. No representation is made as to the correctness of such numbers as printed on the Securities and reliance may be
placed only on the other identification numbers printed thereon. 
 14. Abbreviations. Customary abbreviations may be used in the
name of a Holder or an assignee, such as: TEN COM (= tenants in common), TEN ENT (= tenants by the entireties), JT TEN (= joint tenants with right of survivorship and not as tenants in common), CUST (= Custodian), and U/G/M/A (= Uniform gifts to
Minors Act). 

  
 A-6 

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

One Valero Way 
 San
Antonio, Texas 78249 
 Telephone: (210) 345-2000 

Attention: General Counsel 

  
 A-7 

 SCHEDULE OF EXCHANGES OF SECURITY* 

The following exchanges of a part of this global Security for definitive Securities have been made: 

 

																	
	 Date of exchange
	  	Amount of decrease in
principal amount of
this global Security	 	  	Amount of increase in
principal amount of
this global Security	 	  	Principal amount of
this global Security
following such
decrease (or increase)	 	  	Signature of
authorized officer of
Trustee or Security
Registrar	 
		  				  				  				  			

  

	*	This schedule to be included only if the Security is a Global Security. 

  
 A-8 

 ASSIGNMENT FORM 

To assign this Security, fill in the form below: (I) or (we) assign and transfer this Security
to                                  (Insert assignee’s social security
or tax I.D. number) 

	
	  

	  

	  

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

 

			
	and irrevocably appoint	 	  

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

					
	  

			
	Date:                                	  	Your Signature:	 	  

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

  

			
	Signature Guarantee:	 	  

	(Participant in a Recognized Signature Guaranty Medallion Program)

  
 A-9EX-10.1

 Exhibit 10.1 

Execution Copy 

CIE PROCEEDS AND RESERVATION OF RIGHTS AGREEMENT 

THIS CIE PROCEEDS AND RESERVATION OF RIGHTS AGREEMENT, dated as of September 9, 2016 (this “Agreement”), is made by and
among (i) Caesars Interactive Entertainment, Inc. (“CIE”), (ii) Caesars Acquisition Company, on behalf of itself and each of its direct and indirect Subsidiaries (collectively, “CAC”), (iii) Caesars
Entertainment Corporation, on behalf of itself and each of its direct and indirect Subsidiaries, other than the Company (collectively, “CEC”), and (iv) Caesars Entertainment Operating Company, on behalf of itself and each of
the debtors in the Chapter 11 Cases (collectively, the “Company” and together with CIE, CAC and CEC, the “Parties”). 

WHEREAS, on January 15, 2015, the Company commenced voluntary cases under chapter 11 of title 11 of the United States Code, 11 U.S.C.
§§ 101 et seq. (as amended, the “Bankruptcy Code”) in the United States Bankruptcy Court for the Northern District of Illinois (the “Bankruptcy Court”), which cases are currently pending before the
Honorable Judge A. Benjamin Goldgar and jointly administered for procedural purposes only under Case No. 15-01145, and any proceedings relating thereto (collectively, the “Chapter 11 Cases”); 

WHEREAS, on March 12, 2015, the Bankruptcy Court issued an order (Docket No. 675, the “Examiner Order”) directing the U.S.
Trustee to appoint an examiner (the “Examiner”) to investigate certain transactions, conveyances and other activities, including without limitation (i) the Challenged Transactions (as defined therein); (ii) the Insider
Transactions (as defined therein); (iii) any other transactions involving the Debtors to the extent those transactions suggest potential claims belonging to the estates, including without limitation causes of action against any current officers or
directors of the Debtors, any former officers or directors of the Debtors, any affiliates of the Debtors, or any advisors of the Debtors; and (iv) any apparent self-dealing or conflicts of interest involving the Debtors, their affiliates, or their
advisors; 
 WHEREAS, on March 15, 2016, the Examiner issued his report (Docket No. 3401), and on May 16, 2016, the Examiner issued a
substantially unredacted version of his report (Docket No. 3720, collectively, the “Examiner Report”), in which he analyzed claims and potential claims belonging to the Debtors and their estates arising from or related to the
transactions, conveyances and other acts and omissions that were the subject of his investigation; 
 WHEREAS, the Governance Committee of
the CEOC Board of Directors (the “Governance Committee”) and its advisors conducted an investigation that analyzed and identified claims belonging to the Debtors and concluded that many claims were likely to succeed and had
significant value to the Debtors’ estate; 
 WHEREAS, CEC and CAC dispute the conclusions reached by the Governance Committee’s
investigation and the Examiner Report; 
 WHEREAS, the Company and CAC are party to the Amended and Restated Restructuring Support Agreement
dated as of July 9, 2016 (as amended, supplemented, or otherwise modified from time to time, the “CEOC-CAC RSA”); 

WHEREAS, the Company and CEC are party to the Amended and Restated Restructuring Support Agreement dated as of July 9, 2016 (as amended,
supplemented, or otherwise modified from time to time, the “CEOC-CEC RSA”); 

 WHEREAS, the Company has sought the entry of an order of the Bankruptcy Court approving the
restructuring of the Debtors pursuant to a Chapter 11 plan of reorganization consistent with the terms of the RSAs (the “Plan”); 

WHEREAS, Caesars Interactive Entertainment Inc. (“Seller”) is party to the Stock Purchase Agreement, dated as of
July 30, 2016, by and among Alpha Frontier Limited, Seller and, solely for the purposes set forth therein, Caesars Growth Partners, LLC and CIE Growth, LLC (as amended, supplemented, or otherwise modified from time to time, the
“Purchase Agreement”); and 
 WHEREAS, CEC is the parent of an affiliated group (as that term is defined in Section 1504 of
the Code and the Treasury Regulations thereunder) (the “CEC Consolidated Group”), which will utilize certain net operating losses (“NOLs”) and other tax attributes generated by CEOC and its subsidiaries (together
with the NOLs, the “Tax Attributes”) upon, and as a result of, the closing of the Purchase Agreement. 
 All capitalized
terms not defined herein shall have the meanings ascribed to them in the Purchase Agreement or Annex A attached hereto. 

NOW, THEREFORE, the Parties hereto hereby agree as follows. 

1. Escrow of CIE Proceeds. Prior to the Closing, the Parties shall enter into an escrow agreement, and the release of the escrow
funds covered thereby will be governed by the terms of Annex A attached hereto, which is hereby incorporated by reference and made a part of this Agreement. In connection with the Closing, the CIE Proceeds will be
deposited into the CIE Escrow Account in accordance with, and to the extent required under, Annex A. 
 2.
Reservation of Rights. Nothing in this Agreement restricts in any way any rights the Parties may have to the CIE Proceeds. 
 3.
Tax Attributes. Neither this Agreement nor the consummation of the transactions contemplated by the Purchase Agreement restricts in any way any rights the Parties may have with respect to the Tax Attributes or the CEC Consolidated
Group’s use thereof. If a court of competent jurisdiction enters a final non-appealable order that (a) CEC’s use of the Tax Attributes violated the automatic stay in the Company’s chapter 11 case, (b) the Company would
have been entitled to enjoin the Closing until such time as the Company’s deconsolidation from the CEC Consolidated Group (a “Tax Deconsolidation”) would prevent the use of the Tax Attributes upon and as a result of the
Closing, or (c) the Company otherwise is or would have been entitled to compensation for the use of the Tax Attributes by CEC, then, in any case of (a), (b) or (c), CEC shall pay to, or at the direction of, the Company the amount, if any, as
determined by a final non-appealable court order, equal to the value of the Tax Attributes to the Company (the “Payment”). So long as the Payment is due and owing, all amounts held in the CIE Escrow Account to be distributed to
CEC or its Subsidiaries (other than CGP and its Subsidiaries) on account of indirect interests in CIE in accordance with the organizational documents of CIE and CGP shall instead be distributed directly to the Company, as it directs in writing,
until such time as (x) an amount equal to the Payment (less any amounts paid by CEC to the Company with respect thereto) has been so distributed or (y) the Plan is confirmed. CEC agrees that it shall not raise any objections or defenses in any
such court proceedings (y) to the court’s ability to make such determination(s) and enter such order(s), including, without limitation on grounds of ripeness, justiciability, jurisdiction, lack of case or controversy, or any time-based
defense including statutes of limitation or statutes of repose, or (z) on account of the 

  
 2 

 
Company not attempting to enjoin the Closing prior to the Closing. The Company shall give CEC at least 30 days prior written notice before it takes any action to effectuate a Tax
Deconsolidation and agrees that CEC shall not be obligated to make any Payment prior to a Tax Deconsolidation. 
 4. Purchase
Agreement. CIE will not amend or waive any provision of the Purchase Agreement in a manner that would, or would reasonably be expected to, reduce the CIE Proceeds, without the prior written consent of the Company. 

5. Miscellaneous. 
 (a)
Notices. All notices, requests, documents delivered, and other communications hereunder must be in writing and will be deemed to have been duly given only if delivered personally, by facsimile transmission, mailed (first class postage
prepaid) or by electronic mail (“e-mail”) to the Parties at the following addresses, facsimile numbers, or e-mail addresses: 
 If
to the Company: 

			
	
	Caesars Entertainment Operating Company, Inc.
	One Caesars Palace Drive
	Las Vegas, NV 89109

			
	Attn:	  	General Counsel

			
	
	With a copy to (which shall not constitute notice):
	
	Kirkland & Ellis LLP
	601 Lexington Ave
	New York, NY 10022

			
	Attn:	  	Paul M. Basta, P.C.
		  	Nicole L. Greenblatt, P.C.

			
	Facsimile:	  	(212) 446 4900

			
	E-mail Address:	  	paul.basta@kirkland.com
		  	ngreenblatt@kirkland.com
	
	-and-
	
	Kirkland & Ellis LLP
	300 North LaSalle
	Chicago, IL 60654

			
	Attn:	  	David R. Seligman, P.C.
		  	Joseph M. Graham

			
	Facsimile:	  	(312) 862-2200

			
	E-mail Address:	  	dseligman@kirkland.com
		  	joe.graham@kirkland.com

  
 3 

			
	If to CAC:
	
	Caesars Acquisition Company
	One Caesars Palace Drive
	Las Vegas, NV 89109

			
	Attn:	  	General Counsel

			
	
	With a copy to (which shall not constitute notice):

			
	
	Latham & Watkins LLP
	885 Third Avenue
	New York, NY 10022-4834

			
	Attn:	  	Christopher Harris
		  	Mark Broude
		  	Raymond Y. Lin
		  	Daniel D. Adams

			
	Telephone:	  	(212) 373-3000
	Facsimile	  	(212) 373-2053

			
	E-mail Address:	  	christopher.harris@lw.com
		  	mark.broude@lw.com
		  	raymond.lin@lw.com
		  	daniel.adams@lw.com

			
	
	If to CEC:
	
	Caesars Entertainment Corp.
	One Caesars Palace Drive
	Las Vegas, NV 89109

			
	Attn:	  	General Counsel

			
	E-mail Address:	  	tdonovan@caesars.com
	
	With a copy to (which shall not constitute notice):
	
	Paul, Weiss, Rifkind, Wharton & Garrison LLP
	1285 Avenue of the Americas
	New York, NY 10019

			
	Attn:	  	Jeffrey D. Saferstein
		  	Samuel E. Lovett

			
	Telephone:	  	(212) 373-3000
	Facsimile:	  	(212) 373-2053

			
	E-mail Address:	  	jsaferstein@paulweiss.com
		  	slovett@paulweiss.com
	
	-and-
	
	Milbank, Tweed, Hadley & McCloy LLP
	601 South Figueroa Street, 30th Floor
	Los Angeles, CA 90017

			
	Attn:	  	Paul S. Aronzon
		  	Thomas R. Kreller

			
	Telephone:	  	(213) 892-4000
	Facsimile:	  	(213) 629-5063

			
	Email Address:	  	paronzon@milbank.com
		  	tkreller@milbank.com

  
 4 

			
	-and-
	
	Reed Smith LLP
	599 Lexington Avenue, 22nd Floor
	New York, New York

			
	Attn:	  	Howard L. Shecter
		  	Kenneth M. Siegel

			
	Telephone:	  	(212) 521-5471
	Facsimile:	  	(212) 521-5450

			
	Email Address:	  	hshecter@reedsmith.com
		  	ksiegel@reedsmith.com
	
	if to CIE:
	
	Caesars Interactive Entertainment, Inc.
	One Caesars Palace Drive
	Las Vegas, Nevada 89109

			
	Facsimile:	  	(702) 892-2616
	Attention:	  	General Counsel

			
	
	with a copy to (which shall not constitute notice):
	
	Latham & Watkins LLP
	650 Town Center Drive, 20th Floor
	Costa Mesa, CA 92626

			
	Facsimile:	  	(714) 755-8290
	Attention:	  	Charles Ruck
		  	Raymond Y. Lin
		  	Michael Treska

			
	Email Address:	  	Charles.Ruck@lw.com
		  	Raymond.Lin@lw.com
		  	Michael.Treska@lw.com

 (b) Governing Law and Dispute Resolution. This Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware, without regard to such state’s choice of law provisions which would require the application of the law of any other jurisdiction. The United States District Court for the Northern District of
Illinois shall have exclusive jurisdiction of all matters arising out of or in connection with this Agreement; provided, however, that nothing in this Agreement shall be deemed a consent or submission by CAC to the jurisdiction of the
Bankruptcy Court for any purpose, including with respect to any disputes under or relating to this Agreement, and the Company and CAC reserve all rights in this regard. 

(c) Counterparts. This Agreement may be executed on two or more separate counterparts (including by means of telecopied or
electronically transmitted (including in .pdf or .tif formats) signature pages), each of which will be an original and all of which taken together will constitute one and the same agreement. 

  
 5 

 (d) Successors and Assigns. Except as otherwise expressly provided in this Agreement,
neither this Agreement nor any of the rights, benefits or obligations hereunder may be assigned by any party (whether by operation of law or otherwise) without the prior written consent of the other parties. Subject to the foregoing, this
Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. 
 (e)
Amendment and Waiver. This Agreement may only be amended, modified, altered or revoked with the prior written consent of the Parties. 

(f) Headings. Section headings used herein are for convenience of reference only and will not be deemed to constitute a part of
this Agreement for any other purpose, or to limit, characterize or in any way affect any provision of this Agreement, and all provisions of this Agreement will be enforced as if such headings had not been included herein. 

(g) No Strict Construction. The parties hereto hereby expressly acknowledge and agree that the language of this Agreement
constitutes the mutual intention and understanding of the parties, and that each party hereto has been represented by competent counsel in connection herewith. Accordingly, each party hereto hereby waives any doctrine of strict construction with
respect to the interpretation hereof or the resolution of any ambiguities herein, and none of the foregoing will be resolved against any party as a result of any such doctrine. 

(h) Complete Agreement. This Agreement and the documents referred to herein contain the entire understanding of the parties hereto with
respect to the transactions contemplated hereby and any prior agreements or understandings, whether oral or written, are entirely superseded hereby. 

(i) Delivery by Facsimile or Electronic Transmission. This Agreement, and any amendments hereto, to the extent signed and delivered by
means of a facsimile machine or other electronic transmission (including email), will be treated in all manner and respects as an original contract and will be considered to have the same binding legal effects as if it were the original signed
version thereof delivered in person. At the request of any party hereto, each other party hereto will re-execute original forms thereof and deliver them to all other parties. No party hereto will raise the use of a facsimile machine or other
electronic transmission (including email or “.pdf” format (or similar format)) to deliver a signature or the fact that this Agreement or any signature was transmitted or communicated through the use of facsimile machine or other electronic
means (including email or “.pdf” format (or similar format)) as a defense to the formation of a contract and each such party forever waives any such defense. 

(j) Severability. Whenever possible, each provision of this Agreement will be interpreted in such manner as to be effective and valid
under applicable Law, but if any provision of this Agreement is held to be prohibited by or invalid under applicable Law, such provision will be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement. 
 (k) Third Party Beneficiaries. Except as set forth herein, nothing
herein expressed or implied is intended or will be construed to confer upon or to give any Person other than the Escrow Agent, the Company and Seller any rights or remedies under or by reason of this Agreement. 

[Remainder of Page Intentionally Left Blank] 

  
 6 

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

  

			
	CAESARS INTERACTIVE ENTERTAINMENT, INC.
		
	By:	 	/s/ Craig J. Abrahams
		 	  

	Name:	 	Craig J. Abrahams
	Title:	 	President
	
	CAESARS ENTERTAINMENT OPERATING COMPANY, INC., on behalf of itself and each of the debtors in the Chapter 11 Cases
		
	By:	 	/s/ Mary E. Higgins
		 	  

	Name:	 	Mary E. Higgins
	Title:	 	CFO
	
	CAESARS ENTERTAINMENT CORPORATION, on behalf of itself and each of its direct and indirect subsidiaries (other than the Company)
		
	By:	 	/s/ Eric Hession
		 	  

	Name:	 	Eric Hession
	Title:	 	CFO
	
	CAESARS ACQUISITION COMPANY, on behalf of itself and each of its direct and indirect subsidiaries
		
	By:	 	/s/ Craig J. Abrahams
		 	  

	Name:	 	Craig J. Abrahams
	Title:	 	CFO

 [Signature page to CIE Proceeds and Reservation of Rights Agreement] 

 Annex A 

CIE Escrow Term Sheet 
 See attached.

 Execution Copy 

Caesars Entertainment Operating Company, Inc. 

Caesars Interactive Entertainment, Inc. CIE Proceeds Escrow Term Sheet 

 

			
	Parties	 	
		
	Debtors	 	Caesars Entertainment Operating Company, Inc. (“CEOC”) and its direct and indirect debtor Subsidiaries
		
	CEC	 	Caesars Entertainment Corporation
		
	CAC	 	Caesars Acquisition Company
		
	The CIE Transaction	 	
		
	CIE Transaction	 	 The transactions contemplated by that certain stock purchase agreement, dated as of July 30, 2016 (the “Purchase
Agreement”), by and between: (i) Caesars Interactive Entertainment, Inc. (“CIE”), an indirect Subsidiary of CAC; (ii) Alpha Frontier Limited (“Purchaser”), backed by a consortium that includes Giant
Investment (HK) Limited, an affiliate of Shanghai Giant Network Technology Co., Ltd.; Yunfeng Capital; China Oceanwide Holdings Group Co., Ltd.; China Minsheng Trust Co., Ltd.; CDH China HF Holdings Company Limited and Hony Capital Fund; and
(iii) solely for certain limited purposes described therein, Caesars Growth Partners, LLC (“CGP”), and CIE Growth, LLC. The CIE Transaction includes, among other things, CIE selling its social and mobile games business to
Purchaser. See Caesars Acquisition Company, Report on Form 8-K, Ex. 99.1 (Aug. 1, 2016).
  

Capitalized terms not defined herein have the meaning set forth in the Purchase Agreement. CIE will convert to a Delaware limited liability company (by
conversion or merger) prior to the completion of the CIE Transaction, so references to “CIE” include post-conversion Caesars Interactive Entertainment, LLC.

		
	CIE Proceeds	 	 All proceeds from the Purchase Price (as defined in and as may be adjusted pursuant to the Purchase Agreement) that are payable to, on behalf
of, or otherwise at the direction of CIE pursuant to the Purchase Agreement, from, or on behalf of, the Purchaser whether at or after the Closing, including the Deposit (but only if, when and to the extent the Deposit is paid to Seller under the
terms of the Purchase Agreement and the Deposit Escrow Agreement), all amounts payable pursuant to Sections 2.05, 2.06, and 2.07 of the Purchase Agreement and any releases payable to or at the direction of CIE from the Escrow Account (as
defined in the Purchase Agreement) (“CIE Proceeds”).
  
 Prior to the
Closing, but subject to the terms of the Purchase Agreement, the Deposit will remain in the account under the Deposit Escrow Agreement subject to the terms of the Deposit Escrow Agreement and the Purchase Agreement.

  
 1 

			
	 Use of CIE Proceeds
  

	CIE Transaction Expenses	 	Set forth on the “Sources and Uses” Exhibit attached hereto, and in any event capped at $65,000,000. “CIE Transaction Expenses” means documented third party transaction costs incurred by CIE in
connection with the CIE Transaction, including, for the avoidance of doubt, Company Transaction Expenses paid pursuant to Section 2.05 of the Purchase Agreement. The CIE Transaction Expenses may be paid directly from the CIE Proceeds to
the applicable payee at the time of Closing (or as soon as practicable thereafter), in either case, pursuant to invoices from such payees, and with periodic reporting to the Debtors. Any portion of the CIE Transaction Expenses amounts not paid
within three business days following the Closing shall be deposited into the CIE Escrow Account.
		
	Management Repurchases	 	 Capped at $640,000,000 plus any applicable employment-related taxes (including any employer-side employment taxes), representing the portion
of amounts payable by CIE or its affiliates from the CIE Proceeds towards the Management Repurchases (the “Management Repurchase Amounts”) with respect to the Purchase Agreement (and not the remaining businesses of CIE), it being
understood that the aggregate amount necessary for the Management Repurchases will exceed such cap but that any such excess will be paid by CIE and not from the CIE Proceeds.
  

“Management Repurchases” means the repurchase or cancellation of all CIE equity interests or equity awards held by individuals who are or were
employees or consultants of CIE (other than any employees or consultants who are also employees or consultants of the Plan Sponsors or any of their affiliates (other than CEC, CAC, Caesars Enterprise Services, LLC or any of their respective
Subsidiaries)) (“CIE Employee Equity”), but not from any other holders of CIE equity interests. The Management Repurchase Amounts will be paid directly from the CIE Proceeds to the holders of CIE Employee Equity (or the applicable
taxing authority) following CIE’s receipt of the CIE Proceeds under the Purchase Agreement (which payments, for the avoidance of doubt, shall be made as, if and when the CIE Proceeds are paid under the Purchase Agreement and shall include
payments (i) as soon as practicable following the Closing from the Closing proceeds, (ii) following CIE’s receipt of any purchase price adjustment under the Purchase Agreement, and (iii) following the release of funds held in the
Escrow Account (as defined in the Purchase Agreement) to CIE).
  
 “Plan
Sponsors” means: (a) Apollo Global Management, LLC, Apollo Management VI, L.P., Apollo Alternative Assets, L.P., Apollo Hamlet Holdings, LLC, Apollo Hamlet Holdings B, LLC; and Apollo Investment Fund VI, L.P.; (b) TPG Capital, L.P., TPG
Global, LLC, TPG Capital Management, L.P., TPG Hamlet Holdings, LLC, TPG Hamlet Holdings B, LLC; and (c) Hamlet Holdings LLC, Con-Invest Hamlet Holdings, Series LLC, Co-Invest Hamlet Holdings B, LLC.

  
 2 

			
	Rock Repurchases	 	Capped at $435,000,000, representing the portion of amounts payable by CIE or its affiliates from the CIE Proceeds towards the Rock Repurchases (the “Rock Repurchase Amount”) with respect to the Purchase Agreement
(and not the remaining businesses of CIE), it being understood that the aggregate amount necessary for the Rock Repurchases will exceed such cap but that any such excess will be paid by CIE and not from the CIE Proceeds. “Rock
Repurchases” means the repurchase of all CIE equity interests held by Rock Gaming Interactive LLC (“Rock Gaming”) (which payments shall be conditioned upon Rock Gaming and its affiliates not raising any objection to the CIE
Transaction and the transactions in connection therewith and contemplated hereunder). The Rock Repurchase Amounts will be paid directly from the CIE Proceeds to Rock Gaming on account of its CIE equity following CIE’s receipt of the CIE
Proceeds under the Purchase Agreement (which payments, for the avoidance of doubt, shall be made as, if and when the CIE Proceeds are paid under the Purchase Agreement and shall include payments (i) as soon as practicable following the Closing
from the Closing proceeds, (ii) following CIE’s receipt of any purchase price adjustment under the Purchase Agreement, and (iii) following the release of funds held in the Escrow Account (as defined in the Purchase Agreement) to CIE).

  
 3 

			
	Tax Amounts	 	 Set forth on the “Sources and Uses” Exhibit attached hereto, and in any event, with respect to clauses (i) and (iii) capped at
$300,000,000. “Tax Amounts” means:
  
 (i) the net income tax
liability of CAC with respect to the CIE Transaction (including the pre-closing Restructuring), after taking into account any available tax attributes of CAC;
  

(ii) with respect to each equityholder of CIE that continues to be an equityholder of CIE following the Closing (other than CIE Growth, LLC) and does not
otherwise receive cash proceeds in an amount sufficient to cover its tax liability in connection with the CIE Transaction (including the pre-closing Restructuring), the net income tax liability of such person with respect to the CIE Transaction
(including the pre-closing Restructuring), calculated as the net taxable income allocable to such person with respect to the CIE Transaction (including the pre-closing Restructuring), multiplied by an assumed tax rate of 40%; provided
that amounts payable pursuant to this clause (ii), if any, (A) to equityholders of CIE (other than Rock), together with the amounts payable pursuant to the Management Repurchases, will not exceed in the aggregate the Management Repurchase
Amount and (B) to Rock, together with the amounts payable pursuant to the Rock Repurchases, will not exceed the Rock Repurchase Amount; and
  

(iii) the corporate income tax liability of CIE with respect to the CIE Transaction (including the pre-closing Restructuring).

 
 Subject to CIE providing to CEOC prior to the Closing reasonable supporting calculations
for the estimated Tax Amounts as of the Closing, at the Closing, $300,000,000 (the “Initial Tax Amount”) will be paid directly to CIE with respect to Tax Amounts, for further payment of Tax Amounts (Y) to CGP and on to CAC (in
the case of (i)) and to the applicable equityholder (in the case of (ii)) or (Z) by CIE (in the case of (iii)), in each case, upon receipt by CIE of reasonable supporting documentation for payment of such Tax Amounts.

 
 Upon filing and/or distribution of the tax returns (by the applicable corporation or
partnership for the entities between and including CIE and CAC) for the taxable period in which the Closing occurs, (i) the actual Tax Amounts will be calculated based on the information set forth in such tax returns, (ii) CIE, CGP and CAC
will provide CEOC with reasonable supporting documentation for such calculation of the applicable net income tax liabilities and such Tax Amounts and (iii) CIE and CAC shall deposit, or cause to be deposited, into the CIE Escrow Account the
excess of the Initial Tax Amount less the aggregate of such calculated Tax Amounts.
  

For the avoidance of doubt, taxes that are required to be withheld and paid over to the applicable tax authorities with respect to the Management Repurchase
Amounts and any corresponding employer-side employment taxes shall be included in the calculation of Management Repurchase Amounts and not in the calculation of Tax Amounts.

  
 4 

			
	South Korea Amounts	 	 Set forth on the “Sources and Uses” Exhibit attached hereto, and in any event capped at $50,000,000 (the “South Korea
Amounts”). During the 60 day period following the Closing, CEOC and CEC will negotiate in good faith on the amounts, timing, conditions and other terms associated with the disbursement and use of the South Korea Amounts in connection
with the proposed casino project in South Korea.
  
 No South Korea amounts will be
disbursed prior to the end of such 60 day period (and then only to the extent and on such terms as are agreed between CEOC and CEC).

		
	CEC Expense Amounts	 	 Set forth on the “Sources and Uses” Exhibit attached hereto, and in any event capped at $200,000,000. “CEC Expense
Amounts” means amounts to be paid to CEC with certification from CEC within 5 business days after payment to CEC that all such amounts have been paid to payees permitted by this paragraph, pursuant to invoices from such payees (which may be
summary invoices or “cover page” invoices, indicating only the service provider, the period covered thereby, the amount invoiced, the date payable and the wire instructions for payment), for the payment of (i) reasonable and documented
third party professional fees (actually incurred or required to be paid in advance pursuant to existing contractual relationships) of advisors to CEC or special committee(s) of the board of directors of CEC for services rendered to CEC or such
special committee(s) and (ii) such other reasonable fees and expenses as may be consented to from time to time by CEOC in its sole discretion.
  

For the avoidance of doubt, CEC Expense Amounts shall in no event include any professional fees of advisors of any Plan Sponsor or any of its affiliates (other
than CEC or its Subsidiaries) or any other advisor in respect of services rendered to any Plan Sponsor or any of its affiliates (other than CEC or its Subsidiaries) or relating to any lobbying efforts with respect to the Trust Indenture Act.

 
 No CEC Expense Amounts shall be paid (i) until at least 60 days after the Closing,
(ii) in excess of $15,000,000 during any thirty day period or (iii) following the commencement of a chapter 11 case with respect to CEC and/or its Subsidiaries (other than CEOC and its Subsidiaries) unless CEOC otherwise agrees in its
sole discretion or there has occurred a CEC Bankruptcy Release Event; provided that the first payment of CEC Expense Amounts, which shall include CEC Expense Amounts that are due and payable as of the Closing, subject to the other terms and
conditions herein, may be increased by an amount up to $20,000,000 to account for such outstanding accrued and unpaid expenses (the “Accrued and Unpaid Amount”).
  

In the event that the Debtors confirm a standalone plan of reorganization, then CEC shall promptly repay all previously paid CEC Expense Amounts to the CIE
Escrow (and no further CEC Expense Amounts will be paid). Further, no CEC Expense Amounts shall be paid unless and until CEOC and CEC have entered into mutually agreeable arrangements pursuant to which CEC provides satisfactory security for (i)
the foregoing repayment obligation and (ii) CEC’s obligation to pay CEOC for Tax Attributes (as defined in, and pursuant to, the CIE Proceeds Agreement).

  
 5 

			
	Recoverable Amount	 	On the date that is 60 days after the Closing (or as soon as practicable, and in any event within three business days, thereafter), but only provided that (i) CEC has received at least $37,000,000 of South Korea Amounts and (ii) CEC
has received the first monthly payment of CEC Expense Amounts, which shall be an amount up to $15,000,000, plus the Accrued and Unpaid Amount, an amount equal to $35,000,000 will be paid to the Debtors from the CIE Proceeds, on behalf of CEC, in
satisfaction of the Recoverable Amount (as defined in the Debtors’ Second Amended Joint Plan of Reorganization Pursuant to Chapter 11 of the Bankruptcy Code [Docket No. 4218], as may be amended, modified, or supplemented from time to
time (the “Plan”)).
		
	CIE Escrow Account	 	 All CIE Proceeds in excess of the sum of (i) the CIE Transaction Expenses that are paid at or within three business days following the
Closing, (ii) Management Repurchase Amounts and Rock Repurchase Amounts that are then payable and (iii) the Initial Tax Amount will be deposited directly into and held in a third party escrow account (the “CIE Escrow
Account”).
  
 Amounts may be distributed from the CIE Escrow Account only:
(i) pursuant to the terms of this Term Sheet and the Escrow Agreement (including, without limitation, for Permitted CIE Escrow Uses (as defined below)), (ii) with the joint written consent of CIE and CEOC, or (iii) pursuant to an
order of a court of competent jurisdiction.
  
 The Debtors, CEC, CGP and CAC will reserve
all rights with respect to the CIE Proceeds held in the CIE Escrow Account in relation to the transactions identified in the Final Report of Examiner, Richard J. Davis (Substantially Unredacted), dated May 16, 2016 [Docket No. 3720].

		
	Caesars Claims	 	“Caesars Claims” means all of the claims in, and causes of action relating to, and all claims against, as applicable, CEC, CAC, CIE and/or their affiliates and Subsidiaries pursuant to, the cases captioned
Caesars Entertainment Operating Company, Inc., et al. v. Caesars Entertainment Corporation, et al., Adv. Pro. No. 16-00522 (ABG) (Bankr. N.D. Ill.).

  
 6 

			
	CAC/CIE Bankruptcy Release Event	 	“CAC/CIE Bankruptcy Release Event” means (a) any (i) Final Order or other final action issued or taken by an appropriate Governmental Authority or (ii) settlement, release or other agreement, in each case that
results in CAC, CIE, Purchaser, the Acquired Companies and their Subsidiaries being fully and finally released from any and all Liability arising out of or relating to the Caesars Claims; (b) a Final Order is entered in any Action with respect
to the Caesars Claims to which CAC, CIE or any of their respective Subsidiaries is a party and such Final Order dismisses the Caesars Claims in full with prejudice in such a manner as to have a preclusive effect on any other Caesars Claims
being pursued or continued against CAC, CIE or any of their respective Subsidiaries; (c) a judgment is entered in any action with respect to the Caesars Claims to which CAC, CIE or any of their respective Subsidiaries is a party and the
judgment becomes a Final Order, and CAC, CIE or any of their respective Subsidiaries satisfies such judgment in full, so that satisfaction of such judgment by CAC, CIE or any of their respective Subsidiaries will have a preclusive effect on any
other Caesars Claims being pursued or continued against CAC, CIE or any of their Subsidiaries; or (d) the substantial consummation (as defined in section 1101 of the Bankruptcy Code) of a plan of reorganization for the CEOC Debtors which provides
that CAC, CIE, the Purchaser, the Acquired Companies and their respective Subsidiaries are fully and finally released from any Liability arising out of or relating to the Caesars Claims; provided that either (i) the time to file a notice of
appeal from the order confirming such plan of reorganization has elapsed without any notice of appeal being filed or (ii) any appeal from the order confirming such plan of reorganization could not have the effect of reversing or rendering
unenforceable either the plan confirmation order in its entirety or the release of any of CAC, CIE, the Purchaser, the Acquired Companies or any of their respective Subsidiaries thereunder from the Caesars
Claims.

  
 7 

			
	CEC Bankruptcy Release Event	 	“CEC Bankruptcy Release Event” means (a) any (i) Final Order or other final action issued or taken by an appropriate Governmental Authority or (ii) settlement, release or other agreement, in each case that results
in CAC, CIE, CEC, Purchaser, the Acquired Companies and their affiliates and Subsidiaries being fully and finally released from any and all Liability arising out of or relating to the Caesars Claims; (b) a Final Order is entered in any Action with
respect to the Caesars Claims to which CAC, CIE, CEC or any of their respective affiliates and Subsidiaries is a party and such Final Order dismisses the Caesars Claims in full with prejudice in such a manner as to have a preclusive effect on any
other Caesars Claims being pursued or continued against CAC, CIE, CEC or any of their respective affiliates or Subsidiaries; (c) a judgment is entered in any action with respect to the Caesars Claims to which CAC, CIE, CEC or any of their
respective affiliates and Subsidiaries is a party and the judgment becomes a Final Order, and CAC, CIE, CEC or any of their respective affiliates and Subsidiaries satisfies such judgment in full, so that satisfaction of such judgment by CAC, CIE,
CEC or any of their respective affiliates and Subsidiaries will have a preclusive effect on any other Caesars Claims being pursued or continued against CAC, CEC or any of their respective affiliates and Subsidiaries; or (d) the substantial
consummation (as defined in section 1101 of the Bankruptcy Code) of a plan of reorganization for the CEOC Debtors which provides that CAC, CIE, CEC, the Purchaser, the Acquired Companies and their respective affiliates and Subsidiaries are fully and
finally released from any Liability arising out of or relating to the Caesars Claims; provided that either (i) the time to file a notice of appeal from the order confirming such plan of reorganization has elapsed without any notice of appeal
being filed or (ii) any appeal from the order confirming such plan of reorganization could not have the effect of reversing or rendering unenforceable either the plan confirmation order in its entirety or the release of any of CAC, CIE, CEC, the
Purchaser, the Acquired Companies or any of their respective affiliates or Subsidiaries thereunder from the Caesars Claims.

  
 8 

			
	CIE Escrow Disbursements	 	Funds may be disbursed from the CIE Escrow Account for the Permitted CIE Escrow Uses in accordance with this Term Sheet and solely on (x) in the case of CEC Expense Amounts, the fifth (5th) day (or the first business day
thereafter if such fifth (5th) day is not a business day on which the Escrow Agent is able to disburse cash), and (y) in the case of any other disbursement, the twentieth (20th) day (or the first business day thereafter if such
twentieth (20th) day is not a business day on which the Escrow Agent is able to disburse cash), following receipt from CIE or CEOC, as applicable (the “Requesting Party”) by the Escrow Agent and the other party (the
“Receiving Party”) of a certified statement (a “Disbursement Notice”), that (a) all terms and conditions set forth in this Term Sheet that are applicable to the payment of such Permitted CIE Escrow Use have
been satisfied and (b) that CEOC, if the Requesting Party is CIE, or CIE, if the Requesting Party is CEOC, has been provided the documentation reflecting the satisfaction of such conditions precedent, and only if prior to such fifth (5th) or
twentieth (20th) day (as the case may be), no Receiving Party has provided notice of objection (each, an “Objection Notice”) to the Escrow Agent, such Requesting Party and the other parties that such conditions have not been
satisfied and/or the amount of the proposed disbursement from the CIE Escrow Account together with a certified statement of such objecting party setting forth with reasonable specificity the conditions that such objecting party asserts have not
been satisfied and/or the calculation of such disputed amount.
		
	Permitted CIE Escrow Uses	 	 “Permitted CIE Escrow Uses” means, with respect to the corresponding Requesting Party as set forth below:

 
 (i) CIE Transaction Expenses, directly to the payees thereof as requested by CIE;

 
 (ii) Tax Amounts as requested by CIE (solely from funds deposited into the CIE Escrow
Account from the Initial Tax Amount in accordance with the terms set forth above), directly to CIE, CAC or the applicable CIE equityholder; provided that such Tax Amounts will be paid by the Escrow Agent promptly upon receipt from CIE of the
applicable Disbursement Notice (without the expiration of the twenty (20) day period described above) regardless of whether CEOC provides an Objection Notice with respect thereto; provided further that in the event that CEOC
provides an Objection Notice and such Tax Amount is determined to be less than the amount set forth in the respective Disbursement Notice, then CIE will promptly deposit into the CIE Escrow Account, cash in an amount of equal to such deficit;

 
 (iii) as requested by CIE, upon receipt of reasonable supporting documentation and
with periodic reporting to the Debtors, any amounts that CIE is required to pay to Purchaser or any Purchaser Indemnified Party pursuant to terms of the Purchase Agreement to the extent such amounts are not satisfied from the Escrow Account,
directly to such payees; provided that such amounts will be paid by the Escrow Agent promptly upon receipt from CIE of the applicable Disbursement Notice (without the expiration of the twenty (20) day period described above) regardless
of whether CEOC provides an Objection Notice with respect thereto; provided further that in the event that CEOC provides an Objection Notice and it is determined the CIE was not required to pay such amounts pursuant to the Purchase
Agreement, then CIE will promptly deposit into the CIE Escrow Account, cash in an amount equal to the amounts so determined not to have been payable;

  
 9 

			
		 	 (iv) as requested by CIE, to the extent, and on the terms, so agreed between CEOC and CEC pursuant to this Term Sheet, South Korea
Amounts;
  
 (v) as requested by CIE, solely from income generated from the CIE
Proceeds while held in the CIE Escrow Account, amounts necessary to pay any income tax liability relating thereto;
  

(vi) as requested by CIE, from time to time on or after the 60th day after the Closing (subject to satisfaction of the conditions set forth in this Term
Sheet), CEC Expense Amounts;
  
 (vii) as requested by CEOC, on the 60th day after the Closing (subject to satisfaction of the conditions set forth in this Term Sheet), the Recoverable Amount;
  

(viii) as requested by CIE, on or after the CAC/CIE Bankruptcy Release Event, all of the then remaining CIE Proceeds that are allocable to CAC or to CGP in
order to pay liabilities of CGP or its subsidiaries (other than distributions to CEC (or any entities between CEC and CGP)) in accordance with the organizational documents of CGP, to the extent not already paid to or on behalf of pursuant to this
Term Sheet, as determined by CIE; and
  
 (ix) as requested by CIE, on or after the
CEC Bankruptcy Release Event, all of the then remaining CIE Proceeds, as determined by CIE.
  

For the avoidance of doubt, Permitted CIE Escrow Uses does not include, and no amounts disbursed from the CIE Escrow (including amounts distributed to CIE
and/or onto CGP that are otherwise in accordance herewith) shall be distributed or otherwise used to make, payments to CEC (or any entity between CEC and CGP) until a CEC Bankruptcy Event, other than South Korea Amounts and CEC Expense Amounts, in
each case, in accordance with this Term Sheet.

		
	Documentation	 	 (i) the CIE Proceeds and Reservation of Rights Agreement, dated as of September 9, 2016 (the “CIE Proceeds Agreement”),
between CEC, CAC, CIE and CEOC, to which this Term Sheet is attached as an Annex; and
  

(ii) an “Escrow Agreement” among Wilmington Trust, National Association (the “Escrow Agent”), CIE and CEOC, governing
the CIE Escrow Account.

  
 10 

 Caesars Interactive Entertainment, Inc. 

Transaction Summary 
 SMG Sale - Sources and Uses

  

					
	 Sources:
	  	 	 
		
	 - Playtika Sale Proceeds
	  	$	4,400	  
		  			
		  			
		  			
		  			
		  			
		  	  
	  
	 
	 Total
	  	$	4,400	  

 

					
	 Uses:
	  	 	 
		
	 - CIE Cash
	  	$	2,710	  
	 - Management Shareholder Proceeds
	  	$	640	  
	 - Rock Proceeds
	  	$	435	  
	 - Taxes
	  	$	300	  
	 - CEC Payments
	  	$	250	  
	 - Transaction Expenses
	  	$	65	  
		  	  
	  
	 
	 Total
	  	$	4,400

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