Document:

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                                                                    Exhibit 10.3

                             2001 RESTATEMENT OF THE

                          HARRAH'S ENTERTAINMENT, INC.

                       EXECUTIVE SUPPLEMENTAL SAVINGS PLAN

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                               TABLE OF CONTENTS

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ARTICLE ONE PREAMBLE ..........................................................1

ARTICLE TWO DEFINITIONS .......................................................1

         2.1      "Account" or "Accounts"......................................1

         2.2      "Affiliate"..................................................1

         2.3      "Beneficiary"................................................1

         2.4      "Board" .....................................................2

         2.5      "Bonus" .....................................................2

         2.6      "Change of Control"..........................................2

         2.7      "Code" ......................................................3

         2.8      "Company"....................................................3

         2.9      "Compensation"...............................................3

         2.10     "DCP" .......................................................3

         2.11     "Deferral Contribution"......................................3

         2.12     "Deferral Contribution Account"..............................3

         2.13     "Deferral Period"............................................3

         2.14     "Disability" or "Disabled"...................................4

         2.15     "Discretionary Contribution".................................4

         2.16     "Discretionary Contribution Account".........................4

         2.17     "EDCP" ......................................................4

         2.18     "EDCP Committee".............................................4

         2.19     "EDCP Investment Committee"..................................4

         2.20     "EDCP Pre-Termination Withdrawal"............................4

         2.21     "EDCP Retirement Account"....................................4

         2.22     "EDCP Termination Account"...................................4

         2.23     "Effective Date".............................................4

         2.24     "Employee"...................................................4

         2.25     "Employer"...................................................4

         2.26     "Enhancement Contribution"...................................5

         2.27     "ERISA" .....................................................5

         2.28     "HRC" .......................................................5

         2.29     "Investment Fund"............................................5

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                               TABLE OF CONTENTS

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         2.30     "Matching Contribution"......................................5

         2.31     "Matching Contribution Account"..............................5

         2.32     "Matching Limit".............................................5

         2.33     "Participant"................................................5

         2.34     "Participation Agreement"....................................5

         2.35     "Pay Status".................................................5

         2.36     "Plan" ......................................................5

         2.37     "Salary" ....................................................5

         2.38     "Savings and Retirement Plan"................................6

         2.39     "Trust Agreement"............................................6

         2.40     "Trust Fund".................................................6

         2.41     "Trustee"....................................................6

         2.42     "Valuation Date".............................................6

         2.43     "Years of Vesting Service"...................................6

ARTICLE THREE ELIGIBILITY .....................................................6

         3.1      Selection Of Participants....................................6

         3.2      Participation Agreement......................................7

         3.3      Revised Participation Agreement..............................8

         3.4      Discontinuance Of Participation..............................8

         3.5      Reemployment.................................................8

         3.6      Adoption By Affiliates.......................................8

ARTICLE FOUR CONTRIBUTIONS ....................................................9

         4.1      Participant Contributions....................................9

         4.2      Matching Contributions.......................................9

         4.3      Change In Contributions.....................................10

         4.4      Suspension Of Contributions.................................10

         4.5      Transferred Contributions...................................11

         4.6      Discretionary Contributions.................................12

         4.7      Enhancement Contributions...................................12

ARTICLE FIVE WITHDRAWALS .....................................................13

         5.1      Acceleration Of Benefits....................................13

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                               TABLE OF CONTENTS

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         5.2      Account Adjustments.........................................14

         5.3      Limitation On Distributions.................................14

         5.4      In-Service Withdrawals for EDCP Transfers...................15

ARTICLE SIX CREDITING OF CONTRIBUTIONS AND INCOME.............................16

         6.1      Account Allocations.........................................16

         6.2      Subaccounts.................................................16

         6.3      Hypothetical Investment Funds...............................16

         6.4      Investment Direction........................................16

         6.5      Rate of Return..............................................16

         6.6      Application to Beneficiaries................................17

         6.7      EDCP Investment Committee...................................17

ARTICLE SEVEN VESTING ........................................................18

         7.1      Vesting Of Benefits.........................................18

         7.2      Changes In Vesting Schedule.................................19

ARTICLE EIGHT PAYMENT OF BENEFITS.............................................19

         8.1      Time Of Payment.............................................19

         8.2      Method Of Payments..........................................19

         8.3      Beneficiary Designations....................................21

         8.4      Limitation On Distributions.................................21

         8.5      Withholding and Payroll Taxes...............................21

ARTICLE NINE ADMINISTRATION OF THE PLAN.......................................22

         9.1      Adoption Of Trust...........................................22

         9.2      Powers Of The EDCP Committee................................22

         9.3      Creation Of Committee.......................................22

         9.4      Appointment Of Agents.......................................23

         9.5      Majority Vote And Execution Of Instruments..................23

         9.6      Allocation Of Responsibilities..............................23

         9.7      Conflict Of Interest........................................23

         9.8      Indemnification.............................................23

         9.9      Action Taken By Employer....................................23

         9.10     Fiduciary Authority.........................................23

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                               TABLE OF CONTENTS

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         9.11     Participant Statements......................................23

ARTICLE TEN CLAIM REVIEW PROCEDURE............................................24

         10.1     General ....................................................24

         10.2     Appeals ....................................................24

         10.3     Notice Of Denials...........................................25

ARTICLE ELEVEN LIMITATION ON ASSIGNMENT; PAYMENTS TO
  LEGALLY INCOMPETENT DISTRIBUTEE.............................................25

         11.1     Anti-Alienation Clause......................................25

         11.2     Permitted Arrangements......................................25

         11.3     Payment To Minor Or Incompetent.............................25

ARTICLE TWELVE AMENDMENT, MERGER AND TERMINATION..............................25

         12.1     Amendment...................................................25

         12.2     Merger Or Consolidation Of Company..........................26

         12.3     Termination Of Plan Or Discontinuance Of Contributions......26

         12.4     Continuation of Plan Following A Change of Control..........26

         12.5     Limitation Of Company's Liability...........................26

ARTICLE THIRTEEN GENERAL PROVISIONS...........................................27

         13.1     Limitation Of Rights........................................27

         13.2     Construction................................................27

         13.3     Status Of Participants As Unsecured Creditors...............27

         13.4     Status Of Trust Fund........................................27

         13.5     Funding Upon A Change Of Control............................28

         13.6     No Liability For Acceleration Of Payments...................28

         13.7     Uniform Administration......................................28

         13.8     Heirs And Successors........................................28

         13.9     Electronic Administration...................................28

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                             2001 RESTATEMENT OF THE
                          HARRAH'S ENTERTAINMENT, INC.
                       EXECUTIVE SUPPLEMENTAL SAVINGS PLAN

                                  ARTICLE ONE
                                    PREAMBLE

         HARRAH'S ENTERTAINMENT, INC., a corporation organized and existing
under the laws of the State of Delaware (the "Company"), adopted the Harrah's
Entertainment, Inc. Executive Supplemental Savings Plan (the "Plan") in order to
provide key executives with an opportunity and incentive to save for retirement
and other purposes. The Plan is hereby amended and restated effective April 1,
2001, to permit discretionary contributions, to delegate certain amendment
authority, to remove the restrictions on installment payments and to make
certain other changes.

         The purpose of this Plan is to provide a select group of management or
highly compensated employees of the Company and certain of its affiliates with
the opportunity to defer a portion of their compensation and to receive
contributions from their employers. As a result, the Plan shall be considered a
"top hat plan", exempt from many of the requirements of the Employee Retirement
Income Security Act of 1974 ("ERISA"). This Plan is not intended to "qualify"
for favorable tax treatment pursuant to Section 401(a) of the Internal Revenue
Code of 1986 (the "Code") or any successor section or statute.

                                  ARTICLE TWO
                                   DEFINITIONS

         When a word or phrase appears in this Plan with the initial letter
capitalized, and the word or phrase does not begin a sentence, the word or
phrase shall generally be a term defined in this Article Two or in the Preamble.
The following words and phrases used in the Plan with the initial letter
capitalized shall have the meanings set forth in this Article Two, unless a
clearly different meaning is required by the context in which the word or phrase
is used:

         2.1 "ACCOUNT" or "ACCOUNTS" means the accounts which may be maintained
by the EDCP Committee to reflect the interest of a Participant or the
Beneficiary of a deceased Participant under the Plan.

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         2.2 "AFFILIATE" means (a) a corporation which is a member of the same
controlled group of corporations (within the meaning of Section 414(b) of the
Code) as is the Company, (b) any other trade or business (whether or not
incorporated) controlling, controlled by, or under common control (within the
meaning of Section 414(c) of the Code) with the Company, and (c) any other
corporation, partnership, or other organization which is a member of an
affiliated service group (within the meaning of Section 414(m) of the Code) with
the Company or which is otherwise required to be aggregated with the Company
pursuant to Section 414(o) of the Code.

         2.3 "BENEFICIARY" means the person or trust that a Participant, in his
most recent written designation filed with the EDCP Committee, shall have
designated to receive his benefit under the Plan in the event of his death or,
if applicable, the person or entity determined in accordance with Section 8.3
(BENEFICIARY DESIGNATIONS).

         2.4 "BOARD" means the Board of Directors of the Company.

         2.5 "BONUS" means the incentive payment or payments earned by a
Participant during a Deferral Period pursuant to the Company's Annual Management
Bonus Plan, the Company's Senior Executive Incentive Plan and/or the Company's
Player Development Bonus Program, as such plans may be amended from time to
time, and those short-term cash incentive plans that are approved by the EDCP
Committee or its delegate, the Senior Vice President of Human Resources.

         2.6 "CHANGE OF CONTROL" means and includes each of the following:

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         (a) Any "person" (as such term is used in Section 13(d) and 14(d) of
the Securities Exchange Act of 1934, as amended (the "Exchange Act")), other
than an employee benefit plan of the Company, or a trustee or other fiduciary
holding securities under an employee benefit plan of the Company, is or becomes
the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act),
directly or indirectly, of 25% or more of the Company's then outstanding voting
securities carrying the right to vote in elections of persons to the Board,
regardless of comparative voting power of such voting securities, and regardless
of whether or not the Board shall have approved the acquisition of such
securities by the acquiring person; or

         (b) During any period of two consecutive years, individuals who, at the
beginning of such period, constitute the Board together with any new director(s)
(other than a director designated by a person who shall have entered into an
agreement with the Company to effect a transaction described in clauses (i) or
(iii) of this Subsection) whose election by the Board or nomination for election
by the Company's stockholders was approved by a vote of at least two-thirds of
the directors then still in office who either were directors at the beginning of
the two year period or whose election or nomination for election was previously
so approved, cease for any reason to constitute a majority thereof; or

         (c) The holders of securities of the Company entitled to vote thereon
approve the following:

                  (1) A merger or consolidation of the Company with any other
         corporation regardless of which entity is the surviving company, other
         than a merger or consolidation which would result in the voting
         securities of the Company carrying the right to vote in elections of
         persons to the Board outstanding immediately prior thereto continuing
         to represent (either by remaining outstanding or by being converted
         into voting securities of the surviving entity) at least 80% of (a) the
         Company's then outstanding voting securities carrying the right to vote
         in elections of persons to the Board, or (b) the voting securities of
         such surviving entity outstanding immediately after such merger or
         consolidation, or

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                  (2) A plan of complete liquidation of the Company or an
         agreement for the sale or disposition by the Company of all or
         substantially all of the Company's assets.

         (d) Notwithstanding the definition of a "Change of Control" of the
Company as set forth in this Section 2.6, the HRC shall have full and final
authority, which shall be exercised in its discretion, to determine conclusively
whether a Change of Control of the Company has occurred, and the date of the
occurrence of such Change of Control and any incidental matters relating
thereto, with respect to a transaction or series of transactions which have
resulted or will result in a substantial portion of the assets or business of
the Company (as determined, prior to the transaction or series of transactions,
by the HRC in its sole discretion which determination as to whether a
substantial portion is involved shall be final and conclusive) being held by a
corporation at least 80% of whose voting securities are held, immediately
following such transaction or series of transactions, by holders of the voting
securities of the Company (as determined by the HRC in its sole discretion prior
to such transaction or series of transactions which determination as to whether
the 80% amount will be satisfied shall be final and conclusive). The HRC may
exercise any such discretionary authority without regard to whether one or more
of the transactions in such series of transactions would otherwise constitute a
Change in Control of the Company under the definition set forth in this
Section 2.6.

         2.7 "CODE" means the Internal Revenue Code of 1986, as amended.

         2.8 "COMPANY" means Harrah's Entertainment, Inc.

         2.9 "COMPENSATION" means, for each Deferral Period, the total Salary
paid to the Participant and the Bonus earned by the Participant.

         2.10 "DCP" means Harrah's Entertainment, Inc. Deferred Compensation
Plan, as it may be amended from time to time.

         2.11 "DEFERRAL CONTRIBUTION" means a contribution by a Participant
pursuant to Section 4.1 (PARTICIPANT CONTRIBUTIONS) of this Plan.

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         2.12 "DEFERRAL CONTRIBUTION ACCOUNT" means the Account maintained to
record the Deferral Contributions made by a Participant pursuant to Section 4.1
(PARTICIPANT CONTRIBUTIONS), as adjusted to reflect the rate of return on the
hypothetical Investment Funds selected by the Participant in accordance with
Section 6.4 (INVESTMENT DIRECTION) and other credits or charges called for by
this Plan.

         2.13 "DEFERRAL PERIOD" means, generally, the 12 month period beginning
on each January 1 and ending on the next following December 31. The initial
Deferral Period shall commence as soon as administratively feasible after the
Effective Date and shall end on the next following December 31. With respect to
Participants who enter the Plan after the Effective Date, the initial Deferral
Period shall commence on the date the Participant is notified of his eligibility
to participate in the Plan in accordance with Section 3.1 (SELECTION OF
PARTICIPANTS) and shall end on the next following December 31.

         2.14 "DISABILITY" or "DISABLED" means, for purposes of this Plan, that
the Participant qualifies to receive long term disability payments under the
Employer's long term disability insurance program, as it may be amended from
time to time.

         2.15 "DISCRETIONARY CONTRIBUTION" means an Employer contribution
determined in accordance with Sections 4.6 or 4.7 of this Plan, which may, in
the discretion of the Employer, be transferred to the Trust.

         2.16 "DISCRETIONARY CONTRIBUTION ACCOUNT" means the Account maintained
to record the Discretionary Contributions calculated in accordance with Section
4.6 (other than Enhancement Contributions) on behalf of a Participant, as
adjusted to reflect the rate of return on the hypothetical Investment Funds
selected by the Participant in accordance with Section 6.4 and other credits or
charges called for by this Plan. A Participant's Discretionary Contribution
Account may be divided into sub-accounts as determined by the EDCP Committee.

         2.17 "EDCP" means the Harrah's Entertainment, Inc. Executive Deferred
Compensation Plan, as it may be amended from time to time.

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         2.18 "EDCP COMMITTEE" means the committee designated in accordance with
Section 9.3 (CREATION OF COMMITTEE) to carry out the administrative
responsibilities under the Plan.

         2.19 "EDCP INVESTMENT COMMITTEE" means the committee that has the
responsibility for selecting and monitoring performance of the Investment Funds.

         2.20 "EDCP PRE-TERMINATION WITHDRAWAL" has the same meaning as it does
under the EDCP.

         2.21 "EDCP RETIREMENT ACCOUNT" has the same meaning as it does under
the EDCP.

         2.22 "EDCP TERMINATION ACCOUNT" has the same meaning as it does under
the EDCP.

         2.23 "EFFECTIVE DATE" means April 1, 2001. With respect to each
Affiliate that adopts this Plan after April 1, 2001, the term "Effective Date"
means the date designated by the adopting Affiliate.

         2.24 "EMPLOYEE" means any individual classified by an Employer as a
common law employee of the Employer. For this purpose, the classification that
is relevant is the classification in which such individual is placed by the
Employer for purposes of this Plan and the classification of such individual for
any other purpose (e.g., employment tax or withholding purposes) shall be
irrelevant. If an individual is characterized as a common law employee of the
Employer by a governmental agency or court but not by the Employer, such
individual shall be treated as an employee who has not been designated for
participation in this Plan.

         2.25 "EMPLOYER" means the Company and any Affiliate that has adopted
this Plan pursuant to Section 3.6 (ADOPTION BY AFFILIATES).

         2.26 "ENHANCEMENT CONTRIBUTION" means the specific Discretionary
Contribution determined in accordance with Section 4.7 of this Plan, which may,
in the discretion of the Employer, be transferred to the Trust.

         2.27 "ERISA" means the Employee Retirement Income Security Act of 1974,
as amended from time to time.

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         2.28 "HRC" means the Human Resources Committee of the Board.

         2.29 "INVESTMENT FUND" means the hypothetical investment fund or funds
established by the EDCP Investment Committee pursuant to Section 6.4 (INVESTMENT
DIRECTION).

         2.30 "MATCHING CONTRIBUTION" means an Employer contribution calculated
in accordance with Section 4.2 (MATCHING CONTRIBUTIONS) of this Plan, which may,
in the discretion of the Employer, be transferred to the Trust.

         2.31 "MATCHING CONTRIBUTION ACCOUNT" means the Account maintained to
record the Matching Contributions calculated in accordance with Section 4.2
(MATCHING CONTRIBUTIONS) on behalf of a Participant, as adjusted to reflect the
rate of return on the hypothetical Investment Funds selected by the Participant
in accordance with Section 6.4 (INVESTMENT DIRECTION) and other credits or
charges called for by this Plan.

         2.32 "MATCHING LIMIT" means the designated percentage of compensation
of Participant contributions to the Savings and Retirement Plan that are
eligible for a matching contribution under the Savings and Retirement Plan.

         2.33 "PARTICIPANT" means any Employee who has been selected for
participation in the Plan. The term "Participant" also shall include former
Participants whose benefits under the Plan have not been fully distributed
pursuant to the provisions of the Plan.

         2.34 "PARTICIPATION AGREEMENT" means the written agreement to defer
Salary and/or Bonus submitted by a Participant to the EDCP Committee in
accordance with Section 3.2 (PARTICIPATION AGREEMENT) or Section 3.3 (REVISED
PARTICIPATION AGREEMENT).

         2.35 "PAY STATUS" means, with respect to an EDCP Pre-Termination
Withdrawal, that payments from the EDCP have commenced.

         2.36 "PLAN" means the Harrah's Entertainment, Inc. Executive
Supplemental Savings Plan, as it may be amended from time to time.

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         2.37 "SALARY" means the annual base salary paid to the Participant by
the Employer during the Deferral Period, before reduction for amounts deferred
pursuant to this Plan, the Savings and Retirement Plan, any plan maintained
under Section 125 of the Code or any other plan maintained by the Company or an
Employer. Salary does not include expense reimbursements, salary continuation
payments except as otherwise provided by an employment agreement or separation
agreement, or any form of non-cash compensation and benefits.

         2.38 "SAVINGS AND RETIREMENT PLAN" means the Harrah's Entertainment,
Inc. Savings and Retirement Plan, as it may be amended from time to time.

         2.39 "TRUST AGREEMENT" means that certain trust agreement established
pursuant to the Plan between the Company and the Trustee or any trust agreement
hereafter established, the provisions of which are incorporated herein by
reference.

         2.40 "TRUST FUND" means all assets of whatsoever kind or nature held
from time to time by the Trustee pursuant to the Trust Agreement and forming a
part of this Plan, without distinction as to income and principal and without
regard to source, I.E., Employer or Participant contributions or earnings.

         2.41 "TRUSTEE" means the Trustee under the Trust Agreement.

         2.42 "VALUATION DATE" means the date for valuing the hypothetical
Investment Funds maintained under the Plan, which shall be each business day of
the Deferral Period.

         2.43 "YEARS OF VESTING SERVICE" means the years of service credited to
an individual for vesting purposes under the Savings and Retirement Plan,
determined in accordance with all applicable provisions of the Savings and
Retirement Plan.

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                                  ARTICLE THREE
                                   ELIGIBILITY

         3.1 SELECTION OF PARTICIPANTS.

         (a) GENERAL. For purposes of Title I of ERISA, the Plan is intended to
be an unfunded plan of deferred compensation covering a select group of
management or highly compensated employees. As a result, participation in the
Plan shall be limited to Employees employed in a position classified by the
Company as a Director-level position or above, and any other Employees employed
by an Employer who are selected for participation in the Plan by the EDCP
Committee. To further ensure compliance with the ERISA participation
requirements applicable to this Plan, the Company, in the exercise of its
discretion, may exclude from participation in the Plan an individual who
otherwise meets the requirements this Section 3.1(a) for any reason, or for no
reason, as the Company deems to be appropriate.

         (b) ENTRY INTO PLAN. Employees who are eligible to participate in the
Plan as of the initial Effective Date shall enter the Plan as soon as
administratively feasible following such Effective Date. Employees who become
eligible to participate in the Plan after the initial Effective Date shall enter
the Plan as of the first day of the first payroll period commencing in the
Deferral Period next following the Employee's notification of his eligibility to
participate in the Plan. Notwithstanding the foregoing, the EDCP Committee may,
in its discretion, waive the Plan entry provision set forth in the preceding
sentence and permit an Employee to enter the Plan as of the first day of any
payroll period commencing during a particular Deferral Period or, solely with
respect to a Discretionary Contribution or Enhancement Contribution, as of any
day selected by the EDCP Committee.

         (c) NO WAITING PERIODS. A Participant need not complete any particular
period of service in order to be eligible to make Deferred Contributions or to
receive Discretionary Contributions (other than the second Enhancement
Contribution as provided in Section 4.7(b)). In order to receive Matching
Contributions for a Deferral Period, however, a Participant also must be
eligible to receive matching contributions under the Savings and Retirement Plan
for that

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Deferral Period, as determined in accordance with the provisions of the Savings
and Retirement Plan.

         3.2 PARTICIPATION AGREEMENT.

         (a) CONTENT OF PARTICIPATION AGREEMENT. Each Participant shall execute
a Participation Agreement evidencing his election to participate in the Plan in
the manner and at such time as the EDCP Committee shall require. In the
Participation Agreement, the Participant shall select the amount or rate of
Deferral Contributions and authorize the reduction of the Participant's
Compensation in an amount equal to his Deferral Contributions. The Participant
also shall select in the Participation Agreement the form in which distributions
are to be made from the Participant's Accounts (I.E., lump sums, installment
payments). The Participation Agreement also may set forth such other information
as the EDCP Committee shall require. The Participation Agreement made by the
Participant shall remain in full force and effect until such time as it is
amended or replaced, or the Participant's participation in this Plan terminates.

         (b) TIMING REQUIREMENTS.

                  (1) ENTRY ON INITIAL EFFECTIVE DATE. If a Participant is
         eligible to participate in the Plan as of the initial Effective Date
         and the Participant's initial Participation Agreement is completed and
         delivered within 30 days of the Effective Date, the Participant's
         Deferral Contributions may be determined with reference to Compensation
         earned on or after the first day of the first full payroll period next
         following receipt of the Participation Agreement by the EDCP Committee
         or as of such other uniform date (not earlier than the first day of the
         next full payroll period) as may be designated by the EDCP Committee.

                  (2) ENTRY AFTER INITIAL EFFECTIVE DATE. If the Participant
         does not execute and deliver a Participation Agreement within the
         initial 30 day period, or the Participant is notified that he is
         eligible to participate in the Plan as of the beginning of any Deferral
         Period commencing after the

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         Effective Date, the Participant's Deferral Contributions may be
         determined with reference to Compensation earned on or after the first
         day of the first full payroll period in any later Deferral Period if
         the Participant executes and delivers a Participation Agreement to the
         EDCP Committee at least 30 days (or such other period specified by the
         EDCP Committee pursuant to rules of uniform application) prior to the
         first day of such Deferral Period.

                  (3) EXCEPTIONS. If a Participant is permitted to enter the
         Plan during a Deferral Period, his Participation Agreement must be
         completed and delivered in accordance with the rules and procedures
         adopted by the EDCP Committee for such purpose. Such Participation
         Agreement shall be effective with reference to Compensation earned on
         or after the effective date of the Participation Agreement, as
         determined by the EDCP Committee.

         3.3 REVISED PARTICIPATION AGREEMENT. A Participant may file a new
Participation Agreement to change a previously filed election. If the
Participant changes the amount of his Deferral Contributions, the new amount
will become effective in accordance with Section 4.3 (CHANGE IN CONTRIBUTIONS).
If the new Participation Agreement changes the form of payment, the benefit
payment provisions of the new Participation Agreement will be honored only if
payments commence at least thirteen months after the date on which the new
Participation Agreement is completed and delivered except as provided in Section
8.2(c). In the exercise of its discretion, the EDCP Committee may allow a
Participant to make a modified election in any manner prescribed by the EDCP
Committee for that purpose.

         3.4 DISCONTINUANCE OF PARTICIPATION. Once an Employee is designated as
a Participant, he will continue as such for all future Deferral Periods unless
and until (a) the Participant terminates from employment with the Employer and
all Affiliates and receives a full distribution of his Accounts, (b) is no
longer categorized as an individual entitled to participate in the Plan pursuant
to Section 3.1 (SELECTION OF PARTICIPANTS) above, or (c) the HRC specifically
acts to discontinue the Participant's participation. The HRC may discontinue a
Participant's participation in the Plan at any time for any or

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no reason. If a Participant's participation is discontinued, the Participant
will no longer be eligible to make Deferral Contributions. The Participant will
not be entitled to receive a distribution, however, until the occurrence of one
of the events listed in Article Five (WITHDRAWALS) or Article Eight (PAYMENT OF
BENEFITS), unless the HRC, in the exercise of its discretion, directs that a
distribution be made as of an earlier date in which case the Participant's
Accounts shall be distributed on the same basis as if the Participant's
employment had been terminated.

         3.5 REEMPLOYMENT. If a former Participant is rehired by an Employer and
is eligible to participate in the Plan, he shall reenter the Plan on the same
basis as a newly eligible Employee in accordance with the provisions of Section
3.1 (SELECTION OF PARTICIPANTS). Such Employee's reentry into the Plan shall
have no impact on any distributions that have been made or are being made in
accordance with Article Eight (PAYMENT OF BENEFITS). Any amounts previously
forfeited from the Participant's Accounts pursuant to Section 7.1 (VESTING OF
BENEFITS) shall not be restored or reinstated upon the Participant's subsequent
reentry into the Plan.

         3.6 ADOPTION BY AFFILIATES. Any Affiliate of the Company may adopt this
Plan with the approval of the EDCP Committee. Any Affiliate that permits an
individual to make Deferral Contributions pursuant to Section 4.1 (PARTICIPANT
CONTRIBUTIONS) shall be deemed to have adopted the Plan without any further
action. The EDCP Committee's acceptance of such Deferral Contributions shall
evidence the consent of the EDCP Committee to the adoption of the Plan by the
Affiliate. Notwithstanding the foregoing, at the request of the EDCP Committee,
the Affiliate shall evidence its adoption of the Plan by an appropriate
resolution of its Board of Directors or in such other manner as may be
authorized by the EDCP Committee. By adopting this Plan, the Affiliate shall be
deemed to have agreed to make the contributions called for by Article Four
(CONTRIBUTIONS), agreed to comply with all of the other terms and provisions of
this Plan, delegated to the EDCP Committee the power and responsibility to
administer this Plan with respect to the Affiliate's employees, and delegated to
the Company the full power to amend or terminate this Plan with respect to the
Affiliate's employees.

                                       12
<Page>

                                  ARTICLE FOUR
                                  CONTRIBUTIONS

         4.1 PARTICIPANT CONTRIBUTIONS.

         (a) SALARY DEFERRAL CONTRIBUTIONS. A Participant may elect to defer a
maximum of 16% of the Salary otherwise payable to him during the Deferral
Period, or such other maximum amount as may be prescribed by the EDCP Committee
as the Salary Deferral Contribution limit for all Participants or pursuant to
subsection (c).

         (b) BONUS DEFERRAL CONTRIBUTIONS. A Participant may elect to defer a
maximum of 90% of any Bonus earned by him during the Deferral Period (which may
be paid during the applicable Deferral Period or after the close of the
applicable Deferral Period), or such other maximum amount as may be prescribed
by the EDCP Committee as the Bonus Deferral Contribution limit for all
Participants or pursuant to subsection (c). Notwithstanding the foregoing, for
purposes of calculating the maximum Bonus Deferral Contributions for the initial
Deferral Period beginning on the Effective Date, the Bonus earned by the
Participant during the entire 2001 calendar year shall be taken into account.

         (c) The EDCP Committee may, in its discretion, permit an individual
Participant to make Deferral Contributions in excess of the limitations set
forth in or established in accordance with this Section 4.1 or place additional
restrictions on an individual Participant's Deferral Contributions. All Deferral
Contributions under this Plan shall be made in accordance with such rules and
procedures regarding Participant deferrals as may be promulgated by the EDCP
Committee from time to time. All Participant elections are subject to the timing
requirements set forth in Section 3.2(b) (PARTICIPATION AGREEMENT - TIMING
REQUIREMENTS) and shall remain in effect until replaced or revised in accordance
with Section 3.3 (REVISED PARTICIPATION AGREEMENT).

         4.2 MATCHING CONTRIBUTIONS.

         (a) Each Employer shall make a Matching Contribution on behalf of each
of its Participants who has elected to make Salary Deferral Contributions during
the Deferral Period under

                                       13
<Page>

Section 4.1 (PARTICIPANT CONTRIBUTIONS) and is eligible to receive a matching
contribution under the Savings and Retirement Plan. No Matching Contributions
shall be made with respect to Bonus Deferral Contributions. The Matching
Contribution shall be credited to each eligible Participant's Matching
Contribution Account as of the year-end Valuation Date or date of termination.

         (b) The Matching Contribution for each eligible Participant shall equal
the difference between

                  (1) the sum of

                           (A) 100% of the Participant's contributions to the
                  Savings and Retirement Plan for its plan year coinciding with
                  the Deferral Period plus

                           (B) 100% of the Participant's Salary Deferral
                  Contributions in the Deferral Period,

                  up to the Matching Limit as applied to the Participant's
         Salary less

                  (2) the Employer's matching contribution for such Participant
         under the Savings and Retirement Plan.

         4.3 CHANGE IN CONTRIBUTIONS.

         (a) A Participant may change the amount or percentage of Deferral
Contributions under Section 4.1 (PARTICIPANT CONTRIBUTIONS) prior to the
beginning of any Deferral Period. Any and all changes in Deferral Contributions
made pursuant to this Section 4.3 shall be made in accordance with rules
promulgated by the EDCP Committee.

         (b) Any change in the amount or percentage of the Deferral Contribution
to be made from any Salary shall be effective with reference to Salary earned on
or after the first day of the first full payroll period of the next following
Deferral Period. Any change in the amount or percentage of the Deferral
Contribution to be made from any Bonus shall be effective for Bonuses earned in
the first Deferral Period immediately following the EDCP Committee's receipt of
such revised Participation Agreement. The EDCP Committee may, in its discretion,
determine that special circumstances exist and

                                       14
<Page>

permit a Participant to change the amount of his Bonus Deferral Contributions
during the Deferral Period, but in no event shall the change in the Bonus
Deferral Contributions be made later than the last day of the Deferral Period.

         (c) A Participant's election to make no Deferral Contributions to the
Plan during one or more Deferral Periods shall not affect his continued
participation in the Plan or his ability to resume his Deferral Contributions to
the Plan in the future.

         4.4 SUSPENSION OF CONTRIBUTIONS.

         (a) SUSPENSION. A Participant may suspend his contributions under
Section 4.1 as of the first day of any full payroll period in the Deferral
Period, by giving appropriate notice to the EDCP Committee at least 30 days (or
such other period specified by the EDCP Committee pursuant to rules of uniform
application) prior to the date on which the suspension shall become effective.
Any such suspension shall remain in effect for the remainder of the Deferral
Period during which the suspension begins and the entire next following Deferral
Period.

         (b) RESUMPTION OF CONTRIBUTIONS. A Participant who has suspended his
contributions pursuant to paragraph (a) above and who applies to the EDCP
Committee in a timely manner shall be entitled to resume his contributions with
respect to Compensation earned beginning on the first day of the first full
payroll period in the Deferral Period next following the expiration of the
suspension as set forth in paragraph (a) above. Any application to resume
contributions shall be made in the form of a revised Participation Agreement and
shall comply with all procedures promulgated by the EDCP Committee pursuant to
Section 3.3 (REVISED PARTICIPATION AGREEMENT).

         4.5 TRANSFERRED CONTRIBUTIONS.

         (a) General.

                                       15
<Page>

                  (1) DCP AND EDCP TRANSFERS. A Participant may make an
         irrevocable election, with the consent of the EDCP Committee and in
         accordance with the procedures promulgated by the EDCP Committee for
         such purpose, to transfer all or a portion of his accumulated account
         balance under the EDCP or the DCP to this Plan. Any account balance
         transfers to this Plan from either the EDCP or the DCP shall include
         the vested and non-vested portions of the Participant's account under
         such Plan. In general, all amounts transferred to this Plan from the
         EDCP or the DCP shall be subject to all of the terms and provisions of
         this Plan, including, specifically, the vesting, earnings crediting and
         payment provisions of this Plan. In general, the elective deferral
         account balance and the employer matching contribution account balance
         which are transferred from the EDCP and DCP pursuant to this Section
         4.5 shall be allocated among the affected Participant's Deferral
         Contribution Account and Matching Contribution Account, respectively.
         Amounts transferred from the EDCP or the DCP to this Plan pursuant to
         this Section 4.5 may not be transferred from this Plan to the EDCP or
         DCP.

                  (2) CERTAIN DEFERRED COMPENSATION AGREEMENTS. An Employee who
         has a deferred compensation agreement with Harrah's Club (which has
         been succeeded to by Harrah's Operating Company, Inc. by merger) may,
         upon written agreement with Harrah's Operating Company, Inc., transfer
         the account balance of such deferred compensation agreement including
         accrued interest to the Plan. Upon such transfer, the transferred
         amount will be fully vested and shall be subject to all of the terms
         and provisions of the Plan including, specifically, earnings crediting
         and payment provisions.

         (b) ENHANCEMENT PROGRAM. During the time period approved by the chief
financial officer of the Company, an individual who is a participant in the EDCP
may elect to transfer all or a portion of his EDCP Termination Account balance
to this Plan pursuant to the requirements of this subsection (b) and have the
opportunity to receive an Enhancement Contribution.

                                       16
<Page>

                  (1) ELIGIBILITY. This election is only available to an
         individual participating in the EDCP who (A) is either a Participant or
         eligible to be a Participant in this Plan, (B) is employed by an
         Employer at the time of the election and (C) as of the date of his
         election, will not be eligible for his EDCP Retirement Account under
         the terms of the EDCP for five or more years.

                  (2) TRANSFERS. Each individual must elect to transfer to the
         Plan all of his EDCP Termination Account balance, including all amounts
         credited towards EDCP Pre-Termination Withdrawals that are not in Pay
         Status on the date of the election. If the individual has an EDCP
         Pre-Termination Withdrawal in Pay Status under the EDCP on the date of
         the election, he must elect to transfer to the Plan all of his EDCP
         Termination Account balance, including all amounts credited towards
         EDCP Pre-Termination Withdrawals that are not in Pay Status. However,
         any amount credited towards an EDCP Pre-Termination Withdrawal that is
         in Pay Status at the time of the election will remain in the EDCP
         (subject to the terms of the EDCP) and will not be transferred to this
         Plan.

                  (3) VESTING. All amounts transferred from a Participant's EDCP
         Termination Account under this subsection (b) will be credited to the
         Participant's Deferral Account and will be 100% vested.

         4.6 DISCRETIONARY CONTRIBUTIONS. With the approval of the EDCP
Committee, each Employer, in its sole discretion, may make a Discretionary
Contribution on behalf of such Participants as it designates. Enhancement
Contributions, which are described in Section 4.7, are Discretionary
Contributions. Except as provided in Section 4.7, the amount of the
Discretionary Contribution will be determined by the Employer in its sole
discretion and approved by the EDCP Committee. Except for Enhancement
Contributions, all Discretionary Contributions will be credited to the
Discretionary Contribution Account as of the time designated by the Employer or
the EDCP Committee. Discretionary Contributions may be subject to additional
requirements, including vesting and in-service withdrawal

                                       17
<Page>

limitations, as established by the Company or the EDCP Committee.

         4.7 ENHANCEMENT CONTRIBUTIONS. Participants who make a valid election
pursuant to Section 4.5(b) will receive a special Discretionary Contribution
called an Enhancement Contribution as provided in this Section. The Enhancement
Contribution may be made in two parts, as described below.

                  (a) INITIAL ENHANCEMENT CONTRIBUTION.

                           (1) ELIGIBILITY. Each Participant who makes a valid
                  election pursuant to Section 4.5(b) will be credited with an
                  initial Enhancement Contribution.

                           (2) TIMING. The initial Enhancement Contribution,
                  determined as described in subsection (a)(3), will be credited
                  to the Participant's Deferral Account as of the effective date
                  of the transfer to the Plan of the Participant's EDCP
                  Termination Account.

                           (3) AMOUNT. Except as provided below, the initial
                  Enhancement Contribution will be an amount equal to the
                  greatest of:

                           (A)      the Participant's EDCP Retirement Account
                                    balance less his EDCP Termination Account
                                    balance, multiplied by two;

                           (B)      40% of the Participant's EDCP Termination
                                    Account balance, not to exceed $100,000; or

                           (C)      Four times the Participant's EDCP
                                    Termination Account balance, not to exceed
                                    $10,000.

For any Participant who has an EDCP Pre-Termination Withdrawal in Pay Status at
the time he makes an election pursuant to Section 4.5(b), his initial
Enhancement Contribution will equal the product of (i) the greatest figure from
(A), (B) and (C) and (ii) a fraction (not to exceed one), the numerator of which
is the balance of the Participant's EDCP Termination Account transferred to the
Plan, and the denominator of which is the sum

                                       18
<Page>

of (I) the balance of the Participant's EDCP Termination Account transferred to
the Plan and (II) the balance of all amounts credited towards a EDCP
Pre-Termination Withdrawal that are not transferred to the Plan.

         (b) SECOND ENHANCEMENT CONTRIBUTION.

                  (1) ELIGIBILITY. Each Participant who received an initial
         Enhancement Contribution as described in subsection (a) and who
         continues to be employed by, or receives salary continuation payments
         from, an Employer until the date he attains age 55 and has completed 10
         years of service will be credited with a second Enhancement
         Contribution.

                  (2) TIMING. The second Enhancement Contribution, determined in
         accordance with subsection (b)(3), will be credited to the
         Participant's Deferral Account as of the date described in subsection
         (b)(1).

                  (3) AMOUNT. The second Enhancement Contribution will be an
         amount equal to 50% of the initial Enhancement Contribution credited
         determined under subsection (a)(3).

         (c) VESTING. Each Participant is 100% vested in each of his Enhancement
Contributions once made.

                                  ARTICLE FIVE
                                   WITHDRAWALS

         5.1 ACCELERATION OF BENEFITS.

         (a) GENERAL.

                  (1) Both Participants and Beneficiaries may elect to receive
         an accelerated withdrawal by filing an election with the EDCP Committee
         in accordance with the uniform procedures promulgated by the EDCP
         Committee.

                  (2) The election of an accelerated withdrawal by a Participant
         or Beneficiary who is entitled to a distribution under Article Eight
         will override the distribution election in effect for him under Article
         Eight with respect to both form of payment and timing.

                                       19
<Page>

         If installment payments to the Participant or Beneficiary have begun at
         the time an election for an accelerated withdrawal is made, the
         election will apply only with respect to the unpaid balance in his
         Account.

                  (3) The Participant or Beneficiary may request an accelerated
         withdrawal equal to 25%, 50%, 75% or 100% of the sum of his Deferral
         Contribution Account balance, plus the vested interest in his Matching
         Contribution and Discretionary Contribution Accounts. If a Participant
         or a Beneficiary requests an accelerated withdrawal of less than 100%
         of his vested Accounts, he may instruct the EDCP Committee to allocate
         the requested withdrawal amount among his Deferral Contribution
         Account, Matching Contribution Account and Discretionary Contribution
         Account in the manner set forth in his accelerated withdrawal request.

                  (4) If a Participant or Beneficiary makes an accelerated
         withdrawal election, he shall receive a single lump sum payment equal
         to 90% of the accelerated withdrawal amount. The Participant or
         Beneficiary shall forfeit the remaining 10% of the accelerated
         withdrawal amount as of the day on which the accelerated withdrawal is
         distributed.

                  (5) For purposes of determining the amount to be distributed,
         the Participant's or Beneficiary's Accounts shall be valued as of the
         Valuation Date immediately preceding the date of the election. The
         Participant's vested interest in his Matching Contribution Account and
         Discretionary Contribution Account shall be determined as of the
         Valuation Date immediately preceding the date of the withdrawal.

                  (6) The accelerated withdrawal shall be paid within 30 days
         following the filing of the election by the Participant or Beneficiary.

         (b) SUSPENSION OF PARTICIPATION. If a Participant elects to receive an
accelerated withdrawal, the Participant's right to make Deferral Contributions
to the Plan shall be

                                       20
<Page>

suspended for the remainder of the Deferral Period during which the accelerated
withdrawal is distributed to the Participant and for the entire next following
Deferral Period. Upon expiration of the suspension period described in the
preceding sentence, the Participant shall be permitted to submit a new
Participation Agreement in accordance with Section 3.3 (REVISED PARTICIPATION
AGREEMENT) and to begin making Deferral Contributions with respect to
Compensation earned on or after the first day of the first payroll period of the
next following Deferral Period.

         5.2 ACCOUNT ADJUSTMENTS. Withdrawals shall be charged to the
Participant's or Beneficiary's Accounts in accordance with the allocation
instructions set forth in his request for an accelerated withdrawal. In the
absence of such allocation instructions, the withdrawal shall be charged pro
rata to the Participant's or Beneficiary's Accounts.

         5.3 LIMITATION ON DISTRIBUTIONS. To the extent that any payment under
this Section, when combined with all other payments received during the year
that are subject to the limitations on deductibility under Section 162(m) of the
Code, exceeds the limitations on deductibility under Section 162(m) of the Code,
such payment shall, in the discretion of the EDCP Committee, be deferred to a
later calendar year. Such deferred amounts shall be paid in the next succeeding
calendar year, provided that such payment, when combined with any other payments
subject to the Section 162(m) limitations received during the year, does not
exceed the limitations on deductibility under Section 162(m) of the Code. Any
payment that is deferred in accordance with this Section 5.3 shall be credited
with hypothetical investment earnings and losses in accordance with Article Six
(CREDITING OF CONTRIBUTIONS AND INCOME).

         5.4 IN-SERVICE WITHDRAWALS FOR EDCP TRANSFERS.

         (a) ELECTION. This Section of the Plan applies only to those
individuals who make a valid election pursuant to Section 4.5(b), and who, prior
to April 1, 2001, elected an EDCP Pre-Termination Withdrawal under the EDCP that
is not in Pay Status as of the date of his election under Section 4.5(b). At the
time such individuals elect to transfer their EDCP Termination Account to the
Plan pursuant to Section 4.5(b), they may make a one-time, irrevocable election
to have all the

                                       21
<Page>

amounts that were credited on their behalf for purposes of an EDCP
Pre-Termination Withdrawal under the EDCP either (i) credited to the
Participant's Deferral Contribution Account under this Plan and distributed
pursuant to Section 8.1 or (ii) credited to the Participant's In-Service
Withdrawal Account under this Plan and distributed pursuant to subsection (b).
If no valid election is made with respect to this issue, the amount credited
under the EDCP on behalf of a Participant's EDCP Pre-Termination Withdrawal will
automatically be credited to the Participant's Deferral Contribution Account.

         (b) IN-SERVICE WITHDRAWALS. The balance credited to an In-Service
Withdrawal Account pursuant to the election described in subsection (a) will be
deemed to be invested in accordance with Sections 6.3, 6.4 and 6.5. Except as
provided in subsection (c), payments to the Participant from the In-Service
Withdrawal Account will commence in the same year as payments to the Participant
were scheduled to commence from the EDCP as an EDCP Pre-Termination Withdrawal
and will be made in four annual installments. In each of the four years, the
amount of the installment will equal a specified percentage of the remaining
balance of the In-Service Withdrawal Account as of the Valuation Date
immediately preceding each date of payment. The applicable percentages are as
follows:

                               PERCENTAGE OF THE IN-SERVICE
         YEAR                       WITHDRAWAL ACCOUNT
         ----                  ----------------------------

          1                              25%
          2                              33-1/3%
          3                              50%
          4                             100%

         (c) TERMINATION BEFORE FULL PAYMENT. Notwithstanding anything to the
contrary in subsection (b), if any Participant with an In-Service Withdrawal
Account established under this Section dies or terminates from employment with
the Company and all Affiliates before all four installments have been paid, the
remaining balance of his In-Service Withdrawal Account will be paid in
accordance with Article Eight.

                                       22
<Page>

                                  ARTICLE SIX
                      CREDITING OF CONTRIBUTIONS AND INCOME

         6.1 ACCOUNT ALLOCATIONS. All Deferral Contributions, Enhancement
Contributions and transfers of EDCP Termination Account balances made pursuant
to Section 4.5(b) will be credited to the Participants' Deferral Contribution
Account. All Matching Contributions will be credited to the Participants'
Matching Contribution Accounts, and all Discretionary Contributions, other than
Enhancement Contributions, will be credited to the Participants' Discretionary
Contribution Accounts. All credits and charges to all Participants' Accounts
shall be done in accordance with the policies and procedures of the EDCP
Committee. All transfers to payments from and charges against an Account shall
be charged against the Account as of the Valuation Date on which the transaction
occurs. The Accounts are bookkeeping accounts only, and the EDCP Committee is
not in any way obligated to segregate assets for the benefit of any Participant.

         6.2 SUBACCOUNTS. The EDCP Committee may divide any Account into such
subaccounts as it deems necessary and desirable.

         6.3 HYPOTHETICAL INVESTMENT FUNDS. The EDCP Investment Committee shall
establish a series of hypothetical Investment Funds for use pursuant to this
Article Six.

         6.4 INVESTMENT DIRECTION. A Participant will direct the hypothetical
investment of his Deferral Contribution Account, Matching Contribution Account,
and Discretionary Contribution Account among the Investment Funds in the manner
(including, but not limited to, writing, electronic, internet, intranet, voice
response or telephonic) established by the EDCP Committee. The Participant's
Deferral Contribution Account, Matching Contribution Account and Discretionary
Contribution Account shall not be invested in the Investment Funds, but the
value of the Participant's Accounts shall be measured by the performance of the
Investment Funds selected. Any and all changes to a Participant's Investment
Fund allocation shall be made in accordance with the uniform procedures of the
EDCP Committee, which shall permit changes in Investment Fund allocations on a
quarterly or more frequent basis. If a Participant fails to direct the
hypothetical investment of his Accounts in the manner

                                       23
<Page>

established by the EDCP Committee, the Participant will be deemed to have
selected the default hypothetical Investment Fund(s) selected by the EDCP
Investment Committee for such purpose, in the discretion of the EDCP Committee
and in accordance with its uniform policies and procedures.

         6.5 RATE OF RETURN. Participant Accounts shall be adjusted on each
Valuation Date to reflect investment gains and losses as if the Accounts were
invested in the hypothetical Investment Funds selected by the Participants in
accordance with Section 6.4 (INVESTMENT DIRECTION) and charged with any and all
reasonable expenses related to the administration of the Plan including, but not
limited to, the reasonable expenses of carrying out the hypothetical investment
directions related to each Account. The earnings and losses allocated to any
Account shall be allocated among the subaccounts of that Account in the same
manner. The earnings and losses determined by the EDCP Investment Committee in
good faith and in its discretion pursuant to this Article Six shall be binding
and conclusive on the Participant, the Participant's Beneficiary and all parties
claiming through them.

         6.6 APPLICATION TO BENEFICIARIES. The provisions of this Article Six
shall also apply to the Beneficiaries of a deceased Participant.

         6.7 EDCP INVESTMENT COMMITTEE.

         (a) MEMBERSHIP. The EDCP Investment Committee shall be appointed by
action of the HRC. The EDCP Investment Committee members shall serve without
compensation but shall be reimbursed for all expenses by the Company. The EDCP
Investment Committee shall conduct itself in accordance with the provisions of
this Section. The members of the EDCP Investment Committee may resign with
thirty (30) days notice in writing to the Company and may be removed immediately
at any time by written notice from the HRC. The EDCP Investment Committee may
have duties with respect to other plans of the Company that are similar or
identical to its duties under the Plan.

         (b) APPOINTMENT OF AGENTS. The EDCP Investment Committee may appoint
such other agents, who need not be members of the EDCP Investment Committee, as
it may deem necessary for the effective performance of its duties, whether
ministerial or

                                       24
<Page>

discretionary, as the EDCP Investment Committee may deem expedient or
appropriate. The compensation of any agents who are not employees of the Company
shall be fixed by the committee within any limitations set by the HRC.

         (c) MAJORITY VOTE. On all matters, questions and decisions, the action
of the EDCP Investment Committee shall be determined by a majority vote of its
members. They may meet informally or take any ordinary action without the
necessity of meeting as a group. All instruments executed by the EDCP Investment
Committee shall be executed by a majority of its members or by any member of the
EDCP Investment Committee designated to act on its behalf.

         (d) ALLOCATION OF RESPONSIBILITIES. The EDCP Investment Committee may
allocate responsibilities among its members or designate other persons to act on
its behalf. Any allocation or designation, however, must be set forth in writing
and must be retained in the permanent records of the EDCP Investment Committee.

         (e) INDEMNIFICATION. The Company shall indemnify and hold harmless the
members of the EDCP Investment Committee against any and all claims, loss,
damage, expense or liability arising from any action or failure to act with
respect to this Plan on account of such member's service on the EDCP Investment
Committee, except in the case of gross negligence or willful misconduct.

                                       25
<Page>

                                  ARTICLE SEVEN
                                     VESTING

         7.1 VESTING OF BENEFITS.

         (a) DEFERRAL CONTRIBUTIONS. Each Participant shall at all times have a
fully vested interest in his Deferral Contribution Account, and a Participant's
rights and interest therein shall not be forfeitable for any reason.

         (b) MATCHING CONTRIBUTIONS.

                  (1) FULL VESTING. Each Participant shall have a fully vested
         interest in his Matching Contribution Account on and after the first to
         occur of the following events:

                           (A) The Participant's attainment of age 60;

                           (B) The Participant's date of death;

                           (C) The Participant's Disability;

                           (D) A Change of Control;

                           (E) Termination of the Plan; or

                           (F) The completion of five Years of Vesting Service.

                  (2) VESTING SCHEDULE. If a Participant terminates service with
         an Employer at a time when the Participant does not have a fully vested
         interest in his Matching Contribution Account, the Participant's vested
         interest shall be determined in accordance with the applicable vesting
         schedule for matching contributions in effect under the Savings and
         Retirement Plan. As of the Effective Date, this schedule is as follows:

         COMPLETED YEARS
         OF VESTING SERVICE           PERCENTAGE VESTED
         ------------------           -----------------

         Less than 1                         0%
         1 but less than 2                  20%

                                       26
<Page>

         2 but less than 3                  40%
         3 but less than 4                  60%
         4 but less than 5                  80%
         5 or more                         100%

                  (3) A Participant's vested interest in his Matching
         Contribution Account shall be determined as of the Valuation Date
         immediately preceding the first distribution to the Participant from
         his Matching Contribution Account following his termination of
         employment. Any portion of a Participant's Accounts which is not vested
         shall be forfeited in the first Deferral Period in which the
         Participant or his Beneficiary receives a distribution from this Plan
         under Article Eight.

         (c) DISCRETIONARY CONTRIBUTIONS. Except as provided by the Employer or
EDCP Committee at the time a Discretionary Contribution is made or by Section
4.7, each Participant will vest in his Discretionary Contribution Account in the
same manner he vests in his Matching Contribution Account. A Participant's
vested interest in his Discretionary Contribution Account shall be determined as
of the Valuation Date immediately preceding the first distribution to the
Participant from his Discretionary Contribution Account following his
termination of employment. Any portion of a Participant's Accounts which is not
vested shall be forfeited in the first Deferral Period in which the Participant
receives a distribution from this Plan.

         7.2 CHANGES IN VESTING SCHEDULE. In the event that an amendment to this
Plan or the Savings and Retirement Plan directly or indirectly changes the
vesting provisions of Section 7.1 (VESTING OF BENEFITS), the vested percentage
for each Participant in his benefit accumulated to the date when the amendment
is adopted shall not be reduced as a result of the amendment.

                                 ARTICLE EIGHT
                              PAYMENT OF BENEFITS

         8.1 TIME OF PAYMENT. With the exception of the withdrawal of amounts
pursuant to Article Five (WITHDRAWALS) or distribution pursuant to Section 12.3
(TERMINATION OF PLAN OR DISCONTINUANCE OF CONTRIBUTIONS), no distributions will
be made to a Participant prior to the Participant's death or termination

                                       27
<Page>

of employment with the Company and all Affiliates. A Disabled Participant shall
continue to participate in the Plan until such time as the Participant
terminates or retires from employment with the Company and all Affiliates or the
Participant dies. Following the Participant's termination of employment,
distributions normally will be made as soon as possible and in any event shall
commence within 60 days following the end of the month in which the Participant
terminates employment. If benefits are being paid pursuant to this Plan
following the death of a Participant, distributions will be made or commence as
of the January 1 next following the date of the Participant's death.

         8.2 METHOD OF PAYMENTS.

         (a) PAYMENTS.

                  (1) A Participant may elect to receive distributions from his
         Accounts in either a cash lump sum or monthly cash installment payments
         over a period certain not exceeding 15 years. Except as provided in
         subsection (c) or Sections 5.1, 12.3 and 13.6, a Participant's
         distribution election form will only be respected if the method of
         payment has been elected by the Participant in his initial
         Participation Agreement or in any revised Participation Agreement that
         has been in effect for the requisite period of time specified in
         Section 3.3. If the Participant has not made a valid distribution
         election, the Participant's Accounts will be distributed in one lump
         sum.

                  (2) Upon a Participant's death, payments shall be made to his
         Beneficiary in accordance with the Participant's distribution election
         under subsection (a)(1) above, subject to the Beneficiary's election
         under Section 5.1. If payments to the Participant have already
         commenced at the time of his death, payments will continue to the
         Beneficiary in the same manner, subject to the Beneficiary's election
         under Section 5.1.

         (b) INSTALLMENT PAYMENTS.

                  (1) The amount of each monthly installment in any year will be
         calculated as follows: The amount of

                                       28
<Page>

         the monthly installments will be determined before the first
         installment is paid and on each January 1st in all subsequent years.
         First, the number of remaining installments will be divided by 12, and
         the result will be rounded up to the nearest whole number. Second, this
         whole number will be divided into the vested balance of the
         Participant's Accounts determined as of the last Valuation Date of the
         prior month. Third, this result will be divided by the lesser of (A)
         the remaining number of installments or (B) 12. A Participant's last
         installment payment shall be adjusted as needed to reflect investment
         gains or losses. If the remaining balance in a Participant's Accounts
         is less than $10,000, the EDCP Committee may pay it in a lump sum.

                  (2) If installment payments are made, the provisions of
         Sections 6.3, 6.4 and 6.5 will continue to apply to the unpaid balance.

         (c) SPECIAL RULE FOR CERTAIN EDCP TRANSFERS.

                  (1) EXISTING PARTICIPANTS. Notwithstanding subsection (a), an
         individual who is already a Participant who made a valid election
         pursuant to Section 4.5(b) may, at the time of such election, submit a
         new distribution election form. This distribution election form will
         become effective as of January 1, 2002 unless the Participant's
         employment with the Company and all Affiliates terminates after the
         distribution form election is submitted and before January 1, 2002, due
         to (A) the Participant's death; (B) the Participant's Disability or (C)
         action taken by the Company or the Participant's Employer. If any of
         these events occurs, the Participant's distribution election form will
         be respected in 2001. If the Participant voluntarily terminates
         employment or retires before January 1, 2002, then the new distribution
         election form will not take effect, and the distribution will be
         determined by the Participant's previous valid distribution election
         form, if any. If none, the distribution will be made in a lump sum. The
         EDCP Committee will, in its sole discretion, determine if any
         Participant's employment

                                       29
<Page>

         terminates due to action taken by the Company or an Employer. For
         purposes of this subsection, a Participant who is receiving salary
         continuation payments from an Employer will be deemed to be employed.

                  (2) NEW PARTICIPANTS. An individual who makes a valid election
         pursuant to Section 4.5(b) and thereby becomes a Participant will
         submit an initial distribution election form that will be effective as
         of the date it is made.

         8.3 BENEFICIARY DESIGNATIONS.

         (a) GENERAL. In the event of the death of the Participant, the
Participant's vested interest in his Accounts shall be paid to the Participant's
Beneficiary as described in Section 8.1(a)(2). Each Participant shall have the
right to designate, in the manner specified by the EDCP Committee, a Beneficiary
or Beneficiaries to receive his benefits hereunder in the event of the
Participant's death.

         (b) SPOUSAL CONSENT REQUIREMENTS. If the Participant is married at the
time the Beneficiary designation is filed, the Participant must designate his
spouse as the Beneficiary of at least 50% of the Participant's Account or
provide the spouse's consent to the designation of a Beneficiary other than the
spouse. If a Participant marries or divorces after a Beneficiary designation is
filed, the designation will no longer be effective.

         (c) REVISED DESIGNATIONS. Subject to the spousal consent requirements
noted above, each Participant may change his Beneficiary designation from time
to time in the manner described above. Upon receipt of such designation by the
EDCP Committee, such designation or change of designation shall become effective
as of the date of the notice, whether or not the Participant is living at the
time the notice is received. There shall be no liability on the part of the
Employer, the EDCP Committee or the Trustee with respect to any payment
authorized by the EDCP Committee in accordance with the most recent Beneficiary
designation of the Participant in the possession of the EDCP Committee before
the EDCP Committee receives a more recent Beneficiary designation.

                                       30
<Page>

         (d) DEEMED BENEFICIARY DESIGNATIONS. If no designated Beneficiary is
living when benefits become payable, or if there is no designated Beneficiary,
the Beneficiary shall be the Participant's spouse. If there is no living spouse,
the Beneficiary shall be the Participant's estate. If the designated Beneficiary
dies after the payment of benefits begin, then the Beneficiary for the remainder
of the benefits payable shall be the estate of the Beneficiary.

         8.4 LIMITATION ON DISTRIBUTIONS. Distributions made under this Article
8 shall be subject to the same limitations set forth in Section 5.3 (LIMITATION
ON DISTRIBUTIONS) of the Plan.

         8.5 WITHHOLDING AND PAYROLL TAXES. The Employer shall withhold from
Plan payments any taxes required to be withheld from such payments under
federal, state or local law. Any withholding of taxes or other amounts required
by federal, state or local law with respect to amounts credited to Participant
Accounts including, but not limited to, tax due under the Federal Insurance
Contributions Act, shall be withheld, to the maximum extent possible, from the
portion of the Participant's Salary or Bonus that is not contributed to this
Plan. Any withholding amounts that cannot be withheld in accordance with the
preceding sentence shall be withheld from the Participant's Deferral
Contributions.

                                  ARTICLE NINE
                           ADMINISTRATION OF THE PLAN

         9.1 ADOPTION OF TRUST. The Company shall enter into a Trust Agreement
with the Trustee, which Trust Agreement shall form a part of this Plan and is
hereby incorporated herein by reference.

         9.2 POWERS OF THE EDCP COMMITTEE.

         (a) NAMED FIDUCIARY. The EDCP Committee is the named fiduciary with
respect to the administration of the Plan.

         (b) GENERAL POWERS OF THE EDCP COMMITTEE. The EDCP Committee shall have
the power and discretion to perform the administrative duties described in this
Plan or required for proper administration of the Plan and shall have all powers
necessary to enable it to properly carry out such duties.

                                       31
<Page>

Without limiting the generality of the foregoing, the EDCP Committee shall have
the power and discretion to construe and interpret this Plan, to hear and
resolve claims relating to this Plan, and to decide all questions and disputes
arising under this Plan. The EDCP Committee shall determine, in its discretion,
the service credited to the Participants, the status and rights of a
Participant, and the identity of the Beneficiary or Beneficiaries entitled to
receive any benefits payable hereunder on account of the death of a Participant.
The decision or action of the EDCP Committee in respect of any question arising
under or in connection with the Plan and the rules and regulations promulgated
hereunder shall be final and conclusive and binding upon all persons having an
interest in the Plan.

         (c) DISTRIBUTIONS. Except as is otherwise provided hereunder, the EDCP
Committee shall determine the manner and time of payment of benefits under this
Plan. All benefit disbursements by the Trustee shall be made upon the
instructions of the EDCP Committee.

         (d) DECISIONS CONCLUSIVE. The decision of the EDCP Committee upon all
matters within the scope of its authority shall be binding and conclusive upon
all persons.

         (e) REPORTING. The EDCP Committee shall file all reports and forms
lawfully required to be filed by the EDCP Committee and shall distribute any
forms, reports or statements to be distributed to Participants and others.

         (f) TRUST FUND. The EDCP Committee shall keep itself advised with
respect to the funded status and investment of the Trust Fund.

         9.3 CREATION OF COMMITTEE. The EDCP Committee shall be appointed by the
Chief Executive Officer of the Company. The EDCP Committee must consist of at
least three members. The EDCP Committee members shall serve without compensation
but shall be reimbursed for all expenses by the Company. The EDCP Committee
shall conduct itself in accordance with the provisions of this Article Nine. The
members of the EDCP Committee may resign with thirty (30) days notice in writing
to the Company and may be removed immediately at any time by written notice from
the Company. The EDCP Committee may have duties with respect to

                                       32
<Page>

other plans of the Company that are or identical to its duties under the Plan.

         9.4 APPOINTMENT OF AGENTS. The EDCP Committee may appoint such other
agents, who need not be members of the EDCP Committee, as it may deem necessary
for the effective performance of its duties, whether ministerial or
discretionary, as the EDCP Committee may deem expedient or appropriate. The
compensation of any agents who are not employees of the Company shall be fixed
by the committee within any limitations set by the HRC.

         9.5 MAJORITY VOTE AND EXECUTION OF INSTRUMENTS. In all matters,
questions and decisions, the action of the EDCP Committee shall be determined by
a majority vote of its members. They may meet informally or take any ordinary
action without the necessity of meeting as a group. All instruments executed by
the EDCP Committee shall be executed by a majority of its members or by any
member of the EDCP Committee designated to act on its behalf.

         9.6 ALLOCATION OF RESPONSIBILITIES. The EDCP Committee may allocate
responsibilities among its members or designate other persons to act on its
behalf. Any allocation or designation, however, must be set forth in writing and
must be retained in the permanent records of the EDCP Committee.

         9.7 CONFLICT OF INTEREST. No member of the EDCP Committee who is a
Participant shall take any part in any action in connection with his
participation as an individual. Such action shall be voted or decided by the
remaining members of the EDCP Committee.

         9.8 INDEMNIFICATION. The Company shall indemnify and hold harmless the
members of the EDCP Committee against any and all claims, loss, damage, expense
or liability arising from any action or failure to act with respect to this Plan
on account of such member's service on the EDCP Committee, except in the case of
gross negligence or willful misconduct.

         9.9 ACTION TAKEN BY EMPLOYER. Any action to be taken by an Employer
shall be taken by resolution adopted by its board of directors or appropriate
board committee; provided, however, that by resolution, the board of directors
or appropriate board committee may delegate to any committee of the board or any

                                       33
<Page>

officer of the Employer the authority to take any actions under this Plan, other
than the power to determine the basis of Employer contributions.

         9.10 FIDUCIARY AUTHORITY. All delegations of fiduciary responsibility
set forth in this document regarding the determination of benefits and the
interpretation of the terms of the Plan confer discretionary authority upon the
named fiduciary.

         9.11 PARTICIPANT STATEMENTS. The EDCP Committee shall provide a
statement of Plan Accounts to each Participant and Beneficiary on a quarterly or
more frequent basis, as determined by the EDCP Committee in its discretion. Such
statement of Plan Accounts shall reflect the amounts allocated to each Account
maintained for the Participant, the Participant's vested interest in his
Accounts, any distributions, withdrawals or expenses charged against the
Participant's Account, the hypothetical investment earnings and losses on the
Participant's Account, and any other information deemed appropriate by the EDCP
Committee.

                                  ARTICLE TEN
                             CLAIM REVIEW PROCEDURE

         10.1 GENERAL. In the event that a Participant or Beneficiary (the
"claimant") is denied a claim for benefits under this Plan, the EDCP Committee
shall provide to the claimant written notice of the denial which shall set
forth:

         (a) The specific reason or reasons for the denial;

         (b) Specific references to pertinent Plan provisions on which the EDCP
Committee based its denial;

         (c) A description of any additional material or information needed for
the claimant to perfect the claim and an explanation of why the material or
information is needed;

         (d) A statement that the claimant may:

                  (1) Request a review upon written application to the EDCP
         Committee;

                  (2) Review pertinent Plan documents; and

                                       34
<Page>

                  (3) Submit issues and comments in writing; and

         (e) That any appeal the claimant wishes to make of the adverse
determination must be in writing to the EDCP Committee within 60 days after
receipt of the EDCP Committee's notice of denial of benefits. The EDCP
Committee's notice must further advise the claimant that his failure to appeal
the action to the EDCP Committee in writing within the 60 day period will render
the EDCP Committee's determination final, binding, and conclusive.

         10.2 APPEALS.

         (a) If the claimant should appeal to the EDCP Committee, he, or his
duly authorized representative, may submit, in writing, whatever issues and
comments he, or his duly authorized representative, feels are pertinent. The
EDCP Committee shall re-examine all facts related to the appeal and make a final
determination as to whether the denial of benefits is justified under the
circumstances. The EDCP Committee shall advise the claimant in writing of its
decision on his appeal, the specific reasons for the decision, and the specific
Plan provisions on which the decision is based. The notice of the decision shall
be given within 60 days of the claimant's written request for review, unless
special circumstances (such as a hearing) would make the rendering of a decision
within the 60 day period infeasible, but in no event shall the EDCP Committee
render a decision regarding the denial of a claim for benefits later than 120
days after its receipt of a request for review. If an extension of time for
review is required because of special circumstances, written notice of the
extension shall be furnished to the claimant prior to the date the extension
period commences.

         (b) If, upon appeal, the EDCP Committee shall grant the relief
requested by the claimant, then, in addition, the EDCP Committee shall award to
the claimant reasonable fees and expenses of counsel, or any other duly
authorized representative of claimant, which shall be paid by the Company. The
determination as to whether such fees and expenses are reasonable shall be made
by the Company in its sole and absolute discretion and such determination shall
be binding and conclusive on all parties.

                                       35
<Page>

         10.3 NOTICE OF DENIALS. The EDCP Committee's notice of denial of
benefits shall identify the address to which the claimant may forward his
appeal.

                                  ARTICLE ELEVEN
                  LIMITATION ON ASSIGNMENT; PAYMENTS TO LEGALLY
                             INCOMPETENT DISTRIBUTEE

         11.1 ANTI-ALIENATION CLAUSE. No benefit which shall be payable under
the Plan to any person shall be subject in any manner to anticipation,
alienation, sale, transfer, assignment, pledge, encumbrance or charge, and any
attempt to anticipate, alienate, sell, transfer, assign, pledge, encumber,
charge or otherwise dispose of the same shall be void. No benefit shall in any
manner be subject to the debts, contracts, liabilities, engagements or torts of
any person, nor shall it be subject to attachment or legal process for or
against any person, except to the extent as may be required by law. The benefits
provided by this Plan are not subject to the qualified domestic relations order
provisions of ERISA or the Code.

         11.2 PERMITTED ARRANGEMENTS. Section 11.1 (ANTI-ALIENATION CLAUSE)
shall not preclude arrangements for the withholding of taxes from benefit
payments, arrangements for the recovery of benefit overpayments, arrangements
for the transfer of benefit rights to another plan, or arrangements for direct
deposit of benefit payments to an account in a bank, savings and loan
association or credit union (provided that such arrangement is not part of an
arrangement constituting an assignment or alienation).

         11.3 PAYMENT TO MINOR OR INCOMPETENT. Whenever any benefit which shall
be payable under the Plan is to be paid to or for the benefit of any person who
is then a minor or determined by the EDCP Committee to be incompetent, the EDCP
Committee need not require the appointment of a guardian or custodian, but shall
be authorized to cause the same to be paid over to the person having custody of
the minor or incompetent, or to cause the same to be paid to the minor or
incompetent without the intervention of a guardian or custodian, or to cause the
same to be paid to a legal guardian or custodian of the minor or incompetent if
one has been appointed or to cause the same to be used for the benefit of the
minor or incompetent.

                                       36
<Page>

                                 ARTICLE TWELVE
                        AMENDMENT, MERGER AND TERMINATION

         12.1 AMENDMENT.

         (a) The Company shall have the right at any time, by an instrument in
writing duly executed, acknowledged and delivered to the EDCP Committee, to
modify, alter or amend this Plan, in whole or in part, prospectively or
retroactively. Additionally, the EDCP Committee shall also have the right to
modify, alter or amend the Plan by written instrument provided that such
amendment does not have a material adverse financial effect on the Company or
the Plan. No amendment shall substantially increase the duties and liabilities
of the EDCP Committee and the Trustee hereunder without its written consent. No
amendment shall reduce any Participant's vested interest in the Plan, calculated
as of the date on which the amendment is adopted.

         (b) Any Affiliate or other entity adopting this Plan hereby delegates
the authority to amend the Plan to the Company and the EDCP Committee. If the
Plan is amended after it is adopted by an Affiliate, unless otherwise expressly
provided, it shall be treated as so amended by such Affiliate without the
necessity of any action on the part of the Affiliate. An Affiliate or other
entity that has adopted this Plan may terminate its future participation in the
Plan at any time.

         12.2 MERGER OR CONSOLIDATION OF COMPANY. The Plan shall not be
automatically terminated by the Company's acquisition by or merger into any
other employer, but the Plan shall be continued after such acquisition or merger
if the successor employer elects and agrees to continue the Plan. Except as
provided in Section 12.4 (CONTINUATION OF PLAN FOLLOWING CHANGE OF CONTROL), all
rights to amend, modify, suspend, or terminate the Plan shall be transferred to
the successor employer, effective as of the date of the merger.

         12.3 TERMINATION OF PLAN OR DISCONTINUANCE OF CONTRIBUTIONS. It is the
expectation of the Company that this Plan and the payment of contributions
hereunder will be continued indefinitely. However, continuance of the Plan is
not assumed as a contractual obligation of the Company. Except as provided in
Section 12.4 (CONTINUATION OF PLAN FOLLOWING CHANGE

                                       37
<Page>

OF CONTROL), the Company reserves the right at any time to terminate this Plan
or to reduce, temporarily suspend or discontinue contributions hereunder. If
this Plan is terminated, the HRC may, in its discretion, direct that all Plan
benefits be distributed to current and former Participants in cash lump sum
payments as soon as practicable following the termination of the Plan. Any
distributions made pursuant to this Section 12.3 shall be made in accordance
with Section 8.3 (BENEFICIARY DESIGNATIONS), Section 8.4 (LIMITATION ON
DISTRIBUTIONS) and Section 8.5 (WITHHOLDING AND PAYROLL TAXES).

         12.4 CONTINUATION OF PLAN FOLLOWING A CHANGE OF CONTROL.
Notwithstanding any provision of this Plan to the contrary, if a Change of
Control occurs following the Effective Date of this Plan, a successor employer
shall have the power to (a) terminate this Plan, (b) amend Section 13.5 (FUNDING
UPON A CHANGE OF CONTROL) of the Plan, or (c) amend any provision of the Plan
that affects a Participant's entitlement to or the timing of a distribution from
the Plan, only if 80% of the individuals who are Participants in the Plan as of
the date of the Change of Control consent to such an amendment or termination.
The provisions of this Section 12.4 shall not limit a successor employer's
authority to take other actions with respect to the Plan, including the
authority to discontinue contributions to the Plan.

         12.5 LIMITATION OF COMPANY'S LIABILITY. The adoption of this Plan is
strictly a voluntary undertaking on the part of the Company and shall not be
deemed to constitute a contract between the Company and any employee or
Participant or to be consideration for, an inducement to, or a condition of the
employment of any employee. A Participant, employee, or Beneficiary shall not
have any right to retirement or other benefits except to the extent provided
herein.

                                       38
<Page>

                                ARTICLE THIRTEEN
                               GENERAL PROVISIONS

         13.1 LIMITATION OF RIGHTS. Neither this Plan, the Trust nor membership
in the Plan shall give any employee or other person any right except to the
extent that the right is specifically fixed under the terms of the Plan. The
establishment of the Plan shall not be construed to give any individual a right
to be continued in the service of a Employer or as interfering with the right of
a Employer to terminate the service of any individual at any time.

         13.2 CONSTRUCTION. The masculine gender, where appearing in the Plan,
shall include the feminine gender (and vice versa), and the singular shall
include the plural, unless the context clearly indicates to the contrary.
Headings and subheadings are for the purpose of reference only and are not to be
considered in the construction of this Plan. If any provision of this Plan is
determined to be for any reason invalid or unenforceable, the remaining
provisions shall continue in full force and effect. All of the provisions of
this Plan shall be construed and enforced in accordance with the laws of the
State of Delaware.

         13.3 STATUS OF PARTICIPANTS AS UNSECURED CREDITORS. All benefits under
the Plan shall be the unsecured obligations of the Company and each Employer, as
applicable, and, except for those assets which will be placed in the Trust
established in connection with this Plan, no assets will be placed in trust or
otherwise segregated from the general assets of the Company or each Employer, as
applicable, for the payment of obligations hereunder. To the extent that any
person acquires a right to receive payments hereunder, such right shall be no
greater than the right of any unsecured general creditor of the Company and each
Employer, as applicable.

         13.4 STATUS OF TRUST FUND. The Trust Fund is being established to
assist the Company and the Employers in meeting their obligations to the
Participants and to provide the Participants with a measure of protection in
certain limited instances. In certain circumstances described in the Trust
Agreement, the assets of the Trust Fund may be used for the benefit of the
Company's or an Affiliate's creditors and, as a result, the Trust Fund is
considered to be part of the Company's and Employer's general assets. Benefit
payments due under this

                                       39
<Page>

Plan shall either be paid from the Trust Fund or from the Company's or
Affiliate's general assets as directed by the EDCP Committee. Despite the
establishment of the Trust Fund, it is intended that the Plan be considered to
be "unfunded" for purposes of the ERISA and the Code.

         13.5 FUNDING UPON A CHANGE OF CONTROL. Upon a Change of Control, and in
no event later than 90 days following the date of a Change of Control, the
Company shall determine whether, for any reason, the assets of the Trust Fund
are less than the aggregate Account balances of all Participants (determined
without regard to the vested interest of each Participant) and transfer an
amount equal to the deficiency to the Trustee of the Trust. If it is discovered
at any time that the amount initially transferred is less than the total amount
called for by the preceding sentence, the shortfall, including any accrued
interest on the shortfall, shall be transferred to the Trustee immediately upon
the discovery of such error.

         13.6 NO LIABILITY FOR ACCELERATION OF PAYMENTS. Under the Plan,
Participants are allowed, to a certain extent, to designate the dates on which
distributions are to be made to them. The EDCP Committee, however, also has the
right, in the exercise of its discretion, to accelerate payments. By accepting
the benefits offered by the Plan, each Participant (and each Beneficiary
claiming through a Participant) acknowledges that the EDCP Committee may
override the Participant's elections and agrees that neither the Participant nor
any Beneficiary shall have may claim against the EDCP Committee, the Trustee, or
any Employer if distributions are made earlier than anticipated by the
Participant due to the EDCP Committee's exercise of its discretion to accelerate
payments.

         13.7 UNIFORM ADMINISTRATION. Whenever in the administration of the Plan
any action is required by the EDCP Committee, such action shall be uniform in
nature as applied to all persons similarly situated, except as otherwise
provided to the contrary in this Plan document or the Trust Agreement.

         13.8 HEIRS AND SUCCESSORS. All of the provisions of this Plan shall be
binding upon all persons who shall be entitled to any benefits hereunder, and
their heirs and legal representatives.

                                       40
<Page>

         13.9 ELECTRONIC ADMINISTRATION. The EDCP Committee shall have the
authority to employ alternative means (including, but not limited to,
electronic, internet, intranet, voice response or telephonic) by which
Participants may submit participation elections, directions, and forms required
for participation in, and the administration of, this Plan. If the EDCP
Committee chooses to use these alternative means, any elections, directions or
forms submitted in accordance with the rules and procedures promulgated by the
EDCP Committee will be deemed to satisfy any provision of this Plan calling for
the submission of a written election, direction or form.

                                     * * * *

         To signify its adoption of this Executive Supplemental Savings Plan,
the Company has caused this Plan document to be executed by a duly authorized
officer of the Company on this 25th day of July, 2001.

                                       Harrah's Entertainment, Inc.

                                       By: /s/ MARILYN G. WINN
                                           ------------------------
                                           Marilyn G. Winn
                                           Senior Vice President

                                       41<Page>
                                                                    Exhibit 10.4

                                 TRUST AGREEMENT
                                 ---------------

         This Agreement made this 20th day of June, 2001 by and between Harrah's
Entertainment, Inc., One Harrah's Court, Las Vegas, NV 89119 (the "Company") and
Wells Fargo Bank Minnesota, N.A. (the "Trustee" or "Wells Fargo");

                                    RECITALS

         (a) WHEREAS, the Company has adopted the Non-Management Directors Stock
Incentive Plan (the "Plan") attached hereto as Exhibit A.

         (b) WHEREAS, the Company has incurred or expects to incur liability
under the terms of the Plan with respect to the individuals and their
beneficiaries covered by the Plan ("Participants");

         (c) WHEREAS, the Company has established this trust (which was
initially established on November 7, 1997 with Bank of America successor to
NationsBank) and wishes to continue the trust pursuant to this Agreement (the
"Trust") and to continue contributing assets to the Trust that will be held in
the Trust, subject to the claims of the Company's creditors in the event of the
Company's Insolvency, as herein defined, until either paid to Participants or

<Page>

returned to the Company in such manner and at such times as specified in this
Agreement;

         (d) WHEREAS, it is the intention of the parties that the Trust shall
not affect the status of the deferred provisions of the Plan as an unfunded
arrangement;

         (e) WHEREAS, it is the intention of the Company to continue to make
contributions to the Trust to provide a source of funds to assist meeting its
liabilities under the Plan; and

         (f) WHEREAS, references to the "Company" herein include Harrah's
Entertainment, Inc., and any successor to its obligations under the Plan.

         NOW, THEREFORE, the parties do hereby establish the Trust to continue
as the successor to the trust with Bank of America, as amended hereby, and agree
that the Trust shall be comprised, held and disposed of as follows:

         Section 1. ESTABLISHMENT OF TRUST

         (a) The Company initially deposited, with the original Trustee in
trust, 26,164 shares of the Company's Common Stock, which became the initial
principal of the Trust to be held, administered and disposed of by the Trustee
as provided in this Agreement. The Trust became effective upon

                                       2
<Page>

the original Trustee's receipt of this deposit. The Company will instruct Bank
of America to transfer all of the assets in the Trust to Wells Fargo as soon as
practical following the signing of this Agreement.

         (b) The Trust hereby established shall be irrevocable except as
provided herein.

         (c) The Trust is intended to be a grantor trust, of which the Company
is the grantor, within the meaning of Subpart E, Part I, Subchapter J, Chapter
1, Subtitle A of the Internal Revenue Code of 1986, as amended, and shall be
construed accordingly.

         (d) The principal of the Trust, and any earnings thereon, shall be held
separate and apart from other funds of the Company and shall be used exclusively
for the uses and purposes of Participants and general creditors as herein set
forth except when this Agreement permits or requires such funds to be returned
to the Company. Participants shall have no preferred claim on, or any beneficial
ownership interest in, any assets of the Trust. Any rights created under the
Plan and this Agreement shall be mere unsecured contractual rights of
Participants against the Company. Any assets held by the Trust will be subject
to the claims of the Company's general creditors under federal and state law in
the event of Insolvency, as defined in Section 3(a) herein.

                                       3
<Page>

         (e) Within ninety (90) days following the end of each plan quarter
originally starting the quarter ending September 30, 1997, the Company shall
irrevocably deposit additional cash or other property into the Trust (which may
include the Company's Common Stock or other securities) so that the Trust has an
amount sufficient to distribute to each Participant the benefits payable
pursuant to the terms of the Plan as of the close of such quarter assuming such
benefits were then payable in full.

Section 2. PAYMENTS TO PLAN PARTICIPANTS AND THEIR BENEFICIARIES.

         (a) Within 60 days following the execution of this Agreement, the
Company shall deliver to the Trustee a schedule (the "Payment Schedule") that
indicates the amounts payable in respect of each Participant or that provides a
formula or other instructions acceptable to the Trustee for determining the
amounts so payable, the form in which such amount is to be paid (as provided for
or available under the Plan), and the time of commencement for payment of such
amounts. The Payment Schedule will be updated periodically as necessary, but not
less than annually, by the Company.

         (b) If the Company does not make payment or deliver stock or securities
sufficient to satisfy any distribution

                                       4
<Page>

obligation under the Plan to a Participant when due, the Participant will be
entitled to deliver to the Trustee a written notice (the "Participant's Notice")
setting forth instructions for the distribution obligation the Participant
believes is due under the Plan. The Trustee will deliver a copy of the
Participant's Notice to the Company within ten (10) business days of receipt
thereof. If the Company does not, within ten (10) business days after receiving
a copy of the Participant's Notice, deliver written notice to the Trustee
objecting to the payment instructions contained in the Participant's Notice on
the grounds that such distribution is not due under the Plan, the Trustee shall
make the distribution referred to in the Participant's Notice. Such distribution
shall be such amount of Company stock or other securities or trust assets as the
Trustee deems reasonably appropriate to satisfy the instructions in the
Participant's Notice. The Trustee will use its best efforts to deliver Company
stock or successor securities in satisfaction of the Plan's obligations. If it
is necessary to liquidate or sell any securities in Trust for this purpose, the
Trustee may undertake such liquidation or sale as soon as possible in order to
obtain the necessary assets for the distribution. The Trustee shall not be
liable to anyone for making distributions in good faith in accordance with the
terms of this Section.

                                       5
<Page>

         (c) If the Company delivers timely written notice to the Trustee
objecting to the distribution to the Participant on the grounds that such
distribution is not due under the Plan, the Trustee shall deliver a copy of such
notice to the Participant within five (5) business days of the Trustee's receipt
thereof. The Trustee shall then make the distribution to cover the obligation
set forth in the Participant's Notice (unless the Company objects on the grounds
that the distribution has already been made or has already been fully satisfied
in which event the procedures at the end of this section 2(c) shall apply)
within five (5) business days after receipt from the Participant of a written
undertaking, in the form attached hereto as Exhibit B, to indemnify and hold
harmless the Trustee and the Company from and against all losses or claims which
may result from any incorrect distribution which is made to the Participant
pursuant to the Participant's Notice.

If the Company gives written notice to the Trustee objecting on the grounds that
the requested distribution has already been made or has been fully satisfied and
the Company provides the Trustee with written documentation substantiating such
fact, the Trustee shall not make the distribution from the Trust. If the Company
does not, within twenty (20) business days after receipt of the

                                       6
<Page>

Participant's Notice, confirm that such distribution has been made or has been
fully satisfied by the Company, then the Trustee shall make the required
distribution to the Participant sufficient to satisfy, as reasonably determined
by the Trustee, the obligation described in the Participant's Notice after
receiving from the Participant the written undertaking in the form attached as
Exhibit B.

         (d) It is understood the Company is required to distribute benefits
directly to Participants as they become due under the terms of the Plan. To the
extent the Company from time to time makes distributions under the Plan which
the Trust is intended to protect, the Trustee shall, upon written request of the
Company's Controller or Assistant Controller, promptly reimburse the Company for
any such distribution by returning Trust assets to the Company equal in value to
the distribution or equal to the amount of securities that were distributed to
Participants. Such reimbursement shall be made within ten (10) days after a
written notice is delivered by the Company's Controller or Assistant Controller
to the Trustee setting forth the specific distribution made by the Company, who
received the distribution and the date thereof, and the form and amount of
assets to be returned to the Company (cash and/or securities).

                                       7
<Page>

         (e) The entitlement of a Participant to benefits under the Plan shall
be determined in accordance with the terms of the Plan, and any claim for such
benefits shall be considered and reviewed under the procedures set out in the
Plan.

         (f) If at the end of any quarter the principal of the Trust, and any
earnings thereon, will not be sufficient to make payments of Plan benefits as if
they were then payable in full as determined by the Company, the Company shall
within ninety (90) days after the end of the quarter deposit additional cash or
other assets or securities (which may include Company stock) into the Trust to
the extent necessary to keep the Trust fully funded so it will have the
capability of distributing to all Participants their benefits valued at the end
of such quarter. The Trustee is under no duty to compel contributions to the
Trust.

         (g) The Company will be responsible for satisfying all federal, state
or local tax reporting obligations that may be required with respect to the
payment of benefits, the performance of services to which the benefits relate,
and the vesting of benefits pursuant to the terms of the Plan or Trust
Agreement. The amount withheld and time at which such

                                       8
<Page>

taxes are considered to be due and payable shall be determined by the Company.
The Company will provide the Trustee with instructions regarding the appropriate
amount of withholding and the Trustee will not be liable for damages for
withholding in accordance with such instructions. Trustee will pay amounts
withheld to Company for remittance by Company to the appropriate taxing
authorities. If the Trustee does not receive such instructions, the Trustee is
not required to withhold any amount from the payment.

If the Trustee is required to make payments pursuant to the terms of this Trust,
the Trustee will promptly make a written request to the Company for withholding
instructions. If the Company does not give withholding instructions to Trustee
within ten business days after receiving this request, then Trustee will
withhold and remit to appropriate authorities such withholding taxes as Trustee
deems are necessary. The Company, not the Trustee, will be responsible for FICA
or FUTA taxes that apply unless the Trustee is advised by its counsel or
required by court order to apply these taxes. The Trustee will promptly report
any payments and withholdings to the Company. The Company will then be
responsible for all reporting obligations to governmental authorities and will
hold the Trustee harmless

                                       9
<Page>

from such reporting obligations and from any withholding decisions made by
Trustee under this paragraph.

Notwithstanding the foregoing, to the extent that the Participants are not
employees of the Company, it is understood that the Trustee shall not withhold
any amounts for income tax, FICA or FUTA. The Trustee has no responsibility to
advise the Company as to the taxability or deductibility of contributions to or
distributions from the Trust, or gains or losses thereon, whether with regard to
income, FICA, FUTA, or other taxes, and Company acknowledges that it has not and
will not rely on Trustee for such purposes.

Section 3. TRUSTEE RESPONSIBILITY REGARDING PAYMENTS TO TRUST BENEFICIARY WHEN
COMPANY IS INSOLVENT.

         (a) The Trustee shall cease distributions to Participants if the
Company is Insolvent. The Company shall be considered "Insolvent" for purposes
of this Agreement if (i) the Company is unable to pay its debts as they become
due, or (ii) the Company is subject to a pending proceeding as a debtor under
the United States Bankruptcy Code.

                                       10
<Page>

         (b) At all times during the continuance of this Trust, as provided in
Section 1 hereof, the principal and income of the Trust shall be subject to
claims of general creditors of the Company under federal and state law as set
forth below:

         (1) The Board of Directors of the Company or the Chief Executive
Officer of the Company will have the duty to notify the Trustee in writing of
the Company's Insolvency. If such a writing is given to the Trustee, the
determination of Insolvency shall be deemed made on the date the Trustee
receives such written notice. In addition, if three or more persons claiming to
be creditors of the Company allege in writing to the Trustee, within a period of
five business days, that the Company has become Insolvent, the Trustee shall,
within a reasonable time, determine whether the Company is Insolvent and,
pending such determination, the Trustee shall discontinue payment of benefits to
Participants. If the Trustee does not determine that the Company is Insolvent
within thirty (30) business days after receiving the last written notice from
the three or more persons claiming, within a period of five business days, to be
a creditor of the Company alleging such Insolvency, then the Company will be
deemed solvent on the 30th day after the receipt of such notice unless and until
a determination is

                                       11
<Page>

subsequently made by the Trustee that the Company is Insolvent.

         (2) Unless the Trustee has actual knowledge of the Company's
Insolvency, or has received written notice from the Chief Executive Officer of
the Company or from the Company's Board of Directors or from three or more
persons claiming to be creditors alleging, within a period of five business
days, that the Company is Insolvent, the Trustee shall have no duty to inquire
whether the Company is Insolvent. The Trustee may in all events rely on such
evidence concerning the Company's solvency as may be furnished to the Trustee
and that provides the Trustee with a reasonable basis for making a determination
concerning the Company's solvency.

         (3) If at any time the Trustee has determined that the Company is
Insolvent, the Trustee shall discontinue distributions to Participants, shall
notify the Company in writing of such determination, and shall hold the assets
of the Trust for the benefit of the Company's general creditors. Nothing in this
Trust Agreement shall in any way diminish any rights of Participants to pursue
their rights as general creditors of the Company with respect to benefits due
under the Plan or otherwise.

                                       12
<Page>

         (4) If the Trustee determines the Company is Insolvent, the Trustee
shall resume the distribution of benefits to Participants in accordance with
Section 2 of this Agreement only after the Trustee has determined that the
Company is not Insolvent (or is no longer Insolvent). If the Trustee receives
written notice from the Company's Chief Executive Officer or Board of Directors
that the Company is not Insolvent (or is no longer Insolvent), then the Trustee
will make reasonable inquiry as to the Company's solvency. If the Trustee does
not determine the Company is Insolvent within thirty (30) days after receiving
such written notice, then the Trustee's determination of solvency shall be
deemed made as of the 30th day following receipt of such notice.

         (c) Provided that there are sufficient assets in the Trust, if the
Trustee discontinues the distribution of benefits from the Trust pursuant to
Section 3(b) hereof and subsequently resumes such payments, the first
distribution to any Participant following such discontinuance shall include the
aggregate amount of all distributions due to the Participant under the terms of
the Plan for the period of such discontinuance less the aggregate amount of any

                                       13
<Page>

distributions made to the Participant by the Company under the Plan during any
such period of discontinuance.

         Section 4. PAYMENTS TO THE COMPANY.

         Except as provided in this Agreement, the Company shall have no right
or power to direct the Trustee to return to the Company or to divert to others
any of the Trust assets before all payment of benefits have been made to
Participants pursuant to the terms of the Plan.

         Section 5. INVESTMENT AUTHORITY.

         (a) The Trustee may, and is expressly authorized to, invest in
securities (including stock or rights to acquire stock) or obligations issued by
the Company. All rights associated with assets of the Trust shall be exercised
by the Trustee or the person designated by the Trustee, and shall in no event be
exercisable by or rest with Participants, except that all voting and decisional
rights including but not limited to rights to decide whether to tender such
shares in a tender offer with respect to trust assets including the Company's
Common Stock will be exercised by the Company. The Trustee will follow the

                                       14
<Page>

Company's instructions in this regard. The Company shall have the right at
anytime, and from time to time in its sole discretion, to substitute assets of
equal fair market value for any asset held by the Trust. This right is
exercisable by the Company in a nonfiduciary capacity without the approval or
consent of any person in a fiduciary capacity.

         (b) Since distributions from the Trust to Participants will be in the
form of the Company's Common Stock or successor securities or will be directly
based on the value of the Company's Common Stock (or successor securities), the
Company hereby requests the Trustee to invest all cash deposits (or other
non-Company stock deposits) in Common Stock of the Company as soon as possible
after such deposits are made by the Company into the Trust. The Trustee may also
invest in (without having any liability to Participants or the Company for doing
so or not doing so): (1) direct obligations of the United States or its agencies
(or obligations unconditionally and fully guaranteed as to principal and
interest by the United States or its agencies) in each case maturing within one
year from date of acquisition; (2) negotiable certificates of deposit issued by
any commercial bank (including Wells Fargo or its affiliates) organized and
existing under U.S. Laws or the laws of any state having combined capital and
surplus of at

                                       15
<Page>

least $500 million; (3) money market funds including, but not limited to, any
money market fund maintained by Wells Fargo or its affiliates. No investments
other than those described in Section 5(a) or 5(b) herein will be made by the
Trustee unless otherwise agreed in writing by the Company and the Trustee.

         (c) The Trustee will not be liable for any failure to maximize the
income earned on funds in the Trust nor for any losses due to liquidation of any
investment which the Trustee, in its sole discretion, believes necessary to make
any distribution under the terms of the Trust. The Trustee will have no
liability if Trust assets are insufficient to satisfy any obligation to
Participants.

         Section 6. CERTAIN FUNDING PROVISIONS

         (a) All interest, income and appreciation in value of investments shall
constitute part of the Trust assets. Any dividends, interest or income shall be
reinvested and the Company requests that such reinvestments be in the Company's
Common Stock (or successor securities). All losses of income or principal
including any expenses of the Trustee charged against the Trust will be the
responsibility of the Company and in the event of such losses the Company shall
promptly deposit sufficient assets into the Trust to insure it is

                                       16
<Page>

fully funded. The Trustee has no duty to compel contributions to the Trust.

         (b) The Trust shall be fully funded if the market value of the Trust
assets is equal to or greater than the value of the stock rights of Participants
in the Plan as measured by the market value of the Company's Common Stock (or
successor securities) on the day the assets are valued.

         Section 7. ACCOUNTING BY TRUSTEE.

         The Trustee shall keep accurate and detailed records of all
investments, receipts, disbursements, and all other transactions required to be
made, including such specific records as shall be agreed upon in writing between
the Company and the Trustee. Within 90 days following the close of each calendar
year and within 30 days after the removal or resignation of the Trustee, the
Trustee shall deliver to the Company a written account of its administration of
the Trust during such year or during the period from the close of the last
preceding year to the date of such removal or resignation, setting forth all
investments, receipts, disbursements and other transactions effected by it,
including a description of all securities and investments purchased and sold
with the cost or net proceeds of such

                                       17
<Page>

purchases or sales (accrued interest paid or receivable being shown separately),
and showing all cash, securities and other property held in the Trust at the end
of such year or as of the date of such removal or resignation, as the case may
be.

         Section 8. RESPONSIBILITY OF TRUSTEE.

         (a) The Trustee shall act with the care, skill, prudence and diligence
under the circumstances then prevailing that a prudent person acting in like
capacity and familiar with such matters would use in the conduct of an
enterprise of a like character and with like aims, provided, however, that the
Trustee shall incur no liability to any person for any action taken pursuant to
a direction, request or approval given by the Company which is contemplated by,
and in conformity with, the terms of the Plan or this Trust and is given in
writing by the Company. In the event of a dispute between the Company and a
party, the Trustee may apply to a court of competent jurisdiction to resolve the
dispute.

                                       18
<Page>

         (b) If the Trustee undertakes or defends any litigation arising in
connection with this Trust, the Company agrees to indemnify the Trustee against
the Trustee's costs, expenses and liabilities (including, without limitation,
reasonable attorneys' fees and expenses) relating thereto and to be primarily
liable for such payments. If the Company does not pay such costs, expenses and
liabilities in a reasonably timely manner, the Trustee may obtain payment from
the Trust.

         (c) The Trustee may consult with legal counsel (who may also be counsel
for the Company or the Trustee generally) with respect to any of its duties or
obligations hereunder.

         (d) The Trustee may hire agents, accountants, attorneys, actuaries,
investment advisors, financial consultants or other professionals to assist it
in performing any of its duties or obligations hereunder.

         (e) The Trustee shall have, without exclusion, all powers conferred on
the Trustees by applicable law, unless expressly provided otherwise herein.

                                       19
<Page>

         (f) Notwithstanding any powers granted to the Trustee pursuant to this
Agreement or under applicable law, the Trustee shall not have any power that
could give this Trust the objective of carrying on a business and dividing the
gains therefrom, within the meaning of section 301.7701-2 of the Procedure and
Administrative Regulations promulgated pursuant to the Internal Revenue Code.

         (g) The Trustee does not warrant and shall not be liable for any tax
consequences associated with the Trust or the Plan.

         (h) The Trustee shall have no duty to determine or inquire whether any
contributions to the Trust are in compliance with the Plan or the Trust, or to
compute any amount to be paid to the Trustee; nor shall the Trustee be
responsible for the collection or adequacy of any contributions to the Trust or
for the adequacy of the Trust to meet and discharge liabilities to Participants
under the Plan or to other creditors of the Company.

         (i) Company acknowledges its responsibility to report annual income of
the Trust on its corporate returns, notwithstanding whether it has made
arrangements to receive annual Forms 1041 from the Trustee.

                                       20
<Page>

         (j) In any judicial proceeding between the Company and the Trustee with
respect to the Trustee or the Trust, the Trustee and the Company shall be the
only necessary parties; and no Participant shall be entitled to any notice of
process. A final judgment in any such proceeding shall be binding upon the
parties to the proceeding and all Participants.

         (k) If all or any part of the Trust is at any time attached, garnished,
or levied upon by a court order which is in full force and effect and has not
been stayed, or in case the payment, assignment, transfer, conveyance or
delivery of any such property shall be stayed or enjoined by any court order
which is in full force and effect and has not been stayed or in case an order,
judgment or decree that is in full force and effect and has not been stayed
shall be made or entered by a court affecting such property or any part thereof,
then and in any of such events the Trustee is authorized, in its sole
discretion, to rely upon and comply with any such order, judgment or decree
while it is in full force and effect and has not been stayed, and it shall not
be liable to the Company or any Participant by reason of such compliance even
though such order, judgment or decree shall subsequently may be reversed,
modified, annulled, set aside or vacated.

                                       21
<Page>

Section 9. COMPENSATION AND EXPENSES OF THE TRUSTEE.

         The Company shall pay all administrative and Trustee's fees and
expenses as well as the expenses of any third parties hired by the Trustee to
assist it in performing any of its duties or obligations hereunder. If not so
paid, the fees and expenses shall be paid from the Trust. The fees payable to
the Trustee are described in Exhibit C as amended by the parties from time to
time.

Section 10.   RESIGNATION AND REMOVAL OF THE TRUSTEE.

         (a) The Trustee may resign at any time by written notice to the
Company, which shall be effective 90 days after receipt of such notice unless
the Company and the Trustee agree otherwise in writing.

         (b) The Trustee may be removed and replaced by the Company on 90 days
notice or upon shorter notice accepted by the Trustee.

                                       22
<Page>

         (c) If the Trustee resigns or is removed, and if a successor trustee
has not been appointed, the Trustee may select a successor trustee pursuant to
the procedures of section 11(b) hereof prior to the effective date of the
Trustee's resignation or removal.

         (d) Upon resignation or removal of the Trustee and appointment of a
successor Trustee, all assets shall subsequently be transferred to the successor
Trustee. The transfer shall be completed within 30 days after the resignation or
removal unless the Company extends the time limit.

         (e) If the Trustee resigns or is removed, a successor shall be
appointed, in accordance with Section 11 hereof, by the effective date of
resignation or removal. If no such appointment has been made, the Trustee may
apply to a court of competent jurisdiction for appointment of a successor or for
instructions. All expenses of the Trustee in connection with the proceeding
shall be allowed as administrative expenses of the Trust and shall be payable by
the Company..

     Section 11.   APPOINTMENT OF SUCCESSOR.

                                       23
<Page>

         (a) If the Trustee resigns or is removed in accordance with section 10
hereof, the Company shall appoint a third party, such as a bank trust department
or other party that may be granted corporate trustee powers under state law, as
a successor to replace the Trustee upon such resignation or removal. The
appointment shall be effective when accepted in writing by the new Trustee, who
shall have all of the rights and powers of the former Trustee under this
Agreement, including ownership rights in the trust assets. The former Trustee
shall execute any instrument necessary or reasonably requested by the Company or
the successor Trustee to evidence the transfer.

         (b) If the Trustee resigns or is removed pursuant to the provisions of
section 10 hereof and the Company fails to appoint a successor trustee, the
Trustee may then select a successor Trustee. The Trustee may, in selecting a
successor Trustee, appoint any third party such as a bank trust department or
other party that may be granted corporate trustee powers under state law. The
appointment of a successor trustee shall be effective when accepted in writing
by the new Trustee. The new Trustee shall have all the rights and powers of the
former Trustee under this agreement, including ownership rights in trust assets.
The former Trustee shall execute any instrument necessary or

                                       24
<Page>

reasonably requested by the successor Trustee to evidence the transfer.

         (c) The successor Trustee need not examine the records and acts of any
prior Trustee and may retain or dispose of existing trust assets, subject to
this Agreement. The successor Trustee shall not be responsible for, and the
Company shall indemnify and defend the successor Trustee from, any claim or
liability resulting from any action or inaction of any prior Trustee or from any
other past event or any condition existing at the time it becomes successor
Trustee.

         Section 12. AMENDMENT OR TERMINATION.

         (a) This Trust Agreement may be amended by a written instrument
executed by the Trustee and the Company. Notwithstanding the foregoing, no such
amendment shall conflict with the terms of the Plan, shall make the Trust
revocable without the written consent of all Participants, nor shall materially
and adversely affect the substantive rights of Participants without the written
consent of all Participants. The Trustee shall have no duty to determine whether
an amendment conflicts with the terms of the Plan or

                                       25
<Page>

materially and adversely affects the substantive rights of Participants.

         (b) The Trust shall not terminate until the date on which Participants
are no longer entitled to benefits pursuant to the terms of the Plan unless
sooner revoked in accordance with section 12(a) hereof. The Trustee may rely on
instructions from the Company that all benefits have been paid pursuant to the
Plan. However, upon written consent of all Participants who are entitled to
benefits at any time pursuant to the terms of the Plan, the Company may
terminate this Trust prior to the time all benefit payments under the Plan have
been made. All assets in the Trust at termination shall be returned to the
Company.

         Section 13. MISCELLANEOUS.

         (a) Any provision of this Trust Agreement prohibited by law shall be
ineffective to the extent of any such prohibition, without invalidating the
remaining provisions hereof.

         (b) Benefits payable to Participants under this Trust Agreement may not
be anticipated, assigned (either at law or in equity), alienated, pledged,
encumbered or subjected to

                                       26
<Page>

attachment, garnishment, levy, execution or other legal or equitable process,
except upon death. In the event of a Participant's death, the Participant's
estate or legal beneficiary shall be entitled to Participant's rights.

         (c) This Trust Agreement shall be governed by and construed in
accordance with the laws of Nevada.

         (d) Any notice, demand, waiver or other communication required or
permitted under this Agreement will be in writing and will be given personally,
by Fax, certified mail, or by Federal Express or other overnight courier
service, will be deemed given when received, and will be addressed as follows:

If to the Company:                          Harrah's Entertainment, Inc.
                                            One Harrah's Court
                                            Las Vegas, NV 89119
                                            Attn: Secretary
                                            Fax:  (702) 407-6284

If to the Trustee:                          Wells Fargo Bank Minnesota, N.A.
                                            3300 West Sahara Avenue,
                                            Suite 106
                                            Las Vegas, NV 89102
                                            Fax:  (702) 765-3195

                                       27
<Page>

Any notice to a Participant will be sent by certified mail or by Federal Express
or other overnight courier service to the Participant's last known address.

         (e) Each Participant will be a third party beneficiary of this
Agreement and will be entitled to enforce the Agreement as it applies to such
Participant.

         (f) This Agreement is the complete agreement of the parties with
respect to the subject matter hereof and supersedes any prior agreements or
understandings relating thereto.

         (g) This Agreement is binding on the parties hereto and their
respective successors and legal representatives.

         (h) The Company and the Trustee will, at any time and from time to
time, upon the reasonable request of the other party, execute and deliver such
further instruments and do such further acts as may be necessary or proper to
effectuate the purposes of this Agreement.

                                       28
<Page>

IN WITNESS WHEREOF, this Agreement has been executed as of the date written
above.

HARRAH'S ENTERTAINMENT, INC.

By:     /s/ ELAINE LO
        -----------------------

Title:  Vice President - Compensation & Benefits
        ----------------------------------------

WELLS FARGO BANK MINNESOTA, N.A.

By:     /s/ DAWN R. LAKE
        -----------------------

Title:  Assistant Vice President
        -------------------------

                                       29
<Page>
                                                                       EXHIBIT A

                        THE PROMUS COMPANIES INCORPORATED
               1996 NON-MANAGEMENT DIRECIORS STOCK INCENTIVE PLAN

      1. PURPOSE. The purpose of The Promus Companies Incorporated 1996
Non-Management Directors Stock Incentive Plan (the "Plan") is to attract, retain
and compensate highly-qualified individuals who are not employees of The Promus
Companies Incorporated,-a Delaware corporation (the "Company") or any of its
subsidiaries or affiliates for service as members of the Board of Directors
("Non- Management Directors") by providing them with an ownership interest in
the common stock of the Company ("Common Stock"). The Company intends that the
Plan will benefit the Company and its stockholders by allowing Non-Management
Directors to have a personal financial stake in the Company through an ownership
interest in the Common Stock and will closely associate the interest of Non-
Management Directors with that of Promus's stockholders.

      2. ADMINISTRATION. The Plan shall be administered by a committee appointed
by the Board of Directors of the Company and consisting of Directors who are not
eligible to participate in the Plan (the "Committee"). Subject to the provisions
of the Plan, the Committee shall be authorized to interpret the Plan, to
establish, amend and rescind any rules and regulations relating to the Plan, and
to make all other determinations necessary or advisable for the administration
of the Plan; PROVIDED, HOWEVER, that the Committee shall have no discretion with
respect to the eligibility or selection of Non~Management Directors to receive
awards under the Plan, the number of shares of stock subject to any such awards
or the time at which any such awards are to be granted; and PROVIDED FURTHER,
that the Committee shall not have the authority to take any action or make any
determination that would materially increase the benefits accruing to
participants under the Plan. The Committee's interpretation of the Plan, and all
actions taken and determinations made by the Committee pursuant to the powers
vested in it hereunder, shall be conclusive and binding upon all parties
concerned including the Company, its stockholders and persons granted awards
under the Plan.

      3. SHARES SUBJECT TO PLAN. The shares issued under the Plan shall not
exceed in the aggregate 150,000 shares of Common Stock. Such shares may be
authorized and unissued shares or treasury shares.

      4. PARTICIPANTS. All active members of the Company's Board of Directors
who are not as of the date of any award employees of the Company or any of its
subsidiaries or affiliates shall be eligible to participate in the Plan.

5. AWARDS

            (a) GRANT DATES AND FORMULA FOR AUTOMATIC GRANTS. Shares of Common
      Stock shall be: automatically granted on May 1, August I, November 1 and
      February 1 of each plan year (each such date: is hereinafter referred to
      as a "Grant Date:") to each eligible: Non-Management Director commencing
      with the August 1, 1996 Grant Date. The total number of shares included in
      each grant under this Section 5(a) shall be: determined by dividing Fifty
      Percent (50%) of the: amount of meeting and retainer fees (the "50% of
      Fees") earned by the Non-Management Director during the: three-month
      period immediately preceding the Grant Date (the: "Grant Period") by the:
      fair market value per share of the: Common Stock on the: Grant Date (or
      the immediately preceding trading day if the Grant Date: is not a trading
      day). The: fair market value: per share: shall be: the average of the high
      and low price: of the: Common Stock based upon its consolidated trading as
      generally reported for the principal securities exchange on which the
      Common Stock is listed. Fractions will be rounded to the next highest
      share. The shares or rights to which a participant is entitled under this
      Section 5(a) shall be in lieu of the payment in cash of the 50% of Fees.

<Page>

            (b) GRANT DATES AND REQUIREMENTS FOR ELECTIVE GRANTS. Commencing
      with the August 1, 1996 Grant Date, shares of Common Stock shall be
      automatically granted on each Grant Date to each eligible Non-Management
      Director who elects to receive shares under this Plan in lieu of the
      portion of the amount of meeting and retainer fees earned by the
      Non-Management for any period which is in excess of the 50% of Fees (the "
      Additional 50% of Fees"). Such election must be made prior to the
      commencement of the first Grant Period to which such election applies and
      such election shall be irrevocable with respect to all future Grant
      Periods. Individuals who arc nominated to become Non-Management Directors
      may make such election after such nomination but prior to the time that
      they are elected to the Board. The total number of shares included in cash
      grant under this Section 5(b) shall be determined by dividing the
      Additional 50% of Fees earned by the Non-Management Director during the
      Grant Period by the fair market value per share of the Common Stock on the
      Grant Date (or the immediately preceding trading day if the Grant Date is
      not a trading day). The fair market value per share shall be the average
      of the high and low price of the Common Stock based upon its consolidated
      trading as generally reported for the principal securities exchange on
      which the Common Stock is listed. Fractions will be rounded to the next
      highest share. The shares or rights to which a participant is entitled
      under this Section 5(b) shall be in lieu of the payment in cash of the
      Additional 50% of Fees.

            (c) RESTRICTIONS UPON TRANSFER. Shares awarded, and the right to
      vote such shares and to receive dividends thereon, may not be sold,
      assigned, transferred, exchanged, pledged, hypothecated, or otherwise
      encumbered until at least six months after the date of the grant (the
      "Restriction Period"). During the Restriction Period the participant shall
      have all other rights of a stockholder, including, but not limited to, the
      right to vote and to receive dividends on such shares. If as a result of a
      stock dividend (whether in securities of the Company or of any other
      company), stock split, spin-off, recapitalization, other adjustment in the
      stated capital of the Company, or as the result of a merger,
      consolidation, reclassification or other reorganization, or any other
      corporate transaction, Common Stock is increased, reduced, or otherwise
      changed, and by Virtue thereof the participant shall be entitled to new or
      additional or different shares or if the participant receives new or
      additional or different shares pursuant to any action by the Committee
      pursuant to Section 10, such shares shall be subject to the same terms,
      conditions and restrictions as the original shares.

            (d) CERTIFICATES. Each stock certificate issued in respect of shares
      awarded to a participant may bear an appropriate legend disclosing the
      restrictions on transferability imposed on such shares by the Plan or by
      law.

            (e) TERMINATION OF SERVICE DURING GRANT PERIOD. In the event of
      termination of service on the Board by any participant during a Grant
      Period, such participant's award for the Grant Period shall be determined
      in accordance with Sections 5(a) and 5(b) of the Plan based upon the
      amount of meeting and retainer fees earned during such Grant Period as of
      the date of termination of service, PROVIDED. that the grant date shall be
      the date of termination of service unless the grant has been deferred.

      6. WITHHOLDING. Whenever the Company issues shares of Common Stock under
the Plan, the Company shall have the right to withhold from sums due the
recipient, or to require the recipient to remit to the Company, any amount
sufficient to satisfy any federal, state and/or local withholding tax
requirements prior to the delivery of any certificate for such shares.

      7. DEFERRAL. Each participant will have the: right to elect, pursuant to a
written election form delivered to the Company prior to the commencement of each
plan year (LE., each May 1 through April 30), to defer until after the
participant's termination of service the grant of the: shares that would
otherwise be granted to the participant during the next ensuing plan year.
Pursuant to this election form, the participant will elect whether all of the
deferred grant will be (a) granted within 30 days after termination of service
or (b) granted in approximately equal annual installments of shares over a
period of two to ten years (as the participant may elect) after the termination
of service, each such annual.

                                       -2-
<Page>

grant to be made within 30 days after the anniversary of the termination of
service. The deferral election form signed by the executive prior to the plan
year will be irrevocable except in case of hardship (as defined in Section 8) as
determined in good faith by the Committee pursuant to Section 8. No shares of
stock will be issued until the grant date as so deferred (the "Deferred Grant
Date") at which time the Company agrees to issue the shares to the participant.
The participant will have no rights as a stockholder with respect to the
deferred rights to shares and the rights to such shares will be unsecured.

      If any dividends or other rights or distributions of any kind
("Distributions") are distributed to holders of Common Stock during the period
from the applicable Grant Date until the applicable Deferred Grant Date (the
"Deferral Period") but prior to the participant's termination of service, an
amount equal to the cash value of such Distributions on their distribution date,
as such value is determined by the Committee, will be credited to a deferred
dividend account for the participant as follows: the account will be credited
with the right to shares of Common Stock equal in value to the cash value of the
Distribution with such values determined by the Committee as of the date of the
Distribution. The Company will issue shares of stock equal to the cumulative
total of rights to the shares in such account within 30 days after the
participant's termination of service. If a Distribution is distributed to
holders of Common Stock after the participant's termination of service but
during the Deferral Period, an amount equal to the cash value of such dividends
or other rights or distributions pertaining to any share rights still deferred
shall be converted into shares of Common Stock equivalent in value to the
Distribution (with such values measured as of the date of Distribution) and such
shares will be issued to the participant as soon as practical after the date of
the Distribution. No right or interest in the deferred dividend account shall be
subject to liability for the debts, contracts or engagements of the participant
or shall be subject to disposition by transfer, alienation, anticipation,
pledge, encumbrance, assignment or any other means whether such disposition be
voluntary or involuntary or by operation of law by judgment, levy, attachment,
garnishment or any other legal or equitable proceedings (including bankruptcy),
and any attempted disposition thereof shall be null and void and of no effect;
PROVIDED, HOWEVER, that nothing in this Section 7 shall prevent transfers by
will or by the applicable laws of descent and distribution. The Committee will
have the right to adopt other regulations and procedures to govern deferral of
grants.

      8. HARDSHIP. The Committee; may accelerate the distribution of all or a
portion of a participant's deferred grants on account of his Hardship, subject
to the following requirements: (i) the value of such accelerated distribution
shall not exceed the amount which is necessary to satisfy the Hardship, less the
amount which can be satisfied from other resources which are reasonably
available to the participant, (ii) the denial of the participant's request for a
Hardship acceleration would result in severe financial hardship to the
participant, and (iii) the participant has not received an accelerated
distribution on account of Hardship within the 12-month period preceding the
acceleration.

      For purposes of this Plan, .'Hardship" of a participant, as determined by
the Committee; in its discretion on the basis of all relevant facts and
circumstances and in accordance with the following nondiscriminatory and
objective standards uniformly interpreted and consistently applied, shall mean a
severe financial hardship to the participant resulting from a sudden and
unexpected illness or accident of the participant or of his dependent, loss of
the participant's property due to casualty, or other extraordinary and
unforeseeable circumstances arising as a result of events beyond the control of
the participant. A financial need shall not constitute a Hardship unless it is
for at least $1,0 00.00 or the entire value of the principal amount of the
participant's deferred grants.

      9. SECTION 83(b) ELECTION. Participants shall have the right to make an
election under Section 83(b) of the Internal Revenue Code, if applicable, with
regard to taxation of grants under the Plan.

      10. ADJUSTMENTS.

            (a) Subject to Section 10(c) but notwithstanding any other term of
      this Plan, in the event that the Committee determines that any dividend or
      other distribution (whether in the form of cash,

                                      -3-
<Page>

      Common Stock, other securities, or other property), recapitalization,
      reclassification, stock split, reverse; stock split, reorganization,
      merger, consolidation, split-up, spin-off, combination, repurchase, or
      exchange of Common Stock or other securities of the Company, issuance; of
      warrants or other rights to purchase; Common Stock or other securities of
      the; Company, or other similar corporate; transaction or event, in the;
      Committee's sole; discretion, affects the; Common Stock such that an
      adjustment is determined by the; Committee; to be; appropriate; in order
      to prevent dilution or enlargement of the; benefits or potential benefits
      intended to be; made; available; under the; Plan or with respect to an
      award or awards, then the; Committee; shall, in such manner as it may deem
      equitable, adjust the; number and type; of shares of Common S-tock (or
      other securities or property) which may be; granted under the; Plan
      (including, but not limited to, adjustments of the; maximum number and
      kind of shares which may be issued).

            (b) Subject to Section 10(c) but notwithstanding any other term of
      this Plan, in the; event of any corporate; transaction or event described
      in paragraph (a) which results in shares of Common Stock being exchanged
      for or converted into cash, securities or other property (including
      securities of another corporation), the Committee will have; the; right to
      terminate this Plan as of the; date; of the; transaction or event, in
      which case; all stock grants deferred under Section 7 shall become; the
      right to receive such cash, securities or other property.

            (c) No adjustment or action under this Section 10 or any other
      provision of this Plan shall be authorized to the extent such adjustment
      or action would violate; Section 16 or Rule; 16b-3. The; number of shares
      finally granted under this Plan shall always be rounded to the next whole;
      number.

            (d) Any decision of the Committee; pursuant to the; terms of this
      Section 10 shall be; final, binding and conclusive upon the participants,
      the; Company and all other interested parties.

      11. AMENDMENT. The Committee may tern1inate, modify or amend the Plan in
such respect as it shall deem advisable, without obtaining approval from the.
Company's stockholders except as such approval may be required pursuant to Rule
16b-3 under the. Securities Exchange. Act of 1934, as amended, or Section 16 of
such act, PROVIDED that the provisions of Sections 4 and 5 of the. Plan may not
be amended more than once every six months, other than to comport with changes
in the Internal Revenue Code, the Employee Retirement Income Security Act of
1974, as amended from time to time, or rules thereunder. No termination,
modification or amendment of the Plan may, without the consent of a participant,
adversely affect a participant's rights under an award granted prior thereto.

      12. INDEMNIFICATION. Each person who is or has been a member of the
Committee or who otherwise participates in the administration or operation of
this Plan shall be indemnified by the Company against, and held harmless from
any loss, cost, liability, or expense that may be imposed upon or incurred by
him or her in connection with or resulting from any claim, action, suit, or
proceeding in which such person may be involved by reason of any action taken or
failure to act under the Plan and shall be fully reimbursed by the Company for
any and all amounts paid by such person in satisfaction of judgment against him
or her in any such action, suit, or preceding, PROVIDED he or she will give the
Company an opportunity, by written notice to the. Committee, to defend the same
at the Company's own expense before he or she undertakes to defend it on his or
her own behalf. This right of indemnification shall not be exclusive of any
other rights of indemnification.

      The. Committee and the Board may rely upon any information furnished by
the Company, its public accountants and other experts. No individual will have
personal liability by reason of anything done or omitted to be done by the
Company, the Committee or the Board in connection with the Plan.

      13. DURATION OF THE PLAN. The Plan shall remain in effect for a period of
five (5) years from the Effective Date.

      14. EXPENSES OF THE PLAN. The expenses of administering the Plan shall be
borne by the Company.

                                      -4-
<Page>

      15. EFFECTIVE DATE. The Plan was originally adopted by Promus's Board of
Directors on April 5, 1995 and by the stockholders of Promus on, May 26, 1995.
The Plan will become effective as of the date of the 1996 annual stockholders
meeting (the "Effective Date").

                                       THE PROMUS COMPANIES INCORPORATED

                                       By:   /s/ Neil F. Barnhart
                                           -------------------------------------
                                                    Neil F. Barnhart
                                                     Vice President

                                      -5-
<Page>

                       Amendment (this" Amendment") to the
                          Harrah's Entertainment, Inc.
                1996 Non-Management Directors Stock Incentive Plan
                                 (the "Plan")

         This Amendment is effective  February 20, 1997,  pursuant to
approval by the Committee under the Plan and by the Human Resources Committee
of the Board of Directors of Harrah's Entertainment, Inc. ("Company").

         1. Section 2 of the Plan is hereby amended to add the following
sentence to the end of such section: Notwithstanding  the  foregoing,  the
Human  Resources  Committee  of the Board of  Directors  of the Company (the
"HRC")  shall  exercise  any and all  rights,  duties  and  powers of the
Committee  under the Plan to the extent required by the  applicable
exemptive  conditions  of Rule 16b-3 under the  Securities  Exchange Act of
1934,  as amended ("Rule 16b-3"), as determined by the HRC in its sole
discretion.

         2. The third sentence of the first paragraph of Section 7 of the
Plan is hereby amended to read in its entirety:

The deferral  election form signed by the  participant  prior to the plan
year will be irrevocable  except in case of hardship  (as defined in Section
8) as  determined  in good faith by the HRC  pursuant to Section 8,
provided, however,  that a  participant  may,  prior to  January 1 of the
year  preceding  the year  that the  participant's termination  of  service
occurs,  submit  an  amended  election  form to the HRC for HRC  approval
indicating  a requested  change in the  participant's  elected method for the
grant of the deferred  shares upon  termination of service  (Le.,  as to
either a lump sum of shares  within 30 days after  termination  of service or
approximately equal  annual installments  over a period of two to ten
years),  and upon the HRC's  approval  of the  requested change within 90
days after submission of the requested  change,  such change shall be
effective.  If the HRC does not approve the change, the participant's
original election will remain in effect

      3. Section 8 is hereby amended to add the following sentence to the end of
      such section:

      For purposes of this Section 8, the Committee s~al1 be the HRC.

      4. Section l0(a) of the Plan is hereby amended to add the .following
proviso to the end of such section:

      ; provided, however, that to the extent required by the applicable
      exemptive conditions of Rule 16b-3, any such adjustment shall be subject
      to approval by the HRC.

<Page>

      5. Section l0(b) of the Plan is hereby amended to add the following
      proviso to the end of such section:

      ; provided, however, that to the extent required by the applicable
      exemptive conditions of Rule 16b-3, any such termination shall be subject
      to approval by the HRC.

      6. Section l0(c) of the Plan is hereby amended to provide in its entirety
      as follows:

      (c) No adjustment or action under this Section 10 or any other provision
      of this Plan shall be authorized to the extent such adjustment or action
      would violate Section 16 of the Securities Exchange Act of 1934, as
      amended, or the applicable exemptive conditions of Rule 16b-3. The number
      of shares finally granted under this Plan shall always be rounded to the
      next whole number.

      7. Section 10(d) of the Plan is hereby amended to add the following
proviso to the end of such section: ; provided, however, that to the extent
required by the applicable exemptive conditions of Rule 16b-3, any such decision
shall be subject to approval by the HRC.

      8. Section 11 of the Plan is hereby amended to read in its entirety as
      follows:

      AMENDMENT. The Committee may terminate, modify or amend the Plan in such
      respect as it shall deem advisable, without obtaining approval from the
      Company's stockholders or the HRC except as such approval may be required
      pursuant to the applicable exemptive conditions of Rule 16b-3 or Section
      16 of the Securities Exchange Act of 1934, as amended. No termination,
      modification or amendment of the Plan may, without the consent of a
      participant, adversely affect a participants rights under an award granted
      prior thereto.

                                      ****

Executed and approved this 20th day of February, 1997.

                                     /s/ Philip G. Satre
                                     ------------------------------------------
                                     Philip G. Satre, Chariman, President and
                                     Chief Executive Officer and Sole Member
                                     of the Committee under the Plan

<Page>

                    Amendment dated as of November 15, 2000,
               to the Harrah's Entertainment, Inc. ("the Company")
           Non-Management Directors Stock Incentive Plan (the "Plan")

      Pursuant to approval granted by the Human Resources Committee of the
Company's Board of Directors, the Plan is amended by adding the following
sentence at the end of Section 13:

      "The Plan shall further remain in effect for an additional five-year
      period from April 26, 2001."

      IN WITNESS WHEREOF, this amendment has been executed as of the 15th day of
November, 2000.

                                          Elaine Lo, Vice President
                                          Compensation and Benefits

<Page>
                                                                       Exhibit B

                              INDEMNITY AGREEMENT

      The undersigned, _________________________________ in consideration of
receiving certain disputed benefit payments pursuant to a Trust Agreement dated
June 20, 2001, between Harrah's Entertainment, Inc. (the "Company") and Wells
Fargo Bank Minnesota, N.A. ("Trustee") hereby agrees to indemnify and hold
harmless the Company and the Trustee from and against any and all losses,
damages, expenses, or claims which may result from any incorrect payment or
incorrect benefit which is made to the undersigned pursuant to a notice
delivered by the undersigned to the Trustee.

Dated:  _____________________________       ____________________________________
                                            Participant

<Page>
                                                                       EXHIBIT C

                   WELLS FARGO MASTER TRUST & CUSTODY SERVICES
                       HARRAH'S ENTERTAINMENT, INC. TRUST
                                  FEE SCHEDULE
                                  June 21,2001

   UNIT PRICE

Domestic Administration (on Market Value)                0.000250
                                                         ($5,000 minimum/year)

Accounts                                                 500.00

Domestic Depository Settlements                           10.00

Physical Settlements                                      25.00

Stock-ln-Kind Distributions                               50.00

Money Transactions                                        10.00

Life Insurance Policy Transactions                        15.00

Lump Sum Payment- With Postage                             6.50

ACH Payment                                                2.00

1099 or W2 Issuance -With Postage                          2.00

Wells Fargo Sweep (required)

PRICING NOTES:

This pricing proposal is strictly confidential and for the above referenced
client.

This pricing proposal is good for 90 days and will be guaranteed for a contract
term of 3 years.

Fees are calculated and billed on a quarterly basis.

Wells Fargo Sweep Funds include a management fee (as outlined in the
prospectus).

There is no charge for the collection of interest income and dividends.

This pricing proposal is based on the information provided. Material changes in
the portfolio and/or portfolio activity will warrant a review and potential
adjustment of pricing.

Wells Fargo will pass through out-of-pocket expenses. Reimbursement for
out-of-pocket expenses includes but is not limited to postage, insurance,
shipping, telephone, supplies, microfiche, special handling registration,
special report requests, etc. as well as hourly rate for extra ordinary
time/services (Legal Counsel $200/hour, Senior Management $175/hour, and
Relationship Management $l00/hour).

This pricing proposal assumes no money management performed by Wells Fargo other
than sweeps. Placement of separate account money management at Wells Fargo would
result in a custody fee reduction.

GEORGE DOMBROSKI (SIGNATURE)
------------------------------
      ACKNOWLEDGEMENT

<Page>

                                    WELLS FARGO MASTER TRUST & CUSTODY SERVICES

                                        HARRAH'S ENTERTAINMENT, INC. TRUST
                                               PRICING DESCRIPTIONS
                                                   June 21, 2001

DOMESTIC ADMINISTRATION (ANNUAL CHARGE ON END OF PERIOD ASSETS):

All the day-to-day costs of administering your domestic asset portfolio. This
includes a dedicated Service Team to interact with your investment managers,
timely resolve any issues, process trades and cash movement transactions,
conduct client service reviews, coordinate special requests, interact with audit
and risk management groups, establish guidelines and procedures, and consult
with you on process streamlining opportunities.

ACCOUNTS (PER ACCOUNT):

Monthly, quarterly and annual account statements. This includes all roll-up
reporting and any other reasonably required information, reports, and analysis.
This category also includes maintaining the accounts on our trust system,
holding account assets in depositories and physical vaults, securities pricing
and all expenses related to the production, distribution, and physical archiving
of reports and statements.

DOMESTIC DEPOSITORY SETTLEMENTS (PER TRANSACTION):

The domestic depository and internal operations of settling book-entry
transactions including the related settlement of cash. This includes buys,
sells, free deliveries/receipts, calls, maturities, and principal pay-downs. A
simultaneous buy/sell, buy/maturity, or buy/call would be treated as 2
transactions. The vault, sub-custodian, and internal operations of settling
non-book entry transactions including the related settlement of cash. This would
include buys, sells, free deliveries/receipts, calls, and maturities. We have
the capability to hold physical securities and certificates of deposit in
Minneapolis or New York vaults.

STOCK-IN-KIND DISTRIBUTIONS PER TRANSACTION :

The issuance and delivery of a physical stock certificate to an individual,

<Page>

MORE TRANSACTIONS (PER TRANSACTION):

Processing any inbound or outbound cash movement including wire, check, or
internal account transfers. Security settlement prices are inclusive of any
required cash movement transactions.

LIFE INSURANCE POLICE TRANSACTION (PER TRANSACTION):

The internal operations of establishing a Policy on Trust records, establishing
and maintaining cash surrender value as prescribed, premium payment cost
adjustments, and any other manual transactions or process required.

PERIODIC ACH/ADVICE - WITH POSTAGE (PER TRANSACTION):

Periodic pension distributions via ACH with hard copy advice. Postage is
included.

LUMP SUM PAYMENT - WITH POSTAGE (PER TRANSACTION):

Lump sum payment transactions for the plan. Postage is included.

1099 OR W2 ISSUANCE - WITH POSTAGE (PER TRANSACTION):

Issuing annual 1 099's and/or W2's to participants. Postage is included.

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