Document:

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                                                                    Exhibit 10.3

                                LICENSE AGREEMENT

      THIS LICENSE AGREEMENT (this "Agreement") is made and entered into as of
October 24, 2000 by and between Breakaway Solutions, Inc., a corporation
organized under the laws of the State of Delaware, United States of America
("Licensor"), and Breakaway Solutions Asia Pacific Limited, a company organized
under the laws of Bermuda ("Licensee").

                                    RECITALS

      A. Licensor owns, develops, markets and maintains certain proprietary
software, technology, trademarks and other materials for use in providing
strategy consulting, systems integration and application hosting services to
organizations using the Internet.

      B. Licensor desires to enable Licensee to use the Licensed Property (as
defined below) to provide services to customers in Japan.

      C. To this end, on the terms and subject to the conditions hereafter set
forth, Licensee desires to obtain from Licensor, and Licensor is willing to
grant to Licensee, the rights and licenses described below.

      NOW THEREFORE, in consideration of the mutual covenants contained herein,
and for other valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties agree as follows:

      1. Certain Definitions. Any capitalized terms used but not defined in this
Agreement shall have the meaning set forth in the Shareholders Agreement between
Licensor and ICG AsiaWorks Limited dated October 24, 2000 (the "Shareholders
Agreement"). As used in this Agreement, the following terms have the meanings
set forth below:

            "Affiliate" shall mean, as to any Person, any other Person that,
directly or indirectly, controls, is under common control with, or is controlled
by, that Person. For purposes of this definition, "control" (including, with its
correlative meanings, the terms "controlled by" and "under common control
with"), as used with respect to any Person, shall mean the possession, directly
or indirectly, of the power to direct or cause the direction of the management
and policies of such Person, whether through the ownership of voting securities,
by contract or otherwise.

            "Documentation" shall mean Licensor's printed and electronic
documentation, manuals, specifications and instructions relating to the
operation of the Licensed Software

            "Effective Date" shall mean the date of this Agreement as set forth
in the preamble hereof.

            "Intellectual Property" shall mean and include (A) patents, patent
disclosures and all related continuation, continuation-in-part, divisional,
reissue, re-examination, utility model, certificate of invention and design
patents, patent applications, registrations and applications for

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registrations, (B) trademarks, service marks, trade dress, logos, trade names,
domain names and corporate names and registrations and applications for
registration thereof, (C) copyrights and registrations and applications for
registration thereof, and moral and personality rights, (D) trade secrets and
confidential business information, whether patentable or nonpatentable and
whether or not reduced to practice, know-how, manufacturing and product
processes and techniques and research and development information, (E) all other
intangible, industrial and intellectual property rights, by whatever name known,
(F) other proprietary rights relating to any of the foregoing (including without
limitation remedies against infringements thereof and rights of protection of
interest therein under the laws of all jurisdictions), (G) copies and tangible
embodiments thereof and (H) all goodwill in the foregoing.

            "Licensed Know-how" shall mean any existing and future proprietary
techniques, processes, business and other methodologies, technical information
and other trade secrets or know-how that Licensor presently or in the future
owns, controls or has the ability to license to Licensee.

            "Licensed Marks" shall mean the logos and trademarks listed on
Exhibit A attached hereto, as amended from time to time.

            "Licensed Property" shall mean the Documentation, Marketing
Materials, Licensed Software, Licensed Know-how and Licensed Marks.

            "Licensed Software" shall mean that computer software listed on
Exhibit B hereto, together with all Updates and successor versions thereto, if
any.

            "Localized Version" shall have the meaning set forth in Section
2.1(a).

            "Marketing Materials" shall mean brochures, advertising copy and
similar materials with respect to marketing the business of the Licensor.

            "Object Code" shall mean (i) machine executable programming
instructions, substantially in binary form, which are intended to be directly
executable by an operating system after suitable processing and linking but
without the intervening steps of compilation or assembly, or (ii) other
executable code (e.g., programming instructions written in procedural or
interpretive languages).

            "Person" shall mean a natural person, sole proprietorship,
corporation, general partnership, limited partnership, limited liability
partnership, limited liability company, joint venture, unincorporated
organization, joint stock company, trust, estate, governmental entity or other
entity.

            "Services Agreement" shall mean that agreement, in the form attached
hereto as Exhibit C, pursuant to which the Licensor has agreed to maintain,
update and, at the request of the Licensee, enhance the Licensed Software and
Licensee has agreed to pay for certain services.

            "Source Code" shall mean the human-readable form of any computer
programming code, including without limitation all comments, procedural code and
scripts.

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            "Territory" shall mean Asia (excluding Japan), including, without
limitation, Australia and India.

            "Territory Customer" means a customer of the Licensee that has its
corporate headquarters or principal business operations in the Territory or, if
a multi-national Person, has a significant division or business unit in the
Territory (but only such division or business unit shall be deemed to constitute
the Territory Customer).

            "Third Party Software" shall mean software, if any, that is
incorporated into or bundled with the Licensed Software which is not owned by
Licensor.

            "Update" means any correction, bug fix, enhancement, upgrade or
modification to the Licensed Software.

      2. Licenses.

            2.1 Software, Documentation and Know-how Licenses. On the terms and
subject to the conditions of this Agreement, Licensor hereby grants to Licensee,
a perpetual (subject to termination as provided in Section 8.1 and Section 8.2),
exclusive in the Territory (as set forth in Section 2.2), non-transferable
(except as provided herein), royalty-free, right and license under all of
Licensor's Intellectual Property rights:

                  (a) to use and modify the Documentation and the Licensed
Software (in Source Code and Object Code form) for the sole purpose of adapting
the Licensed Software and Documentation for use in the Territory, including
translation to local languages, addition of local character sets, graphics and
data sources ("Localizing" or "Localization", and the resulting versions of the
Licensed Software and Documentation, the "Localized Versions");

                  (b) to reproduce, distribute, perform (publicly or otherwise)
and market the Licensed Software, Documentation and Localized Versions within
the Territory to Territory Customers in Object Code form solely for the business
purposes of such Territory Customers with no right to further distribute or
sublicense;

                  (c) to grant Territory Customers sublicenses to use and
operate the Software, Documentation and Localized Versions in Object Code form
to support their business operations in the Territory;

                  (d) to use and operate the Software, Documentation and
Localized Versions on behalf of Territory Customers, on an application service
provider basis, to support their business operations in the Territory;

                  (e) to make, use, modify (including, but not limited to,
Localizing), reproduce, distribute, perform (publicly or otherwise) market,
sell, offer for sale, import and sublicense to Territory Customers the Licensed
Know-how (and products and services incorporating the Licensed Know-how) in the
course of conducting the Business;

                  (f) to use, modify (including, but not limited to,
Localizing), repro-

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duce, distribute, perform (publicly or otherwise) and display the Marketing
Materials in the Territory; and

                  (g) to grant sublicenses to third party contractors under the
rights and licenses granted under Sections 2.1(a) - 2.1(f) solely in connection
with Licensor's exercise of such rights and licenses.

            2.2 Exclusivity and Territoriality.

                  (a) Licensor will not, (i) directly or indirectly, provide or
license the Licensed Software, Documentation or Licensed Know-how to any
Territory Customer other than Licensee for use anywhere in the Territory or (ii)
directly or indirectly develop or allow any third party to develop versions of
the Licensed Software, Documentation and/or Licensed Know-how that are Localized
for use anywhere in the Territory.

                  (b) Notwithstanding anything to the contrary set forth herein,
Licensee shall have the right to exercise the rights and licenses granted under
Sections 2.1(a) - 2.1(f) outside the Territory and with respect to customers
other than Territory Customers in the event that Licensee obtains the right to
pursue an opportunity outside the Territory pursuant to Section 5.2(b) of the
Shareholders Agreement.

            2.3 Third Party Software. Licensee acknowledges that certain Third
Party Software may be incorporated into or necessary for the use of the Licensed
Software. LICENSOR MAKES NO WARRANTY WHATSOEVER, EXPRESS OR IMPLIED, ORAL OR
WRITTEN, TO LICENSEE OR ANY OTHER PARTY WITH RESPECT TO THIRD PARTY SOFTWARE,
AND HEREBY DISCLAIMS ANY AND ALL SUCH WARRANTIES. To the extent Licensor is able
to sublicense any such Third Party Software to Licensee without incurring any
additional royalties or license fees, such Third Party Software shall be deemed
included in the Licensed Software for the purposes of Section 2.1 (together with
any associated Documentation). To the extent Licensor is unable to sublicense to
Licensee any such Third Party Software without incurring additional royalties or
licensee fees, such Third Party Software shall not be included in the Licensed
Software hereunder, and Licensee shall be responsible, at its own expense, for
obtaining sufficient rights to use such Third Party Software from the relevant
vendors; provided, however, that Licensor shall provide Licensee with reasonable
assistance in obtaining all necessary rights to any such Third Party Software.

            2.4 Proprietary Markings. Licensee shall not remove any production
identification, copyright notices or proprietary indications from the Licensed
Properties.

            2.5 Trademark License.

                  (a) Licensor hereby grants to Licensee, subject to termination
as provided herein, an exclusive (subject to the following sentence),
non-transferable (except as provided herein), right and license (i) to use and
display the Licensed Marks in the Territory solely in connection with the
conduct of the Business and (ii) to register in the Territory one or more
Internet domain names using the Licensed Marks. The exclusivity of this license
shall not prevent Licensor from undertaking global marketing campaigns using the
Licensed Marks that result

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in promotional materials and information being accessible or distributed into
the Territory, provided that such campaigns are not directed principally at
Territory Customers or other Persons in the Territory.

                  (b) Licensee acknowledges that the quality of the products and
services offered by Licensee under the Licensed Marks will reflect on Licensor,
and will affect the reputation and goodwill of Licensor in the Territory and
elsewhere. Licensee agrees that the quality of the products and services that it
distributes and offers under the Licensed Marks shall be of a level at least
comparable to the quality of the products and services distributed and offered
by Licensor outside of the Territory. In the event that the quality of the
products and services offered by Licensee under the Licensed Marks are not at
such level, then Licensor shall have the right, upon 30 days' prior written
notice to Licensee, to terminate the licenses granted under this Section 2.5, if
by the end of such 30 day period Licensee has not improved the quality of the
relevant products or services, or presented Licensor with a corrective plan that
is acceptable to Licensor in Licensor's reasonable discretion.

                  (c) Licensee agrees that it shall not register any Licensed
Mark, or any name, logo, trade name, domain name, trademark or design that is
confusingly similar thereto, in any jurisdiction, inside or outside the
Territory, except as expressly permitted in this Section 2.5(c), in Section
2.5(a)(ii) above or with the prior written consent of Licensor. Licensee shall
timely make all registrations and filings, execute all documents required under
applicable law and take such other actions as are reasonably necessary to
protect the Licensed Marks in the Territory. Licensee shall have the right to
require Licensor diligently to pursue trademark registrations with regard to the
Licensed Marks in the Territory. In the event that Licensor fails to file,
prosecute or maintain any trademark application (or ensuing trademark
registrations) with respect to the Licensed Marks in the Territory as requested
by Licensee within a reasonable period of time following such request, Licensee
shall have the right, at Licensor's reasonable expense, to prosecute and
maintain such trademark applications (or ensuing trademark registrations) on
behalf of Licensor.

                  (d) Licensee shall provide to Licensor, as represented by the
individual designated by the Licensor as its corporate marketing representative
on the Advisory Committee (as defined in the Shareholder's Agreement), a copy of
any tangible promotional materials, advertising or packaging that will bear the
Licensed Marks for review and pre-approval, which approval shall not be
unreasonably withheld. Any failure of Licensor to indicate its approval or
disapproval of any such promotional materials within fifteen (15) days after its
receipt of such copy shall be deemed acceptance thereof. With respect to
promotional materials bearing the Licensed Marks made available in electronic
form via publicly accessible portions of the Internet, Licensor shall have the
right to review and approve such materials via such publicly accessible portions
of the Internet. In the event that Licensor disapproves of any of Licensee's
promotional materials bearing the Licensed Marks (whether in tangible or
electronic form), it shall provide Licensee with written notice setting forth
the grounds for its disapproval in reasonable detail, and Licensee cease using
such promotional materials until the promotional materials have been modified to
address the grounds for disapproval set forth in such written notice.

            2.6 Licensee Developments. Licensee shall deliver to Licensor all
modifica-

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tions, corrections and enhancements that it makes to the Licensed Software
except for the Localized Versions ( "Licensee Developments"), in Source Code and
Object Code forms, promptly upon their development, together with all relevant
programmers' notes, documentation and commenting associated therewith. Licensor
shall reimburse Licensee for all reasonable out-of-pocket expenses incurred in
connection with the delivery to Licensor of the Licensee Developments. Licensee
hereby grants to Licensor a perpetual, irrevocable, non-exclusive, royalty-free
right and license, including the right to sublicense, to use, copy, modify,
distribute, market, promote and create derivative works of any and all such
Licensee Developments in Source Code and Object Code forms outside the
Territory.

            2.7 No Other Rights. Except as provided in this Article 2, nothing
in this Agreement shall be deemed to grant any license or rights in any
technology, products or services to Licensee except for the licenses and rights
specifically granted herein with respect to the Licensed Properties.

      3. Delivery and Maintenance of Licensed Software.

            3.1 Delivery. As soon as practicable after the Effective Date,
Licensor shall deliver to Licensee the Licensed Software, Marketing Materials,
Documentation and other materials embodying the Licensed Know-How in their then
most current forms and representations (including, without limitation, graphics
files and camera-ready mechanicals) of the Licensed Marks. Thereafter, Licensor
shall deliver to Licensee any Updates or other modifications, improvements or
additions to the Licensed Software, Documentation, Licensed Know-how, Licensed
Marks or Marketing Materials ("New Materials") as soon as practicable after the
development of such New Materials, and in any event no later than such New
Materials are made available to any other licensee of Licensor or are generally
distributed internally by the Licensor.

            3.2 Support.

                  (a) Licensor represents and warrants that it uses a variety of
methods to disseminate the Licensed Software, Documentation Licensed Know-How
and information with respect thereto to its employees, to educate its employees
with respect to such technology and to inform and educate its employees with
respect to new developments. These methods include distributions of technical
information by e-mail and other methods, training meetings, technical
roundtables, conference calls, access to the Licensor's intranet, including
meetings of technical personnel and the like. Licensor hereby agrees to include
all appropriately situated personnel of the Licensee in any dissemination of
such information, to give all such personnel substantially the same access to
the relevant portions of Licensor's intranet as is given to similarly situated
personnel of Licensor and to invite all such personnel to such meetings,
conference calls, training sessions and similar events as similarly situated
personnel of the Licensor attend. All costs and expenses of Licensee's employees
in participating in training and other meetings shall be the responsibility of
Licensee.

                  (b) Licensor hereby agrees to continue to develop, improve and
enhance (i) the Licensed Software, Documentation and Licensed Know-how as
reasonably necessary or useful in connection with Licensor's conduct of its own
business, and (ii) the methodolo-

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gies, procedures and policies by which Licensor documents the functionality and
specifications of the Licensed Software and by which it disseminates information
with respect thereto, including, without limitation, the methodologies,
procedures and policies described in Section 3.2(a).

      4. Rights in Intellectual Property.

            4.1 Reservation of Rights. Except as otherwise expressly set forth
in this Agreement, no right, title or interest in or to the Licensed Property,
or in or to any Intellectual Property rights therein, shall be conveyed to
Licensee under this Agreement; and Licensor or its suppliers shall own all such
Intellectual Property in the Licensed Property. Upon request, Licensee shall
execute and deliver all such instruments and documents, including without
limitation documents of assignment, and take all such steps and render all such
assistance as may be reasonably necessary to assure to Licensor its rights under
this Section 4.1.

            4.2 Licensee Developments. Subject to Licensor's ownership of the
Licensed Property, Licensee shall, except as expressly set forth herein, own all
right title and interest in and to the Licensee Developments, including any
Localized Versions, including all Intellectual Property rights therein or
thereto. Upon request, Licensor shall execute and deliver all such instruments
and documents, including without limitation documents of assignment, and take
all such steps and render all such assistance as may be reasonably necessary to
assure to Licensee its rights under this Section 4.2.

            4.3 Benefit. All use of the Licensed Property shall inure to the
benefit of Licensor, or, as applicable, its suppliers. All use of the Licensee
Developments shall inure to the benefit of Licensee.

      5. Representations and Warranties; Indemnification.

            5.1 Licensor Representations and Warranties.

                  (a) Corporate Authority. Licensor represents and warrants to
Licensee that Licensor has full power, right and authority to enter into this
Agreement, to carry out its obligations under this Agreement, and to grant the
rights granted to Licensee herein, and that this Agreement is valid, binding and
enforceable against it.

                  (b) No Conflict. Licensor represents and warrants that the
execution of this Agreement, the granting of the rights and licenses to Licensee
herein, and the performance of its obligations hereunder does not and will not
(i) violate the Articles of Incorporation or by-laws of Licensor or any
provision of any applicable law; or (ii) conflict with or violate any other
agreement to which Licensor is a party.

                  (c) Rights; Non-Infringement. Licensor represents and warrants
that it is the sole owner of all right, title and interest in and to the
Licensed Property and/or possesses all rights necessary to grant the licenses
granted to Licensee herein, and that the use and sale of the Licensed Property,
and of products and services incorporating the Licensed Property in accordance
with the terms of this Agreement do not and will not infringe or misappropriate
any Intellectual Property rights of any third party.

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                  (d) No Claims. Licensor represents and warrants that (i) no
claims have been made with respect to the Licensed Property and no demands of
any third Party have been made pertaining to the Licensed Property, and (ii) no
proceedings have been instituted or are pending or threatened that challenge the
rights of Licensor in respect thereof.

            5.2 Licensee Representations and Warranties.

                  (a) Corporate Authority. Licensee represents and warrants to
Licensor that Licensee has full power, right and authority to enter into this
Agreement, to carry out its obligations under this Agreement, and to grant the
rights granted to Licensor herein, and that this Agreement is valid, binding and
enforceable against it.

                  (b) No Conflict. Licensee represents and warrants that the
execution of this Agreement, the granting of the rights and licenses to Licensor
herein, and the performance of its obligations hereunder does not and will not
(i) violate the Articles of Incorporation or by-laws of Licensee or any
provision of any applicable law; or (ii) conflict with or violate any other
agreement to which Licensee is a party.

            5.3 Indemnification by Licensor.

                  (a) Indemnification. Licensor will defend any claims or suits
brought against Licensee or any of its Affiliates ("Licensee Claims"), and will
indemnify and hold Licensee and its Affiliates harmless against any liability
cost or expense (including reasonable attorneys fees) resulting from any claim,
action, suit or allegation made or brought by any Person (other than Licensee or
a Licensee Affiliate) (i) arising from Licensor's or its sublicensees' use or
modification of the Licensee Developments except as permitted hereunder, (ii)
arising from any breach or alleged breach by Licensor of any of the
representations or warranties made by Licensor in Section 5.1, or (iii) arising
from the violation by Licensor of any law, rule, regulation or order in any
jurisdiction. Licensor shall give Licensor prompt written notice of any Licensor
Claim. In addition, if any Licensed Property provided to Licensee by Licensor is
held to infringe any Intellectual Property right of a third party in the
Territory, Licensor will, at its own expense, and in its sole discretion, (a)
procure for Licensee the right to continue to use the allegedly infringing
Licensed Property or (b) replace or modify the Licensed Property to make it
non-infringing so long as the replacement to or modification of Licensed
Software provide substantially the same functional, performance and operational
features as the infringing software which is being replaced or modified.

                  (b) Procedures. Licensor shall have sole control over the
defense of any Licensee Claim, including appeals, negotiations and the right to
effect a settlement or compromise thereof, provided that (i) Licensor may not
partially settle any Licensor Claim without the written consent of Licensor,
unless such settlement releases Licensor fully from such claim, (ii) Licensor
shall promptly provide Licensor with copies of all pleadings or similar document
relating to any Licensee Claim, (iii) Licensor shall consult with Licensee with
respect to the defense and settlement of any Licensee Claim, and (iv) in any
litigation to which Licensee is a party, Licensee shall be entitled to be
separately represented at its own expense by counsel of its own selection,
subject to the right of the Licensor to control the defense.

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            5.4 Indemnification by Licensee.

                  (a) Indemnification. Licensee will defend any claims or suits
brought against Licensor or any of its Affiliates ("Licensor Claims"), and will
indemnify and hold Licensor and its Affiliates harmless against any liability
cost or expense (including reasonable attorneys fees) resulting from any claim,
action, suit or allegation made or brought by any Person (other than Licensor or
a Licensor Affiliate) (i) arising from Licensee's or its sublicensees' use or
modification of the Licensed Property except as permitted hereunder, (ii)
arising from any breach or alleged breach by Licensee of any of the
representations or warranties made by Licensee in Section 5.2, or (iii) arising
from the violation by Licensee of any law, rule, regulation or order in any
jurisdiction. Licensor shall give Licensor prompt written notice of any Licensor
Claim.

                  (b) Procedures. Licensee shall have sole control over the
defense of any Licensor Claim, including appeals, negotiations and the right to
effect a settlement or compromise thereof, provided that (i) Licensee may not
partially settle any Licensor Claim without the written consent of Licensor,
unless such settlement releases Licensor fully from such claim, (ii) Licensee
shall promptly provide Licensor with copies of all pleadings or similar document
relating to any Licensor Claim, (iii) Licensee shall consult with Licensor with
respect to the defense and settlement of any Licensor Claim, and (iv) in any
litigation to which Licensor is a party, Licensor shall be entitled to be
separately represented at its own expense by counsel of its own selection,
subject to the right of Licensee to control the defense.

      6. Limitation of Damages and Disclaimer of Warranties.

            6.1 Limit on Aggregate Damages.

                  (a) IN NO EVENT SHALL LICENSOR'S AGGREGATE LIABILITY TO
LICENSEE, OR LICENSEE'S AGGREGATE LIABILITY TO LICENSOR, UNDER THIS AGREEMENT,
FOR ANY AND ALL CAUSES, EXCEED $650,000.

                  (b) IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER
PARTY FOR ANY DAMAGES RESULTING FROM LOSS OF DATA, LOST PROFITS, LOSS OF USE OF
EQUIPMENT, LOST CONTRACTS OR FOR ANY SPECIAL, INDIRECT, INCIDENTAL, PUNITIVE,
EXEMPLARY OR CONSEQUENTIAL DAMAGES IN ANY WAY ARISING OUT OF OR IN CONNECTION
WITH THE USE OR PERFORMANCE OF THE LICENSED PROPERTY, LICENSEE DEVELOPMENTS OR
RELATING TO THIS AGREEMENT, HOWEVER CAUSED, EVEN IF SUCH PARTY HAS BEEN MADE
AWARE OF THE POSSIBILITY OF SUCH DAMAGES TO THE OTHER PARTY.

            6.2 Warranty Disclaimers. EXCEPT AS EXPRESSLY SET FORTH HEREIN, THE
LICENSED PROPERTY IS PROVIDED TO LICENSEE, AND THE LICENSEE DEVELOPMENTS ARE
PROVIDED TO LICENSOR, AS-IS. EXCEPT AS EXPRESSLY SET FORTH HEREIN, LICENSOR
MAKES NO WARRANTIES TO LICENSEE OR TO ANY OTHER PARTY OF ANY KIND WHATSOEVER
WITH RESPECT TO THE LICENSED PROPERTY, WRITTEN OR ORAL, EXPRESS, IMPLIED OR

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            STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE, ALL OF WHICH
WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED. EXCEPT AS EXPRESSLY SET FORTH
HEREIN, LICENSEE MAKES NO WARRANTIES TO LICENSOR OR TO ANY OTHER PARTY OF ANY
KIND WHATSOEVER WITH RESPECT TO THE LICENSEE DEVELOPMENTS, WRITTEN OR ORAL,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED
WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR USE OR PURPOSE, ALL OF
WHICH WARRANTIES ARE HEREBY EXPRESSLY DISCLAIMED.

            LICENSOR DOES NOT WARRANT THAT THE LICENSED SOFTWARE WILL MEET
LICENSEE'S OR ANY OTHER PARTY'S REQUIREMENTS, WILL OPERATE IN COMBINATIONS
LICENSEE OR ANY OTHER PARTY MAY SELECT FOR USE, OR THAT OPERATION OF THE
LICENSED SOFTWARE WILL BE UNINTERRUPTED OR ERROR FREE. LICNSEE DOES NOT WARRANT
THAT THE LICENSEE DEVELOPMENTS WILL MEET LICENSOR'S OR ANY OTHER PARTY'S
REQUIREMENTS, WILL OPERATE IN COMBINATIONS LICENSOR OR ANY OTHER PARTY MAY
SELECT FOR USE, OR THAT OPERATION OF THE LICENSEE DEVELOPMENTS WILL BE
UNINTERRUPTED OR ERROR FREE.

      7. Confidentiality.

            7.1 Obligations. For so long as this Agreement remains in effect and
for a period of ten (10) years after any expiration or termination of this
Agreement, each party shall keep strictly confidential, and shall not disclose,
any confidential or proprietary information of the other party received under or
in connection with this Agreement, including without limitation any information,
written or oral, relating to customers, costs, profits, markets, sales,
products, product development, key personnel, pricing policies, operational
methods, technology, know-how, technical processes, formulae or plans for future
development ("Confidential Information"); provided, however, that Confidential
Information shall not include, and the disclosure restrictions of this Section 7
shall not apply to, any information received by either party from the other
which:

                  (a) was already known to the recipient at the time of receipt;

                  (b) was at the time of receipt, or thereafter becomes, freely
and generally available to the public through no wrongful act of the recipient;

                  (c) is rightfully received by the recipient from a third party
legally entitled to disclose such information free of confidentiality
restrictions;

                  (d) is independently developed by the recipient with reference
to any Confidential Information of the disclosing party;

                  (e) is disclosed by the recipient pursuant to the order of any
court or in connection with any legal proceeding commenced by or against the
recipient, provided that prior

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to any such disclosure the recipient shall give the other party a reasonable
opportunity to seek a protective order with respect to any such disclosure; or

                  (f) is disclosed by the recipient, or any Affiliate of the
recipient, as required under any applicable securities laws

                  Upon the expiration or termination of this Agreement, each
party shall either erase, destroy or return to the other party all program
listings, memoranda, notes, records, reports and other documents (whether in
tangible or electronic form, and including all copies thereof) containing any
Confidential Information of such other party and in such other party's
possession or under its control at the time of such expiration or termination,
and shall give written certification of compliance with this paragraph to such
other party.

            7.2 Injunctive Relief. Because the unauthorized disclosure or
transfer of Confidential Information by recipient will substantially diminish
its value and irrevocably harm the disclosing party, if recipient materially
breaches the provisions of Section 7.1, the disclosing party shall be entitled
to injunctive and/or other equitable relief, in addition to other remedies
afforded by law.

      8. Term and Termination.

            8.1 Term. Unless earlier terminated as provided herein, this
Agreement shall be effective during the period from the Effective Date until the
sooner of: (i) the date on which the parties hereto mutually agree to terminate
this Agreement; or (ii) the date on which this Agreement is terminated under
Sections 8.2 and 8.3 below.

            8.2 Termination. Subject to the provisions of Section 8.3 below, a
party may terminate this Agreement (i) in the event of any material breach of
any warranty, representation or covenant of this Agreement by the other party
which remains uncured sixty (60) days after written notice of such breach, upon
written notice to the other party given no later than five (5) days following
the expiration of such sixty (60) day period; (ii) in the event that any
involuntary bankruptcy, insolvency, receivership, dissolution, or similar
proceeding is instituted against the other party and has not been dismissed
within thirty (30) days after filing, upon written notice to the other party
given no later than five (5) days following the expiration of such thirty (30)
day period; or (iii) in the event that any voluntary bankruptcy, insolvency,
receivership, dissolution, liquidation, or similar proceeding is commenced by
the other party, immediately upon written notice to the other party.

            8.3 Effect of Termination.

                  (a) Termination by Licensor. In the event that Licensor
terminates this Agreement in accordance with Section 8.2:

                        (i) Licensee shall have a transition period of three (3)
months from the effective date of such termination (the "Licensor Termination
Date") in which to transition away from all uses of the Licensed Marks. During
such transition period, Licensee shall use all reasonable efforts to wind down
its use of the Licensed Marks as soon as reasonably practica-

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ble and, in any event, all of the rights and licenses under the Licensed Marks
granted pursuant to Section 2.5 shall terminate in three (3) full months after
the Licensor Termination Date.

                        (ii) With respect to Licensed Property other than the
Licensed Marks, Licensee shall (A) in the case of projects for which contracts
are signed at any time after the Termination Date, make no use of such Licensed
Property and (B) in the case of projects for which contracts were signed prior
to the Termination Date, use commercially reasonable efforts to transition away
from the use of such Licensed Property during the twelve (12) month period
following the Termination Date. Except as Licensor may expressly agree in
writing, Licensee shall make no use of the Licensed Property, including with
respect to projects which commenced prior to the Termination Date, after twelve
(12) months have elapsed from the Termination Date and all of the rights and
licenses under the Licensed Property other than the Licensed Marks shall
thereupon terminate in full.

                  (b) Termination by Licensee. In the event that Licensee
terminates this Agreement in accordance with Section 8.2:

                        (i) Licensee shall have a transition period of three (3)
months from the effective date of such termination (the "Licensee Termination
Date") in which to transition away from all uses of the Licensed Marks. During
such transition period, Licensee's rights to use and display the Licensed Marks
in the Territory shall remain exclusive as set forth in Section 2.5, but
Licensee shall use all reasonable efforts to wind down its use of the Licensed
Marks as soon as reasonably practicable and, in any event, all of the rights and
licenses under the Licensed Marks granted pursuant to Section 2.5 shall
terminate in full six (6) months after the Licensee Termination Date. For the
sake of clarity, Licensor shall be free during such transition period to conduct
business in the Territory under any brand names, trade names or trademarks other
than the Licensed Marks and using any of the Licensed Property other than the
Licensed Marks.

                        (ii) Licensee shall have a transition period of
twenty-four (24) months in which to transition away from its use of the Licensed
Property other than the Licensed Marks. During such transition period, Licensee
shall use all reasonable efforts to wind down its use of the Licensed Property
other than the Licensed Marks as soon as reasonably practicable and, in any
event, all of the rights and licenses under the Licensed Property other than the
Licensed Marks granted pursuant to Section 2.1 shall terminate in full
twenty-four (24) months after the Licensee Termination Date.

                  (c) Return/Destruction of Materials.

                        (i) At the end of any three (3) or six (6) month
transition period under Section 8.3(a)(i) or Section 8.3(b)(i), respectively,
Licensee shall (A) in Licensee's discretion, either return to Licensor or
destroy all materials embodying the Licensed Marks and certify to Licensor in
writing that Licensee has complied with the requirements of this Section
8.3(c)(i) and (B) use commercially reasonable efforts to transfer and assign to
Licensor, without charge, all Internet domain names and URL's owned by Licensee
and containing any Licensed Mark. In the event that any applicable law,
regulation or registration procedure prevents the di-

                                       12
<PAGE>

rect transfer and assignment of any such domain name to Licensor, Licensee and
Licensor shall cooperate in good faith to take steps designed to ultimately vest
ownership or control of such domain names in Licensor.

                        (ii) Except as otherwise agreed in writing by Licensor,
at the end of any twelve (12) month or twenty-four (24) month period under
Section 8.3(a)(ii) or 8.3(b)(ii), respectively, Licensee shall, in Licensee's
discretion, either return to Licensor or destroy all materials embodying the
Licensed Property other than the Licensed Marks and certify to Licensor in
writing that Licensee has complied with the requirements of this Section
8.3(c)(ii).

            8.4 Survival. The provisions of Sections 4, 5, 6, 7, 8.3, 8.4, and
9.7 shall survive any expiration or termination of this Agreement in accordance
with their terms and the licenses granted pursuant to Sections 2.1, 2.2 and 2.5
shall survive to the extent provided in Section 8.3.

      9. Miscellaneous.

            9.1 Costs. Except as may be otherwise expressly provided in this
Agreement, each party shall bear its own costs and expenses in carrying out its
obligations under this Agreement.

            9.2 Notices. Any notice, request, demand, approval or consent
required or permitted under this Agreement shall be in writing and shall be
effective upon actual receipt when delivered by (a) registered mail, postage
prepaid, return receipt requested; (b) personal delivery; (c) an overnight
courier of recognized reputation (such as DHL or Federal Express) or (d)
transmission by facsimile (with confirmation by mail), in each case addressed as
follows:

            If to Licensor:   Breakaway Solutions, Inc.
                              50 Rowes Wharf
                              Boston, Massachusetts 02110
                              Attention:  Mr. Timothy Perkins
                              Telephone:  617-960-3400
                              Telecopy:  617-960-3434
                              e-mail:  tperkins@breakaway.com

                              After November 15, 2000:

                              World Trade Center East
                              Two Seaport Lane
                              Boston, Massachusetts 02210

            If to Licensee:   Breakaway Solutions Asia Pacific Limited
                              The Center 67/F
                              99 Queen's Road Central
                              Hong Kong

                                       13
<PAGE>

                              Attention:  Mr. William Hay/Tiak Koon Loh
                              Telephone:  852 2186 3018
                              Facsimile:  852 2186 3058
                              email:  tloh@internetcapital.com

Either party may change its address or facsimile number for notice purposes by
notice given to the other party in accordance with this Section 9.2.

            9.3 Assignment. Except as expressly provided herein, neither party
shall assign or transfer this Agreement or any interest herein, or enter into
any agreement of merger, sale of control or sale of substantially all of its
assets, effectively transferring this Agreement to another party, without the
prior written consent of the other party.

            9.4 Entire Agreement. This Agreement, including the exhibits
referred to herein, which are hereby incorporated in and made a part of this
Agreement, constitutes the entire contract between the parties with respect to
the subject matter covered by this Agreement. This Agreement supersedes all
previous letters of intent, agreements and understandings, if any, by and
between the parties with respect to the subject matter covered by this
Agreement. This Agreement may not be amended, changed or modified except by a
writing duly executed by the parties hereto.

            9.5 Severability. If any provision of this Agreement is held by a
court of competent jurisdiction to be unenforceable, invalid or void in any
respect, no other provision of this Agreement shall be affected thereby, and all
other provisions of this Agreement shall nevertheless be carried into effect and
the parties shall amend this Agreement to modify the unenforceable, invalid or
void provision to give effect to the intentions of the parties to the extent
possible in a manner which is valid and enforceable. IT IS EXPRESSLY UNDERSTOOD
AND AGREED THAT EACH AND EVERY PROVISION OF THIS AGREEMENT WHICH PROVIDES FOR A
LIMITATION OF LIABILITY, DISCLAIMER OF WARRANTIES OR EXCLUSION OF DAMAGES, IS
INTENDED BY THE PARTIES TO BE SEVERABLE AND INDEPENDENT OF ANY OTHER PROVISION
AND TO BE ENFORCED AS SUCH.

            9.6 Remedies and Waivers. All rights and remedies of the parties
under this Agreement and the Services Agreement are separate and cumulative, and
no one of them, whether exercised or not, shall be deemed to be to the exclusion
of or to limit or prejudice any other rights or remedies which the parties may
have. The parties shall not be deemed to waive any of their rights or remedies
under this Agreement or the Services Agreement, unless such waiver is in writing
and signed by the party to be bound. No delay or omission on the part of either
party in exercising any right or remedy hereunder or thereunder shall operate as
a waiver of such right or remedy or any other right or remedy. A waiver on any
one occasion shall not be construed as a bar to or waiver of any right or remedy
on any future occasion.

            9.7 Governing Law. This Agreement and the Services Agreement, and
the rights and liabilities of the parties hereunder and thereunder, shall be
governed by the substantive laws of the State of New York (as permitted by
Section 5-1401 of the General Obligations Law) without giving effect to any
choice of law rule that would cause the application of laws of any

                                       14
<PAGE>

jurisdiction other than the internal laws of the State of New York to the rights
and duties of the parties. All disputes between the parties arising out of this
Agreement shall be settled by the parties amicably through good faith
discussions upon the written request of any party. In the event that any such
dispute cannot be resolved thereby within a period of sixty (60) days after such
notice has been given, such dispute shall be finally settled by arbitration
administered by the American Arbitration Association in New York, New York,
using the English language, and under its International Arbitration Rules. The
arbitration panel may grant specific performance, and to allocate between the
parties the costs of arbitration in such equitable manner as the panel may
determine. The prevailing party in the arbitration shall be entitled to receive
reimbursement of its reasonable expenses incurred in connection therewith.
Judgment upon the award so rendered may be entered in any court having
jurisdiction or application may be made to such court for judicial acceptance of
any award and an order of enforcement, as the case may be. Notwithstanding the
foregoing, any party shall have the right to institute a legal action in a court
of proper jurisdiction for injunctive relief or a decree for specific
performance pending final settlement by arbitration. Subject to the foregoing
the parties hereto consent to the non-exclusive jurisdiction of any New York
State or Federal Court of competent jurisdiction in the Borough of Manhattan,
New York City, and any court having jurisdiction of any appeal therefrom in any
action or proceeding arising out of or relating to this Agreement, the Licensed
Property or the Licensee Developments.

            9.8 Headings. The headings contained in this Agreement are for
convenience only and are not a part of this Agreement, and do not in any way
interpret, limit or amplify the scope, extent or intent of this Agreement, or
any of the provisions of this Agreement.

            9.9 Counterparts and Facsimile. This Agreement may be executed in
counterparts, each of which shall constitute an original, but all of which
together shall constitute one and the same agreement. Transmission of facsimile
copies of signed original signature pages of this Agreement shall have the same
effect as delivery of the signed originals.

            9.10 Third Party Beneficiary. Neither this Agreement nor the
Maintenance Agreement is intended to and neither confers any rights on any third
party, and no such third party shall be a third party beneficiary under or in
respect of this Agreement or the Maintenance Agreement.

            9.11 Binding Effect. Subject to Section 9.3 hereof, this Agreement
shall be binding upon and shall inure to the benefit of the parties and their
respective successors and assigns.

            9.12 Independent Contractors. The parties shall for all purposes
hereunder and under the Maintenance Agreement be considered independent
contractors with respect to each other, and neither shall be considered an
employee, employer, agent, principal, partner, franchisee, franchisor or joint
venturer of the other.

                                       15
<PAGE>

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

BREAKAWAY SOLUTIONS, INC.                 BREAKAWAY SOLUTIONS ASIA
                                          PACIFIC LIMITED

By: /s/ Gordon Brooks                     By: /s/ Tiak Koon Loh
    -------------------------------          ---------------------------------

NAME_______________________________       NAME________________________________

TITLE______________________________       TITLE_______________________________

DATE_______________________________       DATE________________________________

                                       16
<PAGE>

                                    EXHIBITS

Exhibit A:  Licensed Marks
Exhibit B:  Licensed Software
Exhibit C:  Services Agreement

                                       17<PAGE>

                                                                     EXHIBIT 4.1

                  AMENDMENT NO. 2 TO FIVE YEAR CREDIT AGREEMENT

     This Amendment No. 2 to Five Year Credit Agreement dated as of August 28,
2000 is entered into with reference to the Five Year Credit Agreement dated as
of December 31, 1998 (as amended by Amendment No. 1 dated as of August 31, 1999,
the "Credit Agreement"), among PARK PLACE ENTERTAINMENT CORPORATION, the
Lenders, Syndication Agent and Documentation Agents referred to therein, and
BANK OF AMERICA, N.A. (under its former name, Bank of America National Trust and
Savings Association), as Administrative Agent. Capitalized terms used in this
Amendment and not otherwise defined herein are used with the meanings set forth
for those terms in the Credit Agreement. The Borrower and the Administrative
Agent (acting with the consent of the Required Lenders pursuant to Section 9.04
of the Credit Agreement) hereby agree that:

     A.   WHEREAS, concurrently with the effectiveness of this Agreement, the
     Borrower is entering into a $1,900,000,000 Short Term Credit Agreement with
     certain lenders named therein, Bank of America, N.A., as administrative
     agent and Banc of America Securities, LLC, as Lead Arranger and Sole Book
     Manager (the "Short Term Agreement");

     B.   WHEREAS, concurrently with the effectiveness of the Short Term Credit
     Agreement, the Borrower has requested an increase to the Commitments under
     the Credit Agreement from $1,500,000,000 to $2,000,000,000 pursuant to
     Section 2.23 of the Credit Agreement, and, to effectuate such increases,
     certain lenders have agreed to increase their Commitments and certain
     additional lenders have agreed to make new Commitments; and

     C.   WHEREAS, the Borrower and the Administrative Agent, acting on behalf
     of the Lenders with the consent of the Required Lenders, desire to make
     certain conforming amendments to the Credit Agreement as set forth herein.

     NOW, THEREFORE, the parties agree to amend the Credit Agreement as follows:

     1. SECTION 1.01 - DEFINITIONS. Section 1.01 of the Credit Agreement is
hereby amended to delete the terms "Combined Pro Forma Financial Statements,"
"Consolidated Net Worth," "Gaming Segment," "GCI Lakes" "Grand," "Grand
Agreement," "Grand Assets, "Grand Distribution Agreement," "Grand Notes,"
"Hilton," "Hilton Distribution Agreement" "Hilton Notes," "Lakes Spin-Off,"
"Proxy Statement, "Spin-Off Transaction," "Wholly-Owned Consolidated Subsidiary"
and "Year 2000 Issue" and to add or amend the following definitions to read in
full as follows (adding those definitions not now appearing therein, and
amending those definitions now appearing therein as set forth below):

          "Commitment" means, as to each Lender, the commitment of that Lender
     to make Loans and to participate in Letters of Credit and Swing Line Loans,
     in each case as such amount may be reduced from time to time pursuant to
     Section 2.12,

                                      -1-

<PAGE>

     2.13 or 2.14, or increased pursuant to Section 2.23. As of the Effective
     Date, the aggregate amount of the Commitments under this Agreement was
     $1,500,000,000 and the respective Commitments of the Lenders were as set
     forth on Schedule 1 in effect on such date. As of August 28, 2000, the
     aggregate amount of the Commitments under this Agreement has been increased
     pursuant to Section 2.23 to $2,000,000,000 and the respective Commitments
     of the Lenders are as set forth on Schedule 1 in effect on such date.

          "Consolidated EBITDA" means, for any period, Consolidated Net Income
     for such period before (i) income taxes, (ii) interest expense, (iii)
     depreciation and amortization, (iv) minority interest, (v) extraordinary
     losses or gains, (vi) Pre-Opening Expenses, and (vii) nonrecurring non-cash
     charges, PROVIDED that, in calculating "Consolidated EBITDA":

               (a)  the operating results of each New Project which commences
          operations and records not less than one full fiscal quarter's
          operations during the relevant period shall be annualized; and

               (b)  Consolidated EBITDA shall be adjusted, on a pro forma basis,
          to include the operating results of each resort or casino property
          acquired by the Borrower and its Consolidated Subsidiaries during the
          relevant period and to exclude the operating results of each resort or
          casino property sold or otherwise disposed of by the Borrower and its
          Subsidiaries, or whose operations are discontinued during the relevant
          period.

          "Consolidated Interest Expense" means, for any period, net interest
     expense of the Borrower and its Consolidated Subsidiaries for such period,
     determined in accordance with generally accepted accounting principles,
     PROVIDED that in calculating "Consolidated Interest Expense" for any
     period, the interest expenses of the Borrower and its Consolidated
     Subsidiaries shall be adjusted for any acquisition or disposition of any
     resort or casino property acquired or sold or otherwise disposed of by the
     Borrower and its Subsidiaries during the relevant period, on a pro forma
     basis, utilizing a reasonable methodology which shall be (i) proposed by
     the Borrower, (ii) consented to by the Administrative Agent at the time of
     such calculation, which consent shall not be unreasonably withheld, and
     (iii) not objected to in writing by the Required Lenders within the ten
     Business Days following notice of such methodology.

          "Consolidated Net Income" means, for any period, the consolidated net
     income of the Borrower and its Consolidated Subsidiaries for such period.

          "New Project" means each new hotel - casino, casino or resort project
     (as opposed to any project which consists of an extension or redevelopment
     of an operating hotel, casino or resort) having a development and
     construction budget in excess of $25,000,000 which hereafter receives a
     certificate of completion or occupancy and all relevant gaming and other
     licenses, and in fact commences

                                      -2-

<PAGE>

     operations. Without limitation, for all periods in which the opening
     thereof occurred, the Paris Hotel & Casino located in Las Vegas, Nevada,
     shall be considered to be a "New Project."

          "Other Commitments" means the lending commitments under the Other
     Credit Agreement.

          "Other Credit Agreement" means the Short Term Credit Agreement dated
     as of August 28, 2000 among the Borrower, the lenders referred to therein,
     and Bank of America, N.A., as Administrative Agent, as at any time amended.

          "Pre-Opening Expenses" means, with respect to any fiscal period, the
     amount of expenses (OTHER THAN Consolidated Interest Expense) incurred with
     respect to capital projects which are classified as "pre-opening expenses"
     on the applicable financial statements of the Borrower and its Subsidiaries
     for such period, prepared in accordance with generally accepted accounting
     principles.

          "Rating Decline" means the occurrence on any date on or within 90 days
     after the date of the first Public Notice of (i) the occurrence of an event
     described in clauses (i)-(iv) of the definition of "Change of Control" or
     (ii) the intention by the Borrower to effect such an event (which 90-day
     period shall be extended so long as the rating of the senior debt of the
     Borrower is under publicly announced consideration for possible downgrade
     by any of the Rating Agencies) of a decrease in the rating of the senior
     debt of the Borrower by any of the Rating Agencies to below Investment
     Grade.

          "Reference Rate" means the rate of interest publicly announced from
     time to time by Bank of America as its "prime rate" or the similar prime
     rate or reference rate announced by any successor Administrative Agent.
     Bank of America's prime rate is a rate set by Bank of America based upon
     various factors including Bank of America's costs and desired return,
     general economic conditions and other factors, and is used as a reference
     point for pricing some loans, which may be priced at, above, or below such
     announced rate. Any change in the Reference Rate announced by Bank of
     America or any successor Administrative Agent shall take effect at the
     opening of business on the day specified in the public announcement of such
     change.

     2.   SECTION 2.23 - INCREASED COMMITMENTS. Section 2.23(a) of the Credit
Agreement is hereby amended to read in full as follows:

     "Subsequent to August 28, 2000, the Borrower may, upon at least 30 days
     notice to the Administrative Agent (which shall promptly provide a copy of
     such notice to the Lenders), propose to increase the aggregate amount of
     the Commitments and the Other Commitments by an aggregate amount not to
     exceed $225,000,000 (the amount of any such increase of the Commitments
     being referred to as the "Increased Commitments"). Each Lender party to
     this Agreement at such time shall have the right (but no obligation), for a
     period of 15 days following receipt of such notice, to elect by notice to
     the Borrower and the Administrative Agent to increase its Commitment by a

                                      -3-

<PAGE>

     principal amount which bears the same ratio to the Increased Commitments as
     its then Commitment bears to the aggregate Commitments then existing. Each
     Lender which fails to respond to any such request shall be conclusively
     deemed to have refused to consent to an increase in its Commitment."

     3.   SECTION 4.04 - REPRESENTATION AS TO FINANCIAL INFORMATION. Section
4.04 of the Credit Agreement is hereby amended to read in full as follows:

          "4.04 FINANCIAL INFORMATION.

               (a)  [RESERVED.]

               (b)  Since December 31, 1999, there has been no material adverse
                    change in the business, financial position, results of
                    operations or prospects of the Borrower and its Consolidated
                    Subsidiaries, considered as a whole."

     4.   SECTION 4.05 - LITIGATION. Section 4.05 of the Credit Agreement is
hereby amended to read in full as follows:

          "4.05 LITIGATION. Except as disclosed in the Borrower's form 10-K
     report for the year ended December 31, 1999 or in its 10-Q reports for the
     quarters ended March 31, 2000, and June 30, 2000, there is no action, suit
     or proceeding pending against, or to the knowledge of the Borrower
     threatened against or affecting, the Borrower or any of its Subsidiaries
     before any court or arbitrator or any governmental body, agency or official
     in which there is a reasonable possibility of an adverse decision which
     could materially adversely affect the business, consolidated financial
     position or consolidated results of operations of the Borrower and its
     Consolidated Subsidiaries or which in any manner draws into question the
     validity or enforceability of this Agreement or the Notes. Without limiting
     the generality of the foregoing, with respect to those litigation matters
     described above as reported in the Borrower's aforementioned form 10-K or
     10-Q reports, (a) the disclosure contained therein was accurate as of the
     date thereof, and (b) since such date there has been no material adverse
     development."

     5.   SECTION 4.07 - REPRESENTATION AS TO TAX FILINGS. Section 4.07 of the
Credit Agreement is hereby amended to read in full as follows:

          "4.07 TAXES. The Borrower and its Significant Subsidiaries have filed
     all United States Federal income tax returns and other material tax returns
     which are required to be filed by them and have paid or agreed to
     settlements of all taxes due pursuant to such returns or pursuant to any
     assessment received by the Borrower or any Subsidiary, except for such
     taxes, if any, as are being contested in good faith and as to which
     adequate reserves have been provided. The charges, accruals and reserves on
     the books of the Borrower and its Significant Subsidiaries in respect of
     taxes or

                                      -4-

<PAGE>

     other governmental charges are, in the opinion of the Borrower, adequate."

     6.   SECTION 4.08 - REPRESENTATION AS TO SUBSIDIARIES. Section 4.08 of the
Credit Agreement is hereby amended to read in full as follows:

          "4.08 SIGNIFICANT SUBSIDIARIES. Each of the Significant Subsidiaries
     (a) is duly formed, validly existing and in good standing under the laws of
     its jurisdiction of formation, (b) has all corporate or other powers and
     authority and all material governmental licenses (including, without
     limitation, any such license issued by a Gaming Board), authorizations,
     consents and approvals required to own its property and assets and carry on
     its business as now conducted and (c) is duly qualified and in good
     standing in each jurisdiction where the ownership, leasing and operation of
     its property or the conduct of its business requires such qualification,
     and the failure to be so qualified would have a material adverse effect on
     the Borrower and its Subsidiaries."

     7.   SECTION 4.11 - REPRESENTATION AS TO FULL DISCLOSURE. Section 4.11 of
the Credit Agreement is hereby amended to read in full as follows:

          "4.11 FULL DISCLOSURE. All information heretofore furnished by the
     Borrower to the Agents or to any Lender for purposes of or in connection
     with this Agreement or any transaction contemplated hereby is, and all such
     information hereafter furnished by the Borrower to the Administrative Agent
     or any Lender will be, taken as a whole, true and accurate in all material
     respects on the date as of which such information is stated or certified.
     The Borrower has disclosed to the Lenders in writing or by means of its
     filings with the Securities and Exchange Commission any and all facts which
     materially and adversely affect or may affect (to the extent the Borrower
     can now reasonably foresee), the business, operations or financial position
     of the Borrower and its Consolidated Subsidiaries, taken as a whole, or the
     ability of the Borrower to perform its obligations under this Agreement.
     With respect to any projections or forecasts provided, such projections or
     forecasts represent, as of the date thereof, management's best estimates
     based on reasonable assumptions and all available information, but are
     subject to the uncertainty inherent in all projections and forecasts."

     8.   SECTION 4.12 - SOLVENCY. Section 4.12 of the Credit Agreement is
hereby amended to read in full as follows:

          "4.12 SOLVENCY. As of the Effective Date (after giving effect to the
     transactions which occurred on that date) and as of August 28, 2000, the
     Borrower and its Significant Subsidiaries are, on a consolidated basis,
     Solvent."

     9.   SECTION 4.14 - REPRESENTATION AS TO YEAR 2000 ISSUES. Section 4.14 of
the Credit Agreement is hereby deleted in its entirety.

                                      -5-

<PAGE>

     10.  SECTION 5.01(a) - CERTAIN PRO FORMA FINANCIAL STATEMENTS. Section
5.01(a) of the Credit Agreement is hereby deleted in its entirety and
designated: "[RESERVED]."

     11.  SECTION 5.06 - NEGATIVE PLEDGE. Section 5.06 of the Credit Agreement
is hereby amended so that clauses (a), (d) and (h) thereto read in full as
follows:

          "(a) Liens existing as of the August 28, 2000;"

          "(d) any Lien on any asset of any corporation or other business entity
     (including without limitation the Persons acquired pursuant to the Caesars
     Acquisition Agreement) existing at the time such corporation or other
     business entity is merged or consolidated with or into the Borrower or a
     Subsidiary and not created in contemplation of such event;"

          "(h) Liens not otherwise permitted by the foregoing clauses of this
     Section encumbering assets of the Borrower and its Consolidated
     Subsidiaries having an aggregate fair market value which is not in excess
     of 10% of Consolidated Net Tangible Assets (determined, in each case, by
     reference to the most recent date for which the Borrower has delivered its
     financial statements under Section 5.01(b))."

     12.  SECTION 5.10 - LEVERAGE RATIO. Section 5.10 of the Credit Agreement is
hereby amended to read in full as follows:

     "5.10 LEVERAGE RATIO. The Leverage Ratio will not, as of the last day of
     any fiscal quarter of the Borrower described in the matrix below, exceed
     the ratio set forth opposite that fiscal quarter:

<TABLE>
<CAPTION>
                  FISCAL QUARTERS ENDING             MAXIMUM RATIO
                  ----------------------             -------------
                  <S>                                <C>
                  September 30, 2000 and
                  December 31, 2000                  4.75:1.00

                  Later Fiscal Quarters              4.50:1.00."
</TABLE>

                                      -6-

<PAGE>

     13.  SECTION 5.11 - INTEREST COVERAGE RATIO. Section 5.11 of the Credit
Agreement is hereby amended to read in full as follows:

         "5.11 INTEREST COVERAGE RATIO. The Interest Coverage Ratio shall not,
         as of the last day of any fiscal quarter of the Borrower described in
         the matrix below, be less than the ratio set forth opposite that fiscal
         quarter:

<TABLE>
<CAPTION>
                  FISCAL QUARTERS ENDING             MINIMUM RATIO
                  ----------------------             -------------
                  <S>                                <C>
                  September 30, 2000 through and
                  including June 30, 2001            2.50:1.00

                  September 30, 2001 through and
                  including March 31, 2002           2.75:1.00

                  Later Fiscal Quarters, if any      3.00:1.00."
</TABLE>

     14.  SECTION 5.12 - COVENANT AS TO YEAR 2000 ISSUES. Section 5.12 of the
Credit Agreement is hereby deleted in its entirety.

     15.  SECTION 8.01(A) - TECHNICAL CORRECTION. Section 8.01(a) of the Credit
Agreement is hereby amended to read in full as follows:

          "(a) the Administrative Agent is advised by the Required Lenders that
     deposits in Dollars and in the required amounts are not being offered to
     the Lenders in the relevant market for such Interest Period, or"

     16.  SECTION 9.05 - ASSIGNMENTS. Section 9.05(e) and the first sentence of
Section 9.05(f) of the Credit Agreement are hereby amended to read in full as
follows:

          "(e) Each Lender may from time to time grant participations in its
     Commitment to one or more Lenders, other financial institutions or special
     purpose trusts; PROVIDED, HOWEVER, that (i) such Lender's obligations under
     this Agreement shall remain unchanged, (ii) such Lender shall remain solely
     responsible to the other parties hereto for the performance of such
     obligations, (iii) the participating Lenders or other financial
     institutions shall not be a Lender hereunder for any purpose EXCEPT, if the
     participation agreement so provides, for the purposes of Sections 2.22,
     8.03 and 9.03 but only to the extent that the cost of such benefits to the
     Borrower does not exceed the cost which the Borrower would have incurred in
     respect of such Lender absent the participation, (iv) the Borrower, the
     Administrative Agent and the other Lenders shall continue to deal solely
     and directly with such Lender in connection with such Lender's rights and
     obligations under this Agreement, (v) the participation interest shall be
     expressed as a percentage of the granting Lender's Commitment as it then
     exists and shall not restrict an increase in the Commitments, or in the
     granting Lender's Commitment, so long as the amount of the participation
     interest is not

                                      -7-

<PAGE>

     affected thereby and (vi) the consent of the holder of such participation
     interest shall not be required for amendments or waivers of provisions of
     the Loan Documents OTHER THAN those which result in (A) a decrease in fees,
     interest rate spreads or principal payable to the holder of such
     participation, (B) increase the Commitment of the granting Lenders and
     thereby increase the funding requirements of the holder of such a
     participation, or (C) extend the Termination Date."

          "(f) Notwithstanding anything to the contrary contained herein, any
     Lender (a "Granting Lender") may grant to one or more special purpose
     funding vehicles (each, an "SPC") of such Granting Lender, identified as
     such in writing from time to time by the Granting Lender to the
     Administrative Agent and the Borrower the option to provide all or any part
     of any Committed Loan or Money Market Loan that such Granting Lender would
     otherwise be obligated to make pursuant to this Agreement, provided that
     (i) nothing herein shall constitute a commitment to make any Loan by any
     SPC, (ii) if an SPC elects not to exercise such option or otherwise fails
     to provide all or any part of such Loan, the Granting Lender shall be
     obligated to make such Loan pursuant to the terms hereof, and (iii) except
     as expressly set forth herein, the rights of any such SPC shall be
     derivative of the rights of the Granting Lender, and each SPC shall be
     subject to all of the restrictions upon the Granting Lender herein
     contained."

     17.  SCHEDULE 1. Schedule 1 to the Credit Agreement is hereby deleted in
its entirety and Schedule 1 hereto is hereby substituted in lieu thereof as
Schedule 1 to the Credit Agreement.

     18.  CERTAIN EXHIBITS. The forms of Exhibit A (Compliance Certificate),
Exhibit B (Note), and Exhibit C (Pricing Certificate) to the Credit Agreement
are hereby deleted in their entirety, and Exhibits E, F and G hereto are hereby
substituted in lieu thereof as Exhibits A, B and C to the Credit Agreement. All
Notes heretofore executed and delivered to Lenders under the Credit Agreement
shall remain valid and in force and effect and need not be surrendered in
exchange for a new Note in the form attached hereto as Exhibit F (the "New
Form"). All Notes issued on and after the date hereof shall be substantially in
the form of the New Form ("New Form Notes"). No New Form Note shall be issued to
any Lender which holds any Note based on the prior form (an "Old Form Note")
unless and until such Lender shall have surrendered all of such Old Form Notes
to the Borrower in exchange for one or more New Form Notes.

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

          (a)  written consents hereto executed by the Required Lenders,
     substantially in the form of Exhibit A hereto;

          (b)  a Joinder and Assumption Agreement with respect to the Credit
     Agreement executed by the Borrower, the Administrative Agent, each new
     Lender becoming a party to the Credit Agreement concurrently with the
     effectiveness of this

                                      -8-

<PAGE>

     Amendment and each existing Lender which is increasing its Commitment under
     the Credit Agreement, substantially in the form of Exhibit B hereto;

          (c)  Fees paid by the Borrower in the amount heretofore agreed upon
     among the Lead Arranger, the Administrative Agent and the Borrower on
     account of each Lender executing a Joinder and Assumption Agreement;

          (d)  Notes for each new Lender becoming a party to the Credit
     Agreement pursuant to the Joinder and Assumption Agreement in the amounts
     of their respective Commitments; and

          (e)  an opinion of Sills Cummis Radin Tischman Epstein & Gross, P.A.,
     substantially in the form of Exhibit C hereto, and an opinion of Sheppard,
     Mullin, Richter & Hampton, LLP, substantially in the form of Exhibit D
     hereto.

     20.  REPRESENTATIONS AND WARRANTIES. The Borrower represents and warrants
to the Administrative Agent and the Banks that, as of the date of this
Amendment, no Default or Event of Default has occurred and remains continuing.

                                      -9-

<PAGE>

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

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

                                PARK PLACE ENTERTAINMENT CORPORATION

                                By:
                                   --------------------------------------------
                                Scott LaPorta, Executive Vice President
                                and Chief Financial Officer

                                BANK OF AMERICA, N.A., as Administrative Agent
                                on behalf of the Required Lenders

                                By:
                                   --------------------------------------------
                                        Janice Hammond, Vice President

                                      -10-

<PAGE>

[Exhibit A to Amendment]

                                CONSENT OF LENDER

     This Consent of Lender is delivered by the undersigned Lender to Bank of
America, N.A., as Administrative Agent, with reference to the Five Year Credit
Agreement dated as of December 31, 1998, as amended by Amendment No. 1 dated as
of August 31, 1999 (the "Credit Agreement"), among Park Place Entertainment
Corporation, the Lenders, Syndication Agent and Documentation Agents referred to
therein, and Bank of America, N.A. (under its former name, Bank of America
National Trust and Savings Association), as Administrative Agent. Capitalized
terms used herein are used with the meanings set forth for those terms in the
Credit Agreement.

     The undersigned hereby consents to the execution and delivery of the
proposed Amendment No. 2 to the Credit Agreement by the Administrative Agent on
behalf of the Lenders, substantially in the form of the draft presented to the
undersigned, and the execution and delivery of the proposed Joinder and
Assumption Agreement attached to said Amendment No. 2 by the parties thereto.

-----------------------------------
[Name of Lender]

By:
   --------------------------------

Title:
      -----------------------------

                                      -11-

<PAGE>

[Exhibit B to Amendment]

                        JOINDER AND ASSUMPTION AGREEMENT
                        --------------------------------

     THIS JOINDER AND ASSUMPTION AGREEMENT (this "Agreement"), dated as of
August 28, 2000 is among Park Place Entertainment Corporation (the "Borrower"),
Bank of America, N.A., Merrill Lynch Capital Corp., First Union National Bank,
Commerzbank, A.G., and Summit Bank (the "Increasing Lenders"), Bankers Trust
Company, The Fuji Bank, Limited and The Bank of Nova Scotia (collectively, the
"Joining Lenders"), and Bank of America, N.A., as the Administrative Agent,
pursuant to the Five Year Credit Agreement referred to below among the Borrower,
the Lenders referred to therein and Administrative Agent. Capitalized terms used
but not defined in this Agreement shall have the meanings defined for those
terms in the Credit Agreement.

                                    RECITALS
                                    --------

     A.   Pursuant the Five Year Credit Agreement dated as of December 31, 1998
among the Borrower, the lenders referred to therein, and the Administrative
Agent (as amended by Amendment No. 1 dated as of August 31, 1999 and as further
amended from time to time (including by Amendment No. 2 as hereinafter defined),
the "Credit Agreement"), such lenders have heretofore provided a $1,500,000,000
senior credit facility to the Borrower.

     B.   Pursuant to Section 2.23 of the Credit Agreement the Borrower has
requested that the aggregate amount of the Lenders' Commitments be increased
from $1,500,000,000 to $2,000,000,000.

     C.   Concurrently herewith, the Credit Agreement is being amended pursuant
to an Amendment No. 2 thereto (the "Amendment No. 2"), and it is intended that
the transactions contemplated herein shall become effective concurrently with
the effectiveness of such Amendment No. 2.

     D.   Each of the Increasing Lenders has agreed to assume an increased
Commitment under the Credit Agreement and each of the Joining Lenders has agreed
to become a party to the Credit Agreement and to have a Commitment thereunder,
and to thereby increase the aggregate Commitments to the amount requested by the
Borrower.

     NOW THEREFORE, the parties hereto agrees as follows:

                                    AGREEMENT
                                    ---------

     1.   EFFECTIVE DATE. Concurrently with the effectiveness of the Amendment
No. 2, the assumptions and increase in the Commitments described herein shall be
effective (such date being referred to herein as the "Amendment Date"). The
Administrative Agent shall provide prompt notice of the Amendment Date to the
parties hereto.

                                      -12-

<PAGE>

     2.   JOINDER BY JOINING LENDERS. By signing this Agreement, each Joining
Lender will become a "Additional Lender" under and pursuant to Section 2.23 of
the Credit Agreement as of the Amendment Date with a Commitment in the amount
set forth in Schedule 1 to the Credit Agreement, as amended by Amendment No. 2
thereto. Each Joining Lender agrees that pursuant to this Agreement it will
become a party to and a Lender under the Credit Agreement on the Amendment Date
and will be bound by all terms, provisions, conditions, obligations and duties
applicable to a Lender under the Credit Agreement and other Loan Documents.

     3.   ASSUMPTION BY INCREASING LENDERS. By signing this Agreement and under
and pursuant to Section 2.23 of the Credit Agreement, each of the Increasing
Lenders severally agrees that, as of the Amendment Date, its Commitment shall be
increased to the amount set forth in Schedule 1 to the Credit Agreement, as
amended by Amendment No. 2 thereto.

     4.   ACCEPTANCE OF INCREASED COMMITMENTS BY THE BORROWER. The Borrower
hereby accepts the new Commitments of the Joining Lenders and the increased
Commitments of the Increasing Lenders effective on the Amendment Date, and
confirms that their allocated Commitments are as set forth in Schedule 1 to the
Credit Agreement, as amended by Amendment No. 2 thereto.

     5.   NO MODIFICATIONS OF CREDIT AGREEMENT. Nothing contained in this
Agreement shall be construed to amend or modify the terms of the Loan Documents
other than to effectuate the joinder and assumptions contemplated herein.

     6.   REPRESENTATIONS, WARRANTIES AND COVENANTS OF THE JOINING LENDERS. Each
Joining Lender hereby severally represents, warrants and covenants as follows:

          (a)  Such Joining Lender is an Eligible Assignee.

          (b)  Such Joining Lender has agreed to become a party to the Credit
     Agreement solely in reliance upon its own independent investigation of the
     financial and other circumstances surrounding the Borrower and all aspects
     of the transactions evidenced by or referenced in the Loan Documents, or
     has otherwise satisfied itself thereto, and that it is not relying upon any
     representation, warranty or statement (except any such representation,
     warranty or statement expressly set forth in this Agreement) of the
     Administrative Agent in connection with the assumption made hereby. Each
     such Joining Lender further acknowledges that it will, independently and
     based upon it's review of such documents and information as it deems
     appropriate at the time, continue to make its own credit decisions in
     connection with the assumption made hereby.

          (c)  Such Joining Lender has experience and expertise in the making of
     loans of the type made under the Credit Agreement and with respect to the
     other types of credit which may be extended under the Credit Agreement; and
     that it has received,

                                      -13-

<PAGE>

     reviewed and approved copies of all Loan Documents.

          (d)  Such Joining Lender has duly authorized, executed and delivered
     this Agreement, and it is legally entitled to enter into the transactions
     contemplated herein.

          (e)  Neither the Administrative Agent nor any other Lender shall be
     responsible to such Joining Lender for the execution, effectiveness,
     accuracy, completeness, legal effect, genuineness, validity,
     enforceability, collectibility or sufficiency of any of the Loan Documents
     (other than its own due execution of the Loan Documents) or for any
     representations, warranties, recitals or statements made therein or in any
     written or oral statement or in any financial or other statements,
     instruments, reports, certificates or any other documents made or furnished
     or made available by the Administrative Agent to such Joining Lender (other
     than written representations, warranties, recitals or statements made by
     such party therein) or by or on behalf of the Borrower to the
     Administrative Agent and the Lenders or the Joining Lender in connection
     with the Loan Documents and the transactions contemplated thereby or for
     the financial condition or business affairs of the Borrower or any other
     Person liable for the payment of any Advance or payment of amounts owed in
     connection with other extensions of credit under the Credit Agreement or
     any other matter. The Administrative Agent shall not be required to
     ascertain or inquire as to the performance or observance of any of the
     terms, conditions, provisions, covenants or agreements contained in any of
     the Loan Documents or as to the use of the proceeds of the Advances or
     other extensions of credit under the Credit Agreement or as to the
     existence or possible existence of any Default or Event of Default.

     7.   REPRESENTATIONS AND WARRANTIES OF INCREASING LENDERS. Each Increasing
Lender hereby severally represents and warrants as follows:

          (a)  Such Increasing Lender has duly authorized, executed and
     delivered this Agreement and it is legally entitled to enter into the
     transactions contemplated herein.

          (b)  Such Increasing Lender has obtained all consents, if any, which
     are required for the increase in its Commitment pursuant hereto, including
     the consent of each Lender or other financial institution, if any, to which
     such Increasing Lender has granted a participation in its Commitment.

     8.   FEES. In consideration for the joinder and assumptions described
herein, the Borrower shall pay to each Joining Lender and each Increasing Lender
the fees described in letter agreements between each such Lender and the Lead
Arranger and advised by the Lead Arranger to the Borrower.

     9.   BENEFICIARIES OF THIS AGREEMENT. Each Joining Lender and each
Increasing Lender hereby severally acknowledges and agrees that the Agreement
set forth herein are for the express benefit of the Borrower, the Administrative
Agent and the other Lenders and their

                                      -14-

<PAGE>

respective successors and permitted assigns.

     10.  GOVERNING LAW. This Agreement and the transactions contemplated
hereunder shall be governed by and construed and enforced in accordance with the
laws of the State of California.

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

                              "Joining Lenders"

                              BANKERS TRUST COMPANY

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

                              THE FUJI BANK, LIMITED

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

                              THE BANK OF NOVA SCOTIA

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

                              "Increasing Lenders"

                              BANK OF AMERICA, N.A.

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

                              MERRILL LYNCH CAPITAL CORP.

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

                                      -15-

<PAGE>

                              FIRST UNION NATIONAL BANK

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

                              COMMERZBANK, A.G.

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

                              SUMMIT BANK

                              By:
                                 ------------------------------------
                              Name:
                                   ----------------------------------
                              Title:
                                    ---------------------------------

ACKNOWLEDGED AND AGREED TO:

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

By:
   ----------------------------------------
Janice Hammond, Vice President

PARK PLACE ENTERTAINMENT CORPORATION

By:
   ----------------------------------------
Scott A. LaPorta, Executive Vice President
and Chief Financial Officer

                                      -16-

<PAGE>

[Exhibit C - Sills, Cummis Opinion]
[Exhibit D - Sheppard, Mullin Opinion]
[Exhibit E - Revised Compliance Certificate]
[Exhibit F - Revised Note]
[Exhibit G - Revised Pricing Certificate]
[Schedule 1 - Replacement Lender Commitments Listing]

                                      -17-

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