Amended and Restated Ltd. Liability Co. Agm't of Harrah's Maryland Heights LLC

This Amended and Restated Limited Liability Company Agreement of Harrah’s Maryland Heights LLC (the “Company”) is made as of June 30, 2000 (the “Agreement”), by and among Harrah’s Maryland Heights Operating Company, a Nevada corporation (“HMHOC”), Harrah’s Operating Company, Inc., a Delaware corporation (“HOCI”), Players Maryland Heights, Inc. (“PMHI”), and Players Maryland Heights Nevada, Inc. (“PMHN”), as members of the Company.

WHEREAS, the Company was formed on October 16, 1995 pursuant to the Delaware Limited Liability Company Act, 6 Del. C. § 18-101, et seq., as amended from time to time (the “Delaware Act”), by the filing of a Certificate of Formation of the Company with the office of the Secretary of the State of Delaware and entering into a Limited Liability Company Agreement; and

WHEREAS, by virtue of a merger of Harrah’s MH, L.P. into the Company on the date hereof, PMHI and PMHN have become Members of the Company by virtue of such merger and by their prior interests in Harrah’s MH, L.P.

NOW, THEREFORE, in consideration of the agreements and obligations set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Members desire to amend and restate the Agreement and hereby agree as follows:

Section 1.1. Definitions. Unless the context otherwise requires, the terms defined in this Article I shall, for the purpose of this Agreement, have the meanings herein specified.

“Affiliate” means with respect to a specific Person, any Person that directly or indirectly controls, is controlled by, or is under common control with, the specified Person. As used in this definition, the term “control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and policies of a Person, whether through ownership of voting securities, by contract or otherwise.

“Agreement” means this Limited Liability Company Agreement of the Company, as amended, modified, supplemented or restated from time to time.

“Capital Account” means, with respect to any Member, the account maintained for such Member in accordance with the provisions of Section 4.4 hereof.

“Capital Contribution” means, with respect to any Member, the aggregate amount of money and the initial Gross Asset Value of any property (other than money) contributed to the Company pursuant to Section 4.1 hereof with respect to such Member’s Interest.

“Certificate” means the Certificate of Formation of the Company and any and all amendments thereto and restatements thereof filed on behalf of the Company with the office of the Secretary of State of the State of Delaware pursuant to the Delaware Act.

“Code” means the Internal Revenue Code of 1986, as amended from time to time, or any corresponding federal tax statute enacted after the date of this Agreement. A reference to a specific section (§) of the Code refers not only to such specific section but also to any corresponding provision of any federal tax statute enacted after the date of this Agreement, as such specific section or corresponding provision is in effect on the date of application of the provisions of this Agreement containing such reference.

“Company” means Harrah’s Maryland Heights LLC, the limited liability company formed under and pursuant to the Delaware Act and this Agreement.

“Covered Person” means any Member, any Affiliate of a Member or any officers, directors, shareholders, partners, employees, representatives or agents of a Member or their respective Affiliates, or any employee or agent of the Company or its Affiliates.

“Delaware Act” means the Delaware Limited Liability Company Act, 6 Del. C. § 18-101, et seq., as amended from time to time.

“Depreciation” means, for each Fiscal Year or other period, an amount equal to the depreciation amortization or other cost recovery deduction allowable with respect to an asset for such Fiscal Year or other period; provided, however, that if the Gross Asset Value of an asset differs from its adjusted basis for federal income tax purposes at the beginning of such Fiscal Year or other period, Depreciation shall be an amount that bears the same ratio to such beginning Gross Asset Value as the federal income tax depreciation, amortization or other cost recovery deduction with respect to such asset for such Fiscal Year or other period bears to such beginning adjusted tax basis; and provided further, that if the federal income tax depreciation, amortization or other cost recovery deduction for such Fiscal Year or other period is zero, Depreciation shall be determined with reference to such beginning Gross Asset Value using any reasonable method selected by the Managing Member.

“Fiscal Year” means (i) the period commencing upon the formation of the Company and ending on December 31, 1995, (ii) any subsequent twelve (12) month period commencing on January 1 and ending on December 31, or (iii) any portion of the period described in Clause (ii) of this sentence for which the Company is required to allocated Profits, Losses and other items of Company income, gain, loss or deduction pursuant to Article VIII hereof.

“Gross Asset Value” means, with respect to any asset, such asset’s adjusted basis for federal income tax purposes, except as follows:

1. the initial Gross Asset Value of any asset contributed by a Member to the Company shall be the gross fair market value of such asset, as agreed to by the contributing Member and the Managing Member, or in the case of any asset contributed by the Managing Member, as determined by the Managing Member;

2. the Gross Asset Value of all Company assets shall be adjusted to equal their respective gross fair market values, as determined by the Managing Member, as of the following times: (a) the distribution by the Company to a Member of more than a de minimis amount of Company assets as consideration for such Member’s Interest; and (b) the liquidation of the Company within the meaning of Treasury Regulation §1.704-l(b)(2)(ii)(g); provided, however, that adjustments pursuant to Clause (a) of this sentence shall be made only if the Managing Member reasonably determines that such adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company; and

3. the Gross Asset Value of any Company asset distributed to any Member shall be the gross fair market of such asset on the date of distribution, as determined by the Managing Member.

If the Gross Asset Value of an asset has been determined or adjusted pursuant to Paragraph 1 or Paragraph 2 above, such Gross Asset Value shall thereafter be adjusted by the Depreciation taken into account with respect to such asset for purposes of computing Profits and Losses.

“Interest” means a Member’s share of the profits and losses of the Company and a Member’s rights to receive distributions of the Company’s assets in accordance with the provisions of this Agreement and the Delaware Act.

“Member” means HMHOC, HOCI, PMHI, and PMHN, individually, when acting in the capacity of each as a member of the Company, and “Members” means HMHOC, HOCI, PMHI, and PMHN, collectively, when acting in their capacities as members of the Company. For all purposes of the Delaware Act, all Members shall constitute a single class or group of members.

“Net Cash Flow” means, for each Fiscal Year or other period of the Company, the gross cash receipts of the Company from all sources, but excluding any amounts, such as gross receipts taxes, that are held by the Company as a collection agent or in trust for others or that are otherwise not unconditionally available to the Company, less all amounts paid by or for the account of the Company during the same Fiscal Year or other period (including, without limitation, payments of principal and interest on any Company indebtedness and expenses reimbursed to the Members under Section 5.2 hereof), and less any amounts determined by the Managing Member to be necessary to provide a reasonable reserve for working-capital needs or any other contingencies of the Company. Net Cash Flow shall be determined in accordance with

the accrual method of accounting and otherwise in accordance with generally accepted accounting principles consistently applied. Net Cash Flow shall not be reduced by depreciation, amortization, cost recovery deductions, depletion, similar allowances or other non-cash items, but shall be increased by any reduction of reserves previously established.

“Percentage Interest” means the Interest of a Member, expressed as a percentage of one hundred percent, as shown on Schedule A hereto.

“Permitted Temporary Investment” means any investment of a type listed on Exhibit II hereto.

“Person” means any individual, corporation, association, partnership (general or limited), joint venture, trust, estate, limited liability company, or other legal entity or organization.

“Profits” and “Losses” means, for each Fiscal Year, an amount equal to the Company’s taxable income or loss for such Fiscal Year, determined in accordance with § 703(a) of the Code (but including in taxable income or loss, for this purpose, all items of income, gain, loss or deduction required to be stated separately pursuant to § 703(a)(l) of the Code), with the following adjustments:

(i) any income of the Company exempt from federal income tax and not otherwise taken into account in computing Profits or Losses pursuant to this definition shall be added to such taxable income or loss;

(ii) any expenditures of the Company described in § 705(a)(2)(B) of the Code (or treated as expenditures described in § 705(a)(2)(B) of the Code pursuant to Treasury Regulation § 1.704-1 (b)(2)(iv)(i) and not otherwise taken into account in computing Profits or Losses pursuant to this definition shall be subtracted from such taxable income or loss;

(iii) in the event the Gross Asset Value of the Company asset is adjusted in accordance with Paragraph 1 or Paragraph 3 of the definition “Gross Asset Value” above, the amount of such adjustment shall be taken into account as gain or loss from the disposition of such asset for purposes of computing Profits or Losses;

(iv) gain or loss resulting from any disposition of any asset of the Company with respect to which gain or loss is recognized for federal income tax purposes shall be computed by reference to the Gross Asset Value of the asset disposed of, notwithstanding that the adjusted tax basis of such asset differs from its Gross Asset Value; and

(v) in lieu of the depreciation, amortization and other cost recovery deductions taken into account in computing such taxable income or loss, there shall be taken into account Depreciation for such Fiscal Year or other period, computed in accordance with the definition of “Depreciation” above.

“Property” means the real estate, including both land and all improvements constructed or to be constructed thereon, located in the City of Maryland Heights, St. Louis County,

Missouri, that is more fully described in the deeds to be executed by HMHOC and HOCI to convey such real estate to the Company pursuant to Section 4.1 hereof, copies of which are attached hereto as Exhibit I and made a part hereof.

“Transaction Documents” means any documents relating to the acquisition, ownership, development, management, operation, maintenance, leasing or disposition of the Property or an excursion gambling boat (as defined in MoRS 313.800(7)), including, without limitation, any ground lease, operating lease, reciprocal easement or financing or regulatory related document.

“Treasury Regulations” means the income tax regulations, including temporary regulation, promulgated under the Code, as such regulations may be amended from time to time (including corresponding provisions of succeeding regulations).

Section 1.2. Headings. The headings and subheadings in this Agreement are included for convenience and identification only and are in no way intended to describe, interpret, define or limit the scope, extent or intent of this Agreement or any provision hereof.

(i) The Company was formed under and pursuant to the provisions of the Delaware Act on October 16, 1995 and the Members agree that the rights, duties and liabilities of the Members shall be as provided in the Delaware Act, except as otherwise provided herein.

(ii) Upon the execution of this Agreement, HMHOC, HOCI, PMHI, and PMHN shall be members of the Company.

(iii) The name and mailing address of each Member and the amount contributed to the capital of the Company shall be listed on Schedule A attached hereto. The Managing Member shall be required to update Schedule A from time to time as necessary to accurately reflect the information therein. Any amendment or revision to Schedule A made in accordance with this Agreement shall not be deemed an amendment to this Agreement. Any reference in this Agreement to Schedule A shall be deemed to be a reference to Schedule A as amended and in effect from time to time.

(iv) The Managing Member, as an authorized person within the meaning of the Delaware Act, shall execute, deliver and file the Certificate and any and all amendments thereto and restatements thereof.

Section 2.2. Name. The name of the limited liability company formed hereby and by the filing of the Certificate is Harrah’s Maryland Heights LLC. The business of the Company may be conducted upon compliance with all applicable laws under any other name designated by the Managing Member.

Section 2.3. Term. The term of the Company commenced on the date of the filing of the Certificate in the office of the Secretary of State of the State of Delaware and shall continue until December 31, 2080, unless dissolved before such date in accordance with the provisions of this Agreement.

Section 2.4. Registered Agent and Office. The Company’s registered agent and office in Delaware is CSC The United States Corporation Company, 1013 Centre Road, Wilmington, New Castle County, Delaware 19801. At any time, the Managing Member may designate another registered agent and/or registered office.

Section 2.5. Principal Place of Business. The principal place of business of the Company shall be at One Riverboat Drive, North Kansas City, Missouri 64116. At any time, the Managing Member may change the location of the Company’s principal place of business.

Section 2.6. Qualification in Other Jurisdictions. The Managing Member shall cause the Company to be qualified, formed or registered under assumed or fictitious name statutes or similar laws in any jurisdiction in which the Company transacts business in which such qualification, formation or registration is required or desirable. The Managing Member, as an authorized person within the meaning of the Delaware Act, shall execute, deliver and file any certificates (and any amendments and/or restatements thereof) necessary for the Company to qualify to do business in a jurisdiction in which the Company may wish to conduct business.

Section 3.1. Purpose. The Company is formed for the object and purpose of, and the nature of the business to be conducted and promoted by the Company is, engaging in any lawful act or activity for which limited liability companies may be formed under the Delaware Act and engaging in any and all activities necessary, convenient, desirable or incidental to the foregoing, including, without limitation, acquiring, owning, developing, managing, operating, maintaining, leasing or disposing of the Property and owning, developing, operating, managing and disposing of an excursion gambling boat (as defined in MoRS 313.800(7) in the City of Maryland Heights, St. Louis County, Missouri.

(i) The Company shall have the power and authority to take any and all actions necessary, appropriate, proper, advisable, convenient or incidental to or for the

furtherance of the purpose set forth in Section 3.1, including, but not limited to the power:

(a) to conduct its business, carry on its operations and have and exercise the powers granted to a limited liability company by the Delaware Act in any state, territory, district or possession of the United States, or in any foreign country that may be necessary, convenient or incidental to the accomplishment of the purpose of the Company;

(b) to acquire by purchase, lease, contribution of property or otherwise, own, hold, operate, maintain, finance, improve, lease, sell, convey, mortgage, transfer, demolish or dispose of any real or personal property (including the Property) that may be necessary, convenient or incidental to the accomplishment of the purpose of the Company;

(c) to enter into, perform and carry out contracts of any kind, including, without limitation, contracts with any Member or any Affiliate thereof, or any agent of the Company necessary to, in connection with, convenient to, or incidental to the accomplishment of the purpose of the Company, including, without limitation, the Transaction Documents and any and all contracts contemplated thereby;

(d) to purchase, take, receive, subscribe for or otherwise acquire, own, hold, vote, use, employ, sell, mortgage, lend, pledge, or otherwise dispose of, and otherwise use and deal in and with, shares or other interests in or obligations of domestic or foreign corporations, associations, general or limited partnerships (including, without limitation, the power to be admitted as a partner thereof and to exercise the rights and perform the duties created thereby), trusts, limited liability companies (including, without limitation, the power to be admitted as a member or appointed as a manager thereof and to exercise the rights and perform the duties created thereby), or individuals or direct or indirect obligations of the United States or of any government, state, territory, governmental district or municipality or of any instrumentality of any of them;

(e) to lend money for any proper purpose, to invest and reinvest its funds, and to take and hold real and personal property for the payment of funds so loaned or invested;

(f) to sue and be sued, complain and defend, and participate in administrative or other proceedings, in its name;

(g) to appoint employees and agents of the Company, and define their duties and fix their compensation;

(h) to indemnify any Person in accordance with the Delaware Act and to obtain any and all types of insurance;

(j) to negotiate, enter into, renegotiate, extend, renew, terminate, modify, amend, waive, execute, acknowledge or take any other action with respect to any lease, contract or security agreement in respect of any assets of the Company;

(k) to borrow money and issue evidences of indebtedness, and to secure the same by a mortgage, pledge or other lien on the assets of the Company;

(1) to pay, collect, compromise, litigate, arbitrate or otherwise adjust or settle any and all other claims or demands of or against the Company or to hold such proceeds against the payment of contingent liabilities; and

(m) to make, execute, acknowledge and file any and all documents or instruments necessary, convenient or incidental to the accomplishment of the purpose of the Company.

(ii) The Company, and the Managing Member on behalf of the Company, may enter into and perform the Transaction Documents and any and all documents, agreements and instruments contemplated thereby, all without any further act, vote or approval of any Member notwithstanding any other provision of this Agreement, the Delaware Act or other applicable law. The Managing Member is hereby authorized to enter into and perform on behalf of the Company the Transaction Documents and any and all documents, agreements and instruments contemplated thereby, but such authorization shall not be deemed a restriction on the power of the Managing Member to enter into other documents on behalf of the Company. The Managing Member may authorize any Person (including, without limitation, any other Member) to enter into and perform any document on behalf of the Company.

(iii) The Company may merge with, or consolidate into, another Delaware limited liability company or other business entity (as defined in Section 18-209(a) of the Delaware Act) upon the approval of the Managing Member in its sole discretion.

Section 3.3. Limitations on Company Powers. Notwithstanding the foregoing provision in Section 3.2, the Company shall not do business in any jurisdiction that would jeopardize the limitation on liability afforded to the Members under the Delaware Act or this Agreement.

(i) Each Member has contributed or is deemed to have contributed the amount set forth on Schedule A attached hereto to the capital of the Company. The agreed value of the Capital Contributions made or deemed to have been made by each Member shall be set forth on Schedule A.

(ii) No Member shall be required to make any additional capital contribution to the Company. However, a Member may make additional capital contributions of the Company with the written consent of the Managing Member.

Section 4.2. Member’s Interest. A Member’s Interest shall for all purposes be personal property. A Member has no interest in specific Company property.

(i) Except as otherwise provide din this Agreement, the amount of a Member’s Capital Contributions may be returned to it, in whole or in part, at any time, but only with the consent of the Managing Member. Any such returns of Capital Contributions shall be made to all Members in the same proportions as distributions and allocations are made. Notwithstanding the foregoing, no return of a Member’s Capital Contributions shall be made hereunder if such distribution would violate applicable state law. Under circumstances requiring a return of any Capital Contribution, no Member shall have the right to demand or receipt property other than cash, except as may be specifically provided in this Agreement.

(ii) No Member shall receive any interest, salary or drawing with respect to its Capital Contributions or its Capital Account or for services rendered on behalf of the Company or otherwise in its capacity as a Member (including as a Managing Member), except as otherwise specifically provided in this Agreement.

(iii) Except as otherwise provided herein and by applicable state law, the Members shall be liable only to make their Capital Contributions pursuant to Section 4.1 hereof, and no Member shall be required to lend any funds to the Company or, after a Member’s Capital Contributions have been fully paid pursuant to Section 4.1 hereof, to make any additional capital contributions to the Company. No Member shall have any personal liability for the repayment of any Capital Contribution of any other Member.

(i) An individual Capital Account shall be established and maintained for each Member.

(ii) The Capital Account of each Member shall be maintained in accordance with the following provisions:

(a) to such Member’s Capital Account, there shall be credited such member’s Capital Contributions, such Member’s distributive share of Profits and the amount of any Company liabilities that are assumed by such Member or that are secured by any Company assets distributed to such Member;

(b) to such Member’s Capital Account there shall be debited the amount of cash and the Gross Asset Value of any Company assets distributed to such Member pursuant to any provision of this Agreement, such Member’s distributive share of Losses and the amount of any liabilities of such Member that are assumed by the Company or that are secured by any property contributed by such Member to the Company; and

(c) in determining the amount of any liability for purposes of this Subsection (ii), there shall be taken into account § 752(c) of the Code and any other applicable provisions of the Code and the Treasury Regulations.

Section 4.5. Advances. If any Member shall advance any funds to the Company in excess of its Capital Contributions, the amount of such advance shall neither increase its Capital Account nor entitle it to any increase in its share of the distributions of the Company. The amount of any such advance shall be a debt obligation of the Company to such Member and shall be repaid to it by the Company upon such terms and conditions as shall be determined by the Managing Member. Any such advance shall be payable and collectible only out of Company assets, and the other Members shall not be personally obligated to repay any part thereof. No Person who makes any nonrecourse loan to the Company shall have or acquire, as a result of making such loan, any direct or indirect interest in the profits, capital or property of the Company, other than as a creditor.

Section 5.1. Powers of Members. The Members shall have the power to exercise any and all rights or powers granted to the members pursuant to the express terms of this Agreement. Except as otherwise specifically provided by this Agreement or required by the Delaware Act, no Member other than the Managing Member shall have the power to act for or on behalf of, or to bind, the Company. Notwithstanding the foregoing sentence, all Members shall constitute one class or group of the Company for all purposes of the Delaware Act.

Section 5.2. Reimbursements. The Company shall reimburse the Members, including the Managing Member, for all ordinary and necessary out-of-pocket expenses incurred by the Members on behalf of the Company. The Managing Member’s determination of which expenses may be reimbursed to a Member, including the Managing Member, and the amount of such expenses shall be conclusive. Such reimbursement shall be treated as an expense of the Company that shall be deducted in computing the Net Cash Flow and shall not be deemed to constitute a distributive share of Profits or a distribution or return of capital to any Member.

Section 5.3. Partition. Each Member waives any and all rights that it may have to maintain an action for partition of the Company’s property.

Section 5.4. Transfer and Resignation. A Member may not assign or transfer all or any part of its Interest to any Person except pursuant to an assignment by merger, operation of law or an event free from Federal income taxation, which results in no change in ultimate beneficial ownership. A Member may not resign from the Company prior to the dissolution and winding up of the Company. A resigning Member shall not be entitled to receive any distribution and shall not otherwise be entitled to receive the fair value of its Interest except as otherwise expressly provided for in this Agreement.

(i) HMHOC shall be the managing member of the Company (the “Managing Member” and, in such capacity, shall manage the Company in accordance with this Agreement. The Managing Member is an agent of the Company, and the actions of the Managing Member taken in such capacity and in accordance with this Agreement shall bind the Company.

(ii) The Managing Member shall have full, exclusive and complete discretion to manage and control the business and affairs of the Company, to make all decisions affecting the business and affairs of the Company and to take all such actions as it deems necessary or appropriate to accomplish the purpose of the Company as set forth herein. The Managing Member shall be the sole Person with the power to bind the Company, except and to the extent that such power is expressly delegated to any other Person by the Managing Member, and such delegation shall not cause the Managing Member to cease to be a Member, or the managing member of the Company. The Managing Member shall be a “manager” (within the meaning of the Act) of the Company.

(iii) The Managing Member may appoint individuals (including, without limitation, officers of HMHOC) with such titles as it may elect, including the titles of President, Vice President, Treasurer and Secretary, to act on behalf of the Company with such power and authority as the Managing Member may delegate in writing to any such Person.

Section 6.2. Powers of the Managing Member. The Managing Member shall have the right, power and authority, in the management of the business and affairs of the Company, to do or cause to be done any and all acts, at the expense of the Company, deemed by the Managing Member to be necessary or appropriate to effectuate the business, purposes and objectives of the Company. Without limiting the generality of the foregoing, the Managing Member shall have the power and authority to:

(a) establish a record date with respect to all actions to be taken hereunder that require a record date be established, including with respect to allocations and distributions;

(b) bring and defend on behalf of the Company actions and proceedings at law or in equity before any court or governmental, administrative or other regulatory agency, body or commission or otherwise;

(c) execute all documents or instruments, perform all duties and powers and do all things for and on behalf of the Company in all matters necessary, desirable, convenient or incidental to the purpose of the Company, including, without limitation, the Transaction Documents, all documents, agreements and instruments related thereto and the consummation of all transactions contemplated thereby; and

(d) exercise on behalf of the Company any and all of the powers set forth in Section 3.2 of this Agreement.

The expression of any power or authority of the Managing Member in this Agreement shall not in any way limit or exclude any other power or authority which is not specifically or expressly set forth in this Agreement.

Section 6.3. No Management by Other Members. Except as otherwise expressly provided herein, no Member other than the Managing Member shall take part in the day-to-day management, or the operation or control of the business and affairs of the Company. Except and only to the extent expressly delegated by the Managing Member, no Member or other Person other than the Managing Member shall be an agent of the Company or have any right, power or authority to transact any business in the name of the Company or to act for or on behalf of or to bind the Company.

Section 6.4. Reliance by Third Parties. Any Person dealing with the Company or the Managing Member may rely upon a certificate signed by the Managing Member as to:

(b) the existence or non-existence of any fact or facts which constitute a condition precedent to acts by the Managing Member or in any other manner germane to the affairs of the Company;

(d) any act or failure by the Company or as to any other matter whatsoever involving the Company or any Member.

Section 7.1. Amendments. Any amendment to this Agreement shall be adopted and be effective as an amendment hereto if approved by the Managing Member, provided, however, that no amendment shall be made, and any such purported amendments shall be void and ineffective, to the extent the result thereof would be to cause the Company to be treated as anything other than a partnership for purposes of United States income taxation.

(i) Meetings of the Members may be called at any time by the Managing Member. Notice of any meeting shall be given to all Members not less than two (2) days nor more than thirty (30) days prior to the date of such meeting. Each Member may authorize any Person to act for it by proxy on all matters in which a Member is entitled to participate, including waiving notice of any meeting, or voting or participating at a meeting. Every proxy must be signed by the Member or its attorney-in-fact.

(ii) Each meeting of Members shall be conducted by the Managing Member or by such other Person that the Managing Member may designate. The Managing Member, in its sole discretion, shall establish all other provisions relating to meetings of Members, including notice of the time, place or purpose of any meeting at which may matter is to be voted on by any Members, waiver of any such notice, action by consent without a meeting, the establishment of a record date, quorum requirements, voting in person or by proxy or any other matter with respect to the exercise of any such right to vote.

Section 8.1. Profits and Losses. Subject to the allocation rules of Section 8.2 hereof, Profits and Losses for any Fiscal Year shall be allocated among the Members in proportion to their Percentage Interests.

(i) For purposes of determining the Profits, Losses or any other items allocable to any period, Profits, Losses and any such other items shall be determined on a daily, monthly or other basis, as determined by the Managing Member using any method that is permissible under §706 of the Code and the Treasury Regulations thereunder.

(ii) Except as otherwise provided in this Agreement, all items of Company income, gain, loss, deduction and any other allocations not otherwise provided for shall be divided among the Members in the same proportions as they share Profits and Losses for the Fiscal Year in question.

(iii) The Members are aware of the income tax consequences of the allocations made by this Article VIII and hereby agree to be bound by the provisions of this Article VIII in reporting their shares of Company income and loss for income tax purposes.

(i) In accordance with §704(c) of the Code and the Treasury Regulations thereunder, income, gain, loss and deduction with respect to any property contributed to the capital of the Company shall, solely for income tax purposes, be allocated among the Members so as to take account of any variation between the adjusted basis of such property to the Company for federal income tax purposes and its initial Gross Asset Value (computed in accordance with Section 1.1 hereof).

(ii) In the event the Gross Asset Value of any Company asset is adjusted pursuant to Paragraph 2 of the definition of “Gross Asset Value” contained in Section 1.1 hereof, subsequent allocations of income, gain, loss and deduction with respect to such asset shall take account of any variation between the adjusted basis of such asset for federal income tax purposes and its Gross Asset Value in the same manner as under §704)(c) of the Code and the Treasury Regulations thereunder.

(iii) Any elections or other decisions relating to allocations under this Section 8.3, including the selection of any allocation method permitted under Treasury Regulation §1.704-3, shall be made by the Managing Member in any manner that reasonably reflects the purpose and intention of this Agreement. Allocations pursuant to this Section 8.3 are solely for purposes of federal, state and local taxes and shall not affect, or in any way be taken into account in computing, any Member’s Capital Account or share of Profits, Losses, other items or distributions pursuant to any provision of this Agreement.

Section 9.1. Net Cash Flow. Except as otherwise provided in Article XIV hereof (relating to the dissolution of the Company), any distribution of the Net Cash Flow during any Fiscal Year shall be made to the Members in proportion to their Percentage Interests.

(i) All distributions pursuant to Section 9.1 hereof shall be at such times and in such amounts as shall be determined by the Managing Member; provided, however, that the Managing Member shall use its best efforts to cause the Company to distribute to the Members an amount of Net Cash Flow as shall be sufficient to enable the Members to fund their federal and state income tax liabilities attributable to their respective distributive shares of the taxable income of the Company.

(ii) All amounts withheld pursuant to the Code or any provision of any state or local tax law with respect to any payment, distribution or allocation to the Company or the members shall be treated as amounts distributed to the Members pursuant to this Article IX for all purposes of this Agreement. The Managing Member is authorized to withhold from distributions and to pay over to any federal, state or local government any amounts required to be so withheld pursuant to the Code or any provision of any other federal, state or local law and shall allocate such amounts to those Members with respect to which such amounts were withheld.

Section 9.3. Limitations on Distribution. Notwithstanding any provision to the contrary contained in this Agreement, the Company shall not make a distribution to any Member with respect to such Member’s Interest if such distribution would violate Section 18-607 of the Delaware Act or other applicable law.

(i) At all times during the continuance of the Company, the Company shall maintain, at its principal place of business, separate books of account for the Company that shall show a true and accurate record of all costs and expenses incurred, all charges

made, all credits made and received and all income derived in connection with the operation of the Company business in accordance with generally accepted accounting principles consistently applied, and, to the extent inconsistent therewith, in accordance with this Agreement. Such books of account, together with a copy of this Agreement and of the Certificate, shall at all times be maintained at the principal place of business of the Company and shall be open to inspection and examination at reasonable times by each Member and its duly authorized representative for any purpose reasonable related to such Member’s interest as a member of the Company.

(ii) The Managing Member shall prepare and maintain, or cause to be prepared and maintained, the books of account of the Company. The following financial information, which need not be examined and certified to by an independent certified public accountant, shall be transmitted by the Managing Member to each Member within three (3) months after the close of each Fiscal Year:

Section 10.2. Accounting Method. For both financial and tax reporting purposes and for purposes of determining profits and losses, the books and records of the Company shall be kept on the accrual method of accounting applied in a consistent manner and shall reflect all Company transactions and be appropriate for the Company’s business.

Section 10.3. Audit. At any time at the Managing Member’s sole discretion, the financial statements of the Company may be audited by an independent certified public accountant, selected by the Managing Member, with such audit to be accompanied by a report of such accountant containing its opinion. The cost of such audits will be an expense of the Company. A copy of any such audited financial statements and accountant’s report will be made available for inspection by the Members.

Section 11.1. Tax Matters Member. The Managing Member is hereby designated as “Tax Matters Member” of the Company for purposes of §6231(a)(7) of the Code and shall have the power to manage and control, on behalf of the Company, any administrative proceeding at the Company level with the Internal Revenue Service relating to the determination of any item of Company income, gain, loss, deduction of credit for federal income tax purposes.

Section 11.2. Right to Make Section 754 Election. The Tax Matters Member may, in its sole discretion, make or revoke, on behalf of the Company, an election in accordance with § 754 of the Code, so as to adjust the basis of Company property in the case of a distribution of property within the meaning of § 734 of the Code, and in the case of a transfer of a Company interest within the meaning of § 743 of the Code. Each Member shall, upon request of the Tax Matters Member, supply the information necessary to give effect to such an election.

Section 11.3. Taxation as Partnership. The Company shall be treated as a partnership for U.S. federal income tax purposes.

(i) Except as otherwise provided by the Delaware Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be solely the debts, obligations and liabilities of the Company, and no Covered Person shall be obligated personally for any such debt, obligation or liability of the Company solely by reason of being a Covered Person.

(ii) Except as otherwise expressly required by law, a Member, including the Managing Member, in its capacity as Member or Managing Member, shall have no liability in excess of (a) the amount of its Capital Contributions, (b) its share of any assets and undistributed profits of the Company, (c) its obligation to make other payments expressly provided for in this Agreement, and (d) the amount of any distributions wrongfully distributed to it.

(i) No Covered Person shall be liable to the Company or any other Covered Person for any loss, damage or claim incurred by reason of any act or omission performed or omitted by such Covered Person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this Agreement, except that a Covered Person shall be liable for any such loss, damage or claim incurred by reason of such Covered Person’s gross negligence or willful misconduct.

(ii) A Covered Person shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by any Person as to matters the Covered Person reasonably believes are within such other Person’s professional or expert competence and who has been selected with reasonable care by or on behalf of the Company, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits, losses, or any other facts pertinent to the existence and amount of assets from which distributions to Members might properly be paid.

(i) To the extent that, at law or in equity, a Covered Person has duties (including fiduciary duties) and liabilities relating thereto to the Company or to any other Covered Person, a Covered Person acting under this Agreement shall not be liable to the Company or to any other Covered Person for its good faith reliance on the provisions of this Agreement. The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Covered Person otherwise existing at law or in equity, are agreed by the parties hereto to replace such other duties and liabilities of such Covered Person.

(ii) Unless otherwise expressly provided herein, (a) whenever a conflict of interest exists or arises between the Managing Member and any other Covered Person, or (b) whenever this Agreement or any other agreement contemplated herein or therein provides that the Managing Member shall act in a manner that is, or provide terms that are, fair and reasonable to the Company or any other Member, the Managing Member shall resolve such conflict of interest, take such action or provide such terms, considering in each case the relative interest of each party (including its own interest) to such conflict, agreement, transaction or situation and the benefits and burdens relating to such interests, any customary or accepted industry practices, and any applicable generally accepted accounting practices or principles. In the absence of bad faith by the Managing Member, the resolution, action or term so made, taken or provided by the Managing Member shall not constitute a breach of this Agreement or any other agreement contemplated herein or of any duty or obligation of the Managing Member at law or in equity or otherwise.

(iii) Whenever in this Agreement a Covered Person is permitted or required to make a decision (a) in its “discretion” or under a grant of similar authority or latitude, the Covered Person shall be entitled to consider only such interests and factors as it desires, including its own interests, and shall have no duty or obligation to give any consideration to any interest of or factors affecting the Company or any other Person, or (b) in its “good faith” or under another express standard, the Covered Person shall act under such express standard and shall not be subject to any other or different standard imposed by this Agreement or other applicable law.

Section 12.4. Indemnification. To the fullest extent permitted by applicable law, a Covered Person shall be entitled to indemnification from the Company for any loss, damage or claim incurred by such Covered Person by reason of any act or omission performed or omitted by such Covered person in good faith on behalf of the Company and in a manner reasonably believed to be within the scope of authority conferred on such Covered Person by this

Agreement, except that no Covered Person shall be entitled to be indemnified in respect of any loss, damage or claim incurred by such Covered Person by reason of gross negligence or willful misconduct with respect to such acts or omissions; provided, however, that any indemnity under this Section 12.4 shall be provided out of and to the extent of Company assets only, and no Covered Person shall have any personal liability on account thereof.

Section 12.5. Expenses. To the fullest extent permitted by applicable law, expenses (including legal fees) incurred by a Covered Person in defending any claim, demand, action, suit or proceeding shall, from time to time, be advanced by the Company prior to the final disposition of such claim, demand, action, suit or proceeding upon receipt by the Company of an undertaking by or on behalf of the Covered Person to repay such amount if it shall be determined that the Covered Person is not entitled to be indemnified as authorized in Section 12.4 hereof.

Section 12.6. Insurance. The Company may purchase and maintain insurance, to the extent and in such amounts as the Managing Member shall, in its sole discretion, deem reasonable, on behalf of Covered Persons and such other Persons as the Managing Member shall determine, against any liability that may be asserted against or expenses that may be incurred by any such Person in connection with the activities of the Company or such indemnities, regardless of whether the Company would have the power to indemnify such Person against such liability under the provisions of this Agreement. The Managing Member and the Company may enter into indemnity contracts with Covered Persons and adopt written procedures pursuant to which arrangements are made for the advancement of expenses and the funding of obligations under Section 12.5 hereof and containing such other procedures regarding indemnification as are appropriate.

Section 12.7. Outside Businesses. Any Member or Affiliate thereof may engage in or possess an interest in other business ventures of any nature or description, independently or with others, similar or dissimilar to the business of the Company, and the Company and the Members shall have no rights by virtue of this Agreement in and to such independent ventures or the income or profits derived therefrom, and the pursuit of any such venture, even if competitive with the business of the Company, shall not be deemed wrongful or improper. No Member of Affiliate thereof shall be obligated to present any particular investment opportunity to the Company even if such opportunity is of a character that, if presented to the Company, could be taken by the Company, and any Member or Affiliate thereof shall have the right to take for its own account (individually or as a partner, shareholder, fiduciary or otherwise) or to recommend to other any such particular investment opportunity.

(a) Each Member’s Interest shall be held subject to the condition that the Company has the absolute right to redeem such Interest by action of the Managing Member, if, (A) in the judgment of the Managing Member, any Member is determined by any gaming regulatory agency to be unsuitable, or has an application for a license or permit rejected, or has a previously issued license or permit rescinded, suspended, revoked or not renewed, as the case may be, or that such action otherwise should be taken to the extent necessary to avoid any regulatory sanctions or, to prevent the loss of or secure the reinstatement of any gaming license, franchise or entitlement from any governmental agency held by the Company, any Affiliate of the Company or any entity in which such Company or Affiliate is an owner, which gaming license, franchise or entitlement is (i) conditioned upon some or all of the Members possessing prescribed qualifications, or (ii) needed to allow the conduct of any portion of the business of the Company or any such Affiliate or other entity; or (B) any Member fails to enforce the provisions of Section 13.1 (e) of this Agreement against its direct owners or any parties Controlled by, Controlling or under common Control with such Member; provided that no Member whose equity securities are publicly traded pursuant to the Securities Exchange Act of 1934, as amended, and traded on the New York Stock Exchange, the American Stock Exchange or NASDAQ shall be required to enforce the provisions of Section 13.1(e) of this Agreement. For purposes of this Article XIII, “Control” shall mean the ability, whether by the direct or indirect ownership of shares or other equity interests, by contract or otherwise, to elect a majority of the directors of a corporation, to select the managing partner of a partnership or to control a majority of the members of the governing board of such partnership representing any single partner, or otherwise to select, or have the power to remove and select, a majority of those persons exercising governing authority over an entity, and, in the case of a limited partnership shall mean the sole general partner, all of the general partners to the extent each has equal management control and authority, or the managing general partner or managing general partners thereof.

(b) The terms of any redemption pursuant to this Article XIII shall permit the Company to redeem the Interest of a disqualified Member at a redemption price equal to the fair market value of such Interest, excluding any distributions or other remuneration thereon from the date the Company receives notice of a determination of unsuitability or disqualification from the government agency, or in such lesser amount as may be specified by any applicable gaming law, regulation or rule. Any Interest redeemed by the Company pursuant to this Article XIII shall be deemed cancelled.

(c) In connection with the redemption of a Member’s Interest pursuant to this Article XIII, the Managing Member, on behalf of the Company, may issue additional Interests to any Person and admit any such Person as an additional member of the Company (each, an, “Additional Member”). The admission of any such Person as an Additional Member shall be deemed effective immediately prior to the Effective Date (as defined in Section 13.1 (d) hereof) and shall occur upon (i) the execution by such Person of this Agreement or a counterpart to this Agreement and (ii) the reflection of such Person as a Member on Schedule A hereto. Notwithstanding any other provision of this Agreement to the contrary, upon the admission of an Additional Member pursuant to this Section 13.1 (c), the Company shall not be dissolved and its business shall be continued by the remaining Members.

(d) From and after the redemption date or such earlier date as mandated by any applicable gaming law, regulation or rule (the “Effective Date”), a Member whose Interest has been selected for redemption shall cease to be a member of the Company and

any and all rights of whatever nature which were held by such Member (including any rights to vote or participate in any distributions of the Company) shall cease and terminate and such Member shall thereafter be entitled only to receive that amount payable upon redemption.

(e) Each Member shall require that the articles of incorporation, charters, partnership agreements or other formative documents of each Person owning a direct interest in such Member or that is Controlled by, Controlling, or under common Control with such Member (other than a Member that has been exempted from a suitability determination by any gaming regulatory agency) shall incorporate the provisions of this Article XIII into its formative documents; provided that no Member whose equity securities are publicly traded pursuant to the Securities Exchange Act of 1934, as amended, and traded on the New York Stock Exchange, the American Stock Exchange, or NASDAQ shall be required to incorporate the provisions of this Article XIII into its formative documents.

Section 14.1. Dissolution. The Company shall be dissolved and its affairs shall be would up upon the occurrence of any of the following events:

(i) The expiration of the term of the Company, as provided in Section 2.3 hereof;

(ii) The assignment or transfer by a Member of all or any part of its Interest, the bankruptcy or dissolution of a Member or, except as provided in Article XIII of this Agreement, the occurrence of any other event during the Delaware Act that terminates the continued membership of a Member in the Company;

Section 14.2. Notice of Dissolution. Upon the dissolution of the Company, the Managing Member shall promptly notify the Members of such dissolution.

Section 14.3. Liquidation. Upon dissolution of the Company, the Managing Member, as liquidating trustee, shall immediately commence to wind up the Company’s affairs; provided, however, that a reasonable time shall be allowed for the orderly liquidation of the assets of the Company and the satisfaction of liabilities to creditors so as to enable the Members to minimize the normal losses attendant upon a liquidation. The Members shall continue to share profits and losses during liquidation in the same proportions, as specified in Article VIII hereof, as before liquidation. The proceeds of liquidation shall be distributed, as realized, in the manner provided in Section 18-804 of the Delaware Act, subject to the applicable provisions of Article IX. In the event that the Managing Member is unable to perform in its capacity as liquidating trustee due to its bankruptcy, dissolution, death, adjudicated incompetency or any other termination of the Managing Member as an entity, the liquidating trustee shall be a Person approved by a majority of the Interests of the remaining Members.

Section 14.4. Termination. The Company shall terminate when all of the assets of the Company have been distributed in the manner provided for in this Article XIV, and the Certificate shall have been canceled in the manner required by the Delaware Act.

Section 14.5. Claims of the Members. Members and former Members shall look solely to the Company’s assets for the return of their Capital Contributions, and if the assets of the Company remaining after payment of or due provision for all debts, liabilities and obligations of the Company are sufficient to return such Capital Contributions, the Members and former Members shall have no recourse against the Company or any other Member.

Section 15.1. Notices. All notices provided for in this Agreement shall be in writing, duly signed by the party giving such notice, and shall be delivered, telecopied or mailed by registered or certified mail, as follows.

(i) If given to the Company, in care of the Managing Member at the Company’s mailing address set forth below:

(ii) If given to any Member, at the address set forth on the books and records of the Company.

Section 15.2. Failure to Pursue Remedies. The failure of any party to seek redress for violation of, or to insist upon the strict performance of, any provision of this Agreement shall not prevent a subsequent act, which would have originally constituted a violation from having the effect of an original violation.

Section 15.3. Cumulative Remedies. The rights and remedies provided by this Agreement are cumulative and the use of any one right or remedy by any party shall not preclude or waive its right to use any or all other remedies. Said rights and remedies are given in addition to any other rights the parties may have by law, statute, ordinance or otherwise.

Section 15.4. Binding Effect. This Agreement shall be binding upon and inure to the benefit of all of the parties and, to the extent permitted by this Agreement, their successors, legal representatives and assigns.

Section 15.5. Interpretation. Throughout this Agreement, nouns, pronouns and verbs shall be construed as masculine, feminine, neuter, singular or plural, whichever shall be applicable. All references herein to “Articles,” “Sections” and paragraphs shall refer to corresponding provisions of this Agreement.

Section 15.6. Severability. The invalidity or unenforceability of any particular provision of this Agreement shall not affect the other provisions hereof, and this Agreement shall be construed in all respects as if such invalid or unenforceable provision were omitted.

Section 15.7. Counterparts. This Agreement may be executed in any number of counterparts with the same effect as if all parties hereto had signed the same document. All counterparts shall be construed together and shall constitute one instrument.

Section 15.8. Integration. This Agreement constitutes the entire agreement among the parties hereto pertaining to the subject matter hereof and supersedes all prior agreements and understandings pertaining thereto.

Section 15.9. Governing Law. This Agreement and the rights of the parties hereunder shall be interpreted in accordance with the laws of the State of Delaware, and al rights and remedies shall be governed by such laws without regard to principles of conflict of laws.

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


MEMBERS:

HARRAH’S MARYLAND HEIGHTS OPERATING COMPANY

By:		/s/ Philip G. Satre
		Name: Philip G. Satre
		Title: President

HARRAH’S OPERATING COMPANY, INC.

By:		/s/ Philip G. Satre
		Name: Philip G. Satre
		Title: President

PLAYERS MARYLAND HEIGHTS, INC.

By:		/s/ Anthony M. Sanfilippo
		Name: Anthony M. Sanfilippo
		Title: President

PLAYERS MARYLAND HEIGHTS NEVADA, INC.

By:		/s/ Anthony M. Sanfilippo
		Name: Anthony M. Sanfilippo
		Title: President


Name	Mailing Address	Capital Contribution	Percentage Interest
Harrah’s Maryland Heights Operating Company	One Harrah’s Court Las Vegas, NV 89119	1% undivided interest in the Property	.55%

Harrah’s Operating Company, Inc.	One Harrah’s Court Las Vegas, NV 89119	99% undivided interest in the Property	54.45%

Players Maryland Heights, Inc.	One Harrah’s Court Las Vegas, NV 89119	10% undivided interest in the assets of Harrah’s MH LP	4.5%

Players Maryland Heights Nevada, Inc.	One Harrah’s Court Las Vegas, NV 89119	90% undivided interest in the assets of Harrah’s MH, L.P.	40.50%