EXHIBIT 4(13) CONFIRMATION FOR U.S. DOLLAR RATE SWAP TRANSACTION UNDER EXISTING IRCEA TO: HARRAH'S OPERATING COMPANY, INC. ATTN: KATIE WEIEN TEL: 901-762-8838 FAX: 901-762-8998 FROM: NationsBank, N.A. 233 S. Wacker Drive Chicago, Illinois 60606 JEFF MCNEILL/JIM O'DONNELL Date: 21DEC95 Our Reference #: 441010 The purpose of this letter agreement is to confirm the terms and conditions of the Swap Transaction entered into between us on the Trade Date specified below (the "Swap Transaction"). This letter agreement constitutes a "Confirmation" as referred to in the Interest Rate and Currency Exchange Agreement specified below. The definitions and provisions contained in the 1991 ISDA Definitions (as published by the International Swaps and Derivatives Association, Inc.) are incorporated into this Confirmation. In the event of any inconsistency between those definitions and provisions and this Confirmation, this Confirmation will govern. 1. This Confirmation supplements, forms part of, and is subject to, the Interest Rate and Currency Exchange Agreement dated as of 18MAY93, as amended and supplemented from time to time (the "Agreement"), between you and us. All provisions contained in the Agreement shall govern this Confirmation except as expressly modified below. 2. The terms of the Swap Transaction to which this Confirmation relates are as follows: Currency/Notional Amount: USD 50,000,000.00 Trade Date: 20DEC95 Effective Date: 22DEC95 Termination Date: 22MAR00, subject to adjustment in accordance with the Modified Following Business Day Convention. Fixed Amounts: Payer of Fixed: HARRAH'S OPERATING COMPANY, INC. Fixed Payer Payment Dates: EACH MARCH 22, JUNE 22, SEPTEMBER 22, AND DECEMBER 22, COMMENCING MARCH 22, 1996 AND ENDING MARCH 22, 2000, SUBJECT TO ADJUSTMENT IN ACCORDANCE WITH THE MODIFIED FOLLOWING BUSINESS DAY CONVENTION. Fixed Rate Payer Business Day Convention: MODIFIED FOLLOWING BUSINESS DAY Fixed Rate Payer Business Days: NEW YORK, LONDON Fixed Rate: 6.951% Fixed Rate Payer Day Count Fraction: ACTUAL/360 Floating Amounts: Payer of Floating: NATIONSBANK, N.A. Floating Payer Reset Dates: First Day of each Calculation Period Floating Payer Payment Dates: EACH MARCH 22, JUNE 22, SEPTEMBER 22, AND DECEMBER 22, COMMENCING MARCH 22, 1996 AND ENDING MARCH 22, 2000, SUBJECT TO ADJUSTMENT IN ACCORDANCE WITH THE MODIFIED FOLLOWING BUSINESS DAY CONVENTION. Floating Rate Payer Business Days: NEW YORK, LONDON Floating Rate Payer Business Day Convention: MODIFIED FOLLOWING BUSINESS DAY Floating Rate Option: USD-LIBOR-BBA Designated Maturity: 3 Months Spread: NONE Floating Rate for Initial Calculation Period: 5.66797% Floating Rate Payer Day Count Fraction: ACTUAL/360 Averaging: INAPPLICABLE Rounding Factor: One-Hundred-Thousandth of One Percent Calculation Agent: NationsBank, N.A. Assignment: This Swap Transaction may be assigned only with prior written consent. Legal and Out-of-Pocket Expenses: For each party's own account. Governing Law: The Laws of the State of New York. Recording of Conversations: Each party to this Agreement acknowledges and agrees to the tape or electronic recording of conversations between the parties to this Agreement whether by one or other or both of the parties, and that any such recordings may be submitted in evidence in any action or proceeding relating to the Agreement or any Transaction. Payments to NationsBank: Payment to HARRAH'S OPERATING NATIONSBANK N.A. (CAROLINAS), COMPANY, INC.: CHARLOTTE ABA 053000196 ACCT: 10852016511 ATTN: DERIVATIVE OPERATIONS Please confirm that the foregoing correctly sets forth the terms and conditions of our agreement by responding within three (3) Business Days by either (i) returning via telecopier an executed copy of this Confirmation to the attention of Marge Szymczak, Fax No. (312) 234-3160; Telephone No. (312) 234-2934, or (ii) sending a telex to Marge Szymczak (Telex No. 4330469, answerback: CRT CGO) substantially to the following effect: "We acknowledge receipt of your fax dated 21DEC95 with respect to a Swap Transaction between HARRAH'S OPERATING COMPANY, INC. and NationsBank, N.A. with a Notional Amount of USD 50,000,000.00 and a Termination Date of 22MAR00 and confirm that such fax correctly sets forth the term of our agreement relating to the Swap Transaction described therein. Very truly yours, , by (specify name and title of authorized officer)." Failure to respond within such period shall not affect the validity or enforceability of this Swap Transaction, and shall be deemed to be an affirmation of the terms and conditions contained herein, absent manifest error. NationsBank, N.A. is pleased to have concluded this transaction with you. Yours Sincerely, NationsBank, N.A. By: /s/John Stocchetti ---------------------------------- John Stocchetti, Senior Vice President Authorized Signatory Confirmed as of the date first written above: HARRAH'S OPERATING COMPANY, INC. By: /s/William S. McCalmont ---------------------------------- Authorized Signatory