STOCK OPTION GRANT AGREEMENT

Exhibit 10.53

STOCK OPTION GRANT AGREEMENT

THIS AGREEMENT, made as of this 27th day of February 2008 between Harrah’s Entertainment, Inc. (the “Company”) and Charles L. Atwood (the “Participant”).

WHEREAS, the Company has adopted and maintains the Harrah’s Entertainment, Inc. Management Equity Incentive Plan (the “Plan”) to promote the interests of the Company and its Affiliates and Stockholders by providing the Company’s key employees and others with an appropriate incentive to encourage them to continue in the employ of and provide services for the Company or its Affiliates and to improve the growth and profitability of the Company;

WHEREAS, the Plan provides for the Grant to Participants of Options to purchase Shares.

NOW, THEREFORE, in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto hereby agree as follows:

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such Appraiser within 30 days of the determination of the Deemed MoM. The Participant shall bear 100% of the fees and expenses of the Appraiser, unless the Appraiser’s determination of the Fair Market Value of a Share is at least 5% greater than the Board’s determination of the Fair Market Value of a Share, in which case the Company shall bear 100% of the fees and expenses of the Appraiser.

(a) fifty percent (50%) of the Shares subject to the Time-Based Option shall vest and become fully exercisable on the date that is eighteen (18) months after the Closing Date; and

(b) the remaining fifty percent (50%) of the Shares subject to the Time-Based Option shall vest and become fully exercisable on the date that is thirty-six (36) months after the Closing Date.

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Employment terminates due to the Participant’s Retirement on or after the third anniversary of the Effective Date:

(a) Any unexercised portion of the Time-Based Option shall remain exercisable until the earlier of the date (i) on which the Participant receives a cash payment in exchange for the surrender of the Time-Based Option pursuant to a Change in Control, (ii) that is six (6) months after the Participant’s Retirement or (iii) that is the 10th anniversary of the Grant Date.

(b) Any unvested portion of the 2X Performance Option and 3X Performance Option shall remain outstanding and eligible to vest and become exercisable in accordance with Section 4.3.2 of the Plan and all subsections thereunder, provided that, any requirement in such Section or subsections that the Participant be continuously employed by the Company up to and through the effective date of the applicable vesting event shall be disregarded in determining whether the 2X Performance Option and 3X Performance Option will vest under this Section 9(b), and further provided that any such unvested portion of the 2X Performance Option and 3X Performance Option shall remain outstanding and eligible to vest and become exercisable under this Section 9(b) until the date that is the later of (i) the fifth anniversary of the Grant Date or (ii) the second anniversary of the date of the Participant’s Retirement (the period beginning on the date of the Participant’s Retirement and ending on the later of such dates, the “Extended Vesting Period”). In the event that either or both of the 2X Performance Option or 3X Performance Option, as the case may be, does not vest in accordance with this Section 9(b) prior to the last day of the Extended Vesting Period, the unvested 2X Performance Option or 3X Performance Option will terminate as of the last day of the Extended Vesting Period.

(c) Any portion of the 2X Performance Option and the 3X Performance Option that is vested and exercisable upon the Participant’s Retirement or that vests and becomes exercisable during the Extended Vesting Period after the Participant’s Retirement in accordance with Section 9(b) above, shall remain exercisable until the earliest of the date (i) on which the Participant receives a cash payment in exchange for the surrender of the 2X Performance Option or the 3X Performance Option, as applicable, pursuant to a Change in Control, (ii) that is six (6) months after the date on which the 2X Performance Option or the 3X Performance Option, as the case may be, becomes exercisable in accordance with the terms of Section 9(b) or (iii) that is the 10th anniversary of the Grant Date.

(d) Participant may use cashless exercise to satisfy the minimum amount of withholding taxes due on exercise, but only to the extent such right or the utilization of such right would not cause the Option to be subject to Section 409A of the Code.

For the avoidance of doubt, in the event that the Participant’s Employment terminates due to the Participant’s Retirement on or after the third anniversary of the Effective Date, the provisions of this Section 9 shall exclusively govern the post-termination exercise periods applicable to the Time-Based Option, 2X Performance Option and 3X Performance

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Option and shall supersede the provisions of clause (c) of the first sentence of Section 4.4 of the Plan. The treatment of the Option upon a termination of employment due to the Participant’s Retirement prior to the third anniversary of the Effective Date or for any other reason at any other time (other than Participant’s Retirement on or after the third anniversary of the Effective Date) shall be governed exclusively by the Plan.

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IN WITNESS WHEREOF, the Company has caused this Agreement to be duly executed by its duly authorized officer and said Participant has hereunto signed this Agreement on his own behalf, thereby representing that he has carefully read and understands this Agreement, the Plan and the Management Investor Rights Agreement as of the day and year first written above.

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