Document:

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                                                                    EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT is made and entered into as of, June 25, 2001,
(Employment Agreement") by and between Barden Colorado Gaming, LLC, a Colorado
limited liability company d/b/a Fitzgeralds Black Hawk ("the Company") and Joe
C. Collins ("Executive").

                                    RECITALS

A.       The Company and the Executive desire to enter into an Employment
         Agreement, which supersedes any and all other agreements, either oral
         or in writing with respect to the employment of Executive by the
         Company.

B.       The Company and the Executive desire that the Employment Agreement only
         become effective upon the successful completion of the acquisition of
         Fitzgeralds Black Hawk by the Company ("Acquisition Date").

1.       Terms

         The Company hereby agrees to employ Executive, and Executive hereby
         agrees to serve the Company, on the terms and conditions of the
         Employment Agreement, for a two year period ("Period of Employment")
         commencing on the Acquisition Date (such Period of Employment being
         subject to earlier termination provided herein). Upon the expiration of
         the Period of Employment, Executive's employment with the Company shall
         cease, unless mutually extended by both parties.

2.       Duties and Services

         During the period(s) of employment, Executive agrees to serve the
         Company as its Vice President and General Manager and in such other
         offices and positions of the Company within his areas of expertise and
         to perform such other reasonable and appropriate duties consistent with
         such positions (s) as may be requested of him by the President and
         Chief Executive Officer and/or his designee of the Company, In
         accordance with the terms herein set forth. Excluding periods of
         personal time off to which Executive is entitled, Executive shall
         devote his full time energy and skills to the business and affairs of
         the Company and to the promotion of its interests. The Executive shall
         perform all such duties to the best of his ability and in a diligent
         manner. Executive may be reasonably required to travel outside Black
         Hawk, Colorado from time to time. Executive acknowledges and agrees
         that this Employment is subject to the licensing and regulatory control
         of the Colorado Division of Gaming and various other state, county and
         city gaming regulatory enforcement agencies (collectively the "Gaming
         Authorities") which may require that Executive be Investigated for
         personal suitability and licensing. Executive shall fully cooperate
         with the Gaming Authorities in order that he may obtain all required
         licenses, permits, approvals or findings of suitability required in
         connection with his employment hereunder. Company agrees to pay all
         reasonable costs associated with licensing of Executive.

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3.       Compensation

         (a)      Salary. As compensation for his services hereunder, the
                  Company shall pay Executive during the Period of Employment,
                  annual salary of One Hundred Sixty Thousand Dollars ($160,000)
                  less all applicable federal, state and local taxes, social
                  security and other governmental mandated deductions, which
                  shall be payable in installments in accordance with the
                  Company's compensation schedule as in existence from time to
                  time. On the anniversary of the Acquisition Date, the
                  Executive shall receive an annual performance review at which
                  time he shall be considered for a merit increase in his annual
                  salary.

         (b)      Bonus. On the one (1) year anniversary of the Acquisition
                  Date, Executive shall be eligible to receive a retention bonus
                  of Twelve Thousand Dollars ($12,000), provided the Executive
                  is then employed by the Company and in good standing. In
                  addition, Executive shall be entitled to such bonuses and
                  other benefits as the Company may periodically award in its
                  sole discretion.

         (c)      Fringe Benefits. For such period of time as Executive is
                  employed by the Company during the Period of Employment,
                  Executive shall receive coverage under the Company's medical
                  insurance program (as such program is in effect from time to
                  time) on terms no less favorable than those generally made
                  available to the Company's executives, shall receive a five
                  hundred dollar ($500) per month car allowance, and shall
                  receive a five thousand dollar ($5,000) per annum allowance
                  for unreimbursed medical expenses submitted in accordance with
                  expense procedures. Nothing contained herein shall preclude
                  the Executive from participating in any present or future
                  employee benefit plans of the Company, including without
                  limitation any 401 (k) plan, profit-sharing plan, savings
                  plan, deferred compensation plan and health and accident plan
                  or arrangement, if he meets the eligibility requirements
                  therefor.

         (d)      Vacation. Executive shall be entitled to maintain his current
                  vacation schedule to be taken at time or times mutually
                  acceptable to Executive and the Company, in accordance with
                  the policy in effect at the time.

         (e)      Business Expenses. All reasonable travel and other expenses
                  incident to the rendering of services by Executive hereunder
                  shall be paid by the Company. If any such expenses are paid in
                  the first instance by Executive, the Company shall reimburse
                  him therefor on presentation of appropriate documentation
                  required by the Internal Revenue Code and Regulations or
                  otherwise required under the Company policy in connection with
                  such expenses.

4.       Early Termination

         (a)      Notwithstanding the provisions of Section 1 hereof, the
                  Executive may be terminated by the Company for Cause (as
                  defined herein), in which event the period of employment
                  hereunder shall cease and terminate and the Company

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                  shall have no further obligation or duties under this
                  Employment Agreement, except for obligations accrued under
                  Section 3 as of the date of termination.
         (b)      Prior to termination for a performance deficiency as described
                  in Sections 4(a)(v),(vi), (vii) and (viii). Executive shall be
                  given notice of deficiency and thirty (30) days within which
                  to cure the same.

For the purposes of this Employment Agreement ("Cause") shall be deemed to exist
only upon (i) conviction of a felony (ii) embezzlement or misappropriation of
funds or property of the Company or any affiliates; (iii) failure to obtain and
maintain during the period(s) of employment all licenses, permits, approvals or
findings or suitability with Gaming and other Regulatory Authorities approval or
finding of suitability; (iv) conviction of any criminal or other improper act
which could result in the suspension or revocation of any such license, permit
approval or finding of suitablity; (v) Executive's repeated failure to comply
with any policies or procedures of the Company whether or not now in effect;
(vi) upon the material breach by Executive of this Employment Agreement; (vii)
excessive absenteeism or tardiness on the part of the Executive or (viii) any
other conduct which has or may reasonably be expected to have a material adverse
effect on the Company or the business of the company.

         (c)      In addition, the Period of Employment hereunder shall cease
                  and terminate upon the earliest to occur the following events:
                  (i) death of executive, or (ii) the inability of Executive by
                  reason of physical or mental disability to continue the proper
                  performance of his duties hereunder for a period of sixty (60)
                  consecutive days (subject to the requirements of the Americans
                  with Disabilities Act and Family Medical Leave Act). Upon the
                  occurence of these events the Company shall continue to pay to
                  Executive or his estate, the entire compensation otherwise
                  payable to him under Section 3(a) hereof for the lesser of
                  sixty (60) days or the remaining Period of Employment and
                  shall have no further obligation or duties under this
                  Employment Agreement.

         (d)      In the event that the Executive is discharged by the Company
                  other than Cause pursuant to Section 4(a) hereof or is
                  discharged by reason of physical or mental disability pursuant
                  to Section 4(b) hereof, Executive shall have no further
                  obligations or duties under this Employment Agreement;
                  provided, however, that Executive shall continue to be bound
                  by the provisions of Section 5 hereof. However, if Executive
                  should die prior the end of such period, the provisions of
                  Section 4(a) hereof shall be applicable as though the
                  Executive's employment hereunder had not been terminated.

         (e)      This Employment Agreement may be terminated by mutual
                  agreement of the Company and the Executive. The terms and
                  conditions of any such termination agreement shall be set
                  forth in writing and signed by both parties.

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5.       Confidentiality, Intellectual Property and Non-Competition

         (a)      The Company and Executive acknowledge that the services to be
                  performed by Executive under this Employment Agreement are
                  unique and extraordinary and, as a result of such employment,
                  Executive will be in possession of confidential information,
                  proprietary information and trade secrets (collectively,
                  "Confidential Information") relating to the business practices
                  of the Company and its affiliates, and that these constitute
                  "Trade Secrets" under the Colorado Uniform Trade Secrets Act.

Trade Secrets Act. The Confidential Information referenced herein includes but
is not limited to the following which are or were developed for the Company by
Executive or any other Company employee or agent; names and addresses of guests;
computer programs; software and disks; business plans; analytical techniques and
methodology; measurement criteria; guest developement techniques; market
research; training manuals and video tapes. Executive agrees that he will not
disclose or use the Confidential Information, directly or indirectly during or
after his employment, other than in the performance of his duties for the
Company.

         (b)      The Company and Executive agree that violation of Executive's
                  obligations under Section 5(a) of this Employment Agreement
                  shall constitute "misappropriation" of the Company's trade
                  secrets under the Colorado Trade Secrets Act, and the
                  Company's remedies for any such violation shall be those set
                  out in the said Act.

         (c)      Upon termination of his employment with Company for any
                  reason, Executive shall (i) immediately return to the Company
                  all the materials delivered to Executive during employment of
                  paid for by the Company, including but not limited to,
                  originals, duplicates or copies of keys, tools, telephones,
                  pagers, manuals, plans, memoranda, reports, systems,
                  procedures, forms, advertising materials, offices supplies,
                  presentations, flow charts, narratives, organization charts
                  and other employment agreements, (ii) give to the Company on
                  computer disk and then destroy any trade secrets in any
                  physical form, including originals, duplicates, or copies to
                  the Company and (iii) give to the Company on computer disk and
                  then destroy any trade secrets or any other Company
                  information stored in any computer or electronic device owned
                  or used by Executive.

         (d)      All programs, ideas, strategies, approaches, practices or
                  inventions created, developed, obtained or conceived of by
                  executive during the term hereof by reason of his employment
                  by the Company, shall be owned and belong exclusively to the
                  Company, provided that they are related in any manner to
                  business or that of any of it's affiliates. Executive shall
                  (i) promptly disclose all such programs ideas, strategies,
                  approaches, practices, inventions or business opportunities to
                  the Company and (ii) execute and deliver to the Company,
                  without additional compensation, such instruments as the
                  Company may require from time to time to evidence its
                  ownership of any such terms.

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         (e)      Executive agrees that during the period of employment he will
                  not become a stockholder, director, officer, employee or agent
                  of or consultant to any corporation, or member of or
                  consultant to any partnership or other entity, or engage in
                  any business as a sole proprietor or act as a consultant to
                  any such entity, or otherwise engage, directly or indirectly,
                  in any enterprise, in each case which competes with or has a
                  vendor relationship with any business or activity engaged in,
                  or known by Executive to be contemplated to be engaged in, by
                  the Company or any of it's affiliates, provided, however,
                  that competition shall not include the ownership (solely as an
                  investor and without participation in or contact with the
                  management of the business) of less than one percent of the
                  outstanding share of stock of any corporation engaged in any
                  such business, which shares are regularly traded on a national
                  securities exchange or in an over-the-counter market. The
                  Company, in its sole discretion, may waive one or more of the
                  restrictions set forth in this subsection; however, any such
                  waiver must be in writing executed by an authorized Company
                  representative, and shall be effective only to the extent it
                  is set forth in writing.

         (f)      Executive agrees that for a one (1) year term following his
                  termination of employment with the Company, in Gilpin County,
                  Colorado, he will not become a stockholder, director, officer,
                  employee or agent of or consultant to any corporation, or
                  member of or consultant to any partnership or other entity or
                  engage in any business as a sole proprietor in or act as a
                  consultant to any such entity in or otherwise engage, directly
                  or indirectly, in any enterprise in each case which competes
                  with or has a vendor relationship with any business or
                  activity engaged in, or known by Executive to be contemplated
                  to be engaged in, by the Company or any of its affiliates,
                  provided, however, that competition shall not include the
                  ownership (solely as an investor and without any other
                  participation in or contact with the management of the
                  business) of less than one percent of the outstanding shares
                  of stock of any corporation engaged in any such business,
                  which shares are regularly traded on a national securities
                  exchange or in an over-the-counter market. The Company, in its
                  sole discretion, may waive one or more of the restrictions
                  set forth in this subsection; however, any such waiver must be
                  in writing executed by an authorized Company representative,
                  and shall be effective only to the extent it is set forth in
                  writing.

         (g)      Executive further agrees that neither Executive nor any person
                  enterprise controlled by Executive will solicit for employment
                  any person employed by the Company or any of its sister
                  properties during and within one year following the
                  termination of Executive's employment.

         (h)      Unless required by law, Executive shall not disclose the
                  existence of this Employment Agreement or the terms and
                  conditions hereof to any other person, except to Executive's
                  attorneys, accountants and financial/banking institutions who
                  have a need to know.
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         (i)      The covenants in this Section 5 on the part of the Executive
                  shall be construed as an agreement independent of any other
                  provision in its Employment Agreement; and the existence of
                  any claim or cause of action of Executive against Company,
                  whether predicted on this Employment Agreement or otherwise,
                  shall not constitute a defense to the enforcement by Executive
                  of these covenants. It is agreed by the parties hereto that if
                  any portion of the covenants against solicitation are held to
                  be unreasonable, arbitrary or against public policy, the
                  covenants herein shall be considered divisible both as to time
                  and scope; and each month of the specified period shall be
                  deemed a separate period of time, so that the lesser period of
                  time shall remain effective so long as the same is not
                  unreasonable, arbitrary, or against public policy. The parties
                  hereto agree that, in the event any court determines the
                  specified time period to be reasonable, arbitrary or against
                  public policy, a lesser time period which is determined to be
                  unreasonable, not arbitrary and not against public policy may
                  be enforced against Executive. It is further agreed by the
                  parties hereto that, in the event of a breach or violation or
                  threatened breach or violation by Executive of the provisions
                  of this section, the Company shall be entitled to obtain
                  injunctive relief from a court of competent jurisdiction
                  restraining the activities set forth herein in breach or
                  violation of this section (without posting a bond therefor and
                  upon 24 hours notice to Executive), whether directly or
                  indirectly. Nothing herein shall be construed as prohibiting
                  Company from pursuing any other remedies available to it by
                  law or by this Employment Agreement for breach, violation or
                  threatened breach or violation of the provisions of this
                  section, including, by way of illustration and not by way of
                  limitation, the recovery of damages from Executive or any
                  other person, firm, corporation or entity. The provisions of
                  this section shall survive any termination of this Employment
                  Agreement for the purpose of providing Company with the
                  protection of Covenants of Executive provided herein.
                  Executive acknowledges that his capabilities and education
                  are such that enforcement of the restrictions contained herein
                  shall not prevent him from earning a livelihood.

6.       Representations and Warranties

         (a)      Executive represents and warrants to Company that his
                  execution, delivery and performance of this Employment
                  Agreement will not result in or constitute a breach of or
                  conflict with any term, covenant condition, or provision of
                  any commitment, contract, or other agreement or instrument,
                  including, without limitation, any other employment agreement,
                  to which Executive is or has been a party.

         (b)      Executive shall indemnify, defend and hold harmless Company
                  for, from, and against any and all losses, claims, suits,
                  damages, expenses, or liabilities, including court costs and
                  counsel fees, which Company has incurred or to which Company
                  may become subject, insofar as such losses, claims, suits,
                  damages, expenses, liabilities, costs, or fees, arise out of
                  or are based upon any failure of any representation or
                  warranty of Executive in section 6(a) hereof to be true and
                  correct when made.

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7.       Assignment and Change of Control

         (a)      Executive shall not assign his rights or delegate the
                  performance of these obligations hereunder without the prior
                  written consent of the Company. Subject to the provisions of
                  the preceding sentence, all the terms of this Employment
                  Agreement shall be binding upon and shall inure to the benefit
                  of the parties and their legal representatives, heirs,
                  successors and assigns.

         (b)      Upon a "Change of Control" the Company may assign this
                  Employment Agreement. For this purpose, a "Change of Control"
                  shall mean a sale of substantially all of the assets of the
                  Company. Upon the occurrence of a Change of Control, Company
                  Will pay Employee all payments Company would have been
                  obligated to make pursuant to Section 3 hereof, based upon a
                  termination date that is six (6) months after the date on
                  which the period of employment would have expired but for such
                  termination by reason of a Change of Control.

8.       Arbitration

         Any claim or controversy arising out of or relating to this Agreement
         shall be settled by arbitration in Denver County Colorado, in
         accordance with the Commercial Arbitration Rules of the American
         Arbitration Association, and judgement on the award rendered by the
         arbitrators may be entered in any court having jurisdiction. There
         shall be three (3) arbitrators, one to be chosen directly by each party
         at will, and the third arbitrator to be selected by the two (2)
         arbitrators so chosen. Each party shall pay the fees of the arbitrator
         it selects and of its own attorneys, the expenses of its witnesses and
         all other expenses connected with presenting its case. Other costs of
         the arbitration, including the cost of any record or transcripts of the
         arbitration, administrative fees, the fee if the third arbitrator, and
         all other fees and costs, shall be borne equally by the parties.
         Notwithstanding this arbitration provision, if the Company deems it
         necessary to seek extraordinary or equitable remedies, it may seek the
         same through the appropriate court.

9.       Notice

         Any notice or other communication required or permitted to be given
         hereunder shall be made in writing and shall be delivered in person or
         mailed by prepaid registered or certified mail, return receipt
         requested, addressed to the parties as follows:

         If to the Company:

         Barden Colorado Gaming, LLC
         c/o Majestic Star Casino
         1 Buffington Harbor Drive
         Gary, Indiana 46406-3000

         Attention: President and Chief Executive Officer

<PAGE>

         If to the Executive:

         Joe C. Collins
         5956 Dunraven Court
         Golden, Colorado 80403

         or to such other addresses as the party shall have furnished in writing
         in accordance with this Section. Such notices or communication shall be
         effective upon delivery in person, and upon actual receipt or three (3)
         days after mailing, whichever is earlier, if delivered by mail.

10.      Breach of Agreement

         Should the Company be in breach of this Employment Agreement and/or it
         be determined that Executive has not been terminated for Cause (the
         position first taken by Company for terminating the contract), then
         this entire Employment Agreement shall be null and void and of no
         further force or effect. Further, Executive shall be entitled to all
         benefits and compensation under the Employment Agreement as well as
         attorney fees and costs incurred in vindicating himself or establishing
         a breach by the Company. Conversely, if the Executive is determined to
         be in breach of this Employment Agreement, the Company shall be
         entitled to costs and attorney fees in validating that breach.

11.      Parties In Interest

         The benefits and obligations of this Employment Agreement shall be
         binding upon and insure to the benefit of Executive, and it shall be
         binding upon and insure to the benefit of the Company, its subsidiaries
         and related entities, as well as any corporation succeeding to all or
         substantially all of the business assets of the Company by merger,
         consolidation, purchase of assets or otherwise.

12.      Entire Agreement

         This Employment Agreement supersedes any and all other agreements,
         either oral or in writing, between the parties hereto with respect to
         the employment of Executive by the Company and contains all of the
         covenants and agreements between the parties with respect to such
         employment in any manner whatsoever. Any modification of this
         Employment Agreement will be effective only if it is in writing signed
         by the party to be charged.

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13.      Governing Law and Venue

         This Agreement is to be governed by and construed in accordance with
         the laws of the State of Colorado applicable to contracts made and to
         be performed wholly within such State, and without regard to the
         conflicts of laws principles thereof.

14.      Acknowledgement

         Executive acknowledges that he has been given a reasonable period of
         time to study this Agreement before signing it. Executive certifies
         that he has fully read, has received an explanation of, and completely
         understands the terms, nature, and effect of this Agreement and to
         seek the advice of legal counsel. Executive further acknowledges that
         he is executing this Agreement freely, knowingly, and voluntarily and
         that Executive's execution of this Agreement is not the result of any
         fraud, duress, mistake, or undue influence whatsoever. In executing
         this Agreement, Executive does not rely on any inducements, promises,
         or representations by Company other than the terms and conditions of
         this Agreement.

15.      Effective Date

         This Employment Agreement shall become effective on the Acquisition
         Date.

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         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
         duly executed as of the date first set forth hereinabove.

         COMPANY:                                  EXECUTIVE:
         Barden Colorado Gaming, LLC
         d/b/a/Fitzgeralds Black Hawk

         By: /s/ Michael E. Kelly                  By: /s/ Joe C. Collins
            ---------------------------               --------------------------
         Michael E. Kelly                          Joe C. Collins
         Chief Operating Officer<PAGE>
                                                                    EXHIBIT 10.8

                              MANAGEMENT AGREEMENT

         THIS MANAGEMENT AGREEMENT ("AGREEMENT") is executed as of this 7th day
of October, 2003, by and between Barden Development, Inc., an Indiana
corporation (the "MANAGER"), and The Majestic Star Casino, LLC, an Indiana
limited liability company (the "COMPANY").

                              W I T N E S S E T H:

         WHEREAS, the Manager and the Company entered into a Management
Agreement on June 18, 1999 (the "PRIOR AGREEMENT"), which provided for the
Manager to be compensated for managing the affairs of the Company;

         WHEREAS, the parties thereto now desire to terminate the Prior
Agreement in its entirety and enter into this Agreement;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants and agreements herein set forth, the parties do hereby agree as
follows:

         1.       Terms used but not otherwise defined herein shall have the
meanings set forth in that certain Indenture, dated as of the date hereof, by
and among the Company, The Majestic Star Casino Capital Corp. ("MSCC"), the
subsidiary guarantors named therein and The Bank of New York, as trustee
thereunder (the "INDENTURE").

         2.       During the term of this Agreement, Manager shall, subject to
and in accordance with the terms of the Third Amended and Restated Operating
Agreement dated as of March 29, 1996, as amended (the "OPERATING AGREEMENT"),
serve as the manager of the Company.

         3.       Effective upon the closing of the transactions contemplated by
(i) that certain Purchase Agreement, dated as of September 26, 2003, by and
among the Company, MSCC, Jefferies & Company, Inc., Wells Fargo Securities, LLC
and certain affiliates of the Company (the "NOTE OFFERING"), and (ii) that
certain Loan and Security Agreement, dated as of October 7, 2003, by and among
the lenders signatory thereto (the "Lenders"), Wells Fargo Foothill, Inc., as
the arranger and administrative agent for the Lenders (the "Agent"), the
Company, and certain subsidiaries of the Company (the "Loan Agreement"),
pursuant to which an $80.0 million credit facility will be established (the
"Credit Facility"), the Prior Agreement shall be terminated and of no further
force and effect.

         4.       Subject to Section 6 hereof, effective October 1, 2003, the
Company shall pay to the Manager, on a quarterly basis, within 15 days after the
end of each quarter, a management services distribution equal to (i) one percent
(1%) of the Company's Net Revenues for such quarter; plus (ii) five percent
(5.0%) of the Company's Consolidated Cash Flow for such quarter. In addition,
prior to October 15, 2003, the Company shall pay to the Manager, a management
services distribution for the quarter ended September 30, 2003 based on the
foregoing formula.

<PAGE>

         5.       SUBORDINATION.

                  (a)      Agreement to Subordinate. Except as provided in
paragraph (c) of this Section 5, the Company and BDI agree, that the payment of
Management Distributions under this Agreement are subordinated and junior in
right of the payment in full (i) of principal, interest, premium and Liquidated
Damages, if any, on the Notes, and (ii) of principal, interest, and premium, if
any, under the Credit Facility, and that the subordination is for the benefit of
and shall be enforceable by, the Holders of Notes and Lenders, and that each
Holder of Notes shall be deemed to have acquired such Notes, and that each
Lender shall be deemed to have made the loans described under the Loan Agreement
in reliance upon the provisions contained in this Agreement.

                  (b)      Liquidation; Dissolution; Bankruptcy. Upon any
payment or distribution of assets of the Company of any kind or character,
whether in cash, property or securities, to creditors of the Company in a
liquidation or dissolution of the Company or its properties, in a bankruptcy,
reorganization, insolvency, receivership or similar proceeding relating to the
Company or its properties, in an assignment for the benefit of creditors or in
any marshalling of assets and liabilities of the Company:

                           (i)      Holders of Notes and Lenders shall receive
payment in full in cash of any Obligations (including interest after the
commencement of any such proceeding at the rate specified in the Indenture,
whether or not such interest is an allowable claim) before BDI shall be entitled
to receive any payment or distribution of any kind or character with respect to
any Management Distributions under this Agreement; and

                           (ii)     until the Obligations are paid in full in
cash, any payment or distribution of assets of the Company of any kind or
character, whether in cash, property or securities, to which BDI would be
entitled under this Agreement but for this Section 5 shall be made to Holders of
Notes and the Lenders, as their interests may appear.

                  (c)      Payment Default. The Company shall not make any
payment or distribution of any kind or character to BDI with respect to any
Management Distributions due under this Agreement until all Obligations with
respect to the Notes or the Credit Facility have been paid in full; provided,
however, that if no Default in the payment when due, whether at maturity, upon
redemption, acceleration, declaration or otherwise, of any Obligations, with
respect to the Notes has occurred and is continuing on the date of such payment
or distribution with respect to any Management Distributions due under this
Agreement, the Company may make any such payment or distribution with respect to
any Management Distributions due under this Agreement; provided, further, that
the Company may resume payments and distributions with respect to any Management
Distributions due under this Agreement upon the date upon which any such Default
has been cured or waived.

                  (d)      When Distribution Must Be Paid Over. In the event
that BDI receives any payment or distribution of any kind or character, whether
in cash, properties or securities, in respect of any Management Distributions
under this Agreement at a time when such payment or distribution is prohibited
by this Section 5 and BDI has actual knowledge that the payment is prohibited,
such payment shall be held by BDI, in trust for the benefit of, and shall be
paid

                                       2
<PAGE>

forthwith over and delivered, upon written request, (on a pro rata basis based
on the aggregate principal amount of Notes held by the Holders), to the Holders
of the Notes with respect to Notes and to the Lenders with respect to the Loan
Agreement remaining unpaid to the extent necessary to pay the Obligations in
full, after giving effect to any concurrent payment or distribution to or for
the Holders of the Notes and the Lenders.

                  If BDI is required by any court or otherwise to deliver
payments it received by the Company to a Holder of the Notes or the Lenders, any
amount so paid to the extent theretofore discharged, shall be reinstated in full
force and effect.

                  To the extent any payment of the Obligations on the Notes
(whether by or on behalf of the Company, as proceeds of security or enforcement
of any right of setoff or otherwise) is declared to be fraudulent or
preferential, set aside or required to be paid to any receiver, trustee in
bankruptcy, liquidating trustee, agent or other similar Person under any
bankruptcy, insolvency, receivership, fraudulent conveyance or similar law,
then, if such payment is recovered by, or paid over to, such receiver, trustee
in bankruptcy, liquidating trustee, agent or other similar Person, the
Obligations on the Notes or part thereof originally intended to be satisfied
shall be deemed to be reinstated and outstanding as if such payment had not
occurred.

                  (e)      Notice By the Company. The Company shall promptly
notify BDI in writing of any facts known to the Company that would cause a
payment of any Management Distributions under this Agreement to violate this
Section 5, but failure to give such notice shall not affect the subordination of
the Management Distributions to the Notes and the Lenders as provided in this
Section 5.

                  (f)      Subrogation. Subject to the payment in full of all
Obligations on the Notes and the Credit Facility, BDI shall be subrogated
(equally and ratably with all other Indebtedness pari passu with the Company's
obligation to pay Management Distributions) to the rights of the Lenders and the
Holders of Notes to receive payments or distributions of cash, properties or
securities of the Company applicable to the Notes until the Notes have been paid
in full. A distribution made under this Section 5 to the Holders of the Notes or
the Lenders that otherwise would have been made to BDI is not, as between the
Company and BDI, a payment by the Company to or on account of the Notes or the
Credit Facility.

                  (g)      Relative Rights. This Section 5 defines the relative
rights of BDI and the Holders of the Notes and the Lenders. The relative rights
of the Lenders and the Holders of Notes are set forth in that certain
Intercreditor Agreement, dated the date hereof, among the Company and certain of
its affiliates, the Agent, and The Bank of New York. Nothing in this Agreement
shall:

                           (i)      impair, as between the Company and BDI, the
obligation of the Company, which is absolute and unconditional, to pay
Management Distributions in accordance with the terms of this Agreement;

                           (ii)     affect the relative rights of BDI and
creditors of the Company other than their rights in relation to Holders of the
Notes and the Lenders; or

                                       3
<PAGE>

                           (iii)    prevent BDI from exercising its available
remedies upon a default under this Agreement, subject to the rights of the
Holders of the Notes and the Lenders to receive distributions and payments
otherwise payable to BDI.

                  The failure to make a payment on account of Management
Distributions by reason of any provision of this Section 5 shall not be
construed as preventing the occurrence of a default under this Agreement.

                  (h)      Subordination May Not Be Impaired by the Company. No
right of any Holder of Notes to enforce the subordination of the payment of
Management Distributions under this Agreement shall at any time in any way be
prejudiced or be impaired by any act or failure to act by the Company or BDI or
by the failure of the Company or BDI to comply with this Agreement, regardless
of any knowledge thereof which BDI may have otherwise been charged with.

                  Without in any way limiting the generality of the foregoing
paragraph, the Holders of the Notes may, at any time and from time to time,
without the consent of or notice to BDI, without incurring responsibility to BDI
and without impairing or releasing the subordination provided in this Section 5
or the obligations hereunder of BDI to the Holders of the Notes, do any one or
more of the following: (i) change the manner, place or terms of payment or
extend the time of payment of, or renew or alter, the Notes, or otherwise amend
or supplement in any manner the Notes; (ii) sell, exchange, release or otherwise
deal with any property pledged, mortgaged or otherwise securing the Notes; (iii)
release any Person liable in any manner for the payment or collection of the
Notes; and (iv) exercise or refrain from exercising any rights against the
Company and any other Person.

                  (i)      Amendments. The provisions of this Section 5 shall
not be amended or modified without the written consent of the parties holding a
majority of the outstanding Notes.

         6.       Notwithstanding the foregoing, the Company shall not be
required to pay the distributions under Section 4, if a Default or Event of
Default has occurred and is continuing under (i) the Indenture or (ii) the
Credit Facility (as such terms are defined therein), or would occur as a
consequence of such payment. Any payments otherwise owed hereunder that are not
made shall not be canceled but rather shall accrue and shall be payable by the
Company promptly when, and to the extent, the Company is no longer prohibited
from making such payments.

         7.       The terms of this Agreement shall commence on the day and year
first above written and shall continue until the date on which the manager no
longer serves as manager of the Company pursuant to the Operating Agreement,
unless earlier terminated by either party upon 60 days prior written notice.

         8.       The Manager shall have no liability hereunder for any breach
of this Agreement, except to the extent that any such breach hereunder gives
rise to a breach of the Manager's obligations as set forth in the Operating
Agreement, which breach shall be remedied pursuant to the terms thereof. The
Company's sole remedy for any claim hereunder shall be the termination of this
Agreement, provided, that nothing set forth herein shall in any way impair the
Company's

                                       4
<PAGE>

rights and remedies are set forth in the Operating Agreement. The Company shall
indemnify the Manager, and any employee, officer, manager, director or Agent of
the Manager, as and to the extent set forth in Section 8.2 of the Operating
Agreement.

         9.       MISCELLANEOUS.

                  (a)      This Agreement and the Operating Agreement set forth
the entire understanding of the parties with respect to the Manager's rendering
of management services to the Company. This Agreement may not be modified,
waived, terminated or amended, except expressly by an instrument in writing
signed by the Manager and the Company.

                  (b)      This Agreement and the right to receive distributions
due hereunder may be assigned or pledged in whole or in part by the Manager to
any party. This Agreement may not be assigned or pledged by the Company without
the prior written consent of the Manager.

                  (c)      In the event that any provision of this Agreement
shall be held to be void or unenforceable in whole or in part, the remaining
provisions of this Agreement and the remaining portion of any provision held
void or unenforceable in part shall continue in full force and effect.

                  (d)      Except as otherwise specifically provided herein,
notice given hereunder shall be deemed sufficient if delivered personally or
sent by registered or certified mail to the address of the party for whom
intended at the principal executive offices of such party, or at such other
address as such pay may hereinafter specify by written notice to the other
party.

                  (e)      No waiver by either party of any breach of any
provision of this Agreement shall be deemed a continuing waiver or a waiver of
any preceding or succeeding breach of such provision or of any other provision
herein contained

                  (f)      This Agreement shall be governed by and construed in
accordance with the laws of the State of Indiana.

                  (g)      This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which
together shall constitute one instrument.

                            [signature page follows]

                                       5
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have executed this Management
Agreement as of the day and year first above written.

                                                   BARDEN DEVELOPMENT, INC.

                                                   _____________________________
                                                   Name:
                                                   Title:

                                                   THE MAJESTIC STAR CASINO, LLC

                                                   _____________________________
                                                   Name:
                                                   Title:

                                       6

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