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                                                                   Exhibit 10.16

                                    AGREEMENT

     This Agreement is made and entered into this 28th day of August, 2002 (this
"Agreement") by and between ARGOSY GAMING COMPANY, a Delaware corporation (the
"Company") and Robert R. Burgess, an individual residing in the State of
Missouri (the "Employee");

                                    RECITALS:

     The Compensation Committee of the Company's Board of Directors believes it
is in the best interest of the Company to enter into this Agreement with the
Employee.

     NOW THEREFORE, in consideration of the premises and of the covenants and
agreements herein contained, the parties hereto agree as follows:

     1.   EMPLOYMENT. The Company agrees that the Employee shall be employed by
the Company during the term of this Agreement initially in the capacity of Sr.
Vice President, Human Resources or in such other capacity as determined by the
Company's Chief Executive Officer or Board of Directors. The Employee shall have
such duties and responsibilities as are assigned to the Employee by the Chief
Executive Officer or Board of Directors of the Company. The Employee
acknowledges and agrees that the Employee's duties and responsibilities
hereunder may include serving as an officer of the Company's subsidiaries and
affiliates without any additional compensation therefore. The Employee hereby
accepts employment from the Company upon the terms and conditions herein set
forth and agrees to devote his/her best efforts and energies to the business of
the Company.

     2.   TERM. The effective date of this Agreement shall be January 1, 2002
("Effective Date") and such Agreement shall continue unless terminated as
hereinafter provided in Sections 5 and 6 hereof.

     3.   COMPENSATION.

          (a)  BASE SALARY. Subject to the terms and conditions set forth in
this Agreement, the Company shall pay to Employee a Base Salary equal to
$200,000.00 per annum. The Company shall pay the Base Salary to Employee in
accordance with the usual and customary payroll procedures of the Company.
Further, this Base Salary may be adjusted at any time without altering the terms
of this Agreement.

          (b)  OTHER COMPENSATION. You shall be eligible to participate in any
and all stock option and bonus programs created by the Compensation Committee of
the Board of Directors; provided, however, the Compensation Committee has sole
and absolute discretion in granting stock options and establishing the criteria
for any and all bonus programs. The terms and conditions of each of the stock
option programs, the stock option grant and the bonus program will be more fully
set forth in any Stock Option Agreements and stock grant certificates adopted
and delivered respectively and in the definitive bonus plan.

          (c)  FRINGE BENEFITS. The Employee shall be entitled to participate in
all insurance and other fringe benefit programs of the Company as are accorded
other employees of

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the Company holding similar positions as the Employee. The employee shall be (i)
entitled to participate in the company's health plan effective the first day of
employment if a new employee, and (ii) entitled to coverage or reimbursement for
any family medical and dental costs not covered by the Company's plans, subject
to the Company's Supplemental Medical and Dental Reimbursement Plan for
Executives and regulatory guidelines.

          (d)  SPECIAL ALLOWANCES. The Company agrees to pay a special allowance
of $500 per month.

          (e)  COMPLIMENTARY PRIVILEGES. The Employee shall be entitled to an
employee discount of not less than 25% at Company retail establishments. The
Employee and his/her immediate family shall be entitled to complimentary
privileges in the Company restaurants and eating establishments.

          (f)  REIMBURSEMENT OF EXPENSES. The Employee shall be reimbursed for
all items of travel and entertainment and miscellaneous expenses reasonably
incurred by him/her on behalf of the Company. Reimbursement for such expenses
will be pursuant to, and limited by, the Company's policies with respect to
reimbursing business expenses of employees of the Company holding similar
positions as the Employee and will require proper documentation.

          (g)  ENTIRE COMPENSATION. The compensation and benefits provided for
in this Agreement are in full payment of the services to be rendered by the
Employee to the Company.

     4.   CHANGE OF CONTROL. In the event that there occurs a Change of Control
(as hereinafter defined) of the Company, the Employee shall, notwithstanding any
actions taken by the Company or its successor after the Change of Control, be
entitled to an amount equivalent to three (3) years of Base Salary and one (1)
year of Benefits (grossed up at Excise Tax rate).

     Such amount shall be paid on the Change of Control Date (i) if the Employee
is offered a position with lesser responsibility, or lesser salary as a result
of the Change of Control, or is offered a position with lesser responsibility,
or lesser salary within one (1) year after the Change of Control; or (ii) the
Employee elects to terminate his/her employment on the Change of Control Date.

     In the event the Employee's employment is terminated after the public
announcement of a Change of Control but prior to the consummation of a Change of
Control for any reason other than those set forth in Sections 5, 6(a), (b), (d)
or (e), then the Employee shall be entitled to an amount equivalent to three (3)
years of Base Salary and one (1) year Benefits (grossed up at the Excise Tax
rate).

     For purposes hereof, Change of Control shall mean (i) any merger or
consolidation of the company with or into any person or any sale, transfer or
other conveyance, whether direct or indirect, of all or substantially all of the
assets of the company, on a consolidated basis, in one transaction or a series
of related transactions, if, immediately after giving effect to such
transaction, any "person" or "group" (as such terms are used for purposes of
Sections 13 (d) and 14 (d) of the Exchange Act, whether or not applicable)
(other than an Excluded Person) is or becomes the "beneficial owner," directly
or indirectly, or more than 40% of the total voting power in the aggregate
normally entitled to vote in the election of directors, managers, or

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trustees, as applicable, of the transferee or surviving entity, (ii) any
"person" or "group" (as such terms are used for purposes of Sections 13 (d) and
14 (d) of the Exchange Act, whether or not applicable) (other than an Excluded
Person) is or becomes the "beneficial owner," directly or indirectly, of more
than 40% of the total voting power in the aggregate normally entitled to vote in
elections of directors of the company, or (iii) during any period of 12
consecutive months after the Effective Date, individuals who at the beginning of
any such 12-month period constituted the Board of Directors of the Company
(together with any new directors whose elections by such Board or whose
nomination for election by the shareholders of the Company was approved by a
vote of a majority of the directors then still in office who were either
directors at the beginning of such period or whose election or nomination for
election was previously so approved) cease for any reason to constitute a
majority of the Board of Directors of the Company then in office.

     For purposes hereof, Benefits shall mean benefits substantially similar to
any and all benefits received by or which exist for the benefit of the Employee
and such dependents as were covered immediately prior to the announcement of the
Change of Control.

     5.   DEATH OR TOTAL DISABILITY OF EMPLOYEE.

          (a)  DEATH. In the event of the death of the Employee during the term
of this Agreement, this Agreement shall terminate effective as of the date of
the Employee's death and the Company shall have no further obligations or
liability hereunder, except the Company shall pay to the Employee's estate the
portion, if any, of the (i) Employee's Base Salary for the period up to the
Employee's date of death which remains unpaid; and (ii) amounts payable pursuant
to any employee benefits plans in which the Employee was a participant prior to
his/her death.

          (b)  DISABILITY. In the event the Employee suffers a Disability (as
hereinafter defined) during the term of this Agreement, the Company shall have
the right to terminate the Employee's employment hereunder by giving the
Employee ten (10) days written notice thereof, and upon expiration of such ten
(10) day period, the Company shall not have any further obligations or liability
under this Agreement, except the Company shall pay to Employee the portion, if
any, of: (i) the Employee's Base Salary for the period to the date of
termination which remains unpaid; and (ii) any amounts payable pursuant to any
employee benefit plans in which the Employee was a participant prior to the date
of his termination.

     The term "Disability", when used herein, shall mean when the Employee
qualifies for a benefit under the Company's long term disability plan or if the
Company does not have a long term disability plan, it shall mean a mental or
physical condition which, in the reasonable opinion of the Company's designated
medical doctor, renders the Employee unable or incompetent to carry out the job
responsibilities he/she held or tasks to which he/she was assigned at the time
the disability was incurred for a period of 60 consecutive days or 60 days in
any 12 consecutive month period.

     6.   TERMINATION. Notwithstanding anything contained in this Agreement to
the contrary, the Employee's employment under this Agreement may be terminated
by the Company upon written notice to Employee for any of the following reasons:

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          (a)  If the Employee is denied a gaming license by any state gaming
board or any other gaming authority having jurisdiction over the operations of
the Company or its subsidiaries or affiliates ("Gaming Body"), or if the
Employee's license issued by any Gaming Body is suspended, revoked, sanctioned
or reprimanded for any period of time or for any conduct;

          (b)  If the Employee commits an offense involving moral turpitude
under Federal, State or local laws or ordinances or conducts himself/herself
publicly or privately in any manner which causes him/her to be held in public
ridicule or scorn, or causes public scandal or uses liquors, narcotics or drugs
to such an extent as will have visible detrimental effect on the Company;

          (c)  If the Employee fails to perform his/her job responsibilities in
a manner satisfactory to the Chief Executive Officer or the Board of Directors;

          (d)  If the Employee knowingly violates any of the internal control
procedures and/or company policies of the Company; or, knowingly violates any
statute, rule or regulation of any Gaming Body, the United States Coast Guard,
or any other governmental body having jurisdiction over the business activities
of the Company; and;

          (e)  If the Employee breaches any term or condition of this agreement.

     Except in the event the Employee is terminated pursuant to Section 6(a)
above, in the event that the Company shall terminate the Employee's employment
pursuant to this Section 6, the Company shall not have any further obligations
or liabilities under this Agreement, except the Company shall (a) pay to the
Employee his/her Base Salary up to the 30th day following the date of the
Employee's termination hereunder or if the termination is pursuant to Section
6(c) hereof or pursuant to a job elimination with results in a discontinuation
of employment with the Company, then the Company shall pay to Employee his/her
Base Salary for 12 months and an amount equal to his/her banked, but not yet
paid bonus following the date of the Employee's termination; and (b) any amounts
or benefits payable pursuant to any employee benefit plan in which the Employee
was a participant prior to the date of his/her termination, subject, however, to
the terms and provisions of any such employee benefit plan.

     Without limiting the foregoing, the Employee shall surrender all vehicles,
credit cards, uniforms, cellular telephones, pagers and other Company property
to the Company prior to any payment to the Employee hereunder.

     Following any notice of termination of employment hereunder, Employee shall
fully cooperate with the Company in all matters relating to the winding up of
his/her pending work on behalf of the Company and the orderly transfer of such
work to the other professional employees of the Company. On or after the giving
of notice of termination hereunder and during any applicable notice period, the
Company shall be entitled to such full-time or part-time services of Employee as
the Company may reasonably require.

     7.   DISCOVERIES. The Employee will promptly disclose in writing to the
Company each improvement, discovery, idea, concept and invention relating to the
business of the Company, made or conceived by the Employee either alone or in
conjunction with others while

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employed by the Company hereunder or within six (6) months after the termination
of such employment. This provision shall not apply to an invention for which no
equipment, supplies, facility or trade secret information of the Company was
used and which was developed entirely on the Employee's own time, and (a) which
does not relate (i) to the business of the Company or (ii) to the Company's
actual or demonstrably anticipated research or development, or (b) which does
not result from any work performed by the Employee for the Company. The Employee
will not disclose any such improvement, discovery, idea, concept or invention to
any person except the Company. Each such improvement, discovery, idea, concept
or invention shall be the sole and exclusive property of, and is hereby assigned
to, the Company, and at the request of the Company, the Employee will assist and
cooperate with the Company and any person or persons (at the Company's or such
other person's expense) from time to time designated by the Company to obtain
for the Company the grant of any letters patent in the United States and/or such
other country or countries as may be designated by the Company, covering any
such improvement, discovery, idea, concept or invention and will in connection
therewith execute such applications, statements, assignments or other documents,
furnish such information and data and take all such other action (including,
without limitation, the giving of testimony) as the Company may from time to
time reasonably request.

     8.   NON-DISCLOSURE AND NON-COMPETITION.

          (a)  The Employee recognizes and acknowledges that he/she will have
access to certain confidential information of the Company, including but not
limited to, trade secrets, customer lists, sales records, future casino
development plans and other proprietary commercial information, and that such
information constitutes valuable, special and unique property of the Company.
The Employee agrees that he/she will not, for any reason or purpose whatsoever,
during or after the term of his/her employment, disclose any of such
confidential information to any party without express authorization of the
Company, except as necessary in the ordinary course of performing his/her duties
hereunder.

          (b)  The Employee agrees with the Company that during the term of
his/her employment with the Company (or any affiliate or subsidiary of the
Company) and for a period of one (1) year following the termination of his/her
employment with the Company (or any affiliate or subsidiary of the Company),
he/she will not, without prior written consent of the Company, engage directly
or indirectly in any business (either financially or as a shareholder, employee,
officer, partner, independent contractor or owner, or in any other capacity
calling for the rendition of personal service or acts of management, operation
or control) which owns, operates or manages casinos, bingo parlors or other
gaming facilities within the Territory (as hereinafter defined); provided,
however, that Employee may own up to three percent (3%) of any class of
securities of a corporation engaged in such a competitive business if such
securities are listed on a national securities exchange or registered under the
Securities Exchange Act of 1934.

          (c)  The Employee further agrees that for a period of ninety (90) days
following the termination of his/her employment with the Company (or any
affiliate or subsidiary of the Company), he/she will not, without prior written
consent of the Company, recruit any other Company employees away from the
Company.

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          (d)  The term "Territory" as used herein shall mean a 150 mile radius
of each casino, bingo parlor or gaming facility being operated or managed by the
Company or for which the Company has either received a local community
endorsement or filed for a gaming license as of the date of termination.

          (e)  The Employee acknowledges that his/her compliance with the
agreements in paragraphs 8(a) and 8(b) hereof is necessary to protect the good
will and other proprietary interests of the Company and that he/she is one of
the principal executives of the Company and conversant with its affairs, its
trade secrets, its customers and other proprietary information. The Employee
acknowledges that a breach of his/her agreements in paragraphs 8(a) and 8(b)
hereof will result in irreparable and continuing damage to the Company and the
business of the Company, for which there will be no adequate remedy at law; and
agrees that in the event of any breach of the aforesaid agreements in paragraphs
8(a) and 8(b), the Company and its successors and assigns shall be entitled to
injunctive relief of 50% of the Employee's annual salary and to such other and
further relief as may be proper. The Employee further agrees that in the event
of any breach of the agreement in paragraph 8(c), the Company and its successors
and assigns shall be entitled to injunctive relief of 100% of the Employee's
annual salary and to such other and further relief as may be proper.

     9.   SUPERSEDES OTHER AGREEMENTS. This Agreement supersedes and is in lieu
of any and all other employee arrangements between the Employee and the Company
or any of their respective subsidiary and affiliated companies.

     10.  AMENDMENTS. Any amendment to this Agreement, including any extensions
or renewal of the term of employment of Employee, shall be made in writing and
signed by the parties hereto.

     11.  ENFORCEABILITY. If any provision of this Agreement shall be held
invalid or unenforceable, in whole or in part, then such provision shall be
deemed to be modified or restricted to the extent and in the manner necessary to
render the same valid and enforceable, or shall be deemed excised from the
Agreement as the case may require, and this Agreement shall be construed and
enforced to the maximum extent permitted by law, as if such provision had been
originally incorporated herein as so modified or restricted, or as if such
provision had not been originally incorporated herein, as the case may be.

     12.  GOVERNING LAW. The validity and effect of this Agreement shall be
governed exclusively by the laws of the State of Illinois, excluding the
"conflicts of laws" rules of that state.

     13.  ASSIGNMENT.

          (a)  The rights and obligations of the Company under this Agreement
shall inure to the benefit of, and shall be binding upon, the successors and
assigns of the Company, subject to the provisions set forth in Section 4 hereof.

          (b)  This Agreement and the obligations created hereunder may not be
assigned by the Employee.

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     14.  ATTORNEYS' FEES. In the event any legal action to enforce the terms
and conditions of this Agreement is commenced, reasonable attorneys' fees, court
costs and all reasonable costs of litigation shall be awarded to the prevailing
party.

     15.  NOTICES. All notices required or permitted to be given hereunder shall
be in writing and shall be deemed to have been given when personally delivered
or mailed, by certified or registered mail, return receipt requested, addressed
to the intended recipient as follows:

     IF TO THE EMPLOYEE:

          Robert R. Burgess
          50 Berkshire
          St. Louis, MO 63117

     IF TO THE COMPANY:

          Argosy Gaming Company
          219 Piasa Street
          Alton, IL 62002
          ATTN: Legal Department

     Any party may from time to time change its address for the purposes of
notices to that party by a similar notice specifying a new address, but no such
change shall be deemed to have been given until it is actually received by the
party sought to be charged with the contents.

     16.  WAIVER. No claim or right arising out of a breach or default under
this Agreement can be discharged in whole or in part by a waiver of that claim
or right unless the waiver is supported by consideration and is in writing and
executed by the aggrieved party hereto or its or his/her duly authorized agent.
A waiver by any party hereto of a breach or default by the other party hereto of
any provision of this Agreement shall not be deemed a waiver of any prior or
subsequent compliance therewith, and such provision shall remain in full force
and effect.

     IN WITNESS WHEREOF, this Agreement has been executed by the Company, by a
duly authorized officer, and by the Employee on the date first above written.

                                                 ARGOSY GAMING COMPANY

                                                 By: /s/ Dale R. Black
                                                     ---------------------------
                                                 Title: Senior Vice President
                                                        ------------------------

                                                 Robert R. Burgess

                                                 /s/ Robert R. Burgess
                                                 -------------------------------

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                                                                   Exhibit 10.17

                                 GROUND SUBLEASE

     THIS GROUND SUBLEASE is entered into as of the 20th day of August,
1996, by the CITY OF LAWRENCEBURG, INDIANA, an Indiana municipality (the
"City"), and INDIANA GAMING COMPANY, L.P., an Indiana limited partnership
("Tenant"), and in consideration of their mutual undertakings, the parties agree
as follows:

     1.   PREMISES. The City subleases to Tenant and Tenant subleases from the
City the land located in Dearborn County, Indiana, described in EXHIBIT A
attached hereto and incorporated herein by reference, and all rights,
privileges, easements and appurtenances benefiting, belonging or pertaining
thereto (the "Premises").

     2.   TERM. The term of this Sublease (the 'Term", which as used herein
includes the Initial Term and any and all Renewal Terms as hereinafter defined)
shall commence on the date (the "Commencement Date") that Tenant begins
operation of a riverboat gaming facility on the Premises in Dearborn County,
Indiana, pursuant to an "Owner's license" (the "License") for such activity as
defined in IND. CODE Section 4-33-2-15. As used herein, the phrase "Year 1" of
the Term shall be deemed to run from the first day of the calendar month
following the Commencement Date until the last day of the same month of the
following calendar year, with "Year 2" of the Term commencing on the first day
of the succeeding month. Each subsequent "Year" of the Term shall then commence
on the anniversary date of the commencement of Year 2. The initial term (the
"Initial Term") of this Sublease shall commence on the Commencement Date and
continue through Year 6. Thereafter, the Term of this Sublease will be
automatically extended for up to nine (9) renewal term periods of five (5) years
each (each such renewal period being hereinafter referred to as a "Renewal
Term"), unless Tenant, at least six (6) months prior to the end of the Initial
Term or the preceding Renewal Term, gives notice to the City of Tenant's intent
not to renew; PROVIDED, HOWEVER, that if Tenant gives such notice less than one
(1) year before the end of the Initial Term or such Renewal Term, then the
Initial Term or such Renewal Term as the case may be shall be automatically
extended for a period of one (1) year from the date of such notice. The City
hereby grants to Tenant the right to access the Premises and construct
Improvements (as hereinafter defined) thereon at such time as the License has
been issued to Tenant, notwithstanding the fact that such time period shall
precede the Commencement Date. Notwithstanding any other term or condition of
this Lease to the contrary, this lease shall terminate upon the earlier of (a)
the proper and effective termination of the Development Agreement by the City in
accordance with the terms of the Development Agreement and (b) fourteen (14)
days of the date on which any suspension, revocation or rescission of the
Certificate of Suitability or Gaming License of Tenant, as applicable, issued
pursuant to IND. CODE Sections 4-33-1 ET SEQ., becomes effective, whichever
first occurs; provided, however, if this Lease is terminated as a result of any
such suspension, revocation or rescission of the Certificate of Suitability or
Gaming License, as applicable, and the suspension, revocation or rescission of
the Certificate of Suitability or Gaming License, as applicable, is subsequently
stayed, terminated or cancelled, then this Lease shall thereupon automatically
and simultaneously be reinstated according to its terms and the City shall
return possession of the Premises to Tenant within fourteen (14) days of such
reinstatement in the same condition as received from Tenant.

     3.   RENT. For each Year of the Term, Tenant shall pay the City as rent for
the Premises the sum of $500,000 (the "Rent"). Pursuant to a certain Riverboat
Gaming

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Development Agreement between The City of Lawrenceburg, Indiana, and The Indiana
Gaming Company, L.P., dated as of the 13th day of April, 1994, as amended (the
"Development Agreement"), Tenant has agreed to make certain Annual Payments (as
defined in the Development Agreement) to the City. During each Year of the Term
of this Sublease, the first $500,000 of the Annual Fee paid by Tenant to the
City during such Year shall be deemed to be payment of the Rent. In the event
this Sublease is terminated as herein provided prior to the end of any Year of
the Sublease, the City shall reimburse to Tenant the unearned portion of such
Rent as determined on a pro rata basis based on the total number of days
remaining in the Year of the Sublease.

     4.   IMPROVEMENTS ON THE PREMISES. The City hereby grants to Tenant the
right to access the Premises and construct Improvements, as hereinafter defined,
at such time as a "Certificate of Suitability" has been issued to Tenant, and
Tenant has obtained such other permits as may be required for such construction,
notwithstanding the fact that such time period may precede the Commencement
Date. Tenant shall have the right to construct, use and operate Improvements on
and under the Premises, to make additions thereto, and to alter, demolish,
relocate and reconstruct Improvements thereon and thereunder, provided, however,
that such construction or operation of Improvements do not preclude or
materially interfere with the ability of the Lawrenceburg Conservancy District
to maintain and provide adequate flood control. Such right and authority shall
include the right to modify, alter or breach the levee located within the area
of the Premises, provided, however, that (i) the plans for any work involving or
affecting the levee and related improvements shall be submitted to the
Lawrenceburg Conservancy District pursuant to the Master Lease, as defined
below, and (ii) all applicable governmental consents, approvals and permits have
been obtained. Tenant shall own and have title to all Improvements on the
Premises. Upon the expiration or earlier termination of this Sublease, Tenant
shall have the right to remove any Improvements from the Premises for a period
of one (1) year after the termination of this Lease; provided however, that upon
any such removal Tenant shall refill all excavations and restore the surface of
the Premises to a reasonably satisfactory condition. Title to any Improvements
not removed by Tenant within sixty (60) days after the termination of this
Sublease shall be deemed vested in the City. All Improvements constructed on the
Premises shall be constructed in a diligent and workmanlike manner and in
compliance with all applicable governmental regulations. As used herein,
"Improvements" means all buildings, docks, piers, structures, driveways,
walkways, fencing and other physical improvements made to, on or under the
Premises by Tenant and must include, at a minimum, those facilities required by
the Indiana Ganging Commission, including a three hundred room hotel; PROVIDED,
HOWEVER, that if Tenant abandons the land based facility, then ownership of such
facility and ownership of the furniture, fixtures and equipment located thereon
and required to operate such facility (but specifically excluding any gaming
equipment) shall vest in the City. The initial construction of the Improvements
must be completed within eighteen (18) months following Tenant's commencement of
riverboat gaming operations in Dearborn County, Indiana.

     5.   EASEMENTS. The City shall execute (or shall use its best efforts to
cause to be executed by the fee simple owner of the Premises, provided that such
effort does not cause, in the opinion of the City, any unreasonable financial
burden or expense on the City) such easements relating to the Premises as Tenant
reasonably deems necessary or appropriate to the enjoyment of its rights
hereunder, and the City shall execute (or shall use its best efforts to cause to
be executed by the fee simple owner of the Premises) such applications,
petitions and other

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instruments as may be required to enable Tenant to obtain, at Tenant's expense,
such approvals, permits, covenants or licenses reasonably necessary in its
judgment to permit the full exercise of its rights hereunder.

     6.   USE, COMPLIANCE WITH LAWS. The Premises shall be used by Tenant only
for the operation of its riverboat gaming business and related support
facilities. Tenant shall keep the Premises and Improvements in good order,
condition and repair, and shall conduct its business therefrom in a safe manner.
Tenant shall use and maintain the Premises and Improvements at all times in
compliance with all legal requirements and Tenant shall not commit waste
thereon.

     7.   CONDEMNATION. If during the Term of this Sublease the Premises or
Improvements, or any part thereof, shall at any time be taken or acquired by any
authority by exercise or threat of the power of eminent domain, as between the
City and Tenant, the condemnation award shall be divided as follows:

          (a)  The fee simple owner of the Premises shall be allowed the award
     for the taking of the Premises exclusive of the Improvements and the
     leasehold interest of Tenant; and

          (b)  Tenant shall be allowed that part of the award allowed for the
     taking of the Improvements and the damage to its leasehold estate.

     8.   CITY'S REMEDY UPON DEFAULT. In the event Tenant at any time shall fail
to pay the Rent required hereunder within thirty (30) days after written notice
that the rent was not paid when due, or in the event that Tenant shall fail or
neglect to perform or observe any other covenant or condition herein contained
on Tenant's part to be performed or observed and such failure or neglect is not
cured within sixty (60) days (or such longer period as is reasonably necessary
to cure such failure or neglect) after written notice of such failure or neglect
from the City, the City, as its sole remedy hereunder, without further notice to
Tenant may terminate this Sublease and recover possession of the Premises from
Tenant; provided however, that if any default for which notice has been given as
aforesaid is remedied within the grace period applicable thereto as stated in
this Paragraph, then this Sublease shall be considered to be in full force and
effect the same as if no such default had occurred.

     9.   ATTORNEYS' FEES. Each party shall pay the other party's reasonable
legal costs and attorneys' fees incurred in successfully enforcing against the
other party any covenant, term or condition of this Sublease.

     10.  QUIET ENJOYMENT. If Tenant performs all of the covenants and
agreements herein provided to be performed on Tenant's part, Tenant shall at all
times have the peaceable and quiet enjoyment of possession of the Premises
without any manner of hindrance from the City or any parties lawfully claiming
by, through of under the City.

     11.  TAXES. The City shall pay all real property taxes, assessments and
other governmental charges levied upon the real estate constituting the
Premises; provided however, Tenant shall pay such portion of such taxes,
assessments and other governmental charges levied as a result of the
Improvements located on the Premises.

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     12.  UTILITIES. Tenant shall pay for all water, gas, heat, light, power,
telephone and other utilities and services supplied to the Premises and
Improvements, together with any taxes thereon.

     13.  WARRANTIES. The City represents and warrants to Tenant that the City
has obtained a leasehold interest to the Premises pursuant to that certain
Ground Lease dated December 28, 1995, between the City and the Lawrenceburg
Conservancy District, a copy if which is attached hereto as EXHIBIT B (the
"Master Lease"). The City makes no warranties, express or implied, to Tenant
regarding title to the Premises except as specifically set forth in the
Development Agreement, including specifically Section 5.32 and Section 10.08 of
the Development Agreement. The City specifically disclaims any representation or
warranty concerning the authority of the Lawrenceburg Conservancy District to
enter into or carry out the terms of the Master Lease. However, the person,
executing this Sublease on behalf of the City is a duly elected officer of the
City and has been fully empowered by City to execute and deliver this Sublease.
The City represents and warrants that it has full capacity and authority under
Indiana law to sublease the Premises to Tenant and all necessary action for the
making of this conveyance has been taken and done. The City further represents
and warrants to Tenant that, to the best of its knowledge, the Premises:

          (a)  contain no facilities that are subject to reporting under Section
     312 of the federal Emergency Planning and Community Right-to-Know Act of
     1986 (42 U.S.C. Section 11022);

          (b)  is not the site of any underground storage tanks for which
     notification is required under 42 U.S.C. Section 6991a or IND. CODE Section
     13-7-20-13(8)(A); and

          (c)  is not listed on the Comprehensive Environmental Response,
     Compensation and Liability Information System (CERCLIS) in accordance with
     Section 116 of the Comprehensive Environmental Response, Compensation and
     Liability Act (42 U.S.C. Section 9616).

     14.  MASTER LEASE. This Sublease is subject in all respects to the terms
and conditions of the Master Lease. Landlord covenants and agrees that it will
observe and perform each of the covenants and agreements contained in the Master
Lease, and shall abide and be bound by each of the terms and provisions, of the
Master Lease and shall take no action, or fail to take any action, that would
constitute a default by the lessee thereunder. Tenant acknowledges that it has
received a copy of the Master Lease and acknowledges that its rights hereunder
are subordinate to the rights of the Lawrenceburg Conservancy District under the
Master Lease, including, but not limited to, the rights set forth in Paragraph
17 of the Master Lease.

     15.  GENERAL AGREEMENT OF PARTIES.

          (a)  SEVERABILITY. The invalidity of any provision of this Sublease as
     determined by a court of competent jurisdiction shall in no way affect the
     validity of any other provision hereof.

          (b)  CAPTIONS. Paragraph and subparagraph captions are not a part
     hereof.

                                        4
<Page>

          (c)  MODIFICATIONS. This Sublease may be modified in writing only,
     signed by the parties in interest at the time of the modification.

          (d)  NOTICES. Any notices to be given hereunder shall be deemed
     sufficiently given when in writing and (a) actually served on the party to
     be notified or (b) placed in an envelope directed to the party to be
     notified at the following addresses and deposited in the United States mail
     by certified or registered mail, postage prepaid:

          1.   If to Tenant:

                      The Indiana Gaming Company, L.P.
                      c/o Argosy Gaming Company
                      219 Piasa Street
                      Alton, Illinois 62002
                      Attention:  J. Thomas Long
                                  Chairman and Chief Executive Officer

          2.   If to the City:

                      Mayor
                      Lawrenceburg City Administration Building
                      405 Main Street
                      Post Office Box 191
                      Lawrenceburg, Indiana 47025

     Such addresses may be changed by either party by written advice as to the
     new address given as above provided

          (e)  BINDING EFFECT; CHOICE OF LAW. This Sublease and the covenants
     and agreements contained herein shall run with the land and shall bind the
     parties, their personal representatives, successors and assigns. This
     Sublease shall be governed by the laws of the State of Indiana.

          (f)  COUNTERPARTS. This Sublease may be executed in a number of
     identical counterparts and if so executed, each such counterpart is deemed
     an original for all purposes, and all such counterparts shall collectively
     constitute one agreement.

          (g)  RECORDINGS. Either Tenant or the City shall, upon request of the
     other, execute, acknowledge and deliver to the other a "short form"
     Memorandum of Sublease for recording purposes in the form attached hereto
     as EXHIBIT C.

          (h)  INDEMNITY. Tenant agrees to indemnify and hold harmless the City
     against all claims, damages, liabilities, actions and attorneys' fees
     arising from or related to the acts and omissions of Tenant in the
     construction, operation and/or maintenance of the Improvements.

                                        5
<Page>

     16.  INSURANCE. Tenant, at its expense, shall obtain and maintain property
and liability insurance coverage for the construction and operation of the
Premises in accordance with the requirements set forth in EXHIBIT D attached
hereto.

     IN WITNESS WHEREOF, the City and Tenant have executed this Sublease as of
the day first set forth above.

                                     INDIANA GAMING COMPANY, L.P.

                                     By:    The Indiana Gaming Company, its
                                            general partner

                                            By:   /s/ J. Thomas Long
                                                  (signature)

                                                  J. Thomas Long, President
                                                  (printed name and title)

                                     CITY OF LAWRENCEBURG, INDIANA

                                     By: /s/ Melvin L. Gabbard
                                         Melvin L. Gabbard, Mayor

                                        6
<Page>

STATE OF INDIANA      )
                      ) SS:
COUNTY OF MARION      )

     Before me, the undersigned, a Notary Public in and for said County and
State, personally appeared J. Thomas Long, the President of The Indiana
Gaming Company, as the general partner of Indiana Gaming Company, L.P., who
acknowledged the execution of the foregoing instrument for and on behalf of
said entity.

     Witness my hand and notarial Seal this 20th day of August, 1996.

                                           /s/ M. Jean Dudley
                                               M. Jean Dudley, Notary Public
                                               residing in Hamilton County,
                                               Indiana

My Commission Expires:
February 23, 2000

STATE OF INDIANA      )
                      ) SS:
COUNTY OF DEARBORN    )

     Before me, the undersigned, a Notary Public in and for said County and
State, personally appeared Melvin L. Gabbard, the Mayor of the City of
Lawrenceburg, Indiana, who acknowledged the execution of the foregoing
instrument for and on behalf of said entity.

     Witness my hand and notarial Seal this 19th day of August, 1996.

                                           /s/ Frank G. Kramer
                                               Frank G. Kramer, Notary Public
                                               residing in Dearborn County,
                                               Indiana

My Commission Expires:
November 29, 1996

                                        7
<Page>

                                    EXHIBIT A

                                LEGAL DESCRIPTION

                                [Map of Premises]

<Page>

                                    EXHIBIT A
                                LEGAL DESCRIPTION

Being all of Lots 1 and 2, and part of Lot 3 of Squire Watt's Estates (Slide
339) AND part of Section 14, Township 5 North, Range 1 West of the First
Principal Meridian located in the City of Lawrenceburg, Dearborn County,
Indiana, described as follows:

Commencing at a Southeasterly corner of Guard, Dunn and Gibson's Addition (P.B.
3, P. 61) at the intersection of the Westerly line of platted William Street
with the Southerly line of platted George Street; thence S 44 DEG.45'00"W along
the right-of-way of said William Street 7.82 feet; thence S 45 DEG.15'00"E,
66.44 feet to the right-of-way of the Central Railroad of Indiana and the point
of beginning; thence along said right-of-way with the are of a curve to the
right having a radius of 536.01 feet an are distance of 21.83 feet, the long
chord of said are bears N 43 DEG.35'25"E a distance of 21.85 feet to the
right-of-way of the CSX Railroad; thence along said CSX right-of-way the
following three courses: thence N 44 DEG.45'00"E, 688.15 feet; thence with the
are of a curve to the left having a radius of 9582.30 feet an are distance of
87.17 feet, the long chord of said are bears N 44 DEG.29'22"E a distance of
87.17 feet; thence S 47 DEG.15'00"E, 42.01 feet; thence S 45 DEG.15'00"E 1215.87
feet to the Ohio River boundary between the States of Indiana and Kentucky, as
the same was determined by the Supreme Court; thence along said Ohio River
boundary the following six courses: thence S 41 DEG.29'33"W, 59.97 feet; thence
S 46 DEG.51'31"W, 298.39 feet; thence S 39 DEG.15'30"W, 104.26 feet; thence S 43
DEG.48'50"W, 304.54 feet; thence S 44 DEG.01'29"W. 213.22 feet; thence S 45
DEG.21'32"W, 138.79 feet; thence leaving said river N 45 DEG.13'00"W, 1142.92
feet to the right-of-way of said Central Railroad; thence along said Central
Railroad right-of-way with a curve to the right having a radius of 536.01 feet
an are distance of 348.55 feet, the long chord of said are bears N 23
DEG.46'09"E, 342.72 feet to the point of beginning.

Contains 32.074 acres.

<Page>

                                    EXHIBIT B

                        EXECUTED COPY OF THE MASTER LEASE

<Page>

                                  GROUND LEASE

     THIS GROUND LEASE is entered into as of the 28th day of December, 1995, by
the LAWRENCEBURG CONSERVANCY district, a conservancy district established
pursuant to IND. CODE Section 13-3-3-1 ET SEQ. (the "Conservancy District"), and
the CITY OF LAWRENCEBURG, INDIANA, an Indiana municipality (the "City").

     In consideration of their mutual undertakings, the parties agree as
follows:

     1.   PREMISES: The Conservancy District leases to City and City leases from
the Conservancy District the land located in Dearborn County, Indiana, described
in EXHIBIT A attached hereto and incorporated herein by reference, and all
rights, privileges, easements and appurtenances benefiting, belonging or
pertaining thereto (the "Premises").

     2.   TERM. The term or this Lease (the "Term", which as used herein
includes the Initial Term and any and all Renewal Terms as hereinafter defined)
shall commence on the date (the "Commencement Date") that Indiana Gaming
Company, L.P., (the "Subtenant") begins operation of a riverboat gaming facility
at the Premises pursuant to an "Owner's license" for such activity as defined in
IND. CODE Section 4-33-2-15. As used herein, the phrase "Year 1" of the Term
shall be deemed to run from the Commencement Date until the last day of the same
month of the following calendar year with "Year 2" of the Term commencing on the
first day of the succeeding month. Each subsequent "Year" of the Term shall then
commence on the anniversary date of the commencement of Year 2. The initial term
(the "Initial Term") of this Lease shall commence on the Commencement Date and
continue through Year 6. Thereafter, the Term of this Lease shall be
automatically extended for up to nine (9) renewal term periods of five (5) years
each (each such renewal period being hereinafter referred to as a "Renewal
Term"), unless City, at least six (6) months prior to the end of the Initial
Term or preceding Renewal Term, gives notice to the Conservancy District of
City's intent not to renew; provided, however, that if City gives such notice
less than one (1) year before the end of the Initial Term or such Renewal Term,
then the Initial Term or such Renewal Term, as applicable, shall be
automatically extended for a period of one (1) year from the date of such
notice. Notwithstanding the above termination provisions, in the event that
Subtenant loses its Owner's License, or is otherwise is in default under any
term or provision of its Development Agreement or sublease with City, and all
cure periods, if any, have expired, City shall have the right to terminate the
Lease by providing notice to Conservancy District of the City's intent to
terminate at least thirty (30) days prior to the end of any Year of the Term.
Upon such termination, City shall have no further liability or obligation to the
Conservancy District except as otherwise provided in paragraph 4 herein.

     3.   RENT. For each Year of the Term, City shall pay the Conservancy
District as rent for the Premises the sum of Five Hundred Thousand and 00/100
Dollars ($500,000) (the "Rent"), payable in advance in twelve (12) equal monthly
installments, each payable on or before the fifteenth (15) day of the month for
which it is due. In the event this Lease is terminated as herein provided prior
to the end of any Year of the Lease, the Conservancy District stall reimburse to
City the unearned portion of such Rent as determined on a pro rata basis on the
total number of days remaining in the Year of the Lease. Notwithstanding the
above obligation of the City to pay Rent to the Conservancy District, the
Conservancy District acknowledges and agrees that

                                        2
<Page>

such obligation shall be conditioned upon and subject to the City's receipt of
the Annual Payment, as defined in the Development Agreement entered into by and
between City and Subtenant, from which Annual Payment the parties agree that the
Rent hereunder shall be paid, and Conservancy District hereby releases City from
any such obligation except to the extent of monies received by City under said
Annual Payment obligation.

     4.   IMPROVEMENTS ON THE PREMISES. The Conservancy District hereby grants
to City and Subtenant the right to access the Premises and construct
Improvements (as hereinafter defined) thereon at such time as a "Certificate of
Suitability" has been issued to Subtenant, notwithstanding the fact that such
time period shall precede the Commencement Date. City shall have the right to
construct, use and operate Improvements on and under the Premises, to make
additions thereto, and to alter, demolish, relocate and reconstruct Improvements
thereon and thereunder, provided, however, that such construction or operation
of Improvements do not preclude or materially interfere with the Conservancy
District's ability to maintain and provide adequate flood control. Such right
and authority shall include the right to modify, alter or breach the levy
located within the area of the Premises, provided, however, that (i) the plans
for any work involving or affecting the levy and related improvements shall be
submitted to the Conservancy District for its prior approval, which approval
shall not be unreasonably withheld, and (ii) all applicable governmental
consents, approvals and permits have been obtained. Any request for the approval
of the Conservancy District hereunder shall be responded to within five (5)
business days after receipt by the Conservancy District of such request. In the
event that the Conservancy District fails to respond in writing within said
period, such plans shall be deemed approved. City shall own and have title to
all Improvements on the Premises. Upon the expiration or earlier termination of
this Lease, City shall have the right to remove any Improvements from the
Premises for a period of three hundred sixty-five (365) days after the data of
the termination of this Lease; provided however, that upon any such removal,
City shall refill all excavations and restore the surface of the Premises to a
reasonably satisfactory condition. Title to any Improvements not removed by City
within said three hundred sixty-five (365) days after the date of the
termination of this Lease shall be deemed vested in the Conservancy District and
City shall have no further obligation to the Conservancy District with respect
to such Improvements. As used herein, "Improvements" means all buildings, docks,
piers, structures, driveways, walkways, fencing and other physical improvements
made to, on or under the Premises by City.

     5.   EASEMENTS AND CONSERVANCY DISTRICT COOPERATION. The Conservancy
District shall execute (or shall use its best efforts to cause to be executed by
the fee simple owner of the affected premises, provided that such effort does
not cause any unreasonable, in the opinion of the Conservancy District,
financial burden or expense on the Conservancy District) such easements relating
and/or appurtenant to the Premises as City reasonably deems necessary or
appropriate to the enjoyment of its rights hereunder, and the Conservancy
District shall execute (or use its best efforts to cause to be executed by the
fee simple owner of the affected premises, provided that such effort does not
cause any unreasonable, in the opinion of the Conservancy District, financial
burden or expense on the Conservancy District) such applications, petitions and
other instruments as may be required to enable City to obtain such approvals,
permits, covenants or licenses reasonably necessary in its judgment to permit
the full exercise of its rights hereunder. In addition, the Conservancy District
shall cooperate with City and Subtenant, as

                                        3
<Page>

applicable, in applying for, obtaining and/or otherwise securing all approvals,
consents and permits needed from the Army Corps of Engineers and all other
applicable federal, state and local authorities or bodies having jurisdiction
over the Premises, the improvements to be constructed thereon and/or the uses
contemplated for the Premises. To the extent the Conservancy District is
required by City to incur any costs hereunder prior to the date it first
receives Rent and such costs are incurred at City's request, City, at its
option, may advance such costs on behalf of the Conservancy District and receive
a credit against the Rent due hereunder in such amount.

     6.   USE, COMPLIANCE WITH LAWS. The Premises shall be used by City to
facilitate the operation of a riverboat gaming business and related support
facilities by Subtenant. In so doing, City shall enter into a sublease with
Subtenant that shall, among other items, require Subtenant to keep the Premises
and Improvements in good order, condition and repair, and to conduct its
business therefrom in a safe manner. City shall further require Subtenant to use
and maintain the Premises and Improvements at all times in compliance with all
legal requirements and not to commit waste thereon.

     7.   CONDEMNATION. If during the Term of this Lease the Premises or
Improvements, or and part thereof, shall at any time be taken or acquired by any
authority by exercise or threat of the power of eminent domain, as between the
Conservancy District and City, the condemnation award shall be divided as
follows:

          (a)  The Conservancy District shall be allowed the part of the award
     allowed for the taking of the Conservancy District's interest in the
     Premises and the Conservancy District's leasehold interests, if any,
     exclusive of the Improvements and the leasehold interest of City; and

          (b)  City shall be allowed the part of the award allowed for the
     taking of the Improvements and the damage to its leasehold estate.

     8.   CONSERVANCY DISTRICT'S REMEDY UPON DEFAULT. In the event City at any
time shall fail to pay the Rent required hereunder within thirty (30) days after
written notice that the rent was not paid when due, or in the event that City
shall fail or neglect to perform or observe any other covenant or condition
herein contained on City's part to be performed or observed and such failure or
neglect is not cured within sixty (60) days (or such longer period as is
reasonably necessary to cure such failure or neglect) after written notice of
such failure or neglect from the Conservancy District, the Conservancy District,
as its sole remedy as against City hereunder, without further notice to City may
terminate this Lease and recover possession of the Premises from City; provided
however, that if any default for which notice has been given as aforesaid is
remedied within the grace period applicable thereto as stated in this Paragraph,
then this Lease shall by considered to be in full force and effect the same as
if no such default had occurred. The Conservancy District agrees to copy
Subtenant on all written notices provided to City hereunder and to accept
performance and cure of any default by Subtenant, in lieu of any such
performance by City.

                                        4
<Page>

     9.   ATTORNEYS' FEES. Each party shall pay the other party's reasonable
legal costs and attorney's fees incurred in successfully enforcing against the
other party any covenant, term or condition of this Lease.

     10.  QUIET ENJOYMENT. If City performs all of the covenants and agreements
herein provided to be performed on City's part, City shall at all times have the
peaceable and quiet enjoyment of possession of the Premises without any manner
of hindrance from the Conservancy District or any parties lawfully claiming by
through or under the Conservancy District.

     11.  TAXES. The Conservancy District shall pay all real properly taxes,
assessments and other governmental charges levied upon the real estate
constituting the Premises; provided however, City shall require Subtenant to pay
such portion of such taxes, assessments and other governmental charges levied as
a result of the Improvements located on the Premises.

     12.  UTILITIES. City shall require Subtenant to pay for all water, gas,
heat, light, power, telephone and other utilities and services shipped to the
Premises and Improvements, together with any taxes thereon.

     13.  FURTHER ACQUISITIONS. The Conservancy District and City acknowledge
that a portion of the Premises has been specifically identified by Subtenant as
potentially not owned or controlled by the Conservancy District or City that is
identified in EXHIBIT B attached hereto, and that Subtenant has agreed to obtain
all right, title and interest in and to such property and convey good and
marketable title to same to the Conservancy District on or before the
Commencement Date. In consideration of Subtenant's efforts, the additional
monies that City shall agree to contribute to Subtenant to obtain such property
and the conveyance of such property to the Conservancy District, the Conservancy
District agrees that it shall split the cost of such acquisition with City and
be responsible for up to a maximum sum of Five Hundred Thousand and 00/100
Dollars ($500,000.00) of the cost of such acquisition. City shall receive a
credit against the Rent due hereunder in the sum of Five Hundred Thousand and
00/100 Dollars ($500,000.00) or one-half of the total amount ultimately credited
against payments due City under the Development Agreement far such acquisition,
whichever is less. The parties agree that the credit shall be allocated and
applied on a pro-rata basis against the Rent payable during the first two (2)
Years of the Term.

     14.  WARRANTIES BY CONSERVANCY DISTRICT. Except as noted in EXHIBIT C
attached hereto and made a part hereof, the Conservancy District represents and
warrants to City that the Conservancy District has fee simple title to the
Premises, free and clear of any and all liens, claims, interests and
encumbrances of any kind and nature whatsoever, and further covenants and agrees
to defend the same against any and all adverse claims. The person executing this
Lease on behalf of the Conservancy District is a duly elected officer of the
Conservancy District and has been fully empowered by Conservancy District to
execute and deliver this Lease. The Conservancy District represents and warrants
that it has full capacity and authority under Indiana law to lease the Premises
to the City and all necessary action for the making of this conveyance on the
part of the Conservancy District has been taken and done. The Conservancy
District further represents and warrants to City that the Premises:

                                        5
<Page>

          (a)  contain no facilities that are subject to reporting under Section
     312 of the federal Emergency Planning and Community Right-to-Know Act of
     1986 (42 U.S.C. Section 11022);

          (b)  is not the site of any underground storage tanks for which
     notification is required under 42 U.S.C. Section 6991a or IND. CODE Section
     13-7-20-13 (8) (A); and

          (c)  is not listed on the Comprehensive Environmental Response,
     Compensation and Liability Information System (CERCLIS) in accordance with
     Section 116 of the Comprehensive Environmental Response, Compensation and
     Liability Act (42 U.S.C. Section 9616).

     15.  WARRANTIES BY CITY. The person executing this Lease on behalf of City
is the duly elected Mayor of the City and has been fully empowered by action of
the City Council to execute this Lease. City represents and warrants that it has
full capacity and authority under Indiana law to the Premises from the
Conservancy District and all necessary action on the part of the City for the
making of this conveyance has been taken and done.

     16.  SUBLEASE. The Conservancy District acknowledges and agrees that this
Lease is subject to and conditioned upon the City entering into a separate
sublease agreement with Subtenant, which sublease shall contain such terms and
provisions that City deems reasonably necessary, provided, however, that such
terms and provisions are not inconsistent with any term or provision contained
in this Lease. Further, to the extent any right is provided to City hereunder,
the same right may be provided by City under its sublease with Subtenant and
have the same force and effect as if granted directly to Subtenant by the
Conservancy District. The Conservancy District further acknowledges and agrees
that City shall have no liability to the Conservancy District for any act or
action arising from or related to the Premises or its operation by Subtenant,
but shall be responsible solely for the payment of the Rent hereunder in an
amount not to exceed $500,000.00, and for such monies as may be due Conservancy
District from time to time under that certain Revenue Sharing Agreement between
City and Conservancy District of even date herewith, and then only to the extent
that monies are actually received by City from Subtenant for the payment of such
obligations.

     17.  CONSERVANCY DISTRICT IMPROVEMENTS. Notwithstanding the lease of the
Premises hereunder and the right of City to modify, alter or breach the levy,
the Conservancy District hereby reserves the right to enter upon the Premises as
necessary to maintain, repair, replace, rebuild and/or modify the levy and
related improvements which are and shall remain the responsibility and
obligation of the Conservancy District in discharging its duties as a
conservancy district established pursuant to IND. CODE Section 13-3-3-1 ET SEQ.,
provided, however, that Conservancy District shall provide reasonable notice to
City and Subtenant of its need to access any part of the levy or related
improvements that are part of or adjacent to the Improvements to be located on
the Premises except in the event of an emergency as determined in the sole,
reasonable discretion of the Conservancy District. The Conservancy District
represents, warrants and agrees that in prosecuting its work on the levy and
related improvements, it will use its best efforts not to interfere with or
affect the operation of the Premises by City or Subtenant, and it will repair
and restore any portion of the Premises affected

                                        6
<Page>

by such work to the same condition as it was in immediately prior to such work
as is reasonably possible.

     18.  GENERAL AGREEMENT OF PARTIES.

          (a)  SEVERABILITY. The invalidity of any provision of this Lease as
     determined by a court of competent jurisdiction shall in no way affect the
     validity of any other provision hereof.

          (b)  CAPTIONS. Paragraph and subparagraph captions are not a part
     hereof.

          (c)  NOTICES. Any notices to be given hereunder shall be deemed
     sufficiently given when in writing and (a) actually served on the party to
     be notified or (b) placed in an envelope directed to the party to be
     notified at the following addresses and deposited in the United States mail
     by certified or registered mail, postage prepaid.

          1.   If to the Conservancy District:

                       Lawrenceburg Conservancy District
                       510 Ridge Avenue
                       Lawrenceburg, Indiana 47025
                       Attention: Deborah Biddle

          2.   If to the City:

                       Mayor
                       Lawrenceburg City Administration Building
                       Eads Parkway and Main Street
                       Post Office Box 194
                       Lawrenceburg, Indiana 47025

               With copy to:

                       The Indiana Gaming Company, L.P.
                       c/o Argosy Gaming Company
                       219 Piasa Street
                       Alton, Illinois 62002
                       Attention:   J. Thomas Long
                                    Chairman & Chief Executive Officer

Such addresses may be changed by either party by written advice as to the new
address given as above provided.

          (d)  BINDING EFFECT; CHOICE OF LAW. This Lease and the covenants and
     agreements contained herein shall run with the land and shall bind the
     parties, their

                                        7
<Page>

     personal representatives, successors and assigns. This Lease shall be
     governed by the laws of the State of Indiana.

          (e)  COUNTERPARTS. The Lease may be executed in a number of identical
     counterparts and if so executed, each such counterpart is deemed an
     original for all purposes, and all such counterparts shall collectively
     constitute one agreement.

          (f)  RECORDING. Either Conservancy District of the City shall, upon
     request of the other, execute, acknowledge and deliver to the other a
     "short form" memorandum of Lease for recording purposes in the form
     attached hereto as EXHIBIT D.

     IN WITNESS WHEREOF, the Conservancy District and City have executed this
Lease as of the day first set forth above.

                                       LAWRENCEBURG CONSERVANCY
                                       DISTRICT

                                       By: /s/ Barry Nanz
                                          -----------------------------------
                                                      (signature)

                                               Barry Nanz, Chairman
                                          -----------------------------------
                                                (printed name and title)

                                       CITY OF LAWRENCEBURG, INDIANA

                                       By: /s/ Donald B. Combs
                                          -----------------------------------
                                               Donald B. Combs, Mayor

                                        8
<Page>

                                    EXHIBIT A
                                LEGAL DESCRIPTION

                                [Map of Premises]

<Page>

                                    EXHIBIT A
                                LEGAL DESCRIPTION

Being all of Lots 1 and 2, and part of Lot 3 of Squire Watt's Estates (Slide
339) AND part of Section 14, Township 5 North, Range l West of the First
Principal Meridian located in the City of Lawrenceburg, Dearborn County,
Indiana, described as follows:

Commencing at a Southeasterly corner of Guard, Dunn and Gibson's Addition (P.B.
3, P. 61) at the intersection of the Westerly line of platted William Street
with the Southerly line of platted George Street; thence S 44 DEG. 45' 00"W
along the right-of-way of said William Street 7.82 feet; thence S 45 DEG. 15'
00"E, 60.44 feet to the right-of-way of the Central Railroad of Indiana and the
point of beginning; thence along said right-of-way with the arc of a curve to
the right having a radius of 536.01 feet an arc distance of 21.85 feet, the long
chord of said arc bears N43 DEG.35'25"E a distance of 21.88 feet to the
right-of-way of the CSX Railroad;, thence along said CSX right-of-way the
following three courses: thence 44 DEG.45'00"E. 688.l3 feet; thence with the arc
of a curve to the left having a radius of 9582.30 feet an arc distance of 87.17
feet, the long chord of said arc bears N 44 DEG. 29' 22" E a distance of $7.17
feet; thence S 47 DEG. 15' 00"E, 42.01 feet; thence S 45 DEG. 15' 00" E, 1215.87
feet to the Ohio River boundary between the States of Indiana and Kentucky, as
the same was determined by the Supreme Court; thence along said Ohio River
boundary the following six courses: thence S 41 DEG. 29' 33"W, 59.97 feet;
thence S 46 DEG. 51' 31"W, 29S.39 feet; thence S 39 DEG. 15' 30"W, 104.26 feet;
thence S 43 DEG. 48' 50"W, 304.84 feet; thence S 44 DEG. 01' 29"W, 213.22 feet;
thence S 45 DEG. 21' 32"W, 135.79 feet; thence leaving said river N 45 DEG. 15'
00"W, 1142.92 feet to the right-of-way of said Central Railroad; thence along
said Central Railroad right-of-way with a curve to the right having a radius of
536.01 feet an arc distance of 348.85 feet, the long chord of said arc bears N
23 DEG. 46' 09"E, 342.72 feet to the point of beginning.

Contains 32.074 acres.                                               leaveeS3.lk
                                                                    docksite.rev

<Page>

                                    EXHIBIT B
                              ACQUISITION PROPERTY

                          [Map of Acquisition Property]
<Page>

[Map of Acquisition Property]

<Page>

                                    EXHIBIT C
                                   EXCEPTIONS

<Page>

                                    EXHIBIT C

8.   An easement granted to Lawrenceburg Flood Control District for the
     Invention of the construction, operation, and maintenance of the Flood
     Control Project, which easements was granted by City of Lawrenceburg, by a
     certain easement dated June 3, 1940 recorded June 11, 1940, in Deed Record
     95, page 118, of the Recorder's records of Dearborn County, Indiana.

13.  Any adverse claim based upon the assertion that:
     (a)  The land described in Schedule A, or any part thereof, is now or at
          any time has been below the ordinary low water mark of the Ohio River,
          or
     (b)  Some portion of said land has been created by artificial means or has
          accreted to such portion so created, or
     (c)  Some portion of said land has been brought within the boundary thereof
          by an avulsive movement of the Ohio River, or has been formed by
          accretion to any such portion.

14.  Such rights and easements for navigation, commerce or recreation which may
     exist over that portion of said land lying beneath the waters of the Ohio
     River.

15.  Rights of upper and lower riparian owners with respect to the Ohio River.

16.  Subject to a 12 foot roadway along the Southern side of Lots 3 and 4 as
     shown on the Plat of the Squire Watt's Estate recorded January 25, 1888 in
     Plat Book 3, page 77.

17.  Subject to a perpetual flowage easement by The New York Central Railroad
     Company and The Cleveland, Cincinnati, Chicago and St. Louis Railway
     Company in favor of The United States of America dated February 28, 1961
     and recorded January 15, 1962 in Deed Record 129, huge 596.

18.  Subject. to:
     Negative consequences due to lack of satisfactory evidence of record title
     in the City of Lawrenceburg to those parcels included in Schedule A and
     described as follows: (a) A parcel surrounded on the North by William
     Street; On the South by land acquired by the Lawrenceburg Flood Control
     District in Deed Record 95, Page 511 and in Deed Record 93, Page 107; on
     the West by land acquired by the City of Lawrenceburg in Deed Record 50,
     Page 331; on the East by land acquired by the City of Lawrenceburg in Order

19.  Subject to:
     a. Negative consequences due to failure of deed from George W. Betz, Jr.,
     as Trustee of the Property of The Cleveland, Cincinnati, Chicago and St.
     Louis Railway Company, Debtor (Grantor) to Consolidated Rail Corporation
     (Grantee) recorded October 11, 1928 in Deed Record 184, Page 312 to contain
     a complete and accurate legal description of the land conveyed.
     b. Negative consequences due to failure of the deed from Consolidated Rail
     Corporation (Grantor) to The Central Railroad Company of Indiana (Grantee)
     recorded January 6,

<Page>

     1992 in Deed Record 249, Page 427 to contain a complete and accurate legal
     description of the land conveyed.
     c. Right, title and interest reserved by White Water Valley Canal Company
     in the Deed from White Water Valley Canal Company to Indianapolis and
     Cincinnati Railroad Company recorded December 5, 1865 in Deed Record 23,
     Page 336.

     Book 58, Page 512 and also on the East by land acquired by the Lawrenceburg
     Flood Control District in Deed Record 95, Page 511. (b) That portion of the
     insured premises which lies beneath St. Clair Street as extended from
     William Street to the Ohio River.

22.  Financing Statement by Central Railroad Company of Indiana (as Debtor) to
     The First National Bank of Boston, as Agent (Secured Party) recorded
     January 3, 1992, File No. 13 in the Office of the Recorder for Dearborn
     County, Indiana.

23.  Lien and provisions of a mortgage by The Central Railroad Company of
     Indiana to The First National Bank of Boston in the original principal sum
     of $7,000,000.00 dated December 30, 1991 and recorded January 6, 1992 in
     Mortgage Record 300, Page 598.

24.  Subject to a perpetual right of way for construction and maintenance in
     favor of the United States granted by the City of Lawrenceburg March 12,
     1891 and recorded March 30, 1891 in Deed Record 47, Page 442.

35.  Subject to an unrecorded __________________

                                        2
<Page>

                                    EXHIBIT D
                               MEMORANDUM OF LEASE

<Page>

                               MEMORANDUM OF LEASE

     The Memorandum of Lease made this 28th day of December, 1995, by and
between the LAWRENCEBURG CONSERVANCY DISTRICT, a conservancy district
established pursuant to IND. CODE Section 13-3-3-1 ET SEQ. (the "Conservancy
District"), and the CITY OF LAWRENCEBURG, INDIANA, an Indiana municipality (the
"City"), evidences that:

     WHEREAS, the Conservancy District and City entered into a Ground Lease
dated _________, 19___ (the "Lease") for the premises which are described in
Exhibit "A" attached hereto and by this reference made a part hereof (the
"Premises"); and,

     WHEREAS, the Conservancy District and City have entered into this
Memorandum of Lease in order to provide notice of certain of the terms and
provisions of the Lease.

     NOW THEREFORE, for good and valuable consideration, the parties hereto
agree as follows:

     1.   The Conservancy District has leased the Premises to City pursuant to
the terms of the Lease for a term (the "Term", which, as used herein, includes
the Initial Term and any and all renewal Terms as hereinafter defined), which
shall commence on the date (the "Commencement Date") that Indiana Gaming Company
L.P. ("Subtenant"), begins operation of a riverboat gaming facility at the
Premises pursuant to an "Owner's license" for such activity as defined in IND.
CODE Section 4-33-2-15. As used herein, the phrase "Year 1" of the Term shall be
deemed to run from the Commencement Date until the last day of the same month of
the following calendar year, with "Year 2" of the Term commencing on the first
day of the succeeding month. Each subsequent "Year" of the Term shall then
commence on the anniversary date of the commencement of Year 2. The initial term
(the "Initial Term") of the Lease shall commence on the Commencement Date and
continue through Year 6. Thereafter, the Term of this Lease shall be
automatically extended for up to nine (9) renewal term periods of five (5) years
each (each such renewal period being hereinafter referred to as a "Renewal
Term"), provided, however, that City shall have the right to terminate the
Lease, with or without cause, by providing notice to the Conservancy District of
the City's intent to terminate at least thirty (30) days prior to the end of any
Year of the Term. Upon such termination, City shall have no further liability or
obligation to the Conservancy District except as otherwise expressly provided in
the Lease.

     2.   IMPROVEMENTS ON THE PREMISES. The Conservancy District hereby grants
to City the right to access the Premises and construct Improvements (as
hereinafter defined) thereon at such time as a "Certificate of Suitability" has
been issued to Subtenant, notwithstanding the fact that such time period shall
precede the Commencement Date. City shall have the unrestricted right to
construct, use and operate Improvements on and under the Premises, to make
additions thereto, and to alter, demolish, relocate and reconstruct Improvements
thereon and thereunder. Such right and authority shall include the right to
modify, alter or breach the levy located within the area of the Premises,
provided, however, that all applicable governmental consents, approvals and
permits have been obtained. City shall own and have title to all Improvements on
the Premises. Upon the expiration or earlier termination of this Lease, City
shall have the right to remove any Improvements from the Premises for a
reasonable period of time; provided however, that upon any such removal, City
shall refill all excavations and restore the surface of the

<Page>

Premises to a reasonably satisfactory condition. Title to any Improvements not
removed by City within three hundred sixty-five (365) days after the date of the
termination of this Lease shall be deemed vested in the Conservancy District. As
used herein, "Improvements" means all buildings, docks, piers, structures,
driveways, walkways, fencing and other physical improvements made to, on or
under the Premises by City.

     3.   All of the terms and provisions of the Lease are hereby incorporated
herein by reference as if the same were set forth in full herein.

     4.   This Memorandum of Lease shall be binding upon and inure to the
benefit of the parties hereto and their respective successors, successors in
interest and assigns.

     IN WITNESS WHEREOF, the parties hereto have set their hands the day and
year first above written.

                                   LAWRENCEBURG CONSERVANCY DISTRICT

                                   By: /s/ Barry Nanz
                                      ------------------------------------------
                                      (signature)

                                      Barry Nanz, Chairman
                                      ------------------------------------------
                                      (printed name and title)

                                   CITY OF LAWRENCEBURG, INDIANA

                                   By: /s/ Donald B. Combs
                                        ----------------------------------------
                                        Donald B. Combs, Mayor

                                        2
<Page>

STATE OF INDIANA           )
                           ) SS:
COUNTY OF DEARBORN         )

     Before me, a Notary Public in and for said County and State, personally
appeared Barry Nanz a Chairman of the Lawrenceburg Conservancy District, and
who acknowledged the execution of the foregoing Memorandum of lease for and
on behalf of the Conservancy District.

     Witness my hand and Notarial Seal this 27th day of December, 1995.

My Commission Expires:

                                       /s/ William K. Ewan
                                           ----------------------
____________________                       Notary Public

                                           William K. Ewan, Notary Public
                                           Commission Expires January 4, 1998
                                           Resident of Dearborn County, Indiana
                                           ------------------------------------
                                                    Printed Name

My County of Residence:

____________________

STATE OF INDIANA           )
                           ) SS:
COUNTY OF DEARBORN         )

     Before me, a Notary Public in and for said County and State, personally
appeared Donald B. Combs, the Mayor of the City of Lawrenceburg, Indiana, and
who acknowledged the execution of the foregoing Memorandum of Lease for and on
behalf of the City.

     Witness my hand and Notarial Seal this _____ day of ______ 1995.

My Commission Expires:
                                                    ----------------------
                                                    Notary Public
_____________________
                                                    ----------------------
                                                    Printed Name

My County of Residence:

_____________________

This instrument prepared by David A. Shelton, Esq., Lowe Gray Steele & Hoffman,
Suite 4600, 111 Monument Circle, Indianapolis, Indiana 46204, (317) 236-8020.

<Page>

[Map of Premises]

<Page>

                                    EXHIBIT A
                                LEGAL DESCRIPTION

Being all of Lots 1 and 2, and part of Lot 3 of Squire Watt's Estates (Slide
339) AND part of Section 14, Township 5 North, Range 1 West of the First
Principal Meridian located in the City of Lawrenceburg, Dearborn County,
Indiana, described as follows :

Commencing at a Southeasterly corner of Guard, Dunn and Gibson's Addition (P.B.
3, P. 61) at the intersection of the Westerly line of platted William Street
with the Southerly line of platted George Street; thence S 44 DEG. 45' 00"W
along the right-of-way of said William Street 7.82 feet; thence S 45 DEG. 15'
00"E, 60.44 feet to the right-of-way of the Central Railroad of Indiana and the
point of beginning; thence along said right-of-way with the arc of a curve to
the right having a radius of 536.01 feet an arc distance of 21.85 feet, the long
chord of said arc bears N 43 DEG.35'25"E a distance of 21.85 feet to the
right-of-way of the CSX Railroad;, thence along said CSX right-of-way the
following three courses: thence 44 DEG.45'00"E. 688.l5 feet; thence with the arc
of a curve to the left having a radius of 9582.30 feet an arc distance of 87.17
feet, the long chord of said arc bears N 44 DEG. 29' 22" E a distance of 87.17
feet; thence S 47 DEG. 15' 00"E, 42.01 feet; thence S 45 DEG. 15' 00" E, 1215.87
feet to the Ohio River boundary between the States of Indiana and Kentucky, as
the same was determined by the Supreme Court; thence along said Ohio River
boundary the following six courses: thence S 41 DEG. 29' 33"W, 59.97 feet;
thence S 46 DEG. 51' 31"W, 285.39 feet; thence S 39 DEG. 15' 30"W, 104.26 feet;
thence S 43 DEG. 48' 50"W, 304.84 feet; thence S 44 DEG. 01' 29"W, 213.22 feet;
thence S 45 DEG. 21' 32"W, 138.79 feet; thence leaving said river N 45 DEG. 15'
00"W, 1142.92 feet to the right-of-way of said Central Railroad; thence along
said Central Railroad right-of-way with a curve to the right having a radius of
536.01 feet an arc distance of 348.85 feet, the long chord of said arc bears N
23 DEG. 46' 09"E, 342.72 feet to the point of beginning.

Contains 32.074 acres.                                                leveeS3.lk
                                                                    docksite.rev

                                        3
<Page>

                                    EXHIBIT C
                             MEMORANDUM OF SUBLEASE

     THIS MEMORANDUM OF SUBLEASE, executed by the parties hereto on the _____
day of ___________________, 1996 to evidence a certain Ground Sublease of even
date herewith (the "Sublease"),

     WITNESSETH, that

     1.   LANDLORD. The name of the landlord ("Landlord") is the CITY OF
LAWRENCEBURG, INDIANA, an Indiana municipality with its offices at Lawrenceburg
Administration Building, 405 Main Street, Post Office Box 191, Lawrenceburg,
Indiana 47025.

     2.   TENANT. The name of the tenant ("Tenant") is INDIANA GAMING COMPANY,
L.P., c/o Argosy Gaming Company, 219 Piasa Street, Alton, Illinois 62002,
Attention: J. Thomas Long, Chairman and Chief Executive Officer

     3.   PREMISES. The Landlord hereby subleases to the Tenant and the Tenant
hereby subleases from the Landlord certain land more particularly described on
EXHIBIT A, attached hereto and made a part hereof (the "Land"), together with
all rights, privileges, easements and appurtenances thereto belonging or in any
way pertaining and the buildings and improvements now existing or hereafter
erected thereon, together with any additions thereto or alterations or
improvements of such buildings and improvements. The Land, together with all
buildings and improvements now existing or hereafter placed on the Land and all
rights, privileges, easements and appurtenances attaching to the Land, are
hereinafter referred to as the "Premises."

     4.   TERM AND OPTIONS. The term of the Sublease shall commence on the date
(the "Commencement Date") that Tenant begins operation of a riverboat gaming
facility on the Premises in Dearborn County, Indiana, pursuant to an "Owner's
license" (the "License") for such activity as defined in IND. CODE Section
4-33-2-15. As used herein, the phrase "Year 1" of the Term shall be deemed to
run from the first day of the calendar month following the Commencement Date
until the last day of the same month of the following calendar year, with "Year
2" of the Term commencing on the first day of the succeeding month. Each
subsequent "Year" of the Term shall then commence on the anniversary date of the
commencement of Year 2. The initial term (the "Initial Term") of this Sublease
shall commence on the Commencement Date and continue through Year 6. Thereafter,
the Term of this Sublease will be automatically extended for up to nine (9)
renewal term periods of five (5) years each (each such renewal period being
hereinafter referred to as a "Renewal Term"), unless Tenant, at least six (6)
months prior to the end of the Initial Term or the preceding Renewal Term, gives
notice to the Landlord of Tenant's intent not to renew; PROVIDED, HOWEVER, that
if Tenant gives such notice less than one (1) year before the end of the Initial
Term or such Renewal Term, then the Initial Term or such Renewal Term as the
case may be shall be automatically extended for a period of one (1) year from
the date of such notice.

     5.   MASTER LEASE. This Sublease is subject in all respects to the terms
and conditions of the Ground Lease dated December 28, 1995, between the Landlord
and the Lawrenceburg Conservancy District (the "Master Lease"), a memorandum of
which has been recorded

<Page>

contemporaneously herewith. Landlord covenants and agrees that it will observe
and perform each of the covenants and agreements contained in the Master Lease,
and shall abide and be bound by each of the terms and provisions, of the Master
Lease and shall take no action, or fail to take any action, that would
constitute a default by the lessee thereunder.

     This Memorandum of Sublease is executed solely for the purpose of giving
notice to third parties of the existence of the Sublease and certain terms
thereof. Reference is made to the Sublease which contains a full description of
the rights and duties of Landlord and Tenant and the terms, conditions,
provisions and limitations on the use and occupancy of the Premises. This
Memorandum of Sublease (or the description of certain such rights, duties,
conditions and limitations) shall in no way or under any circumstances affect
the terms and conditions of the Sublease or the interpretation of the rights and
duties of Landlord and Tenant thereunder.

     IN WITNESS WHEREOF, Landlord and Tenant have caused this Memorandum of
Sublease to be executed as of the date set forth above.

                                INDIANA GAMING COMPANY, L.P.

                                By:   The Indiana Gaming Company, its general
                                      partner

                                      By:
                                           ---------------------------------
                                           (signature)

                                           ---------------------------------
                                           (printed name and title)

                                CITY OF LAWRENCEBURG, INDIANA

                                By:
                                      --------------------------------------
                                      _____________, Mayor

                                        2
<Page>

STATE OF ___________________)
                            )  SS:
COUNTY OF __________________)

     Before me, the undersigned, a Notary Public in and for said County and
State, personally appeared ____________________________, the
____________________________ of The Indiana Gaming Company, as the general
partner of Indiana Gaming Company, L.P., who acknowledged the execution of the
foregoing instrument for and on behalf of said entity.

     Witness my hand and Notarial Seal this _____ day of ______________________,
1996.

                                           _____________________________________
                                           ______________________, Notary Public
                                           residing in___________________County,
                                           __________________

My Commission Expires:

__________________

STATE OF ___________________)
                            ) SS:
COUNTY OF __________________)

     Before me, the undersigned, a Notary Public in and for said County and
State, personally appeared ____________________________, the
____________________________ of The Indiana Gaming Company, as the general
partner of Indiana Gaming Company, L.P., who acknowledged the execution of the
foregoing instrument for and on behalf of said entity.

     Witness my hand and Notarial Seal this _____ day of ______________________,
1996.

                                           _____________________________________
                                           ______________________, Notary Public
                                           residing in___________________County,
                                           __________________

My Commission Expires:

______________________________

       This instrument prepared by Stephen W. Lee and Donald E. Williams,
                                Attorneys-at-Law
                               Barnes & Thornburg
      1313 Merchants Bank Building, 11 South Meridian Street, Indianapolis,
                                  Indiana 46204

<Page>

                                [Map of Premises]
                                    EXHIBIT A
                                LEGAL DESCRIPTION

Being all of Lots 1 and 2, and part of Lot 3 of Squire Watt's Estates (Slide
339) AND part of Section 14, Township 5 North, Range 1 West of the First
Principal Meridian located in the City of Lawrenceburg, Dearborn County,
Indiana, described as follows:

Commencing at a Southeasterly corner of Guard, Dunn and Gibson's Addition (P.B.
3, P. 61) at the intersection of the Westerly line of platted William Street
with the Southerly line of platted George Street; thence S 44 DEG. 45' 00"W
along the right-of-way of said William Street 7.82 feet; thence S 45 DEG. 15'
00"E, 66.44 feet to the right-of-way of the Central Railroad of Indiana and the
point of beginning; thence along said right-of-way with the arc of curve to the
right having a radius of 536.01 feet an arc distance of 21.85 feet, the long
chord of said arc bears N 43 DEG. 35' 25"E a distance of 21.85 feet to the
right-of-way of the CSX Railroad; thence along said CSX right-of-way the
following three courses: thence N 44 DEG. 45' 00"E, 688.15 feet; thence with the
arc of a curve to the left having a radius of 9582.30 feet an arc distance of
87.17 feet, the long chord of said arc bears N 44 DEG. 29' 22"E a distance of
87.17 feet; thence S 47 DEG. 15' 00"E, 42.01 feet; thence S 45 DEG. 15' 00"E,
1215.87 feet to the Ohio River boundary between the States of Indiana and
Kentucky, as the same was determined by the Supreme Court; thence along said
Ohio River boundary the following six courses: thence S 41 DEG. 29' 33"W, 59.97
feet; thence S 46 DEG. 51' 31"W, 298.39 feet; thence S 39 DEG. 15' 30"W, 104.26
feet; thence S 43 DEG. 48' 50"W, 304.84 feet; thence S 44 DEG. 01' 25"W, 213.22
feet; thence S 45 DEG. 21' 32"W, 138.79 feet; thence leaving said river N 45
DEG. 15' 00"W, 1142.92 feet to the right-of-way of said Central Railroad; thence
along said Central Railroad; right-of way with a curve to the right having a
radios of 536.01 feet an arc distance of 348.85 feet, the long chord of said arc
bears N 23 DEG. 46' 09"E, 342.72 feet to the point of beginning.

Contains 32.074 acres.                                                leveeS3.lk
                                                                    docksite.rev

<Page>

                               EXHIBIT D-INSURANCE

Indiana Gaming shall provide the following types and amounts of insurance:

          1.      Workers Compensation & Disability: Statutory Limits

          2.      Employer's Liability:

          (i)     Bodily Injury by Accident: $500,000 each accident

          (ii)    Bodily Injury by Disease: $500,000 policy limit

          (iii)   Bodily Injury by Disease: $500,000 each employee

          3.      Commercial General Liability (Occurrence Basis); Bodily
     injury, personal injury, property damage, contractual liability,
     products-completed operations.

          (i)     General Aggregate Limit (other than
                  Products/Completed Operations):          $2,000,000

          (ii)    Products/Completed Operations:           $1,000,000

          (iii)   Personal & Advertising Injury

                         Limit:                            $1,000,000

                         Each Occurrence Limit:            $1,000,000

                         Fire Damage (any one fire):       $50,000

                         Medical Expense Limit
                         (any one person)                  $5,000

          4.      Water Pollution Liability Coverage: $5,000,000

          5.      Joint Venture Coverage (if applicable):

                         Same as primary general liability.

          6.      All standard maritime endorsements, including but not limited
     to:

          (i)     Dock and Wharf Liability:                $1,000,000/occurrence

          (ii)    Passenger & Crew Liability               $1,000,000/occurrence

          (iii)   Collision Liability                      $1,000,000/occurrence

          (iv)    Wreckage removal:                        $1,000,000/occurrence

<Page>

          (v)     Jones Act and all
                  maritime statute:                        $1,000,000/occurrence

          7.      Railroad Protective Liability (if applicable):

                         $1,000,000/occurrence, $2,000,0000/aggregate

          8.      Comprehensive Auto Liability

                         (single limit)                    $1,000,000
                         (owned, hired and non-owned)         each accident
                         Bodily injury and property damage

          9.      Primary Umbrella Excess Liability:

                         $75,000,000 each occurrence and aggregate
                         Self Insured Retention: $25,000

          10.     Property Insurance: Indiana Gaming shall purchase and maintain
     a combination Installation/Builder's Risk Insurance to the full insurable
     value to the initial contract cost and any subsequent modifications thereto
     on an all risks policy form against their perils of fire and extended
     coverage, theft, vandalism, malicious mischief collapse, false work,
     testing, temporary buildings and debris removal including demolition work
     occasioned by enforcement of any applicable legal requirements. This
     property insurance shall cover work stored off site as well as any work in
     transit. Indiana Gaming shall be responsible for the satisfaction of any
     deductible level it selects. This insurance is not intended to cover the
     tools, equipment and other such property of Indiana Gaming or its
     subcontractors in performing any work which is normally covered by such
     person's own property insurance which are not incorporated in the Premises.
     The risk of loss as to all such properly shall be borne by those parties,
     and they shall carry such insurance on such property as they shall
     determine.

          11.     Liability Insurance: Indiana Gaming shall purchase and
     maintain such commercial general liability and other insurance as is
     appropriate for the Premises and as will protect Indiana Gaming and City
     and their employees, officers, or agents from (i) claims for damages
     because of bodily injury occupational sickness or disease, or death of
     Indiana Gaming employees; (ii) claims for damages because of bodily injury,
     sickness or disease, or death of any covered person other than Indiana
     Gaming employees; (iii) claims for damages insured by personal injury
     liability coverage which are sustained by any person as a result of an
     offense directly or indirectly related to the employment of such person by
     Indiana Gaming; (iv) claims for damages, other than any work itself,
     because of physical injury to or destruction of tangible properly wherever
     located, including loss of use resulting therefrom; and (v) claims for
     damages because of bodily injury or death of any person or property damage
     arising out of the ownership maintenance or use of any motor vehicle by
     Indiana Gaming in connection with furnishing any of any work.

                                        2
<Page>

     The commercial General Liability Insurance shall include coverage of (i)
Premises and operations, (ii) Contractual liability as applicable to any
indemnification and hold harmless agreements in the Lease, (iii) Products and
Completed Operations, (iv) Broadform Property Damages, including completed
operation, and (v) Independent contractors. Such insurance shall specifically
include coverage for property damage from explosion, collapse, and blasting or
explosion, collapse of structures or structural injury due to grading of land,
excavation, filling, back filling, tunneling, pile driving, caisson work,
moving, shoring, underpinning, raising of or demotion of any structure, or
removal or rebuilding of any structural support of a building or stricture. Such
insurance shall further include coverage for damage to wire, conduits, pipes,
mains, sewers, or other similar apparatus encountered below the surface of the
ground when such damages is caused by an occurrence arising out of the
performance of any work, performed by Indiana Gaming, any contractor or by any
subcontractor or anyone directly or indirectly employed by either.

     the aforementioned insurance shall be subject to each of the following
terms and conditions:

          (i)   Indiana Gaming shall be responsible for paying all deductible
amounts.

          (ii)  Before commencing any work Indiana Gaming shall submit a
"Certificate of Insurance" indicating the above necessary coverages as well as
naming City, its employees and representatives as "Additional Insureds" on all
policies except Workers' Compensation to City for review and approval. Such
insurance shall be carried with financially responsible insurance companies
authorized to do business in the State of Indiana. Such coverages shall be kept
in force at all times during the term of this Lease. Indiana Gaming insurer(s)
shall provide Indiana Gaming and City with Certified Mail sixty (60) days prior
written notice in the event of cancellation, non-renewal or material change in
the policies.

          (iii) The Commercial General Liability insurance required by herein
shall include contractual liability insurance applicable to Indiana Gaming
indemnity obligations.

          (iv)  If City has any objections to the coverage afforded by or other
provisions of the insurance required to be purchased and maintained by Indiana
Gaming in accordance with this Exhibit, on the basis of its not compiling with
this Exhibit, City will notify Indiana Gaming in writing thereof within ten (10)
days of the date such certificates are delivered to City. Indiana Gaming shall
provide to City such additional information in response to insurance provided by
Indiana Gaming as City may reasonably request. Failure by City to give any such
notice of objection within the time provided shall constitute acceptance of such
insurance purchased by Indiana Gaming. With the prior approval of City, Indiana
Gaming may substitute different types or amounts of coverage of those specified
as long as the total amount of required protection is not reduced.

          (v)   If Indiana Gaming finds it necessary to occupy or use a portion
or portions of the Premises prior to substantial completion of all the work,
such use or occupancy may be accomplished; provided that no such use or
occupancy shall commence before the insurers providing the property insurance
have acknowledged notice thereof and in writing effected the

                                        3
<Page>

changes in coverage necessitated thereby. The insurers providing the property
insurance shall consent by endorsement on the policy or policies, but the
property insurance shall not be cancelled or lapse on account of any such
partial use or occupancy.

          (vi)  Nothing in this Exhibit shall operate or be construed as
limiting the amount of liability of Indiana Gaming to the above enumerated
amounts.

          (vii) The insurance required by this Exhibit shall be written for not
less than the limits of liability and coverages as provided herein or as
required by applicable law, whichever is greater.

                                        4

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