Document:

[Execution Copy]

 

EXHIBIT 10.12

 

MEMBERSHIP INTERESTS PURCHASE AGREEMENT

 

By and Between

 

GAMECO HOLDINGS, INC., as
Seller,

 

AND

 

JACOBS ENTERTAINMENT, INC.,
as Buyer,

 

 

February 22, 2005

 

 

MEMBERSHIP INTERESTS PURCHASE AGREEMENT

 

THIS
MEMBERSHIP INTERESTS PURCHASE AGREEMENT (this “Agreement”),
dated February 22, 2005 (“Agreement Date”), is entered into by and between GAMECO HOLDINGS, INC., a Delaware
corporation (“Seller”), and JACOBS
ENTERTAINMENT, INC., a
Delaware corporation (“Buyer”). 
Capitalized terms not defined in context are defined in Section 13.15.

 

RECITALS

 

A.                                   Seller
is the sole member of each the following Louisiana limited liability companies:
(i) JALOU BREAUX BRIDGE, LLC (“Breaux
Bridge”); (ii) JALOU EUNICE, LLC (“Eunice”);
and (iii) JALOU OF JEFFERSON, LLC
(“Jefferson”)(Breaux Bridge, Eunice and Jefferson are collectively, the “Truck
Stops” and sometimes individually, each a “Truck Stop”).

 

B.                                     Breaux
Bridge operates a truck stop, convenience store, restaurant, fueling operation
and video draw poker gaming parlor located at 1869 Mills Highway, Breaux
Bridge, St. Martin Parish, Louisiana.

 

C.                                     Eunice
operates a truck stop, convenience store, restaurant, fueling operation and
video draw poker gaming parlor located at 3747 Highway 190, Eunice, St. Landry
Parish, Louisiana.

 

D.                                    Jefferson
operates a truck stop, convenience store, restaurant, fueling operation and
video draw poker gaming parlor located at 7340 Westbank Expressway, Marrero,
Jefferson Parish, Louisiana.

 

E.                                      Seller
desires to sell to Buyer, and Buyer desires to purchase from Seller, upon the
terms and subject to the conditions of this Agreement, all of the membership
interests of each of the Truck Stops (collectively, the “Membership Interests”).

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual
agreements, terms, conditions, covenants, representations and warranties
hereinafter set forth, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:

 

Article 1.

PURCHASE AND SALE OF MEMBERSHIP INTERESTS

 

1.1.                              Purchase and Sale of Membership Interests.  At the Closing and effective as of the
Closing Date, (a) Seller will sell, transfer and assign, free and clear of all
Liens or Claims whatsoever, all of the Membership Interests to Buyer or its
designee or nominee, and (b) Buyer will purchase the Membership Interests from
Seller and deliver to Seller the Purchase Price (as defined in Section 1.2).

 

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1.2.                              Purchase Price.

 

1.2.1.                     The purchase price for the
Membership Interests (the “Purchase Price”) shall be Twenty-Two Million Five
Hundred Thousand and no/100 Dollars ($ 22,500,000.00).

 

1.2.2.                     The Purchase Price shall be paid
to the Seller by wire transfer of immediately available funds on the Closing
Date.

 

1.3.                              Transfer Taxes.  Buyer and Seller shall share equally any and
all transfer or similar Taxes (but excluding all withholding taxes computed on
the basis of net income) – (“Transfer Taxes”) imposed upon either party hereto
as a result of the transactions contemplated hereby.  To the extent any exemptions from such
Transfer Taxes are available, Buyer and Seller shall cooperate to prepare any
certificates or other documents necessary to claim such exemptions.

 

Article 2.

GAMING RIGHTS OPTION

 

2.1.                              Grant of Option.                                                        As additional consideration for
the Buyer’s purchase of the Membership Interests hereunder, to be effective at
the Closing hereunder and contingent upon the same, Seller, Jeffrey P. Jacobs
and Richard E. Jacobs (collectively, the “Optionors”) do hereby grant to Buyer
the right, but not the obligation, to acquire any and all interests any of the
Optionors may own, whether now owned or hereafter acquired and whether held
jointly or severally, in any Gaming Assets or in any Entity that owns any
Gaming Assets (the “Option”) during the Option Term.  The parties acknowledge that this Agreement
is intended to and does grant multiple options, one for each Gaming Asset
covered by the Option during the Option Term and that the exercise of the
Option with respect to any one Gaming Asset shall not preclude the exercise of
the Option at a later time with respect to any other Gaming Assets that are or
may become subject to the Option. 
Notwithstanding the foregoing, no Passive Gaming Investment held by any
Optionor at any time shall be subject to the Option or the covenants described
in Section 2.4 below.

 

2.2.                              Option Term.                       The Option may not be exercised
prior to the eighteenth (18th) monthly anniversary of the Notes Closing Date,
and the Option shall expire immediately upon the payment in full of the Notes (“Option
Term”).  The Option shall be exercised by
delivering written notice (“Option Notice”) of the Buyer’s intent to exercise
the Option pursuant to the Notice provisions of Section 13.4 below, and
identifying the specific Gaming Asset(s) to be purchased.  The Option may not be rescinded or canceled
without the prior written consent of the majority of the holders of the
principal balance then outstanding of the Notes.

 

2.3.                              Purchase Price and Closing.                                    The purchase price for any
Gaming Assets purchased pursuant to the exercise of the Option (“Option
Purchase Price”) shall be equal to the applicable Optionor’s actual cost of
such Gaming Assets.  Absent manifest
error, the determination of the Option Purchase Price shall be the actual cost
basis of such Gaming Assets as reflected in the books and records of the
applicable Optionor.  The Closing of any
purchase

 

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under the Option shall take place at the
Buyer’s principal place of business and shall occur not later then ninety (90)
days following the applicable Optionor’s receipt of the Option Notice.  The Option Purchase Price shall be paid in
cash, or immediately available funds, at such closing.  The parties shall execute a separate purchase
agreement in form and substance substantially similar to this Agreement for the
purchase of any Gaming Assets following the exercise of the Option, with such
additions or modifications as shall be necessary to convey the particular
Gaming Assets that are the subject of the Option.

 

2.4.                              Additional Covenants.

 

2.4.1.                     In addition to the foregoing and
not in lieu thereof, as additional consideration for the Buyer’s purchase of
the Membership Interests hereunder, each of the Optionors covenants and agrees
that commencing on and after the Note Closing Date and continuing throughout
the Option Term, each Optionor will hold any ownership interests in any Gaming
Assets either through the Buyer or a wholly-owned subsidiary of the Buyer; excluding, only, any Gaming Assets owned
by an Optionor on the Note Closing Date,

 

2.4.2.                     Notwithstanding the foregoing
Section 2.4.1 and as an exception thereto, any Optionor may purchase ownership
interests in or the assets of truck stops located within the State of
Louisiana, whether or not such ownership interests or assets are held in the
Buyer or a wholly-owned subsidiary thereof, provided,
however, each Optionor, as applicable, agrees that such ownership
interests or assets after acquisition of the same shall be Gaming Assets for
all purposes hereunder and shall be subject to the rights of the Buyer under
the Option.  Each Optionor, as
applicable, agrees to execute such additional documents as may be necessary to
comply with the terms and conditions of this Section 2.4.2.

 

2.5.                              Right of Sale.  Nothing contained in this Article 2,
including but not limited to the grant of the Option, is intended to, nor shall
it be construed as, restricting any Optionor’s right to sell any Gaming Assets
to a third party prior to the Buyer’s exercise of the Option with respect to
those particular Gaming Assets.

 

2.6.                              Acknowledgment of Consideration.  Jeffrey P. Jacobs and Richard E. Jacobs, individually,
acknowledge and agree that the payment of the Purchase Price under this
Agreement by Buyer to Seller has separate direct and indirect economic benefit
to each of them and is sufficient consideration for their covenants and
agreements under this Article 2.

 

2.7.                              Noteholders.  The rights of the Buyer and the obligations
of the Optionors set forth in this Article 2 are for the benefit of the holders
of the Notes and no such right or obligation may be amended, waived, terminated
or otherwise modified without the prior written consent of the holders of a
majority of the outstanding principal amount of the Notes.

 

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Article 3.

CLOSING AND DELIVERIES

 

3.1.                              General.  The closing of the transactions contemplated
herein (other than the transactions contemplated by Article 2)(the “Closing”)
shall take place at 10:00 a.m. on or before March 15, 2005, at the offices of
Hahn Loeser & Parks, LLP, 3300 BP Tower, 200 Public Square, Cleveland, Ohio
44114-2301, or such other time, date and place as the parties may agree.  The effective time of closing shall be 12:01
a.m. (the “Effective Time”) on the date of the Closing (the “Closing Date”).

 

3.2.                              Seller’s Closing Deliveries. 
On the Closing Date, Seller shall deliver, or caused to be delivered, to
Buyer the following items:

 

3.2.1.                     Membership Interests.  An instrument of assignment, in form and
substance reasonably acceptable to the Buyer and Buyer’s legal counsel,
conveying the Membership Interests to Buyer, together with the certificates of
membership interests issued by each of the Truck Stops to the Seller;

 

3.2.2.                     Receipt.  A receipt evidencing receipt by Seller of the
Purchase Price (the “Receipt”);

 

3.2.3.                     Limited Liability Company
Records.  All of the original limited liability company
records, including company record books, etc., for each of the Truck Stops;

 

3.2.4.                     Officer’s Certificate.  A certificate of an officer of Seller to the
effect that the conditions set forth in Sections 9.1 and 9.2 have
been satisfied;

 

3.2.5.                     Good Standing Certificates.  A good standing/full force and effect
certificate, as applicable, dated not more than thirty (30) days prior to the
Closing Date, for the Seller and each of the Truck Stops;

 

3.2.6.                     Secretary’s Incumbency
Certificate.  A certificate of the Secretary for the Seller
certifying (a) the current officers of the Seller and each of the Truck Stops,
(b) a current copy of the Seller’s Articles of Incorporation and the Articles
of Organization for each of the Truck Stops, (c) a current copy of the Seller’s
By-laws and the Operating Agreement of each of the Truck Stops, and (d) a copy
of the Seller’s resolution authorizing the sale contemplated by this Agreement;
and

 

3.2.7.                     Updates to Schedules.  An update to each of the Schedules attached
to this Agreement identifying any changes between the Agreement Date and the
Closing Date.

 

3.3.                              Buyer’s Closing Deliveries. 
On the Closing Date, Buyer shall deliver, or cause to be delivered, to
Seller the following items:

 

3.3.1.                     Wire Transfer.  The Purchase Price, paid by wire transfer in
immediately available funds to an account specified in writing by Seller prior
to the Closing;

 

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3.3.2.                     Officer’s Certificate.  A certificate of an officer of Buyer to the
effect that the conditions set forth in Sections 10.1 and 10.2
have been satisfied;

 

3.3.3.                     Good Standing Certificate.  A good standing certificate, dated not more
than thirty (30) days prior to the Closing Date, for the Buyer;

 

3.3.4.                     Secretary’s Incumbency
Certificate.  A certificate of the Secretary for the Buyer
certifying (a) the current officers of the Buyer, (b) a copy of the Buyer’s
Certificate of Incorporation and By-laws and (c) a copy of the Buyer’s
resolution authorizing the sale contemplated by this Agreement.

 

Article 4.

DUE DILIGENCE

 

4.1.                              Due Diligence Period.  Beginning on the Agreement Date and continuing
thereafter until the Closing Date (“Due Diligence Period”), Buyer shall have
the right to perform the following due diligence pursuant to the terms and
conditions hereof:

 

4.2.                              General Testing and Inspections.  Buyer shall have the right, during the Due
Diligence Period, to conduct such engineering, environmental, general business
and feasibility studies, audits, test, reviews and/or surveys of any or all of
the Truck Stops and their respective assets, liabilities, operations (including
gaming operations and records), financial performance and affairs, as the Buyer
deems necessary, including soil tests, borings, drainage tests and similar
tests on any land or improvements owned or leased by any of the Truck Stops,
and audits and reviews of any of the financial and business records,
operations, documents and instruments of the Seller pertaining to any of the
Truck Stops or their operations.  Such
studies shall be conducted by the Buyer and its agents at the Buyer’s sole cost
and expense.  Subject to reasonable
advance notice, the Seller and each of the Truck Stops agrees to allow Buyer
and its agents access to all assets, records, documents and instruments of the
Truck Stops to conduct such studies and audits, provided such access shall not
unreasonably interfere with the activities of the Seller or any of the Truck
Stops.  Buyer shall, and does hereby,
save, defend, indemnify and hold the Seller and each Truck Stop harmless from
and against all claims, lawsuits, judgments, losses, liabilities or expenses of
any kind or nature which may be asserted against or incurred by the Seller or
any of the Truck Stops as the result of the Buyer’s or its agents’ actions and
activities conducted pursuant to this Section 4.2. The Buyer shall keep
the results of all due diligence activities confidential unless specifically
directed or required to disclose the same under any federal, state or local
law, rule or regulation or upon the order of any court or governmental
agency.  Notwithstanding any other
provisions of this Agreement or any documents contemplated hereby to the
contrary, the obligation of the Buyer to defend, indemnify and hold harmless
the Seller and each of the Truck Stops under this Section 4.2 shall
survive the execution and delivery of this Agreement and the consummation of
the transactions contemplated hereby or the termination of this Agreement.

 

4.3. Title Insurance. 
Prior to the Closing, Buyer may cause to have delivered to Buyer a
commitment from a title insurance company reasonably acceptable to Buyer to
issue as of the Closing Date for any real property owned or leased by any of
the Truck Stops, in the customary form prescribed for use in the State of
Louisiana (collectively, the “Title Policy”). 
Seller shall

 

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deliver any information as reasonably may be
required by Buyer’s title insurance company under the requirements section of
the title insurance commitment or otherwise in connection with the issuance of
Buyer’s title insurance policy.  Seller
shall provide an affidavit of title or such other information as Buyer’s title
insurance company may reasonably require in order for the title insurance
company to delete the standard exceptions and to insure over the “gap” (i.e.,
the period of time between the effective date of the title insurance company’s
last checkdown of title and the Closing Date) and to cause the title insurance
company to delete all standard exceptions from the final title insurance
policy.

 

4.4.                              Financial Statements.  As of the Agreement Date, Seller has
delivered, or caused to be delivered, to the Buyer a Statement of Income and
Balance Sheet for each Truck Stop for the full calendar year ending on December
31, 2004 (collectively, the “Financial Statements”), in such detail as may be
reasonably requested by the Buyer.

 

Article 5.

SELLER’S REPRESENTATIONS AND WARRANTIES

 

Seller
represents and warrants to Buyer as follows:

 

5.1.                              Organization and Authorization.

 

5.1.1.                     Seller is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware.

 

5.1.2.                     Each of the Truck Stops is a
limited liability company duly organized, validly existing and in full force
and effect under the laws of the State of Louisiana.  None of the Truck Stops has any subsidiaries.

 

5.2.                              Validity of Agreements.  Seller has the power and authority to enter
into this Agreement and all other agreements and instruments executed and
delivered or to be executed and delivered under this Agreement (the “Transaction
Documents”) to which Seller is a party. 
The execution, delivery and performance by Seller of this Agreement, the
Transaction Documents and the other documents and certificates contemplated
therein have been duly authorized by all necessary corporate action on the part
of Seller.  This Agreement is, and when
executed and delivered at the Closing, the Transaction Documents to which
Seller is a party and all other documents and certificates contemplated therein
will be, the legal, valid and binding obligations of Seller, enforceable
against Seller in accordance with their terms.

 

5.3.                              Non-Contravention.  The execution and delivery by Seller of this
Agreement, the Transaction Documents to which Seller is a party and all other
documents and certificates contemplated therein and the consummation and
performance by Seller of the transactions contemplated by this Agreement and
the Transaction Documents will not (i) violate any provision of the Articles of
Incorporation or the By-laws of Seller or Articles of Organization or Operating
Agreement of any of the Truck Stops, (ii) violate or result in any default
under, or the acceleration of (whether by the giving of notice or the passage
of time or both), any obligation under any contract, note, bond, mortgage,
indenture, or lease to which Seller or any of the Truck

 

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Stops is a party or by which Seller or any
Truck Stop is bound that would, in any such event, be material, or (iii)
violate any constitutional provision, statue, rule, law, regulation, award,
order, ordinance, judgment, decree, citation, policy, standard, interpretation,
writ or injunction of any Governmental Body (collectively, “Law”).

 

5.4.                              Capitalization.  The Membership Interests represent the only
authorized, issued and outstanding equity interests of each Truck Stop.  The Membership Interests are duly and validly
issued and outstanding and are fully paid and nonassessable.  The Membership Interests have not been issued
in violation of, and are not subject to, and there are no, outstanding options
or other conversion or exchange rights relating to the Membership
Interests.  There are no authorized or
outstanding options under which the Seller or any of the Truck Stops may be obligated to issue
or sell any equity interests of any Truck Stop. 
Except as identified on Schedule 5.4, there are no agreements,
commitments, contacts or rights of first refusal relating to the issuance, sale
or transfer of any equity interest of or profit participation in any of the
Truck Stops.  At the Closing, Buyer shall
receive the Membership Interests free and clear of all Liens and Claims
whatsoever.  As of the Closing, no Truck
Stop shall be subject to any obligation (contingent or otherwise) to repurchase
or otherwise acquire or retire any equity interests (including Membership
Interests).  Seller has full legal and
beneficial ownership of the Membership Interests.  The Membership Interests have not been
registered under any Securities Laws with any federal, state or local
Governmental Body

 

5.5.                              Title to Truck Stop Property.  As of the Agreement Date, except as disclosed
on Schedule 5.5, each Truck Stop has good and valid title to, or a valid
and enforceable leasehold interest in, all of its properties and assets,
tangible or intangible, as reflected in each Truck Stop’s Financial Statements,
and the schedules attached thereto, and the same are free and clear of all
Liens and Claims except (a) Liens to be released at or prior to Closing, (b)
such Liens that are disclosed by the Title Policy (including real property
taxes that are a lien but not yet due and owing) for each Truck Stop and the
records of the Secretary of State of Louisiana and (c) those Liens and Claims
identified on Schedule 5.5.

 

5.6.                               Tax Matters. Except as set forth on Schedule 5.6,
Seller and each Truck Stop, as applicable, has timely filed or will timely
file, in the manner provided by Law, all Tax Returns for periods prior to and
including the Closing Date which are required to be filed with respect of the
income or operations of Seller. All such Tax Returns are complete and correct
in all material respects and have been prepared in material compliance with all
applicable laws and regulations. Seller has paid or will pay all Taxes owed for
the taxable periods covered by such Tax Returns (whether or not shown thereon)
in the manner provided by Law. None of the assets of any Truck Stop is subject
to any Liens for any Taxes, and to the Seller’s actual knowledge there is no
basis upon which such a Lien could be asserted.

 

5.7.                              Environmental Liability.  To the Seller’s actual knowledge, there has
been no release, threatened release, spill, leak, discharge or emission of any
Hazardous Materials to the air, surface water, groundwater or soil at any of
the Truck Stops requiring corrective action under any applicable Environmental
Laws.  To the Seller’s actual knowledge,
there has been no material release, threatened release, spill, leak, discharge
or emission of any Hazardous Materials to the air, surface water, groundwater
or soil at any of the Truck Stops that is a violation of any applicable
Environmental Laws.  “Hazardous Materials”
means any hazardous or toxic substance

 

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or waste or any contaminant or pollutant
regulated or otherwise creating liability under any Environmental Laws,
including, without limitation, “hazardous substances” as defined by the
Comprehensive Environmental Response Compensation and Liability Act, as
amended, “toxic substance” as defined by the Toxic Substance Control Act, as
amended, “hazardous wastes” as defined by the Resource Conservation and
Recovery Act, as amended, “hazardous materials” as defined by the Hazardous
Materials Transportation Act, as amended, thermal discharges, radioactive
substances, PCBs, natural gas, petroleum products or byproducts and crude
oil.  “Environmental Laws” means all Laws
relating to pollution, worker health and worker safety, or the environment, and
all other Laws relating to emissions, discharges, releases or threatened
releases of Hazardous Materials into the environment or otherwise relating to
the generation, distribution, use, treatment, storage, disposal, transport or
handling of Hazardous Materials.  Each of
the Truck Stops is and has been in material compliance with all Environmental
Laws, provided any noncompliance has not had and is not likely to have a
Material Adverse Effect on such respective Truck Stop or its operations.  Buyer acknowledges that each of the Truck
Stops contains a fueling operation for the sale and dispersal to the general
public of gas and diesel fuels.  Neither
the Seller nor any Truck Stop has received any written notice, report or other
information regarding any actual or alleged violation of Environmental Laws
relating to any Truck Stop.

 

5.8.                              Jefferson Construction Costs.  Seller agrees that any costs or expenses
necessary to complete the construction of the Truck Stop at Jefferson in accord
with those certain plans and specifications of Perrin & Carter, Inc., dated
October 29, 2003 (“Plans and Specifications”), shall be and remain the costs
and expenses of the Seller even if such costs and expenses are incurred after
the Closing Date.  Seller represents that
following the transactions contemplated in this Agreement it shall retain the
financial ability to pay all of the costs and expenses of completing the
Jefferson Truck Stop pursuant to the Plans and Specifications.

 

5.9.                              Seller Inter-company Loans.  Notwithstanding the contents of the Financial
Statements or any other language to contrary contained in this Agreement, any
loans, notes payable or other debt obligations between the Seller and any of
the Truck Stops or between the Truck Stops and any other subsidiaries of the Seller
(collectively, the “Seller Inter-company Loans”) shall be retired by the Seller
from the proceeds of the Purchase Price and shall not be a part of the transfer
of the Membership Interests at Closing. 
In no event shall the Buyer, nor any of its subsidiaries, including, but
not limited to, the Truck Stops following the Closing, have any liability for
any of the Seller Inter-company Loans.

 

5.10.                        Consents, etc. 
Except as identified on Schedule 5.10 or the matters described in
Section 6, any registration, declaration or filing with, or consent, approval,
license, permit or other authorization or order by, any governmental or
regulatory authority, domestic or foreign, that is required in connection with
the valid execution, delivery, acceptance and performance by the Seller and
each of the Truck Stops under this Agreement or the consummation by the Seller
and each of the Truck Stops of any of the transactions contemplated hereby has
been or will be completed, made or obtained on or before the Closing Date.

 

5.11.                        Litigation, etc.  Except as set forth on Schedule 5.11,
to the Seller’s actual knowledge there are no Claims against the Seller or any
of the Truck Stops or any of their assets, or pending or threatened by the
Seller or any of the Truck Stops against any third party, at law or

 

8

 

in equity, or before or by any Governmental
Body.  To the Seller’s actual knowledge,
no Truck Stop is subject to any judgment, order or decree of any court or other
Governmental Body (excepting various licensing necessary for its customary and
on-going operations).

 

5.12.                        Brokers’ Fees.  No investment banker, broker, finder or other
intermediary has been retained by or is authorized to act on behalf of Seller
who might be entitled to any fee or commission from Buyer or the Company upon
consummation of the transactions contemplated by this Agreement.

 

5.13.                        No Adverse Change.  From the Agreement Date to the Closing Date,
there shall be no adverse change in the operating results, assets, liabilities,
operations, prospects, employee relations or customer or supplier relations of
any of the Truck Stops which has had or could reasonably be expected to have a
Material Adverse Effect.

 

5.14.                        Conduct Pending Closing.  From the Agreement Date until the Closing
Date, Seller shall use commercially reasonable efforts to cause each of the
Truck Stops to be operated and to carry on its respective businesses in the
ordinary course consistent with past practice.

 

Article 6.

BUYER’S REPRESENTATIONS AND WARRANTIES

 

Buyer hereby
represents and warrants to Seller as follows:

 

6.1.                              Organization and Power. Buyer is a corporation duly
organized, validly existing and in good standing under the laws of the State of
Delaware.

 

6.2.                              Authorization and Validity of Agreements. 
The
execution, delivery and performance by Buyer of this Agreement, the Transaction
Documents and the other documents and certificates contemplated therein has
been duly authorized by all necessary corporate action on the part of Buyer.  Buyer has the power and authority to enter
into this Agreement, the Transaction Documents and the other documents and
certificates contemplated to be executed herein and to consummate the
transactions contemplated thereby.  This
Agreement and the Transaction Documents and the other documents and
certificates contemplated herein constitute the legal, valid and binding
obligations of Buyer, enforceable against it in accordance with their
respective terms.

 

6.3.                              Non-Contravention.  The execution and delivery by Buyer of this
Agreement, the Transaction Documents and the other documents and certificates
contemplated therein and the consummation and performance by Buyer of the
transactions contemplated herein will not (i) violate any provision of the
Articles of Incorporation or By-laws of Buyer, (ii) violate, or be in conflict
with any provision of, or constitute a default under, or result in the
termination of, or accelerate the performance required by, or cause the
acceleration of the maturity of any liability or other obligation to which
Buyer is a party, or (iii) violate any Law.

 

6.4.                              Brokers’ Fees.  No investment banker, broker, finder or other
intermediary has been retained by or is authorized to act on behalf of Buyer
who might be entitled to any fee or commission from Seller upon consummation of
the transactions contemplated by this Agreement.

 

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6.5.                              Non-Registration.  The Buyer understands and agrees that the
Membership Interests are not registered under the Securities Act of 1933, as
amended (the “Securities Act”), nor the securities laws of any state, and,
accordingly, the Membership Interests may not be offered, sold, pledged,
hypothecated or otherwise transferred or disposed of in the absence of registration
or the availability of an exemption from registration under the Securities Act
and any applicable state securities laws.

 

6.6.                              Devices.                                                   The Buyer acknowledges that all
Devices operated at any of the Truck Stops are owned and operated therein by a
third-party, licensed device owner, to-wit; Southern Trading Corporation, a
Louisiana corporation.  All such Devices
are operated pursuant to Device Placement Agreements between each of the Truck
Stops and Southern Trading Corporation, copies of which have been provided to
the Buyer.

 

6.7.                              Licensure.                                     The Buyer acknowledges that the
activities of the video draw poker gaming parlors and the alcohol, tobacco and
lottery sales, as applicable, conducted at each of the Truck Stops are subject
to licensing and regulation by various federal, state and local Governmental
Bodies.  The Buyer further acknowledges
that appropriate notifications to the Louisiana State gaming authorities of the
consummation of the transactions contemplated by this Agreement will be
required promptly following the Closing hereunder.

 

Article 7.

SURVIVAL

 

The
representations and warranties contained in Sections 5.1 through 5.9 and
Sections 6.1 through 6.7, inclusive, shall survive the execution and
delivery of this Agreement and consummation of the transactions provided for in
this Agreement without limitation as to time. 
The representations and warranties contained in Sections 5.10 through
5.14 shall survive the Closing hereunder and shall continue in effect for a
period of one (1) year from and after the Closing Date.

 

Article 8.

MUTUAL COVENANTS AND AGREEMENTS

 

8.1.                              Expenses.  Except as otherwise specifically provided in
this Agreement and the Transaction Documents, each party shall bear its own
expenses in connection with and in performance of this Agreement and the
Transaction Documents.  Buyer shall be
solely responsible for all of its costs incurred in its due diligence
activities, including, but not limited to, the costs of any surveys,
environmental site assessment studies, title policies and title commitments and
any and all costs, expenses or fees relating to its financing of the
transactions contemplated in this Agreement.

 

8.2.                              Cooperation.  Each party shall cause every Person that is a
shareholder, director, officer or employee of any party hereto or any of the
Truck Stops to use all commercially reasonable efforts to assist in the
satisfaction of such party’s obligations hereunder and in the consummation of
the transactions contemplated herein.

 

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Article 9.

CONDITIONS PRECEDENT TO THE OBLIGATION OF BUYER TO CLOSE

 

The obligation
of Buyer to consummate the transactions contemplated by this Agreement is
subject to the fulfillment, prior to or on the Closing Date, of each of the
following conditions precedent, any one or more of which may be waived by Buyer
in writing:

 

9.1.                              Compliance with Covenants.  Seller shall have performed and complied in
all material respects with all covenants, obligations and agreements required
by this Agreement to be performed or complied with by it at or prior to the
Closing Date.

 

9.2.                              Representation and Warranties.  The representations and warranties of Seller
contained in this Agreement shall be true and correct in all material respects
on the Closing Date as if made on such date, except for any changes permitted
by the terms of this Agreement.

 

9.3.                              Actions of Seller at Closing.  At the Closing and unless otherwise waived by
Buyer, Seller shall have delivered to Buyer those deliveries set forth in Section
3.2.

 

9.4.                              Financing.  Buyer shall have obtained the financing necessary to
consummate the transaction.

 

9.5.                              No Material Adverse Effect.  From and after the Agreement Date, there
shall not have been any event or change in the Seller or any of the Truck Stops
which has had a Material Adverse Effect.

 

9.6.                              Financial Statements.  Excepting only normal recurring
changes related to the usual operations of the Truck Stops, none of the Truck
Stops shall have suffered or incurred a material change in its Financial Statements
between December 31, 2004 and the Closing Date.

 

Article 10.

CONDITIONS PRECEDENT TO THE OBLIGATION OF SELLER TO CLOSE

 

The obligation
of Seller to consummate the transactions contemplated by this Agreement is
subject to the fulfillment, prior to or on the Closing Date, of each of the
following conditions precedent, any one or more of which may be waived by
Seller in writing:

 

10.1.                        Compliance with Covenants.  Buyer shall have performed and complied in
all material respects with all covenants, obligations and agreements required
by this Agreement to be performed or complied with by it at or prior to the
Closing Date.

 

10.2.                        Representation and Warranties.  The representations and warranties of Buyer
contained in this Agreement shall be true and correct in all material respects
on the Closing Date as if made on such date, except for any changes expressly
permitted by the terms of this Agreement.

 

10.3.                        Actions of Buyer at Closing.  At the Closing and unless otherwise waived by
Seller, Buyer shall have delivered to Seller those deliveries set forth in Section
3.3.

 

11

 

Article 11.

TERMINATION OF AGREEMENT

 

11.1.                        Termination of Agreement.  This Agreement may be terminated at any time
prior to the Closing Date only as follows:

 

11.1.1.               By Mutual Agreement.  If Seller and Buyer both agree to terminate
the Agreement.

 

11.1.2.               By Buyer.  Buyer may terminate this Agreement at anytime
prior to the Closing for any reason or no reason in the sole discretion of the
Buyer.

 

11.1.3.               By Seller.  Seller may terminate this Agreement by giving
written notice to Buyer if Buyer has materially breached any of its covenants contained in this
Agreement or if there is any inaccuracy in any of the representations or
warranties made by Buyer, if Seller has previously notified Buyer in writing of
such breach or inaccuracy and the breach or inaccuracy has continued without
cure for a period of fifteen (15) days after such notice.

 

11.2.                        Effect of Termination.  In the event of a termination or breach
(prior to the consummation of the Closing) by either party, this Agreement
shall thereafter be null and void and of no further force or effect and each
party shall be solely responsible for any and all costs or expenses it has
incurred hereunder.

 

Article 12.

INDEMNIFICATION

 

12.1.                        Seller’s Agreement to Indemnify.

 

12.1.1.               Buyer Claims.  Subject to the terms and conditions of this Article
12, Seller shall indemnify, defend and hold harmless Buyer or any of its
officers, directors, shareholders, employees or agents (“Buyer Indemnitees”)
from and against any and all Claims, causes of actions, losses, damages
(compensatory, punitive or other), deficiencies, Taxes, liabilities,
obligations, reimbursements, costs and expenses of any kind or nature,
penalties, fines, expenses (including reasonable attorneys’ and experts’ fees
and expenses) and all amounts paid in investigation, defense or settlement of
any of the foregoing (collectively, “Losses”) suffered or incurred by any of
them arising from, relating to or otherwise in respect of (a) any inaccuracy in
any representations or warranties contained in Article 5 of this
Agreement, (b) any breach or non-fulfillment by Seller of any of its covenants
contained in this Agreement, the Transaction Documents or any agreement
delivered pursuant to this Agreement, or (c) any Losses arising from or related
to the Seller’s operation of the Truck Stops prior to the Closing Date
(collectively, “Buyer Claims”).

 

12

 

12.1.2.               Cap.  No Buyer Claims shall be asserted pursuant to
Section 12.1.1 until the aggregate Losses suffered or incurred by Buyer
are equal to or greater than $100,000 (the “Threshold Amount”), in which event
the Buyer Claims may be asserted only to the extent of the Losses in excess of
such amount, excluding individual Losses that are less than the Threshold
Amount.  With respect to Buyer Claims
asserted pursuant to Section 12.1.1, no indemnification shall be made in
excess of the Purchase Price (the “Cap”).

 

12.2.                        Buyer’s Agreement to Indemnify.

 

12.2.1.               Seller’s Claims.  Subject to the terms and conditions of this Article
12, Buyer agrees to indemnify, defend and hold harmless Seller and any of
its officers, directors, shareholders, employees or agents (“Seller Indemnitees”)
from and against all Losses suffered or incurred by any of them arising from,
relating to or otherwise in respect of (i) any inaccuracy in any
representations or warranties contained in Article 6 of this Agreement,
(ii) any breach or non-fulfillment by Buyer of any of its covenants contained
in this Agreement, the Transaction Documents or any agreement delivered
pursuant to this Agreement or (iii) any Losses arising from or related to the
Buyer’s operation of the Truck Stops on or after the Closing Date
(collectively, “Seller Claims”).

 

12.2.2.               Cap.  No Seller Claims shall be asserted pursuant
to Section 12.2.1 until the aggregate Losses suffered or incurred by
Seller are equal to or greater than the Threshold Amount, in which event the
Seller Claims may be asserted to the full extent of the Losses suffered or
incurred by Seller, excluding individual Losses that are less than the
Threshold Amount.  Additionally, with
respect to Seller Claims asserted pursuant to Section 11.2.1, no indemnification
shall be made in excess of the Cap.

 

12.3.                        Procedures for Resolution and Payment of
Third-Party Claims for Indemnification.

 

12.3.1.               Notice and Control.  Except as otherwise provided herein, in the
event any third party asserts a Claim with respect to any matter as to which
the indemnities in this Agreement relate, the party or parties against whom the
Claim is asserted (whether singular or plural, the “Indemnitee”) shall give
prompt written notice to the other party or parties (whether singular or
plural, the “Indemnitor”) in reasonable detail so that the Indemnitor is or
will be able to reasonably understand the basis of the Claim; provided that the
failure of the Indemnitee to provide such notice shall not relieve the
Indemnitor of its obligations hereunder except to the extent the Indemnitor is
materially prejudiced thereby. Thereafter, the Indemnitor shall have the right
at its election to take over the defense or settlement of the third party Claim
at its own expense by giving prompt notice to the Indemnitee.  If the Indemnitor does not give such notice
and does not proceed diligently

 

13

 

so to defend the third party Claim within 30
days after receipt of the notice of the third party Claim, the Indemnitor shall
be bound by any defense or settlement that the Indemnitee may make as to those
Claims and shall reimburse the Indemnitee for its Losses related to the defense
or settlement of the third party Claim. Subject to Indemnitor retaining control
of the Claim or settlement thereof, the Indemnitee shall, at its option and
expense, have the right to participate in the defense of any such Claims
defended by the Indemnitor (except that Indemnitor shall not be responsible for
the fees and expenses of counsel to Indemnitee unless agreed to in writing).
The parties shall cooperate in defending against any asserted third party
Claims.

 

12.3.2.               Claim Resolution.  Anything in this Section 12.3 to the
contrary notwithstanding, (a) if there is a reasonable probability that a third
party Claim may materially and adversely affect the Indemnitee other than as a
result of money damages or other money payments, the Indemnitee shall have the
right, at its own cost and expense, to defend, compromise or settle such Claim;
provided, however, that if such
Claim is settled without the Indemnitor’s consent (which consent shall not be
unreasonably withheld or delayed), the Indemnitee shall be deemed to have
waived all rights hereunder against the Indemnitor for money damages arising
out of such Claim, and (b) the Indemnitor shall not, without the written
consent of the Indemnitee, settle or compromise any Claim or consent to the
entry of any judgment (i) which does not include as an unconditional term
thereof the giving by the claimant or the plaintiff to the Indemnitee a release
from all liability in respect to such Claim or (ii) if such settlement,
compromise or consent involves the imposition of equitable remedies or the
imposition of any obligations on such Indemnitee other than financial
obligations for which such Indemnitee will be fully indemnified hereunder.

 

12.4.                        Remedies Exclusive; No Other Remedies.  The remedies contained in this Article 12
shall be the parties’ sole and exclusive remedies for any post-Closing Claims
made in connection with this Agreement. 
Each party hereto hereby waives and releases, and covenants not to seek
or assert, any other Claims or remedies in the event that the Closing occurs.

 

12.5.                        Limitation of Damages.  In no event shall any party to this Agreement
be liable to any other party for consequential, punitive or other similar
damages.

 

Article 13.

MISCELLANEOUS

 

13.1.                        Reformation and Severability.  If any provision of this Agreement is held to
be illegal, invalid or unenforceable under present or future Laws effective
during the term hereof, in lieu of such illegal, invalid or unenforceable
provision, there shall be added automatically as part of this Agreement a
provision as similar in terms to such illegal, invalid or unenforceable provision
as may be possible and be legal, valid and enforceable consistent with the
intentions of

 

14

 

the parties hereto, and the legality,
validity and enforceability of the remaining provisions hereof shall not in any
way be affected or impaired thereby. 
Likewise, each representation, warranty and covenant contained herein
shall have independent significance and, if any party hereto has breached any
representation, warranty or covenant contained herein in any respect, the fact
that there exists another representation, warranty or covenant relating to the
same subject matter (regardless of the relative levels of specificity) which
such party has not breached shall not detract from or mitigate the fact that
the party is in breach of the first representation, warranty or covenant.

 

13.2.                        Further Assurances.  All parties agree and obligate themselves,
and their respective officers, directors, shareholders, members, managers,
employees and agents, to promptly execute any additional documents and
instruments and take any other actions necessary and proper for the complete
and expeditious implementation and satisfaction of the provisions and intent of
this Agreement.  In addition, the Seller
agrees that during and subsequent to the sale transaction, it shall have a
continuing duty to supply such reasonable information and documentation and to
perform such acts as may be required by any federal, state or local authority
or the Liquor and Gaming Laws of the State of Louisiana, including, but not
limited to, making its books and records available to the Buyer or its designee
on an as-needed, reasonable basis after the Closing; provided, however, in no event whatsoever shall
the Seller be required to pay or be responsible for the payment of any monies
in connection therewith.

 

13.3.                        Liquor and Gaming Laws of the
State of Louisiana.  Each of the parties agree that this Agreement
is and shall be subject to the Liquor and Gaming Laws of the State of Louisiana
and to the oversight of the Louisiana State Police and the Gaming Control Board
of the State of Louisiana.

 

13.4.                        Notices.  Any notice or other communication required or
permitted hereunder shall be in writing and shall be deemed to be properly
given when personally delivered (by hand or by courier), when sent by certified
or registered mail, postage prepaid and return receipt requested, when sent by
facsimile transmission, or when delivered by overnight or similar delivery
services, fees prepaid, to the party entitled to receive such notice at the
address (or facsimile number) set forth below or at such other address (or
facsimile number) as such party shall provide in a written notice to the others
in accordance with the terms of this Section 13.4.  Except as otherwise specifically provided in
this Agreement, notice shall be deemed to be received by the party to whom such
notice was sent, in the case of notice given by personal delivery, on the date
of delivery, in the case of notice given by certified mail (or by such
comparable method), three (3) business days after mailing, in the case of
notice by overnight delivery service, on the date of delivery to such overnight
delivery service, and, in the case of notice by facsimile transmission, on the
date of actual transmission.

 

	
  If to Seller, to

  	
   

  	
  Gameco Holdings, Inc.

  
	
   

  	
   

  	
  10515 Colonial Downs
  Parkway

  
	
   

  	
   

  	
  New Kent, Virginia
  23124

  
	
   

  	
   

  	
  Facsimile: (804)
  966-1567

  
	
   

  	
   

  	
  Attention: Ian M.
  Stewart

  

 

15

 

	
  With a copy to:

  	
   

  	
  Stanley R. Gorom III,
  Esq.

  
	
   

  	
   

  	
  Hahn Loeser &
  Parks, LLP

  
	
   

  	
   

  	
  3300 BP Tower

  
	
   

  	
   

  	
  200 Public Square

  
	
   

  	
   

  	
  Cleveland, OH 44114

  
	
   

  	
   

  	
  Facsimile: (216)
  274-2460

  
	
   

  	
   

  	
   

  
	
  If
  to Buyer, to:

  	
   

  	
  Jacobs Entertainment,
  Inc.

  
	
   

  	
   

  	
  240 Main Street

  
	
   

  	
   

  	
  Black Hawk, Colorado
  80422

  
	
   

  	
   

  	
  Facsimile: (303)
  582-0239

  
	
   

  	
   

  	
  Attention: Stephen R.
  Roark

  
	
   

  	
   

  	
   

  
	
  With
  a copy to:

  	
   

  	
  Samuel E. Wing, Esq.

  
	
   

  	
   

  	
  Jones & Keller

  
	
   

  	
   

  	
  1625 Broadway, Suite
  1600

  
	
   

  	
   

  	
  Denver, Colorado 80202

  
	
   

  	
   

  	
  Facsimile: (303)
  573-0769

  
	
   

  	
   

  	
   

  
	
  And
  to:

  	
   

  	
  Robert A. Weible, Esq.

  
	
   

  	
   

  	
  Baker & Hostetler,
  LLP

  
	
   

  	
   

  	
  3200 National City
  Center

  
	
   

  	
   

  	
  1900 East Ninth Street

  
	
   

  	
   

  	
  Cleveland, Ohio 44114

  
	
   

  	
   

  	
  Facsimile: (216)
  696-0740

  

 

13.5.                        Headings and Interpretations.  The headings of Articles and Sections
contained in this Agreement are for convenience only and shall not be deemed to
control or affect the meaning or construction of any provision of this
Agreement.

 

13.6.                        Waiver.  The failure of any party to insist, in any
one or more instances, upon performance of any of the terms, covenants or
conditions of this Agreement shall not be construed as a waiver or a
relinquishment of any right or Claim granted or arising hereunder or of the
future performance of any such term, covenant or condition, and such failure
shall in no way effect the validity of this Agreement or the rights and
obligations of the parties hereto. Additionally, no waiver of any breach of
this Agreement shall be a waiver of any subsequent breach.  No waiver shall be effective unless made in
writing and signed by the party granting such waiver.

 

13.7.                        Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original, and all of
which when taken together shall constitute one and the same instrument.

 

13.8.                        Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Colorado, without regard
to principles of conflict of laws, and the parties expressly agree that venue,
for all purposes hereunder, shall rest exclusively with the state and federal
courts of the State of Colorado.

 

16

 

13.9.                        Assignability and Binding Effect.  This Agreement shall inure to the benefit of,
and be binding upon, the parties hereto and their respective successors and
permitted assigns. This Agreement together with the Transaction Documents and
the rights and obligations hereunder may not be assigned by either party
without the express written consent of the other.

 

13.10.                  Amendments.  This Agreement may not be modified, amended
or supplemented except by an agreement in writing signed by each of the parties
hereto.

 

13.11.                  Third Parties.  Except for the holders of the Notes who shall
be third party beneficiaries of Article 2, nothing herein expressed or implied
is intended or shall be construed to confer upon or give to any Person other
than the parties hereto and their successors or permitted assigns, any rights
or remedies under or by reason of this Agreement.

 

13.12.                  Entire Agreement.  This Agreement and the Transaction Documents
together with the schedules and exhibits hereto and thereto, shall constitute
the entire agreement between the parties hereto with respect to the
transactions contemplated hereby and shall supersede all prior negotiations,
letters of intent, understandings and agreements. A disclosure of any information
in a schedule attached hereto, or delivery pursuant to the terms hereof, shall
be considered a disclosure of such information in any other schedules in which
the same information may otherwise be required to be included in accordance
with the terms of this Agreement.

 

13.13.                  Other Interpretive Matters.                                           In this Agreement, unless a
clear contrary intention appears:  (a)
the singular number includes the plural number and vice versa; (b) reference to
any Person includes such Person’s successors and assigns but only if such
successors and assigns are permitted by this Agreement and reference to a
Person in a particular capacity excludes such Person in any other capacity; (c)
reference to any gender includes each other gender; (d) reference to any agreement
(including this Agreement and the schedules hereto), document or instrument
means such agreement, document or instrument as amended or modified and in
effect from time to time in accordance with the terms thereof and, if
applicable, the terms hereof (and without giving effect to any amendment or
modification that would not be permitted in accordance with the terms hereof);
(e) reference to any applicable law means such applicable law as amended,
modified, codified or reenacted, in whole or in part, and in effect from time
to time, including rules and regulations promulgated thereunder and reference
to any particular provision of any applicable law shall be interpreted to
include any revision of or successor to that provision regardless of how
numbered or classified; (f) reference to any Article or Section means such
Article or Section hereof; (g) “hereunder,” “hereof,” “hereto” and words of
similar import shall be deemed references to this Agreement as a whole and not
to any particular Section or other provision hereof; and (h) “including” (and
with correlative meaning “include”) means including without limiting the
generality of any description preceding such term.

 

13.14.                  Certain Assistance in Income Tax
Preparation and Audits and Other Matters.

 

13.14.1.                                                         Tax
Preparation.

 

17

 

13.14.1.1.                                                Buyer
and Seller shall furnish, at no cost to the other, such data as the other party
may reasonably require to prepare Tax Returns. 
If additional data is required by Seller or Buyer for preparation of Tax
Returns or tax examinations, such additional information (including
reproduction of Tax Returns, tax assessments, and records) shall be furnished,
at no cost and within a reasonable time after requested in writing.

 

13.14.1.2.                                                Buyer
and Seller shall retain, until the applicable statutes of limitations
(including any extensions) have expired, copies of all Tax Returns, supporting
work schedules, and other records or information which may be relevant to such
Tax Returns for all tax periods or portions thereof ending prior to the Closing
Date.  Copies of all such Tax Returns
shall be promptly provided to any party upon request of the same.

 

13.14.2.                                                         Tax Audits.  Buyer and Seller shall provide reasonable
assistance to each other with any tax audits or other administrative or
judicial proceedings involving any of the Truck Stops at no cost to the other.
Neither party shall, without the prior written consent of the other, unless
required by law, initiate any contact or voluntarily enter into any agreement
with, or volunteer any information to, the taxing authorities with regard to
Tax Returns or declarations of the other party.

 

13.15.                  Additional Definitions.  The following definitions shall apply:

 

13.15.1.                                                         Claim means any actual, threatened or
potential claim (whether oral or written), demand, litigation, action, suit,
investigation, proceeding, hearing, complaint, assessment or judgment,
administrative or judicial, at law or in equity.

 

13.15.2.                                                         Devices shall mean “Video Draw Poker
Devices” as defined in the Video Draw Poker Devices Control Law, Louisiana
Revised Statutes, Title 27:301 et seq., as amended from time to time.

 

13.15.3.                                                         Entity means a corporation,
association, partnership, limited liability company, limited liability
partnership, trust or any other entity or organization.

 

13.15.4.                                                         Gaming Assets shall mean any assets, in any
form, that relate to the operation or ownership of casinos, race-tracks, truck
stops or other operations whose primary purpose is lawfully providing games of
chance (including pari-mutuel waging) for play by the

 

18

 

general public; provided, however, Gaming Assets shall not include a Passive
Gaming Investment.

 

13.15.5.                                                         Governmental Body means any federal, state,
county, parish, local or foreign governmental authority, quasi-governmental
authority or any regulatory, administrative or other agency, department,
commission, tribunal, board, bureau, instrumentality, any political or other
subdivision, or any body thereof, or any federal, state, county, local or
foreign court or arbitrator.

 

13.15.6.                                                         Lien means any mortgage, pledge,
security interest, encumbrance, covenant, condition, restriction, easement,
claim, lien or charge of any kind (including, without limitation, any
conditional sale or other title retention agreement or lease in the nature
thereof), any sale of receivables with recourse, or any filing or agreement to
file a financing statement as debtor under the Uniform Commercial Code or any similar
statute.

 

13.15.7.                                                         Liquor and Gaming Laws of the
State of Louisiana
shall mean the laws promulgated in the Louisiana Revised Statutes Title 27:301
et seq., and Title 26:1 et seq., as amended from time to time and the Louisiana
Administrative Code provisions interpreting the same.

 

13.15.8.                                                         Material Adverse Effect means any matter or matters
which would, alone or in the aggregate, have a material adverse effect on  (i) the financial condition, operating
results, assets, liabilities, operations, condition (financial or otherwise),
business or prospects of any of the Truck Stops or the Seller, (ii) any
material violation by the Seller or any of the Truck Stops of the Liquor and
Gaming Laws of the State of Louisiana, (iii) the revocation or suspension, for any
period of time, of any liquor or gaming license issued by the State of
Louisiana to any of the Truck Stops.

 

13.15.9.                                                         Notes shall mean collectively the
Buyer’s 11 7/8% senior secured notes due 2009, in the original principal
balance of $125,000,000 and those additional 11 7/8% senior secured notes due
2009, issued in 2005, in the original principal amount of $23,000,000 (“Additional
Notes”)

 

13.15.10.                                                   Notes Closing Date shall mean the date upon which
the Additional Notes are fully issued and funded.

 

13.15.11.                                                   Passive Gaming Investment shall mean any passive
investment in the voting equity of a publicly-traded Entity, even if such
Entity may own Gaming Assets. 
Notwithstanding the foregoing, an investment shall not be considered
passive if either Richard E. Jacobs or Jeffrey P. Jacobs, whether jointly or
individually: (i) has

 

19

 

the power, whether by voting rights, contract
or otherwise, to elect or appoint a majority of a given Entity’s Board of
Directors; or (ii) otherwise participates (excluding the act of voting their
equity interests) in the management of an Entity.

 

13.15.12.                                                   Person means an individual,
corporation, Governmental Body, association, partnership, limited liability
company, limited liability partnership, trust, or any other entity or
organization.

 

13.15.13.                                                   Tax means the domestic federal,
state, and local income, payroll, withholding, excise, social security, sales,
use, ad valorum, real and personal property, occupancy, business, capital
stock, franchise, transfer, employment and unemployment, and any other tax,
fee, duty, assessment or governmental charge of any kind whatsoever (including,
without limitation, all interest, penalties and estimated taxes).

 

13.15.14.                                                   Tax Return means returns, reports, claims
for refund, information returns or other documents (including, without
limitation, any related or supporting schedules, statements or information)
filed or required to be filed.

 

13.16.                  Incorporation.   Any and all Schedules or other documents
referred to herein or attached hereto are incorporated herein as if fully
rewritten in this Agreement.

 

[The remainder of this page has been left
intentionally blank.]

 

20

 

IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be executed as of the
Agreement Date.

 

 

	
   

  	
  BUYER:

  
	
   

  	
  JACOBS ENTERTAINMENT, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: /s/ Stephen R. Roark

  	
   

  
	
   

  	
  Stephen R. Roark, Chief Financial Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  SELLER:

  
	
   

  	
   

  
	
   

  	
  GAMECO HOLDINGS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: /s/ Ian M. Stewart

  	
   

  
	
   

  	
  Ian M. Stewart, Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  For the purpose of agreeing to the terms,
  conditions and

  
	
   

  	
  covenants of Article 2 only:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Jeffrey P. Jacobs

  	
   

  
	
   

  	
  Jeffrey P. Jacobs

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  /s/ Richard E. Jacobs

  	
   

  
	
   

  	
  Richard E. Jacobs

  

 

21

 

LIST OF SCHEDULES

 

Schedule 5.4                             Capitalization

 

Schedule 5.5                             Liens,
Claims and Title Exceptions

 

Schedule 5.6                             Tax
Matters

 

Schedule 5.10                       Consents

 

Schedule 5.11                       Litigation

 

22

 

Schedule
5.4

 

[Capitalization]

 

1.                                       Jefferson
has entered into that certain Development Agreement, dated September 26, 2003,
by and between Jefferson and Jackpot Truck Stop, L.L.C., a Louisiana limited
liability company (“Jackpot”), which provides for, inter alia, the payment of a portion of the gaming revenue
from this location to Jackpot.

 

23

 

Schedule
5.5

 

[Liens,
Claims and Title Exceptions]

 

1.                                       EUNICE:

 

a.                                       Those
exceptions to title disclosed in the Owner’s Title Policy, issued by Lawyers
Title Insurance Corporation, Policy No. 136-00-780885, dated October 30, 2003,
together with the endorsement, dated as of the Closing.

 

2.                                       BREAUX
BRIDGE:

 

a.                                       Those
exceptions to title disclosed in the Owner’s Title Policy, issued by Lawyers
Title Insurance Corporation, Policy No. A75-0547929, dated July 1, 2003,
together with the endorsement, dated as of the Closing.

 

3.                                       JEFFERSON:

 

a.                                       Those
exceptions to title disclosed in the Owner’s Title Policy, issued by Lawyers
Title Insurance Corporation, Policy No. B12-0006655, dated June 28, 2004,
together with the endorsement, dated as of the Closing.

 

b.                                      Sublease
Agreement between Jefferson, as Landlord, and Subway Real Estate Corp., as
Tenant, dated December 9, 2004.

 

c.                                       Sublease
Agreement between, Jefferson, as Sub-lessor, and Point of Sale, L.L.C. as
Sub-lessee, dated July 1, 2004.

 

d.                                      Development
Agreement by and between Jefferson and Jackpot Truck Stop, L.L.C., a Louisiana
limited liability company, dated September 26, 2003.

 

e.                                       The
litigation described on Schedule 5.11.

 

24

 

Schedule
5.6

 

[Tax
Matters]

 

None

 

25

 

Schedule
5.10

 

[Consents]

 

1.                                       An
establishment license has not been issued for the gaming operations located at
Eunice.  The application has been filed
and the regulatory investigation and approval process associated therewith is
underway.

 

2.                                       An
establishment license has not been issued for the gaming operations located at
Jefferson.  The application is being
filed.

 

3.                                       The
transfers contemplated by this Agreement will require notification by the Buyer
to the Louisiana State Police within ten (10) days of their completion.

 

26

 

Schedule
5.11

 

[Litigation]

 

1.                                       Avondale Truck Stop, L.L.C. vs. The Parish of
Jefferson, Al-Huda, Inc., Al-Batool, Inc. and the Jefferson Parish Council,
No. 604-603, in the 24th Judicial District Court for the Parish of Jefferson,
State of Louisiana, Division “L”, and consolidated with, Phillip Hebert vs. The Parish of Jefferson, Al-Huda,
Inc., Al-Batool, Inc. and the Jefferson Parish Council, No. 604-604,
in the 24th Judicial District Court for the Parish of Jefferson, State of
Louisiana, Division “K”

 

27

 

[This Page
Left Intentionally Blank]

 

28EXHIBIT
10.13

 

 

REGISTRATION RIGHTS AGREEMENT

 

Dated as of March 2, 2005

 

by and among

 

JACOBS ENTERTAINMENT, INC.,

 

THE GUARANTORS

named herein

 

and

 

THE PURCHASERS

named herein

 

 

 

$23,000,000

 

11 7/8% SENIOR SECURED NOTES
DUE 2009

 

 

TABLE OF
CONTENTS

 

	
  1.

  	
  Definitions

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Exchange
  Offer

  	
   

  
	
   

  	
   

  	
   

  
	
  3.

  	
  Shelf Registration

  	
   

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Additional Interest

  	
   

  
	
   

  	
   

  	
   

  
	
  5.

  	
  Registration Procedures

  	
   

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Registration Expenses

  	
   

  
	
   

  	
   

  	
   

  
	
  7.

  	
  Indemnification

  	
   

  
	
   

  	
   

  	
   

  
	
  8.

  	
  Rules 144 and 144A

  	
   

  
	
   

  	
   

  	
   

  
	
  9.

  	
  Underwritten Registrations

  	
   

  
	
   

  	
   

  	
   

  
	
  10.

  	
  Miscellaneous

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  (a)

  	
  Remedies

  	
   

  
	
   

  	
  (b)

  	
  No Inconsistent Agreements

  	
   

  
	
   

  	
  (c)

  	
  Amendments and Waivers

  	
   

  
	
   

  	
  (d)

  	
  Notices

  	
   

  
	
   

  	
  (e)

  	
  Successors and Assigns

  	
   

  
	
   

  	
  (f)

  	
  Counterparts

  	
   

  
	
   

  	
  (g)

  	
  Headings

  	
   

  
	
   

  	
  (h)

  	
  Governing
  Law

  	
   

  
	
   

  	
  (i)

  	
  Severability

  	
   

  
	
   

  	
  (j)

  	
  Notes Held by any Issuer or their Affiliates

  	
   

  
	
   

  	
  (k)

  	
  Third Party Beneficiaries

  	
   

  
	
   

  	
  (l)

  	
  Entire
  Agreement

  	
   

  
	
   

  	
  (m)

  	
  Joint and Several Obligations

  	
   

  

 

i

 

REGISTRATION
RIGHTS AGREEMENT

 

This
Registration Rights Agreement (the “Agreement”) is made and entered into
as of March 2, 2005, by and among Jacobs Entertainment, Inc., a
Delaware corporation (the “Company”), the Guarantors (as defined below)
and the purchasers set forth on Schedule A hereto (the “Purchasers”).

 

This Agreement
is entered into in connection with that certain Note Purchase Agreement, dated March 2,
2005, by and among the Company, the Guarantors and the Purchasers (the “Note
Purchase Agreement”) relating to the sale by the Company to the Purchasers
of $23,000,000 aggregate principal amount of the Company’s 11 7/8 % Senior
Secured Notes due 2009 (the “Notes”) and the unconditional guarantee
thereof by the Guarantors on a joint and several basis (the “Guarantee”).  In order to induce the Purchasers to enter
into the Note Purchase Agreement, the Issuers (as defined below) have agreed to
provide the registration rights set forth in this Agreement for the benefit of
the holders of Registrable Notes (as defined below), including, without limitation,
the Purchasers.  The execution and
delivery of this Agreement is a condition to the Purchasers’ obligation to
purchase the Notes under the Note Purchase Agreement.

 

The parties
hereby agree as follows:

 

1.                  Definitions

 

As used in
this Agreement, the following terms shall have the following meanings:

 

Additional
Interest:  See Section 4(a).

 

Advice:  See the last paragraph of Section 5.

 

Agreement:  See the preamble to this Agreement.

 

Applicable
Period:  See Section 3(b).

 

Business Day:  A day that is not a Saturday, a Sunday,
or a day on which banking institutions in New York, New York are required to be
closed.

 

Commission:  The Securities and Exchange Commission.

 

Company:  See the first introductory paragraph to this
Agreement.

 

Effectiveness
Date:  The 210th
day after the Issue Date, in the case of the Exchange Registration Statement,
and, in the case of the Initial Shelf Registration, the 90th day
after the filing of the Initial Shelf Registration.

 

Effectiveness
Period:  See Section 3(a).

 

Event Date:  See Section 4(b).

 

1

 

Exchange Act:  The Securities Exchange Act of 1934, as
amended, and the rules and regulations of the Commission promulgated
thereunder.

 

Exchange Notes:  See Section 2 (a).

 

Exchange Offer:  See Section 2(a).

 

Exchange
Registration Statement:  See Section 2 (a).

 

Filing Date:  The 120th day after the Issue Date
(regardless of whether the actual filing precedes such date).

 

Guarantee:  See the second introductory paragraph to this
Agreement.

 

Guarantors:  Black Hawk Gaming & Development
Company, Inc., a Colorado corporation, Black Hawk/Jacobs Entertainment, a
Colorado limited liability company, Gold Dust West Casino, Inc., a Nevada
corporation, Gilpin Hotel Venture, a Colorado joint venture, Gilpin Ventures, Inc.,
a Colorado corporation, Jalou II Inc., a Louisiana corporation, Winner’s Choice
Casino, Inc., a Louisiana corporation, Diversified Opportunities Group
Ltd., an Ohio limited liability company, Jalou L.L.C., a Louisiana limited
liability company, Houma Truck Plaza & Casino, L.L.C., a Louisiana
limited liability company, Jalou-Cash’s L.L.C., a Louisiana limited liability
company, JACE, Inc., a Louisiana corporation, Lucky Magnolia Truck Stop
and Casino, L.L.C., a Louisiana limited liability company, Bayou Vista Truck
Plaza and Casino, L.L.C., a Louisiana limited liability company, Raceland Truck
Plaza and Casino, L.L.C., a Louisiana limited liability company, Colonial
Holdings, Inc., a Virginia corporation, Stansley Racing Corp., a Virginia
corporation, Colonial Downs, L.P., a Virginia limited partnership, Colonial
Downs, L.L.C., a Virginia limited liability company, JRJ Properties, L.L.C., a
Louisiana limited liability company, Jalou Breaux Bridge, LLC, a Louisiana
limited liability company, Jalou Eunice, LLC, a Louisiana limited liability
company, and Jalou of Jefferson, LLC, a Louisiana limited liability company.

 

Holder:  Any registered holder of Registrable Notes.

 

Indemnified
Person:  See Section 7(c).

 

Indemnifying
Person:  See Section 7(c).

 

Indenture:  The Indenture, dated as of February 8,
2002, by and among Jacobs Entertainment, Inc. (formerly known as Gameco, Inc.),
the Subsidiary Guarantors (as defined therein), and Wells Fargo Bank Minnesota,
National Association, as trustee, pursuant to which the Notes are being issued,
as amended or supplemented from time to time in accordance with the terms
thereof.

 

Initial Shelf
Registration: 
See Section 3(a).

 

Inspectors:  See Section 5(o).

 

2

 

Issue Date:  The date on which the Notes were sold to the
Purchasers pursuant to the Note Purchase Agreement.

 

Issuers:  The Company and the Guarantors, collectively.

 

NASD:  National Association of Securities Dealers, Inc.

 

Note Purchase
Agreement:  See
the second introductory paragraph to this Agreement.

 

Notes:  See the second introductory paragraph to this
Agreement.

 

Participant:  See Section 7(a).

 

Person:  Any individual, corporation, partnership,
limited liability company, joint venture, association, joint stock company,
trust, unincorporated organization or government (including any agency or
political subdivision thereof).

 

Potential
Material Event: 
(i) An event or circumstance which occurs and is continuing as a
result of which any Shelf Registration, any related prospectus or any document
incorporated therein by reference as then amended or supplemented or proposed
to be filed would, in the good faith determination of the Board of Directors of
the Company, contain an untrue statement of a material fact or omit to state a
material fact necessary in order to make the statements therein, in light of
the circumstances under which they were made, not misleading, and (ii) either
(a) the Board of Directors of the Company determines in good faith that
the disclosure of such event at such time would have a material adverse effect
on the Company’s business, operations or prospects or (b) the disclosure
otherwise relates to a material business transaction or development which has
not yet been publicly disclosed.

 

Prospectus:  The prospectus included in any Registration
Statement (including, without limitation, any prospectus subject to
completion and a prospectus that includes any information previously omitted
from a prospectus filed as part of an effective registration statement in
reliance upon Rule 430A promulgated under the Securities Act), as amended
or supplemented by any prospectus supplement, with respect to the terms of the
offering of any portion of the Registrable Notes covered by such Registration
Statement, and all other amendments and supplements to the Prospectus,
including post-effective amendments, and all material incorporated by reference
or deemed to be incorporated by reference in such Prospectus.

 

Purchasers:  See the preamble to this Agreement.

 

Records:  See Section 5(o).

 

Registrable
Notes:  Each
Note upon original issuance thereof and at all times subsequent thereto, each
Exchange Note as to which Section 2(c)(iii) hereof is applicable upon
original issuance thereof and at all times subsequent thereto until, in the
case of any such Note or Exchange Note, as the case may be, the earliest to
occur of (i) a Registration Statement covering such Note or Exchange Note,
as the case may be, has been declared effective by the Commission

 

3

 

and such Note
or Exchange Note, as the case may be, has been disposed of in accordance with
such effective Registration Statement, (ii) such Note or Exchange Note, as
the case may be, is sold in compliance with Rule 144, (iii) in the
case of any Note, such Note has or could have been exchanged pursuant to the
Exchange Offer for an Exchange Note or Exchange Notes which may be resold
without restriction under federal securities laws, or (iv) such Note or
Exchange Note, as the case may be, ceases to be outstanding for purposes of the
Indenture.

 

Registration
Statement:  Any
registration statement of the Company, including, but not limited to, the
Exchange Registration Statement, that covers any of the Registrable Notes
pursuant to the provisions of this Agreement, including the Prospectus,
amendments and supplements to such registration statement, including
post-effective amendments, all exhibits, and all material incorporated by
reference or deemed to be incorporated by reference in such registration
statement.

 

Rule 144:  Rule 144 under the Securities Act, as
such Rule may be amended from time to time, or any similar rule (other
than Rule 144A) or regulation hereafter adopted by the Commission
providing for offers and sales of securities made in compliance therewith
resulting in offers and sales by subsequent holders that are not affiliates of
an issuer of such securities being free of the registration and prospectus
delivery requirements of the Securities Act.

 

Rule 144A:  Rule 144A under the Securities Act, as
such Rule may be amended from time to time, or any similar rule (other
than Rule 144) or regulation hereafter adopted by the Commission.

 

Rule 415:  Rule 415 under the Securities Act, as
such Rule may be amended from time to time, or any similar rule or
regulation hereafter adopted by the Commission.

 

Securities Act:  The Securities Act of 1933, as amended, and
the rules and regulations of the Commission promulgated thereunder.

 

Shelf Notice:  See Section 2(c).

 

Shelf
Registration: 
See Section 3(b).

 

Suspension
Period:  See Section 5.

 

Subsequent
Shelf Registration: 
See Section 3(b).

 

TIA:  The Trust Indenture Act of 1939, as amended.

 

Trustee:  The trustee under the Indenture and, if
existent, the trustee under any indenture governing the Exchange Notes.

 

Underwritten
registration or underwritten offering:  A registration in which securities of one or
more of the Issuers are sold to an underwriter for reoffering to the public.

 

4

 

2.                  Exchange Offer

 

(a)                         Each
of the Issuers agrees to file with the Commission no later than the Filing
Date, an offer to exchange (the “Exchange Offer”) any and all of the
Registrable Notes for a like aggregate principal amount of debt securities of
the Company which are identical in all material respects to the Notes (the “Exchange
Notes”) (and which are entitled to the benefits of the Indenture (other
than such changes to the Indenture as are necessary to comply with any requirements
of the Commission to effect or maintain the qualification thereof under the
TIA), except that the Exchange Notes shall have been registered pursuant to an
effective Registration Statement under the Securities Act and shall contain no
restrictive legend thereon.  The Exchange
Offer shall be registered under the Securities Act on the appropriate
form (the “Exchange Registration Statement”) and shall comply with
all applicable tender offer rules and regulations under the Exchange
Act.  Each of the Issuers agrees to use
its best efforts to (x) cause the Exchange Registration Statement to be
declared effective under the Securities Act on or before the Effectiveness
Date; (y) keep the Exchange Offer open for at least 30 Business Days (or
longer if required by applicable law) after the later of the date on which (i) the
Exchange Offer is first mailed to Purchasers and (ii) the Exchange
Registration Statement is declared effective by the Commission and launched;
and (z) consummate the Exchange Offer on or prior to the 60th day
following the date on which the Exchange Registration Statement is declared
effective by the Commission.  If after
such Exchange Registration Statement is initially declared effective by the
Commission, the Exchange Offer or the issuance of the Exchange Notes thereunder
is interfered with by any stop order, injunction or other order or requirement
of the Commission or any other governmental agency or court, such Exchange
Registration Statement shall be deemed not to have become effective for
purposes of this Agreement and the Company shall immediately provide notice to
the Trustee that the Exchange Registration Statement is no longer
effective.  Each Holder who participates
in the Exchange Offer will be required to represent that any Exchange Notes
received by it will be acquired in the ordinary course of its business, that at
the time of the consummation of the Exchange Offer such Holder will have no
arrangement or understanding with any Person to participate in the distribution
of the Exchange Notes, that such Holder is not an affiliate of any Issuer
within the meaning of the Securities Act, and any additional representations
that in the written opinion of counsel to the Issuers are necessary under
then-existing interpretations of the Commission in order for the Exchange
Registration Statement to be declared effective.  Upon consummation of the Exchange Offer in
accordance with this Section 2, the Issuers shall have no further
obligation to register Registrable Notes other than in respect of any Exchange
Notes as to which clause 2(b)(iii) hereof applies.

 

In connection
with the Exchange Offer, the Issuers shall:

 

(1)                                 mail
to each Holder a copy of the Prospectus forming part of the Exchange
Registration Statement, together with an appropriate letter of transmittal and
related documents;

 

(2)                                 utilize
the services of a depositary for the Exchange Offer with an address in the
Borough of Manhattan, The City of New York, which may be the Trustee or an
affiliate thereof;

 

5

 

(3)                                 permit
Holders to withdraw tendered Registrable Notes at any time prior to the close
of business, New York time, on the last Business Day on which the Exchange
Offer shall remain open; and

 

(4)                                 otherwise
comply in all material respects with all applicable laws.

 

As soon as
practicable after the close of the Exchange Offer, the Issuers shall:

 

(1)                                 accept
for exchange all Registrable Notes validly tendered and not validly withdrawn
pursuant to the Exchange Offer;

 

(2)                                 deliver
to the Trustee for cancellation all Registrable Notes so accepted for exchange;
and

 

(3)                                 cause
the Trustee to authenticate and deliver promptly to each Holder tendering such
Registrable Notes or Exchange Notes, as the case may be, equal in principal
amount to the Notes of such Holder so accepted for exchange.

 

The Exchange
Notes may be issued under (i) the Indenture or (ii) an indenture
identical in all material respects to the Indenture, which in either event will
provide that the Exchange Notes will not be subject to the transfer
restrictions set forth in the Indenture and that the Exchange Notes and the
Notes, if any, will vote and consent together on all matters as one class and
that none of the Exchange Notes or the Notes, if any, will have the right to vote
or consent as a separate class on any matter.

 

(b)                        If,
(i) because of any change in law or in currently prevailing
interpretations of the staff of the Commission, the Company is not permitted to
effect an Exchange Offer, (ii) the Exchange Offer is not consummated
within 255 days of the Issue Date, or (iii) in the case of any Holder that
participates in the Exchange Offer (and validly tenders and does not withdraw
its Registrable Notes prior to the expiration thereof), such Holder does not
receive Exchange Notes on the date of the exchange that may be sold without
restriction under federal securities laws (other than due solely to the status
of such Holder as an affiliate of any Issuer within the meaning of the
Securities Act) and so notifies the Company within 30 days following the
consummation of the Exchange Offer (and provides a reasonable basis for its
conclusions), in the case of each of clauses (i)-(iii), then the Issuers
shall promptly deliver to the Holders and the Trustee written notice thereof
(the “Shelf Notice”) and shall file a Shelf Registration pursuant to Section 3.

 

3.                  Shelf Registration

 

If a Shelf
Notice is delivered as contemplated by Section 2(c), then:

 

(a)                         Shelf
Registration.  The Issuers shall as
promptly as reasonably practicable file with the Commission a Registration
Statement for an offering to be made on a continuous basis pursuant to Rule 415
covering all of the Registrable Notes (the “Initial Shelf Registration”).  If the Issuers shall not have filed the
Exchange Registration Statement, each of the Issuers shall file with the
Commission the Initial Shelf Registration on or prior to the Filing

 

6

 

Date and shall
use its best efforts to cause such Initial Shelf Registration to be declared
effective under the Securities Act on or prior to the Effectiveness Date.  Otherwise, each of the Issuers shall file
with the Commission the Initial Shelf Registration within 120 days of the
delivery of the Shelf Notice and shall use its best efforts to cause such Shelf
Registration to be declared effective under the Securities Act on or prior to
the Effectiveness Date.  The Issuers
shall file the Initial Shelf Registration on Form S-3 if they are eligible
to do so. Otherwise, the Issuers shall file such Initial Shelf Registration on Form S-1
or another appropriate form permitting registration of such Registrable Notes
for resale by Holders in the manner or manners designated by them (including,
without limitation, one or more underwritten offerings).  The Issuers shall not permit any securities
other than the Registrable Notes to be included in any Shelf Registration.  Each of the Issuers shall use its best
efforts to keep the Initial Shelf Registration continuously effective under the
Securities Act until the date which is 24 months from the Issue Date (or,
if Rule 144(k) under the Securities Act is amended to permit unlimited
resales by non-affiliates within a lesser period, such lesser period) (subject
to extension pursuant to the last and penultimate paragraphs of Section 5
hereof) (the “Effectiveness Period”) or such shorter period ending when (i) all
Registrable Notes covered by the Initial Shelf Registration have been sold in
the manner set forth and as contemplated in the Initial Shelf Registration or (ii) a
Subsequent Shelf Registration covering all of the Registrable Notes has been
declared effective under the Securities Act.

 

(b)                        Subsequent
Shelf Registrations.  If the Initial
Shelf Registration or any Subsequent Shelf Registration ceases to be effective
for any reason at any time during the Effectiveness Period (other than because
of the sale of all of the securities registered thereunder), the Company shall
immediately provide notice to the Trustee that such Initial Shelf Registration
or Subsequent Shelf Registration, as the case may be, is no longer effective
and each of the Issuers shall use its best efforts to obtain the prompt
withdrawal of any order suspending the effectiveness thereof, and in any event
shall within 30 days of such cessation of effectiveness amend the Shelf
Registration in a manner to obtain the withdrawal of the order suspending the
effectiveness thereof, or file an additional “shelf” Registration Statement
pursuant to Rule 415 covering all of the Registrable Notes then outstanding
(a “Subsequent Shelf Registration”). 
If a Subsequent Shelf Registration is filed, each of the Issuers shall
use its best efforts to cause the Subsequent Shelf Registration to be declared
effective as soon as practicable after such filing and to keep such Subsequent
Shelf Registration continuously effective for a period (the “Applicable
Period”) equal to the number of days in the Effectiveness Period less the
aggregate number of days during which the Initial Shelf Registration, or any
Subsequent Shelf Registrations, was previously continuously effective.  As used herein the term “Shelf
Registration” means the Initial Shelf Registration and any Subsequent Shelf
Registration.

 

(c)                         Supplements
and Amendments.  Each of the Issuers
shall promptly supplement and amend any Shelf Registration if required by the
rules, regulations or instructions applicable to the registration form used for
such Shelf Registration, or if required by the Securities Act.

 

7

 

4.                  Additional Interest

 

(a)                         The
Issuers and the Purchasers agree that the Holders of Registrable Notes will
suffer damages if the Issuers fail to fulfill their obligations under Section 2
or Section 3 hereof and that it would not be feasible to ascertain the extent
of such damages with precision. 
Accordingly, each of the Issuers agrees to pay, as liquidated damages,
additional interest on the Registrable Notes (“Additional Interest”)
under the circumstances and to the extent set forth below (each of which shall be
given independent effect):

 

(i)                                    if
(A) neither the Exchange Registration Statement nor the Initial Shelf
Registration has been filed on or prior to the Filing Date or (B) notwithstanding
that the Issuers have consummated or will consummate an Exchange Offer, the
Issuers are required to file a Shelf Registration and such Shelf Registration
is not filed on or prior to the 120th day after delivery of the
Shelf Notice, then, in the case of subclause (A), commencing on the day
after the Filing Date or, in the case of subclause (B), commencing on the
121st day following delivery of the Shelf Notice, Additional
Interest shall accrue on the Registrable Notes over and above the stated
interest at a rate of 1.0% per annum for the first 90 days immediately
following the Filing Date or such 120th day, as the case may be, such
Additional Interest rate increasing by an additional 0.50% per annum at the
beginning of each subsequent 90-day period;

 

(ii)                                 if
(A) neither the Exchange Registration Statement nor the Initial Shelf
Registration is declared effective on or prior to the Effectiveness Date
applicable thereto or (B) notwithstanding that the Issuers have
consummated or will consummate an Exchange Offer, the Issuers are required to
file a Shelf Registration and such Shelf Registration is not declared effective
by the Commission on or prior to the applicable Effectiveness Date, then,
commencing on the day after such applicable Effectiveness Date, Additional
Interest shall accrue on the Registrable Notes over and above the stated
interest at a rate of 1.0% per annum for the first 90 days immediately
following the day after the applicable Effectiveness Date, such Additional
Interest rate increasing by an additional 0.50% per annum at the beginning of
each subsequent 90-day period; and

 

(iii)                              if
(A) the Company has not exchanged Exchange Notes for all Notes validly
tendered and not withdrawn in accordance with the terms of the Exchange Offer
on or prior to the 255th day after the Issue Date, (B) the
Exchange Registration Statement ceases to be effective prior to consummation of
the Exchange Offer or (C) if applicable, a Shelf Registration has been
declared effective and such Shelf Registration ceases to be effective at any
time during the Effectiveness Period (other than as a result of the imposition
of any Suspension Period in accordance with the penultimate paragraph of Section 5
of this Agreement), then Additional Interest shall accrue on the Registrable
Notes over and above the stated interest at a rate of 1.0% per annum for the
first 90 days commencing on the (x) 256th day after the Issue
Date in the case of (A) above or (y) the day such Exchange
Registration Statement or Shelf Registration ceases to be effective in the case
of (B) and (C) above, such Additional Interest rate increasing by an
additional 0.50% per annum at the beginning of each such subsequent 90-day
period;

 

provided, however,
that the Additional Interest rate on the Registrable Notes may not exceed in
the aggregate 2.0% per annum; provided  further that (1) upon
the filing of the Exchange

 

8

 

Registration Statement or each Shelf Registration (in the case of (i) above),
(2) upon the effectiveness of the Exchange Registration Statement or each
Shelf Registration, as the case may be (in the case of (ii) above), or (3) upon
the exchange of Exchange Notes for all Registrable Notes tendered (in the case
of (iii) (A) above) or upon the effectiveness of an Exchange
Registration Statement or Shelf Registration which had ceased to remain
effective (in the case of (iii)(B) and (C) above), Additional
Interest on any Registrable Notes then accruing Additional Interest as a result
of such clause (or the relevant subclause thereof), as the case may be,
shall cease to accrue.

 

(b)                        The
Issuers shall notify the Trustee within one Business Day after each and every
date on which an event occurs in respect of which Additional Interest is
required to be paid (an “Event Date”). 
Any amounts of Additional Interest due pursuant to (a)(i), (a)(ii) or
(a)(iii) of this Section 4 will be payable in cash semi-annually on
each regular interest payment date specified in the Indenture (to the Holders
of Registrable Notes of record on the regular record date therefor (as
specified in the Indenture) immediately preceding such dates), commencing with
the first such regular interest payment date occurring after any such
Additional Interest commences to accrue. 
The amount of Additional Interest will be determined by multiplying the
applicable Additional Interest rate by the principal amount of the Notes
subject thereto, multiplied by a fraction, the numerator of which is the number
of days such Additional Interest rate was applicable during such period
(determined on the basis of a 360-day year comprised of twelve 30-day
months), and the denominator of which is 360.

 

5.                  Registration Procedures

 

In connection
with the filing of any Registration Statement pursuant to Section 2 or 3
hereof, each Issuer shall effect such registration to permit the sale of such
securities covered thereby in accordance with the intended method or methods of
disposition thereof, and pursuant thereto and in connection with any
Registration Statement filed by each Issuer hereunder, each Issuer shall:

 

(a)                         Prepare
and file with the Commission prior to the Filing Date, the Exchange
Registration Statement or if the Exchange Registration Statement is not filed
or is unavailable, a Shelf Registration as prescribed by Section 2 or 3,
and use its best efforts to cause each such Registration Statement to become
effective and remain effective as provided herein; provided that, if a
Shelf Registration is filed pursuant to Section 3, before filing any
Registration Statement or Prospectus or any amendments or supplements thereto,
the Issuers shall, if requested, afford the Holders of the Registrable Notes to
be registered pursuant to such Shelf Registration and their legal counsel a
reasonable opportunity to review copies of all such documents (including copies
of any documents to be incorporated by reference therein and all exhibits
thereto) proposed to be filed (in each case at least five Business Days prior
to such filing).  The Issuers shall not
file any such Registration Statement or Prospectus or any amendments or
supplements thereto if the Holders of a majority in aggregate principal amount
of the Registrable Notes covered by such Registration Statement shall
reasonably object thereto.

 

(b)                        Prepare
and file with the Commission such amendments and post-effective amendments to
each Shelf Registration or Exchange Registration Statement, as the case may be,

 

9

 

as may be
necessary to keep such Registration Statement continuously effective for the
Effectiveness Period or the Applicable Period, as the case may be; cause the
related Prospectus to be supplemented by any Prospectus supplement required by
applicable law, and as so supplemented to be filed pursuant to Rule 424
(or any similar provisions then in force) under the Securities Act; and comply
with the provisions of the Securities Act and the Exchange Act applicable to it
with respect to the disposition of all securities covered by such Registration
Statement as so amended or in such Prospectus as so supplemented.

 

(c)                         If
a Shelf Registration is filed pursuant to Section 3, notify each selling
Holder of Registrable Notes, its counsel and the managing underwriters, if any,
promptly (but in any event within two Business Days), and confirm such notice
in writing, (i) when a Prospectus or any Prospectus supplement or
post-effective amendment has been filed, and, with respect to a Registration
Statement or any post-effective amendment, when the same has become effective
(including in such notice a written statement that any Holder may, upon
request, obtain, without charge, one conformed copy of such Registration
Statement or post-effective amendment including financial statements and
schedules, documents incorporated or deemed to be incorporated by reference and
exhibits), (ii) of the issuance by the Commission of any stop order
suspending the effectiveness of a Registration Statement or of any order
preventing or suspending the use of any preliminary prospectus or the
initiation of any proceedings for that purpose, (iii) if at any time when
a prospectus is required by the Securities Act to be delivered in connection
with sales of the Registrable Notes the representations and warranties of any
Issuer contained in any agreement (including any underwriting agreement
contemplated by Section 5(n) hereof) cease to be true and correct in any
material respect, (iv) of the happening of any event, the existence of any
condition or any information becoming known that makes any statement made in
such Registration Statement or related Prospectus or any document incorporated
or deemed to be incorporated therein by reference untrue in any material
respect or that requires the making of any changes in, or amendments or
supplements to, such Registration Statement, Prospectus or documents so that,
in the case of the Registration Statement, it will not contain any untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein not misleading, and
that in the case of the Prospectus, it will not contain any untrue statement of
a material fact or omit to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading, and (v) of the
Issuers’ reasonable determination that a post-effective amendment to a
Registration Statement would be appropriate.

 

(d)                        If
a Shelf Registration is filed pursuant to Section 3, use their best
efforts to prevent the issuance of any order suspending the effectiveness of
such Shelf Registration or of any order preventing or suspending the use of a
Prospectus or suspending the qualification (or exemption from qualification) of
any of the Registrable Notes, and, if any such order is issued, to use its best
efforts to obtain the withdrawal of any such order at the earliest possible
date.

 

(e)                         If
a Shelf Registration is filed pursuant to Section 3 and if requested by
the managing underwriters, if any, or the Holders of a majority in aggregate
principal amount of the Registrable Notes being sold in connection with an
underwritten offering, (i) as promptly as practicable incorporate in a
prospectus supplement or post-effective amendment such

 

10

 

information or
revisions to information therein relating to such underwriters or selling
Holders as the managing underwriters, if any, or such Holders or their counsel
reasonably request to be included or made therein, (ii) make all required
filings of such prospectus supplement or such post-effective amendment as soon
as practicable after the Issuers have received notification of the matters to
be incorporated in such prospectus supplement or post-effective amendment, and (iii) supplement
or make amendments to such Registration Statement.

 

(f)                           If
a Shelf Registration is filed pursuant to Section 3, furnish to each
selling Holder of Registrable Notes who so requests and its counsel and each
managing underwriter, if any, without charge, one conformed copy of the
Registration Statement or Registration Statements and each post-effective
amendment thereto, including financial statements and schedules, and, if
requested, all documents incorporated or deemed to be incorporated therein by
reference and all exhibits.

 

(g)                        If
a Shelf Registration is filed pursuant to Section 3, deliver to each
selling Holder of Registrable Notes, its respective counsel, and the
underwriters, if any, without charge, as many copies of the Prospectus or
Prospectuses (including each form of preliminary prospectus) and each amendment
or supplement thereto and any documents incorporated by reference therein as
such Persons may reasonably request; and, subject to the last and penultimate
paragraphs of this Section 5, the Issuers hereby consent to the use of
such Prospectus and each amendment or supplement thereto by each of the selling
Holders of Registrable Notes and the underwriters or agents, if any, in
connection with the offering and sale of the Registrable Notes covered by such
Prospectus and any amendment or supplement thereto.

 

(h)                        Prior
to any public offering of Registrable Notes, use its best efforts to register
or qualify, and cooperate with the selling Holders of Registrable Notes, the
underwriters, if any, and their respective counsel in connection with the
registration or qualification (or exemption from such registration or
qualification) of such Registrable Notes or Exchange Notes, as the case may be,
for offer and sale under the securities or Blue Sky laws of such jurisdictions
within the United States as any selling Holder or the managing underwriter or
underwriters, if any, reasonably request in writing; provided that no
Issuer shall be required to (A) qualify generally to do business in any
jurisdiction where it is not then so qualified, (B) take any action that
would subject it to general service of process in any such jurisdiction where
it is not then so subject or (C) subject itself to taxation in excess of a
nominal dollar amount in any such jurisdiction where it is not then so subject.

 

(i)                            If
a Shelf Registration is filed pursuant to Section 3, cooperate with the
selling Holders of Registrable Notes and the managing underwriter or
underwriters, if any, to facilitate the timely preparation and delivery of
certificates representing Registrable Notes to be sold, which certificates
shall not bear any restrictive legends and shall be in a form eligible for
deposit with The Depository Trust Company (or any similar successor
depositary); and enable such Registrable Notes to be in such denominations and
registered in such names as the managing underwriter or underwriters, if any,
or the Holders may reasonably request.

 

(j)                            Use
its best efforts to cause the Registrable Notes covered by the Registration
Statement to be registered with or approved by such governmental agencies or

 

11

 

authorities as
may be necessary to enable the seller or sellers thereof or the underwriters,
if any, to consummate the disposition of such Registrable Notes, in which case
the Issuers will cooperate in all reasonable respects with the filing of such
Registration Statement and the granting of such approvals.

 

(k)                         If
a Shelf Registration is filed pursuant to Section 3, upon the occurrence
of any event contemplated by paragraph 5(c)(iv) or 5(c)(v) hereof,
as promptly as practicable prepare and (subject to Section 5(a) hereof)
file with the Commission, at the Issuers’ sole expense, a supplement or
post-effective amendment to the Registration Statement or any document
incorporated or deemed to be incorporated therein by reference, or file any
other required document so that, as thereafter delivered to the purchasers of
the Registrable Notes being sold thereunder, any such Prospectus will not
contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading.

 

(l)                            Use
its commercially reasonable efforts to cause the Registrable Notes covered by a
Registration Statement to be rated with the appropriate rating agencies, if so
requested by the Holders of a majority in aggregate principal amount of
Registrable Notes covered by such Registration Statement or the managing
underwriter or underwriters, if any.

 

(m)                      Prior
to the effective date of the first Registration Statement relating to the
Registrable Notes, (i) provide the Trustee with printed certificates for
the Registrable Notes or the Exchange Notes, as the case may be, in a form
eligible for deposit with the Depository Trust Company and (ii) provide a
CUSIP number for the Registrable Notes or the Exchange Notes, as the case may
be.

 

(n)                        In
connection with an underwritten offering of Registrable Notes pursuant to a
Shelf Registration, enter into an underwriting agreement as is customary in
underwritten offerings of debt securities similar to the Notes and take all
such other actions as are reasonably requested by the managing underwriter or
underwriters in order to expedite or facilitate the registration or the
disposition of such Registrable Notes and, in such connection, (i) make
such representations and warranties to the underwriters, with respect to the
business of the Issuers and their subsidiaries and the Registration Statement,
Prospectus and documents, if any, incorporated or deemed to be incorporated by
reference therein, in each case, as are customarily made by issuers to
underwriters in underwritten offerings of debt securities similar to the Notes,
and confirm the same in writing if and when requested; (ii) obtain the
opinion of counsel to the Issuers and updates thereof in form and substance
reasonably satisfactory to the managing underwriter or underwriters, addressed
to the underwriters covering the matters customarily covered in opinions
requested in underwritten offerings of debt securities similar to the Notes and
such other matters as may be reasonably requested by managing underwriters; and
(iii) obtain “cold comfort” letters and updates thereof in form and
substance reasonably satisfactory to the managing underwriter or underwriters
from the independent certified public accountants of the Issuers (and, if
necessary, any other independent certified public accountants of any subsidiary
of any Issuer or of any business acquired by the Company any Issuer for which
financial statements and financial data are, or are required to be, included in
the Registration Statement), addressed to each of the underwriters, such letters
to be in customary form and

 

12

 

covering
matters of the type customarily covered in “cold comfort” letters in connection
with underwritten offerings of debt securities similar to the Notes and such
other matters as are reasonably requested by the managing underwriter or
underwriters.  The above shall be done at
each closing under such underwriting agreement, or as and to the extent
required thereunder.

 

(o)                        If
a Shelf Registration is filed pursuant to Section 3, make available for
inspection by a representative of a majority in interest of the selling Holders
of such Registrable Notes being sold, any underwriter participating in any such
disposition of Registrable Notes, if any, and any attorney, accountant or other
agent retained by any such representative, (collectively, the “Inspectors”),
at the offices where normally kept, during reasonable business hours, all
financial and other records, pertinent corporate documents and properties of
each Issuer and its subsidiaries (collectively, the “Records”) as shall
be reasonably necessary to enable them to exercise any applicable due diligence
responsibilities, and cause the officers, directors and employees of each
Issuer and its subsidiaries to supply all information reasonably requested by
any such Inspector in connection with such Registration Statement.  Records which an Issuer determines, in good
faith, to be confidential and any Records which it notifies the Inspectors are
confidential shall not be disclosed by the Inspectors unless (i) the
disclosure of such Records is necessary to avoid or correct a material
misstatement or omission in such Registration Statement, (ii) the release
of such Records is ordered pursuant to a subpoena or other order from a court
of competent jurisdiction, (iii) the information in such Records has been
made generally available to the public other than as a result of a disclosure
or failure to safeguard by such Inspector or (iv) disclosure of such
information is, in the reasonable opinion of counsel for any Inspector,
necessary or advisable in connection with any action, claim, suit or
proceeding, directly or indirectly, involving or potentially involving such
Inspector and arising out of, based upon, related to, or involving this
Agreement, or any transactions contemplated hereby or arising hereunder.  Each selling Holder of such Registrable Notes
will be required to agree that information obtained by it as a result of such
inspections shall be deemed confidential and shall not be used by it as the
basis for any transactions in the securities of any Issuer unless and until
such is made generally available to the public. 
Each Inspector and each selling Holder of such Registrable Notes will be
required to further agree that it will, upon learning that disclosure of such
Records is sought in a court of competent jurisdiction pursuant to clause (ii) or
(iv) of the previous sentence or otherwise, give notice to the Issuers and
allow the Issuers to undertake appropriate action to obtain a protective order
or otherwise prevent disclosure of the Records deemed confidential at its sole
expense; provided, however, that under no circumstances will such Inspector or
Holder of Registrable Notes be required to participate in the efforts of
Issuers to prevent disclosure or withhold any Records duly requested by a court
of competent jurisdiction.

 

(p)                        Provide
or maintain an indenture trustee for the Registrable Notes or the Exchange
Notes, as the case may be, and cause the Indenture to be qualified under the
TIA not later than the effective date of the Exchange Offer or the first
Registration Statement relating to the Registrable Notes; and in connection
therewith, cooperate with the trustee under the Indenture and the Holders of
the Registrable Notes, to effect such changes to the Indenture as may be
required for the Indenture to be so qualified in accordance with the terms of
the TIA; and execute, and use its best efforts to cause such trustee to execute,
all documents as may be

 

13

 

required to
effect such changes, and all other forms and documents required to be filed
with the Commission to enable the Indenture to be so qualified in a timely
manner.

 

(q)                        Comply
with all applicable rules and regulations of the Commission and make
generally available to its securityholders earnings statements satisfying the
provisions of Section 11(a) of the Securities Act and Rule 158
thereunder (or any similar rule promulgated under the Securities Act) no
later than 45 days after the end of any 12-month period (or
90 days after the end of any 12-month period if such period is a
fiscal year) (i) commencing at the end of any fiscal quarter in which
Registrable Notes are sold to underwriters in a firm commitment or best efforts
underwritten offering and (ii) if not sold to underwriters in such an
offering, commencing on the first day of the first fiscal quarter of the
Company after the effective date of a Registration Statement, which statements
shall cover said 12-month periods.

 

(r)                           Upon
consummation of the Exchange Offer obtain an opinion of counsel to the Issuers,
in a form customary for underwritten transactions, addressed to the Trustee for
the benefit of all Holders of Registrable Notes participating in the Exchange
Offer that the Exchange Notes, the Guarantees and the related indenture
constitute legally valid and binding obligations of the Issuers enforceable
against the Issuers in accordance with their respective terms.

 

(s)                         If
the Exchange Offer is to be consummated, upon delivery of the Registrable Notes
by Holders to the Issuers (or to such other Person as directed by the Company)
in exchange for the Exchange Notes, the Issuers shall mark, or caused to be
marked, on such Registrable Notes that such Registrable Notes are being
cancelled in exchange for the Exchange Notes; in no event shall such
Registrable Notes be marked as paid or otherwise satisfied.

 

(t)                           Cooperate
with each seller of Registrable Notes covered by any Registration Statement and
each underwriter, if any, participating in the disposition of such Registrable
Notes and their respective counsel in connection with any filings required to
be made with the NASD.

 

(u)                        Use
its best efforts to take all other steps reasonably necessary to effect the
registration of the Registrable Notes covered by a Registration Statement contemplated
hereby.

 

The Issuers
may require each seller of Registrable Notes as to which any registration is
being effected to furnish to the Issuers such information regarding such seller
and the distribution of such Registrable Notes as the Issuers may, from time to
time, reasonably request.  The Issuers
may exclude from such registration the Registrable Notes of any seller who
fails to furnish such information within a reasonable time after receiving such
request.  Each seller as to which any
Shelf Registration Statement is being effected agrees to furnish promptly to
the Issuers all information required to be disclosed in order to make the
information previously furnished to the Issuers by such seller not materially
misleading.

 

Each Holder of
Registrable Notes agrees by acquisition of such Registrable Notes that, upon
receipt of any notice from the Issuers of the happening of any event of the
kind described in Section 5(c)(ii), 5(c)(iv) , or 5(c)(v) or a
notice given in accordance with the last paragraph of this Section 5, such
Holder will forthwith discontinue disposition of such Registrable Notes covered
by such Registration Statement or Prospectus or Exchange Notes to

 

14

 

be sold by
such Holder and, in each case, dissemination of such Prospectus until such
Holder’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 5(k), or until it is advised in writing (the “Advice”)
by the Company that the use of the applicable Prospectus may be resumed, and
has received copies of any amendments or supplements thereto.  In the event the Issuers shall give any such
notice, the Effectiveness Period shall be extended by the number of days during
such periods from and including the date of the giving of such notice to and
including the date when each seller of Registrable Notes covered by such
Registration Statement or Exchange Notes shall have received (x) the
copies of the supplemented or amended Prospectus contemplated by Section 5(k)
or (y) the Advice.

 

Notwithstanding
anything to the contrary in this Agreement, if at any time or from time to time
after the effective date of a Shelf Registration filed pursuant to Section 2,
the Company notifies in writing each Holder of Registrable Notes to be sold
pursuant to the Shelf Registration of the existence of a Potential Material
Event, the Holders shall not offer to sell any Registrable Notes pursuant to
the prospectus contained in such Shelf Registration from the time of the giving
of notice with respect to a Potential Material Event until the Holders receive
written notice from the Company that such Potential Material Event either has
been disclosed to the public or no longer constitutes a Potential Material
Event; provided, however, that (i) in no event shall the
effectiveness of such Shelf Registration be suspended for a period of more than
30 days (a “Suspension Period”), (ii) the Company may not declare
Suspension Periods more than two (2) times in any calendar year and (iii) in
each such case the Effectiveness Period of the Shelf Registration provided for
in Section 2 shall be extended by the number of days of the applicable
Suspension Period pursuant to the foregoing and Additional Interest shall not
apply during the Suspension Period to the extent that such Additional Interest
is due solely as a result of the imposition of the Suspension Period.

 

6.                  Registration Expenses

 

All fees and
expenses incident to the performance of or compliance with this Agreement by
the Issuers shall be borne by the Issuers whether or not the Exchange Offer or
a Shelf Registration is filed or becomes effective, including, without
limitation, (i) all registration and filing fees (including, without
limitation, (A) fees with respect to filings required to be made with the
NASD in connection with an underwritten offering and (B) fees and expenses
of compliance with state securities or Blue Sky laws (including, without
limitation, reasonable fees and disbursements of counsel in connection with
Blue Sky qualifications of the Registrable Notes or Exchange Notes and
determination of the eligibility of the Registrable Notes or Exchange Notes for
investment under the laws of such jurisdictions where the holders of
Registrable Notes are located, in the case of the Exchange Notes, (ii) printing
expenses, including, without limitation, expenses of printing certificates for
Registrable Notes or Exchange Notes in a form eligible for deposit with The
Depository Trust Company (or any similar successor depositary) and of printing prospectuses
if the printing of prospectuses is requested by the managing underwriter or
underwriters, if any, or by the Holders of a majority in aggregate principal
amount of the Registrable Notes included in any Registration Statement, (iii) reasonable
messenger, telephone and delivery expenses incurred in connection with the
Exchange Registration Statement and any Shelf Registration, (iv) fees and
disbursements of counsel for the Issuers and fees and disbursements of one firm
of special counsel for the

 

15

 

Purchasers in
connection with the Exchange Offer and for the sellers of Registrable Notes in
connection with any Shelf Registration, (v) fees and disbursements of all
independent certified public accountants referred to in Section 5(n)(iii) (including,
without limitation, the expenses of any special audit and “cold comfort”
letters required by or incident to such performance in accordance with this
Agreement), (vi) rating agency fees, (vii) Securities Act liability
insurance, if any Issuer desires such insurance, (viii) fees and expenses
of all other Persons retained by the Issuers, (ix) internal expenses of
the Issuers (including, without limitation, all salaries and expenses of
officers and employees of the Issuers performing legal or accounting duties),
(x) the expense of any annual or special audit, (xi) the fees and
expenses incurred in connection with the listing of the securities to be
registered on any securities exchange, (xi) the fees and disbursements of
underwriters, if any, customarily paid by issuers or sellers of securities (but
not including any underwriting discounts or commissions or transfer taxes, if
any, attributable to the sale of the Registrable Notes, which discounts,
commissions or taxes shall be paid by Holders of such Registrable Notes) and
(xiii) the expenses relating to printing, word processing and distributing
all Registration Statements, underwriting agreements, securities sales
agreements, indentures and any other documents necessary in order to comply
with this Agreement.

 

7.                  Indemnification

 

(a)                         Each
of the Issuers jointly and severally agrees to indemnify and hold harmless each
Holder of Registrable Notes, the officers, directors, employees and agents of
each such Person, and each Person, if any, who controls any such Person within
the meaning of either Section 15 of the Securities Act or Section 20
of the Exchange Act (each, a “Participant”), from and against any and
all losses, claims, damages and liabilities (including, without limitation, the
reasonable legal fees and other reasonable expenses actually incurred in
connection with any suit, action or proceeding or any claim asserted) caused
by, arising out of or based upon any untrue statement or alleged untrue
statement of a material fact contained in any Registration Statement or
Prospectus (as amended or supplemented if the Issuers shall have furnished any
amendments or supplements thereto) or caused by, arising out of or based upon
any omission or alleged omission to state therein a material fact required to
be stated therein or necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading, except insofar as
such losses, claims, damages or liabilities are caused by any untrue statement
or omission or alleged untrue statement or omission made in reliance upon and
in conformity with information relating to any Participant furnished to the
Issuers in writing by or on behalf of such Participant expressly for use
therein; provided, however, that the Issuers shall not be liable
if such untrue statement or omission or alleged untrue statement or omission
was contained or made in any preliminary prospectus and corrected in the
Prospectus or any amendment or supplement thereto and the Prospectus does not
contain any other untrue statement or omission or alleged untrue statement or
omission of a material fact that was the subject matter of the related
proceeding and any such loss, liability, claim, damage or expense suffered or incurred
by the Participants resulted from any action, claim or suit by any Person who
purchased Registrable Notes or Exchange Notes which are the subject thereof
from such Participant and it is established in the related proceeding that such
Participant failed to deliver or provide a copy of the Prospectus (as amended
or supplemented) to such Person with or prior to the confirmation of the sale
of such Registrable Notes or Exchange Notes sold to such Person if required by
applicable law, unless such failure to deliver or provide a copy of the
Prospectus (as

 

16

 

amended or
supplemented) was a result of noncompliance by the Issuers with Section 5
of this Agreement.

 

(b)                        Each
Participant will be required to agree, severally and not jointly, to indemnify
and hold harmless each Issuer, its directors and officers and each Person who
controls each Issuer within the meaning of Section 15 of the Securities
Act or Section 20 of the Exchange Act to the same extent as the foregoing
indemnity from the Issuers to each Participant, but only with reference to
information relating to any Participant furnished to the Issuers in writing by
such Participant expressly for use in any Registration Statement or Prospectus,
any amendment or supplement thereto, or any preliminary prospectus.  The liability of any Participant under this
paragraph shall in no event exceed the proceeds received by such Participant
from sales of Registrable Notes or Exchange Notes giving rise to such obligations.

 

(c)                         If
any suit, action, proceeding (including any governmental or regulatory
investigation), claim or demand shall be brought or asserted against any Person
in respect of which indemnity may be sought pursuant to either of the two
preceding paragraphs, such Person (the “Indemnified Person”) shall
promptly notify the Person against whom such indemnity may be sought (the “Indemnifying
Person”) in writing, and the Indemnifying Person, upon request of the
Indemnified Person, shall retain counsel reasonably satisfactory to the
Indemnified Person to represent the Indemnified Person and any others the
Indemnifying Person may reasonably designate in such proceeding and shall pay
the reasonable fees and expenses actually incurred by such counsel related to such
proceeding; provided, however, that the failure to so notify the
Indemnifying Person shall not relieve it of any obligation or liability which
it may have hereunder except to the extent that the indemnifying party is
unaware of the commencement of such action and such omission results in the
forfeiture by the indemnifying party of substantial rights and defenses.  In any such proceeding, any Indemnified
Person shall have the right to retain its own counsel, but the fees and
expenses of such counsel shall be at the expense of such Indemnified Person
unless (i) the Indemnifying Person and the Indemnified Person shall have
mutually agreed in writing to the contrary, (ii) the Indemnifying Person
has failed within a reasonable time to retain counsel reasonably satisfactory
to the Indemnified Person or (iii) the named parties in any such
proceeding (including any impleaded parties) include both the Indemnifying
Person and the Indemnified Person and the Indemnified Person shall have
reasonably concluded that there may be one or more legal defenses available to
it and/or other Indemnified Persons that are different from or in addition to
those available to any such Indemnifying Person.  It is understood that, unless there is a
conflict among Indemnified Persons, the Indemnifying Person shall not, in
connection with any proceeding or related proceedings in the same jurisdiction,
be liable for the fees and expenses of more than one separate firm (in addition
to any local counsel) for all Indemnified Persons, and that all such fees and
expenses shall be reimbursed as they are incurred.  Any such separate firm for the Participants
and control Persons of Participants shall be designated in writing by
Participants who sold a majority in interest of Registrable Notes sold by all
such Participants and any such separate firm for the Issuers, their respective
directors, officers and such control Persons of the Issuers shall be designated
in writing by the Company.  The
Indemnifying Person shall not be liable for any settlement of any proceeding
effected without its written consent, but if settled with such consent or if
there is a final non-appealable judgment for the plaintiff, the Indemnifying
Person agrees to indemnify any Indemnified Person from and against any loss or

 

17

 

liability by
reason of such settlement or judgment. 
Notwithstanding the foregoing sentence, if at any time an Indemnified
Person shall have requested an Indemnifying Person to reimburse the Indemnified
Person for reasonable fees and expenses actually incurred by counsel as
contemplated by the third sentence of this paragraph, the Indemnifying Person
agrees that it shall be liable for any settlement of any proceeding effected
without its consent if (i) such settlement is entered into more than
30 days after receipt by such Indemnifying Person of the aforesaid request
and (ii) such Indemnifying Person shall not have reimbursed the
Indemnified Person in accordance with such request prior to the date of such
settlement; provided, however, that the Indemnifying Person shall
not be liable for any settlement effected without its consent pursuant to this
sentence if the Indemnifying Person is contesting, in good faith, the request
for reimbursement.  No Indemnifying Person
shall, without the prior written consent of the Indemnified Person, effect any
settlement of any pending or threatened proceeding in respect of which any
Indemnified Person is or could have been a party and indemnity could have been
sought hereunder by such Indemnified Person, unless such settlement (A) includes
an unconditional release of such Indemnified Person, in form and substance
satisfactory to such Indemnified Person, from all liability on claims that are
the subject matter of such proceeding and (B) does not include any
statement as to an admission of fault, culpability or failure to act by or on
behalf of an Indemnified Person.

 

(d)                        If
the indemnification provided for in the first and second paragraphs of this Section 7
is unavailable to, or insufficient to hold harmless, an Indemnified Person in
respect of any losses, claims, damages or liabilities referred to therein, then
each Indemnifying Person under such paragraphs, in lieu of indemnifying such
Indemnified Person thereunder and in order to provide for just and equitable
contribution, shall contribute to the amount paid or payable by such
Indemnified Person as a result of such losses, claims, damages or liabilities
in such proportion as is appropriate to reflect the relative fault of the Indemnifying
Person or Persons on the one hand and the Indemnified Person or Persons on the
other in connection with the statements or omissions (or alleged statements or
omissions) that resulted in such losses, claims, damages or liabilities (or
actions in respect thereof) as well as any other relevant equitable
considerations.  The relative fault of
the parties shall be determined by reference to, among other things, whether
the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by
the Issuers on the one hand or by the Participants or such other Indemnified
Person, as the case may be, on the other, the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
statement or omission and any other equitable considerations appropriate under
the circumstances.

 

(e)                         The
parties agree that it would not be just and equitable if contribution pursuant
to this Section 7 were determined by pro  rata allocation
(even if the Participants were treated as one entity for such purpose) or by
any other method of allocation that does not take account of the equitable
considerations referred to in the immediately preceding paragraph.  The amount paid or payable by an Indemnified
Person as a result of the losses, claims, damages and liabilities referred to
in the immediately preceding paragraph shall be deemed to include, subject to
the limitations set forth above, any reasonable legal or other expenses
actually incurred by such Indemnified Person in connection with investigating
or defending any such action or claim. 
Notwithstanding the provisions of this Section 7, in no event shall
a Participant be required to

 

18

 

contribute any
amount in excess of the amount by which proceeds received by such Participant
from sales of Registrable Notes or Exchange Notes, as the case may be, exceeds
the amount of any damages that such Participant has otherwise been required to
pay by reason of such untrue or alleged untrue statement or omission or alleged
omission.  No Person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any Person who was not
guilty of such fraudulent misrepresentation.

 

(f)                           The
indemnity and contribution agreements contained in this Section 7 will be
in addition to any liability which the Indemnifying Persons may otherwise have
to the Indemnified Persons referred to above.

 

8.                  Rules 144 and 144A

 

Each of the
Issuers covenants that it will file the reports required to be filed by it
under the Securities Act and the Exchange Act and the rules and
regulations adopted by the Commission thereunder in a timely manner and, if at
any time it is not required to file such reports, it will, upon the request of
any Holder of Registrable Notes, make publicly available other information so
long as necessary to permit sales pursuant to Rule 144 and Rule 144A
under the Securities Act.  Each of the
Issuers further covenants, for so long as any Registrable Notes remain
outstanding, to make available to any Holder or beneficial owner of Registrable
Notes in connection with any sale thereof and any prospective purchaser of such
Registrable Notes from such Holder or beneficial owner, the information
required by Rule 144A(d)(4) under the Securities Act in order to
permit resales of such Registrable Notes pursuant to Rule 144A.

 

9.                  Underwritten Registrations

 

If any of the
Registrable Notes covered by any Shelf Registration are to be sold in an
underwritten offering, the investment banker or investment bankers and manager
or managers that will manage the offering will be selected by the Holders of a
majority in aggregate principal amount of such Registrable Notes included in
such offering and reasonably acceptable to the Issuers.

 

No Holder of
Registrable Notes may participate in any underwritten registration hereunder
unless such Holder (a) agrees to sell such Holder’s Registrable Notes on
the basis provided in any underwriting arrangements approved by the Persons
entitled hereunder to approve such arrangements and (b) completes and
executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements.

 

10.            Miscellaneous

 

(a)                         Remedies. 
In the event of a breach by any Issuer of any of its obligations under
this Agreement, each Holder of Registrable Notes, in addition to being entitled
to exercise all rights provided herein, in the Indenture, in the Note Purchase
Agreement, or granted by law, including recovery of damages, will be entitled
to specific performance of its rights under this Agreement.  Each Issuer agrees that monetary damages
would not be adequate compensation for any loss incurred by reason of a breach
by it of any of the provisions of this Agreement and

 

19

 

hereby further agrees that, in the event of any action for specific
performance in respect of such breach, it shall waive the defense that a remedy
at law would be adequate.

 

(b)                        No Inconsistent Agreements.  None of the Issuers has entered, as of the
date hereof, and none of the Issuers shall enter, after the date of this
Agreement, into any agreement with respect to any of its securities that is
inconsistent with the rights granted to the Holders of Registrable Notes in
this Agreement or otherwise conflicts with the provisions hereof.  None of the Issuers has entered and none of the
Issuers shall enter into any agreement with respect to any of its securities
which will grant to any Person piggy-back rights with respect to a Registration
Statement.

 

(c)                         Amendments and Waivers.  The provisions of this Agreement may not be
amended, modified or supplemented, and waivers or consents to departures from
the provisions hereof may not be given, otherwise than with the prior written
consent of the Holders of not less than a majority in aggregate principal
amount of the then outstanding Registrable Notes; provided, however,
that Section 7 and this Section 10(c) may not be amended,
modified or supplemented without the prior written consent of each Holder
(including any person who was a Holder of Registrable Notes or Exchange Notes,
as the case may be, disposed of pursuant to any Registration Statement).  Notwithstanding the foregoing, a waiver or
consent to depart from the provisions hereof with respect to a matter that
relates exclusively to the rights of Holders of Registrable Notes whose securities
are being tendered pursuant to the Exchange Offer or sold pursuant to a
Registration Statement and that does not directly or indirectly affect, impair,
limit or compromise the rights of other Holders of Registrable Notes may be
given by Holders of at least a majority in aggregate principal amount of the
Registrable Notes being tendered or being sold by such Holders pursuant to such
Registration Statement.

 

(d)                        Notices. 
All notices and other communications provided for or permitted hereunder
shall be made in writing by hand delivery, registered first-class mail,
next-day air courier or telecopier:

 

1.                             if to a Holder of Registrable Notes, at the
most current address of such Holder set forth on the records of the registrar
under the Indenture;

 

2.                             if
to the Issuers, as follows:

 

Jacobs Entertainment, Inc.

240 Main Street

Black Hawk, Colorado 80422

Facsimile No.: (303) 582-0239

Attention:  President

 

with copies to:

 

Baker & Hostetler LLP

1900 East 9th Street

3700 National Center

Cleveland, Ohio 44114

Facsimile No.: (216) 696-0740

Attention:  Robert A. Weible, Esq.

 

20

 

and

 

Jones & Keller, P.C.

1625 Broadway, Suite 1600

Denver, Colorado 80202

Facsimile No.: (303) 573-0769

Attention:  Samuel Wing

 

All such notices
and communications shall be deemed to have been duly given:  when delivered by hand, if personally
delivered; five Business Days after being deposited in the mail, postage
prepaid, if mailed; one Business Day after being timely delivered to a next-day
air courier guaranteeing overnight delivery; and when receipt is acknowledged
by the addressee, if telecopied.

 

Copies of all
such notices, demands or other communications shall be concurrently delivered
by the Person giving the same to the Trustee under the Indenture at the address
specified in such Indenture.

 

(e)                         Successors and Assigns.  This Agreement shall inure to the benefit of
and be binding upon the successors and assigns of each of the parties hereto
and the Holders; provided, however, that this Agreement shall not inure to the
benefit of or be binding upon a successor or assign of a Holder unless, and
only to the extent such successor or assign holds Registrable Notes.

 

(f)                           Counterparts.  This Agreement may be executed in any number
of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

(g)                        Headings. 
The headings in this Agreement are for convenience of reference only and
shall not limit or otherwise affect the meaning hereof.

 

(h)                        Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, AS APPLIED TO
CONTRACTS MADE AND PERFORMED WITHIN THE STATE OF NEW YORK, WITHOUT REGARD TO
PRINCIPLES OF CONFLICTS OF LAW.  EACH OF
THE PARTIES HERETO AGREES TO SUBMIT TO THE JURISDICTION OF THE COURTS OF THE
STATE OF NEW YORK IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS AGREEMENT.

 

(i)                            Severability.  If any term, provision, covenant or
restriction of this Agreement is held by a court of competent jurisdiction to
be invalid, illegal, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions set forth herein shall remain in full
force and effect and shall in no way be affected, impaired or invalidated, and

 

21

 

the parties hereto shall use their best efforts to find and employ an
alternative means to achieve the same or substantially the same result as that
contemplated by such term, provision, covenant or restriction.  It is hereby stipulated and declared to be
the intention of the parties that they would have executed the remaining terms,
provisions, covenants and restrictions without including any of such that may
be hereafter declared invalid, illegal, void or unenforceable.

 

(j)                            Notes Held by any Issuer or
their Affiliates.  Whenever the
consent or approval of Holders of a specified percentage of Registrable Notes
is required hereunder, Registrable Notes held by any Issuer or its affiliates
(as such term is defined in Rule 405 under the Securities Act) shall not
be counted in determining whether such consent or approval was given by the
Holders of such required percentage.

 

(k)                         Third Party Beneficiaries.  Holders of Registrable Notes are intended
third party beneficiaries of this Agreement and this Agreement may be enforced
by such Persons.

 

(l)                            Entire Agreement.  This Agreement, together with the Note Purchase
Agreement and the Indenture, is intended by the parties as a final and
exclusive statement of the agreement and understanding of the parties hereto in
respect of the subject matter contained herein and therein and any and all
prior oral or written agreements, representations, or warranties, contracts,
understandings, correspondence, conversations and memoranda among the
Purchasers on the one hand and the Issuers on the other, or between or among
any agents, representatives, parents, subsidiaries, affiliates, predecessors in
interest or successors in interest with respect to the subject matter hereof
and thereof are merged herein and replaced hereby.

 

(m)                      Joint and Several Obligations.  All of the obligations of the Issuers
hereunder shall be joint and several obligations of each of them.

 

22

 

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

 

	
   

  	
  JACOBS
  ENTERTAINMENT, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jeffrey
  P. Jacobs

  	
   

  
	
   

  	
   

  	
  Name:  Jeffrey P. Jacobs

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  
	
   

  	
  GUARANTORS:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  BLACK HAWK
  GAMING & DEVELOPMENT

  COMPANY, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Stephen
  R. Roark

  	
   

  
	
   

  	
   

  	
  Name:  Stephen R. Roark

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  
	
   

  	
  GOLD DUST
  WEST CASINO, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Stephen
  R. Roark

  	
   

  
	
   

  	
   

  	
  Name:  Stephen R. Roark

  
	
   

  	
   

  	
  Title:  Vice President

  
	
   

  	
   

  
	
   

  	
  GILPIN
  VENTURES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Stephen
  R. Roark

  	
   

  
	
   

  	
   

  	
  Name:  Stephen R. Roark

  
	
   

  	
   

  	
  Title:  President

  
										

 

S-1

 

	
   

  	
  GILPIN HOTEL
  VENTURE

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  GILPIN
  VENTURES, INC., its partner

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Stephen
  R. Roark

  	
   

  
	
   

  	
   

  	
  Name:  Stephen
  R. Roark

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  BLACK HAWK
  GAMING &

  
	
   

  	
   

  	
  DEVELOPMENT
  COMPANY, INC., its

  
	
   

  	
  partner

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Stephen
  R. Roark

  	
   

  
	
   

  	
   

  	
  Name:  Stephen R. Roark

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BLACK
  HAWK/JACOBS ENTERTAINMENT

  LLC

  
	
   

  	
  By:

  	
  BLACK HAWK
  GAMING & 

  
	
   

  	
  DEVELOPMENT
  COMPANY, INC., its manager

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Stephen
  R. Roark

  	
   

  
	
   

  	
   

  	
  Name:  Stephen R. Roark

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  DIVERSIFIED
  OPPORTUNITIES GROUP LTD.

  
	
   

  	
  By:

  	
  JACOBS
  ENTERTAINMENT, INC., its

  
	
   

  	
  manager

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Stephen
  R. Roark

  	
   

  
	
   

  	
   

  	
  Name:  Stephen R. Roark

  
	
   

  	
   

  	
  Title:  Chief Financial Officer

  
	
   

  	
   

  	
   

  
	
   

  	
  JALOU L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President and Manager

  
												

 

 

	
   

  	
  HOUMA TRUCK
  PLAZA & CASINO, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President and Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  BAYOU VISTA
  TRUCK PLAZA AND CASINO,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/
  Ian M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President and Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  LUCKY
  MAGNOLIA TRUCK STOP AND

  CASINO L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President and Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  JALOU-CASH’S
  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President and Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  RACELAND
  TRUCK PLAZA AND CASINO,

  L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President and Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  JALOU II INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name: Ian M.
  Stewart

  
	
   

  	
   

  	
  Title:
  President

  
										

 

 

	
   

  	
  WINNER’S
  CHOICE CASINO, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
  JACE, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COLONIAL
  DOWNS, L.L.C.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  JRJ
  PROPERTIES, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President and Manager

  
	
   

  	
   

  	
   

  
	
   

  	
  COLONIAL
  HOLDINGS, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name: Ian M.
  Stewart

  
	
   

  	
   

  	
  Title:
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  COLONIAL
  DOWNS, LP

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  STANSLEY
  RACING CORP., its general

  
	
   

  	
  Partner

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President

  
										

 

 

	
   

  	
  STANSLEY
  RACING CORP.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:  Ian M. Stewart

  
	
   

  	
   

  	
  Title:  President

  
	
   

  	
   

  	
   

  
	
   

  	
  JALOU BREAUX
  BRIDGE, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  JALOU
  EUNICE, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JALOU OF
  JEFFERSON, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
       /s/ Ian
  M. Stewart

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00081-of-00352.parquet"}]]