Document:

Intercreditor Agreement

 Exhibit 10.7 
  
 INTERCREDITOR AGREEMENT 
  
 between 
  
 WELLS FARGO FOOTHILL, INC. 
  
 and 
  
 U.S. BANK NATIONAL
ASSOCIATION 
  
 Dated as of June 24, 2003 

 INTERCREDITOR AGREEMENT 
  
 THIS INTERCREDITOR AGREEMENT dated as of June 24, 2003 (this “Agreement”) is made by and among U.S. BANK
NATIONAL ASSOCIATION, solely in its capacity as trustee under the Indenture (as defined below) and Secured Party under the Collateral Agreements (as defined in the Indenture) (the “Trustee”) and WELLS FARGO FOOTHILL, INC., a
California (the “Credit Facility Lender”), as lender under the Credit Agreement (as defined in the Indenture). 
  
 RECITAL 
  
 A. The Old Evangeline Downs, L.L.C., a Louisiana limited liability company (“Borrower”), The Old Evangeline Downs Capital Corp., a
Delaware corporation (“Capital” and, together with Borrower, the “Issuers”), the guarantors from time to time party thereto (the “Guarantors”) and the Trustee entered into an Indenture, dated as of
February 25, 2003 (the “Indenture”), pursuant to which indebtedness was incurred by the Issuers, the repayment of which is guaranteed by the Guarantors and secured by security interests in and liens on certain now owned and
hereafter acquired assets and properties described in the Collateral Agreements (as in effect on the date of this Agreement, the “Indenture Collateral”). 
  
 B. As of the date hereof, Issuers and the Credit Facility Lender entered into a Loan and Security Agreement (as such may be
amended, restated, supplemented or otherwise modified from time to time after the date hereof, the “Credit Facility Agreement”), pursuant to which the Credit Facility Lender agreed, upon the terms and conditions stated therein, to
make loans and advances to, or to issue letters of credit (or guaranties in respect thereof) for the account of, Issuers, in an aggregate principal and undrawn amount not to exceed the Maximum Credit Facility Amount (as defined in the Indenture as
in effect on the date hereof), the repayment of which is secured by security interests in and liens on certain Indenture Collateral pursuant to the Credit Facility Agreement and the collateral security documents, instruments and guaranties executed
and delivered in connection therewith by one or more of Issuers and any Guarantor, together with such other agreements, instruments and certificates entered into in connection with the Credit Facility Agreement (as such may be amended, restated,
supplemented or otherwise modified from time to time after the date hereof, together with the Credit Facility Agreement, the “Credit Facility Loan Documents”). 
  
 C. One of the conditions of the Credit Facility Agreement is that the priority of the security interests and liens on the
Collateral under the Credit Facility Loan Documents be senior to the security interests in and liens on the Indenture Collateral in the manner and to the extent provided for in this Agreement. 
  
 D. The Trustee and the Credit Facility Lender desire to enter into this
Agreement concerning their respective rights with respect to the priority of their respective security interests in and liens on the Collateral. 
  
 Intercreditor Agreement 

 E. The terms of the Indenture permit Issuers to enter into the Credit Facility Agreement and, in
connection therewith, authorize and direct the Trustee to enter into an intercreditor agreement substantially in the form of this Agreement. 
  
 NOW, THEREFORE, the Parties hereto hereby agree as follows: 
  
 ARTICLE I 
  
 DEFINITIONS 
  
 Section 1.1 Terms Defined Above and in the Recitals. As used in this Agreement, the following terms shall have the respective meanings indicated in the initial paragraph of this Agreement and in the above Recitals: 
  
 “Agreement” 
 “Credit Facility Lender” 
 “Credit Facility Agreement” 
 “Credit Facility Loan Documents” 
 “Guarantors” 
 “Indenture”

 “Indenture Collateral” 
 “Trustee” 
  
 Section 1.2 Other
Definitions. As used in this Agreement, the following terms shall have the meanings set forth below: 
  
 “Collateral” shall mean, collectively, all of the Indenture Collateral (other than the Collateral Accounts and the Excess Cash Flow
Account, it being agreed that the Collateral Accounts and the Excess Cash Flow Account shall only be granted in favor of the Trustee to secure the obligations of the Issuer and the Guarantors under the Indenture Documents) in which the Credit
Facility Lender is granted a security interest or lien to secure the Credit Facility Indebtedness. 
  
 “Credit Facility Indebtedness” shall mean all present and future obligations, contingent or otherwise, of Issuers and the Guarantors to
the Credit Facility Lender arising under or pursuant to the Credit Facility Loan Documents, including, in each case, interest, fees, and expenses accruing after the initiation of any Insolvency Proceeding (irrespective of whether allowed as a claim
in such proceeding), and including the secured claims of the Credit Facility Lender in respect of the Collateral in any Insolvency Proceeding. 
  

 Intercreditor Agreement 

 “Enforcement Action” shall mean, with respect to any Party, (a) commencement of any
action, whether judicial or otherwise, for the enforcement of such Party’s rights and remedies as a secured creditor with respect to the Collateral, including, without limitation, commencement of any receivership or proceedings or Foreclosure
Action against, or any other sale of, collection on, or disposition of, any Collateral; or (b) notifying any third party account debtors of Issuers or any of its subsidiaries to make payment directly to such Party or to any of its agents or other
Persons acting on its behalf. 
  
 “Enforcement
Event” shall mean the occurrence and continuance of an “Event of Default” as defined under Section 6 of the Indenture. 
  
 “Enforcement Event Notice” shall have the meaning ascribed thereto in Section 3.2. 
  
 “Entitled Party” shall have the meaning ascribed thereto in
Section 4.1(a). 
  
 “Event of Default” shall have
the meaning ascribed thereto in the Credit Facility Agreement. 
  
 “Financing Documents” shall mean the Indenture Documents and the Credit Facility Loan Documents. 
  
 “Foreclosure Action” shall mean any action to foreclose upon or enforce a Lien against any of the Collateral, including (a) commencing
judicial or non-judicial foreclosure proceedings, (b) exercising any rights afforded to secured creditors in a case under the Bankruptcy Law with respect to the Collateral, or (c) taking any action under the Bankruptcy Law that directly relates to
or directly affects any such Collateral, other than any such action that relates to or affects all or substantially all of the property of the bankruptcy estate. 
  
 “Fully Paid” shall mean (a) in connection with the Subordinated Lien Indebtedness, the payment in cash or
cash equivalents in full of all obligations (other than contingent, unliquidated indemnity obligations that survive payment in full) under the Indenture Documents, plus related interest, fees, costs and expenses and (b) in connection with the Credit
Facility Indebtedness, the payment in full in cash of the principal amount of all obligations not to exceed the Maximum Credit Facility Amount, plus related interest, fees, costs and expenses. 
  
 “Indenture Documents” shall mean the Indenture, the Notes,
the Collateral Agreements and the Registration Rights Agreement, and such other agreements, instruments and certificates executed and delivered (or issued) by the Issuers or the Guarantors pursuant to the Indenture, as any or all of the same may be
amended, restated, supplemented or otherwise modified from time to time. 
  

 Intercreditor Agreement 

 “Insolvency Proceeding” shall mean any proceeding for the purposes of dissolution,
winding up, liquidation, arrangement or reorganization of any Issuer, any Guarantor, or any other subsidiary of any Issuer, or their respective successors or assigns, whether in bankruptcy, insolvency, arrangement, reorganization or receivership
proceedings, or upon an assignment for the benefit of creditors or any other marshaling of the assets and liabilities of any Issuer, any Guarantor, or any other subsidiary of any Issuer, or their respective successors or assigns. 
  
 “Lien Priority” shall mean, with respect to any Lien in and
to the Collateral, the order of priority of such Lien as specified in Sections 2.1 and 2.2. 
  
 “Party” shall mean any signatory to this Agreement. 
  
 “Secured Liabilities” shall mean the Subordinated Lien Indebtedness and the Maximum Credit Facility Amount of Credit Facility
Indebtedness, plus interest, fees, costs and expenses relating thereto. 
  
 “Subordinated Lien Indebtedness” shall mean all present and future obligations, contingent or otherwise, of Issuers and the Guarantors to the Trustee or Holders arising under or pursuant to the Indenture Documents,
including, in each case, interest, fees and expenses accruing after the initiation of any Insolvency Proceeding (irrespective of whether allowed as a claim in such proceeding), and including the secured claims of the Trustee or the Holders in
respect of the Indenture Collateral in any Insolvency Proceeding. 
  
 Section 1.3 Indenture Definitions. All other capitalized terms that are used but not defined herein shall have the respective meaning indicated in the Indenture, as in effect on February 25, 2003. 
  
 Section 1.4 Miscellaneous. All definitions herein (whether set forth
herein directly or by reference to definitions in other documents) shall be equally applicable to both the singular and the plural forms of the terms defined. The words “hereof,” “herein” or “hereunder” and words of
similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement. Article and section references are to articles and sections of this Agreement unless otherwise specified. The
term “including” shall mean “including without limitation.” 
  
 ARTICLE II 
  
 LIEN PRIORITY

  
 Section 2.1 Agreement to Subordinate Liens. The Trustee
hereby agrees that all Liens of the Trustee for the benefit of itself and the Holders in and to the Collateral are and shall be junior to and subordinate in priority to the Liens of the Credit 
  

 Intercreditor Agreement 

 Facility Lender in and to the Collateral up to the Maximum Credit Facility Amount of Credit Facility Indebtedness, plus
interest, indemnities, fees, costs and expenses related thereto; provided, that the rights of the Credit Facility Lender under this Agreement shall be void and of no further force and effect if, and only to the extent, that the Liens of the Credit
Facility Lender in and to the Collateral are avoided, disallowed, set aside or otherwise invalidated in any action or proceeding by a court, tribunal or administrative agency of competent jurisdiction and such avoidance, disallowance, set aside or
other invalidation is permanent and is not later reversed. The subordination of the Liens of the Trustee for the benefit of itself and the Holders in and to the Collateral in favor of the Credit Facility Lender provided for herein shall not be
deemed to (a) subordinate the Liens of the Trustee to the Liens of any other Person or (b) subordinate the Subordinated Lien Indebtedness to any other Indebtedness of the Issuers or any of the Guarantors, including the Credit Facility Indebtedness,
or (c) subordinate the Liens of the Trustee for the benefit of itself and the Holders in and to any Indenture Collateral other than the Collateral. 
  
 Section 2.2 Non-Contest; Excluded Assets. Each Party agrees that it will not attack or contest the validity, perfection, priority or enforceability
of the Liens of the other Party or finance or urge any other Person to do so, provided that either Party may enforce its rights and privileges hereunder without being deemed to have violated this provision. Any provision contained in this Agreement
to the contrary notwithstanding, the terms and conditions of this Agreement shall not apply to any property or assets (including property or assets that do not constitute Collateral) as to which one Party has a Lien and as to which the other Party
does not have a Lien. 
  
 Section 2.3 Exercise of Rights.

  
 (a) The Trustee may exercise, and nothing herein shall
constitute a waiver of, any right it may have at law or equity to receive notice of, or to commence or join with any creditor in commencing any Insolvency Proceeding; provided, that the exercise of any such right by the Trustee shall be (i) subject
to the Lien Priority and application of proceeds of Collateral as provided in Section 3.4 and (ii) subject to the provisions of Sections 3.1 and 3.2. 
  
 (b) Notwithstanding any other provision hereof, the Trustee may make such demands or file such claims as may be necessary to prevent the waiver or bar of
such claims under applicable statutes of limitations or other statutes, court orders or rules of procedure. 
  
 Section 2.4 Priority of Liens. Irrespective of any priority otherwise available to the Trustee by law or agreement or irrespective of the order of
recording of mortgages, financing statements, security agreements or other instruments, and irrespective of the descriptions of Collateral contained in the Financing Documents, including any financing statements, each of the Trustee and the Credit
Facility Lender hereby agree among themselves that their respective Liens in the Collateral shall be governed by the Lien Priority, which shall be controlling in the event of any conflict between this Agreement and any of the Financing Documents.

  

 Intercreditor Agreement 

 ARTICLE III 
  
 ACTIONS OF THE PARTIES 
  
 Section 3.1 Limitation on Certain Actions. Subject to Section 3.2, until the first date on which the Maximum Credit Facility Amount of Credit
Facility Indebtedness is Fully Paid, the Trustee will not, without the prior written consent of the Credit Facility Lender, take any Enforcement Action. 
  
 Section 3.2 Standstill Period. If an Enforcement Event has occurred and is continuing, the Trustee, on behalf of the holders of the Notes, may give
the Credit Facility Lender written notice thereof (an “Enforcement Event Notice”). If (a) such Enforcement Event is continuing for more than 180 consecutive days after the delivery of such Enforcement Event Notice (the “Expiry
Date”), (b) the Credit Facility Lender has not, on or before the Expiry Date, commenced (and notified the Trustee that the Credit Facility Lender has commenced) one or more Enforcement Actions, and (c) any Issuer or Guarantor against which the
Trustee’s proposed Enforcement Action is to be taken is not the subject of an Insolvency Proceeding, then the Trustee may, subject to the Lien Priority and the application of all proceeds of the Collateral in accordance with Section 3.4, take
one or more Enforcement Actions. If (i) the Credit Facility Lender has commenced any Enforcement Action on or prior to the Expiry Date and, at any time after the Expiry Date, is no longer pursuing one or more Enforcement Actions, (ii) no Insolvency
Proceeding is pending against any Issuer or Guarantor against which the Trustee’s proposed Enforcement Action is to be taken, and (iii) the Enforcement Event that was the subject of, or existing on the date of, the Enforcement Event Notice is
then continuing, then the Trustee may, subject to the Lien Priority and the prior application of all proceeds of the Collateral in accordance with Section 3.4, take one or more Enforcement Actions. Except as expressly provided for in this Agreement,
nothing in this Agreement shall prevent the Parties hereto from exercising any other remedy, or taking any other action, under any of the Financing Documents. 
  

Section 3.3 Foreclosure. Any Party taking a permitted Foreclosure Action may enforce its Financing Documents independently as to Issuers and
each Guarantor and independently of any other remedy or security such Party at any time may have or hold in connection with its Secured Liabilities, and, except as provided herein, it shall not be necessary for such Party to marshal assets in favor
of any other Party hereto or any other Person or to proceed upon or against or exhaust any other security or remedy before proceeding to enforce the Financing Documents. Each of the Trustee (for so long as the Credit Facility Indebtedness is not
Fully Paid) and the Credit Facility Lender (for so long as the Trustee and the holders of the Notes are owed any Subordinated Lien Indebtedness) expressly waives any right to require the other Party to marshal assets in favor of any Party or to
proceed against any Collateral provided by Issuers or any Guarantor, or any other property, assets, or collateral provided by Issuers, any Guarantor, or any other Person, and agrees that the Party taking such permitted Foreclosure Action may proceed
against Issuers, any Guarantor, any Collateral or other property, assets, or 
  

 Intercreditor Agreement 

 other collateral provided by any of them or by any other Person, in such order as it shall determine in its sole and
absolute discretion. The foregoing notwithstanding: (a) with respect to the sale or other disposition of any Collateral governed by Article 9 of the Uniform Commercial Code, the Party conducting such sale or other disposition agrees in favor of the
other Party that every aspect of such sale or other disposition, including the method, manner, time, place, and terms, must be commercially reasonable, (b) with respect to the sale or other disposition of any other Collateral, the Party conducting
such sale or other disposition agrees in favor of the other Party that such sale or other disposition shall be conducted according to the normal practices of commercial real property secured lenders generally, (c) with respect to the sale or other
disposition of any Collateral by either Party, such Party agrees to provide the other Party with such written notice as it is required by applicable law (including, if applicable, the Uniform Commercial Code) to provide to Issuers or the Guarantors
(without regard to whether Issuers or the Guarantors have waived their entitlement to receive such notice), and (d) the Credit Facility Lender agrees that, at such time as the Credit Facility Indebtedness is Fully Paid, the Credit Facility Lender
thereupon promptly shall cease all further Foreclosure Actions. 
  
 Section 3.4 Distribution. Each Party agrees that, upon any distribution as a result of a Foreclosure Action or other Enforcement Action, or the receipt of any other payment or distribution with respect to the Collateral, the proceeds
thereof shall be distributed in the order of, and in accordance with, the following priorities: 
  
 (a) FIRST: 
  
 (i) if the Foreclosure Action or other Enforcement Action is taken by the Credit Facility Lender, to the payment of all reasonable costs
and expenses, commissions and taxes of the Credit Facility Lender incurred in connection with taking any such Foreclosure Action or other realization, including all reasonable expenses (including attorneys fees and expenses), liabilities and
advances made or incurred by the Credit Facility Lender in connection therewith; 
  
 (ii) if the Foreclosure Action is taken and entitled to be taken hereunder by the Trustee, to the payment of all reasonable costs and
expenses, commissions and taxes of the Trustee incurred in connection with taking any such Foreclosure Action or other realization, including all reasonable expenses (including attorneys fees and expenses), liabilities and advances made or incurred
by the Trustee in connection therewith; 
  
 (b) SECOND, to the
Credit Facility Lender, until the first date on which the Credit Facility Indebtedness is Fully Paid; and 
  
 (c) THIRD, to the Trustee, until all Subordinated Lien Indebtedness is Fully Paid. 
  

 Intercreditor Agreement 

 Section 3.5 Notice of Certain Events. Each Party agrees that it will notify the other, in writing,
(a) if it receives actual notice of the occurrence of an Event of Default or an Enforcement Event, not later than 30 days after the date of any such occurrence, and (b) at least 15 days prior to exercising any remedies with respect to any portion of
the Collateral. Notwithstanding the foregoing, the Credit Facility Lender shall not be obligated to provide such prior written notice if exigent circumstances require that the Credit Facility Lender act immediately in order to preserve, protect, or
obtain possession or control over the Collateral or any portion thereof; provided, that, if such exigent circumstances require the Credit Facility Lender to so act immediately, the Credit Facility Lender agrees to provide the Trustee with written
notice as soon as practicable following the Credit Facility Lender first exercising any of its secured creditor remedies with respect to the Collateral, and no Party shall incur any liability to the other under this Section 3.5 as a result of the
failure of such Party to provide any such notice so long as the failure to so provide such notice was not the result of wilful misconduct, bad faith or gross negligence. 
  
 ARTICLE IV 
  
 ENFORCEMENT OF PRIORITIES 
  
 Section 4.1 In Furtherance of Lien Priorities. Each Party agrees as follows: 
  
 (a) All payments or distributions of or with respect to the Collateral that are received by any Party contrary to the
provisions of this Agreement (including, without limitation, payments or distributions in connection with any Insolvency Proceeding) shall be segregated from other funds and property held by such Party and shall be held in trust for the Party
entitled thereto in accordance with the provisions of Section 3.4 hereof (the “Entitled Party”) and such Party shall forthwith pay over such remaining proceeds to the Entitled Party in the same form as so received (with any necessary
endorsement) to be applied (in the case of cash) or held as Collateral (in the case of non-cash property or securities) in accordance with the provisions hereof and the provisions of the applicable Financing Documents. 
  
 (b) After the first date on which the Credit Facility Indebtedness is Fully
Paid, the Credit Facility Lender will promptly execute and deliver to the Trustee all further instruments and documents, and take all further acts that may be necessary, or that the Trustee may reasonably request, to permit the Trustee to evidence
the termination of the Lien Priority hereunder, or in furtherance thereof; provided, that the Credit Facility Lender shall not be required to pay over any payment or distribution, execute any instruments or documents, or take any other action
referred to in this clause (b) to the extent that such action would contravene any law, order or other legal requirement, and in the event of a controversy or dispute, the Credit Facility Lender may interplead any payment or distribution in any
court of competent jurisdiction. 
  

 Intercreditor Agreement 

 (c) Each Party is hereby authorized to demand specific performance of this Agreement, whether or not
Issuers or any Guarantor shall have complied with any of the provisions hereof applicable to it, at any time when any other Party shall have failed to comply with the provisions of this Agreement applicable to it, provided, that the remedy of
specific performance shall not be available, and the asserting Party shall be free to assert any and all legal defenses it may possess, if such remedy would result in, or otherwise constitute, a violation of the Employee Retirement Income Security
Act of 1974, as amended. Each Party hereto hereby irrevocably waives any defense based on the adequacy of a remedy at law, which might be asserted as a bar to such remedy of specific performance. Upon the execution of this Agreement, (i) Trustee and
Credit Facility Lender shall enter into a control agreement or control agreements (“New Control Agreements”) with respect to the deposit accounts (other than the Excess Cash Flow Account) of any Issuer held at Bank One, NA or any other
financial institution, constituting part of the Collateral, in form and substance reasonably acceptable to Trustee and Credit Facility Lender, which shall supercede any existing control agreements between Trustee and Bank One or such financial
institution, and (ii) Trustee agrees to terminate such existing control agreements. 
  
 (d) This Agreement shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Secured Liabilities is, other than as a result of any intentional fraud or gross
negligence of the applicable Party, rescinded or must otherwise be returned by the applicable Party upon the insolvency, bankruptcy or reorganization of any Issuer or any Guarantor or otherwise, all as though such payment had not been made.

  
 Section 4.2 Perfection of Possessory or Control Security
Interests. For the limited purpose of perfecting the security interests of the Parties in those types or items of Collateral in which a security interest only may be perfected by possession or control (including perfection of a security interest
in deposit accounts under Article 9 of the Uniform Commercial Code), each Party hereby appoints the other as its representative for the limited purpose of possessing or controlling on its behalf any such Collateral that may come into the possession
or control of such other Party from time to time, and each Party agrees to act as the other’s representative for such limited purpose of perfecting the other’s security interest by possession or control through a representative, provided
that neither Party shall incur any liability to the other by virtue of acting as the other’s representative hereunder. In this regard, any Party that is in possession or control of any such item of Collateral agrees that if it elects to
relinquish possession or control of such item of Collateral it shall deliver possession or control thereof to the other Party; provided, that no Party shall be required to deliver any such item of Collateral or take any other action referred to in
this section to the extent that such action would contravene any law, order or other legal requirements, and in the event of a controversy or dispute, such Party may interplead any item of Collateral in any court of competent jurisdiction.

  
 Section 4.3 Control of Dispositions of Collateral and
Effect thereof on Junior Liens. 
  

 Intercreditor Agreement 

 (a) Each Party hereby agrees that any Uniform Commercial Code collection, sale, or other disposition of
Collateral by the Credit Facility Lender shall be free and clear of any Lien of the Trustee in such Collateral; provided, that the Trustee shall retain a Lien (having the same priority as the Lien it previously had on the item of Collateral that was
collected, sold or otherwise disposed of) on the proceeds of such collection, sale, or other disposition (except to the extent such proceeds are applied to the Credit Facility Indebtedness in accordance with Section 3.4). 
  
 (b) To the extent reasonably requested by either Party, the other Party will
cooperate in providing any necessary or appropriate releases to permit a collection, sale, or other disposition of Collateral, as provided in subsection (a) of this Section 4.3, by the Party holding the senior Lien therein free and clear of the
other Party’s junior Lien. 
  
 ARTICLE V 
  
 MISCELLANEOUS 
  
 Section 5.1 Rights of Subrogation. The Trustee agrees that no payment or distribution to the Credit Facility Lender
pursuant to the provisions of this Agreement shall entitle the Trustee to exercise any rights of subrogation in respect thereof until the first date on which the Credit Facility Indebtedness shall have been Fully Paid. 
  
 Section 5.2 Further Assurances. The Parties will, at their own expense
and at any time and from time to time, promptly execute and deliver all further instruments and documents, and take all further action, that may be necessary or desirable, or that any Party may reasonably request, in order to protect any right or
interest granted or purported to be granted hereby or to enable any Party to exercise and enforce its rights and remedies hereunder; provided, that no Party shall be required to pay over any payment or distribution, execute any instruments or
documents, or take any other action referred to in this Section 5.2 to the extent that such action would contravene any law, order or other legal requirement binding upon such Party, and in the event of a controversy or dispute, any Party may
interplead any payment or distribution in any court of competent jurisdiction, without further responsibility in respect of such payment or distribution under this Section 5.2. 
  
 Section 5.3 Defenses Similar to Suretyship Defenses. All rights, interests, agreements and obligations of each of the
Parties under this Agreement, shall remain in full force and effect irrespective of: 
  
 (a) any change in the time, manner or place of payment of, or in any other term of, all or any of the Secured Liabilities, or any other amendment or waiver of or any consent to departure from the Financing Documents,
provided, that this clause (a) shall not apply to, and the Trustee’s Liens in the Collateral shall not be subordinated in priority by virtue of this Agreement to, the Credit Facility Lender’s Liens therein if and to 
  

 Intercreditor Agreement 

 the extent that the principal amount of the Credit Facility Indebtedness is increased, without the express written
consent of the Trustee, to an amount in excess of the Maximum Credit Facility Amount: or 
  
 (b) any exchange, release, non-enforcement or non-perfection of any Party’s Liens with respect to any Collateral, or any release, amendment or waiver of or consent to departure from any guaranty, for all or any
of the Secured Liabilities; or 
  
 (c) any failure by any Party
to marshal assets in favor of any other Party or any other Person or to proceed upon or against or exhaust any security or remedy before proceeding to enforce the Financing Documents. 
  
 Section 5.4 Waiver. Except as otherwise provided in Section 2.1 and the other provisions hereof, to the maximum
extent permitted by applicable law, the Trustee hereby waives, solely with respect to the Collateral to which the Lien Priority relates, any failure, omission, delay or lack on the part of the Credit Facility Lender to enforce, assert or exercise
any right, power or remedy conferred on the Credit Facility Lender in any of the Credit Facility Loan Documents or the inability of the Credit Facility Lender to enforce any provision of the Credit Facility Loan Documents or this Agreement.

  
 Section 5.5 Amendments, Etc. No amendment or waiver of
any provision of this Agreement nor consent to any departure by any Party shall in any event be effective unless the same shall be in writing and signed by each Party, and then such waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given. 
  
 Section 5.6
Addresses for Notices. All demands, notices and other communications provided for hereunder shall be in writing and, if to the Trustee, mailed or sent by telecopy or delivered to it, addressed to it as follows: 
  
 U.S. Bank National Association, as Trustee 
 180 East 5th Street 
 St. Paul, MN 55101

 Attention: Corporate Trust Department 
 Facsimile: (651) 244-0711 
  
 and if to the Credit Facility Lender,
mailed or sent by telecopy or delivered to it, addressed to it as follows: 
  
 Wells Fargo Foothill, Inc 
 2450 Colorado Avenue 
 Suite 3000 West 
 Santa Monica, California
90404 
 Attention: Structured Finance Group Manager 
 Facsimile; (310) 454-7442 
  

 Intercreditor Agreement 

 or as to any Party at such other address as shall be designated by such Party in a written notice to the other parties
complying as to delivery with the terms of this Section. All such demands, notices and other communications shall be effective: when mailed, two business days after deposit in the mails, postage prepaid; when sent by telecopy, when receipt is
acknowledged by the receiving telecopy equipment (or at the opening of the next business day if receipt is after normal business hours); or when delivered, as the case may be, addressed as aforesaid. 
  
 Section 5.7 No Waiver of Remedies. No failure on the part of any Party
to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The
remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  
 Section 5.8 Continuing Agreement. This Agreement is a continuing agreement and shall (a) be binding upon the Parties and their successors and assigns (including, without limitation, all parties that become
lenders or participants under the Credit Facility), and (b) inure to the benefit of and be enforceable by the Parties and their respective successors, transferees and assigns. 
  
 Section 5.9 Governing Law; Entire Agreement. This Agreement shall be governed by, and construed in accordance with,
the laws of the State of New York including, without limitation, Section 5-1401 of the New York General Obligations Law, except as otherwise preempted by applicable federal law. This Agreement constitutes the entire agreement and understanding among
the Parties with respect to the subject matter hereof and supersedes any prior agreements, written or oral, with respect thereto. 
  
 Section 5.10 Counterparts. This Agreement may be executed in any number of counterparts, and it is not necessary that the signatures of all Parties
be contained on any one counterpart hereof, each counterpart will be deemed to be an original, and all together shall constitute one and the same document. 
  
 Section 5.11 No Third Party Beneficiary. This Agreement is solely for the benefit of the Parties (and their successors and assigns) and the holders
of the Secured Liabilities (including the Credit Facility Lender and the Holders). No other Person (including Issuers, any Guarantor or any subsidiary or affiliate of Issuers) shall be deemed to be a third party beneficiary of this Agreement or
shall have any rights to enforce any provisions hereof. 
  
 Section 5.12 Headings. The headings of the articles and sections of this Agreement are inserted for purposes of convenience only and shall not be construed to affect the meaning or construction of any of the provisions hereof.

  
 Section 5.13 Severability. If any of the provisions in
this Agreement shall, for any reason, be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this 
  

 Intercreditor Agreement 

 Agreement and shall not invalidate the Lien Priority or any other priority set forth in this Agreement. 
  
 Section 5.14 Trustee Status. Notwithstanding any term herein to the
contrary, it is hereby expressly agreed and acknowledged that the subordination and related agreements set forth herein by the Trustee are made solely in its capacity as trustee and collateral agent under the Indenture Documents and with respect to
the Notes issued under the Indenture (and not in its individual commercial capacity, except to the extent that it is or becomes the holder of any such Note). The Trustee shall not have any duties, obligations, or responsibilities to the Credit
Facility Lender under this Agreement except as expressly set forth herein. Nothing in this Agreement shall be construed to operate as a waiver by the Trustee, with respect to Issuers or any holder of any Subordinated Lien Indebtedness, of the
benefit of any exculpatory provisions, presumptions, indemnities, protections, benefits, immunities or reliance rights contained in the Indenture, and, by its acknowledgment hereof, each Issuer expressly agrees that as between itself and the
Trustee, the Trustee shall have such benefit with respect to all actions or omissions by the Trustee pursuant to this Agreement. For all purposes of this Agreement, Trustee may (a) rely in good faith, as to matters of fact, on any representation of
fact believed by Trustee to be true (without any duty of investigation) and that is contained in a written certificate of any authorized representative of Issuers or of the Credit Facility Lender, (b) rely in good faith, as to matters of law, on any
advice received from its legal counsel or an opinion of its counsel, counsel to Issuers or counsel to the Credit Facility Lender, and shall have no liability for any action or omission taken in reliance thereon, and (c) assume in good faith (without
any duty of investigation), and rely upon, the genuineness, due authority, validity, and accuracy of any certificate, instrument, notice, or other document believed by it in good faith to be genuine and presented by the proper person. 
  

 Intercreditor Agreement 

 IN WITNESS WHEREOF each Party has caused this Agreement to be duly executed and delivered as of the date
first above written. 
  
  

	 CREDIT
 FACILITY LENDER:
	 	 WELLS FARGO FOOTHILL, INC.

			
	 	 	By:	 	 /s/ Amelie Yehros

		
	 TRUSTEE:
	 	 U.S. BANK NATIONAL ASSOCIATION,
solely in its capacity as Trustee (and not individually)

			
	 	 	By:	 	 /s/ Julie Eddington

	 	 	 	 	         Name: Julie Eddington

	 	 	 	 	         Title: Assistant Vice President

  

 Intercreditor Agreement 

 ACKNOWLEDGMENT 
  
 The undersigned hereby acknowledges that (a) it has received a copy of the foregoing Intercreditor Agreement and consents thereto, and agrees to recognize
all rights granted hereby to the parties thereto, and will not do any act or perform any obligation which is not in accordance with the agreements set forth in such Intercreditor Agreement and (b) it is not an intended beneficiary or third party
beneficiary under the Intercreditor Agreement. 
  
 Dated as of                  , 2003. 
  

	THE OLD EVANGELINE DOWNS, L.L.C.,
a Louisiana limited liability company
		
	 By:
	 	 /s/ Michael Luzich

	 Name:
	 	 Michael Luzich

	 Title:
	 	 President

	
	THE OLD EVANGELINE DOWNS CAPITAL CORP., a Delaware corporation
		
	 By:
	 	 /s/ Michael Luzich

	 Name:
	 	 Michael Luzich

	 Title:
	 	 President

  

 Intercreditor AgreementIntercompany Subordination Agreement

 Exhibit 10.8 
  
 INTERCOMPANY SUBORDINATION AGREEMENT 
  
 THIS INTERCOMPANY SUBORDINATION AGREEMENT (this “Agreement”) dated as of June 24, 2003 is made and entered
into by and among THE OLD EVANGELINE DOWNS, L.L.C., a Louisiana limited liability company (“Parent”) and THE OLD EVANGELINE DOWNS CAPITAL CORP., a Delaware corporation (collectively with Parent, the “Borrowers” and
each individually, a “Borrower”), OED ACQUISITION, LLC, a Delaware limited liability company (the “Subordinated Lender”), and WELLS FARGO FOOTHILL, INC., a California corporation with an office in Atlanta, Georgia
(the “Senior Lender”). 
  
 W I T N E S S E T
H: 
  
 WHEREAS, the Borrowers are indebted and may from time
to time in the future become indebted to Subordinated Lender in respect of advances, loans and other extensions of credit or other financial accommodations made from time to time by the Subordinated Lender to the Borrowers (such indebtedness
together with all other indebtedness and obligations of the Borrowers, or either of them, to the Subordinated Lender, however evidenced and whether now existing or hereafter arising, are referred to herein as the “Subordinated
Debt”; provided that “Subordinated Debt’ shall not include payments to the Subordinated Creditor set forth in that certain Management Fees Subordination Agreement, dated of even date herewith, among the Borrowers, the Subordinated
Lender, the Senior Lender and Peninsula Gaming Company, LLC); and 
  
 WHEREAS, the Borrowers and the Senior Lender are parties to that certain Loan and Security Agreement dated as of even date herewith (collectively, as amended, restated, supplemented or otherwise modified from time to time, the
“Senior Loan Agreement”), whereby the Borrowers may be indebted to the Senior Lender for certain extensions of credit outstanding from time to time (all such indebtedness including principal, interest, fees, costs, expenses and
other sums chargeable to the Borrowers by the Senior Lender (including interest, fees, costs and expenses accruing after an Insolvency Proceeding (as hereafter defined) commences regardless of whether such interest, fees, costs and expenses are
deemed allowed or recoverable in any Insolvency Proceeding (as hereinafter defined) together with any modification, amendment, refinancing or supplement thereto, and any other obligations of the Borrowers to the Senior Lender are hereinafter
referred to as the “Senior Debt”); and 
  
 WHEREAS, as security for the payment of all liabilities and obligations due under the Senior Debt, the Borrowers, pursuant to the Senior Loan Agreement and the other Loan Documents (as defined in the Senior Loan Agreement), have granted to
the Senior Lender a first priority lien on and unconditional security interest in and to certain personal and real property assets of the Borrowers as set forth in the Senior Loan Agreement (collectively, said interests in and assets of the
Borrowers are referred to herein as the “Collateral;” and, collectively said liens and security interests of the Senior Lender are referred to herein as the “Senior Lien”); and 
  
 WHEREAS, as part of the consideration for the Senior Lender’s extension
of credit to the Borrowers, the Subordinated Lender has agreed, among other things, subject to the terms and 

 provisions of this Agreement, (i) to subordinate the Subordinated Debt to the Senior Debt, (ii) to subordinate any lien
which the Subordinated Lender has or may have in the future in the assets or property of any Borrower or any Subsidiary or Affiliate of the Borrowers (the “Subordinated Lien”) to the Senior Lien, and (iii) to forebear from
exercising any creditor’s remedy or taking any action against the Borrowers upon any of their obligations to the Subordinated Lender. 
  
 NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained, and for other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties hereto hereby agree that each capitalized term used herein and not defined herein shall have the meaning ascribed thereto in the Senior Loan Agreement, and further agree as follows:

  
 1. Priority of Liens; Subordinated Debt.
Notwithstanding anything to the contrary including without limitation the date, time, manner or order of perfection or attachment of the security interests and liens on the Collateral granted by the Borrowers to the Senior Lender or the Subordinated
Lender, and notwithstanding the usual application of the priority provisions of the Uniform Commercial Code as in effect in any jurisdiction or any other applicable law or judicial decision of any jurisdiction, or whether the Subordinated Lender
holds possession of all or any part of the Collateral, or if the Senior Lender or the Subordinated Lender is perfected without filing or possession in any part of the Collateral, the Senior Lien shall be a first, senior and prior security interest
in and lien on the Collateral, prior in interest and superior to any Subordinated Lien. The priority of liens set forth in the previous sentence states the relative priority of liens of the parties to this Agreement, and no party hereto represents
or warrants to any other party that such other party’s liens are prior to any lien on the Collateral of any person who is not a party to this Agreement (except that the each Borrower represents and warrants to the Senior Lender that the Senior
Lien has been granted in accordance with the terms and provisions of the Senior Loan Agreement). The Subordinated Lender agrees that if at any time the Subordinated Lender shall be in possession of any assets or properties of the Borrowers, then the
Subordinated Lender shall hold such assets or properties in trust for the Senior Lender so long as any Senior Debt remains outstanding and until all obligations of the Senior Lender to make loans and other financial accommodations to the Borrowers
pursuant to the Senior Loan Agreement (the “Commitments”) are terminated. 
  
 2. Subordination of Subordinated Debt. 
  
 (a) The Subordinated Lender hereby subordinates any and all claims now or hereafter owing to it by the Borrowers, or either of them, under all or any portion of the Subordinated Debt to any and all Senior Debt
(including, without limitation, interest, fees, costs or other payments on the Senior Debt paid or accrued after the commencement of an Insolvency Proceeding and whether or not such claims are deemed allowed or recoverable in any Insolvency
Proceeding, and payment of or for adequate protection pursuant to any Insolvency Proceeding), and agrees that all Senior Debt shall be paid in full in cash to the satisfaction of the Senior Lender and the Commitments shall be terminated before any
payment may be made on the Subordinated Debt, whether of principal or interest or other indebtedness or other obligations. 
  

 2 

 (b) The Subordinated Lender agrees not to accept, and waives any and all rights to, any payment of any
kind or form of the Subordinated Debt (from the Borrowers or otherwise) nor make any transfer to third parties not party to this Agreement or take any other action, in any case, designed to secure indirectly from the Borrowers any payment on account
of the Subordinated Debt without the express, prior written consent of the Senior Lender, and the Subordinated Lender agrees to pay over to the Senior Lender any funds that may be received by it from the Borrowers (i) as a prepayment at any time or
(ii) as a payment on account of the Subordinated Debt at any time until the Senior Debt has been paid in full in cash to the satisfaction of the Senior Lender and the Commitments have been terminated. In case any funds shall be paid or delivered to
the Subordinated Lender under the circumstances described in clause (i) or (ii) of the preceding sentence before the Senior Debt shall have been paid in full in cash to the satisfaction of the Senior Lender and the Commitments have been terminated,
such funds shall be held in trust by the Subordinated Lender for and immediately paid and delivered to the Senior Lender (in the form received endorsed over to the Senior Lender). The Subordinated Lender further agrees not to sell, assign, transfer
or endorse any Subordinated Debt to any other Person except subject to the terms and conditions of this Agreement. 
  
 (c) The Subordinated Lender agrees that the priority of the Senior Debt set forth above shall continue during any insolvency, receivership, bankruptcy,
dissolution, liquidation, or reorganization proceeding, or in any other proceeding, whether voluntary or involuntary, by or against the Borrowers, or either of them, under any bankruptcy or insolvency law or laws, federal or state relating to the
relief of debtors of any jurisdiction, whether now or hereafter in effect, and in any out-of-court composition, assignment for the benefit of creditors, readjustment of indebtedness, reorganization, extension or other debt arrangement of any kind
(collectively, an “Insolvency Proceeding”). In the event of any payment, distribution, division or application, partial or complete, voluntary or involuntary, by operation of law or otherwise, of all or any part of the property,
assets or business of the Borrowers, or the proceeds thereof, or any securities of the Borrowers, to the Subordinated Lender, by reason of any liquidation, dissolution or other winding up of the any Borrower or its business or by reason of any sale
or Insolvency Proceeding, then any such payment or distribution of any kind or character, whether in cash, property or securities, that, but for the subordination provisions of this Section 2, would otherwise be payable or deliverable upon or
in respect of the Subordinated Debt, shall instead be paid over or delivered directly to the Senior Lender to be applied as payment of the Senior Debt, to the extent necessary to repay the Senior Debt remaining unpaid after giving effect to any
concurrent payment or distribution to the Senior Lender. Furthermore, no holder of the Subordinated Debt shall receive any such payment or distribution or any benefit therefrom until the Senior Debt has been fully paid in cash to the satisfaction of
the Senior Lender and the Commitments have been terminated, after which time such payments or distributions may be applied to payment of the Subordinated Debt. 
  

(d) Subject to the provisions of this Agreement, the Senior Lender shall have the sole right to control all aspects of liquidation of the Collateral
and disposition of the proceeds thereof, including all proceedings pertaining thereto under any Insolvency Proceeding and the approval of any plan of reorganization of the Borrowers, or either of them, thereunder. 
  

 3 

 3. Forbearance from Exercise of Certain Remedies. Until the Senior Debt has been paid in full in
cash and the Commitments have been terminated, the Subordinated Lender shall not (a) take any action or exercise any remedy against the Borrowers, or either of them, to enforce all or any portion of the Subordinated Debt; (b) take any action or
exercise any remedy against any guarantor of or pledgor securing the Senior Debt in order to collect any of the Subordinated Debt; (c) commence, or join with any other creditor of the Borrowers, or either of them, in commencing any Insolvency
Proceeding against the Borrowers, or either of them; or (d) take any action or exercise any remedy against any property or assets of any guarantor of or pledgor securing the Senior Debt. The parties hereto understand and agree that the Senior Lender
shall have the right, but shall have no obligation, to cure any default under the Subordinated Debt without the prior written consent of the Subordinated Lender. Notwithstanding anything contained in this Agreement to the contrary, in no event shall
the Subordinated Lender be entitled to receive and retain any securities, equity or otherwise, or other consideration provided for in (i) a plan of reorganization or otherwise in connection with any bankruptcy or Insolvency Proceeding or (ii) any
other judicial or nonjudicial proceeding for the liquidation, dissolution or winding up of the Borrowers, or any of them, or the assets or properties of the Borrowers, or any of them, in any case unless and until the Senior Debt is paid in full in
cash to the satisfaction of the Senior Lender and the Commitments are terminated. 
  
 4. Senior Lender’s Authority to Act. For so long as any of the Senior Debt shall remain unpaid, the Senior Lender shall have the right to act as attorney-in-fact for the Subordinated Lender and other
holders of the Subordinated Debt for the purposes specified herein and the Subordinated Lender hereby irrevocably appoints the Senior Lender as the Subordinated Lender’s true and lawful attorney, with full power of substitution, in the name of
the Subordinated Lender or in the name of holders of the Subordinated Debt, for the use and benefit of the holders of the Senior Debt without notice to the holders of Subordinated Debt or any of their representatives, successors or assigns, to
perform the following acts, at the option of the holders of the Senior Debt, at any meeting of creditors of the Borrowers or in connection with any Insolvency Proceeding: 
  
 (a) if a proper claim or proof of debt in respect of the Subordinated Debt has not been filed in the form required in any
such Insolvency Proceeding at least ten (10) Business Days prior to the expiration of the time for filing such claims, to file an appropriate claim for and on behalf of the holders of Subordinated Debt; 
  
 (b) to collect any assets of the Borrowers distributed, divided or applied by
way of dividend or payment, or any securities issued, on account of the Subordinated Debt and to apply the same, or the proceeds of any realization upon the same that the Senior Lender in its discretion elects to effect, to the Senior Debt until all
of the Senior Debt (including, without limitation, all interest and other payments accruing or paid on the Senior Debt after the commencement of any Insolvency Proceeding at the rate specified in the Senior Debt) has been paid in full in cash to the
satisfaction of the Senior Lender, rendering any surplus to the holders of Subordinated Debt if and to the extent permitted by law; and 
  
 (c) generally to take any action in connection with any such Insolvency Proceeding either in its own name or in the name of the Subordinated Lender
(including without 
  

 4 

 limitation voting on any plan of reorganization) that the holders of Subordinated Debt would be authorized to take, but
for this Agreement, in the event that the Senior Lender believes such action is necessary to protect its interests in the Senior Debt and under this Agreement and after first giving the Subordinated Lender five (5) days’ written notice of its
intent to take such action (to the extent such notice is practicable), provided that the Senior Lender agrees to permit the Subordinated Lender to take action on the Subordinated Lender’s own behalf in connection with any such Insolvency
Proceeding as may be necessary to reasonably protect the Subordinated Lender’s interests, as long as such action is not contrary to or in conflict with the actions and interests of the Senior Lender and the Subordinated Lender’s interests
are always in second position to the Senior Debt and the Senior Lien. 
  
 In no
event shall the holder or holders of the Senior Debt be liable to the Subordinated Lender or any other holders of the Subordinated Debt for any failure to prove the Subordinated Debt, to exercise any right with respect thereto or to collect any sums
payable thereon. A distribution made under this Agreement to holders of Senior Debt that otherwise would have been made to holder or holders of Subordinated Debt is not, as between the Borrowers, or either of them, its other creditors and holder or
holders of Subordinated Debt, a payment by the Borrowers on the Senior Debt, it being understood that the provisions of this Agreement are solely for the purpose of defining the relative rights of the holders of Subordinated Debt, on the one hand,
and the holders of Senior Debt on the other hand. The Subordinated Lender represents that the Subordinated Lender is the sole holder of the Subordinated Debt and, except upon satisfaction of the conditions set forth in Section 16 hereof,
shall not assign, participate, pledge, encumber or transfer any of the Subordinated Debt or any interest therein until the Senior Debt is repaid in full in cash and the Commitments are terminated. The power-of-attorney granted hereby is coupled with
an interest and shall be irrevocable. 
  
 5. Duration and
Termination. This Agreement shall constitute a continuing agreement of subordination, and shall remain in effect until indefeasible payment in full in cash to the satisfaction of the Senior Lender of the Senior Debt and termination of the
Commitments. The holder or holders of Senior Debt may, without notice to the Subordinated Lender or the other holders of the Subordinated Debt, extend or continue credit and make other financial accommodations to or for the account of the Borrowers
in reliance upon this Agreement. The obligations of the Subordinated Lender and the other holders of Subordinated Debt under this Agreement shall continue to be effective, or be reinstated, as the case may be, if at any time any payment in respect
of any Senior Debt is rescinded or must otherwise be restored or returned by a holder of Senior Debt by reason of any Insolvency Proceeding or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer
for, the Borrowers or any substantial part of any Borrower’s property, or otherwise, all as though such payment had not been made. 
  
 6. Subordinated Lender’s Waivers. All of the Senior Debt shall be deemed to have been made or incurred in reliance upon this Agreement. The
Subordinated Lender expressly waives all notice of the acceptance by the Senior Lender of the subordination and other provisions of this Agreement and all other notices not specifically required pursuant to the terms of this Agreement whatsoever,
and the Subordinated Lender expressly consents to reliance by the Senior Lender upon the subordination and other agreements as herein provided. The 
  

 5 

 Subordinated Lender agrees that the Senior Lender has not made warranties or representations with respect to the due
execution, legality, validity, completeness or enforceability of the Senior Loan Agreement and other Loan Documents or the collectibility of the obligations thereunder, that Senior Lender shall be entitled to manage and supervise its loans in
accordance with applicable law and its usual practices, modified from time to time as it deems appropriate under the circumstances, and that the Senior Lender shall not have any liability to the Subordinated Lender for, and the Subordinated Lender
waives any claim (except with respect to willful misconduct) that the Subordinated Lender may now or hereafter have against Senior Lender arising out of (i) any and all actions that the Senior Lender takes or omits to take (including, without
limitation, actions with respect to the creation, perfection or continuation of liens or security interests in the Senior Debt or the Senior Lien, actions with respect to the occurrence of an Event of Default, actions with respect to the foreclosure
upon, sale, release, or depreciation of, or failure to realize upon, the Collateral and actions with respect to the collection of any claim for all or any part of the Senior Debt from any account debtor, guarantor or any other party) with respect to
the documents regarding the Senior Debt or any other agreement related thereto or to the collection of the Senior Debt or the valuation, use, protection or release of the Collateral and/or other security for the Senior Debt, (ii) the Senior
Lender’s election, in any proceeding instituted under Chapter 11 of Title 11 of the United States Code (11 U.S.C. § 101 et seq.) (the “Bankruptcy Code”), of the application of Section 1111 (b)(2) of the Bankruptcy
Code, and/or (iii) any making of loans to, or grant of a security interest under Section 364 of the Bankruptcy Code by, the Borrowers as debtors-in-possession. 
  

7. Waiver of Marshaling; No Offset. The Subordinated Lender agrees that the Senior Lender shall have no obligation to marshal any part of the
Collateral or any such other property, instruments, documents, agreements or guaranties before enforcing its rights against any other part of the Collateral or its rights herein as against the Subordinated Lender. In the event the Subordinated
Lender is or becomes indebted to any Borrower, including, without limitation, under any documents or instruments evidencing the Subordinated Debt, the Subordinated Lender agrees that it shall pay such indebtedness in accordance with its terms and
shall not deduct from or set off against any amounts owed to such Borrower any amounts such Borrower claims are due to it with respect to the Subordinated Debt. 
  

8. No Contest of Security Interest. The Subordinated Lender shall not contest the validity, perfection or enforceability of any lien or security
interest granted to the Senior Lender by any Borrower, and the Subordinated Lender agrees to cooperate in the defense of any action contesting the validity, perfection or enforceability of such liens or security interests. 
  
 9. Subordination Not Affected, Etc. Nothing in this Agreement shall be
construed as affecting or in any way limiting the extension of new or additional financial accommodation by the Senior Lender to the Borrowers and the terms and conditions hereof shall apply to such new and additional financial accommodations.
Notwithstanding the preceding sentence or anything contained in this Agreement to the contrary, none of the provisions of this Agreement shall be deemed or construed to constitute a commitment or an obligation on the part of the Senior Lender to
make any future loans, advances or other extensions of credit or financial accommodation to the Borrowers. The Subordinated Lender understands and agrees that all accrued interest, charges, expenses, attorneys’ fees and other liabilities and
obligations under the 
  

 6 

 Senior Loan Agreement shall constitute part of the Senior Debt, and nothing in this Agreement shall be construed as
affecting or in any way limiting any indulgence granted by the Senior Lender with respect to any existing financial accommodation to the Borrowers. The subordinations effected, and the rights created, hereby shall not be affected by (a) any
amendment of or any addition of or supplement to any instrument, document or agreement relating to the Senior Debt, (b) any exercise or non-exercise of any right, power or remedy under or in respect of the Senior Debt or any instrument, document or
agreement relating thereto, (c) the release, sale, exchange or surrender, in whole or in part, of any part of the Collateral or any additional collateral to which the Senior Lender may become entitled, (d) any release of any guarantor of or pledgor
securing the Senior Debt or any security for such pledge or guaranty, or (e) any waiver, consent, release, indulgence, extension, renewal, modification, delay or other action, inaction or omission in respect of the Senior Debt or any instrument,
document or agreement relating thereto or any security therefor or pledge or guaranty thereof, whether or not the Subordinated Lender shall have had notice or knowledge of any of the foregoing and regardless of whether the Subordinated Lender shall
have consented or objected thereto. Any provision of any document, instrument or agreement evidencing, securing or otherwise relating to the Subordinated Debt purporting to limit or restrict in any way any Borrower’s ability to enter into any
agreement with the Senior Lender to amend or modify any document, instrument or agreement evidencing, securing or otherwise relating to the Senior Debt shall be deemed of no force or effect until the Senior Debt has been repaid in full in cash to
the satisfaction of the Senior Lender and the Commitments have been terminated. 
  
 10. Voided Payments. Notwithstanding anything herein that may be construed to the contrary, to the extent that any Borrower makes any payment on the Senior Debt which, within twelve (12) months of the date of
such payment, is subsequently invalidated, declared to be fraudulent, avoidable or preferential, set aside or is required to be repaid to a trustee, receiver, the estate of such Borrower or any other party under any bankruptcy act, state or Federal
law, common law or equitable cause (such payment being hereinafter referred to as a “Voided Payment”), then, to the extent of such Voided Payment, that portion of the Senior Debt that had been previously satisfied by such Voided
Payment shall be revived and continue in full force and effect as if such Voided Payment had never been made. In the event that a Voided Payment is sought to be recovered from the Senior Lender, an “Event of Default” under the
Senior Loan Agreement shall be deemed to have occurred and to be continuing from the date of such recovery from the Senior Lender of such Voided Payment until the full amount of such Voided Payment is fully and finally restored to the Senior Lender
and until such time the provisions of this Agreement shall be in full force and effect. 
  
 11. Violation of Agreement by Borrowers. Each Borrower hereby consents to this Agreement, agrees to abide by the terms hereof, agrees to make no payments or distributions contrary to the terms and provisions
hereof and to do every act and thing necessary to carry out such terms and provisions. Each Borrower agrees that should it make any payment in contravention of any provision of this Agreement the maturity of said Senior Debt may be accelerated in
accordance with the terms of the Senior Loan Agreement. 
  
 12.
Waiver. Irrespective of the due date of any of the Subordinated Debt, the Subordinated Lender hereby expressly waives any and all rights to payment by any Borrower of 
  

 7 

 the Subordinated Debt prior to repayment in full in cash of the Senior Debt and termination of the Commitments.

  
 13. Immediate Effect. This Agreement shall be effective
immediately upon its execution by each of the parties hereto, and there are no conditions precedent or subsequent to the effectiveness of this Agreement. 
  
 14. Inducement. As an inducement to, and part of the consideration for, the Senior Lender’s extension of credit to the Borrowers, which the
Subordinated Lender and the Borrowers acknowledge that the Senior Lender would be unwilling to do without this Agreement, the Subordinated Lender agrees, among other things, (i) to subordinate the Subordinated Lien to the Senior Lien, (ii) to
subordinate the Subordinated Debt to the Senior Debt, and (iii) to forebear from exercising any creditor’s remedy or taking any action against any Borrower upon any of its obligations to the Subordinated Lender until the Senior Debt has been
paid in full in cash to the satisfaction of the Senior Lender and termination of the Commitments. 
  
 15. Successors and Assigns; Continuing Effect, etc. This Agreement is being entered into for the benefit of, and shall be binding upon, the Senior
Lender, the Subordinated Lender, the Borrowers and their respective successors and assigns. The Senior Lender may assign or participate out to other parties any portion of its interest under the Senior Debt and no such assignee or participant shall
be required to become a signatory hereto. Any assignee or transferee of the Subordinated Lender shall execute and deliver to the other parties hereto an agreement pursuant to which they will become parties hereto as fully as if they were signatories
hereto and providing for the effectiveness of this Agreement as to such transferee or assignee and other parties. This Agreement shall be a continuing agreement, shall be irrevocable and shall remain in full force and effect so long as any of the
Senior Debt or the Subordinated Debt is outstanding and so long as the Senior Loan Agreement has not been terminated and the Commitments remain in place. 
  
 16. Notification of Defaults. The Subordinated Lender shall immediately give written notice to the Senior Lender of a default or an event of
default by the Borrowers under the Subordinated Debt. The Subordinated Lender understands that, subject to any grace or cure period under the Subordinated Lender’s agreements with the Borrowers, any default by the Borrowers under the
Subordinated Debt is, automatically, an event of default of the Borrowers under the Senior Debt. Nothing in this Agreement shall be interpreted to limit or restrict the right of the Senior Lender and the Subordinated Lender to waive any default
under their respective documents, and the Subordinated Lender agrees that any waiver by the Subordinated Lender will be in writing and provided to the Senior Lender. 
  
 17. Notices. Any notices, consents, requests, demands and other communications required or permitted to be given
hereunder shall be in writing and shall be deemed to be given to any party or parties (a) upon delivery to the address of the party or parties set forth below if delivered in person or by courier or if sent by certified or registered mail (return
receipt requested), or (b) upon dispatch if transmitted by telecopy or other means of facsimile transmission, in any case to the party or parties at the telecopy numbers set forth below: 
  

 8 

	 If to Borrower:
	  	 THE OLD EVANGELINE DOWNS, L.L.C.

	 	  	 c/o Peninsula Gaming Partners, LLC

	 	  	 400 E. Third Street, P.O. Box 1750

	 	  	 Dubuque, Iowa 52004

	 	  	 Attention:    Natalie Schramm

	 	  	 Fax No.         (563) 690-2190

		
	 	  	 and

		
	 	  	 THE OLD EVANGELINE DOWNS, L.L.C.

	 	  	 c/o Peninsula Gaming Partners, LLC

	 	  	 11100 Santa Monica Boulevard, 10th Floor

	 	  	 Los Angeles, California 90025

	 	  	 Attention:    M. Brent Stevens

	 	  	 Fax No.         (310)914-6476

		
	 with copies to:
	  	 MCGLINCHEY STAFFORD, PLLC

	 	  	 643 Magazine Street

	 	  	 New Orleans, Louisiana 70825

	 	  	 Attention:    Deborah Harkins, Esq.

	 	  	 Fax No.         (504) 596-2800

		
	 If to the Subordinated
	  	 
	 Lender:
	  	 PENINSULA GAMING COMPANY, LLC

	 	  	 c/o Peninsula Gaming Partners, LLC

	 	  	 400 E. Third Street, P.O. Box 1750

	 	  	 Dubuque, Iowa 52004

	 	  	 Attention:    Natalie Schramm

	 	  	 Fax No.         (563) 690-2190

		
	 	  	 and

		
	 	  	 PENINSULA GAMING COMPANY, LLC

	 	  	 c/o Peninsula Gaming Partners, LLC

	 	  	 11100 Santa Monica Boulevard, 10th Floor

	 	  	 Los Angeles, California 90025

	 	  	 Attention:    M. Brent Stevens

	 	  	 Fax No.         (310)914-6476

  

 9 

	 If to Senior
	  	 
	 Lender:
	  	 WELLS FARGO FOOTHILL, INC.

	 	  	 2450 Colorado Avenue, Suite 3000 West

	 	  	 Santa Monica, California 90404

	 	  	 Attention:    SFG

	 	  	 Fax No.         (310) 453-7442

		
	 with additional copies to:
	  	 PAUL, HASTINGS, JANOFSKY & WALKER LLP

	 	  	 600 Peachtree Street, NE, Suite 2400

	 	  	 Atlanta, Georgia 30308

	 	  	 Attention:    Cindy J. K. Davis, Esq.

	 	  	 Fax No.         (404) 815-2424

  
 Any party hereto may designate any
other address or telecopy number, as applicable, to which any notices or other communications shall be given by notice duly given hereunder; provided, however, that any such notice of other address or telecopy number shall be deemed to
have been given hereunder only when actually received by the party to which it is addressed. 
  
 18. Amendments; Modifications. This Agreement may not be modified, altered or amended except by an agreement in writing executed by all of the parties hereto. 
  
 19. Amendment of Loan Documents. The Subordinated Lender and the
Borrowers agree to forbear from (a) modifying, altering or amending any payment term of any loan document or any other document, instrument or agreement evidencing the Subordinated Debt, (b) modifying, altering or amending any other term of any loan
document or any other document, instrument or agreement evidencing the Subordinated Debt in any manner adverse to either the Borrowers or the Senior Lender, and (c) from granting (in the case of the Borrowers) and receiving (in the case of the
Subordinated Lender) any collateral or other security of any nature to secure the Subordinated Debt. 
  
 20. Cost and Expenses of Enforcement. The Subordinated Lender agrees to pay all costs and expenses including, without limitation, attorneys’,
paralegals’ and other professionals’ fees of every kind, paid or incurred by the Senior Lender in enforcing its rights hereunder against the Subordinated Lender, including, but not limited to, litigation instituted in a state or federal
court, as hereinafter provided (including proceedings under the Bankruptcy Code) in endeavoring to collect the Senior Debt or in so enforcing this Agreement, or in defending against any defense, cause of action, counterclaim, setoff or cross claim
based on any act of commission or omission by the Senior Lender with respect to the Senior Debt promptly on demand of the Senior Lender or other person paying or incurring the same. 
  
 21. TO INDUCE THE SENIOR LENDER TO AFFORD FINANCIAL ACCOMMODATIONS TO THE BORROWERS, THE SUBORDINATED LENDER IRREVOCABLY
AGREES THAT ALL ACTIONS ARISING DIRECTLY OR INDIRECTLY AS A RESULT OR IN CONSEQUENCE OF THIS AGREEMENT SHALL BE INSTITUTED AND LITIGATED ONLY IN COURTS HAVING SITUS IN THE CITY OF NEW YORK, NEW YORK AND THE SUBORDINATED LENDER HEREBY CONSENTS TO THE
EXCLUSIVE JURISDICTION AND VENUE OF ANY STATE OR FEDERAL COURT 
  

 10 

 LOCATED AND HAVING ITS SITUS IN SAID CITY AND STATE. THE SUBORDINATED LENDER HEREBY WAIVES ANY OBJECTION BASED ON
FORUM NON CONVENIENS, AND THE SUBORDINATED LENDER HEREBY WAIVES PERSONAL SERVICE OF ANY AND ALL PROCESS. THE PARTIES CONSENT THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO THE SENIOR
LENDER OR THE SUBORDINATED LENDER AT THE RESPECTIVE ADDRESSES SET FORTH HEREIN IN THE MANNER PROVIDED BY APPLICABLE STATUTE, LAW, RULE OF COURT, OR OTHERWISE. 
  

22. Waiver of Claims; Trial by Jury. THE SUBORDINATED LENDER WAIVES EVERY DEFENSE, CAUSE OF ACTION, COUNTERCLAIM OR SETOFF, THAT THE
SUBORDINATED LENDER MAY NOW HAVE, OR HEREAFTER MAY HAVE, TO ANY ACTION BY THE SENIOR LENDER IN ENFORCING THIS AGREEMENT AND RATIFIES AND CONFIRMS WHATEVER THE SENIOR LENDER MAY DO PURSUANT TO THE TERMS HEREOF AND AGREES THAT THE SENIOR LENDER SHALL
NOT BE LIABLE FOR ANY ERRORS OF JUDGMENT OR MISTAKE OF FACT OR LAW EXCEPT FOR WILLFUL MISCONDUCT OF SENIOR LENDER. THE SENIOR LENDER AND THE SUBORDINATED LENDER, AND EACH ONE OF THEM, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, THE RIGHT EITHER ONE OF THEM MAY HAVE TO TRIAL BY JURY WITH RESPECT TO ANY LEGAL PROCEEDING BASED HEREON, OR ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT AND ANY AGREEMENT CONTEMPLATED TO BE
EXECUTED IN CONJUNCTION HEREWITH OR ANY COURSE OF CONDUCT OR COURSE OF DEALING, IN WHICH THE SENIOR LENDER AND THE SUBORDINATED LENDER ARE ADVERSE PARTIES. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE SENIOR LENDER TO MAKE LOANS AND OTHER
FINANCIAL ACCOMMODATIONS TO THE BORROWERS. 
  
 23. Governing
Law; Benefit of Agreement. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York, without regard to the conflict of law, principles thereof other than Sections 5-1401 and 5-1402 of the
New York General Obligations Law. All of the understandings, agreements, covenants and representations contained herein are solely for the benefit of the Senior Lender and the Subordinated Lender, and there are no other persons who are intended to
be benefited in any way whatsoever by this Agreement. 
  
 24.
Severability. In the event any one or more of the provisions contained herein shall for any reason be held to be invalid, illegal or unenforceable in any respect by a court of competent jurisdiction, such invalidity, illegality or
unenforceability shall not affect any other provision hereof, and this Agreement shall be construed as if such invalid, illegal or unenforceable provision had never been contained herein. 
  

 11 

 25. Counterparts. This Agreement may be executed in two or more counterparts, each of which shall
be deemed an original, and all of which taken together shall constitute one and the same instrument. Delivery of an executed counterpart of this Agreement by facsimile transmission shall be as effective as delivery of a manually executed counterpart
hereof. 
  
 26. Perfection and Release of Liens. Upon the
Senior Lender’s reasonable request (which request shall be in writing), the Subordinated Lender hereby agrees to execute and deliver such documents, instruments, lien releases, assignments and financing statements and do such acts as may be
necessary in order for the Senior Lender to establish and maintain a first, valid, prior and perfected security interest in the Collateral. In the event of any sale or other disposition of all or any part of the Collateral prior to payment in full
of the Senior Debt, upon request by the Senior Lender, the Subordinated Lender shall execute releases, assignments, UCC terminations and other similar agreements that are reasonably requested by the Senior Lender from time to time. Until payment and
satisfaction in full of the Senior Debt, the Subordinated Lender shall cooperate fully in releasing the Subordinated Lien, if in existence at such time, as soon as practicable upon the reasonable request of the Senior Lender. 
  
 [REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK] 
  

 12 

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

  

	 Borrowers:
	 	THE OLD EVANGELINE DOWNS, L.L.C.,
a Louisiana limited liability company
			
	 	 	By:	 	 /s/ Natalie A. Schramm

	 	 	 	 	 Name: Natalie A. Schramm

	 	 	 	 	 Title:   CFO

		
	 	 	THE OLD EVANGELINE DOWNS
CAPITAL CORP., a Delaware corporation
			
	 	 	By:	 	 /s/ Natalie A. Schramm

	 	 	 	 	 Name: Natalie A. Schramm

	 	 	 	 	 Title:   CFO

		
	 Subordinated Lender:
	 	 OED ACQUISITION, LLC,
 a Delaware limited liability company

			
	 	 	By:	 	 /s/ Natalie A. Schramm

	 	 	 	 	 Name: Natalie A. Schramm

	 	 	 	 	 Title:   CFO

		
	 Senior Lender:
	 	WELLS FARGO FOOTHILL, INC.,
a California corporation
			
	 	 	By:	 	 /s/ Rhonda R. Noell

	 	 	 	 	 Name: Rhonda R. Noell

	 	 	 	 	 Title:   SVP

  

 INTERCOMPANY SUBORDINATION AGREEMENT

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