Document:

Exhibit
10.6(B)

 

CHARTER
PARTY

SECOND
AMENDMENT

 

St. Louis Riverboat
Entertainment, Inc. (fka Caruthersville Riverboat Entertainment, Inc.), a
Missouri corporation (“Owner”) and Greenville Riverboat, LLC, a Mississippi
limited liability company (“Charterer”) wish to amend the Charter Party
agreement originally dated January 20, 1995 and as previously amended by the
First Amendment dated January 19, 2004, as follows:

 

Whereas the amended
Charter Party agreement is currently scheduled to expire on January 19, 2009.

 

The parties to the
agreement wish to add two five year renewal options to extend the agreement at
the option of the Charterer. The first option to commence on January 19, 2009
and end on January 19, 2014 and the second option to commence on January 19,
2014 and end on January 19, 2019. The Charterer must notify the Owner in
writing at least thirty (30) days in advance of the current expiration date of
the agreement and the Charterer cannot be in default under the agreement in
order to exercise its option.

 

All other terms and
provisions of the agreement, as amended, are to remain in full force and
effect.

 

The parties have executed
this amendment on this 23rd day of May, 2005.

 

	
   

  	
  Owner: 

  
	
   

  	
  St. Louis Riverboat
  Entertainment, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ William J. Yung

  
	
   

  	
   

  	
  William J. Yung,
  President

  
	
   

  	
   

  	
   

  
	
   

  	
  Charterer: 

  
	
   

  	
  Greenville Riverboat,
  LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  Wimar Tahoe Corporation

  
	
   

  	
   

  	
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  by

  	
  /s/ William J. Yung

  
	
   

  	
   

  	
  William J. Yung,
  PresidentExhibit 10.6(C)

 

CHARTER PARTY

THIRD AMENDMENT

 

St.
Louis Riverboat Entertainment, Inc. (f/k/a Caruthersville Riverboat
Entertainment, Inc.), a Missouri corporation (“Owner”) and Greenville
Riverboat, LLC, a Mississippi limited liability company (“Charterer”) wish to
amend the Charter Party agreement originally dated January 20, 1995, and
as previously amended by the First Amendment dated January 19, 2004, and
Second Amendment dated May 23, 2005, as follows:

 

Owner
and Charterer mutually agree to extend the expiration of the amended Charter
Party agreement from January 19, 2009 until June 19, 2009.

 

Owner
and Charterer mutually agree that the first five (5) year renewal option
to extend the agreement at the option of the Charterer shall commence on June 19,
2009 and end on June 19, 2014, and the second five (5) year renewal
option shall commence on June 19, 2014 and end on June 19, 2019.

 

Owner
and Charterer mutually agree to accept this Third Amendment as Charterer’s
thirty (30) day notice of election to extend the agreement for the first five (5) year
renewal term.

 

Owner
and Charterer mutually agree that neither party is in default of the Charter
Party agreement or any amendment thereto.

 

All
other terms and provision of the agreement, as amended, remain in full force
and effect.

 

The
parties have executed this amendment on this 13th day of May,
2009.

 

	
   

  	
  Owner:

  
	
   

  	
  St. Louis Riverboat Entertainment, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Butera

  
	
   

  	
   

  	
  Scott Butera, Chief Executive Officer and President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Charterer:

  
	
   

  	
  Greenville Riverboat, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By: 

  	
  Tropicana Entertainment Holdings, LLC

  
	
   

  	
   

  	
  Managing Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Scott Butera

  
	
   

  	
   

  	
  Scott Butera, Chief Executive Officer and PresidentEXHIBIT
10.7

 

EVANSVILLE

 

RIVERBOAT
LANDING

 

LEASE

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE
  I.

  	
  LEASE
  OF THE PREMISES

  	
  2

  
	
   

  	
   

  	
   

  
	
  Section 1.01

  	
  The Demise

  	
  2

  
	
  Section 1.02

  	
  Landlord’s Title

  	
  2

  
	
  Section 1.03

  	
  Easements and Vacations

  	
  3

  
	
  Section 1.04

  	
  City’s Representations

  	
  4

  
	
  Section 1.05

  	
  Quiet Enjoyment; City
  Default

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  II.

  	
  THE
  DEMISED TERM

  	
  4

  
	
   

  	
   

  	
   

  
	
  Section 2.01

  	
  The Preliminary Term

  	
  4

  
	
  Section 2.02

  	
  The Original Term

  	
  5

  
	
  Section 2.03

  	
  The Extended Term(s)

  	
  5

  
	
  Section 2.04

  	
  Exercise or Option to
  Extend

  	
  5

  
	
  Section 2.05

  	
  The Demised Term

  	
  5

  
	
  Section 2.06

  	
  Use of Leased Premises

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  III.

  	
  CONDITION
  OF THE LEASED PREMISES

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 3.01

  	
  Inspections

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IV.

  	
  RENT

  	
  6

  
	
   

  	
   

  	
   

  
	
  Section 4.01

  	
  Rent Schedule

  	
  6

  
	
  Section 4.02

  	
  Use of Term “Lease
  Year”

  	
  6

  
	
  Section 4.03

  	
  Maintenance of Records

  	
  7

  
	
  Section 4.04

  	
  Annual Sales Statements

  	
  7

  
	
  Section 4.05

  	
  Audit of Annual
  Statements

  	
  7

  
	
  Section 4.06

  	
  Annual Financial
  Reports

  	
  8

  
	
  Section 4.07

  	
  Non-Confidentiality of
  Statements and Audits

  	
  8

  
	
  Section 4.08

  	
  Relationship of Parties

  	
  8

  
	
  Section 4.09

  	
  Definition of Rental

  	
  8

  
	
  Section 4.10

  	
  Place of Payment

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  V.

  	
  IMPOSITIONS

  	
  9

  
	
   

  	
   

  	
   

  
	
  Section 5.01

  	
  Obligation of Payment

  	
  9

  
	
  Section 5.02

  	
  Limitations and Forms
  of Taxation

  	
  9

  
	
  Section 5.03

  	
  Installment Payments

  	
  10

  
	
  Section 5.04

  	
  Proration and Adjustment

  	
  10

  
	
  Section 5.05

  	
  Contests

  	
  10

  
	
  Section 5.06

  	
  Taxation of City
  Property

  	
  10

  
	
  Section 5.07

  	
  Personal Property Taxes

  	
  10

  
	
  Section 5.08

  	
  No Tax Abatement

  	
  10

  

 

i

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE
  VI.

  	
  CONSTRUCTION
  OF IMPROVEMENTS

  	
  11

  
	
   

  	
   

  	
   

  
	
  Section 6.01

  	
  Mechanic’s Liens

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VII.

  	
  UTILITIES
  AND SERVICES

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 7.01

  	
  Use Charges

  	
  12

  
	
  Section 7.02

  	
  Suppliers of Utility
  Services

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  VIII.

  	
  CASUALTY
  INSURANCE

  	
  12

  
	
   

  	
   

  	
   

  
	
  Section 8.01

  	
  Required Coverage

  	
  12

  
	
  Section 8.02

  	
  Approved Insurors

  	
  12

  
	
  Section 8.03

  	
  Use of Proceeds

  	
  13

  
	
  Section 8.04

  	
  Policies

  	
  13

  
	
  Section 8.05

  	
  Collection of Proceeds

  	
  13

  
	
  Section 8.06

  	
  Renewal Policies

  	
  14

  
	
  Section 8.07

  	
  Special Provision

  	
  14

  
	
  Section 8.08

  	
  Compliance with
  Insurance Requirements

  	
  14

  
	
  Section 8.09

  	
  Mortgage Terms

  	
  14

  
	
  Section 8.10

  	
  Change of Insurance
  Trustee

  	
  15

  
	
  Section 8.11

  	
  Rights Upon Termination

  	
  15

  
	
  Section 8.12

  	
  Blanket Insurance
  Policies

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  IX.

  	
  INDEMNITY
  AND LIABILITY INSURANCE

  	
  15

  
	
   

  	
   

  	
   

  
	
  Section 9.01

  	
  General Indemnity

  	
  15

  
	
  Section 9.02

  	
  Liability Insurance

  	
  16

  
	
  Section 9.03

  	
  No Separate Insurance

  	
  16

  
	
  Section 9.04

  	
  Other Hazards

  	
  17

  
	
  Section 9.05

  	
  Adjustments in Amounts
  of Liability Insurance

  	
  17

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  X.

  	
  REPAIR
  OF CASUALTY DAMAGE

  	
  17

  
	
   

  	
   

  	
   

  
	
  Section 10.01

  	
  Tenant’s Responsibility

  	
  17

  
	
  Section 10.02

  	
  Conditions of
  Restoration

  	
  17

  
	
  Section 10.03

  	
  Disbursement of
  Insurance Proceeds

  	
  17

  
	
  Section 10.04

  	
  Extension

  	
  18

  
	
  Section 10.05

  	
  Prompt Performance of
  Work

  	
  18

  
	
  Section 10.06

  	
  Minor Damage

  	
  19

  
	
  Section 10.07

  	
  No Termination of Lease

  	
  19

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XI.

  	
  GENERAL
  MAINTENANCE AND REPAIRS

  	
  19

  
	
   

  	
   

  	
   

  
	
  Section 11.01

  	
  Tenant’s Responsibility

  	
  19

  

 

ii

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE
  XII.

  	
  ALTERATIONS

  	
  20

  
	
   

  	
   

  	
   

  
	
  Section 12.01

  	
  Rights of Tenant

  	
  20

  
	
  Section 12.02

  	
  Character of Change

  	
  20

  
	
  Section 12.03

  	
  Extent of Change or
  Alteration

  	
  20

  
	
  Section 12.04

  	
  Compliance With Laws,
  Etc.

  	
  20

  
	
  Section 12.05

  	
  Insurance Coverages

  	
  21

  
	
  Section 12.06

  	
  Ownership of
  Improvements

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIII.

  	
  ASSIGNMENT
  AND SUBLETTING

  	
  21

  
	
   

  	
   

  	
   

  
	
  Section 13.01

  	
  Right to Assign and Sublet

  	
  21

  
	
  Section 13.02

  	
  Notification to City

  	
  22

  
	
  Section 13.03

  	
  Mortgages of Tenant’s
  Interest

  	
  22

  
	
  Section 13.04

  	
  Notices to Leasehold
  Mortgagees

  	
  22

  
	
  Section 13.05

  	
  Qualified Mortgagees’
  Right to Cure

  	
  22

  
	
  Section 13.06

  	
  Mortgagees’ Rights to
  New Lease

  	
  23

  
	
  Section 13.07

  	
  Qualified Mortgagee -
  Release

  	
  24

  
	
  Section 13.08

  	
  Possession

  	
  24

  
	
  Section 13.09

  	
  Insurance Proceeds

  	
  24

  
	
  Section 13.10

  	
  Survival of Provisions

  	
  25

  
	
  Section 13.11

  	
  Rights on Termination

  	
  25

  
	
  Section 13.12

  	
  Limitation of Mortgagee
  Liability

  	
  25

  
	
  Section 13.13

  	
  No Assumption,
  Surrender or Modification

  	
  25

  
	
  Section 13.14

  	
  Further Assurances

  	
  25

  
	
  Section 13.15

  	
  Permitted Subleasing,
  Licensing and Concessions

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIV.

  	
  EMINENT
  DOMAIN

  	
  26

  
	
   

  	
   

  	
   

  
	
  Section 14.01

  	
  Total Taking

  	
  26

  
	
  Section 14.02

  	
  Award for Total Taking

  	
  26

  
	
  Section 14.03

  	
  Partial Taking

  	
  27

  
	
  Section 14.04

  	
  Restoration after
  Condemnation

  	
  27

  
	
  Section 14.05

  	
  Extension

  	
  27

  
	
  Section 14.06

  	
  Effect of Partial
  Taking

  	
  28

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XV.

  	
  COMPLIANCE
  WITH LAW

  	
  28

  
	
   

  	
   

  	
   

  
	
  Section 15.01

  	
  Tenant’s Responsibility

  	
  28

  
	
  Section 15.02

  	
  Hazardous Material

  	
  28

  
	
  Section 15.03

  	
  Contests

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XVI.

  	
  DEFAULTS
  AND REMEDIES

  	
  30

  
	
   

  	
   

  	
   

  
	
  Section 16.01

  	
  Events of Default

  	
  30

  
	
  Section 16.02

  	
  Cessation of Operation

  	
  31

  
	
  Section 16.03

  	
  Rights on Termination

  	
  31

  
	
  Section 16.04

  	
  Waiver of Notice

  	
  32

  
	
  Section 16.05

  	
  Right to Enjoin

  	
  32

  
	
  Section 16.06

  	
  Non-Waiver

  	
  32

  

 

iii

 

	
   

  	
   

  	
  Page

  
	
  ARTICLE
  XVII.

  	
  CHARACTER
  OF LEASE

  	
  32

  
	
   

  	
   

  	
   

  
	
  Section 17.01

  	
  Net Lease

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XVIII.

  	
  NOTICES

  	
  33

  
	
   

  	
   

  	
   

  
	
  Section 18.01

  	
  Manner of Giving

  	
  33

  
	
  Section 18.02

  	
  Time of Giving

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XIX.

  	
  SURRENDER
  OF POSSESSION

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 19.01

  	
  Surrender in Good
  Condition

  	
  34

  
	
  Section 19.02

  	
  Holding Over

  	
  34

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XX.

  	
  CERTIFICATES
  BY CITY AND TENANT

  	
  34

  
	
   

  	
   

  	
   

  
	
  Section 20.01

  	
  Tenant’s Certificates

  	
  34

  
	
  Section 20.02

  	
  City’s Certificates

  	
  35

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  XXI.

  	
  MISCELLANEOUS
  PROVISIONS

  	
  35

  
	
   

  	
   

  	
   

  
	
  Section 21.01

  	
  Remedies Cumulative -
  Non-Waiver

  	
  35

  
	
  Section 21.02

  	
  Governing Law

  	
  36

  
	
  Section 21.03

  	
  Time of the Essence

  	
  36

  
	
  Section 21.04

  	
  Force Majeure

  	
  36

  
	
  Section 21.05

  	
  Severability

  	
  37

  
	
  Section 21.06

  	
  Consents and Approvals

  	
  37

  
	
  Section 21.07

  	
  Captions

  	
  37

  
	
  Section 21.08

  	
  Interpretation

  	
  37

  
	
  Section 21.09

  	
  Guaranty

  	
  37

  
	
  Section 21.10

  	
  Written Integration

  	
  37

  
	
   

  	
   

  	
   

  
	
  Attachments:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Schedule A

  	
  Legal Description of
  Project Area (the “Land”)

  	
  39

  
	
  Schedule 4.01

  	
  Rent Schedule

  	
  41

  
	
   

  	
  Guaranty of Lease

  	
  43

  

 

iv

 

LEASE

 

THIS LEASE, made and
entered into as of the 2nd day of May, 1995, by and between the CITY OF
EVANSVILLE, INDIANA (“City”), acting by and through the Redevelopment
Commission of the City of Evansville, organized and operating under IC 36-7-14
(“Commission”) and AZTAR INDIANA GAMING CORPORATION, an Indiana corporation (“Tenant”,

 

WITNESSETH THAT:

 

WHEREAS, in furtherance
of the objectives of the Act, the Commission has undertaken and is carrying out
a program for the redevelopment of slum and blighted areas in the City of
Evansville; and

 

WHEREAS, in connection
with the aforesaid redevelopment program, the Commission has undertaken and is
carrying out in an area (hereinafter referred to as the “Project Area”) as
described on Schedule A attached hereto, of the City of Evansville a
redevelopment project (hereinafter referred to as the “Project”) designated and
referred to as the Project by the adoption of a Declaratory Resolution on the
27th day of February, 1984 and of the Downtown Redevelopment Area Plan, as
amended on September 20,1994; and

 

WHEREAS, the lease of the
Project Area was authorized by the Commission by a Resolution approved on March
14, 1995, and was advertised for bid on March 16 & March 23,1995 by the
Commission; and

 

WHEREAS, Tenant submitted
a bid for the lease of the Project Area in connection with a proposal for the
establishment of a riverboat gaming business to be conducted pursuant to the
Indiana Riverboat Gambling Law of 1993 and the applicable regulations
promulgated thereunder (the “Gambling Law”), which proposals included not only
the leasing and redevelopment of the Project Area, but also the development of
a hotel and other facilities on an ancillary site containing approximately 3.34
acres consisting of parts of two (2) city clocks bounded by First, Clark,
Second and Ingle Streets (the “Ancillary Site”) and the operation of a
riverboat gambling vessel (“Riverboat”) to be docked at the Leased Premises;
and

 

WHEREAS, the proposal by
Tenant and AZTAR CORPORATION (“Guarantor”) for such lease and other development
and operation was reduced to an agreement between the City, the Commission and
the Park and Recreation District of the City and Tenant and Guarantor, under
the date of June 29,1994 entitled, and hereinafter referred to as, the “Project
Agreement,” which is by this reference thereto incorporated herein as if
contained herein:

 

NOW, THEREFORE, City
(acting by and through the Commission) and Tenant enter into this Lease.

 

 

ARTICLE I.

 

LEASE OF THE
PREMISES

 

Section 1.01. The Demise. City, for and in consideration
of the rents, covenants and agreements hereinafter reserved, on the part of
Tenant, its successors and assigns, to be observed and performed, has leased
and demised, and by these presents does lease and demise unto Tenant, and
Tenant, does hereby take and hire upon and subject to the conditions and
limitations hereinafter expressed, the real estate described on Schedule A (the
“Land”, which includes such portions of the Ohio River as therein described),
together with any buildings and other improvements that may from time to time
be erected or located thereon; said Land, buildings and other improvements being
referred to hereinafter as the “Leased Premises”.

 

TOGETHER with all
riparian rights, easements and other appurtenances thereunto belonging, to have
and to hold the same, subject as aforesaid, unto Tenant, and, subject to the
terms, covenants, agreements, provisions, conditions and limitations hereof,
its successors and assigns, for an original term together with the options to
extend the term as described in Article.

 

Section 1.02. Landlord’s Title. City represents and
warrants that it is (or will be, at the effective date of this Lease) the fee
simple owner of the Leased Premises free and clear of any and all encumbrances,
except the following:

 

(a) Current taxes and
assessments (if any) not delinquent as of the effective date of this Lease;

 

(b) Covenants,
conditions, restrictions, reservations, agreements, easements and any rights of
way of record as of the effective date of this Lease provided that such
covenants, conditions, restrictions, reservations, agreements, easements and
any rights of way do not unreasonably impair Tenant’s intended development and
use of the Leased Premises;

 

(c) Boundary line
disputes, overlaps, encroachments, easements and possessory interests which
would be disclosed by an accurate survey or inspection of the Leased Premises;

 

(d) Zoning ordinances and
other governmental restrictions affecting the use of the Leased Premises
provided that such ordinances and restrictions do not unreasonably impair
Tenant’s intended development and use of the Leased Premises;

 

(e) Drainage tiles,
ditches, and waterways, and the rights of adjoining and downstream owners to
the use and uninterrupted flow of any waterway which may cross the Land;

 

(f) Public streets,
rights-of-way and highways existing as of the date hereof;

 

2

 

(g) All municipal city,
county, and state laws and ordinances, regulations and restrictions applicable
to and enforceable against the Leased Premises provided that such laws,
ordinances, regulations and restrictions do not unreasonably impair Tenant’s
intended development and use of the Leased Premises;

 

(h) The rights of the
United States of American, the State of Indiana and the public generally
relative to navigable waters, public easements between natural high and low water
lines, and other uses of the Ohio River; and

 

(i) Terms and provisions
of the redevelopment project as included in the Declaratory Resolution adopted
by the Evansville Redevelopment Commission on the 27th day of February, 1984
and of the Downtown Redevelopment Area Plan, as amended on September 20, 1994.

 

The Leased Premises shall
include all riparian rights and rights of access in and to the Ohio River that
are appurtenant to the Land and City agrees to execute any easement or other
document reasonably required to further evidence the inclusion within the
Leased Premises of such riparian rights and rights of access in and to the Ohio
River.

 

Tenant shall, at its
expense, obtain a leasehold owner’s policy of title insurance (ALTA Leasehold
Owners Policy-1992 or equivalent) issued by Chicago Title Insurance Company or
another reputable title insurance company selected by Tenant (“Title Company”),
insuring Tenant’s leasehold interest and showing marketable fee simple title in
the name of the Landlord, subject only to the exceptions stated above or
otherwise permitted by this Section 1.02 of this Lease (“Permitted Exceptions”),
and deleting the standard or pre-printed exceptions not permitted under this Section
1.02, no later than the expiration of the Preliminary Term. Such policy may
also insure (and be subject to) a Qualified Mortgagee as defined in Section 13.03
of this Lease. If the title insurance commitment issued prior to obtaining the
foregoing policy discloses any exceptions to title (whether listed as “exceptions”
or “requirements”) other than the foregoing Permitted Exceptions, City shall
use commercially reasonable efforts to correct such exceptions or obtain title
insurance satisfactory to Tenant against such exceptions prior to the
expiration of the Preliminary Term, and the expiration of the Preliminary Term
may be extended up to ninety (90) days for such purpose. If City is unable to
correct such exceptions Tenant may, by written notice, waive such exceptions
(which will thereby become Permitted Exceptions) and accept such title as City
has or may cancel and terminate this Lease, in which latter event this Lease
shall terminate and Tenant shall restore the Land to the condition existing on
the date hereof if so directed by the City. City shall execute and deliver to
Tenant a Lessor’s Affidavit in form reasonably acceptable to the Title Company
and Tenant, making such representations regarding authority, possession,
ownership, absence of mechanics liens or claims, and the like as are necessary
to cause the Title Company to delete any exceptions that are not Permitted
Exceptions. Tenant shall be entitled to obtain such endorsements as it or its
Qualified Mortgagee shall request.

 

Section 1.03. Easements and Vacations. Tenant shall have
the right to enter into any reasonable agreements with utility companies, the
State of Indiana, the City and its agencies and departments (and others as may
be appropriate upon prior consent of the City), either granting

 

3

 

or vacating adjacent
sidewalks, rights-of-way and air rights, or creating easements in favor of such
entities as may in Tenant’s reasonable judgment be appropriate in order to
facilitate the construction, use or operation of the Leased Premises as intended
by this Lease, and City (in its capacity as owner of the fee interest in the
Leased Premises), without cost to City, shall execute any and all documents,
agreements and instruments, and take all other appropriate actions, necessary
in order to effectuate the same.

 

Section 1.04. City’s Representations. City represents and
warrants that:.

 

(a) City is a municipal
corporation under the laws under the State of Indiana;

 

(b) The execution,
delivery and performance by City of this Lease and the documents referred to
herein are within the power of the City, have been authorized by all necessary
action and do not contravene any provision of the laws, rules and regulations
of the State of Indiana, its political subdivisions, and the United States, and
all legal prerequisites for the execution and delivery of this Lease have been
satisfied;

 

(c) This Lease and the
documents and instruments referred to herein have been duly executed and
delivered by City; and

 

(d) This Lease and the
documents and instruments referred to herein constitute the valid and binding
obligations of City.

 

Section 1.05. Quiet Enjoyment; City Default. Upon paying
the Rental, Impositions and other charges to be paid by Tenant as herein
provided, and observing and performing the covenants, agreements and conditions
of this Lease on its part to be kept and performed, subject to the Permitted
Exceptions, Tenant shall quietly have and enjoy Leased Premises during the
Preliminary Term, the Original Term and any Extended Terms, without hindrance,
interference, or molestation of any sort. Upon default by City in any covenant,
agreement or condition of this Lease on its part to be kept, Tenant shall,
after thirty (30) days’ written notice to City (or such shorter notice, if any,
as may be reasonable in the case of an emergency), Tenant shall be entitled to
pursue any and all remedies available to it at law or in equity, including,
without limitation, the right of specific performance of City’s obligations
under this Lease, and including the right, at Tenant’s discretion and election,
to terminate and cancel this Lease in the event of the interruption of Tenant’s
possession and quiet enjoyment. Upon any such termination and cancellation,
Tenant shall surrender the Leased Premises and shall have no further obligation
to pay Rental hereunder from and after the date of such termination and
cancellation.

 

ARTICLE
II.

 

THE
DEMISED TERM

 

Section 2.01. The Preliminary Term. The “Preliminary Term”
of this Lease shall commence on the date of execution of this Lease and shall
terminate on the date when its license

 

4

 

to conduct riverboat
gaming operations (the “License”) is issued to Tenant pursuant to the Gambling
Law. During the Preliminary Term, Tenant shall be entitled to rent-free
occupancy of the Land for the purpose of preparing the same (including without
limitation excavation, grading, leveling and other site work) for the
construction of the improvements necessary for the use of the Land as a site
for docking, loading and unloading the Riverboat. If for any reason whatsoever
Tenant fails to receive the License on or before November 24, 1995. Tenant
shall restore the Land to the condition existing on the date hereof if so
directed by the City. All provisions of this Lease other than the payment of
rent shall be applicable during the Preliminary Term.

 

Section 2.02. The Original Term. The initial operating
term of this Lease shall be for a period of approximately ten (10) years,
commencing on the date of issuance of the License and ending on the last day of
the 120th month thereafter which term shall be referred to hereinafter as the “Original
Term”.

 

Section 2.03. The Extended Term(s). If Tenant shall
comply with each of the terms, provisions and conditions of this Lease so that
at the end of the Original Term there is no uncured Event of Default of Tenant
hereunder, Tenant shall have the right and option to extend the term of this
Lease for an additional term of five (5) years. If Tenant shall comply with
each of the terms, provisions and conditions of this Lease so that at the end
of the first extended term there is no uncured Event of Default of Tenant
hereunder, Tenant shall have the right and option to extend the term of this
Lease for an additional extended term of five (5) years. If Tenant shall comply
with each of the terms, provisions and commitments of this Lease so that at the
end of the second extended term there is no uncured event of default of Tenant
hereunder, Tenant shall have the right and option to extend the term of this
Lease for an additional and final term of five (5) years. Such extended term or
terms may be referred to hereinafter as the “Extended Term” or the “Extended
Terms”.

 

Section 2.04. Exercise of Option to Extend. The options
to extend the term of this Lease shall be deemed to be automatically exercised
unless Tenant shall give City notice of the relinquishment of such option and
all succeeding options in the manner hereinafter specified for notices at least
one (1) year prior to the expiration of the Original Term or prior Extended
Term, as the case may be. The failure of Tenant to give such notice within the
time limited shall cause such option to be automatically exercised and this
Lease shall continue in full force and effect for the succeeding Extended Term.
The giving of notice of the relinquishment of an option to extend the term at
least one (1) year prior to the expiration of the preceding term shall cause
such Extended Term and any succeeding Extended Terms to lapse and become null
and void and of no further force or effect, and this Lease and all rights of
Tenant hereunder shall expire and terminate as of the end of the Original Term
or Extended Term, as the case may be.

 

Section 2.05. The Demised Term. The Preliminary Term and
the Original Term, together with any Extended Term or Terms, the option for
which is exercised, may be collectively referred to hereinafter as the “Demised
Term”.

 

5

 

Section 2.06. Use of Leased Premises. Tenant will use the
Leased Premises solely for the purpose of developing and operating a riverside
docking and access site and related facilities for the operation of the
Riverboat pursuant to a license to conduct a riverboat gaming operation in
Vanderburgh County, Indiana issued to Tenant by the Indiana Gaming Commission
in accordance with the Gambling Law, all as set forth in the Project Agreement.
Tenant shall use the Leased Premises in the manner described in the Project
Agreement and as further set forth herein. Tenant shall perform each and all of
the obligations of the “Developer” as set forth in the Project Agreement within
the time limits for such performance as set forth therein. To the extent not
already completely performed or rendered moot as of the date hereof, City shall
observe, and where appropriate perform, each and all of the obligations of the “Local
Government” as set forth in the Project Agreement. Although all of the terms,
conditions and provisions of the Project Agreement are incorporated herein by
this and other references thereto in this Lease, the terms thereof shall not be
deemed merged herein, but shall survive the execution of this Lease and
continue in full force and effect to the extent that the same are not
inconsistent with the terms of this Lease.

 

ARTICLE
III.

 

CONDITION
OF THE LEASED PREMISES

 

Section 3.01. Inspections. Tenant has heretofore caused
the Leased Premises to be thoroughly investigated and inspected with respect to
its environmental condition and the suitability of the Leased Premises for
construction and development of the Project, including inspections and testing
of subsurface and soil conditions (and including similar investigation of the
Ancillary Site). Tenant has determined that the Leased Premises and the
Ancillary Site are free from any “Hazardous Material” as hereinafter defined
and do not include any regulated wetlands or habitats for endangered or other
protected species or archaeologically significant areas. Tenant has determined
that the Land (and the Ancillary Site), including subsurface soils, is suitable
and will continue to be suitable for construction, support, operation and
maintenance of the Project and all of its improvements and meets all
governmental standards for the construction, operation and maintenance of the
Project. Tenant hereby accepts delivery of possession of the Leased Premises in
their present condition.

 

ARTICLE
IV.

 

RENT

 

Section 4.01. Rent Schedule. Tenant hereby agrees to pay
to City a percentage of the Adjusted Gross Receipts (“AGR”) as defined in the
Gambling Law (the “Percentage Rent”), but not less than the guaranteed minimum
annual rental, for each year of the Demised Term as set forth in Schedule 4.01
attached hereto (the “Rent Schedule”).

 

Section 4.02. Use of Term “Lease Year”. Except as
otherwise expressly provided hereinafter, the use of the term “Year” or “Lease
Year” in this Lease shall refer to a period

 

6

 

commencing July 1 and
terminating as of the end of the last day of June of the succeeding year, the
first complete such Year or Lease Year to commence July 1, 1995, and to
terminate as of the end of June, 1996. In the case of partial Lease Years that
may exist if this Lease is terminated at a date other than its normal
expiration date, or if Tenant should commence riverboat gaming operations prior
to July 1, 1995, the Adjusted Gross Receipts bases against which Percentage
Rent is to be paid shall be reduced proportionate to the duration of the
partial Lease Year in relation to a full Lease Year on a per diem basis.

 

Section 4.03. Maintenance of Records. Tenant shall keep
at a location in Evansville, Indiana, a permanent, accurate set of books and
records of all Adjusted Gross Receipts (as defined in the Gambling Law) from
its operations conducted at or from the Leased Premises and the Riverboat
operations during the Demised Term. Such pertinent records shall include,
without thereby being limited to, all records reflecting total Gross Receipts
received by Tenant from the operation of the Riverboat and all proper
deductions therefrom. Such records shall include a copy of all state wagering
tax returns and all other similar tax returns and all portions of, and
schedules to, all federal and state income tax returns, gross income tax
returns, and adjusted gross income tax returns pertinent to the determination
of Adjusted Gross Receipts that Tenant or any sublessees, licensees,
concessionaires or other operators of the Riverboat whose receipts constitute
AGR may have filed. All such pertinent records will be maintained for a period
of at least three (3) years after the expiration of each Lease Year and, upon
three (3) days’ prior written notice to Tenant by City, shall be made available
to City and its agents or auditors at any time during said period during
ordinary business hours for examination and review.

 

Section 4.04. Annual Sales Statements. On or before
ninety (90) days after the expiration of Tenant’s fiscal year, Tenant shall
deliver to City, at the place where rent is payable, a complete statement, duly
certified by a reputable firm of independent Certified Public Accountants
approved by City, showing in reasonable detail the amount of Adjusted Gross
Receipts derived from the operation of the Riverboat during the preceding Lease
Year. At the same time as such statement is delivered to City, Tenant shall pay
to City any Percentage Rent that such statement shows to be due in excess of
all rents theretofore paid for the Lease Year, or City shall credit Tenant
against the next rental payable hereunder if such report shall show that the
rental for the Lease Year was overpaid. Such annual statement shall be
delivered to City even if such statement shows that there is no additional
Percentage Rent due City. City shall not refuse to approve any firm of
Certified Public Accountants without reasonable cause.

 

Section 4.05. Audit of Annual Statements. In the event
that City is not satisfied with the statement submitted by Tenant pursuant to Section
4.04, City shall have the right to make a special audit, by a reputable firm of
independent Certified Public Accountants selected by City, of the books and
records hereinbefore required to be made and preserved by Tenant. If (after
consultation by City’s auditors with Tenant’s accountants) such audit shall
show a deficiency in reported Adjusted Gross Receipts for the period covered in
excess of Fifty Thousand Dollars ($50,000.00), Tenant shall reimburse City for
all costs incurred in connection with such audit. If such audit shall show any
deficiency in the amount of payment of Percentage Rent by Tenant

 

7

 

to City, the amount of
such deficiency in Percentage Rent shall be payable to City within ten (10) days
after the date of completion of such audit. If such audit should show that
Percentage Rent for the period was overpaid, Tenant may credit the amount of
such overpayment against the next installment(s) of Rental.

 

Section 4.06. Additional Financial Reports. In addition
to the annual sales statement to be provided by Tenant pursuant to Section 4.04,
within thirty (30) days after the end of each calendar quarter, Tenant shall
deliver to City the following financial information, certified by the chief
executive officer or the chief financial officer of Tenant with respect to the
Project:

 

	
  ·

  	
  number of patrons
  (whether or not admission is paid)

  
	
   

  	
   

  
	
  ·

  	
  statistics on distance
  travelled by patrons

  
	
   

  	
   

  
	
  ·

  	
  number of employees at
  the end of each quarter

  
	
   

  	
   

  
	
  ·

  	
  statistics on each goal
  outlined in Exhibit 6 to the Project Agreement

  
	
   

  	
   

  
	
  ·

  	
  total capital
  investment to date

  
	
   

  	
   

  
	
  ·

  	
  average wages paid
  overall, at supervisor/manager level and at director/vice president level

  
	
   

  	
   

  
	
  ·

  	
  fringe benefits as a
  percentage of wages paid, including a list of such benefits

  
	
   

  	
   

  
	
  ·

  	
  number of employees
  that reside in 4th and 6th wards of the City, including job classification
  data

  
	
   

  	
   

  
	
  ·

  	
  number of internal
  promotions

  
	
   

  	
   

  
	
  ·

  	
  amount spent with local
  suppliers on construction and total dollars spent

  
	
   

  	
   

  
	
  ·

  	
  amount spent with local
  suppliers on operations/vending and total dollars spent

  
	
   

  	
   

  
	
  ·

  	
  total quarterly
  marketing expenses

  

 

Section 4.07. Non-Confidentiality of Statements and Audits. Tenant
recognizes that City is a public agency and, therefore, cannot agree to hold in
confidence all sales figures and other information obtained from Tenant or by
an inspection and audit of Tenant’s books and records.

 

Section 4.08. Relationship of Parties. Neither the
provisions herein set forth for the computation of Percentage Rent, nor any one
or more agreements herein contained, is intended, nor shall the same be deemed
or construed, to create a partnership between City and Tenant, to make them
joint venturers, nor to make City in any way responsible for the debts or
losses of Tenant.

 

Section 4.09. Definition of Rental. The term “Rental” as
used in this Lease shall be deemed to refer to and include both Minimum
Guaranteed Rent and Percentage Rent as well as any required payment designated
as additional rent or rental.

 

Section 4.10. Place of Payment. All Rental reserved
herein shall be payable to City of Evansville Redevelopment Commission in care
of the City Controller, City of Evansville, 300

 

8

 

Civic Center Complex,
N.W. Martin Luther King, Jr. Boulevard, Evansville, Indiana 47708. City
reserves the right to change the method and place of payment of Rental by
notice given to Tenant in the manner hereinafter provided.

 

ARTICLE
V.

 

IMPOSITIONS

 

Section 5.01. Obligation of Payment. Tenant covenants and
agrees to pay (except as provided in Section 5.02 hereof) all real estate
taxes, assessments and other governmental charges, general and special,
including assessments or public improvements or benefits, which shall during
the Demised Term be laid, assessed, levied or imposed upon or become due and
payable or a lien upon the Leased Premises or any part thereof, and any and all
levies, taxes or other charges imposed upon the Leased Premises or the Rental
payable hereunder or otherwise which are imposed as a substitute for general
property taxes or are specially designated to produce funds for general
property tax relief, whether imposed in the form of a tax or imposition upon
City or Tenant, all of which taxes, assessments, levies and other governmental
charges shall hereinafter be referred to as “Impositions”.

 

Section 5.02. Limitations and Forms of Taxation. Nothing
in this Lease contained shall require Tenant to pay any income or excess
profits taxes assessed against City, or municipal, state or federal capital
levy, estate, succession, inheritance or transfer taxes of City or any
successor owner of the fee of the Leased Premises, or corporation franchise
taxes imposed upon any corporate owner of the fee of the Leased Premises;
provided, however, that,

 

(a) if at any time during
the term of this Lease, the methods or scope of taxation prevailing at the
commencement of the term hereof shall be altered or enlarged so as to cause the
whole or any part of the taxes, assessments, levies, charges, or any other
Imposition now or hereafter levied, assessed or imposed on real estate and the
improvements thereon to be levied, assessed and imposed, wholly or partially as
a capital levy, or otherwise, on the rents received therefrom, or

 

(b) if by reason of any
such alteration or enlargement of the methods or scope of taxation, any tax,
corporation franchise tax, assessment, levy (including but not limited to any
municipal, state or federal levy), charge or any other Imposition, or any part
thereof, shall be measured by or based in whole or in part, upon the Leased
Premises, or the value thereof, and shall be imposed upon City, then all such
taxes, assessments, levies, charges or other Impositions, or the part thereof
so measured or based, shall be deemed to be included within the term “Impositions”
for the purposes hereof, to the extent that the same would be payable if the Leased
Premises were the only property of City subject thereto, and Tenant shall pay
and discharge the same as herein provided in respect of the payment of any
other Imposition.

 

9

 

Section 5.03. Installment Payments. If, by law, any such
Imposition is payable, or may at the option of the taxpayer be paid, in
installments (whether or not interest shall accrue on the unpaid balance of any
such Imposition paid in installments), Tenant may pay the same together with
any accrued interest on the unpaid balance of such Imposition in installments
as the same become due.

 

Section 5.04. Proration and Adjustment. Any Imposition
relating to a fiscal period of the taxing authority, a part of which period is
included within the Demised Term and a part of which is included in a period of
time before or after the Demised Term, shall be adjusted as between City and
Tenant so that City shall pay that proportion of any such Imposition which
relates to any part of the fiscal period for which such Imposition is made that
is included in the period of time either before or after the Demised Term, and
Tenant shall pay that portion of any such Imposition which relates to that part
of the fiscal period within the Demised Term, whether payment of such
Imposition is required during the Demised Term or thereafter.

 

Section 5.05. Contests. Tenant shall have the right to
contest the amount or validity of any Imposition imposed or sought to be
imposed upon the Leased Premises or Tenant’s leasehold estate therein by
appropriate legal proceedings, but this shall not be deemed or construed in any
way as relieving Tenant of its covenant to pay any such Imposition. City will
join in any such proceeding to the extent necessary to permit Tenant to properly
prosecute the same, provided, however, that City shall not be subjected to any
liability for the payment of any costs or expenses in connection with any such
proceedings brought by Tenant, and Tenant shall indemnify and hold City
harmless from any such costs or expenses. In the event of any such proceeding
by Tenant to challenge the amount or validity of any such Imposition, Tenant
shall either pay the Imposition and prosecute the proceedings for the purpose
of obtaining a refund of such Imposition or a portion thereof, or Tenant shall
provide City either with a bond, collateral or a personal guarantee of a
responsible party approved by City sufficient to cover all costs and expenses
incurred or to be incurred in connection with such proceedings and to assure
the full payment of such Imposition and any penalties, interest or delinquency
charges that may be imposed thereon in the event that the proceedings
instituted by Tenant are concluded unsuccessfully.

 

Section 5.06. Taxation of City Property. Tenant acknowledges
that the leasehold estate of Tenant in the Leased Premises is taxable as the
property of Tenant as real estate under the terms of IC 6-1.1-10-37. Tenant
agrees not to apply for exemption of Tenant’s leasehold interest in the Leased
Premises from taxation on the basis of City’s fee simple ownership of the
Leased Premises.

 

Section 5.07. Personal Property Taxes. During the entire
Demised Term, Tenant shall pay all property taxes due and payable upon its
personal property located in, on or about the Leased Premises and in, or about,
the Riverboat and the Ancillary Site.

 

Section 5.08. No Tax Abatement. Tenant agrees not to
apply for any abatement of real property or personal property taxes on the
Leased Premises, the Ancillary Site, the Riverboat

 

10

 

or any improvements,
fixtures, equipment or other personal property located thereon or used in
connection therewith.

 

ARTICLE
VI.

 

CONSTRUCTION
OF IMPROVEMENTS

 

Section 6.01. Mechanics’ Liens. Tenant shall pay all sums
justly due to the contractors, sub-contractors, materialmen, laborers,
engineers, architects or other persons, firms or corporations rendering
services or furnishing material for the construction of improvements on the
Leased Premises. Tenant shall not suffer or permit any mechanic’s lien to be
filed against the Leased Premises or any part thereof or interest therein by
reason of any work, labor, services or materials supplied to Tenant or anyone
holding the Leased Premises or any part thereof through or under Tenant. If any
mechanic’s lien or claim or notice thereof shall at any time be filed against
the Leased Premises, Tenant shall cause the same to be discharged of record
within thirty (30) days after the date of Tenant’s first knowledge of the
filing of same. In the event that Tenant believes that it has a valid defense
to any such claim of lien which it desires to assert, Tenant may make such
defense upon delivery to City of an undertaking sufficient to indemnify City
against any losses, costs, expenses or damages in connection therewith with
such collateral as City may approve. If Tenant shall fail to discharge and
cause the release of such mechanic’s lien within such period, or to provide
satisfactory indemnification to City, then, in addition to any other right or
remedy of City, City may, but shall not be obligated to, discharge the same
either by paying the amount claimed to be due or by procuring the discharge of
such lien by deposit in court, or by giving security in such other manner as
is, or may be, prescribed by law. Any amount paid by City for any of the
aforesaid purposes, together with all legal fees and other expenses of City,
including the cost of employment of special counsel to defend against any such
claim, or otherwise incurred by City in procuring the discharge of such claimed
lien, with all necessary disbursements in connection therewith, together with
interest thereon at a rate that is four hundred (400) basis points higher than
the rate of “prime interest” during the period of the default as published in The Wall Street Journal, (the “Default
Rate”) from the date of payment to the date of reimbursement, shall be repaid
by Tenant to City upon demand, and if unpaid may be treated as additional rent.
Nothing herein contained shall be treated as consent or agreement on the part
of City to subject City’s fee simple title in and to the Leased Premises to any
liability for claims of contractors, subcontractors, materialmen, laborers,
engineers, architects or other persons, firms or corporations rendering
services or furnishing materials for any improvements located upon and forming
a part of the Leased Premises or for any repair, maintenance, restoration,
change or alteration of any such improvements.

 

11

 

ARTICLE
VII.

 

UTILITIES
AND SERVICES

 

Section 7.01. Use Charges. Tenant shall pay all charges
for steam, water, gas, telephone, electricity, sewer service and other utility
and communications services rendered or used on or about the Leased Premises
and all charges for refuse or garbage collection and disposal made in respect
of the Leased Premises and the Riverboat and the Ancillary Site and shall
indemnify and hold City harmless from any charges, claims, costs or expenses in
connection with any such services.

 

Section 7.02. Suppliers of Utility Services. The
obligations of Tenant under the terms of this Article VII shall not be
affected, limited or reduced by reason of the fact that any of the utility and
communications services or other services referred to herein may at any time be
provided by the City of Evansville, or any agency or public trust controlled,
operated or otherwise associated with the City of Evansville, or by any other
governmental agency. To the extent City regularly supplies any such utility
services or commodities (e.g., water or sewer services) in the geographical
area where the Leased Premises are situated, City shall make such services or
commodities available to Tenant. City shall charge Tenant for such services or
commodities as may be provided by City only such fees as City charges similar
users of such services or commodities under similar conditions.

 

ARTICLE
VIII.

 

CASUALTY
INSURANCE

 

Section 8.01. Required Coverage. Tenant shall, during the
entire Demised Term, at Tenant’s own cost and expense, keep the buildings and
any other improvements at any time located upon the Land forming a part of the
Leased Premises, including all equipment in or appurtenant to the Leased
Premises essential to the operation and maintenance of the buildings (as
distinguished from equipment for operation of the business conducted therein)
and all alterations, changes, additions or improvements thereto, insured for
the mutual benefit of City and Tenant against loss or damage by fire (with
all-risk extended coverage) and, on demand of City, such other insurance then
procurable on commercially reasonable terms as City reasonably may deem
necessary for the protection of its interest in the Leased Premises and shall
demand of Tenant, in an amount equal to the full replacement value thereof with
deductible provisions if desired of not more than Two Hundred Fifty Thousand
Dollars ($250,000).

 

Section 8.02. Approved Insurors. All such policies shall
be taken in such companies which are authorized to do business in the State of
Indiana having an A.M. Bests Rating of “A” or better with a financial size
rating of “XII” or higher or, if such company is not rated by A.M. Bests, then
having a substantially similar or better rating by another reputable rating
company, as Tenant shall select or such other companies as City shall approve,
and such insurance shall be in a form satisfactory to City.

 

12

 

Section 8.03. Use of Proceeds. The proceeds of any and
all policies of insurance upon the Leased Premises at any time issued under
this Article VIII shall be used as a trust fund toward the repair,
reconstruction, building or rebuilding of such buildings or improvements and,
to that end, all such policies of insurance shall provide that loss, if any,
shall be paid to a national bank having its principal office in the City of
Evansville, Indiana, designated by Tenant as trustee of said insurance
(hereinafter referred to as the “Insurance Trustee”) which is hereby made
trustee for the parties hereto and the holder of any Qualified Mortgage (as
defined in Section 13.03) of Tenant’s leasehold interest in the Leased Premises
for that purpose, and said Insurance Trustee is hereby given an insurable
interest in the Leased Premises to that extent. It is mutually agreed that all
insurance monies collected upon any policies covering any buildings or
improvements at any time located upon the Leased Premises shall be paid over to
the Insurance Trustee and shall be held by it and applied as hereinafter
provided. Further, Tenant shall deposit with the Insurance Trustee an amount
equal to the deductible portion of such loss, which deposit shall thereafter be
considered a part of the insurance proceeds. If the Demised Term should expire
prior to completion of such repair or restoration, all such proceeds shall be
paid over to City free of any claims thereto of Tenant or any mortgagee of
Tenant’s leasehold interest.

 

Section 8.04. Policies. All such policies of insurance
shall be made out in the name of City, Tenant, and any Qualified Mortgagee, as
their interests may appear, and shall provide that the loss thereunder shall be
payable to the Insurance Trustee. Duplicate copies of the policies, certified
by the insurer to be true and complete, shall be delivered to the Insurance
Trustee and be held by it as additional security for Tenant’s covenants and
agreements herein contained. Duplicate copies of each such policy, certified by
the insurer to be true and complete, shall also be delivered to City and to any
Qualified Mortgagee. Tenant further covenants and agrees to pay the reasonable
charges of the Insurance Trustee for its services hereunder. If Tenant shall at
any time fail or neglect to comply with these covenants herein contained
relating to the procuring or keeping of insurance, then City may, at its
option, subject to the provisions of this Lease, insure the buildings and
improvements on the Leased Premises and take out the insurance as herein
provided. Any costs and expenses incurred by City in connection with procuring
or maintaining any such insurance coverage shall be reimbursed to City by
Tenant immediately upon demand as additional rent with interest at the Default
Rate. If at any time the policies or any of them delivered to the Insurance
Trustee shall not be in a company approved by City and any Qualified Mortgagee,
Tenant shall replace such policies for other insurance approved by City and
such Qualified Mortgagee, and in default of so doing, City or said Qualified Mortgagee
may, at the option of either, replace any of said policies with other insurance
approved by them and Tenant agrees to pay the premiums thereon promptly when
notified of such change in insurance. Each policy of such insurance shall
provide that the same may not be cancelled or reduced in coverage without
thirty (30) days’ advance written notice to City and any Qualified Mortgagee of
Tenant’s leasehold interest in the Leased Premises.

 

Section 8.05. Collection of Proceeds. The Insurance
Trustee shall not be responsible for the collection or non-collection of any
insurance money in any event but only for such insurance money and any
additional funds as shall come into its hands. City, Tenant, any

 

13

 

Qualified Mortgagee of
Tenant’s leasehold interest in the Leased Premises and any other person having
an interest under any such insurance policy shall cooperate with and aid the
Insurance Trustee in collecting any and all insurance money and will execute
and deliver as requested by the Insurance Trustee any and all proofs, receipts,
releases and other documents and writings whatsoever which may be necessary or
proper for such purpose. In the event that any person having an interest under
any such insurance policy shall fail or neglect so to cooperate or to execute,
acknowledge and deliver any such instrument, the Insurance Trustee may, as the
agent or attorney-in-fact of any such person, execute and deliver any proofs of
loss or any other instruments as may seem desirable to the Insurance Trustee
for the collection of such insurance monies, and all such persons having
obtained an interest in any such insurance policy shall be deemed to have
irrevocably nominated, constituted and appointed the Insurance Trustee its
proper and legal attorney-in-fact for such purpose.

 

Section 8.06. Renewal Policies. Not less than ten (10) days
prior to the expiration of any policy or policies of insurance as required
hereunder, Tenant shall provide renewal or replacement of such coverage. Not
less than ten (10) days prior to the expiration of any such policy or policies,
Tenant shall provide the Insurance Trustee and the City a binder indicating
commitments to renew or replace such policy or policies and as soon as possible
thereafter will deliver to the Insurance Trustee duplicate copies of the
policies, certified by the insurer to be true and complete, with proof of the
payment of the premiums thereon. At the same time, a duplicate copy of each
such policy, so certified, shall be delivered to City and to any Qualified
Mortgagee.

 

Section 8.07. Special Provisions. All such policies of
insurance shall provide that the proceeds thereof shall be payable: (a) without
regard to any fault or negligence of City, Tenant, or any sublessee, licensee,
concessionaire or other occupant of the Leased Premises (“Released Parties”)
which may have caused or contributed to such loss, and (b) without any rights
of the insurance company of subrogation against any such party, and Tenant
hereby releases each of the Released Parties from any such liability that is or
could have been covered by the insurance required to be carried by Tenant.
Further, such insurance policies shall waive all rights of the insurance
carrier to become subrogated to the rights of the holder of any mortgage upon
the Leased Premises or any interest therein to whom or for whose benefit any
proceeds of any such insurance may be paid.

 

Section 8.08. Compliance with Insurance Requirements.
Tenant shall not violate or permit to be violated any of the conditions or
provisions of any of said insurance policies, and Tenant shall so perform and
satisfy the requirements of the companies writing such policies that at all
times companies of good standing and approved by City shall be willing to write
and continue such insurance.

 

Section 8.09. Mortgage Terms. Any mortgage placed upon
the Leased Premises or Tenant’s interest therein shall contain provisions
appropriate to recognize and facilitate the provisions of this Article VIII as
to the payment, application and use of insurance proceeds.

 

14

 

Section 8.10. Change of Insurance Trustee. Should the
national bank designated as the Insurance Trustee decline to accept such Trust,
or having accepted such trust, resign as such Insurance Trustee, Tenant and any
Qualified Mortgagee shall agree upon and designate another national bank having
its principal office in Evansville, Indiana as such Insurance Trustee, and
lacking any such agreement and designation of an Insurance Trustee, the
proceeds of any such insurance shall be paid to the City which shall hold such
proceeds in trust for the uses and purposes as herein stated, and shall
disburse the same in accordance with the requirements as set forth in Article X
of this Lease.

 

Section 8.11. Rights Upon Termination. Upon the
expiration of this Lease, the unearned premiums upon any insurance policies or
certificates thereof lodged with City by Tenant shall be payable to Tenant only
if Tenant shall not then be in default in keeping, observing or performing any
of the terms of this Lease.

 

Section 8.12. Blanket Insurance Policies. Any insurance
required to be provided by Tenant pursuant to this Lease may be provided by
blanket property insurance or umbrella liability insurance covering the Leased
Premises and other locations or operations of Tenant or affiliates of Tenant,
provided that such blanket or umbrella insurance complies with all other
requirements of this Lease and any Qualified Mortgagee with respect to the
insurance involved and will not be limited in amount or otherwise impaired as a
result of the payment of losses with respect to any other property. In such
event, the required amounts of coverage set forth herein shall be net of claims
filed, if any, or may be provided for by a minimum coverage endorsement or
rider to such policy with respect to Tenant’s property and/or operations on the
Leased Premises, and any such policy shall not contain any clause permitting
the insured to become a co-insurer of any loss with the insurer by reason of
failure to insure in a sufficient amount with respect to Tenant’s property or
operations on the Leased Premises.

 

ARTICLE
IX.

 

INDEMNITY
AND LIABILITY INSURANCE

 

Section 9.01. General Indemnity. Tenant shall hold City
harmless against any and all liability, loss, damage or expense, claims, suits
or causes of action arising out of any event occurring during the Demised Term
and any orders, decrees or judgments which may be entered therein, brought for
damages or alleged damages resulting from any injury to person, damage to
property, or from loss of life sustained in or about the Leased Premises and
the buildings and improvements forming a part thereof, or in or upon die Ohio
River or any of its tributaries or its or their shorelines (the “River”) in
front of or appurtenant thereto, or in, on or about the Riverboat, by any
person or persons whatever except in the case of any such cause of action
arising out of the sole negligence of the City. It is the intention and
agreement that City shall not be liable for any personal injuries or damage to
Tenant or its Guarantor, or the trustees, partners, beneficiaries,
shareholders, officers, agents or employees of Tenant or Guarantor, or any
occupant of any part of the Leased Premises, or for any injury or damage to any
goods, wares, merchandise, fixtures, equipment or property of Tenant or of any
occupant of any part

 

15

 

of said Leased Premises
irrespective of how the same may be caused, whether from action of the elements
or acts of negligence of the owners or occupants of any adjacent properties
except in the case of any such cause of action arising out of the sole
negligence of the City. Tenant shall and will indemnify and save harmless City
of and from any and all liability, loss, damage or expense (including legal
expenses and court costs), causes of action, suits, claims and judgments,
(provided such action, suit or claim is not fully covered by insurance),
arising from injury to persons or damage to property of any and every nature
and for any matter or thing alleged to arise out of Tenant’s activity or lack
thereof occurring in, on or about the Leased Premises or any part thereof or
any building thereon, the River adjacent thereto or the Riverboat without
regard to the nature or cause of such injury or damage except for any such
cause of action, suit, claim or judgment arising out of the sole negligence of
the City or its agents or employees. The obligations of this indemnity shall
survive the expiration or termination of this Lease and shall continue in
effect with respect to any event occurring during the Demised Term or any
period of continued occupancy by Tenant thereafter.

 

Section 9.02. Liability Insurance. Tenant covenants to
provide City with general public and liquor liability insurance policies in
forms and companies approved by City in respect to the Leased Premises and the
Riverboat and the Ancillary Site with limits of liability of not less than
Twenty-Five Million Dollars ($25,000,000) for any persons injured or damage to
property in any one occurrence, and to pay the premiums thereon. All such
insurance shall name both City (including each constituent unit or agency
thereof) and Tenant as parties insured thereunder. All such insurance shall
provide that City will be given thirty (30) days’ advance written notice of any
cancellation or reduction in coverage of insurance under such policy. A
duplicate of such policy certified by the insurance company to be a true and
complete copy thereof shall be delivered to and retained by City. Prior to the
expiration of any policy of such insurance, Tenant shall pay the premium for
renewal or replacement insurance. Not less than ten (10) days prior to the
expiration of any policy of such insurance, Tenant shall provide to City a
binder for renewal or replacement insurance and will deliver to City evidence
of payment of the premiums prior to expiration. As soon as possible thereafter,
Tenant will deliver the duplicate copy of such policy certified by the
insurance company to City. Copies of all endorsements to any such policy issued
after the date of such policy shall be delivered to City. If Tenant shall at
any time fail or neglect to comply with its covenants herein contained relating
to the procuring or keeping of any such insurance, then City may, at its
option, procure such insurance and all costs or expenses incurred by City in
procuring such insurance with interest thereon at the Default Rate shall be
reimbursed to City by Tenant and shall be deemed to be additional rent.

 

Section 9.03. No Separate Insurance. Tenant shall not
take out separate insurance concurrent in form or contributing in the event of
loss with that required by this Lease to be furnished by, or which may
reasonably be required to be furnished by, Tenant, unless City is included
therein as an additional or a named insured, as appropriate to the type of
policy, with any loss payable thereunder to be paid as in this Lease otherwise
provided. Tenant shall immediately notify City of the taking out of any
separate insurance and shall cause a duplicate copy of such insurance policy,
certified by the issuing insurance company to be a true and

 

16

 

complete copy thereof, to
be delivered to City and, in the case of casualty insurance, to the Insurance
Trustee.

 

Section 9.04. Other Hazards. Notwithstanding anything
herein contained, Tenant shall provide City, at Tenant’s cost and expense, with
such insurance and in such amounts as may from time to time be reasonably
required by City as insurance against insurable hazards which from time to time
are commonly insured against in the case of premises similarly situated.

 

Section 9.05. Adjustments in Amounts of Liability Insurance. If
by reason of changed economic conditions or by reason of experience, City
should determine the insurance amounts referred to in Section 9.02 hereof to be
inadequate, Tenant shall increase the amounts of such insurance carried to the
extent that City may reasonably require.

 

ARTICLE
X.

 

REPAIR
OF CASUALTY DAMAGE

 

Section 10.01. Tenant’s Responsibility. If any building or
improvement at any time standing or erected upon the Leased Premises shall be
destroyed or damaged during the Demised Term, in whole or in part, by fire or
as a result directly or indirectly of war, or by act of God, or occurring by reason
of any causes whatsoever, Tenant shall give prompt notice thereof to City, and
Tenant, at Tenant’s own cost and expense, shall promptly repair, replace and
rebuild the same, at least to the extent of the value, and as nearly as
practicable to the character of the building or improvements, existing
immediately prior to such occurrence. The provisions of Section 21.04 hereof
shall be applicable to these obligations.

 

Section 10.02. Conditions of Restoration. Prior to
commencement of the repair, replacement and rebuilding of the building or
improvements damaged, Tenant shall submit to City plans and specifications for
such restoration together with an estimate of the cost of such work prepared by
a competent architect who will be in charge of such work in accordance with the
terms of the Project Agreement and this Lease relating to construction and
alteration. Before commencing any such work, said plans and specifications
shall be filed with all state, municipal or other governmental departments or
authorities having jurisdiction thereof, and all necessary permits for such
work shall be obtained. Before commencing any such work, Tenant shall, at
Tenant’s own cost and expense, deliver to City a general accident and public
liability policy as more particularly described in Article IX hereof, but said
policy shall recite and refer to such work. Tenant shall pay the increased
premiums, if any, charged by the insurance companies carrying the insurance on
said buildings to cover the additional risk during the course of such work.

 

Section 10.03. Disbursement of Insurance Proceeds. The
Insurance Trustee shall permit the net proceeds of any insurance to be applied
in the payment of the cost of such repairing or rebuilding as the same
progresses, payments to be made against properly certified vouchers of a
competent architect or qualified project engineer in charge of the work who has

 

17

 

been approved by City
(such approval shall not be unreasonably withheld), the Insurance Trustee to
contribute out of such insurance proceeds to each payment to be made an amount
in such proportion to such payment as the whole amount received by the
Insurance Trustee shall bear to the total estimated cost of repairing or
rebuilding; provided, however, that the Insurance Trustee shall withhold from
each amount so to be paid by it ten per centum (10%) thereof until the work of
repairing or rebuilding shall have been completed and proof furnished that no
lien or liability has attached or will attach to the Leased Premises or to City
in connection with such repairing or rebuilding. If the total estimated cost of
the repairs or rebuilding shall exceed the amount of net proceeds of such
insurance received by the Insurance Trustee, City shall be entitled to require
that before such repairing or rebuilding be commenced it be secured by a surety
bond or cash deposit at least equal to the amount of the excess of such
estimated cost over the net insurance proceeds, or by other means approved by
City, as security for the due completion within a reasonable time of such
repairs and rebuilding and the payment of all costs and expenses incurred in
connection therewith. In any event, the total cost of all such rebuilding,
repair or restoration shall be borne by Tenant without any contribution thereto
by City. If the insurance proceeds should exceed the cost of such repairs or
rebuilding, the balance remaining after payment of the cost of such repairs or
rebuilding shall be paid over and belong to Tenant. The Insurance Trustee may
deduct from any insurance proceeds paid to it the amount of its charges for
acting as such trustee and any reasonable expenses incurred by it in connection
with such trust

 

Section 10.04. Extension. In the event the total estimated
cost of the repairs or rebuilding shall exceed the amount of net proceeds of
such insurance received by the Insurance Trustee, and/or Tenant is required to
contribute to the cost of repairs and rebuilding, in an amount of more than the
aggregate of any applicable deductible portion of the loss plus One Hundred
Thousand Dollars ($100,000), and if this occurs at any time during either the
second or third Extended Term of this Lease, then Tenant shall be entitled to,
at its election, automatically extend the term of this Lease so that the
Demised Term (including all extension options as if exercised) following the
date of substantial completion of such repair and restoration shall be ten (10)
years. The failure of Tenant to give notice of its election not to so extend
the term of this Lease shall cause such option to be automatically exercised
and this Lease shall continue in full force and effect for such ten (10) years
from the date of substantial completion of the repair and restoration, for the
Rentals, and upon all of the terms and provisions, applicable during the final
Extended Term described in Section 2.03 of-this Lease.

 

Section 10.05. Prompt Performance of Work. All such work
of repair or restoration shall be commenced within twenty (20) days after
settlement shall have been made with the insurance companies, the insurance
money shall have been turned over to the Insurance Trustee and the necessary
permits as herein provided for shall have been obtained. All such work shall be
completed within a reasonable time, due regard being had to the conditions
prevailing. All such work shall be completed free and clear of all liens and
encumbrances upon the title of City in and to the Leased Premises. If the work
of repairing, replacing or rebuilding said damaged or destroyed improvements
shall not have been commenced within the twenty (20) day period provided for
herein, or if after commencement shall not be pursued with due diligence, such
fact

 

18

 

or facts shall be deemed
an “Event of Default” as hereinafter defined. The “force majeure” provision of Section
21.04 shall apply to the foregoing time periods and requirements. In case any
mortgage upon Tenant’s leasehold interest shall be in force at the time of any
damage to or destruction of any improvements on the Leased Premises, then the
holder of such mortgage is hereby authorized to repair the damaged improvements
under the same terms and conditions as are applicable in the case of repair,
restoration or replacement by Tenant. The mortgagee so repairing, restoring or
replacing the damaged improvements shall, subject to compliance with all the
conditions contained in this Article X, be subrogated to the rights of Tenant
to the insurance proceeds payable as a result of the damage or destruction, and
shall be entitled to have (and City and Tenant hereby authorize the Insurance
Trustee to so pay) all said insurance proceeds paid out by the Insurance
Trustee in the same manner in every respect as if the holder of the mortgage
were Tenant under this Lease.

 

Section 10.06. Minor Damage. In the event of any minor
damage to any buildings or improvements located on and forming a part of the
Leased Premises, which damage is hereby defined as being any damage which can
be wholly repaired for a cost not in excess of Two Hundred Fifty Thousand
Dollars ($250,000), Tenant shall promptly repair such damage and restore the
building or improvements thereby damaged to the condition existing immediately
prior to such occurrence, and Tenant shall not be required to submit plans and
specifications to City for approval under the terms of this Lease (but may be
required to provide such plans to comply with applicable building codes and
similar regulations), nor shall Tenant be required to furnish any cost
estimates with respect to such work other than such as is necessary to
establish that the cost of such repair and restoration is less than Two Hundred
Fifty Thousand Dollars ($250,000).

 

Section 10.07. No Termination of Lease. This Lease shall
not terminate or be affected in any manner by reason of the destruction or
damage in whole or in part of any building or improvement located or erected
upon the Leased Premises, or by reason of the untenantability of such building
or improvement, in whole or in part, and the Rental reserved in this Lease as
well as all other charges payable hereunder shall be paid by Tenant in
accordance with the terms, covenants and conditions of this Lease, without
abatement, diminution or reduction.

 

ARTICLE
XI.

 

GENERAL
MAINTENANCE AND REPAIRS

 

Section 11.01. Tenant’s Responsibility. During the Demised
Term, Tenant will, at its cost and expense, maintain and keep the Leased
Premises and all buildings and improvements erected or placed thereon in good
condition, repair and order, both inside and outside, structural and
non-structural, including the sidewalks and curbs thereon or adjoining or in
front of the Leased Premises and all connections with the street, steam, water,
electric, gas mains and sewers and the elevators, heating and air conditioning
apparatus, blowers and machinery and such other fixtures used in connection
with the operation of the buildings located upon and forming a part of the
Leased Premises, including any and all replacements thereto made by

 

19

 

Tenant. This
responsibility shall not extend to anything outside the Leased Premises except
to the extent provided in the Project Agreement. Tenant shall indemnify and
save City harmless from and against any and all costs, expenses, claims,
losses, damages, fines or penalties, including reasonable legal fees, because
of or due to Tenant’s failure to comply with the foregoing, and Tenant shall
not call upon City for any disbursement or outlay of money whatsoever for any
such repair and maintenance, and Tenant hereby expressly releases and
discharges City of and from any liability or responsibility whatsoever in
connection therewith. Tenant shall in no event permit the Leased Premises or
any part thereof to become blighted during the Demised Term. The indemnity
herein contained shall survive the expiration or termination of this Lease.

 

ARTICLE
XII.

 

ALTERATIONS

 

Section 12.01. Rights of Tenant. Tenant shall have the
right to make changes or alterations to the buildings initially constructed
upon and forming a part of the Leased Premises, provided, however, that any
such changes or alterations shall be made in all cases subject to the
conditions therefore hereinafter set forth in this Article, which conditions
Tenant agrees to observe and perform.

 

Section 12.02. Character of Change. No change or
alteration shall at any time be made which shall impair the structural
soundness or materially diminish the value of the building then located upon
and forming a part of the Leased Premises. No change or alteration shall at any
time be made which shall change the basic character or use of the buildings or
improvements located upon the Leased Premises in a manner that would materially
impair City’s anticipated income from Percentage Rent as provided in Section 4.01
of this Lease.

 

Section 12.03. Extent of Change or Alteration. No change
or alteration shall be made involving an expenditure in excess of One Hundred
Thousand Dollars ($100,000) without the prior written consent of City, and in
the event of any change or alteration involving an expenditure in excess of One
Hundred Thousand Dollars ($100,000), adequate provision for the payment of all
costs of such change or alterations shall be made in a manner approved by City
prior to commencement of work on such change or alteration. Such consent and
approval shall in no event be unreasonably withheld.

 

Section 12.04. Compliance With Laws, Etc. No changes or
alterations shall be undertaken until Tenant shall have procured and paid for
all required state, municipal and other governmental permits and authorizations
of the various state and municipal departments and governmental subdivisions
having jurisdiction of such work. All work done in connection with any change
or alteration shall be done in a good and workmanlike manner and substantially
in compliance with the building and zoning laws, and with all other laws,
ordinances, orders, rules, regulations and requirements of all federal, state
and other governmental authorities and the appropriate departments,
commissions, boards and officers thereof, and substantially in

 

20

 

compliance with the
orders, rules and regulations of the Indiana Inspection and Rating Bureau or
any other body now or hereafter constituted exercising similar functions.

 

Section 12.05. Insurance Coverages. At all times when any
change or alteration is in progress, there shall be maintained, at Tenant’s
expense, insurance as required by law to be provided by either City or Tenant
covering all persons employed in connection with the change or alteration,
general liability insurance for the mutual benefit of City and Tenant expressly
covering the additional hazards due to the change or alteration, and insurance
as required in Articles VIII and IX hereof expressly covering any additional
hazard or risk incurred due to the change or alteration.

 

Section 12.06. Ownership of Improvements. The
improvements, equipment,. fixtures, and related materials constructed or placed
upon the Land by Tenant shall be owned by Tenant during the Preliminary Term,
Original Term, and any Extended Term. All such improvements constructed by
Tenant upon the Leased Premises shall, upon termination or expiration of this
Lease (other than due to City’s default pursuant to Section 1.04 hereof) shall
become the property of City, without any further filing, recording or other
action by the parties with respect thereto. Tenant shall execute a quitclaim
deed in recordable form upon request of City, evidencing such automatic vesting
of title in the improvements. Tenant shall at no time cause or permit the fee
title to the improvements to be separated from its interest in the leasehold
estate created by this Lease (and for this purpose such improvements shall be deemed
a part of the leasehold estate) and no provision of this Lease shall be
construed as permitting same. The provisions of this Lease permitting Tenant to
mortgage its leasehold interest in the Leased Premises shall include the right
to mortgage Tenant’s interest in the improvements constructed by Tenant upon
the Leased Premises.

 

ARTICLE
XIII.

 

ASSIGNMENT
AND SUBLETTING

 

Section 13.01. Right to Assign and Sublet. Except as
otherwise provided in Section 13.03 and 13.15, Tenant may not assign, mortgage
or otherwise encumber this Lease and may not sublet the Leased Premises in
whole for a part of the Demised Term or in part for the whole or part of the
Demised Term without the prior written consent of City thereto, which consent
shall be at the sole discretion of the City. Any such assignee, mortgagee,
sublessee or any other party to whom Tenant shall have assigned any right or
interest under this Lease or in and to the Leased Premises with the prior
written consent of City shall take such right or interest subject to all of the
terms and conditions of this Lease and subject to all rights of City hereunder.
No rights to possession of the Leased Premises granted by Tenant with the prior
written consent of the City under the terms of this Article of this Lease shall
grant any right to possession or occupancy of any part of the Leased Premises
beyond the end of the Demised Term.

 

21

 

Section 13.02. Notification to City. In the event of the
mortgage of Tenant’s leasehold interest hereunder, Tenant shall notify City of
such fact and shall provide City with the name and address of such mortgagee.

 

Section 13.03. Mortgages of Tenant’s Interest. Tenant
shall have the right from time to time to mortgage its interest under this
Lease by mortgage to any pension or welfare fund or foundation, or savings
bank, bank, trust company or insurance company, or any other monetary or
lending institution, authorized to make and/or hold leasehold mortgage loans in
the State of Indiana (a “Qualified Mortgagee”), such mortgage being referred to
herein as a “Qualified Mortgage”. No more than one Qualified Mortgage shall be
in effect at any time. For the benefit of any Qualified Mortgagee who shall
have become entitled to notice as hereinafter provided in this Article, City
agrees, subject, nevertheless, to all the terms of this Lease, not to accept a
voluntary surrender of this Lease at any time while such Qualified Mortgage
shall remain a lien on said leasehold. No sale of the Leased Premises or any
portion thereof to Tenant shall terminate this Lease by merger or otherwise so
long as any leasehold mortgage held by a Qualified Mortgagee exists with
respect to the portion of the Leased Premises so sold.

 

Section 13.04. Notices to Leasehold Mortgagees. No notice
of Tenant’s default shall be deemed to have been given by City to Tenant unless
and until a copy thereof shall have been so given to any Qualified Mortgagee of
the character described in Section 13.03 who shall have notified City of its name,
address and its interest in the Leased Premises prior to City’s issuance of
such notice. Tenant irrevocably directs that City accept, and City agrees to
accept, performance and compliance by any such Qualified Mortgagee of and with
any of the terms of this Lease with the same force and effect as though kept,
observed or performed by Tenant; but City shall not be obligated to accept such
performance and compliance if, at any time, City shall not be furnished with
evidence satisfactory to city of the interest in this Lease claimed by the
party tendering such performance and compliance. Nothing contained herein shall
be construed as imposing any obligation upon any such Qualified Mortgagee to so
perform or comply on behalf of Tenant.

 

Section 13.05. Qualified Mortgagees’ Right to Cure. So
long as a Qualified Mortgage shall remain unsatisfied, upon the default by
Tenant in the performance of .any obligation of Tenant under this Lease not
involving the payment of Rentals, Impositions, insurance premiums, or other
amounts required to be paid by Tenant under this Lease (“Nonmonetary Default”),
City will not: (a) terminate this Lease or Tenant’s right of possession of the
Leased Premises; (b)exercise any right of reentry provided in the Lease or
otherwise by law; (c) take possession of and /or relet the Leased Premises or
any portion thereof; or (d) enforce any other right or remedy which may affect
the rights of the Qualified Mortgagee, so long as the Qualified Mortgagee has
promptly commence and is diligently prosecuting the cure of such Nonmonetary
Default including, without limitation, by commencing judicial foreclosure or
other proceedings to obtain possession of the Leased Premises if possession
thereof is essential to cure such default to enable the Qualified Mortgagee to
cure such default, and the Qualified Mortgagee upon obtaining possession
diligently completes the cure thereof. The following events of default shall
not, as between City and the transferee at foreclosure sale or assignment in
lieu of foreclosure,

 

22

 

and such transferee’s
successors and assigns, constitute Events of Default by Tenant which must be
cured before the transferee may succeed to the Tenant’s interest in this Lease
or before a new lease may be entered as provided’ in Section 13.06 of this
Lease, but shall be deemed automatically cured upon conveyance of such
leasehold estate to such transferee or upon entering into a new lease as
provided in Section 13.06 of this Lease:

 

(a) The insolvency of
Tenant or the commencement by or against Tenant of any proceedings under any
chapter of the Federal Bankruptcy Code;

 

(b) The attachment,
execution or other judicial or statutory levy or seizure of the Leased Premises
or any portion thereof or any of the Tenant’s rights or interests in this
Lease, including the leasehold estate created hereby, or any improvements now
or hereafter constructed upon, or affixed to, the Leased Premises;

 

(c) The appointment of a
receiver to take possession of all or any portion of the Tenant’s estate; and

 

(d) Any composition of
creditors of Tenant or any assignment by Tenant of all or any portion of Tenant’s
assets for the benefit of creditors.

 

Section 13.06. Mortgagees’ Rights to New Lease. In case of
the termination of this Lease by reason of the happening of any Event of
Default, City shall give written notice thereof to any Qualified Mortgagee of
the Tenant’s leasehold interest who shall have notified City of its name,
address and interest in the Leased Premises prior to City’s issuance of such
notice. If, within thirty (30) days after the mailing of such notice, such
Qualified Mortgagee shall pay, or arrange to the satisfaction of City for the
payment of, a sum of money equal to any and all Rental and other sums due and
payable by Tenant hereunder as of the date of such termination, in addition to
any and all expenses, costs and fees, including reasonable legal fees, incurred
by City in terminating this Lease and in acquiring possession of the Leased
Premises, together with a sum of money equal to the amount which, but for such
termination, would have become due and payable under this Lease from such
termination date up to and including a period of sixty (60) days beyond the
date of the mailing of such notice together with interest on all of the
foregoing at the Default Rate. City shall, upon the written request of such
Qualified Mortgagee, made any time within the first thirty (30) days of such
sixty (60) day period, mutually execute and deliver within the last thirty (30)
days of such sixty (60) day period a new lease of the Leased Premises (the “New
Lease”) to such Qualified Mortgagee, or to the nominee of such Qualified
Mortgagee, for the remainder of the term of this Lease, with any fee mortgage
and any other encumbrance created at any time by City, its successors and
assigns being made subject to the right of the lessee under the New Lease (such
new tenant, however, shall make no objection to City’s title with respect to
judgments and tax liens, if a title company reasonably satisfactory to such new
tenant will furnish leasehold insurance to such new tenant, at such tenant’s
expense, that none of such judgments will be collected out of the Leased
Premises and that the leasehold estate under the New Lease shall not be subject
to foreclosure by the holder of any such prior fee mortgage or other
encumbrances), provided that such Qualified Mortgagee

 

23

 

shall have paid to City a
sum of money equal to any and all Rental and other sums which, but for such
termination, would have become due and payable under this Lease up to and
including the date of the commencement of the term of the New Lease, together
with all expenses, including City’s legal fees, incident to the preparation,
printing, execution, delivery and recording of such New Lease together with
interest thereon at the Default Rate. City shall utilize its best commercially
reasonable efforts to obtain a nondisturbance agreement from any fee mortgagee
with respect to the rights of the tenant under the New Lease so long as there
is no uncured Event of Default under the New Lease. The New Lease shall contain
the same clauses subject to which this demise is made, modified or enlarged to
reflect any changes in any laws of ordinances, or any changes in the physical
or title conditions thereof as the same may exist at the time of delivery of
the New Lease, and shall be at the Rental and other charges and upon the terms
and conditions herein contained, including such additional terms, covenants,
agreements, provisions, conditions and limitations as City shall deem
reasonably necessary to secure the timely discharge of all liabilities and the
timely performance of all obligations of the next preceding tenant, which shall
have accrued or originated prior to the execution and delivery of the New
lease, and shall include the covenants in respect of remaining options to
extend the term of this Lease. Notwithstanding the foregoing, City shall be
obligated to accept such substitute performance by, and enter into a New Lease
with, such leasehold mortgagee or its nominee only if such leasehold mortgagee
or its nominee (a) holds, or within 120 days will hold, title to and lawful
possession of the Riverboat and (b) holds, or within 120 days will hold, an
Owner’s License to conduct gambling operations issued by the Indiana Gaming
Commission.

 

Section 13.07. Qualified Mortgagee — Release. Tenant
hereby waives and releases City from any claim, and shall hold it harmless from
and against any loss, cost or expense (including attorneys’ fees), relating to
acceptance by City of payment or performance of Tenant’s obligations from a
Qualified Mortgagee, or the entering into a new lease between the City and a
Qualified Mortgagee as provided in this Lease.

 

Section 13.08. Possession. Nothing herein contained shall
be deemed to impose any obligation on the part of City to deliver physical
possession of the Leased Premises to any leasehold mortgagee, or to its
nominee.

 

Section 13.09. Insurance Proceeds. If a leasehold
mortgagee, or its nominee, shall acquire a New Lease pursuant to this Article and
if, upon such termination of this Lease, the Insurance Trustee shall be
holding, or shall be entitled to receive, any amount pursuant to the provisions
of this Lease, and Tenant, but for such termination, would have been entitled
to receive all or any part thereof or to have all or any part thereof applied
to any restoration or alteration, then, City agrees that the Insurance Trustee
shall receive and continue to hold such amounts and apply the same or pay out
the same to the new tenant, in the same manner and to the same extent as it
would have been obliged to pay or apply the same to or for the benefit of
Tenant if this Lease had not terminated. Otherwise all such insurance proceeds
shall be deemed to be the property of City on such termination of this Lease
and shall be paid over to City without delay.

 

24

 

Section 13.10. Survival of Provisions. The provisions of
this Article shall survive any termination of this Lease.

 

Section 13.11. Rights on Termination. Upon the termination
of the Demised Term, whether by expiration of time or otherwise, all rights of
any assignees, sublessees, licensees, concessionaires, other occupants of the
Leased Premises, and of any mortgagee of Tenant’s interest in the Leased
Premises, shall thereupon cease and terminate except in the case of the
execution of a New Lease to take effect as of the termination of this Lease
pursuant to the provisions contained in this Article XIII.

 

Section 13.12. Limitation of Mortgagee Liability. Notwithstanding
anything to the contrary provided in this Lease, no Qualified Mortgagee,
whether or not in possession or as successor to Tenant’s leasehold estate, nor
any officer, director, partner, agent, trustee, beneficiary or employee of any
Qualified Mortgagee, shall have any personal liability with respect to any of
the terms, covenants and conditions of this Lease, and City shall look solely
to the assets of Tenant, including the interest and title of Tenant (or such
successor in interest) in and to the leasehold estate of Tenant and the
improvements thereon, for the satisfaction of each and every remedy of City in
the event a Qualified Mortgagee forecloses upon, accepts a conveyance in lieu
of foreclosure upon, or otherwise succeeds to, the interest of Tenant in this
Lease and the Leased Premises.

 

Section 13.13. No Assumption, Surrender or Modification. The
acceptance of execution and delivery of a leasehold mortgage by a Qualified
Mortgagee shall not be deemed to constitute an absolute assignment or transfer
of this Lease, nor shall the holder of any leasehold mortgage, as such, be
deemed (prior to a foreclosure judgment or assignment of this lease in lieu
thereof and the taking of possession) an assignee or transferee of this Lease,
so as to require such holder to assume the performance of any of the terms,
covenants or conditions on the part of Tenant be performed hereunder. So long
as any indebtedness or any other obligations secured by a leasehold mortgage
shall remain unsatisfied, City shall not without prior written consent of the
Qualified Mortgagee accept any surrender of this Lease or the Leased Premises
or consent to any amendment, modification or mutual termination of this Lease.

 

Section 13.14. Further Assurances. The parties acknowledge
that this Lease is intended to be a mortgageable lease and that Tenant intends
to grant a mortgage to a Qualified Mortgagee upon its interest in this Lease,
the Leased Premises and the improvements thereon. City shall give fair and
reasonable consideration to including in this Lease, by suitable amendment from
time-to-time, any provision which any proposed Qualified Mortgagee reasonably
requests for the purpose of implementing the mortgagee-protection provisions
contained in this Article XIII and providing such Qualified Mortgagee
reasonable protection of its mortgage lien in the event of a default by Tenant.

 

Section 13.15. Permitted Subleasing, Licensing and Concessions. Notwithstanding
the provisions of Section 13.01 of this Lease, Tenant may enter into subleases,
licenses and concessions for retail sales, dining or food sales, and other
commercial uses incident to the

 

25

 

primary purpose and use
of the Leased Premises, having terms which do not equal or exceed three years,
not exceeding 20,000 square feet, without the prior consent of City.

 

ARTICLE
XIV.

 

EMINENT
DOMAIN

 

Section 14.01. Total Taking. If during the Demised Term
the whole or materially all of the Leased Premises shall be permanently taken
by exercise by the right to condemnation or eminent domain, this Lease shall
terminate and expire on the date of such taking and the Rental and all
Impositions and other charges as provided herein shall be apportioned and paid
to the date of such taking. For the purposes of this Article XIV, materially
all of the Leased Premises shall have been deemed to have been taken only if
that portion of the Leased Premises not so taken shall be insufficient for any
economically feasible usage thereof by Tenant following restoration and
rebuilding thereof, taking into account the cost of such restoration and
rebuilding, the funds available to Tenant for such purpose, the remaining term
of this Lease and the continuing obligations of Tenant under this Lease. The
City shall not initiate any taking of the Leased Premises under an exercise of
the power of eminent domain without offering to Tenant a qualified replacement
property.

 

Section 14.02. Award for Total Taking. In the event of a
taking in condemnation of title to the whole or materially all of the Leased
Premises, all awards and other payments made as a result of such taking shall
be paid to City, but applied as follows in the order and manner specified to
the extent that monies available from such taking may permit:

 

(a) City shall receive an
amount equal to the value of the land taken and any damages to the residue of the
land considered as vacant and unimproved.

 

(b) The holder of any
Qualified Mortgage upon Tenant’s leasehold interest in the Leased Premises
shall receive the unpaid principal amount of such mortgage and all interest
accrued and unpaid thereon.

 

(c) City shall receive
one twenty-fifth (l/25th) of the balance of such award for each complete year
of the Demised Term that shall have elapsed as of the date of such taking.

 

(d) Any remaining balance
shall be paid to Tenant.

 

Nothing herein contained
shall impair the right of Tenant or any of its sublessees, licensees,
concessionaires or others to the full award, compensation or damages payable by
reason of the taking of their personal property in any such condemnation
proceeding or to any additional award for their moving expenses. The
termination of this Lease by reason of the exercise of the power of eminent
domain shall not prevent Tenant from prosecuting and receiving

 

26

 

compensation for the
interest it had in the Leased Premises immediately prior to the event of such
taking as provided above.

 

Section 14.03. Partial Taking. If at any time during the
Demised Term title to less than the whole or materially all of the Leased
Premises shall be permanently taken in condemnation, this Lease shall continue
in full force and effect and all of the award paid for such taking shall be
paid to City, but said award shall be applied as follows in the order and
manner specified to the extent that the monies available from the taking may
permit:

 

(a) City shall receive
the value of the land taken considered as vacant and unimproved, but such
amount shall be held subject to the rights thereto of Tenant under Section 14.04.

 

(b) There shall be paid
over to Tenant the cost of restoration of the remaining portion of the Leased
Premises not so taken in substantially the same manner as provided in Article XI
hereof dealing with the disbursement of insurance proceeds.

 

(c) Any balance remaining
in said fund after the payment of the amounts due City and the payment of such
costs of restoration shall be paid to Tenant after the restoration has been
completed.

 

Section 14.04. Restoration after Condemnation. In the
event of the permanent taking of less then the whole or materially all of the
Leased Premises, Tenant shall restore the remainder of the Leased Premises so
that the same can reasonably function as an economic and architecturally whole
unit. In the event that the cost of such restoration should exceed the portion
of the total amount paid by the condemning authority for such partial taking
remaining after segregation of the value payable to City under Section 14.03 (a)
above, Tenant shall pay the deficiency.

 

Section 14.05. Extension. In the event the proceeds of the
award of condemnation are insufficient to pay the cost of restoration of the
Leased Premises, and/or Tenant is required to contribute to such cost in an
additional amount of more than Two Hundred Fifty Thousand Dollars ($250,000),
and if this occurs at any time during the second Extended Term or third
Extended Term of this Lease, then Tenant shall be entitled to, at its election,
automatically extend the term of this Lease so that the-term (including all
extension options as if exercised) following the date of substantial completion
of such restoration shall be ten (10) years. The failure of Tenant to give
notice of its election not to so extend the term of this Lease shall cause such
option to be automatically exercised and this Lease shall continue in full
force and effect for such ten (10) years from the date of substantial
completion of the repair and restoration, for the Rentals, and upon all of the
terms and provisions, applicable during the final Extended Term describe in Section
2.03 of this Lease.

 

27

 

Section 14.06. Effect of Partial Taking. If less than the
whole or materially all of the Leased Premises shall be taken under an exercise
of the power of eminent domain, this Lease shall continue in full force and
effect as to the residue of the Leased Premises and all Rental reserved in this
Lease, as well as all other charges payable hereunder, shall be paid by Tenant
in accordance with the terms, covenants and conditions of tins Lease, without
abatement, diminution or reduction.

 

ARTICLE
XV.

 

COMPLIANCE
WITH LAW

 

Section 15.01. Tenant’s Responsibility. During the Demised
Term Tenant shall, at its own cost and expense, promptly observe and comply
with all present and future laws, ordinances, requirements, orders, directions,
rules and regulations of the federal, state and local governments and of all
other authorities having jurisdiction over the Leased Premises and of all their
respective departments, bureaus and officials, and of the Board of Insurance
Underwriters or Insurance Inspection and Rating Bureau having jurisdiction, or
any other body exercising similar function’s, all insurance companies writing
policies of insurance covering the Leased Premises or any part thereof, and all
such laws, requirements, orders, directions, rules and regulations of the
Indiana Gaming Commission and any other governmental agency having any
jurisdiction over riverboat gambling, whether the same are in force at the
commencement date of the Original term or may in the future be passed, required,
ordered, enacted or directed. The obligations hereby imposed upon Tenant for
compliance with all such laws, ordinances, etc., shall extend not only to
Tenant’s use and occupancy of the Leased Premises, but shall also extend to the
condition of the Leased Premises and any and all buildings and improvements
located hereon, he condition and operation of the Ancillary Site and all
buildings and improvements thereon, and the condition and operation of the
Riverboat and all gambling operations conducted thereon. If any such law,
ordinance, requirement, order direction, rule or regulation should require or
make advisable the performance of any act by City, Tenant shall perform each
such act so required for and on behalf of City at the sole cost and expense of
Tenant. If any such law, ordinance, requirement, order, direction, rule or
regulation should require the provision of any type or form of insurance not
otherwise required to be provided by Tenant under the terms of this Lease,
Tenant shall procure and maintain any such insurance as so required or made
advisable in full force and effect at the sole cost and expense of Tenant,
whether such requirements shall be in form a requirement upon Tenant or upon
City.

 

Section 15.02. Hazardous Material. Tenant shall not cause
or permit any Hazardous Material to be brought upon, kept or used in or about
the Leased Premises or the Riverboat by Tenant, it agents, employees,
contractors or invitees, without the prior written consent of City except to
the extent that such Hazardous Material is necessary or useful to Tenant’s
business. Any such necessary or useful Hazardous Material shall be used, kept,
stored and disposed of in a manna that complies in all material respects with
all laws, ordinances and regulations regulating any sueh, Hazardous Material so brought upon or
used or kept in or about the Leased Premises or the Riverboat. If Tenant
breaches the obligations stated in the preceding sentence

 

28

 

or if the presence of
Hazardous Material on the Leased Premises or the Riverboat, or the release or
discharge of Hazardous Material from the Leased Premises or the Riverboat,
results in an Environmental Condition with respect to the Leased Premises or
the River, any air, soil or groundwater near or surrounding the Leased
Premises, then Tenant shall and does hereby indemnify, defend and hold City
harmless from any and all remediation costs, monitoring costs, sampling costs,
evaluation costs, court costs, professional fees, legal fees, experts’ costs,
consultants’ fees, claims, judgments, damages, penalties, fines, costs,
liabilities or losses (including, without limitation, diminution in value of
the Leased Premises, damages for the loss or restriction on use of the Leased
Premises, damages arising from any adverse impact on marketing of other space
in the adjacent and nearby development, and sums paid in settlement of claims)
which arise during or after the Demised Term as a result of such Environmental
Condition (as hereinafter defined) except as to any Environmental Condition
caused by an act or omission of City. This indemnification of City by Tenant
includes, without limitation, costs incurred by City in connection with any
investigation of site conditions or any clean-up, monitoring, remediation,
removal or restoration work performed by any individual or entity, regardless
of whether such investigation or work is required by any federal, state or
local governmental agency or political subdivision because of Hazardous Material
present in the soil or ground water on or under the Leased Premises or
surrounding the Leased Premises or the River, and shall survive the termination
or expiration of the Term of this Lease. Without limiting the foregoing, if the
presence of any Hazardous Material on the Leased Premises or the Riverboat
caused or permitted by Tenant results in any Environmental Condition of the
Leased Premises or in or surrounding the Leased Premises or the River, Tenant
shall promptly take all actions at its sole expense as are necessary to return
the Leased Premises or such other property to the condition existing prior to
the Environmental Condition and prior to the introduction of any such Hazardous
Material; provided that City’s approval of such actions shall first be
obtained, which approval shall not be unreasonably withheld so long as such
actions would not potentially have any material adverse long-term or short-term
effect on the Leased Premises, the surrounding area or the River. As used
herein, the term “Hazardous Material” means any pollutant, contaminant,
hazardous or toxic substance, material or waste which is or becomes regulated
by any local governmental authority, the State of Indiana or the United Stales
Government. The term “Hazardous Material” includes, without limitation, any
material or substance which is (a) petroleum, (b) asbestos, (c) radioactive
material or waste, (d) designated as a “hazardous substance” pursuant to Section
311 of the Federal Water Pollution Control Act (33 U.S.C. § 1317), (e) defined
as a “hazardous waste” pursuant to Section 1004 of the Federal Resource
Conservation and Recovery Act, 42 U.S.C. § 6901 et seq. (42 U.S.C. § 6903), or
pursuant to IC 13-7-1-12, or determined to be a “hazardous waste” under IC
13-7-8.5-3(b), (f) defined as a “hazardous substance” pursuant to Section 101
of the Comprehensive Environmental Response, Compensation and Liability Act, 42
U.S.C. § 9601 et seq. (42 U.S.C. § 9601), or pursuant to IC 13-7-8.7-1, (g) regulated
under the Toxic Substances Control Act (15 U.S.C. § 2601 et  seq.)
or defined as a “PCB” pursuant to IC 13-7-16.5-1, (h) defined as a “contaminant”
pursuant to IC 13-7-1-7, or (i) any other substance or material similarly
classified by any other federal, state or local statute or ordinance or by any rule
or regulation promulgated or adopted pursuant thereto, whether now existing or
hereinafter enacted. The term “Environmental Condition” shall mean the
existence or presence of Hazardous Material at or passage through

 

29

 

the Leased Premises and
any contemporaneous or subsequent spilling, leaking, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping,
disposing or releasing of such Hazardous Material at or from the Leased
Premises into the soil, ground, water, groundwater or air in a form or quantity
that would require monitoring or remediation by any applicable Federal, State
or local law, ordinance or regulation, by any party holding any interest in the
Leased Premises. Tenant shall dispose of all sanitary and solid waste in a
manner that complies with all such statutes, ordinances, rules and regulations.

 

Section 15.03. Contests. Tenant, after notice to City, by
appropriate proceedings conducted promptly at Tenant’s own expense and in
Tenant’s name, may contest in good faith the validity or enforcement of any
such law, ordinance, requirement, order, direction, rule or regulation and may
defer compliance therewith during the pendency of such contest so long as (a) such
deferment shall not constitute an offense on the part of City; (b) Tenant shall
prosecute such contest to a final determination by a court, department or
governmental body having jurisdiction; and (c) Tenant shall furnish City with
such security by bond or otherwise as City may approve in connection such
contest.

 

ARTICLE
XVI.

 

DEFAULTS
AND REMEDIES

 

Section 16.01. Events of Default. Subject to the
provisions of Section 21.04, if any one or more of the following events, herein
sometimes called “Events of Default”, shall happen:

 

(a) If default shall be
made in the due and punctual payment of any Rental, Imposition, utility
charges, insurance premiums, additional rent or other items payable by Tenant
under this Lease, or in the payment of any part thereof, when and as the same
shall become due and payable, and such default shall continue for a period of
thirty (30) days after notice from City to Tenant specifying the item or items
in default; or

 

(b) If Tenant should
default in the performance of any obligation or undertaking as contained in the
Project Agreement for more than any notice and cure period provided in the
Project Agreement, and in any event for at least ten (10) days after notice; or

 

(c) If Tenant’s Owner’s
License issued by the Indiana Gaming Commission should be revoked or be
suspended for more than sixty (60) days because of some act or failure to act
by Tenant; or

 

(d) If Tenant should
cease, for any reason other than a temporary suspension of its Owner’s License,
to conduct riverboat gaming operations from the Riverboat to be docked at the
Leased Premises for ten (10) consecutive days or longer; or

 

30

 

(e) If default shall be
made by Tenant in the performance or compliance with any of the agreements,
terms, covenants or conditions in this Lease provided, other than those
referred to in subparagraphs (a), (b), (c) or (d) of this Section, for a period
sixty 60 days after notice from City to Tenant specifying the item or items in
default, or in the case of a curable default which cannot be cured with due
diligence within such sixty (60) day period, Tenant fails to commence promptly
to cure the same and thereafter to prosecute to satisfactory completion the
curing of such default with due diligence (it being intended in connection with
a default that can be cured but is not susceptible of being cured with due
diligence within said sixty [60] day period, the time within which Tenant must
cure the same shall be extended for such period as may be necessary to complete
the same with all due diligence); then and in any such event, City, at any time
thereafter, may give written notice to Tenant specifying such Event of Default
or Events of Default and stating that this Lease and the Demised Term shall expire
and terminate on the date specified in such notice, which date shall be at
least fifteen (15) days after the giving of such notice, and, subject to the
provisions of Sections 13.03 through 13.09 and Section 16.02 of this Lease,
upon the date specified in such notice, this Lease and the Demised Term and all
rights of Tenant under this Lease, including any extension options whether or
not exercised, and all rights of all persons claiming by, through or under
Tenant, shall expire and terminate (except as otherwise provided in this Lease
with respect to a Qualified Mortgagee or the Guarantor) unless such Event of
Default shall have been cured and be no longer in default as of the date
specified in such notice.

 

Section 16.02. Cessation of Operation. If Tenant should
not continuously conduct its riverboat gambling operations on the Riverboat at
any time during the Demised Term, whether such cessation is temporary or
permanent, voluntary or involuntary, it is agreed that it would be difficult to
project the precise loss to be suffered by City because of such cessation of
operations. Therefore, City and Tenant have agreed that a fair and equitable
advance estimate of the damages City would experience and suffer because of
such Event of Default by Tenant would be in the amount of Twenty-five Thousand
Dollars ($25,000) per day during any such period of non-operation until the
natural expiration date of the Demised Term or until City obtains a replacement
tenant that conducts gaming operations from the Leased Premises upon terms and
conditions no less favorable to City than those set forth in this Lease. City
shall exert commercially reasonable efforts to procure such a replacement
tenant. In the event of the cessation of the riverboat gambling operations,
City shall be entitled to collect such amounts from Tenant as liquidated
damages notwithstanding the fact that the cessation of such operations may
result from termination of this Lease by City because of an Event of Default by
Tenant. If the cessation of operations is a result of an occurrence
constituting a Force Majeure event as defined in Section 21.04, Tenant shall
not be required to pay the foregoing daily liquidated damages, but Tenant shall
continue to pay the Guaranteed Minimum Rental until the expiration of the
Demised Term or until a replacement tenant commences the payment of rent.

 

Section 16.03. Rights on Termination. Upon any such
expiration or termination of this Lease, Tenant shall quit and peacefully
surrender the Leased Premises to City, and City, upon

 

31

 

or at any such expiration
or termination, may, without further notice, enter upon and re-enter the Leased
Premises and possess and repossess itself thereof, by force, summary
proceedings, ejectment or otherwise, and may dispossess Tenant and remove
Tenant and all other persons and property from the Leased Premises and may
have, hold and enjoy the Leased Premises and the right to receive all rental
income of and from the same free of any claims thereto by any person, firm or
corporation claiming by, through and under Tenant except as an offset to the
liquidated damages pursuant to Section 16.02 hereof. The rights of City to the
liquidated damages agreed upon in Section 16.02 shall survive a termination of
this Lease resulting from an Event of Default.

 

Section 16.04. Waiver of Notice. Tenant hereby expressly
waives, so far as permitted by law, the service of any notice of intention to
re-enter provided for in any statute and, except as is herein otherwise
provided, Tenant, for and on behalf of itself and all persons claiming through
or under Tenant (including any leasehold mortgagee or other creditor), also
waives any and all right of redemption or re-entry or repossession in case
Tenant shall be dispossessed by a judgment or warrant of any court or judge or
in case of re-entry or repossession by City or in case of any expiration or
termination of this Lease. The terms “enter,” “re-enter,” “entry” or “re-entry”
as used in this Lease are not restricted to their technical legal meanings.

 

Section 16.05. Right to Enjoin. In the event of any breach
or threatened breach by Tenant of any of the agreements, terms, covenants or
conditions contained in this Lease, City shall be entitled to enjoin such
breach or threatened breach and shall have the right to invoke any right and
remedy allowed at law, in equity, or by statute or otherwise as though no
specific remedies were provided for in this Lease.

 

Section 16.06. Non-Waiver. No failure of City to insist
upon the strict performance of any agreement, term, covenant or condition
hereof or to exercise any right or remedy consequent upon a breach thereof, and
no acceptance of full or partial Rental or partial performance of any other
obligation of Tenant during the continuance of any such breach, shall
constitute a waiver of any such breach or of such agreement, term, covenant or
condition. No agreement, term, covenant or condition hereof to be performed or
complied with by Tenant, and no breach thereof, shall be waived, altered or
modified except by a written instrument executed by City. No waiver of any
breach shall affect or alter this Lease, but each and every agreement, term,
covenant and condition hereof shall continue in full force and effect with
respect to any other then existing or subsequent breach thereof.

 

ARTICLE
XVII.

 

CHARACTER
OF LEASE

 

Section 17.01. Net Lease. This Lease shall be deemed and
construed to be a “Net Lease” and Tenant shall pay to City, absolutely net
throughout the term of this Lease, the Rental, free of any charges,
assessments, Impositions, expenses or deductions of any kind and without
abatement, deduction or setoff, and under no circumstances or conditions,
whether now

 

32

 

existing or hereafter
arising, or whether within or beyond the present contemplation of the parties,
shall City be expected or required to make any payment of any kind whatsoever
or be under any other obligation or liability hereunder, except as herein
otherwise expressly set forth; and Tenant agrees that, except as herein
otherwise expressly provided, Tenant shall pay all costs, charges and expenses
of every king and nature whatsoever against or in connection with the Leased
Premises and Improvements thereon which may arise or become due during the term
of this Lease, and which, except for the execution and delivery hereof, would
or could have been payable by City. All indemnities of Tenant under any portion
of this Lease, and any undertaking of Tenant under this Lease that is to be
performed after expiration or termination of the Demised Premises, shall
survive expiration or termination of the Demised Term and shall continue in
full force and effect until fully performed and satisfied.

 

ARTICLE
XVII.

 

NOTICES

 

Section 18.01. Manner of Giving. Whenever under this
Lease a provision is made for notice of any kind, such notice shall be in
writing, and it shall be deemed sufficient service thereof if such notice is
given to City and sent by Registered or Certified Mail, postage prepaid, or by
a recognized, receipted courier delivery service to:

 

	
   

  	
   

  	
  Office of the City
  Controller of the

  
	
   

  	
   

  	
  City
  of Evansville, Indiana

  
	
   

  	
   

  	
  300 Civic Center
  Complex

  
	
   

  	
   

  	
  One N.W. Martin Luther
  King, Jr. Boulevard

  
	
   

  	
   

  	
  Evansville, IN 47708

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Corporation Counsel of
  the

  
	
   

  	
   

  	
  City
  of Evansville, Indiana

  
	
   

  	
   

  	
  300 Civic Center
  Complex

  
	
   

  	
   

  	
  One N.W. Martin Luther
  King, Jr. Boulevard

  
	
   

  	
   

  	
  Evansville, IN 47708

  
	
   

  	
   

  	
   

  
	
  ; and if to
  Tenant:

  	
   

  	
  Aztar Indiana Gaming
  Corporation

  
	
   

  	
   

  	
  Vice President
  Administration

  
	
   

  	
   

  	
  2390 E. Camelback Road

  
	
   

  	
   

  	
  Phoenix, AZ 85016

  
	
   

  	
   

  	
   

  
	
  With a copy to:

  	
   

  	
  Stephan E. Weitzel, Esq.

  
	
   

  	
   

  	
  Ziemer, Stayman,
  Weitzel & Shoulders

  
	
   

  	
   

  	
  1507 Old National Bank
  Building

  
	
   

  	
   

  	
  Evansville, IN 47706

  

 

33

 

Either party may change
such address for notice by notice given to the other party in the aforesaid
manner.

 

Section. 18.02. Time of Giving. Each notice given in the
manner prescribed in Section 17.01 shall be deemed given on the date of its
receipt by the party being notified. If any party should refuse to accept
delivery of any such notice, such notice shall be deemed to have been given on
the date delivery thereof was tendered to addressee.

 

ARTICLE
XIX.

 

SURRENDER
OF POSSESSION

 

Section 19.01. Surrender in Good Condition. At the
expiration of the tenancy created hereunder, whether by lapse of time or
otherwise, except as otherwise herein expressly provided, Tenant shall
surrender the Leased Premises to City in good condition and repair, reasonable
wear and tear only being excepted. Tenant agrees to pay all costs incurred by
the City for infrastructure changes to the Leased Premises needed upon the
surrender of possession to the City to make the Leased Premises suitable for
normal and customary commercial riverfront development. If so directed by City,
Tenant shall cause the buildings and other improvements placed on the Leased
Premises (or such part thereof as City may direct) to be removed from the
Leased Premises and the foundations and other evidence thereof removed.

 

Section 19.02. Holding Over. In the event Tenant remains
in possession of the Leased Premises with the consent of City after the
expiration of the tenancy created hereunder, and without the execution of a new
lease or an extension of this Lease, it shall be deemed to be occupying the
Leased Premises as a tenant from month to month at the same Rental as scheduled
to be paid during the next Extended Term had the option therefor been
exercised, or as was being paid immediately prior thereto if the holding over
occurs after completion of the final Extended Term, and subject to all of the
other conditions, provisions and obligations of this Lease insofar as the same
are applicable to a month to month tenancy. Such month to month tenancy may be
terminated by either party as of the end of any month by the giving of notice
of such termination to the other party prior to the beginning of such month at
the end of which the tenancy is to terminate. No notice need be given by City
to Tenant for termination of the tenancy as of the end of the Demised Term, but
such notice to terminate need be given only in the event of the continuation of
the possession of Tenant after the end of the Demised Term with express consent
of City.

 

ARTICLE
XX.

 

CERTIFICATES
BY CITY AND TENANT

 

Section 20.01. Tenant’s Certificates. Tenant agrees at any
time and from time to time upon not less than ten (10) days’ prior written
notice by City to execute, acknowledge and deliver to City a statement in
writing setting forth the Rental payable during the balance of the

 

34

 

Original Term of the
Lease and during each Extended Term and certifying that this Lease is
unmodified and in full force and effect (or if there have been modifications,
that the Lease is in full force and effect as modified and stating the
modifications), and the dates to which the Rental has been paid, and stating
(to the best knowledge of Tenant) whether or not as to both City and Tenant,
either is in default in keeping, observing or performing any of the terms
contained in this Lease and, if in default, specifying each such default, and
also a statement specifying which options for Extended Terms have been
exercised, if any. It is intended that any such statement delivered pursuant to
this Section 20.01 may be relied upon by City or any prospective purchaser of
the fee or any fee mortgagee or any assignee of any fee mortgagee, but reliance
on such certificate may not extend to any default of City as to which Tenant
shall have no actual knowledge.

 

Section 20.02. City Certificates. City agrees at any time and
from time to time upon not less than twenty (20) days’ prior written notice by
Tenant or by any Qualified Mortgagee to execute, acknowledge and deliver to
Tenant or to any Qualified Mortgagee a statement in writing setting forth the
Rental payable during the balance of the Original Term and during each Extended
Term and certifying that this Lease is unmodified and in full force and effect
(or if there shall have been modifications that the Lease is in full force and
effect as modified and stating the modifications) and the dates to which the
Rental has been paid, and stating whether or not to the best knowledge of City,
Tenant is in default in keeping, observing or performing any of the terms
contained in this Lease and, if Tenant shall be in default, specifying each
such default of which City may have knowledge, and also a statement specifying
which options for Extended Terms have been exercised, if any. It is intended
that any such statement delivered pursuant to this Section 20.02 may be relied
upon by any prospective Qualified Mortgagee or any assignee of any such
mortgagee, but reliance on such certificate may not extend to any default of
Tenant as to which City shall have had no actual knowledge.

 

ARTICLE
XXI.

 

MISCELLANEOUS
PROVISIONS

 

Section 21.01. Remedies Cumulative — Non-Waiver. The
various rights and remedies herein contained and reserved to each of the
parties shall not be considered exclusive of any other right or remedy of such
party but shall be construed as cumulative and shall be in addition to every
other remedy now or hereafter existing at law, in equity, by statute, or by any
other portion of this Lease, and said rights and remedies may be exercised and
enforced concurrently and whenever and as often as occasion therefor arises. No
delay or omission to exercise any right or power by either party shall impair
any such right or power, or be construed as a waiver of any default or as
acquiescence therein. One or more waivers of any covenant, term or condition of
this Lease by either party shall not be construed by the other party as a
waiver of a subsequent or continuing breach of the same covenant, term or
condition. The acceptance by City of partial performance of the obligations of
Tenant, even after the commencement of any action based upon the nonperformance
of the obligations so partially performed, shall serve to waive such
performance or extend the time therefor; and the acceptance of such partial

 

35

 

performance shall in no
way bar, abate or affect any action at law or in equity theretofore or
thereafter commenced by City as a result of such non-performance. All
liabilities and obligations of Tenant hereunder shall be performed or paid
without relief from valuation or appraisement laws.

 

Section 21.02. Governing Law. The laws of the State of
Indiana shall govern the validity, performance and enforcement of this Lease.

 

Section 21.03. Time of the Essence. Wherever in this Lease
an act is to be performed within a specified amount of time, time shall be
deemed to be of the essence, subject, however, to the provisions of Section 21.04
hereof.

 

Section 21.04. Force Majeure. The term “Force Majeure” as
used herein shall mean any and all causes beyond the control and without the
fault or negligence of the party failing to perform which could not reasonably
have been avoided or prevented, including but not limited to, acts of God,
adverse weather, casualties, the presence of material environmental
contamination requiring approval of governmental authorities of a remediation
plan, acts of the public enemy, insurrections, riots, labor disputes, boycotts,
labor and material shortages, fires, explosions, floods, breakdowns of or
damage to equipment or facilities, interruptions to transportation, embargoes,
acts of military authorities, acts of government, and acts of civil authorities
(including courts and administrative agencies having competent jurisdiction)
concerning the Project, the illegality of the Gambling Law coupled with a stay
of action, or the illegality of riverboat gaming operations coupled with a stay
of action, or other causes of a similar nature, to the extent such cause
prevents the development, construction or operation of the Project, the
Riverboat or a riverboat gaming operation. However, the failure to obtain debt
financing or equity investment by Tenant shall in no case or for any reason
constitute Force Majeure. If, because of a verifiable condition of Force
Majeure, either party hereto is unable to carry out any of its obligations
under this Agreement (other than the obligation of a party to pay money due and
owing at the time of the Force Majeure event) and if such party shall promptly
give to the other party written notice of such Force Majeure, then the
obligation of the party giving such notice shall be suspended to the extent
necessary by such Force Majeure and during its continuance; provided, however,
that the party giving such notice shall use its best commercially reasonable
efforts to eliminate such Force Majeure event insofar as possible with a
minimum of delay. During a period in which a condition of Force Majeure is
invoked by Tenant, the period for the Tenant’s performance of any obligation
hereunder (other than the obligation to pay money due and owing at the time of
the Force Majeure event) shall be extended to the extent of the duration of the
continuance of the Force Majeure event. If the condition of Force Majeure shall
continue unabated for a period of more than six (6) months, either party may
terminate this Lease upon thirty (30) days’ notice to the other. In the event
City exercises such right of termination, this Lease shall end, and Tenant’s
obligation to pay Rental shall cease. In the event Tenant exercises such right
of termination, Tenant shall continue to be liable for the payment of the
Guaranteed Minimum Rental until the original expiration date of its gaming
license in effect at the commencement of the Force Majeure period or until a
replacement tenant as described in Section 16.02 commences the payment of rent.

 

36

 

Section 21.05. Severability. If any term or provision of
this Lease or its application thereof to any person or circumstance shall, to
any extent, be invalid or unenforceable, the remainder of this Lease, or the
application of such term or provision to the persons or circumstances other
than those as to which it is held invalid or unenforceable, shall not be
affected thereby, and each term and provision of this Lease shall be valid and
be enforced to the fullest extent permitted by law.

 

Section 21.06. Comments and Approvals. Whenever in this
Lease City’s approval or consent is required, such approval or consent shall be
required to be in writing. It is distinctly understood and agreed that the
granting of any approval or consent by City to Tenant to perform any act of
Tenant requiring City’s approval or consent under the terms of this Lease, or
the failure on the part of City to object to any such action taken by Tenant
without City’s approval or consent, shall not be deemed a waiver by City of its
rights to require such approval or consent for any further similar act by
Tenant, and Tenant hereby expressly covenants and warrants that as to all
matters requiring City’s approval or consent under the terms of this Lease,
Tenant shall secure such approval or consent for each and every happening of
the event requiring such approval or consent, and shall not claim any waiver on
the part of City of the requirement to secure such approval or consent. Notwithstanding
anything to the contrary contained in this Lease, if any provision of this
Lease expressly or impliedly obligates City not to unreasonably withhold its
consent or approval, an action for declaratory judgment or specific performance
will be Tenant’s sole right and remedy in any dispute as to whether City has
breached such obligation.

 

Section 21.07. Captions. The parties mutually agree that
the headings and captions of the various Articles and Sections contained in
this Lease are inserted for convenience of reference only, and are not intended
to define, limit or construe the contents of the Articles or Sections to which
they refer.

 

Section 21.08. Interpretation. As used herein the word “including”
shall mean “including but not limited to”, and the phrase “shall include” or
any other phrase of the same or similar import shall mean “shall include, but
not be limited to”. All schedules or exhibits to this Lease are hereby
incorporated herein and form a part hereof. Whenever Tenant is obligated to pay
or reimburse City for any attorneys’ fees, those fees shall include the
reasonable allocated cost for services of attorneys on the staff and payroll of
the City.

 

Section 21.09. Guaranty. This Lease shall not be binding
upon City or grant any rights to Tenant until the Guaranty attached hereto and
forming a part hereof has been executed by Guarantor.

 

Section 21.10. Written Integration. All negotiations,
considerations, representations and understanding between the parties hereto
are incorporated herein, and this Lease may be modified or altered only by
agreement in writing signed by the party to be bound. In the event of any
inconsistencies between this Lease and the Project Agreement, this Lease shall
be the controlling document.

 

37

 

Section 21.11 Agreement Binding on Successors. The
covenants, agreements and obligations herein contained shall extend to, bind
and inure to the benefit not only of the parties hereto, but their respective
successors and assigns, except to the extent specifically herein provided
otherwise. No consent to any assignment or sublease by Tenant is to be implied
as a result of Section 21.11. This Lease, or a mutually acceptable memorandum
hereof, shall be recorded in the Vanderburgh County Recorder’s Office.

 

IN WITNESS WHEREOF, the
parties hereto have caused this Lease to be executed in their respective names
in several counterparts, each of which shall be deemed an original instrument,
as of the day and year hereinabove first written.

 

	
   

  	
  AZTAR INDIANA GAMING
  CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [ILLEGIBLE]

  
	
   

  	
  Its

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  REDEVELOPMENT
  COMMISSION

  
	
   

  	
  of the City of
  Evansville, Indiana

  
	
   

  	
   

  	
   

  
	
   

  	
  By

  	
  /s/ [ILLEGIBLE]  

  
	
   

  	
   

  	
  Vice-President

  
	
   

  	
   

  	
   

  
	
   

  	
  ATTEST:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ [ILLEGIBLE]  

  
	
   

  	
   

  	
  Secretary

  

 

This instrument was
prepared by John A. Grayson, Ice Miller Donadio & Ryan, One American
Square, Box 82001, Indianapolis, Indiana 46282-0002; telephone (317) 236-2100.

 

38A

 

	
  State of Indiana

  	
  }

  
	
   

  	
  }  SS:

  
	
  County of Vanderburgh

  	
  }

  

 

BEFORE ME, a Notary
Public, personally appeared the within named Alphonza “Pete” Watkins and Remig
Fehn, as Vice-President and Secretary, respectively, of the Redevelopment
Commission of the City of Evansville, and acknowledged the execution of the
above and foregoing Lease as a voluntary act and deed.

 

WITNESS my hand and
Notary Seal this 4th day of April, 1995.

 

	
   

  	
  /s/ Mary C. Arnold  

  
	
   

  	
  Mary C. Arnold, Notary
  Public

  
	
   

  	
   

  
	
  My Commission Expires:
  February 19, 1999

  	
  A resident of
  Vanderburgh County, Indiana

  
	
   

  
	
  State of Arizona

  	
  }

  
	
   

  	
  }  SS:

  
	
  County of Maricopa

  	
  }

  
			

 

BEFORE ME, a Notary
Public, personally appeared the within named Robert M. Haddock, acting in his
capacity as Vice President of Aztar Indiana Gaming Corporation, and
acknowledged the execution of the above and foregoing Lease as a voluntary act
and deed.

 

WITNESS my hand and
Notary Seal this 2nd day of May, 1995.

 

	
   

  	
  /s/ Monika S. Hald  

  
	
   

  	
  Notary Signature

  
	
   

  	
   

  
	
   

  	
  Monika S. Hald  

  
	
   

  	
  Printed Name of Notary

  
	
   

  	
   

  
	
  My Commission Expires:
  8/30/1998

  	
  A resident of Maricopa
  County,

  
	
   

  	
   

  
	
   

  	
  State of Arizona

  

 

38B

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