Document:

Sixth Amendment to Lease and Development Agreement, dated November 26, 2007

 EXHIBIT 10.1 
 SIXTH AMENDMENT TO LEASE AND DEVELOPMENT AGREEMENT 
 This SIXTH AMENDMENT TO LEASE AND DEVELOPMENT AGREEMENT
(the “Amendment”) is made and entered into this 26 day of November, 2007 by and between the ST. LOUIS COUNTY PORT AUTHORITY, a public body corporate and politic of the State of Missouri (the “Landlord”) and PINNACLE
ENTERTAINMENT, INC., a Delaware corporation (the “Tenant”). 
 RECITALS 
 A. Landlord and Tenant entered into a Lease and Development Agreement dated as of August 12, 2004, as amended by letter agreement of even date,
letter agreement dated October 4, 2005, Second Amendment to Lease and Development Agreement dated October 28, 2005, Third Amendment to Lease and Development Agreement dated August 11, 2006, Fourth Amendment to Lease and Development
Agreement dated January 18, 2007, and as further amended by Fifth Amendment to Lease and Development Agreement dated March 30, 2007 (collectively, the “Lease and Development Agreement”) which governs among other things the
development of the property described in the Lease and Development Agreement. 
 B. The Landlord and Tenant desire to amend the Lease and
Development Agreement to among other things increase the Tenant’s investment, provide for the construction of the “Weber Bridge” by Tenant and otherwise modify certain elements of the Project. 
 C. Capitalized terms used herein and not otherwise defined shall have the meanings ascribed to them in the Lease and Development Agreement. 

NOW, THEREFORE, in consideration of the mutual covenants and agreements of the parties contained herein, Landlord and Tenant agree to amend the Lease
and Development Agreement as follows: 
 1. All references in the Lease and Development Agreement to “Commercial Facilities” shall
now be referenced as “Phase II of the Project,” as such term is further defined herein. 
 2. Recital E. is amended and restated as
follows: 
 Upon satisfaction of certain conditions described herein and receipt of the required approvals from the Commission set forth in
this Lease, Tenant has agreed, at Tenant’s sole cost and expense, to construct, develop and operate the Gaming Facilities, parking required in Phase I of the Project (hereinafter defined) and the Project Roadway, to make a contribution to
Landlord for the community/aquatic center and the baseball and soccer fields and to construct and develop the elements of Phase II of the Project (hereinafter defined)(collectively, the “On-Site Project”), all in accordance with the terms
and conditions of the Lease. 
 3. Section 4 is amended as follows: 

 a. The following shall be added after the caption “Project Construction and
Development”: 
 The Tenant shall at its sole cost and expense, undertake a two phase project for an aggregate investment of
$450,000,000. “Phase I of the Project” shall mean the (i) development, construction and operation of the Gaming Facilities on the Property which shall mean a minimum 90,000 square foot casino containing not less than 2,300 slots and
50 table games, three restaurants, a gift shop and parking sufficient to service the aforesaid facilities (the “Gaming Facilities”), (ii) the Environmental Remediation of the Landlord’s Property and the Known Conditions of the
Access Road Property, (iii) a contribution by Tenant in the amount of $5,100,000 to the Landlord, or such other party as is designated by Landlord, for the construction of the community/aquatic center and the baseball and soccer fields;
(iv) development and construction of a hatch shell to be located on the Park Property, and (v) the development and construction of the Project Roadway, including a replacement of the Weber Road Bridge (hereinafter defined). The Tenant
shall make an investment of not less than $375,000,000 on Phase I of the Project. “Phase II of the Project” shall mean (i) the development and construction of a hotel with a minimum of 100 rooms and (ii) some combination of
additional hotel rooms, an entertainment/meeting space, additional casino space, additional restaurants, retail space, movie theatres, bowling lanes, or other amenities and additional parking spaces sufficient to serve the aforesaid facilities, as
mutually agreed to by Tenant and Landlord, which are intended to increase revenues to the Property. The Tenant shall make an investment of not less than $75,000,000 on Phase II of the Project. The Landlord and the Tenant anticipate that Phase II of
the Project may comprise approximately 280,000 square feet but the aggregate square footage will depend on the components selected. Phase I of the Project and Phase II of the Project are collectively referred to as the “Project.”

 A new Exhibit C to the Agreement is substituted entitled “Essential Elements”, which is attached hereto as Exhibit 1.

 b. Section 4(a) is amended and restated as follows: 
 “Phase I of the Project. The Tenant shall contribute $5,100,000 to the Landlord, or such other party as is designated by Landlord, on the date of execution by the Landlord and Tenant of this Amendment for
the community/aquatic center and the baseball and soccer fields which shall be in full satisfaction of Tenant’s obligations with respect to the community/aquatic center and the baseball and soccer fields. The Tenant has substantially completed
the Environmental Remediation, subject to receipt of a “no further action” letter from the Missouri Department of Natural Resources. Not later than December 31, 2007, Tenant shall start to construct the Gaming Facilities and the
Project Roadway in a first class manner in accordance with all laws, regulations, ordinances and permit requirements (collectively, “Government Requirements”) and otherwise in accordance with the terms of the Lease (the “Work”).
Title to Tenant’s personalty and fixtures and Tenant’s Gaming Facilities and those items that are part of Phase II of the Project shall at all times 

  

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during the term of this Lease remain with Tenant, subject to the provisions of Section 5(e). 
 c. The first sentence of Section 4(g) is amended and restated as follows: 
 Tenant shall proceed in accordance with the applicable Work Schedule with reasonable diligence to obtain all construction permits and to commence and
complete the Applicable Work in accordance with the applicable Plans, and subject only to Unavoidable Delays and delays caused by Landlord or the County, the Work Schedule and to obtain all Occupancy Permits and to complete and open the Gaming
Facilities to the public (“Project Opening”) by May 1, 2009. 
 d. Section 4(h) is amended and restated as follows:

 “Community Facilities. The Tenant shall construct the hatch shell on the Park Property and complete the same within eighteen
(18) months following the Commencement Date, subject to Unavoidable Delays and other applicable provisions of this Lease. If Tenant fails to complete the hatch shell within the time frame referenced above, the Landlord may, in its discretion,
require that the Tenant pay to Landlord $250,000 as liquidated damages for the delay in completion and not as a penalty. The Tenant will have a license throughout the Term to hold concerts at the hatch shell from time to time. The license shall
provide that the Tenant may use the shell for up to four (4) nights a month at no charge to Tenant, provided that the Tenant shall be responsible for providing its own security and cleanup for any events for which the Tenant uses the hatch
shell. Tenant established a budget of $20 million to construct the Project Roadway, the other off-site improvements and the Community Facilities and for the contribution to Landlord for the community/aquatic center. Tenant has exceeded the $20
million budget on the roadway alone. Upon making the $5.1 million guaranteed contribution for the community/aquatic center and the baseball and soccer fields as provided in Section 4(a), Tenant shall have satisfied all of its obligations with
respect to the community/aquatic center and the baseball and soccer fields. Upon the completion of the construction of the hatch shell on the Park Property, the Landlord or the County shall take all necessary actions to dedicate the Park Property to
the County or the Park District as a park.” 
 e. Section 4(i) is amended and restated as follows: 
 “Phase II of the Project. Not later than three (3) years following the Commencement Date, Tenant at Tenant’s sole cost and expense,
shall complete Phase II of the Project. Tenant shall have the right in Tenant’s discretion to engage any one or more third party developers, retail tenants, contractors, retail consultants, a master retail developer or tenant or other qualified
person or corporation to develop, construct and operate all or any portion of Phase II of the Project. In the event Tenant fails to timely perform its obligations with respect to Phase II of the Project, Tenant shall pay to Landlord additional
payment or payments in the amounts set forth below on January 2 of each year (or prorated if less than a year), commencing on the January 2 immediately following the expiration of 3 years until such time as Tenant has met its 

  

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obligations with respect to Phase II or paid a total of $20,000,000 to the Landlord to be used for the benefit of the Lemay area, which sums will be
collected by Landlord as liquidated damages and not as a penalty and in such event, the Landlord shall not have any other rights or remedies against Tenant with respect to Tenant’s failure to open and operate the Phase II of the Project;
provided, however, that if this Lease shall be terminated by Tenant pursuant to the provisions of Section 24 after any such annual payments have been paid or have become due and payable, then Landlord’s recovery of amounts due for failure
to open and operate Phase II of the Project, in addition to any payments due under Section 24, shall be limited, effective as of the date this Lease is terminated, to the greater of $12,000,000 or the total amount theretofore paid or due
Landlord pursuant to this subsection (i). 
  

									
		 	year one	  	$	2,000,000	 	 	
	 	 year two
	  	$	3,000,000	 	 
	 	 year three
	  	$	4,000,000	 	 
	 	 year four
	  	$	5,000,000	 	 
	 	 year five
	  	$	 6,000,000	”	 

 f. Section 4(p) is amended by adding the following subsection (vi) thereto: 

“As part of Phase I of the Project, Tenant shall construct the replacement bridge for the existing Weber Road Bridge as provided in Amendment to
Road Development Agreement in the form of Exhibit 2 attached hereto. The cost of the bridge replacement incurred by the Tenant shall be applied to the minimum investment for Phase I of the Project.” 
 g. Section 4(v) is amended to delete the last line beginning “the $300,000,000” and inserting “the minimum investment for Phase I of
the Project” in lieu thereof.” 
 h. A new Section 4(w) is added to provide as follows: 
 “4(w) The Parties agree to cooperate regarding the placement of advertising signs along thoroughfares in proximity to the Property which cooperation
may include Tenant entering into an agreement to make lease payments for the advertising signs with said lease payments to be used for the benefit of the Lemay Housing Corporation, the Lemay Development Corporation and the Community/Aquatic
Center.” 
 4. Section 5 is amended as follows: 
 a. Section 5(d) is amended to amend and restate the first two sentences as follows: 
 “5(d) Payment of Annual Rent. In consideration of Tenant’s agreement to release the Prepaid Rent, the First Deposit and the Second Deposit to the Landlord to reimburse Landlord for planning and development of the NIMA Site,

  

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Tenant shall be given full credit in the amount of $2,500,000 against Minimum Rent due under the Lease. Beginning on the tenth day of the month after the
third full month of operation and on or before the tenth day of each month thereafter until the full amount of the credit has been applied, the Tenant shall pay to Landlord the amount of One Hundred Sixty-Six Thousand Six Hundred Sixty-Six and
66/100 Dollars ($166,666.66) and thereafter Three Hundred Thirty-Three Thousand Three Hundred Thirty-Three and 33/100 Dollars ($333,333.33) per month until the end of the Term as Minimum Rent.” 
 b. That portion of the second sentence of Section 5(e) immediately preceding subsections (i) and (ii) is amended to read as
follows: 
 “Under the PILOTS Agreement, from and after
December 31st (the “Annual Payment Date”) following the Project Opening, Tenant shall make, subject to all terms and conditions of the
PILOTS Agreement, annual payments in lieu of taxes, including any prorated payment attributable to the time between Project Opening and the Annual Payment Date of that same year, as follows:” 
 5. Section 9 (a) is amended and restated as follows: 
 “Designated Use. Tenant shall use the Property for the operation of the Gaming Facility (a Casino containing a minimum of 90,000 square feet of Las Vegas style gaming area) and, and the elements of Phase
II of the Project, and for such additional installations as are selected by Tenant in connection with the Project.” 
 6. Except as
modified and amended by this Amendment, the Lease and Development Agreement shall remain in full force and effect in accordance with its terms. Unless the context otherwise indicates, all other terms and conditions of the Lease and Development
Agreement which are the same as or directly related to the revised terms and conditions set out in this Amendment are similarly modified to be consistent with this Amendment. The provisions of this Amendment shall inure to the benefit of and be
binding upon the parties hereto, their successors and assigns. 
 7. This Amendment may be executed in counterparts. 
 IN WITNESS WHEREOF, the undersigned have set their hands and seals as of the date first written above. 
  

			
	 LANDLORD:

	 ST. LOUIS COUNTY PORT AUTHORITY

		
	 By:
	 	 /s/ Dennis G. Coleman

	 Name:
	 	Dennis G. Coleman
	 Title:
	 	Executive Director

  

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	 TENANT:

	 PINNACLE ENTERTAINMENT, INC.

		
	 By:
	 	 /s/ Wade Hundley

	 Name:
	 	Wade Hundley
	 Title:
	 	President

  

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 Exhibit 1 
 EXHIBIT C 
 Essential Elements 
  

					
		  	PINNACLE ENTERTAINMENT, INC. COMMITMENT
	Phase I	  		  	
		
	 Minimum Investment:
	  	$375 million
			
	 Elements Included:
	  	–	  	90,000 sq. ft. casino, containing not less than 2,300 slots and 50 tables
		  	–	  	3 restaurants
		  	–	  	parking sufficient to serve the aforesaid facilities
		  	–	  	Connector road from I-55 into the property, including Weber bridge replacement
		  	–	  	Environmental Remediation of Landlord Property (80-acre parcel) and the Known Conditions of the Access Road Property
		  	–	  	$5.1 million contribution for community/aquatic center and baseball and soccer fields
		  	–	  	Hatch shell
			
	Phase II	  		  	
		
	 Minimum Investment:
	  	$75 million
			
	 Elements Included:
	  	–	  	Hotel w/minimum of 100 rooms
		  	–	  	Some combination of additional hotel rooms, an entertainment/meeting space, additional casino space, additional restaurants, retail space, movie theaters, bowling lanes, or other amenities,
as mutually agreed by Tenant and Landlord, that the Parties anticipate may comprise approximately 280,000 square feet, which are intended to increase revenues to the Property
		  	–	  	Parking sufficient to serve the aforesaid facilities

  

 Exhibit 1 

 Exhibit 2 
 FORM OF AMENDMENT TO ROAD DEVELOPMENT AGREEMENT 
 This AMENDMENT TO ROAD DEVELOPMENT AGREEMENT
(the “Amendment”) is made and entered into by and between Pinnacle Entertainment, Inc., a Delaware corporation (“Pinnacle”) and St. Louis County, Missouri County, a charter county and political subdivision of the State of
Missouri (the “County”) as of the date set forth below. 
 RECITALS 
 A. Pinnacle and the County entered into a Road Development Agreement dated August 26, 2005 (the “Road Development Agreement”). 

B. The County desires to replace the Weber Road Bridge. 
 C. Public Law 110-16, enacted March 28, 2007, a copy of which is attached hereto as Exhibit 1 (the “Act”) provides that the Access Road may be constructed, operated and maintained over certain property
notwithstanding certain restrictions imposed pursuant to the Stafford Act. 
 D. The Act imposes potential liability on the County in
connection with any resulting flood damages due to construction of the Access Road. Subject to the mitigation efforts herein required, the County is willing to retain the liability under the Act with respect to the Access Road. 
 E. Pursuant to that certain Intergovernmental Cooperation Agreement dated August 20, 2005, and the Stafford Act, the parties desire to take specific
steps to mitigate such potential resulting flood conditions by reason of construction and operation of the Access Road and by taking certain other actions with respect to (i) the design of the Access Road; and (ii) perpetual parkland uses
on the property adjacent to the Access Road. 
 F. In consideration of the County’s assumption of responsibility under the terms of the
Act, Pinnacle desires to construct, at its cost, a replacement bridge for the Weber Road Bridge. 
 G. Pinnacle and the County desire to
amend the Road Development Agreement to, among other things, (i) provide for the construction of a replacement bridge for the Weber Road Bridge, and (ii) address the restrictions and obligations imposed by the Act. 
 NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the parties agree to amend the Road Development Agreement as
follows: 
  

 Exhibit 2 

 1. Exhibit 2 attached hereto shall be appended to and become “Exhibit A” to the Road
Development Agreement. The route shown on Exhibit 2 is also known as the “Red Route”. 
 2. Section 1.01 is amended by adding
a new subsection (P) as follows: 
 (P) “Weber Road Bridge Project” means the replacement of the Weber Road Bridge on Weber
Road (a/k/a Carondelet Boulevard) in unincorporated Lemay, St. Louis County, Missouri. 
 3. ARTICLE III shall be retitled:
“CONSTRUCTION, MAINTENANCE AND USE OF THE ACCESS ROAD AND THE WEBER ROAD REPLACEMENT BRIDGE”. 
 4. Section 3.01 is amended to
add the following new subparagraph (E) as follows: 
 “(E) The County, at its expense, shall provide the design, plans,
specifications, surveying, geotechnical and other investigations necessary in connection with the Weber Road Bridge Replacement. In connection with the plans and specifications, the County will comply with the most recent and applicable state and
federal laws and regulations governing the bridge design. Said plans shall not be changed in concept or scope without prior approval of the County or Pinnacle. The County shall be responsible for the professional quality, technical accuracy and the
coordination of designs, drawings and specifications required to be furnished to Pinnacle under this Amendment. The plans and specifications provided by the County to Pinnacle and its consultants shall be signed and sealed by a professional engineer
registered in the State of Missouri. The County shall be responsible, at its expense for all utility relocations, including coordination with utility companies either within or outside of the bridge right of way. There shall be no cost to Pinnacle
for the construction permit and such permit shall be approved by and provided to Pinnacle no later than             , 2007. The County shall provide its sales tax exemption
certificate to Pinnacle to be used for purchase of equipment and materials for use in the construction of the Weber Road Bridge Replacement. Following the completion of the Weber Road Bridge Replacement, the County shall maintain the Weber Road
Bridge Replacement pursuant to the terms of the Intergovernmental Agreement. The County shall obtain approvals required by MSD or the City, if any, in connection with the Weber Road Bridge Replacement at its sole cost and expense. 
 (F) The County shall provide its sales tax exemption certificate to Pinnacle to be used for purchase of equipment and materials for use in
construction of the Access Road. 

 5. Section 3.02 is amended to add a new subsection as follows: 
 “(B) Pinnacle and its contractors shall, at Pinnacle’s cost and expense, construct the Weber Road Replacement Bridge in accordance with the
plans and specifications provided by the County and in accordance with the County Code and the terms of the permit. Pinnacle shall also comply with Sections 3.20(A) (vi) and (vii) in constructing the Weber Road Replacement Bridge.”

 6. Article IV is amended to add a subsection 4.03 as follows: 
 “Section 4.03. OPENING OF WEBER ROAD BRIDGE REPLACEMENT. Pinnacle shall give written notice to the County after the completion of the Weber
Road Bridge Replacement. The County shall inspect the Weber Road Bridge Replacement for compliance with its plans and specification. The County shall notify Pinnacle in writing whether or not there are any deficiencies and if there are deficiencies,
specifying the deficiencies. Pinnacle shall upon receipt correct any deficiencies so that the Weber Road Bridge Replacement is in compliance with the County’s plans and specifications. Upon satisfaction of any deficiencies, or if there are
none, Pinnacle shall be relieved of any further obligations with respect to the Weber Road Bridge Replacement. It is expressly understood by the parties that the Weber Road Bridge Replacement shall not be opened to traffic until after the County and
Pinnacle have satisfied the provisions of this Section 4.03” 
 7. A new Article VII shall be added as follows: 
 “ARTICLE VII. PARKLAND DEVELOPMENT 
 The County and Pinnacle shall take the following cooperative actions to assure the perpetual use of the Access Road and the adjoining property for parkland purposes. 
 Section 7.01. PARK LINKAGE. The Access Road shall provide a parkway-like linkage between the County park known as Lemay Park and the new park
to be developed by Pinnacle on the south side of its mixed-use development being constructed pursuant to the Lease and Development Agreement. 
 Section 7.02. MITIGATION DESIGN. The design of the Access Road, approved by the County, shall be located at a grade and constructed with such permeable materials as necessary to mitigate future flooding conditions. 

 Section 7.03. PARK DEVELOPMENT. The design of the Access Road shall encourage the use of
pedestrian and recreational trails owned and operated by the County or the St. Louis Park & Recreation District d/b/a Great Rivers Greenway. 
 Section 7.04. COUNTY PARK OPERATIONS. Except as otherwise provided herein, the parkland adjoining the Access Road shall be operated and maintained by the County. 
 IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed by their respective officers. 
 Executed by the County this      day of November, 2007. 
 Executed by Pinnacle this      day of November, 2007. 
  

			
	 ST. LOUIS COUNTY, MISSOURI

		
	 By:
	 	  

		 	Charlie A. Dooley, County Executive

  

			
	 Attest:

		
	 By:
	 	  

	 Title:
	 	  

	
	 Approved as to Form:

		
	 By:
	 	  

	
	 Approved:

		
	 By:
	 	  

	 Garry Earls, Director of Department of
 Highways and Transportation

  

			
	 PINNACLE ENTERTAINMENT, INC.

		
	 By:
	 	  

	 Name:
	 	  

	 Its:Ground Lease Agreement, effective as of August 1, 2007

 EXHIBIT 10.2 
  

					
	 PLC Tract No. 150
	  		  	
			
	 STATE OF LOUISIANA
	  	:	  	GROUND LEASE AGREEMENT WITH
	 PARISH OF CALCASIEU
	  	:	  	OPTION TO PURCHASE

 This GROUND LEASE AGREEMENT WITH OPTION TO PURCHASE (“Ground Lease”) is and effective as
of August 1, 2007, ( “Effective Date”) by and between PNK (LAKE CHARLES), L.L.C., a Louisiana limited liability company, federal tax identification number 02-0614452, (the “Tenant”), and LAKE CHARLES
HARBOR & TERMINAL DISTRICT, a political subdivision of the State of Louisiana, located in Calcasieu Parish, Louisiana (the “District”). 
 WITNESSETH: 
 WHEREAS, the District is a deep water port and political subdivision of the State of Louisiana
(the “State”) exercising governmental powers of the State as delegated and authorized pursuant to the Louisiana Constitution and other statutory supplemental authorities thereof, acting by and through the Port Director of the District,
having its office and domicile at the Port of Lake Charles, Lake Charles, Louisiana; and 
 WHEREAS, the Tenant is desirous of leasing land
owned by the District for development, construction, and operation of a resort, hotel, retail sales outlet, restaurant(s) , and casino (“Resort”) facilities; and 
 WHEREAS, the Tenant will obtain all licenses, permits and approvals from the Louisiana Riverboat Gaming Commission and the Louisiana Department of Public
Safety and Corrections, Riverboat Gaming Enforcement Division of the Office of State Police, necessary to permit the Tenant to operate a casino riverboat at such land; and 
 WHEREAS, the District desires to lease such land to the Tenant in order to develop the land with such a facility and thereby create and provide
employment opportunities for the inhabitants of the Parish of Calcasieu (the “Parish”), which will add to the welfare and prosperity of the persons residing within the geographic limits of the District and the Parish; and 
  

 1 

 WHEREAS, the District is specifically authorized pursuant to La. R.S. 34:203C to “induce and
encourage the location of enterprises which would have economic impact upon the area served by it and lease lands presently owned by it for the general development of tourism...”; and 
 WHEREAS, in accordance with the above, the Tenant has executed this Ground Lease and offers fair value to the District as consideration for this Ground
Lease. 
 NOW, THEREFORE, in consideration of the above recitals and the mutual covenants hereinafter contained, the parties herein covenant
and agree as follows: 
 1. Definitions. As used in this Ground Lease, the terms “District,” “Ground Lease,”
“Parish,” “State,” and “Tenant” shall have the meanings indicated above, and the following terms shall have the respective meanings indicated below: 
 “Applicable Laws” shall mean all present and future laws, ordinances, orders, rules and regulations of all federal, state, parish, and municipal
governments, departments, commissions, or offices, in each case having applicable jurisdiction over the Project Site, the District, or the Tenant. 
 “District-Created Lien” means any lien, charge, or encumbrance arising or resulting directly from acts or omissions of the District. 
 “Extended Term” means any ten (10) year extension(s) of this Ground Lease occurring after the Initial Term as provided in Section 3.1 hereof. 
 “Ground Lease Commencement Date” means the date that the Tenant obtains a gaming operations certificate authorizing riverboat casino operations
at the Project Site. 
 “Ground Lease Rent Commencement Date” means that date that Tenant has obtained all of the following:

 (a) All the required permits, licenses or approvals for the construction of the Resort. 
 (b) A multiple original of the Pinnacle Dual Head Tax Sharing Agreement among the District, City of Lake Charles, Calcasieu Parish School Board, McNeese
State University, Sowela 

  

 2 

 
Technical Community College, and the Calcasieu Parish Police Jury has been entered into by all parties. 
 (c) Tenant has obtained a Leasehold Title Insurance Policy from a company acceptable to Tenant in an amount acceptable to Tenant showing, good,
marketable and complete ownership to the Project Site in the District, subject to no exceptions except as to the ownership of the minerals by the District, as to which the District agrees not to use the surface of the Project Site for the
investigation, exploration or production of minerals, and except those exceptions for which affirmative title insurance coverage has been provided that will enable the financing and construction of the Project. 
 (d) Tenant has commenced actual construction of the Improvements on the Project Site. 
 (e) The Ground Lease Rent Commencement Date shall be the earlier of December 31, 2007 or the date that all of the conditions in sub-paragraphs
(a) through (d) above have been satisfied. 
 “Initial Term” means the first ten (10) years of the term of this
Ground Lease, as provided in Section 3.1 hereof. 
 “Impositions” means (i) all real or personal property taxes and
assessments on the Improvements to be constructed on the Project Site (but not real property taxes on the Project Site itself, nor any income, transfer, gift, inheritance, estate, intangible personal property, corporation, or similar taxes imposed
on the District by reason of its ownership of the Project Site or its interest in this Ground Lease), the personal property located on the Project Site and taxes, if any, imposed on the ground rent or other charges paid by the Tenant hereunder or on
the Tenant’s interest in or under this Ground Lease, (ii) water and sewer rents, charges for public utilities, governmental excises, levies, license, impact and permit fees, and (iii) other governmental charges which at any time
during the term of this Ground Lease may be assessed, levied, confirmed, imposed upon or become due and payable in respect of or become a lien on the Improvements to be constructed on the Project Site or any part thereof or any appurtenance thereto.

 “Improvements” means the improvements as described in Exhibit “2” to this Ground Lease. 
  

 3 

 “Lease Year” means a period of twelve (12) consecutive full calendar months. The first
Lease Year shall begin on the Ground Lease Commencement Date; provided, however, if said Ground Lease Commencement Date shall occur on other than the first day of a calendar month, then the first Lease Year shall commence upon the first day of the
calendar month next following the Ground Lease Commencement Date. Each succeeding Lease Year shall commence upon the anniversary of the beginning of the previous Lease Year. 
 “Person” means and includes natural persons, corporations, general partnerships, limited partnerships, joint stock companies, joint ventures,
associations, companies, trusts, banks, trust companies, land trusts, business trusts, or other organizations, whether or not legal entities, and governments and agencies and political subdivisions thereof. 
 “Port” or “District” means the Port of Lake Charles or Lake Charles Harbor & Terminal District, as established by Louisiana
Revised Statute 34:201, et seq., in the Parish. 
 “Project” means the construction and operation of resort facilities including
riverboat casino operations as described on Exhibit “2”. 
 “Project Site” means the real property described specifically
by the survey attached as Exhibit “1-A” and legal description on Exhibit “1” to this Ground Lease upon which the Project will be located and which real property is owned by the District and leased by the District to the Tenant
pursuant to this Ground Lease. 
 “Tenant’s Property” means all machinery, vessels, equipment, furniture, furnishings,
inventory and other personal property and all severable fixtures of any kind and at any time made, installed, fixed, or placed on, in, or to the Project Site, but shall not include docks, wharves, warehouses, buildings, or other structures or things
deemed to be immovable. Tenant and Landlord acknowledge that the riverboat portion of the Project is deemed to be a movable and not an immovable, or a component part of an immovable or a component part of the Project Site. 
  

 4 

 2. Ground Lease Premises. 
 2.1 Date. The date of this Ground Lease shall be the Effective Date. 
 2.2 District’s Agreement to Lease. Upon the terms and conditions hereinafter set forth, and in consideration of the payment of the rents and the prompt performance by the Tenant of the covenants and
agreements to be kept and performed by the Tenant under this Ground Lease, the District does lease to the Tenant and the Tenant hereby leases from the District, the Project Site legally described and as shown in that survey attached hereto and made
a part hereof as Exhibit “1-A”. Reasonable egress and ingress from and to the Project Site sufficient to permit the Tenant to accomplish its purposes in connection with the Project shall be made available by the District to the Tenant,
provided that the exact route over waterways shall be subject to the reasonable control of the District. 
 2.3 Description of
Contemplated Improvements. In consideration of, and as a material inducement to, the District’s execution of this Ground Lease, the Tenant hereby agrees and shall be obligated, at Tenant’s sole cost, to finance, construct, and maintain
the Improvements, as provided in Section 6. 
 3. Term. 
 3.1 Initial Term and Extensions. The Initial Term of this Ground Lease shall be ten (10) years, commencing at 12:01 a.m. on the Ground Lease
Commencement Date and, unless sooner terminated as hereinafter provided, ending at 11:59 p.m. on the tenth (10th) anniversary of the last day of the month immediately preceding the Ground Lease Commencement Date, provided that if the Ground
Lease Commencement Date is not the first day of a calendar month, the Initial Term shall extend to 11:59 p.m. on the tenth (10th) anniversary of the last day of the month in which the Ground Lease Commencement Date occurs. The parties shall
enter into a supplemental memorandum setting forth the Ground Lease Rent Commencement Date, the Ground Lease Commencement Date, and expiration date of the Initial Term. 
  

 5 

 In consideration of and conditioned upon Tenant being in full compliance with all terms and conditions
set forth herein, the District hereby grants unto Tenant the option to lease the Project Site for six (6) additional ten (10) year terms; the first of said terms commencing upon the expiration of the Initial Term and extending for a period
of ten (10) years, (hereinafter referred to as “first option term”), and the second of said terms commencing upon the expiration of the first option term for a period of ten (10) years, (hereinafter referred to as “second
option term”), and the third of said terms commencing upon the expiration of the second option term for a period of ten (10) years, (hereinafter referred to as “third option term”), and the fourth of said terms commencing upon
the expiration of the third option term for a period of ten (10) years, (hereinafter referred to as “fourth option term”) and the fifth of said terms commencing upon the expiration of the fourth option term for a period of ten
(10) years, (hereinafter referred to as “fifth option term”) and the sixth of said terms commencing upon the expiration of the fifth option term for a period ten (10) years, (hereinafter referred to as the “sixth option
term”). 
 Each option to extend the lease of the Project Site as set forth above shall automatically occur unless the Tenant elects to
terminate this Ground Lease and communicates such election by written notice from the Tenant to the District on or before six (6) months prior to the expiration of the current lease term. 
 All the terms and conditions of this Ground Lease shall be applicable to the first option term, the second option term, the third option term, the fourth
option term, the fifth option term, and the sixth option term, if any, and the rental shall be determined in accordance with the provisions outlined in Exhibit “3” attached hereto and made a part hereof. 
 4. Rent. 
 4.1 Rent. Commencing on the Ground Lease Rent Commencement Date and until the Ground Lease Commencement Date, Tenant shall pay to the District as rental one-half ( 1/2) of the amount of rental on Exhibit “3”. Commencing with the Ground Lease Commencement Date, Tenant shall pay to the District as rent the
full amount of the rental provided on Exhibit “3”. Rent for any period of less than one month shall be apportioned based on the number of days in that month. 
  

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 4.2 Due Date. All rental payments payable after the Ground Lease Commencement Date shall be made
annually in advance and on or before the fifth working day of the first month of each Lease Year during the entire term of this Ground Lease commencing upon the Ground Lease Commencement Date. 
 All rental payments due from the Ground Lease Rent Commencement Date until the Ground Lease Commencement Date shall be due monthly in advance on or
before the fifth working day of each month following the Ground Lease Rent Commencement Date. The initial rent shall be due on the Ground Lease Rent Commencement Date and shall be a pro rata amount of such monthly rent as provided in paragraph 4.1
in the event the Ground Lease Rent Commencement Date is a date other than the first of a calendar month. 
 4.3 Place of Payment. Rent
shall be payable at such place as the District may specify, by written notice to the Tenant, as hereinafter provided, from time to time. 
 5. Net Lease; Taxes and Utility Expenses. 
 5.1 Net Lease. This Ground Lease is a net lease and it is agreed and
intended that the Tenant shall pay or cause to be paid all operating costs and Impositions of every kind and nature whatsoever relating to the Project Site except as expressly otherwise provided in this Ground Lease. The Tenant shall pay to the
District absolutely net throughout the term of this Ground Lease, the rent and other payments hereunder, free of any charge, assessments, Impositions, expenses, or deductions of any kind, and without abatement, deduction or set off, except as
expressly otherwise provided in this Ground Lease. 
 5.2 Taxes and Utility Expenses. 
 (a) Subject to Section 5.2(b) hereof, the Tenant shall pay or cause to be paid, before any fine, penalty, interest, or cost may be added thereto for
the nonpayment thereof, all Impositions. 
 (b) The Tenant shall bear the burden of and shall make timely remittances of all Impositions and
shall file timely, with appropriate governmental units, all returns, statements, and reports legally required with respect thereto. The Tenant shall promptly remit to any governmental unit any such Imposition, unless the Tenant shall in good faith,
with due 

  

 7 

 
diligence, and by appropriate judicial or administrative proceedings, contest the validity, applicability, or amount thereof. The Tenant shall give the
District 10 days’ prior written notice of the Tenant’s intent to contest such Imposition. Any such contest shall be at the Tenant’s sole cost and expense. 
 (c) The Tenant, upon the request of the District, shall furnish to the District, within thirty (30) days after the date when an Imposition becomes delinquent if not paid, official receipts of the appropriate
taxing authority or other evidence satisfactory to the District evidencing the payment thereof. The certificate, advice or bill of non-payment of such Imposition issued by the proper official designated by law to make or issue the same or to receive
payment of an Imposition shall be prima facie evidence that such Imposition is due and unpaid at the time of the making of such certificate, advice, or bill. 
 (d) Except as expressly otherwise provided herein, nothing contained herein shall modify, amend, or constitute a waiver of, expressly or by implication, any applicable taxes or Imposition with respect to all or any
portion of the Project or the operation thereof. 
 5.3 Utility Connections. The Tenant shall be responsible for obtaining, at its own
cost, electricity, telephone, water, sewerage, and other utility service to the Project Site. 
 6. Tenant Improvements. 

The Tenant shall have the right and obligation to finance, construct, and install on the Project Site (in conformity with Section 6.1 hereof), at
Tenant’s sole cost, the Improvements and such related improvements as are incidental thereto, all of which shall remain the property of the Tenant during the term of this Ground Lease. 
 6.1 Conformity to Preliminary Description and Building Code. A preliminary description of the Improvements is attached hereto as Exhibit
“2”. The Improvements shall be constructed and completed in substantial conformity with such preliminary description and conformity with all applicable building codes, laws, rules and regulations. 
 6.2 (This section intentionally left blank.) 
  

 8 

 6.3 Commencement and Completion of Improvements. The Tenant shall commence construction of the
Improvements within twelve (12) months from the Effective Date of this Ground Lease. The Tenant shall proceed with due diligence to construct and build the Improvements, without any cost, expenses, charge, liability, or obligation to be borne
by the District and shall complete the Improvements. Tenant shall expend on the Improvements an amount equal to the estimated costs set forth in Exhibit “2”, however, Tenant and District acknowledge that such costs are preliminary
estimates and actual expenditures may vary by as much as ten (10%) percent or more. All Improvements shall be completed within thirty-six (36) months from commencement of construction or as specified in Exhibit “2”, except for
delays caused not by the actions of Tenant; but primarily by strike, lock-outs, labor disputes, wars, insurrections, riots, fires, weather interference, acts of God, inability to obtain construction materials, governmental regulations or
interference, rationing, or other restrictions or conditions or causes unavoidable or reasonably beyond the control of the Tenant. 
 6.4
Failure to Complete. Failure to complete construction of the Improvements as set forth in Exhibit “2” prior to 36 months after the commencement of construction shall, at the option of the District, constitute an Event of Default
under Section 15.1, provided that no such Event of Default shall be deemed to have occurred if the delay was primarily caused by the acts or omissions of a third party. Any delays in the completion of construction of the Improvements caused
primarily by strike, lock-outs, labor disputes, wars, insurrections, riots, fires, weather interference, acts of God, inability to obtain construction materials, governmental regulations or interference, rationing, or other restrictions or
conditions or causes unavoidable or reasonably beyond the control of the Tenant shall be deemed reasonable delays, and the time within which the Tenant shall complete the construction of said Improvements and the construction completion date shall
be extended by the length of such delay(s). 
 However, in the event that: (a) the United States of America or the State of Louisiana or
any federal, state or local political body, agency or instrumentality, takes any action(s) that prohibits or materially affects riverboat casino gaming at the Project Site; or (b) a local option referendum is adopted by the populace of the City
of Lake Charles and/or the Parish of 

  

 9 

 
Calcasieu prohibiting riverboat gaming by Tenant at the Project Site; or, (c) the State of Texas adopts legislation which authorizes casino type gaming
(including riverboat gaming) within its borders (as opposed to outside the territorial limits of the United States), Tenant, at its sole option, shall have the right to terminate this Ground Lease and all of its obligations hereunder upon thirty
(30) days written notice, but at the option of the District, Tenant shall, at its expense, demolish and remove any partially complete building on the Project Site. The Tenant shall be entitled to a credit against the penalty for liquidated
damages as provided in paragraph 17.4 of this Ground Lease for the cost of such demolition. 
 6.5 District’s Right to Inspect.
Provided that the District shall not unreasonably interfere with the construction of the Improvements, the District, its officers, representatives, agents, and employees shall have the right, at reasonable times and upon reasonable advance notice to
the Tenant, to examine and inspect the Improvements in order that the District, its officers, representatives, agents, and employees may be able to determine that same substantially conform to applicable laws, rules, regulations or building codes,
including without limitation, the right to observe or conduct reasonable tests of the Improvements to the extent necessary to determine such substantial conformity. If any test conducted by the District, its officers, representatives, agents, or
employees under this Section 6.5 reveals that the Improvements are not in such substantial conformity, the Tenant shall pay the reasonable costs of such test; otherwise, the cost of all such tests shall be at the District’s expense.

 6.6 Tenant’s Property. All Tenant’s Property shall at all times be and remain the sole property of the Tenant. The Tenant
shall be entitled to remove Tenant’s Property from the Project Site at any time during or within 60 days after the termination of this Ground Lease provided the Tenant repairs any damage caused by such removal. 
 6.7 Maintenance of Improvements. During the continuance of this Ground Lease, the Tenant will keep in reasonably good state of repair any and all
property, open areas, sea walls, bulkheads, moorings, buildings, fixtures and building equipment that are brought or constructed or placed upon the Project Site by the Tenant, and the Tenant will repair such property as often as may be necessary in
order to keep the Improvements in reasonably good repair and condition. 
  

 10 

 6.8 Signs. The Tenant shall be permitted to place reasonable signs and other means of
identification of its business on the Project Site so long as the same comply with applicable statutes, laws, and ordinances. 
 6.9
Alterations. The Tenant shall be permitted to make improvements or alterations of the Project Site during the Initial or Extended Term without the District’s approval or consent as long as such alterations and improvements do not result
in any change of the uses of the Project Site permitted by this Ground Lease. 
 7. Tenant’s Surrender of Project Site.

 7.1 Surrender at End of Ground Lease. The Tenant shall and will on the last day of the Initial Term hereof, or if extended, on the
last day of any Extended Term hereof, or upon any early termination of this Ground Lease for any reason, surrender and deliver the Project Site and the Improvements thereon to the District and, except as provided in Section 13, in good condition and
repair (in light of the age, construction, and nature thereof), less normal wear and tear, free and clear of any liens or encumbrances, except for District-Created Liens, and without any payment by the District to the Tenant of any amounts for the
Improvements, or at the option of the District, remove, at the cost of Tenant, all or part of any uncompleted Improvements as may be reasonably determined by the District. The Tenant shall remove the Tenant’s Property. The Tenant shall not be
required to restore the Project Site to its condition prior to construction of the Improvements or to restore any alterations of the Project Site. 
 7.2 District Not Liable. The District shall not be responsible for any loss or damage occurring to any real or personal property owned, leased, or operated by the Tenant, its agents, or employees, prior to or subsequent to the
termination of this Ground Lease, other than, to the extent permitted by law, for such loss or damage occurring as a result of the negligent conduct or the willful misconduct of the District, its officers, representatives, agents, or employees or
the District’s misrepresentations or its breach of or default under this Ground Lease. 
  

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 8. Use. 
 8.1 No Unlawful Activities. The Tenant agrees not to make any unlawful use of the Project Site and the Improvements, including without limitation, any use constituting a nuisance of the Project Site or to
adjoining or neighboring property. 
 8.2 Permitted Uses; Compliance with Laws; Permits. The Project Site shall be used by the Tenant
to construct and operate a riverboat gaming vessel in association with a hotel, retail and entertainment complex. No other use of the Project Site shall be permitted without the consent of the District which consent will not be unreasonably
withheld. Tenant’s use of the Project shall at all times be in compliance with all applicable rules, laws and regulations and Tenant shall obtain and maintain, at its cost, all applicable permits for the construction and maintenance of the
Improvements or for Tenant’s use or activities on the Project Site. 
 8.3 Waste. The Tenant shall not cause, allow, or suffer to
exist any waste of the Project Site or the Improvements. 
 9. Indemnification. 
 9.1 Tenant’s General Agreement to Indemnify. The Tenant releases the District, its officers, representatives, employees, agents, successors
and assigns, (individually and collectively, “District Indemnitee”) from, assumes any and all liability for, and agrees to indemnify the District Indemnitee against all claims, liabilities, obligations, damages, penalties, litigation,
costs, charges, and expenses (including, without limitation, reasonable attorney’s fees, engineers’ fees, architects’ fees, and the costs and expenses of appellate action, if any), imposed on, incurred by or asserted against the
District Indemnitee or its interest in real property in the Project Site arising out of (i) the use or occupancy of the Project Site by the Tenant, its officers, representatives, agents, and employees, (ii) the construction or operation of
the Project by the Tenant, its officers, representatives, agents, and employees, (iii) any claim arising out of the use, occupancy, operation, or construction of the Project Site by the Tenant, its officers, representatives, agents, and
employees, and (iv) activities on or about the Project Site by the Tenant, its officers, representatives, agents, and employees, of any nature, whether foreseen or unforeseen, ordinary, or extraordinary, in connection with the construction use,

  

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occupancy, operation, maintenance, or repair of the Project, the Improvements, or the Project Site by the Tenant, its officers, representatives, agents, and
employees; provided, however, that any such claim, liability, obligation, damage or penalty arising as a result of the negligence or willful misconduct of the District Indemnitee shall be excluded from this indemnity. The indemnity provided in this
section shall include within its scope any liability imposed by law on the District on a strict liability theory as landowner for physical defects in the Project Site (except for environmental contamination), it being the intention of the parties
for Tenant to assume liability for such defects in the Project Site during the term of this Ground Lease. This section shall include within its scope, but not be limited to, any and all claims or actions for wrongful death, but any and all claims
brought under the authority of or with respect to any local, state, or federal environmental statute or regulation shall be covered by Section 9.2 and not this Section 9.1. 
 9.2 Tenant’s Environmental Indemnification. The Tenant agrees that it will comply in all material respects with all environmental laws and
regulations applicable to the Tenant, including without limitation, those applicable to the use, storage, and handling of hazardous substances in, on, or about the Project Site. The Tenant agrees to indemnify and hold harmless each of the District
Indemnitee against and in respect of any and all damages, claims, losses, liabilities, and expenses (including, without limitation, reasonable attorneys, accounting, consulting, engineering, and other fees and expenses), which may be imposed upon,
incurred by, or assessed against any of the District Indemnitee by any other party or parties (including, without limitation, a governmental entity), arising out of, in connection with, or relating to the subject matter of: (a) the
Tenant’s breach of the covenant set forth above in this Section 9.2 or (b) any environmental condition of contamination on the Project Site or any violation of any federal, state, or local environmental law with respect to the Project
Site first occurring after the Effective Date of the Ground Lease and caused by the Tenant’s operations or facilities. 
 9.3 Burden
of Proof. The Tenant, at its own cost, shall cause to be conducted a Phase I and Phase II environmental assessment of the Project Site prior to the commencement of construction of the Improvements and a copy of all written reports issued in
connection with such assessment shall be given 

  

 13 

 
to the District within five (5) days of completion. If, as a result of such assessments, environmental contamination of the Project Site is discovered,
such contamination shall be deemed to have existed prior to the date of the Ground Lease. Any condition of environmental contamination discovered on the Project Site after the completion of the environmental assessments (Phase I and Phase II) shall
be presumed, for purposes of the Tenant’s agreement to indemnify the District Indemnitee, to have been caused by the Tenant’s operations or facilities, unless the Tenant can demonstrate, by a preponderance of the evidence, that
(i) such condition originated off the Project Site, or (ii) such condition was not caused by the Tenant’s operations or facilities. The provisions of this Section 9.3 are intended only to allocate the burden of establishing
causation between the Tenant and the District with respect to environmental contamination discovered before and after the date of the Ground Lease. In no event shall any third party other than the District Indemnitee and the Tenant be entitled to
any benefit, reliance, or presumption based on the provisions of causation or liability of either party with respect to any environmental contamination of the Project Site. 
 9.4 Survival of Indemnities. The foregoing indemnities shall survive the term and shall be in addition to any of the District’s or the
Tenant’s obligations for breach of a representation or warranty. 
 10. Insurance. 
 10.1 Public Liability. The Tenant agrees to carry or cause to be carried public liability insurance with respect to the Project Site and the uses
and activities of the Tenant thereon in the minimum combined single limit amount of One Million Dollars ($1,000,000) for the death of or personal injury to one or more persons and for property damage for each occurrence in connection with the
Project Site and the use thereof or activities of the Tenant thereon, and same shall include the District as an additional insured with respect to any matters arising out of this Ground Lease or arising out of the District’s ownership of the
Project Site. Such requirement may be satisfied by Tenant or its parent corporation maintaining blanket public liability insurance covering all of its operations. Such insurance policy shall contain a provision or be accompanied by a certificate or
endorsement to the effect that the insurance company shall not cancel or materially modify such policy without first giving written notice thereof to the 

  

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District at least thirty (30) days in advance of such cancellation or material modification. At the District’s request, the Tenant shall promptly
provide to District certificates evidencing such insurance and shall furnish copies of such policies to the District. The District may change by reasonable amounts, consistent with prevailing commercial practices in the Port of Lake Charles, the
limits of insurance coverage required by this Section 10.1 upon ninety (90) days written notice to the Tenant stating such changed limits of coverage and the reasons for the change. 
 10.2 Workers’ Compensation. The Tenant further covenants and agrees, at its expense, to take out and maintain at all times, all necessary
workers’ compensation insurance covering all persons employed by the Tenant in and about the Project Site to the extent required by Applicable Laws. 
 10.3 Qualification for Insurer. The Tenant may elect to be self-insured subject to the approval of the District, which approval shall not be unreasonably withheld. 
 10.4 Waiver of Subrogation. As a part of the consideration of this Ground Lease, each of the parties hereby releases the other from all liability
for damage due to any act or neglect of the other party which is the result of fire or other casualty to the extent covered by any insurance policy; provided, however, the releases herein contained shall not affect the rights of either party under
this Ground Lease to be paid insurance proceeds received by the other or apply to loss or damage resulting from the willful or premeditated acts of either of the parties hereto, their agents or employees; and provided further, nothing in this
Section shall be interpreted as or have the effect of relieving or modifying any obligation of any insurance company and shall be void if and to the extent it would have such effect. Any party required by this Ground Lease to maintain any casualty
insurance shall make reasonable attempts to obtain the written consent to this waiver of subrogation from its insurer. 
 11. Liens and
Mortgages. 
 11.1 Prohibition of Liens and Mortgages. The Tenant shall not create or permit to be created or to remain in
connection with the Project, the Project Site, or the Tenant’s activities thereon, any liens or mortgages against any property interest of the District, and the Tenant shall discharge any lien, 

  

 15 

 
encumbrance, or charge (levied on account of any Imposition or any mechanics’, laborers’, or materialmen’s lien or security agreement) which
might be or become a lien, encumbrance, or charge upon the District’s interest in the Project Site or any part thereof in accordance with Section 11.2 hereof. 
 11.2 Discharge of Liens. If any mechanics’, laborers’, or materialmen’s lien (other than a District-Created Lien) shall at any time be filed against the District’s interest in the Project
Site or any part thereof in connection with the Project or the Tenant’s activities thereon, the Tenant, within 30 days after notice of the filing thereof, shall elect to contest the same or cause the same to be discharged of record by payment,
deposit, bond, order of a court of competent jurisdiction or otherwise. If the Tenant does not contest such lien and shall fail to cause such lien to be discharged within the period aforesaid, then, in addition to any other right or remedy of the
District hereunder, the District 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 or by bonding proceedings, and in any such event the District
shall be entitled, if the District so elects, to compel the prosecution of an action for the foreclosure of such lien by the lienor with interest, attorneys’ fees, costs, and allowances. Any amount so paid by the District and all costs and
expenses incurred by the District in connection therewith, including reasonable attorneys’ fees together with interest thereon at one percent (1%) per annum above the prime rate of interest quoted from time to time by Bank of America, New
York, as Bank of America’s Prime Rate, from the respective dates of the District’s making of the payment or incurring of the cost and expense, shall constitute additional rent payable by the Tenant under this Ground Lease and shall be paid
by the Tenant to the District within fifteen (15) days of written demand therefor. 
 11.3 District Not Liable For Mechanic’s
Liens. Nothing herein contained shall be deemed or construed in any way to constitute the consent of or request by the District, express or implied, to a contractor, subcontractor, laborer or materialman for the performance of any labor or the
furnishing of any materials for any specific improvement, alteration to or repair of the Project Site, the Improvements or any part thereof. NOTICE IS HEREBY GIVEN THAT THE DISTRICT SHALL NOT BE LIABLE FOR ANY LABOR OR MATERIALS FURNISHED OR TO BE
FURNISHED TO THE TENANT UPON CREDIT AND THAT NO MECHANIC’S OR OTHER LIEN FOR ANY SUCH LABOR OR MATERIALS SHALL ATTACH TO OR AFFECT THE 

  

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REVERSIONARY OR OTHER INTEREST OF THE DISTRICT IN AND TO THE PROJECT SITE AND THE IMPROVEMENTS THEREON. 
 11.4 Rights of Ground Leasehold Mortgages. The District agrees that it shall execute such agreements and certificates with the holder or
prospective holder of any mortgage or similar lien instrument (a “Mortgage”) encumbering the Tenant’s interests in the Project Site (a “Ground Leasehold Mortgage”) as the Tenant or such Mortgagee may from time to time
reasonably require. As a condition precedent to the District’s obligations under this Section 11.4, the Tenant must notify the District in writing of any Mortgagee that holds a Ground Leasehold Mortgage, and such notice shall include the
name of the Mortgagee and its address for the purpose of all communications required to be given to such Mortgagee under this Section 11.4. Provided the District is so notified, the District agrees with the Tenant and with the specific intent
to expressly benefit any such Mortgagee, as follows: 
 (a) Consent to Ground Leasehold Mortgages. The District acknowledges that this
Ground Lease and all of the Tenant’s rights and interests in the Project Site may be encumbered without the District’s consent and that this Ground Lease, any new lease executed pursuant to part (f) of this Section and all Ground
Leasehold Mortgages shall be prior to all mortgages or other lien instruments encumbering the District’s interest in the Project Site. 
 (b) No Modifications. No modifications to this Ground Lease made after the District has received notice of any Mortgagee shall be effective unless the same are first approved in writing in each instance by each such Mortgagee.

 (c) Rights to Notices. The District shall give to each Mortgagee a copy of all notices pertaining to this Ground Lease, including
all notices regarding any alleged default under this Ground Lease, the termination of this Ground Lease or any demand to remedy any claimed default. Such notices shall be given in writing simultaneously with the notices given to the Tenant and no
notice by the District to the Tenant shall be deemed to have been duly given under this Ground Lease unless and until a true and complete copy thereof has been so provided to every Mortgagee. 
 (d) Rights to Cure. Each Mortgagee shall have a period of sixty (60) days following its receipt of written notice of any 

  

 17 

 
default under this Ground Lease to cause such default to be cured, and this Ground Lease shall not be subject to cancellation unless such cure period expires
without such default being cured in all material respects; provided, however, such period shall be extended so as to permit the Mortgagee to acquire possession of the Project Site for any cure which requires such possession; and provided further,
this Ground Lease shall not be subject to cancellation by the District for any default, including insolvency, bankruptcy, and receivership proceedings related to the Tenant, which the Mortgagee has no reasonable means to cure so long as all rental
and monetary defaults are cured within that aforesaid period. Any Mortgagee shall have the right to interplead any sums in dispute and this Ground Lease may not be canceled as a result of such interpleader. 
 (e) No Terminations. Except as specifically provided in part (d) of this Section, this Ground Lease shall not be subject to termination,
cancellation or forfeiture, nor may the Tenant’s interest herein be surrendered or any such surrender accepted by the District, without the prior written consent of each Mortgagee. The District and the Tenant acknowledge that this limitation
shall apply to any right of the Tenant to cancel this Ground Lease as a result of any condemnation, damage by casualty, frustration of purpose or failure of any condition set forth in this Ground Lease. 
 (f) New Ground Lease. If this Ground Lease is terminated or extinguished for any reason, including by rejection of any receiver or trustee in
bankruptcy or by operation of law, the District agrees to enter into a new lease with the Mortgagee with the same priority as this Ground Lease. If there exists more than one Mortgagee, each Mortgagee shall be offered the opportunity to enter into
such new lease in the order of the priority of their Ground Leasehold Mortgages and each Mortgagee shall be given fifteen (15) days following written notice to exercise such option. The new lease shall be on the same terms and conditions
contained in this Ground Lease, shall be for the remainder of the term which would otherwise then exist under this Ground Lease, and include the same extension options as are granted to the Tenant herein. As a condition to entering into such new
lease, the Mortgagee shall be required to pay all past rental and other sums then due to the District under this Ground Lease. 
  

 18 

 (g) Mortgagee’s Liability. No Mortgagee shall be deemed to have assumed or agreed to perform
any of the Tenant’s obligations under this Ground Lease by reason of encumbering the Tenant’s interest in the Project Site, effecting a cure on the Tenant’s behalf under this Ground Lease, by any course of conduct, or otherwise,
unless and to the extent such assumption is specifically agreed to in writing executed by such Mortgagee; provided, however, the Mortgagee shall be liable for the Tenant’s monetary obligations under this Ground Lease which are attributable to
the period after such Mortgagee acquires the Tenant’s interest in this Ground Lease and before it assigns this Ground Lease to a third party; and provided further, the foregoing limitations of liability shall not be deemed to impair the
District’s right to exercise its remedies as a result of a default under this Ground Lease. In no event shall Mortgagee be liable for any hazardous waste liability of the Tenant. 
 (h) Subsequent Assignments. Regardless of any conditions or limitations upon the assignability of this Ground Lease, any Ground Leasehold Mortgage
may be foreclosed and any Mortgagee who acquires the Tenant’s rights under this Ground Lease, or any Person acquiring this Ground Lease at any foreclosure, trustee’s sale, sheriff’s sale, or similar proceeding or by assignment in lieu
thereof, shall have the right to assign this Ground Lease to any third party without the District’s consent, provided that such third party (i) intends to use the Project Site for the purposes permitted in this Ground Lease, which purposes
are legal and do not conflict with a prior, enforceable, exclusive use covenant or agreement to which the District is a party, and (ii) such third party can reasonably demonstrate its financial capacity to meet the Tenant’s obligations
under this Ground Lease. 
 (i) Insurance Proceeds; Condemnation Awards. The District agrees that all condemnation awards and
insurance proceeds which otherwise belong to the Tenant may be applied in the manner specified in the Ground Leasehold Mortgage with the highest priority at the time such awards or proceeds are paid, and that no compromises, settlements, or other
agreements may be entered into with respect of such awards or proceeds without the prior written consent of the Mortgagee therein. 
 (j)
Further Assurances. The District agrees that it shall execute reasonable amendments to this Ground Lease which do not modify the Tenant’s obligations or materially impair any rights or remedies of the District and shall execute such
estoppel 

  

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certificates and further assurances regarding the status of this Ground Lease and the performance of the District’s and the Tenant’s obligations
hereunder as may be reasonably required by any prospective Mortgagee or any prospective purchaser of a Ground Leasehold Mortgage. 
 (k)
No Merger. It is the specific intent of the District and the Tenant, and the District acknowledges for the benefit of any Mortgagee, that the ownership of the District’s reversionary interest and leasehold interests by any one person
shall not extinguish any Ground Leasehold Mortgage. 
 (1) Successors. The terms, covenants, and assurances contained in this Section
shall bind the District, its successors, assigns, transferees, and mortgagees, and shall inure to the benefit of any successor of or participant with any Mortgagee and any assignee or purchaser of any Ground Leasehold Mortgage. 
 12. Entry on Premises by District, Etc. 
 12.1 Entry on Premises. In addition to such rights of entry as are granted to the District pursuant to Section 6.5 hereof, the Tenant shall permit the District and its authorized representatives to enter the Project Site during
normal business hours upon reasonable notice, which shall be no less than twenty-four (24) hours in advance, for the purposes of inspecting the Project Site and verifying compliance by the Tenant with the terms of this Ground Lease, subject to
applicable rules and regulations of the State of Louisiana concerning gaming operations. 
 13. Destruction by Fire or Other Casualty.

 If Improvements erected on the Project Site shall be destroyed or so damaged by fire or any other casualty whatsoever, not due to the
willful misconduct of the Tenant, where repair or restoration cannot be reasonably accomplished within one hundred and twenty (120) days of the date of such fire or casualty, the Tenant, by written notice to the District accompanied by a
certified copy of a resolution of the Board of Directors of the Tenant to such effect, may, at its election, decide not to restore nor reconstruct the Improvements and may cancel this Ground Lease. In the event that the Tenant so decides not to
restore or reconstruct the Improvements and 

  

 20 

 
cancel this Ground Lease, the Tenant shall notify the District thereof in writing and shall proceed with due diligence to demolish and remove any ruins or
rubble remaining on the Project Site at the Tenant’s sole cost and expense, so as to return the Project Site as nearly as reasonably practicable to the condition thereof at the date of the Ground Lease. Any such cancellation of this Ground
Lease shall be effective as of the date the Tenant completes such demolition and removal work, and all unaccrued liability of the Tenant hereunder shall thereupon terminate. 
 14. Restriction on Assignments and Transfers. 
 The Tenant shall not assign this Ground Lease, in whole or in part, or sublet all or any portion of the Project Site, without the consent of the District, which consent shall not be unreasonably withheld, delayed, or conditioned. The
District agrees that any portion of the Project Site may be subleased by the Tenant so long as the Tenant continues to be responsible for the performance of all of its obligations under this Ground Lease and the sublessee’s intended use of the
Project Site is consistent with those uses permitted of the Tenant hereunder or is otherwise approved by the District. However, in the event of a total assignment or sublease of substantially all of the Project Site to an Assignee/sublessee, where
the Assignee/sublessee can reasonably demonstrate its financial capacity to meet the Tenant’s obligations under this Ground Lease, the Tenant shall be released from any further obligation. In addition, the District acknowledges that no approval
or consent shall be required in connection with an assignment of this Ground Lease for security purposes for any financing permitted hereby, or which is to any entity which controls, is controlled by, or under common control with, the Tenant, or is
a result of any merger or acquisition of the capital stock or assets of the Tenant so long as the surviving entity is fully responsible for all of the obligations of the Tenant hereunder. 
 15. Tenant Off-Site Improvements and Rent Credit 
 15.1 Tenant has agreed with the District to construct and pay for certain improvements (“Landscaping”) along Alternate 5(A) commonly known as the “Texas Turnaround” adjacent to property leased by
the District to Sam’s Club in order to provide a buffered landscape. The Landscaping shall be approved by the District prior to commencement of construction and the construction of the Landscaping shall be completed by the Ground 

  

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Lease Commencement Date. In consideration of Tenant’s obligations herein, the District agrees and grants to Tenant a $200,000 credit toward the payment
of rent for the Project Site which rent credit is to be taken in two successive annual amounts of $100,000 each, commencing with the rent payable on the Ground Lease Commencement Date. 
 16. Acreage Purchase. 
 16.1 In
accordance with and subject to the provisions of applicable law, including, but not limited to, La. R.S. 33:4717.2, and, in consideration of this Ground Lease and, further, in conjunction with the development of the Project by the Tenant, the
District hereby agrees to sell and the Tenant agrees to purchase fifty (50) acres of the Project Site (“Acreage”). The location of the Acreage shall be determined by the Tenant. 
 16.2 Purchase Price. The Tenant agrees to pay to the District the sum of One Hundred Thousand and NO/100 ($100,000.00) Dollars per acre as the
price for the Acreage. The Tenant agrees to pay the price for the purchase of the Acreage on the Ground Rent Commencement Date, even though the location and selection of the Acreage occurs and title to the Acreage is transferred at a date subsequent
to the Ground Rent Commencement Date. However, should Tenant determine that the District cannot convey marketable title in accordance with the terms and conditions of this Ground Lease, then the District agrees to refund the purchase price paid by
Tenant and, thereafter, such Acreage shall remain subject to the terms and conditions of this Ground Lease. 
 16.3 Marketable Title.
The District agrees to convey the Acreage to Tenant with good, unencumbered, merchantable title, with full warranty of title, subject to no exceptions, except those that may be approved by the Tenant and except as to title to the minerals which the
District reserves without the right to use the surface of the Acreage for any purpose whatsoever and except those exceptions for which affirmative title insurance coverage has been provided that will enable the financing and construction of the
Project. 
 16.4 Partial Release of Ground Lease. Upon the purchase of the Acreage, the District agrees to release the Acreage from
the Ground Lease, to refund to the Tenant any rent which the Tenant has paid to the District in advance for the Acreage so released 

  

 22 

 
and to adjust the rent for the Project Site as calculated on Exhibit “3”, taking into consideration and pro-rated to the release of the Acreage
from the Project Site. 
 16.5 Acreage Selection. Prior to the Ground Lease Commencement Date, the Tenant shall select the location(s)
of the Acreage and the Tenant shall provide the District, at Tenant’s cost, with a current staked preliminary survey (“Survey”) of the Acreage prepared by a licensed Louisiana surveyor acceptable to the District and reflect all
improvements, servitudes, public rights of way, flood zone classifications and other matters which the title insurer may require in order to issue an ALTA Form (B) Owner’s Title Insurance Policy without the standard printed exceptions.
Within thirty (30) days of receipt of the Survey, the District, at its expense, will provide to the Tenant a complete and current abstract of title to the Acreage. The Tenant shall have forty (45) days to examine the abstract and obtain a
commitment for an Owner’s Title Insurance Policy from a Title Insurance Company if its choice. Should the Title Insurance Commitment contain any required title exceptions (Schedule B-l of the Title Insurance Commitment), the District agrees to
satisfy such requirements at its expense within forty-five (45) days of receipt of the Title Insurance Commitment. Should the District be unable to satisfy such requirements after undertaking to remove them diligently and in good faith, the
Tenant shall have the choice of clearing such title exceptions, at the expense of the District, and the time for closing the sale of the Acreage shall be extended for such period of time which the Tenant shall reasonably require to remove the
exceptions or alternatively, the Tenant may elect to waive the removal of an exception and proceed to close the sale of the Acreage. The close of the sale of the Acreage shall be before Tenant’s Notary or by mail, within fifteen (15) days
that the District has notified the Tenant that it has satisfied all requirements listed in Schedule B-l of the Title Insurance Commitment. The District agrees to pay the cost of preparing the deed to the Acreage, and the cost of preparing and
recording any releases or cancellations or title curative matters. All other costs associated with the closing shall be paid by the Tenant. 
 16.6 Access and Servitudes for Development and Use of the Acreage. 
 In conjunction with the sale of the Acreage to the
Tenant, the District agrees to grant to the Tenant at no additional 

  

 23 

 
costs, one or more predial servitudes (“Servitudes”) across the Project Site and the other adjoining land of the District for the installation of
streets, drainage, sewer, water, gas and electrical utilities, telecommunication and cable television services (“individually and collectively the “Services”) as are necessary for the development of the Acreage as a residential
development. The location of such Servitudes and their dimensions shall be mutually determined by the District and the Tenant. The District agrees that the dimensions of such Servitudes shall be such that will permit the future dedication of such
servitude areas to the public, provided the District and the Tenant both agree to such future dedication. The District agrees to subordinate the Ground Lease, and the Ground Lease that it entered into with the Tenant on August 21, 2003, to the
Servitudes which the District shall establish. The District further agrees to join with the Tenant in granting one or more Servitudes which a public utility or service provider reasonably requires in order to provide the Services. Tenant and
District agree that the construction and installation of improvements on the Servitudes shall be without expense to the District. 
 17.
Events of Default of Tenant. 
 Except for a termination by Tenant pursuant to Section 3.1 or Section 18.2, if any one or
more of the following events shall happen and not be remedied as herein provided an Event of Default shall be deemed to have occurred: 
 17.1
Breach of Special Covenants. Subject to the provisions of Sections 25 and 6.4, if the Tenant shall fail to commence construction of the Improvements when required pursuant to Section 6.3 or fail to complete construction of the
Improvements when required pursuant to Section 6.4; or 
 17.2 Breach of Covenant. If default shall be made by the Tenant in the
performance of or compliance with any of the covenants, agreements, terms, or conditions contained in this Ground Lease other than those referred to in the foregoing Section 17.1, and such default shall continue for a period of sixty
(60) days after written notice thereof from District to the Tenant specifying the nature of such default and the acts required to cure the same, or, in the case of a default or a contingency which cannot with due diligence be cured within such
period of sixty (60) days, the Tenant fails to proceed with all due diligence within such period of sixty (60) days, to commence 

  

 24 

 
cure of the same and thereafter to prosecute the curing such default with all due diligence (it being intended that in connection with a default not
susceptible of being cured with due diligence within sixty (60) days that the time of the Tenant within which to cure same shall be extended for such period as may be necessary to complete the same with all due diligence). 
 17.3 District’s Remedies. Cure. 
 (a) Right to Terminate. Upon the occurrence of an Event of Default, the District may give written notice to the Tenant stating that this Ground Lease and the term hereby demised shall expire and terminate on the date specified by
such notice, and this Ground Lease, the term hereby demised, and the rights of the Tenant under this Ground Lease shall expire and terminate unless such default is fully remedied in a timely manner and all arrears of rent, and all other amounts
payable by the Tenant under this Ground Lease, in each case within sixty (60) days from the date of such notice, together with interest thereon at the rate provided by law for judicial interest from the time when the same became due and
payable, and all costs and expenses reasonably incurred by or on behalf of the District as a result of the Event of Default, including reasonable attorneys’ fees, shall have been fully and promptly paid by the Tenant to the District and all
other defaults shall have been fully cured and made good or cured to the reasonable satisfaction of the District, in either of which events the consequences of such Event of Default shall be deemed to be annulled. 
 (b) Right to Cure. Upon the occurrence of an Event of Default, the District may take whatever actions are reasonably necessary to cure such Event
of Default, including the hiring of attorneys, contractors, consultants, architects, engineers, laborers, or others, purchasing the required goods or services and procuring necessary insurance or performance bonds. The Tenant shall be responsible
for all costs, including attorney’s fees and the fees of other professionals, reasonably incurred by the District pursuant to this Section and such costs shall be billed to the Tenant in addition to any and all rent due hereunder. The Tenant
shall pay all such additional costs and charges within fifteen (15) days after billing by the District. 
 (c) Injunctions and
Damages. Upon the occurrence of any Event of Default hereunder, the District at any time thereafter shall have the right to enjoin such breach and to invoke any right and remedy allowed herein, by law or in equity (except for 

  

 25 

 
the right of specific performance), or by statute or otherwise including, without limitation, remedies at law for damages and for reimbursement of expenses
to the District in connection with any such action, including reasonable attorney’s fees, costs, and appellate expenses. 
 17.4
Taking of Possession; Acceleration of Ground Rent. Upon any expiration or termination of this Ground Lease or any termination by summary proceedings or otherwise, (a) the Tenant shall quit and peacefully surrender the Project Site to the
District, without any payment therefor by the District, and the District, upon or at any time after any such expiration or termination, may, without further notice, enter upon and re-enter the Project Site, by summary proceedings, ejectment, or
otherwise, and may dispossess the Tenant and remove the Tenant and all other persons and property from the Project Site and may have, hold, and enjoy the Project Site and the right to receive all rental income of and from the same; and (b) the
District shall be entitled to collect forthwith upon such termination as penalty or liquidated damages the amount, if any, equal to TEN MILLION AND NO/100 ($10,000,000.00) DOLLARS less the cost of the Improvements constructed and completed by
Tenant, but in no event in excess of the remaining aggregate rent; and (c) all obligations of the Tenant hereunder for additional rent, or Impositions, or any portion thereof arising or accruing with respect to any period prior to such
termination and any obligations of the Tenant under the indemnification provisions hereof arising or accruing with respect to any period prior to such termination hereof, in each case without regard to whether such matter is first noticed to the
District prior to or subsequent to such termination, shall survive the termination hereof. However, if the District obtains a successor tenant during what would have been the remainder of the term of this Ground Lease, Tenant shall receive a credit
for rentals collected from said successor tenant for the remaining term of this Ground Lease, but in no event shall the credit exceed the amount which Tenant would have been obligated to have paid if there had been no default. The District shall not
be under any duty to obtain a successor tenant. At the option of the District, Tenant shall, at Tenant’s expense, demolish and remove any partially complete building on the Project Site. The Tenant shall be entitled to a credit against the
penalty for liquidated damages as provided in this Section 17.4 of this Ground Lease for the cost of such demolition. 
  

 26 

 17.5 Agent for Service. The Tenant shall maintain a registered agent of the Tenant for service of
process, which agent will be located within the State of Louisiana. The Tenant shall provide the name and address of such agent or any successor agent to the District in writing prior to the commencement of the lease term. If the Tenant shall fail
to maintain such a registered agent within the State of Louisiana, service of process may be accomplished by public posting on the Project Site in the same manner and for the same period as provided in Louisiana statutes, with written notice
becoming effective at the time of posting. 
 18. Events of Default of the District. 
 18.1 District’s Event of Default. Any failure of the District to comply with any of its obligations under this Ground Lease shall constitute a
“District’s Event of Default” hereunder if such failure continues for thirty (30) days after the Tenant gives the District written notice thereof and the acts required to cure the same. 
 18.2 Termination of Ground Lease. In the event of a District’s Event of Default of the District under this Ground Lease, the Tenant may
cancel this Ground Lease by written notice to the District. Except to the extent the Tenant is otherwise indebted to the District, all deposits, unearned rent and other unearned payments by the Tenant under this Ground Lease shall be returned to the
Tenant immediately upon such cancellation. 
 18.3 Right to Cure. Upon the occurrence of a District’s Event of Default, the
Tenant may take whatever actions are reasonably necessary to cure such Event of Default, including the hiring of attorneys, contractors, consultants, architects, engineers, laborers, or others, purchasing the required goods or services and procuring
necessary insurance. The District shall be responsible for all costs including attorneys’ fees and the fees of other professionals, reasonably incurred by the Tenant pursuant to this Section and such costs shall be billed to the District. The
District shall pay all such additional costs and charges within fifteen (15) days after billing by the Tenant. 
 18.4 Tenant’s
Right to Damages. Except to the extent specifically waived in this Ground Lease, the Tenant shall have the right, with or without canceling this Ground Lease, to recover damages caused by a District’s Event of Default. 
  

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 19. Mutual Obligations. 
 19.1 Late Charges; Interest. If any rent or other sum is not paid when due under this Ground Lease, and if such delinquency continues for a period
of ten (10) days after receipt of written notice, such sum shall bear a late charge equal to one-half of one percent (0.005%) of the amount thereof, the parties recognizing and agreeing that such charge represents a reasonable approximation of
the additional administrative costs and expenses which are likely to be incurred by the non-defaulting party. Additionally, any judgment rendered therefor shall bear interest from the date originally due to the date of collection at the rate of
prescribed by law as legal interest. 
 19.2 Obligations to Mitigate Damages. Both the District and the Tenant shall have the
obligation to take reasonable steps to mitigate their damages caused by any default under this Ground Lease. 
 19.3 Failure to Enforce
Not a Waiver. No failure by either party to insist upon the strict performance of any covenant, agreement, term, or condition of this Ground Lease or to exercise any right or remedy arising upon the breach thereof, and no acceptance by the
District of full or partial rent during the continuance of any such breach, shall constitute a waiver of any such breach of such covenant, agreement, term, or condition. No covenant, agreement, term, or condition of this Ground Lease to be performed
or complied with by either party and no breach thereof shall be waived, altered, or modified except by a written instrument executed by both parties. No waiver of any breach shall affect or alter this Ground Lease, but each and every covenant,
agreement, term, or condition of this Ground Lease shall continue in full force and effect with respect to any other then existing or subsequent breach hereof. 
 19.4 Rights Cumulative. Each right and remedy of the parties provided in this Ground Lease shall be cumulative and shall be in addition to every other right or remedy provided for in this Ground Lease or now or
thereafter existing at law or in equity or by statute or otherwise (excluding, however, specific performance against the Tenant) and the exercise or beginning of the exercise by the parties of any one or more of such rights or remedies provided for
in this Ground Lease or now or hereafter existing at law or in equity or by statute or otherwise shall not preclude the simultaneous or later exercise by the parties 

  

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of any or all other such rights or remedies provided for in this Ground Lease or now or hereafter existing at law or in equity or by statute or otherwise.

 20. Notices. 
 20.1
Addresses. All notices, demands, and requests which may or are required to be given hereunder shall be in writing, delivered by personal service, or shall be sent by facsimile or United States registered or certified mail, return receipt
requested, postage prepaid, to the parties at the following numbers and addresses: 
  

			
	 To the Tenant:
	 	 PNK (LAKE CHARLES), L.L.C.
 3800 Howard Hughes Parkway

 Suite 1800
 Las Vegas, Nevada 89109
 Facsimile No. (702) 784-7778

		
	 With a copy to:
	 	 Jack Robichaux
 Robichaux, Mize & Wadsack, L.L.C.

 1777 Ryan Street
 Lake Charles, LA 70601
 Facsimile No. (337) 433-1274

		
	 To the District:
	 	 Port Director
 Lake Charles Harbor & Terminal
District
 150 Marine Street
 Post Office Box 3753
 Lake Charles, Louisiana 70602
 Facsimile No. (337)
493-3523

 or to such other numbers or addresses as either party may from time to time designate by written notice to the
other party hereto at least fifteen (15) days in advance of an effective date stated therein. 
 20.2 When Deemed Delivered.
Notices, demands, and requests which may or shall be served in accordance with Section 18.1 hereof shall be deemed sufficiently served or given for all purposes hereunder at the earlier of (i) the time such notice, demand, or request shall
be received by the addressee, or (ii) ten (10) days after posting via United States registered or certified mail, return receipt requested, postage prepaid. 
  

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 21. Quiet Enjoyment; Title. 
 21.1 Quiet Enjoyment. Subject to the terms and conditions of this Ground Lease, the Tenant, as of the Effective Date and so long as Tenant pays the
ground rent and all additional rent, Impositions, and other charges herein provided for and observing and keeping all covenants, agreements, and conditions of this Ground Lease on its part to be kept and performed in all material respects, shall
quietly have and enjoy the Project Site during the term of this Ground Lease, without hindrance or molestation by the District or anyone claiming under or through the District. This agreement shall be construed as a covenant running with the land.
Nothing in this Section or any other section herein shall constitute a waiver of the District’s exercise of its police powers under the law applicable to third parties generally. 
 As long as this Ground Lease is in effect, the District shall only allow compatible use of the remainder of its property adjacent to the Project Site and
will not create or allow the creation of a visual, olfactory or auditory nuisance on said remainder of its property. 
 21.2
District’s Title. District represents and warrants as a condition of this Ground Lease that it is the sole record holder of good title to the Project Site subject to no cloud(s) or encumbrances which would materially affect the
Tenant’s use and enjoyment or peaceable possession of the Project Site or would prevent the Tenant from obtaining a leasehold policy of title insurance insuring its interest in the Project without exceptions to which the Tenant reasonably
objects; and that during the term hereof it shall not encumber the Project Site; that it is authorized to make this Ground Lease for the term hereof; that the provisions of this Ground Lease do not and will not conflict with or violate any of the
provisions of existing agreements between District and any third party; that the certificate of occupancy, when issued, will allow the Tenant to use the Improvements for the purposes set forth herein, subject to applicable federal, state, and local
laws, ordinances, and building codes; and that District will deliver the Project Site free of all tenants and occupants and claims thereto. District has furnished to Tenant’s counsel a complete and up-to-date abstract of title at
District’s sole expense, prior to the execution of this Ground Lease. 
  

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 In addition to the foregoing obligation on behalf of the District to provide quite and peaceful
possession of the Project Site, the District shall use its best efforts to obtain, within a reasonable time, an expressed release of spoils area designation from the U.S. Army, Corps of Engineers, affecting the Project Site and all lands owned or
possessed by the District contiguous to the Project Site. 
 22. Non-Merger of Leasehold. There shall be no merger of this Ground
Lease or of the leasehold interest hereby created with the record owner’s reversionary interest in the Project Site or any part thereof by reason of the fact that the same Person may acquire or hold, directly or indirectly, this Ground Lease or
leasehold interest hereby created or any interest in this Ground Lease or in such leasehold interest and the owner’s reversionary interest in the Project Site or any interest therein. 
 23. Eminent Domain. 
 23.1 Complete
Condemnation. If, during the term hereof, the whole of the Project Site shall be taken under the power of eminent domain (or in lieu of or under threat of exercise of such power) by any public or private authority, then this Ground Lease and the
term hereof shall cease and terminate as of the date of such taking, provided that the Tenant shall share in the condemnation award as provided herein. The Tenant may, upon the written approval of the District, continue to occupy the Project Site,
subject to the terms of this Ground Lease, for all or such part of the period between the date of such taking and the date when possession of the Project Site shall be taken by the taking authority, and any unearned rent or other charges, if any,
paid in advance, shall be refunded to the Tenant. If required, the Tenant shall procure from the applicable governmental authority, at the Tenant’s sole cost and expense, all necessary consents and authorizations to continue to occupy the
Project Site from and after the date of such taking. 
 23.2 Partial Condemnation. If, during the term hereof, any public or private
authority shall, under the power of eminent domain (or in lieu of or under threat of exercise of such power), make a taking resulting in the reduction of the surface area of the Project Site by fifteen percent (15%) or more, or of fifteen
percent (15%) or more of the value of the Improvements, or resulting in the Tenant’s not being able to use the remainder of the Project Site or Improvements for the purposes 

  

 31 

 
contemplated hereby, then the Tenant may, at its election, terminate this Ground Lease by giving the District notice of the exercise of its election within
thirty (30) days of the date of notice to the Tenant of such taking. In the event of termination by the Tenant under this Section 23.2, the term hereof shall cease and terminate as of the last day of the calendar month in which such notice
of exercise of its election to terminate has been given, and any unearned rent or other charges, if any, paid in advance, shall be refunded to the Tenant, and the Tenant shall share in the condemnation award as provided herein. 
 23.3 Rent Adjustment. In the event that the Tenant does not elect to terminate this Ground Lease pursuant to Section 23.2 above, then this
Ground Lease and the term hereof shall continue in full force and effect, and the base annual rent shall be adjusted pro-rata in accordance with the land area of the property actually taken by the condemning authority. 
 23.4 Allocation of Award. In the event of a complete taking (or partial taking resulting in termination of this Ground Lease) of the Project Site
and/or the Improvements, the District shall be entitled to recover that portion of the condemnation award (or settlement) fairly attributable to the value of the land taken. The Tenant shall be entitled to recover that portion of the award fairly
attributable to the value of the Improvements taken. In the event no Improvements are taken, the Tenant shall not be entitled to any portion of the award, and in the event no land is taken, the District shall not be entitled to any portion of the
award, unless the Tenant elects to terminate this Ground Lease pursuant to Section 23.2, in which event the award or settlement shall be allocated as provided above. In the event of a partial taking of the Improvements not resulting in a
termination, the entire award or settlement shall be paid to the Tenant. Nothing contained herein shall prohibit the Tenant’s claiming relocation damages or damages for lost profits against the taking authority in any appropriate proceeding.

 24. Temporary Taking or Other Deprivation. If, during the term hereof, (i) less than all of the District’s title to all
or any portion of the Project Site is taken for temporary use or occupancy, or (ii) any public or private authority takes any action not resulting in a taking of all or any portion of the Project Site but resulting in a right to compensation
therefor, such as changing of the grade of any street upon which the 

  

 32 

 
Project Site abuts, then, except as otherwise provided in Section 23, the Tenant shall be entitled to make claim for, recover, and retain all awards,
whether pursuant to judgment, agreement, or otherwise, recoverable in connection therewith. 
 25. Force Majeure. Either party hereto
shall be excused from performing any of its respective obligations or undertakings provided in this Ground Lease, excepting any of its respective obligations or undertakings to pay any sums of money under the applicable provisions hereof, for so
long as the performance of such obligations are prevented or significantly delayed, retarded or hindered by act of God, fire, weather interference, flood, hurricane, strike or labor disturbance, acts of war (declared or undeclared), invasion, or
insurrection, if such party hereto gives written notice of such delay to the other party within twenty (20) calendar days of the occurrence of such event. 
 26. Lease Termination. On June 20, 2005, Tenant and the District entered into a lease
agreement (“June 20th Lease”) covering 15.18 acres and being a portion of the Project Site. As of the Ground Rent Commencement Date, Tenant and
the District agree that Tenant’s obligation to pay rent under the June 20th Lease shall terminate and the Tenant and the District agree to
execute a formal termination of the June 20th Lease. 
 27. Miscellaneous. 
 27.1 Time is
of the Essence. Time is of the essence of each and all of the terms and provisions of this Ground Lease. 
 27.2 Access to
Premises. The District agrees that access to the Project Site will be provided via the existing dedicated public road currently named L’Auberge Boulevard. 
 27.3 Successors. The covenants, agreements, terms, provisions, and conditions contained in this Ground Lease shall apply to and inure to the benefit of and be binding upon the District and the Tenant and their
respective successors and assigns, except as expressly otherwise herein provided, and shall be deemed covenants running with the respective interests of the parties hereto. 
 27.4 Surviving Covenants. Each provision of this Ground Lease which may require performance in any respect by or on behalf of either the Tenant or
the District after the expiration 

  

 33 

 
of the term hereof or its earlier termination shall survive such expiration or earlier termination. 
 27.5 Provisions Deemed Conditions and Covenants. All of the provisions of this Ground Lease shall be deemed and construed to be
“conditions” and “covenants” as though the words specifically expressing or importing covenants and conditions were used to describe each separate provision hereof. 
 27.6 Headings. The headings and section captions in this Ground Lease are inserted only as a matter of convenience and for reference and in no way
define, limit, or describe the scope or intent of this Ground Lease or in any way affect this Ground Lease as to matters of interpretation or otherwise. 
 27.7 No Oral Change or Termination. This Ground Lease and the exhibits appended hereto and incorporated herein by reference contain the entire agreement between the parties hereto with respect to the subject
matter hereof and supersedes any prior agreements or understandings between the parties with respect to the subject matter hereof, and no change, modification, or discharge hereof in whole or in part shall be effective unless such change,
modification, or discharge is in writing and signed by the party against whom enforcement of the change, modification, or discharge is sought. This Ground Lease cannot be changed or terminated orally. 
 27.8 Governing Law; Severability. This Ground Lease shall be governed by and construed in accordance with the laws of the State of Louisiana. To
the extent permitted by law, the parties hereto shall be deemed to have waived to the maximum extent possible all legal provisions to the end that this Ground Lease shall be enforceable in accordance with its terms. If any term or provision of this
Ground Lease or the application thereof to any Person or circumstance shall, to any extent, be held to be invalid or unenforceable, the remaining provisions of this Ground Lease or the application of such term or provision to 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 Ground Lease shall be valid and enforceable to the fullest extent permitted by law. 
 27.9 Counterparts. This Ground Lease may be executed in one or more counterparts, each of which so executed shall be deemed to be an original and
all of which together shall constitute but a single document. 
  

 34 

 27.10 Litigation. In case of any litigation between the parties hereto regarding the subject
matter hereof, the losing party shall pay all reasonable costs and expenses (including reasonable attorneys’ fees) of the prevailing party. 
 27.11 Gender of Words. Words of any gender in this Ground Lease shall be held to include masculine or feminine and words denoting a singular number shall be held to include the plural, and plural shall include the singular, whenever
the sense requires. 
 27.12 Sovereign Immunity; Statutory Authority. The District represents and warrants that it has the statutory
authority to enter into this Ground Lease, that, when executed, this Ground Lease shall be binding and enforceable in accordance with its terms, and that it is not immune from suit or judgment resulting from any claim or action brought against it by
the Tenant pursuant to the express terms of this Ground Lease. 
 27.13 Brokers and/or Real Estate Agents. Neither party to this
Ground Lease shall be liable for any real estate brokers’ or leasing agents’ commissions in the absence of a written agreement. 
 27.14 Legal Relationships. This Ground Lease shall not be interpreted or construed as establishing a partnership or joint venture between the District and the Tenant and neither party shall have the right to make any representations
or be liable for the debts or obligations of the other. Neither party is executing this Ground Lease as an agent for an undisclosed principal. No third party is intended to be benefited by this contract. 
 27.15 Memorandum of Lease. At either party’s request, the parties hereto agree to execute and cause to be properly recorded a memorandum of
this Ground Lease, sufficient in form and content to give third parties constructive notice of the Tenant’s interest hereunder. 
 28.
Guaranty of Parent. Pinnacle Entertainment, Inc., a Delaware corporation, (the “Parent”), has agreed to guaranty the obligations of the Tenant under this Ground Lease by a separate guaranty agreement. 
  

 35 

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

									
		 		 	DISTRICT:
			
	witnesses	 		 	LAKE CHARLES HARBOR & TERMINAL DISTRICT,
	 /s/ Sharon Edwards
	 		 	a political subdivision of the State of Louisiana
	(signature)	 		 	
	 SHARON EDWARDS
	 		 	
	(print name)	 		 	By:	 	 /s/ Adam McBride

		 		 	R. ADAM McBRIDE, Port Director
	 /s/ Linda Manuel
	 		 	
	(signature)	 		 	
	 LINDA MANUEL
	 		 	Approved by:
	(print name)	 		 	
		 		 	 /s/ Michael K. Dees

		 		 	Michael K. Dees, General Counsel
			
		 		 	TENANT :
			
	WITNESSES:	 		 	PNK (LAKE CHARLES), L.L.C.
				
		 		 	BY:	 	PINNACLE ENTERTAINMENT, Inc.
	 /s/ Elaine Pumphrey
	 		 		 	Its:	 	Sole Member
	(signature)	 		 		 		 	
	 Elaine Pumphrey
	 		 	By:	 	 /s/ John A. Godfrey

	(print name)	 		 	Name:	 	John A. Godfrey
	 /s/ Tara Perry
	 		 	Title:	 	Executive Vice President,
	(signature)	 		 		 	Secretary and General Counsel
	 Tara Perry
	 		 		 	
	(print name)	 		 		 	

  

 36 

			
	 	  	LIST OF EXHIBITS
		
	 Exhibit “1”
	  	Project Site Description
		
	 Exhibit “1-A”
	  	Morrison Survey dated                     
		
	 Exhibit “2”
	  	Improvements
		
	 Exhibit “3”
	  	Rental

  

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 EXHIBIT “1” 
 PROJECT SITE DESCRIPTION 
 DESCRIPTION: 
 233.96 acres, more or less, described as follows: 
 That certain tract or parcel of land lying in Lots Seven (7), Eight (8),
and Twelve (12) of Section Ten (10) and Lots Six (6), Eleven (11), Twelve (12), Thirteen (13) and Fourteen (14) of Section Eleven (11), all in Township Ten (10) South, Range Nine (9) West, Calcasieu Parish, Louisiana,
being more particularly described as follows to-wit: 
 Commencing at the Southwest comer of the Barthelemew Lebleu Claim of Irregular Section Thirty-eight
(38), Township Ten (10) South, Range Nine (9) West, Calcasieu Parish, Louisiana; 
 Thence North 22° 21’ 49” East, along the West
line of said Barthelemew Lebleu Claim of Irregular Section Thirty-eight (38), for a distance of 254.60 feet to the intersection with the South line of aforesaid Section Eleven (11); 
 Thence North 89° 11’ 50” West, along said South line of Section Eleven (11), for a distance of 161.29 feet to the intersection with the West right-of-way line of the Pinnacle Entertainment, Inc.
L’Auberge du Lac Hotel and Casino South Entrance Road, the Point of Beginning of herein described tract; 
 Thence North 89° 11’ 50” West,
along said South line of Section Eleven (11), for a distance of 4118.68 feet to the corner common to Sections Ten (10), Eleven (11), Fourteen (14) and Fifteen (15), Township Ten (10) South, Range Nine (9) West; 
 Thence North 89° 21’ 30” West, along the South line of said Section Ten (10), for a distance of 776.88 feet to the East top bank of Prien Lake (Indian
Bay); 
 Thence meandering along said East top bank of Prien Lake (Indian Bay), in a general direction of North 15° 13’ 47” West, for a
distance of 232.65 feet; 
 Thence meandering along said East top bank of Prien Lake (Indian Bay), in a general direction of North 41 ° 39’ 13”
West, for a distance of 191.16 feet; 
 Thence meandering along said East top bank of Prien Lake (Indian Bay), in a general direction of South 85°
11’ 32” West, for a distance of 146.47 feet; 
 Thence meandering along said East top bank of Prien Lake (Indian Bay), in a general direction of
North 54° 10’ 25” West, for a distance of 132.88 feet; 
  

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 Thence meandering along said East top bank of Prien Lake (Indian Bay), in a general direction of North 76° 28’
49” West, for a distance of 129.72 feet; 
 Thence meandering along said East top bank of Prien Lake (Indian Bay), in a general direction of North
77° 13’ 10” West, for a distance of 174.64 feet; 
 Thence meandering along said East top bank of Prien Lake (Indian Bay), in a general
direction of North 63° 46’ 57” West, for a distance of 305.36 feet; 
 Thence meandering along said East top bank of Prien Lake (Indian Bay),
in a general direction of North 40° 34’ 09” West, for a distance of 96.42 feet; 
 Thence meandering along said East top bank of Prien Lake, in
a general direction of North 03° 28’ 51” West, for a distance of 290.97 feet; 
 Thence meandering along said East top bank of Prien Lake, in a
general direction of North 06° 59’ 15” East, for a distance of 112.51 feet; 
 Thence meandering along said East top bank of Prien Lake, in a
general direction of North 08° 47’ 22” West, for a distance of 221.13 feet; 
 Thence meandering along said East top bank of Prien Lake, in a
general direction of North 17° 45’ 50” West, for a distance of 593.36 feet; 
 Thence meandering along said East top bank of Prien Lake, in a
general direction of North 12° 16’ 05” West, for a distance of 113.24 feet; 
 Thence meandering along said East top bank of Prien Lake, in a
general direction of North 05° 02’ 58” West, for a distance of 89.12 feet; 
 Thence meandering along said East top bank of Prien Lake, in a
general direction of North 18° 50’ 30” East, for a distance of 202.61 feet; 
 Thence meandering along said East top bank of Prien Lake (Indian
Bay), in a general direction of North 33° 07’ 57” East, for a distance of 60.41 feet; 
 Thence meandering along said East top bank of Prien
Lake (Indian Bay), in a general direction of North 64° 16’ 28” East, for a distance of 32.94 feet to the left descending bank of the Calcasieu River; 
 Thence meandering along said left descending bank of the Calcasieu River, in a general direction of North 78° 15’ 35” East, for a distance of 252.96 feet; 
  

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 Thence meandering along said left descending bank of the Calcasieu River, in a general direction of South 86°
03’ 11” East, for a distance of 308.38 feet; 
 Thence meandering along said left descending bank of the Calcasieu River, in a general direction of
South 81° 13’ 23” East, for a distance of 229.29 feet; 
 Thence meandering along said left descending bank of the Calcasieu River, in a
general direction of South 87° 22’ 02” East, for a distance of 531.89 feet; 
 Thence meandering along said left descending bank of the
Calcasieu River, in a general direction of North 86° 57’ 14” East, for a distance of 396.48 feet; 
 Thence meandering along said left
descending bank of the Calcasieu River, in a general direction of North 76° 32’ 48” East, for a distance of 229.26 feet; 
 Thence meandering
along said left descending bank of the Calcasieu River, in a general direction of North 82° 03’ 53” East, for a distance of 103.18 feet; 
 Thence meandering along said left descending bank of the Calcasieu River, in a general direction of North 77° 14’ 13” East, for a distance of 357.96 feet; 
 Thence meandering along said left descending bank of the Calcasieu River, in a general direction of North 75° 10’ 07” East, for a distance of 195.09 feet; 
 Thence meandering along said left descending bank of the Calcasieu River, in a general direction of North 64° 43’ 40” East, for a distance of 401.76 feet;

 Thence meandering along said left descending bank of the Calcasieu River, in a general direction of North 63° 49’ 10” East, for a distance
of 489.27 feet to the Northwest corner of the Pinnacle Entertainment, Inc. L’Auberge du Lac Hotel and Casino Parcel One (1); 
 Thence South 49°
09’ 02” East, along the West line of said Pinnacle Entertainment, Inc. L’Auberge du Lac Hotel and Casino Parcel One (1), for a distance of 948.23 feet; 
 Thence South 00° 53’ 19” West, along the West line of said Pinnacle Entertainment, Inc. L’Auberge du Lac Hotel and Casino Parcel One (1), for a distance of 553.77 feet; 
 Thence South 89° 11’ 50” East, along the West line of said Pinnacle Entertainment, Inc. L’Auberge du Lac Hotel and Casino Parcel One (1), for a
distance of 200.00 feet; 
 Thence South 00° 53’ 19” West, along the West line of said Pinnacle Entertainment, Inc. L’Auberge du Lac Hotel
and Casino Parcel One (1), for a distance of 1671.72 feet to a point lying 120.00 feet North of the South line of the aforesaid Section Eleven (11); 
  

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 Thence South 89° 11’ 50” East, 120.00 feet North of and parallel with said South line of Section Eleven
(11), for a distance of 1884.95 feet to the West right-of-way line of the aforesaid Pinnacle Entertainment, Inc. L’Auberge du Lac Hotel and Casino South Entrance Road; 
 Thence South 22° 21’ 49” West, along said West right-of-way line, for a distance of 129.04 feet to the Point of Beginning. 
 Herein described tract containing 10,191,286.84 square feet, or 233.960 acres, more or less. 
  

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 EXHIBIT “1-A” 
 MORRISON SURVEY DATED                      
  

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 EXHIBIT “2” 
 The “Approved Project” in the Louisiana Gaming Control Board “Statement of Conditions to Riverboat Gaming License of Harrah’s Lake Charles, LLC”, as approved by the Louisiana Gaming Control
Board at its meeting on August 15, 2006, as amended from time to time, with a cost of at least $350,000,000. 
  

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 EXHIBIT “3” 
 RENTAL 
 Parcel 233.96 acres, more or less: 
 Annual Rental for the first five (5) years of the Initial Term shall be $1,169,800.00. Thereafter, the rental shall be increased each year of the
Initial Term and any option period as of the date the rental is owed by an amount determined using the formula set forth below. The amount of the increase will be determined by multiplying the annual rental of $5,000.00 per acre by the percent of
change in the most recently published U.S. Department of Labor, Consumer Price Index (CPI-W), all items, South Region, not to exceed five (5%) percent per annum. The percent change will be computed by comparing the index figure published
for the month closest to each Lease Year anniversary date with the same month of the prior year. For example, if the Ground Lease Commencement Date is March 1, 2005, the adjustment for the annual rental due March 1, 2010 shall be
calculated using the index published for the most recent month available prior to March 1, 2010 and comparing it to the index published for the same month of the prior year, subject to the five (5%) percent cap. The index to be used
will be the most recently published U.S. Department of Labor, Consumer Price Index for Wage Earners and Clerical Workers (CPI-W), all items figure, South Region published by the Bureau of Labor Statistics or any successor index published by the
Department of Labor. Rental shall never be less than $5,000.00 per acre and shall only increase in accordance with the above formula. 
  

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